Cantor Morning News | Morning @ Cantor

< Latest: May 22, 2012

Archive: Aug 6, 2010

Morning @ Cantor

Market Commentary

Morning Comment

Pado's Perceptions

News

o GM Chief Wavers on IPO � WSJ link

� General Motors' Whitacre said the timing of the auto maker's return to the public markets remains in question. He also said he hasn't considered how long he will remain at GM.

o FNM, FRE bond bonanza � BBG highlights how much money they are raising� in debt mkts..they are the new safe havens

� Fannie Mae Seeks $1.5 Billion in govt Aid as Loss Narrows

� Money flows:

o AMG data reports equity fund inflows of $2B in w/e 4-Aug vs inflows of $8B in w/e 28-Jul �

� 'Flash Crash' Legacy: Worries of Repeat � WSJ link

o three months later, many market veterans have concluded a flash crash could happen again because today's computer-driven stock market is much more fragile than many believed.

� More than 7 out of 10 Americans say the economy is still mired in recession, and the country is conflicted over how to balance concerns over joblessness and the federal budget deficit, according to a Bloomberg National Poll.

� Fed watch stories:�

� Sell G7 Bonds Ahead of Fed Meeting � CNBC

� Get out of the G7 bond market excluding Canada ahead of next Tuesday's Federal Reserve meeting, Marc Ostwald, a strategist at Monument Securities, said.

� "The big risk for Tuesday's Fed meeting is that the market will look at any change in language or QE (quantitative easing) policy and ask what has really changed, we could see a classic case of buy on the rumor and sell on the facts," Otswald said.

� "Yields are low as people bet on deflation that there is very little reason to be in US, German or Japanese debt"

� http://www.cnbc.com//id/38588854

� Diamond�s Fed Nomination Sent Back to White House � BBG

o The Senate sent the nomination of Peter Diamond, one of President Barack Obama�s three nominees for the Federal Reserve Board, back to the White House because of objections from at least one lawmaker.

� Fed reports balance sheet assets of $2.33T on Wednesday, +$1.2B w/w and +$338.2B y/y; Holdings of US Treasury securities were $777B on 4-Aug, ($2M) w/w and +$71.7B y/y. Holdings of mortgage-backed securities were $1.12T on 4-Aug, $+260M w/w and +$574.8B y/y. Holdings of federal agency debt securities were $159.4B on 4-Aug, unch. w/w and +$51.3B y/y.

� Macro negative:�� Stiglitz Says U.S. Faces �Anemic Recovery,� Needs More Stimulus - BBG

o Nobel Prize-winning economist Joseph E. Stiglitz said the U.S. economy faces an �anemic recovery� and the government will need to enact another round� of �better designed� stimulus measures.

o The Obama administration took �a big gamble and it doesn�t look like it�s paying off,� Stiglitz told Bloomberg TV in an interview in Sydney yesterday. �The recovery is so weak that it is not strong enough to generate new jobs for the new entrants in the labor force, let alone to find jobs for the 15 million Americans who would like a job and can�t get one.�

� Macro pos?:

o From Snowmobiles to Cellphones, a Scramble for Parts � WSJ

o Manufacturers haven't been able to ramp up supply fast enough to meet rebounding demand.

o General Electric , Ericsson, Royal Philips Electronics all have noted shortages hurt business

o Some firms, including GE, Whirlpool. and industrial products company Dover ., said the shortages are easing. But for some electronic parts, the gap between supply and demand is expected to last for the rest of the year

� Macro pos?:

o U.S. Ports to See 15% Gain in 2010 from TheStreet.com link

� The nation's major retail ports are expecting to see import volume reach rise 15% in 2010.

� According to the National Retail Federation's monthly global Port Tracker report, U.S. ports handled 1.3 million containers in June, representing a 30% gain from volumes recorded in June 2009. It was also the seventh consecutive month of year-over-year improvements.

� While 2010 volumes will show improvement, they are well off from the 15.2 million containers handled in 2008.

� "We aren't back to where we were two years ago and consumers aren't convinced that the recession is over quite yet, but 2010 is clearly going to finish better than last year,"

� Tightening shipping capacity seems to have made retailers nervous. So much so, in fact, that the NRF believes July may end up being the peak shipping month for the year rather than October

� Macro pos?:

o Neptune Orient Posts Profit on Rebound in World Trade

o Neptune Orient Lines Ltd., owner of Asia�s largest container line by fleet size, posted its first profit in seven quarters after moving more boxes at higher rates amid a recovery in the global economy.

o Second-quarter net income was $99.7 million, compared with a $146.2 million loss a year earlier, the company said in a statement today. Neptune Orient said it expects �significant improvement� in profit for the third quarter

o Neptune Orient carried 32 percent more containers in the quarter as demand for moving clothes, toys and furniture to the U.S. and shipping rates increased.

o Chief Executive Officer Ron Widdows last month ordered new ships for the first time in three years as the global economy rebounds from a recession that caused industrywide losses of more than $15 billion last year and pushed companies into mothballing vessels.

� panic buying in wheat mkts � BBG

� U.S. wheat futures jumped 6 percent on Friday, taking weekly gains to more than 25 percent as Russia's move to temporarily halt grain shipments sparked a buying frenzy.

� Diageo and Anheuser-Busch InBev� falling on higher wheat prices..per BBG

� KFT also talked about wheat..sd its well hedged ..BBG

� And the winner so far in the wheat crisis is

o Glencore, the privately-owned Anglo-Swiss trader, and some other multinational commodities traders.� FT

� http://ftalphaville.ft.com/blog/2010/08/06/308186/and-the-winner-so-far-in-the-wheat-crisis-is/

o Glencore and other commodities traders could be suffering from rising wheat prices and could benefit from Russia�s decision, which would allow it to void its money-losing contracts.

o Meanwhile, as Bloomberg notes, US agricultural companies including Archer Daniels Midland, Monsanto and Potash Corp of Saskatchewan rose in New York trading on Thursday amid speculation that US wheat exports will jump as importers seek alternatives to Russian grain.

o FT noted in a separate report, Moscow�s ban has left some of the world�s largest wheat importers scrambling to secure alternative supplies. Cargill, for one, has attacked Russia�s ban, telling Bloomberg that implementing trade barriers in response to higher wheat prices and lower yields will exacerbate supply problems.

� Reuters reports that a food price crisis may be the next stumbling block for emerging economies, even as their bonds and stock markets rally in relief at an easing of the euro zone's debt crisis.

� US States, Muni�s stories:�

o Municipal borrowers this week sold about $6.71 billion in debt, the lowest in a month, as yields on 10-year maturities reached a record low.

o Exotic Deals Put Denver Schools Deeper in Debt from DealBook

� Denver is now confronted with budgetary woes aggravated by esoteric financial deals that Wall Street peddled in the years before the credit crisis.

� State aid bill a gamble for Dems from POLITICO

� Some House rank-and-file fret the optics of returning to a special session to vote for more spending

o JPMorgan Bankers Lose Bid to Dismiss SEC Suit on Alabama Swaps - BBG

� A federal judge denied a motion by two former JPMorgan Chase & Co. bankers to dismiss a Securities and Exchange Commission suit alleging a pay-to-play scheme in Jefferson County, Alabama, that allowed the bank to win almost $5 billion in bond and interest-rate swap business.

o Cigarette Sales Drop Points to Tobacco Bond Defaults, Sims Says - BBG

� Declining cigarette sales and disputes over how much tobacco companies owe to U.S. states may cause defaults on related bonds issued by California, New York City, New Jersey, Ohio and Virginia.

� Defaults on securities that are backed only by the tobacco- company payments and were issued in 2006 and 2007 �could start occurring as early as 2030,� according a report by Richard Larkin, a senior vice-president at Herbert J. Sims & Co.

�

� hedge funds stories:�

o A Cruel Summer for Hedge Funds? from zero hedge

� Through the first half of the year, hedge funds are only up about 1%. �They can�t figure out right now a really good trade,� says the author of The Greatest Trade Ever. Hedge fund manager Philip Falcone is a prime example. After a 46% gain last year and a 116% return in 2007, his Harbinger Funds are suffering as of late. �As of July 15, Falcone's Harbinger Capital Partners Offshore Fund I was down 10.7 percent, ranking the New York-based fund manager one of the industry's 20 worst performers, according to HSBC,� Reuters reports.

� the reality is that a lot of managers remain very apprehensive, unwilling to commit significantly to any sector until they see clear signs that the economy is stabilizing and the forces of deflation/ deleveraging have subsided

� It�s times like these that have many investors waiting it out on the sidelines.

o Why Winning Hedge Funds Are Wary

� from BusinessWeek

� Of 2,799 hedge funds studied by PerTrac Financial Solutions, a New York investment-software company, only 321 were agile enough to post gains every year since 2007 and in the first part of this year. Among the best performers: Perella Weinberg Partners Xerion, managed by Daniel J. Arbess (above), up a total of 95 percent from January 2007 through May; Waterstone, up 84 percent through June; and Banyan Capital, up 56 percent through June.

� Notably absent from the consistent winners list: managers with top long-term returns, such as Steven A. Cohen, Louis M. Bacon, and Kenneth C. Griffin, who each posted their worst losses ever in 2008. Then there are the almost 3,300 hedge funds that have shut down since the start of 2007

� KFT, +3% after hrs�

o KFT:� conservative EPS guidance may weigh on shares today

o Bad news priced in?? t note consumer staples stocks have been relatively disappointing throughout EPS season so far (ie Unilever, K, PG, CL etc�)

o KFT:EPS of $0.60 beat street by 6c�3c from� lower tax rate

o Sales came in at $12.3 billion, in line with consensus

o weak volumes in North America.

o Commodity costs could start to increase in 2H:10 (will riase prices to deal with it)

� Logica +6.4%, Solid results and guidance

� RBS up 2.5% after reporting

� Barclays warns against forced break-up from FT.com

o John Varley, chief executive, said Barclays� so-called universal model had proved its resilience and profitability through the financial crisis

� BAC Bank of America� wants out of a secret U.S. sanction imposed during the financial crisis, but regulators are keeping the 15-month-old penalty in place as they evaluate whether the giant lender has satisfied all of their requirements, said people familiar with the situation.�� WSJ

o The question of when the nation's largest bank by assets can be free of the confidential memorandum of understanding is currently the subject of negotiations between bank officials, the Federal Reserve and the Office of the Comptroller of the Currency, these people said.

o http://online.wsj.com/article/SB10001424052748704657504575411602370266826.html?mod=wsjcrmain

� Fannie Mae reports lower quarterly loss from FT.com

o The US home loans provider shed $1.2bn in the second quarter, compared with a $11.5bn loss in the first quarter, suggesting that it will need less government aid than had been expected

� Fannie Mae Seeks $1.5 Billion in govt Aid as Loss Narrows

� Education:� APEI -28.6%

� Education:�� RST -10.5%

� Video games:� MCZ -15%

� Video games:�� ATVI -6.3%

o ATVI- mixed Q with a miss on the top line, but cost controls help to bring EPS in line. Currency headwinds and underperformance in IP drove to the negative while Digital map pack sales outperformed. Guidance for Q3 is disappointing because all roads lead to one title (Call of Duty) which will be released in Q4. The long awaited Starcraft 2 launch was a little light.

� Consumer:� NILE -11.3%

� Consumer : BID

o Auctions:� BID: Very strong Q2 on solid organic revenue growth. A Better commission margin helped to drive the rev growth. Supply for upcoming auctions appears to be building and the art market appears to be headed towards a recovery. BID usually seasonally weaker in Q3 which could be something to watch for.

� CF -2.6% .. :� Fertilizer producer CF Industries Holdings. .. Slight Miss on EBITDA - Favorable Outlook per some on street

� Weight loss companies:� Chinese people gaining more weight than pretty much any country in the world�.oppy for weight watchers etc�.BBG

� New economy discriminates vs �mature� people??:� Google Loses Discrimination Ruling � WSJ link

� Internet traffic regulation:� �U.S. Ends Private Talks on Web Rules

o U.S. officials called off closed-door talks with lobbyists aimed at reaching a compromise on ways to regulate Internet traffic, saying they couldn't reach a solution.

o The meetings, which involved Internet and telecommunications giants, sought to give the Federal Communications Commission authority to act as an Internet traffic cop without the need to adopt controversial wholesale changes to the law.

o The agency abandoned the talks a day after news reports that two participants, Verizon Communications Inc. and Google Inc., had reached a separate agreement on Internet traffic rules that would allow the phone giant to carry some broadband traffic at faster speeds.

o People familiar with the situation said the talks were cut off abruptly. These people said FCC officials felt the Verizon-Google deal undermined their broader talks

� RIMM� bans may start over next few days in some countries�

o RIM faces growing scrutiny over its BlackBerry e-mail and messaging services in countries from the U.A.E and Saudi Arabia to India and Lebanon. Indonesia, the world�s fourth most- populous nation, became the latest country to express concern about BlackBerry services.

� State Dept. wades into foreign BlackBerry ban from Wash Post

o The Obama administration waded Thursday into the growing international dispute over the banning of BlackBerry services, saying it is seeking to broker compromises between the company that makes the popular smartphones and foreign governments that say the devices pose a security risk.

� Obama�s popularity falls in Arab world from Financial Times

o The survey of 4,000 people in six countries will come as a blow to the White House, which has argued that positive perceptions of the president have helped retrieve US standing in the region

� Saddam aide says U.S. "leaving Iraq to the wolves" from Reuters

o Former Iraqi leader Saddam Hussein's most prominent deputy Tareq Aziz has accused President Barack Obama of "leaving Iraq to the wolves" with his planned troop pullout, a British newspaper reported on Thursday.

� Pelosi to call House back into session to finish jobs bill from Wash Post

o House Speaker Nancy Pelosi will call the chamber back into session next week to finish work on a $26 billion plan to prevent the layoffs of tens of thousands of teachers and other public workers

� Senate approves jobs bill to stop teacher layoffs from Wash Post

o A $26 billion plan to save the jobs of thousands of teachers and other public employees cleared the Senate on Thursday and was headed back to the House, where Democratic leaders have scheduled a Tuesday vote to approve it and sent it on to the White House

� After one-on-one with Obama, McConnell vows to slow White House agenda from Wash Post

o Fresh off his first one-on-one meeting with President Obama, Senate Minority Leader Mitch McConnell (R-Ky.) gave a spirited defense Thursday of the importance of the filibuster and -- amid expectations of swelling GOP ranks -- vowed to be a more forceful brake on Obama's agenda after November...

� U.S. worried by Karzai's attempt to assert control over corruption probes from Wash Post

o Obama administration officials fear that a move by Afghan President Hamid Karzai to assert control over U.S.-backed corruption investigations might provoke the biggest crisis in U

� Chavez may bar nominee U.S. envoy for "meddling" from Reuters

o Venezuela's President Hugo Chavez said on Thursday he may not accept a newly nominated U.S. ambassador to Caracas who sharply criticized the South American nation's socialist government and its armed forces

� The U.S. Senate voted to spend $600 million to boost security at the U.S.-Mexican border by providing 1,500 new Border Patrol, Customs and other agents - BBG

� Terror stories:�

� Attack caused damage to Japan tanker: UAE agency from Reuters

o Investigators probing a blast on a Japanese supertanker near the Strait of Hormuz last week found remains of homemade explosives and have blamed the incident on a "terrorist attack," the United Arab Emirates state news agency said on Friday.

� U.S. Links Suspects to Somalia � WSJ link

� Mexico�s drug-related violence is straining local law enforcement in the northern part of the country, making it easier for terrorists to enter the U.S. through the border, the U.S. State Department said.

CANTOR TRADING RECAP

� Equity Recap

o They can bend but they can�t break this market. The jobless claims were weaker than expected, the retail sales showed 17 miss, 7 beat and 3 match, The BOE & ECB both left rates unchanged as expected, earnings for the most part still seem to be better but in more cases last few days, guidance and comments on the 2^nd half and going forward didn�t seem so great but even on the good numbers the reaction is anticlimactic on the stock price which is telling you, people are looking for more and maybe the number had been baked in and more importantly, people are tired and we need to see some good macro numbers for a while before we fold the corners of our sheets under our mattress. Technically that 1131 on the spz is still what people are keying on and the breadth had 1 � -1 declining issues vs. advancing issues, while internally here, sell names outnumbered buy names 1 � -1. Breadth was even worse today with 868million shares in ny today with overall being 3.6billion. we saw a little bit of everything, vanilla and value adding, quants on both sides, not many laying them out

o Asian and European markets were flat for the most part, except for the Nikkei, which rose 1.26%. S&P futures were up small as US traders arrived to work. The slight push higher got us to 1127.50, just shy of resistance at 1129.20 (6/21 high). As retail sales started to roll in (disappointing , but not horrible), prices faded a bit and traders settled in to wait for the Unemployment Claims data. Both the Initial and Continuing numbers came in worse than expected and futures faded 9 points to what turned out to be the session lows (1115.50, made just after the 9:30 cash open). The balance of the session was spent in recovery mode as we worked our way back to end flat on the day. The day�s range was relatively narrow at only 12 points (not surprising as traders wait on the sidelines for tomorrow�s payroll report).

o None of the 10 S&P Industry groups moved more than 0.4%. Materials were strongest, while Tech and Consumer Staples were weakest. In individual names, retailers had a few big losers, as JCP (off 7.7%), BIG (off 6.6%) and ARO (off 5.7%) all fell after missing expectations on same store sales. In financials, HIG fell 4.9% as it forecast full year eps of $2.30 vs. a prior forecast of $3.00. PCS (wireless communication co) was the biggest gainer in the S&P 500, rising 7.5% on the back of great earnings. Finally, the Russian drought is getting more press time. Wheat rose almost 8% to $8.16 a bushel, helping push ADM (up 5.7%) and MON (up 3.1%) to multi month highs.

o Billy Clark and Team

� Rates Commentary

o Treasury market opened up the New York session mixed with the front end slightly lower in price while the back end slightly higher. The market found a quick bid early aided with the worse than expected initial claims 479K vs. 455K and continuing claims 4537K vs. 4515K as the July payroll report looms tomorrow and mortgage related news regarding some form of refinance programs from GSE loans. After a downtick midmorning Treasuries once again resumed the rally with only the 30 year bond lagging in an overall pretty quiet summer Thursday ahead of payrolls. At 3PM Treasuries were all higher in price with the belly leading the rally 5/30s steeper by 3bps, 10/30s steeper by 3.3bps.

o We head into tomorrow's report with yields in the short through intermediate sectors near their all time lows. Consensus right now is for a loss of 65K jobs with private payrolls up 90K. With continued downturn in the economy and potential Fed action, this report will be highly watched especially with the Fed meeting next week.

o Primary Dealer

� Converts recap

o Converts traded mostly flat with a few exceptions. Events and earnings continue to drive trading. Another part of our market is still the short term paper/credit portion. Consumer, Non Cyclical seemed to have most of the trading for a second day. Our investors are starved for merchandise as recent tenders and upcoming puts have taken paper out of the market and we aren�t replacing with new issues

o Tom Fazio

CMBS Recap

o Pick your reason- vacations, non-farm payroll tomorrow, CMBS new issue focus.� Today was one of the slowest non-holiday days I can remember.� Less than $50mm in for the bid. After trading over $60mm of paper yday, we sold $2mm of a floaters today.� Spreads were unchanged to a few bps wider with GG10s finishing +338/$101-21.

o Geordie Walker

o BP�s Maximum $18 Billion Fine for Spill Is Likely to Be Lowered � BBG

o Pemex Postpones Drilling to Test Deep-Water Equipment (BBG)

o Senate Democrats seek to end Big Oil tax break from Reuters

� Senate Democrats on Thursday proposed repealing a tax break for some major oil companies, including BP Plc, effective December 31.

o New dispute over liability for Deepwater Horizon disaster � FT

� In a regulatory filing yesterday, Transocean (RIG) said its contract with BP (BP.LN) largely protects it from lawsuits and damage claims resulting from the incident. BP responded by saying it disagrees with Transocean's interpretation of the parties' obligations under the contract.

o TESO Tesco Corp reports Q2 EPS

o XCO Exco Resources increases quarterly dividend by 33.3% to $0.04 from $0.03

o CMT.CN Compton Petroleum reports Q2 EPS

o CXPO Crimson Exploration reports Q3 EPS

o ME Mariner Energy reports Q2 EPS

o CPE Callon Petroleum reports Q2 EPS

o GXP Great Plains Energy reports Q2 EPS

o OESX Orion Energy Systems reports Q1 EPS

o EOG EOG Resources reports Q2 adjusted EPS

o NGAS Ngas Resources reports Q2 EPS

o GST Gastar Exploration reports Q2 EPS

o ASTI Ascent Solar Technologies reports Q2 EPS

o ALJ Alon USA Energy reports Q2 EPS

o HOKU Hoku Corp reports Q1 EPS

o KOG Kodiak Oil & Gas reports Q2 EPS

o SWN Southwestern Energy reports Q2 EPS

o BKH Black Hills Corp reports Q2 adj. EPS

o ED Con Edison reports Q2 EPS cont. ops

o NFG National Fuel Gas reports Q3 EPS

o ARTNA Artesian Resources reports Q2 EPS

o POR Portland General Electric opens North America's first public-use quick-charge station for electric vehicles in collaboration with NEC

o KYN Kayne Anderson MLP Investment Company to offer 6.75M shares through UBS, BofA/Merrill Lynch, Citi and Morgan Stanley

o POM Pepco Holdings reports.. Reaffirms full year EPS guidance of $0.80-0.95 vs Reuters $0.95

o DRQ� Dril-Quip reports

o ERF Enerplus Resources Fund reports

o AES AES Corp reports Q2 EPS $0.23 ex-items vs Reuters $0.22 ..Reaffirms full year EPS guidance of $0.90-$0.95, adjusted, vs Reuters $0.96

o LNG Cheniere Energy reports

o ATPG ATP Oil & Gas reports

o CVX Chevron wins auction to explore Beaufort Sea for energy - Globe and Mail

o Dana Petroleum to meet with KNOC executives today � FT

o DPM DCP Midstream Partners reports

INDUSTRIALS

o CCK Barron's Weekday Trader is positive on Crown Holdings

o CF -2.6% .. :� Fertilizer producer CF Industries Holdings. .. Slight Miss on EBITDA - Favorable Outlook per some on street

o LMIA� LMI Aerospace reports mixed

o LXU LSB Industries reports better

o GGC Georgia Gulf reports

� Due to the ongoing process of preparing restated financial statements for certain prior periods, the company has provided only selected financial data tables in this press release

o DOV Dover Corp increases quarterly dividend by 5.8% to $0.275 from $0.26

o EXM Excel Maritime Carriers $750M mixed securities files

o CCK Crown Holdings enters into share repurchase agreement with Citgroup Global Markets

o SMTX SMTC Corp reports Q2 EPS

o PWER Power-One initiated hold at Stifel Nicolaus

o CCIX Coleman Cable, Inc. reports Q2 EPS

o KTOS Kratos Defense & Security reports Q2 EPS

o GDI Gardner Denver files mixes securities shelf of indeterminate amount

o SRSL SRS Labs reports Q2 EPS

o TECUA Tecumseh Products reports Q2 EPS

o HAYN Haynes International reports Q3 EPS

o KAMN Kaman Corporation reports Q2 EPS

o ERII Energy Recovery reports Q2 non-GAAP EPS breakeven

o POWR PowerSecure International reports Q2 EPS

o HEV Ener1 reports Q2 EPS

o MFLX Multi-Fineline Electronix reports Q3 EPS

o TTMI TTM Technologies reports Q2 EPS

o TPC Tutor Perini Corporation reports Q2 EPS

o RBA Ritchie Bros reports mixed� Q2 EPS $0.24 vs Reuters $0.23; increases dividend

TRANSPORTS

o U.S. Ports to See 15% Gain in 2010 from TheStreet.com link

� The nation's major retail ports are expecting to see import volume reach rise 15% in 2010.

� While 2010 volumes will show improvement, they are well off from the 15.2 million containers handled in 2008.

� "We aren't back to where we were two years ago and consumers aren't convinced that the recession is over quite yet, but 2010 is clearly going to finish better than last year,"

� Tightening shipping capacity seems to have made retailers nervous. So much so, in fact, that the NRF believes July may end up being the peak shipping month for the year rather than October

o Macro pos?:

� Neptune Orient Posts Profit on Rebound in World Trade

� Neptune Orient Lines Ltd., owner of Asia�s largest container line by fleet size, posted its first profit in seven quarters after moving more boxes at higher rates amid a recovery in the global economy.

� Second-quarter net income was $99.7 million, compared with a $146.2 million loss a year earlier, the company said in a statement today. Neptune Orient said it expects �significant improvement� in profit for the third quarter

� Neptune Orient carried 32 percent more containers in the quarter as demand for moving clothes, toys and furniture to the U.S. and shipping rates increased.

� Chief Executive Officer Ron Widdows last month ordered new ships for the first time in three years as the global economy rebounds from a recession that caused industrywide losses of more than $15 billion last year and pushed companies into mothballing vessels.

o AIR FRANCE-KLM: July passenger traffic up 1.2% y/y

o PAC Pacific Airport Group reports July traffic +11.3% y/y

TECH/MEDIA/TELECOM

o JOUT Johnson Outdoors reports

o BRKS- in line to slightly better Q. Sept Q guidance looks to be in line, but Dec Q guidance looks to be strong. Margins in the Q were very strong to help the EPS beat. BRKS may have lost some business with the NVLS decision to keep everything in house.

o COGT- in line to slightly worse Q2. Mgmt was very optimistic on 2H10 due to strong orders aaand a strong product pipeline.

o DIOD- better Q2 and Q3 guidance. Q2 saw upside come from better ASPs and product mix improvements from more high margin products. Strength in new products could help drive numbers for Qs to come. End market demand appears strong. The company is expanding capacity due to this strong demand.

o ELX- in line Q and guidance looks lower. Embedded product sales were disappointing in the Q. Unfavorable product mix also was a negative driver. The guidance reflects a belief that embedded products will continue to decline due to inventory concerns. The DecQ looks primed to see upswing from multiple refresh cycles.

o MCHP- slight beat and raise Q. The company noted its asia business wa very strong in the Q. Inventory rose in the Q which could provide some concern. Lead times in the Q essentially remained the same.

o N- Solid Q2 due to early adoption of EITF-0801. Q3 and FY10 guidance was also strong. Billings grew in the Q, and OneWorld made considerable contributions to bookings. Rev growth in the Q came mostly from services and not subscription which raises questions about the staying power of the growth.

o PKI- very strong Q. PKI saw broad based strength across all end markets. Mgmt also raised FY10 guidance on improving macro trends. China grew 20% in the Q and is a major driver for the company�s growth. Mgmt also pointed out there is a large opportunity in China in the diagnostic market segment.

o RBCN- better Q as a result of very strong margins. There was organic revenue growth in the Q as well. ASPs increased in the Q due to constraints in LED supply. Capacity remains constrained to RBCN. This will keep ASPs high until the problem can be solved as the company expects another 20% increase in the coming Q.

o RST- Q2 in line with negative pre-announcement, but FY10 guidance is lower. MGMT said the disappointing Q was a result of a tight media market. Guidance does call for a strong rebound in bookings in 4Q10 due the launch of V4 in the September that mgmt is still very optimistic about. The lowered FY guidance does imply lower bookings in Q3.

o SAPE- Solid Q2 results and better Q3 guidance. The Nitro and Global Markets segments were the major drivers to the upside. Annualized employee turnover rose to a staggering 27.7%, but mgmt noted this won�t create a problem achieving FY10 and FY11 guidance goals.

o HEV- mixed Q. Top line beats, but EPS is a penny worse. Ener1 announces it will be supplying battery packs to Hyundai Heavy Industries for EV bus systems; and it entered into a supply agreement with Toro, to supply complete turnkey solutions

o LLNW- Q2 looks better, but it is unclear if the bottom line is comparable to consensus. Guidance is higher.

o MOVE- better Q2 and Q3 guidance looks in line. FY guidance is better

o CRAY- miss on the top line for Q2 and EPS does not look comparable. The company did say it expects to see a profit in 2010. Reaffirms FY guidance in line.

o COGO- better Q2 and Q3 guidance looks in line to slightly better.

o MVIS- disappointing Q2 results

o NANO- Q2 looks much better, but not sure if comparable.

o OPNT- Q1 looks in line with prior guidance. Q2 guidance looks lower.

o RADS- better Q2 on the top and bottom line. Q3 guidance looks higher, and FY10 guidance looks very strong.

o SATC- mixed Q2 on better revs, but weak EPS. Q3 guidance is better

o TRAK- better Q2 and reaffirms FY guidance that is higher than estimates.

o XIDE- mostly in line Q1

o MFLX- better Q3 on the top and bottom line. Q4 guidance looks worse.

o MTSC- better Q3 and orders were relatively flat in the Q. GMs were lower and backlog increased which could be a cause for some concern. FY and Q4 guidance looks mostly in line

o EGOV- in line to slightly better Q2. Reaffirms FY10 guidance that looks mostly in line

o KKR�s NXP Raises $476 Million After Cutting IPO Price- BBG

o NXP Semiconductors, the Dutch chipmaker owned by KKR and Bain Capital, raised $476 million after cutting the price of its U.S. initial public offering by as much as 33 percent

o The producer of semiconductors used in everything from radars to hearing aids and pachinko machines has reported combined losses of $5.5 billion since the takeover

o Shed Media to go private in �100m deal- FT

o AAPL: Apple in talks to buy Chinese software maker Handseeing, deal by Sept, exec- Reuters

o AAPL: iPad fueling dramatic growth for Apple Retail stores- AppleInsider

o AAPL, ADBE: FTC likely investigating Apple iPhone anti-Flash complaint- IntoMobile

o SAP, ORCL: SAP won't fight Oracle claims that a subsidiary stole valuable data from rival Oracle- AP

o http://hosted.ap.org/dynamic/stories/U/US_SAP_ORACLE?SITE=OKOKL&SECTION=HOME&TEMPLATE=DEFAULT

o Foxconn sees thirteenth suicide; is hiring mature employees to avoid more jumps- Digitimes

o Silicon wafer shipments in 2Q10 soar 40% on year- SEMI

o NAND flash spot prices drop on pessimistic outlook- inSpectrum

o AMZN: Kindle Now Features Games- eWeek

o GOOG, VZ: Google, Verizon Deny Deal to Squash Network Neutrality- eWeek

o GOOG, VZ: F.C.C. Chief Opposes Fees for Internet Priority. The comments were in response to reports that Google and Verizon were near a deal for faster service

o RIMM: U.S., Canada Work with authorities in countries including the United Arab Emirates to try and head off possible bans on the use of RIMM - BBG

MATERIALS

o Steelmakers seek to limit fixed-price contracts with auto industry from Automotive News

� Steel makers are moving away from fixed-price contracts with automakers in response to the volatile price of iron ore. James Wainscott, CEO of AK Steel Corp.

o NGD New Gold reports Q2 EPS cont. ops

o TC Thompson Creek Metals reports Q2 EPS

o GGC Georgia Gulf to restate financials for periods 2007-09

o DNN Denison Mines reports Q2 EPS

o VHI Valhi reports Q2 EPS

o CGC Capital Gold says it produced 15,287 ounces of gold in fiscal Q4 at its El Chanate open pit mine in Sonora, Mexico

o TNH Terra Nitrogen reports Q2 EPS

o CF CF Industries Holdings reports Q2 EPS

AUTOS

o GM Chief Wavers on IPO � WSJ link

� General Motors' Whitacre said the timing of the auto maker's return to the public markets remains in question. He also said he hasn't considered how long he will remain at GM.

o Ford Motor Co. to gain cut-rate financing for a loan

� Just as President Obama expanded his road show yesterday to woo union voters, the White House acted to open the door for Ford Motor Co. to gain cut-rate financing for a loan that will allow for the rehiring of 2,000 unionized assembly line workers to fill rising orders.

� The move by the White House, to guarantee a $250 million loan from the Export-Import Bank, cuts the interest rate on Ford's loan to 3.5 percent -- or about half of what it would cost on the commercial market.

� The loan will help cover production of 200,000 of Ford's popular models destined for export to Mexico and Canada, which account for about 15 percent of Ford's sales and add $3.1 billion in revenue.

o Steelmakers seek to limit fixed-price contracts with auto industry from Automotive News

� Steel makers are moving away from fixed-price contracts with automakers in response to the volatile price of iron ore. James Wainscott, CEO of AK Steel Corp.

o More Saab products coming, Muller says from Automotive News

� Saab's new Dutch owner, Spyker Cars, intends to spin additional models off its new Phoenix platform after it yields a redesigned Saab 9-3. Saab dealers will receive the latest 9-3 in 2012, Spyker founder and Saab Chairman Victor Muller said today.

o Whitacre says 1,000 U.S. dealerships will get makeovers this year from Automotive News

� General Motors Co.'s U.S. dealers are in the midst of the largest dealership facilities makeover in the company's history, CEO Ed Whitacre told the CAR Management Briefing Seminars here today.

o Toyota Assessing Quality Issues With North American Suppliers - BBG

� Toyota Motor Corp., working to regain customers� trust after its worst recall crisis, said its quality advisory panel will share initial recommendations next week as the company evaluates its North American suppliers.

o XIDE Exide Technologies reports Q1 EPS

o STRT Strattec Security reports Q4 EPS

o Audi reports July global car sales up +7.7% y/y at 91,400 vehicles � DJ

o MGA� Magna International reports.. Company raises dividend 67%.. Guides full year revenues to $22-23B vs Reuters $21.57B

FINANCIALS

o NYT in banks:�

� Wall St. Faces Specter of Lost Trading Units

� http://www.nytimes.com/2010/08/06/business/06wall.html?_r=1&ref=business

o TNCC Tennessee Commerce Bancorp 5.75M share secondary priced at $4.00 a share through Macquarie Capital

o CNS Cohen & Steers announces $2.00 a share special cash dividend

o AGO Assured Guaranty reports Q2 EPS

o NYM NYMAGIC reports Q2 EPS

o MAIN Main St. Capital Holdings reports Q2 net investment income per share

o EIHI Eastern Insurance reports Q2 EPS

o Y Alleghany Corp reports Q2 EPS

o FFG FBL Financial reports Q2 operating income per share

o AWH Allied World Assurance reports Q2 EPS

o HTGC Hercules Technology reports Q2 EPS

o IBOC International Banc reports Q2 EPS

o VR Validus Holdings reports Q2 EPS

o CLMS Calamos Asset Management reports Q2 EPS

o Allianz (ALV.GR) Q2 net �1.09B vs Rtrs �1.16B

o Dexia (DEXB.BB) Q2 net �248M vs Rtrs �211.5M

o Royal Bank of Scotland to sell Global Merchant Services to private equity for �2B � FT

o RBS up 2.5% after reporting

o Barclays warns against forced break-up from FT.com

� John Varley, chief executive, said Barclays� so-called universal model had proved its resilience and profitability through the financial crisis

o BAC Bank of America� wants out of a secret U.S. sanction imposed during the financial crisis, but regulators are keeping the 15-month-old penalty in place as they evaluate whether the giant lender has satisfied all of their requirements, said people familiar with the situation.�� WSJ

� The question of when the nation's largest bank by assets can be free of the confidential memorandum of understanding is currently the subject of negotiations between bank officials, the Federal Reserve and the Office of the Comptroller of the Currency, these people said.

� http://online.wsj.com/article/SB10001424052748704657504575411602370266826.html?mod=wsjcrmain

REAL ESTATE

o FNM, FRE bond bonanza � BBG highlights how much money they are raising� in debt mkts..they are the new safe havens

o Fannie Mae reports lower quarterly loss from FT.com

� The US home loans provider shed $1.2bn in the second quarter, compared with a $11.5bn loss in the first quarter, suggesting that it will need less government aid than had been expected

� Fannie Mae Seeks $1.5 Billion in govt Aid as Loss Narrows

o Fannie exploited homeowners to make money, a whistle-blower says:

� A Fannie Mae consultant said in a lawsuit that the U.S. mortgage company disregarded the needs of homeowners in trouble in order to generate profit. Caroline Herron, a former Fannie executive who returned as a consultant for the Home Affordable Modification Program, said she was fired for bringing to light the fact that the organization was running the program to benefit itself, not to help homeowners and taxpayers. NPR.org (06 Aug.)

o Morgan Stanley Sees San Francisco Housing Double-Dip, NY Gains - BBG

� San Francisco home prices declined in May and New York values rose even as the S&P/Case-Shiller Index showed the opposite, Morgan Stanley said in a report

� San Francisco prices fell 1.2 percent while New York gained 0.8 percent in May, Morgan Stanley said in the report, which looked at homes that weren�t in foreclosure or involved in a short sale, in which a buyer pays less than the amount owed on the mortgage and the bank agrees to take a loss.

o MGIC, PMI Gain on Prospect of Increasing FHA Premiums (Update1)

� MGIC Investment Corp. and the two other largest U.S. mortgage insurers gained on the prospect that pending legislation will make guarantees from a government- backed competitor more expensive

� The bill would allow the Federal Housing Administration, which guarantees almost a third of the loans used in home purchases, to increase the amount it charges homeowners for mortgage insurance. The Senate approved the House-passed measure last night and it awaits President Barack Obama�s signature.

� �Any increase should allow private mortgage insurance to be more competitive,�

o Blackstone Gets 5% Stake in Brandywine as Part of Property Deal - BBG

� Blackstone Group LP, the world�s biggest private equity firm, acquired a 5 percent stake in Brandywine Realty Trust as part of a deal to sell the property company a 53-story Philadelphia office tower

� The transaction will make Blackstone the fourth-biggest shareholder in Radnor, Pennsylvania-based Brandywine, according to data compiled by Bloomberg. The firm is selling 1717 Arch St. for $129 million in cash and stock.

o Stuyvesant Town Suit Against MetLife May Proceed -� BBG

� A class-action lawsuit by tenants of Stuyvesant Town and Peter Cooper Village, Manhattan�s largest apartment complex, against MetLife Inc. seeking $215 million for improper rent overcharges may proceed, a judge ruled

� In a decision made public today, Manhattan state Supreme Court Justice Richard Lowe III ruled against a motion to dismiss the case against MetLife, the complex�s former owner

o GOV Government Properties Income Trust 8M share offering priced at $25.00 a share through Morgan Stanley, RBC Capital Markets and Wells Fargo

o OLP One Liberty Properties reports Q2 FFO

o NCT Newcastle Investment reports Q2 GAAP EPS

o PSA Public Storage reports Q2 FFO

o HME Home Properties reports Q2 FFO

o BRT BRT Realty Trust reports Q3 EPS

o DCT DCT Industrial Trust reports Q2 FFO

o CSA Cogdell Spencer reports Q2 FFOM

o WRI Weingarten Realty reports Q2 FFO

CONSUMER

o panic buying in wheat mkts � BBG

� U.S. wheat futures jumped 6 percent on Friday, taking weekly gains to more than 25 percent as Russia's move to temporarily halt grain shipments sparked a buying frenzy.

� Diageo and Anheuser-Busch InBev� falling on higher wheat prices..per BBG

� KFT also talked about wheat..sd its well hedged ..BBG

o And the winner so far in the wheat crisis is

� Glencore, the privately-owned Anglo-Swiss trader, and some other multinational commodities traders.� FT

� http://ftalphaville.ft.com/blog/2010/08/06/308186/and-the-winner-so-far-in-the-wheat-crisis-is/

� Glencore and other commodities traders could be suffering from rising wheat prices and could benefit from Russia�s decision, which would allow it to void its money-losing contracts.

� Meanwhile, as Bloomberg notes, US agricultural companies including Archer Daniels Midland, Monsanto and Potash Corp of Saskatchewan rose in New York trading on Thursday amid speculation that US wheat exports will jump as importers seek alternatives to Russian grain.

� FT noted in a separate report, Moscow�s ban has left some of the world�s largest wheat importers scrambling to secure alternative supplies. Cargill, for one, has attacked Russia�s ban, telling Bloomberg that implementing trade barriers in response to higher wheat prices and lower yields will exacerbate supply problems.

o Reuters reports that a food price crisis may be the next stumbling block for emerging economies, even as their bonds and stock markets rally in relief at an easing of the euro zone's debt crisis.

o U.S. Ports to See 15% Gain in 2010 from TheStreet.com link

� The nation's major retail ports are expecting to see import volume reach rise 15% in 2010.

� While 2010 volumes will show improvement, they are well off from the 15.2 million containers handled in 2008.

� "We aren't back to where we were two years ago and consumers aren't convinced that the recession is over quite yet, but 2010 is clearly going to finish better than last year,"

� Tightening shipping capacity seems to have made retailers nervous. So much so, in fact, that the NRF believes July may end up being the peak shipping month for the year rather than October

o KFT, +3% after hrs�

� KFT:� conservative EPS guidance may weigh on shares today

� Bad news priced in?? t note consumer staples stocks have been relatively disappointing throughout EPS season so far (ie Unilever, K, PG, CL etc�)

� KFT:EPS of $0.60 beat street by 6c�3c from� lower tax rate

� Sales came in at $12.3 billion, in line with consensus

� weak volumes in North America.

� Commodity costs could start to increase in 2H:10 (will riase prices to deal with it)

o BID: Very strong Q2 on solid organic revenue growth. A Better commission margin helped to drive the rev growth. Supply for upcoming auctions appears to be building and the art market appears to be headed towards a recovery. BID usually seasonally weaker in Q3 which could be something to watch for.

o BID Sotheby's reports Q2 EPS

� Sotheby�s Profit Beats Forecasters as Art Market Bounces Back - BBG

� Sotheby�s second-quarter earnings were seven times that of a year ago as sales surged amid renewed confidence in art as an investment.

� �Net income was $86.2 million, or $1.26 a share, up from $12.2 million, or 18 cents a share, in 2009, the company said in a statement.

� Second-quarter revenue jumped 68 percent to $281.4 million.

� In May, Sotheby�s evening contemporary art auction in New York totaled $190 million, quadruple the tally of a year earlier, when collectors were smarting from the worldwide financial crisis. The quarter included Pablo Picasso�s 1932 painting �Nude, Green Leaves and Bust� selling for $106.5 million at Christie�s International in New York, the most paid for an artwork at auction.

� �Four analysts polled by Bloomberg forecast profit of $1.07 a share.

� Earlier this week, Christie�s said first-half sales increased 46 percent to $2.73 billion. The closely held company does not disclose profit.

o Weight loss companies:� Chinese people gaining more weight than pretty much any country in the world�.oppy for weight watchers etc..� BBG

o American Apparel Hipster Turns Preppy as Stock May Be Delisted � BBG article not faltering for stock

o NATH Nathan's Famous reports

o IPSU Imperial Sugar reports

o PEB Pebblebrook Hotel Trust reports Q2 EPS

o RUBO Rubio's reports Q2 EPS

o OME Omega Protein reports Q2 EPS

o CVCO Cavco Industries reports Q1 EPS

o REVU Princeton Review reports Q2 EPS

o FACE Physicians Formula reports Q2 EPS

o VGR Vector Group reports Q2 EPS

o LYV Live Nation Entertainment reports Q2 EPS

o UEIC Universal Electronics reports Q2 EPS

o MGRC McGrath RentCorp reports Q2 EPS

o AOI Alliance One reports Q1 EPS

o ICFI ICF International reports Q2 EPS

o NAV Navistar renews $500M dealer inventory funding facility

o IRM Iron Mountain calls $200M of its 7-3/4% notes for redemption

o BAGL Einstein Noah reports Q2 EPS

o CEDC Central European Distribution reports Q2 EPS

o MOVE Move reports Q2 EPS

o HANS Hansen Natural reports Q2 EPS

o CEC CEC Entertainment names Tiffany Kice CFO and treasurer, effective 16-Aug

o APEI American Public Education reports Q2 EPS

o CEC CEC Entertainment reports Q2 EPS

o WTW Weight Watchers reports Q2 EPS

o CPKI California Pizza Kitchen reports Q2 EPS

o MHK Mohawk reports Q2 EPS

o BGFV Big 5 Sports reports Q2 EPS

o WRC Warnaco Group reports Q2 EPS

o CROX Crocs reports Q2 EPS

o M WSJ is positive on Macy's

GAMING, LODGING, & LEISURE

o GMTC GameTech International announces Montana Gambling Control approval of new software suite and operating system

o BXG Bluegreen reports Q2 EPS

o LVB Steinway Musical reports Q2 EPS

o IILG Interval Leisure reports Q2 EPS

o MHGC Morgans Hotel Group reports Q2 EPS

o SGMS Scientific Games reports Q2 EPS

o H Hyatt Hotels upgraded to market perform from underperform at FBR Capital

HEALTHCARE

o RSCR Res-Care reports Q2 EPS

o CYPB Cypress Bioscience board unanimously concludes that Ramius's offer to buy the company for $4/share grossly undervalues it

o PMC Pharmerica reports Q2 EPS

o CYPB Cypress Bioscience estimates restructuring charges of $4-4.5M relating to previously announced agreement to discontinue Savella co-promotion

o IRWD Ironwood Pharmaceuticals reports Q2 EPS

o NHC National Healthcare Corp reports Q2 EPS

o ABII Abraxis Bioscience reports Q2 GAAP EPS

o IRIX IRIDEX reports Q2 EPS

o OCLS Oculus Innovative Sciences reports Q1 EPS

o ONTY Oncothyreon reports Q2 EPS

o ADUS Addus HomeCare reports Q2 EPS

o TSON TranS1 reports Q2 EPS

o CYCC Cyclacel Pharmaceuticals reports Q2 EPS

o IRWD Ironwood Pharmaceuticals provides Q2 update

o GNVC Genvec reports Q2 EPS

o SEM Select Medical Holdings reports Q2 EPS

o CRXX CombinatoRx reports Q2 EPS

o SCMP Sucampo Pharmaceuticals reports Q2 EPS

o SIGA SIGA Technologies reports Q2 EPS

o NGSX NeurogesX reports Q2 EPS

o THLD Threshold Pharmaceuticals reports Q2 EPS

o OGXI OncoGenex Pharmaceuticals Q2 net income of $0.2M for the quarter vs year ago ($4.6M)

o ACCL Accelrys reports Q1 EPS

o NSPH Nanosphere reports Q2 EPS

o ATEC Alphatec Holdings reports Q2 EPS

o DEPO Depomed reports Q2 EPS

o EXEL Exelixis reports Q2 EPS

o FOLD Amicus Therapeutics reports Q2 EPS

o EM Emdeon reports Q2 EPS

o NHWK NightHawk Radiology reports Q2 EPS

o BIOD Biodel reports Q3 EPS

o AIRM Air Methods reports Q2 EPS

o EBS Emergent BioSolutions reports Q2 EPS

o XNPT Xenoport reports Q2 EPS

o NABI NABI Biopharmaceuticals reports Q2 EPS

o OREX Orexigen reports Q2 EPS

o OMPI Obagi Medical Products reports Q2 EPS

o CPTS Conceptus reports Q2 EPS

o MRX Medicis reports Q2 EPS

o RMD ResMed reports Q4 EPS

o HAR Harman International reports Q4 EPS

o LMNX Luminex reports Q2 EPS

o SQNM Sequenom reports Q2 EPS

o PKI PerkinElmer reports Q2 EPS

o BMTI Biomimetic Therapeutics reports Q2 EPS

o VTIV Thomas H. Lee completes acquisition of inVentiv Health��

o ALKS Alkermes reports Q1 GAAP EPS

o CADX Cadence Pharmaceuticals reports Q2 EPS

o ECLP Eclipsys reports Q2 EPS

o HALO Halozyme Therapeutics reports

OTHER

� Stocks mentioned on CNBC's Mad Money with Jim Cramer - TheStreet.com�

+ CREE, POWI, RBCN, WIN, ONNN, C, CVX, COP and NLY

�� - Q, ATPG, PNG

o SLTC Selectica reports Q1 EPS

o MCZ Mad Catz Interactive reports Q1 EPS

o JOBS 51job reports Q2 EPS

o VTRO Verto reports Q2 EPS

o KEM KEMET reports Q2 EPS

o CDXS Codexis reports Q2 EPS

o FEIC FEI Company reports Q2 EPS

EUROPE TRADING WRAP

� Oils

� Fugro (+5.2%). 1H figures are inline with expectations, FY outlook at higher end of estimates.

� Chemicals

� Lanxess (+3%). 2Q figures stronger than expected and 2010 Sales guidance is increased.

� Umicore (+3.1%). 1H Net recurring EBIT ahead of estimates and Fy guidance increased.

� Utilities (-2.3%). 1H figures are broadly inline, reiterated FY guidance.

�

� AIR FRANCE-KLM: July passenger traffic up 1.2% y/y

� CEGEDIM: Posts 2Q10 revenues up 8% y/y

� NATIXIS considers asset management deal with UNICREDIT � S&P

� NATIXIS: 2Q net income beats estimates

� SYNERGIE: Posts 1H10 revenue up 27.6% y/y

� VEOLIA ENVIRONNEMENT: 1H profit beat estimates

� ALLIANZ core beats, net shy of expectations

� Boehringer Ingelheim cuts guidance

� LANXESS raises 2010 guidance as 2Q results jump y/y

� DIASORIN: Possible takeover target for KKR � S&P

� ERG EBITDA beats ests at EUR 84m

� UNIPOL - Swings to EUR 82m PTP in 1H

� FUGRO 1H above expectations

� DEXIA 2Q net result ahead of expectations

� �GALAPAGOS 1H below expectations, confirms guidance

� UMICORE ups FY guidance

� FINNAIR 2Q operating loss narrower than expected

� OLD MUTUAL 1H operating profit up 43.3% y/y

� SANOMA 2Q EBIT broadly in line

� Securitas 2Q EBITA broadly in line

� VUELING: July load factor falls 3.6pp y/y

� CATLIN: Fx losses hit 1H numbers

� INMARSAT: 1H PTP up 56%, raises capex guidance

� �LOGICA 1H in line with expectations

� PARTYGAMING: 1H EBITDA climbs 15%

ASIA TRADING WRAP

Japan

� NKY-0.12%, TPX +0.48%

� NKY opened lower on a strong yen and after US employment figure disappointed, but late weakening of the yen led the index higher to close almost flat, ahead of US NFP tonight. Turnover on the TPX rose to 1.19 trillion yen from 1.17 trillion yen yesterday

� Stocks rose across most sectors led by telecom, consumers, financials and tech

� Exporters rose as the yen weakened in late trading: autos +0.96%, CE +0.58%, precision +0.06%

� Real estate extended gains rising another 3.00% after report the office vacancy rate in central Tokyo fell for the first time in 2.5 yrs in July yesterday

� Best performing sectors on the TPX: real estate +3.00%, airlines +1.65%, warehousing & harbor transport +1.45%; worst performing sectors: pulp & paper -0.71%, retail -0.68%, nonferrous metals -0.43%

Hong Kong

� HSI +0.59%; HSCEI +0.27%

� Mainland properties and banks rebounded after CBRC said scenarios lenders are required to use in stress tests don't represent its outlook on the property market

China

� SHCOMP +1.44%; SZCOMP +1.94%

� Stocks rose after CBRC sought to ease concerns about banks� stress test and agricultural companies advanced after the country�s worst floods in a decade boosted food prices. Turnover on the SHCOMP rose to 113.10B yuan from 109.92B yuan yesterday

� Stocks rose across most sectors led by tech, consumer, industrials and materials

� Banks +1.05%, real estate +1.11% after CBRC said scenarios lenders are required to use in stress tests don't represent its outlook on the property market

� Food producers +4.15% on expectations floods boosted food prices. China has sent teams of agricultural experts to 11 provinces to help repair damage sustained by rice and corn crops from recent floods, the farm ministry reported

INVESTMENT BANKING

M&A

o Asia predators swoop on Australia coal miners- Reuters Dealtalk

o Around $7 billion of Australia's coal assets are in the crosshairs of predators from Seoul to Shanghai, as Asia jostles for supplies to feed its burgeoning needs, pushing up bid valuations for Australian coal miners.

o Peabody Energy's (BTU.N) aborted pitch for Macarthur Coal, Banpu of Thailand's $2 billion offer for Centennial Coal Co, and a bid for Linc Energy reportedly being readied by India's Adani Enterprises are the most recent salvos aimed at the sector

o http://www.reuters.com/article/idUSTRE6742F220100805

o GS Goldman weighing prop trading unit options- Reuters

o Goldman Sachs Group Inc is considering two options for its main proprietary trading group as it tries to comply with a new U.S. financial reform law

o One option is to spin it off into a separate fund that would raise its own capital from investors

o Also on Thursday, CNBC reported the bank was discussing possibly spinning off its special situations fixed-income unit.

o http://www.reuters.com/article/idUSTRE6743IS20100805

o China's CNOOC may be eyeing BP's Argentine assets- Reuters Dealtalk

o China's largest offshore oil producer CNOOC might bid for BP's stake in Pan American Energy� if the British oil company sold it

o Its stake in PAE is one of the company's most prized Latin American assets. Investment in energy output and exploration has lagged in Argentina, but PAE's reserves and output have risen in the last decade and Argentine analysts say the country's No. 2 energy firm could be worth up to $20 billion.

o http://www.reuters.com/article/idUSTRE6743T820100805

o AAPL Apple in talks to buy China firm, deal by Sept, exec- Reuters

o Apple is in takeover talks with Chinese software maker Handseeing

o An announcement on the deal was expected within the next two months, Tian Bo, vice-president for operations at the company told Reuters, but declined to give further details on the deal

o http://www.reuters.com/article/idUSHKU00011420100806

o BLK Blackstone Gets 5% Stake in Brandywine as Part of Property Deal- BBG

o Blackstone Group LP, the world�s biggest private equity firm, acquired a 5 percent stake in Brandywine Realty Trust as part of a deal to sell the property company a 53-story Philadelphia office tower

o The transaction will make Blackstone the fourth-biggest shareholder in Radnor, Pennsylvania-based Brandywine, according to data compiled by Bloomberg. The firm is selling 1717 Arch St. for $129 million in cash and stock

o Staff and investors left in dark at SNY Sanofi, GENZ Genzyme- Reuters

o Two weeks after it emerged that drugmaker Sanofi-Aventis had its eye on U.S. biotech Genzyme, staff and investors are still left guessing as the companies remain tight-lipped

o Asked about the mood among Genzyme colleagues, one person who works at Genzyme, who asked not to be named, said there were concerns about the impact of a takeover and doubts about how the cultures of the two companies would fit

o http://www.reuters.com/article/idUSTRE6742ZP20100805

o Taiwan in final review of AIG's stalled Nan Shan deal- Reuters

o The buyer group for AIG (AIG.N)'s Taiwan unit Nan Shan Life has submitted paperwork for the last time in hopes to get approval for the stalled $2.2 billion deal

o The Financial Supervisory Commission has begun the final review of the deal

o ACM Aecom to buy Davis Langdon; buyout spree nears $1 bln- Reuters

o Aecom Technology Corp (ACM.N) said it will buy construction consultancy Davis Langdon -- the latest in its acquisition spree that has touched almost $1 billion in less than a month -- and look for more buyouts.

o The engineering and design firm, which will pay $324 million for Davis Langdon, said it is eyeing acquisitions that will further diversify its business.

o http://www.reuters.com/article/idUSSGE6740I420100805

o H Hyatt eyes hotel deals to expand, stock falls- Reuters

o Hyatt Hotels Corp said it was stepping up efforts to buy and invest in hotels, but its shares fell on fears that the company may not grow quickly enough to catch up with its rivals.

o Hyatt has $1.2 billion in cash and cash equivalents on its balance sheet and the company has said it plans to deploy cash to buy hotels or even a hotel brand to boost its presence in key cities and markets

o http://www.reuters.com/article/idUSN0523241820100805

o Tomkins receives no other approaches, profits soar- Reuters

o British car parts maker Tomkins (TOMK.L) said it had not received any other approaches since recommending an offer from a Canadian consortium in July as it posted a 229 percent rise in first-half profit.

o http://www.reuters.com/article/idUSLDE6741NM20100806

o Drexel Morgan buys wealth manager McCabe Capital- Reuters

o Investment advisory firm Drexel Morgan & Co on Thursday said it acquired another Philadelphia area wealth management firm, McCabe Capital Managers, to create a firm advising on more than $8 billion in assets

o http://www.reuters.com/article/idUSN0515900720100805

o Allied Properties sets sights on Calgary market- Reuters

o Allied Properties REIT said on Thursday it has stepped into the Calgary office market with an agreement to buy a distressed heritage property to position itself to become more of a national player

o "I have no idea whether it has hit bottom, but it is closer to the bottom certainly than it was when we were not particularly interested in investing in the market," said Allied

o http://www.reuters.com/article/idUSN059604520100805

o Werthein Group says new deal with Telecom Italia- Reuters

o Argentina's Wertheim Group said on Thursday that it had reached a deal with Telecom Italia that would enable the European company to up its stake in Telecom Argentina following an anti-trust dispute.

o Werthein and Telecom Italia each hold a 50 percent stake in Sofora, the partnership that controls Telecom Argentina

o http://www.reuters.com/article/idUSWEN854820100806

o CYPB Cypress Bioscience rejects Ramius' buyout overture- Reuters

o U.S. drugmaker Cypress Bioscience Inc (CYPB.O) on Friday rejected the $154 million buyout proposal floated by hedge fund Ramius LLC in July, saying the deal grossly undervalues the company

o http://www.reuters.com/article/idUSSGE67506120100806

o Macquarie, Providence bid for Taiwan's CNS- Reuters

o Macquarie Group Ltd (MQG.AX) and U.S. buyout fund Providence Equity Partners are among the parties to have submitted first-round bids to buy China Network Systems Co Ltd from MBK Partners. A deal that could value CNS at about $2 billion.

o http://www.reuters.com/article/idUSTOE67503L20100806

o Old Mutual sells U.S. unit- Reuters

o Old Mutual also said it had agreed to sell its U.S. life business to hedge fund Harbinger Capital Partners for $350 million.

o http://www.reuters.com/article/idUSTRE6750VI20100806

o Royal Bank of Scotland to sell Global Merchant Services to private equity for �2B- FT

o The bank is expected to keep a little less than 20% of the unit, making its payoff about �1.6B, of which �1.4B will be paid up front

o http://www.ft.com/cms/s/0/6f6e9ca8-a0c9-11df-badd-00144feabdc0.html

o Lanxess to buy BASF leather chemicals units- Reuters

o Chemicals company Lanxess is to buy leather chemicals businesses from BASF

o In 2009 BASF put the leather and textile chemicals businesses up for sale. Taken together the businesses had annual revenues of around 400 million euros in 2007.

o http://uk.reuters.com/article/idUKWEA326120100805

o 3i plans �1bn sale of German groups- FT

o The private equity group hires investment bankers to sell the two biggest companies � with a combined value of more than �1bn � in its German portfolio in moves aimed at reducing its debt

o http://www.ft.com/cms/s/0/3b02fdf4-a0c6-11df-badd-00144feabdc0.html

o Shed Media to go private in �100m deal- FT

o The UK independent TV production company has agreed to a �100m takeover bid by its management team backed by TWX Time Warner

o http://www.ft.com/cms/s/0/ff846d1e-a05a-11df-a669-00144feabdc0.html

o PLA Playboy Posts Smaller Loss Than Analysts Estimated- BBG

o Playboy Enterprises , the target of competing takeover bids from founder Hugh M. Hefner and the owner of Penthouse magazine, posted a smaller quarterly loss than analysts projected after lower restructuring costs

o Playboy didn�t say whether its board has met with executives from FriendFinder Networks Inc., which offered $210 million to acquire Playboy, a 14 percent premium to Hefner�s bid.

$ RAISING

� GM at work on IPO filing but not ready yet: CEO- Reuters

o It was the first time the top U.S. automaker has confirmed it was readying an IPO, an event that would mark its return as a public company and reduce the U.S. government's majority ownership just over a year after GM's bankruptcy and a controversial $50 billion bailout

o "I don't know when we are going to be able to file it because we still have a lot to do. It's not in the 'way, way out there,' but we still have a lot to do," he said.

o http://www.reuters.com/article/idUSTRE6743QY20100805

� KKR�s NXP Raises $476 Million After Cutting IPO Price- BBG

o NXP Semiconductors, the Dutch chipmaker owned by KKR and Bain Capital, raised $476 million after cutting the price of its U.S. initial public offering by as much as 33 percent

o The producer of semiconductors used in everything from radars to hearing aids and pachinko machines has reported combined losses of $5.5 billion since the takeover

� Australia's Aston cuts IPO price, raises $366 million- Reuters

o Aston Resources on Friday slashed the price of its initial public offering by 27 percent to raise A$400 million ($366.3 million), the country's top IPO so far this year

o Aston had to raise the shares on offer to 67.1 million after investors baulked at the initial offer price of A$8.20. It finally sold shares at A$5.96 a piece.

o http://www.reuters.com/article/idUSTRE6750MK20100806

� Everbright sets lower-than-expected IPO price range- Reuters

o China Everbright Bank, looking to raise around $3 billion in its Shanghai share offering, has set an undemanding price range in a bid to whet investor appetite for what could be China's second-biggest IPO this year

o Based on the preliminary range, Everbright Bank shares could have an upside of up to 20 percent after the listing, as the valuations are relatively undemanding given its growth potential, said Chen Xingyu, analyst with Phillip Securities in Shanghai

o http://www.reuters.com/article/idUSTRE67517120100806

� Cerberus IPO of Freedom Group Waits as Gun, Ammo Sales Decline- BBG

o In October 2009, Cerberus filed with the Securities and Exchange Commission to take Freedom Group public. Eight months later, gun sales are slowing and Feinberg hasn�t pulled the trigger on the initial public offering.

o �The equity market isn�t as welcoming as it was just a few months ago,� Shelly Lombard, an analyst at Gimme Credit, said in a June 2 note to clients about Freedom

PRICINGS

o Initial Offerings

o NuPathe, SurgiVision Trim IPO Sizes � WSJ

� NuPathe Inc. and SurgiVision Inc. cut the sizes of their initial public offerings Thursday, becoming the latest life-science companies to struggle to secure a public listing.

� http://online.wsj.com/article/BT-CO-20100805-725140.html?mod=WSJ_latestheadlines

o IL IntraLinks 11M share IPO priced below the range at $13/share viaMs, DB and CS

o NXPI NXP Semiconductors 34M share IPO priced Well below the range of $18-21 at $14/shr via CS, GS, MS, BAM, and Barclays

o PATH NuPathe 5M share issue priced at $10 per share � SA

� PATH NuPathe 5m share IPO expected to price week of 8/2 via Leerink and Lazard: Price Talk $14-16

o Secondary Offerings

o TNCC Tennessee Commerce Bancorp 5.75M share secondary priced at $4.00 a share via Macquarie

o GOV Government Properties Income Trust 8M share offering priced at $25.00/shr via MS, RBC, and WFC

o ARNA Arena Pharmaceuticals to sell 9.0M shares for $6.70/share

NEWS��

� Ford Motor Co. to gain cut-rate financing for a loan

o Just as President Obama expanded his road show yesterday to woo union voters, the White House acted to open the door for Ford Motor Co. to gain cut-rate financing for a loan that will allow for the rehiring of 2,000 unionized assembly line workers to fill rising orders.

o The move by the White House, to guarantee a $250 million loan from the Export-Import Bank, cuts the interest rate on Ford's loan to 3.5 percent -- or about half of what it would cost on the commercial market.

o The loan will help cover production of 200,000 of Ford's popular models destined for export to Mexico and Canada, which account for about 15 percent of Ford's sales and add $3.1 billion in revenue.

o http://www.nypost.com/p/news/business/obama_trade_off_IogWwVipcgTIDAF8hviJGN?CMP=OTC-rss&FEEDNAME=#ixzz0vodZX371

� FNM, FRE bond bonanza � BBG highlights how much money they are raising� in debt mkts..they are the new safe havens

o Fannie Mae Seeks $1.5 Billion in govt Aid as Loss Narrows

� Transportation: EXM Excel Maritime Carriers $750M mixed securities files

� Industrials: GDI Gardner Denver files mixes securities shelf of indeterminate amount

� Financials: KYN Kayne Anderson MLP Investment Company to offer 6.75M shares via UBS, BoA, Citi, and MS

� PATH NuPathe 5M share issue priced at $10 per share

�

TODAY�S EVENTS

o CONFERENCES

o Bank of America Merrill Lynch India Investor Forum - Hong Kong - Aug 05, 2010 - Aug 06, 2010

o BMO Capital Markets Fixed Income Perspectives Conference - Aug 05, 2010 - Aug 06, 2010

o Chinese Society of Rare Earths' International Conference on Rare Earth Development and Application - Aug 02, 2010 - Aug 06, 2010

o TODAY�S EVENTS

o Shareholder Meetings

� ZQK

o ECONOMICS

o 0830 U.S. unemployment rate

o 1500 Consumer Credit

o EARNINGS

o Autos

� RZ, SUP, XIDE, MDS

o Materials

� MGN, USEG, AVD, ANV, UXG, SRCH, XPL, VHI, GSI, HAYN, TNH, TRA

o Consumer/Retail/Education

� EVK, CORE, ARKR, CHUX, NATH, JOUT, MFW, CEDC, IPSU , OFI, OME, AOB, FHCO, OMEX, COKE

o Energy

� ASTI, EEE, JRCC, NRP, CSUN, BRNC, DRQ, GOK, OYOG, AEZ, APAGF, ATPG, BPT, CEP, EOG, GGR, GPOR, HKN, PEIX, XTEX, BGH, BPL, CQP, LNG, XTXI, TMR

o Financials

� CSWC, DHIL, GBL, NGPC, COWN, LTS, CIA, NWLI, PLFE, AIG, ABK, BRK/A, HGIC, HTH, UVE, WSC, ATLO, CBC, CTBK, CZNC, GIW, JUVF, MOFG, SBP, TYCB, XBKS, ESGR, MRLN, ATAX, DRL, FFFD, FNM, FRE, LSBI, PBIP, PVSA, TBNK, BCBP, WSBF, Y, JAXB, MBRG, UCBA

o Gaming, Lodging, & Leisure

� BXG, ALDA, ESCA, DHCC

o Healthcare

� CDCO, ABII, APPY, BPAX, CTIC, CYTR, CYTX, ENMD, HALO, MAXY, MIPI, NGSX, NVAX, NVLT, OPK, OSIR, PGNX, PYMX, TELK, THLD, TRBN, XOMA, BLTI, MELA, MEND, MLSS, SFES, TGX, WHRT, ENSG, NHC, AIRM, HH, DNEX, DDD, EURX, KG, MBRK, PVCT, RDEA, SOMX, WCRX

o Industrials/Homebuilders

� CLRS, LUK, HRG, SKY, BNSSA, BZC, LMIA, STST, TOD, AWI, FRM, RMIX, LXU, MVIS, TRCI, OICO, REFR, VII, CECE, HDNG, BTN, UFPT, BNI, FFEX, GKSR, TIXC, AFP

o Media

� XSEL, GTN, NOOF, ROIAK, MCCC, CNK, MSG, RDI, WPO

o Real Estate

� BFS, GYRO, MNRTA, ABR, AMRR, BRT, PCC, NEN, KWIC, UMH, HPT, SHO, SPPR

o Tech/Telecom

� SLRY, STV, MAIL, TEAM, TIER, TLVT, XATA, BLGW, ABVT, ARBX, PLPC, NOIZ, ITCD, WWVY, BFLY, ONVI, COSN, EFJI, WAVE, TSTR

o Transportation

� NAT

o Utilities

� CV, MGEE, PNM, POM, CPK, AES, DYN, MIR, CTWS, CWCO, MSEX, PNNW, SWWC, YORW

***All eco data from Bloomberg and DJ

Prepared by staff of Cantor Fitzgerald & Co. ("Cantor") and is for information purposes only. It is not intended to form the basis of any investment decision, should not be considered a recommendation by Cantor or any other person and does not constitute an offer or solicitation with respect to the purchase or sale of any investment nor is it a confirmation of terms. Any calculations and valuations presented herein are intended as a basis for discussion. Sources of information are believed to be reliable but Cantor makes no representation and gives no warranty that the information contained herein is accurate or complete. Any opinions or estimates given may change. Cantor undertakes no obligation to provide recipients with any additional information or any update to or correction of the information contained herein. This material is intended solely for institutional investors and investors who Cantor reasonably believes are institutional investors. Cantor, its officers, employees, affiliates and partners shall not be liable to any person in any way whatsoever for any losses, costs or claims howsoever arising from any inaccuracies or omissions in the information contained herein or any reliance on that information. Cantor may have positions in financial instruments mentioned, may have acquired such positions at prices no longer available, and may have interests different or adverse to your interests. No liability is accepted by Cantor for any loss that may arise from any use of the information contained herein or derived here from. This product may not be reproduced or redistributed outside the recipient's organization. Sources: Cantor Fitzgerald & Co., Reuters, Bloomberg, CNBC, Dow Jones, Marketwatch, Trade-Alert, and the Wall Street Journal.