Morning @ Cantor
Morning
@ Cantor 8/11
Today’s
Stories From Cantor Fitzgerald
Sal
Catrini (908) 517-5067
PLEASE
NOTE: Sal Catrini is out today.
Any
questions or Comments please call Brian Young 212-610-3629
CONTENTS: All
Headings Are Functioning Links
Sector
News:
Energy, Industrials, Transports, TMT, Materials, Autos, Fins, Real Estate, Consumer, Gaming/Lodging, HC, Europe Trading Wrap,
Asia Trading Wrap
Investment
Banking Wrap:
M&A, Money Raising
o US Stock Futures
o
S&P Futures down 17.8 pts after the fed lowered their
economic forecast yesterday
o
USD up .739 in the session
§
USD: Risk aversion sentiment helped to push the USD
and JPY currencies higher and at their best levels against the European pairs
ahead of the NY morning in the post FOMC decision environment.
o
Commodities
o
Gold up 1.1 to 1199, Copper down 1.1%, Crude
down 0.9 to 79.35
§
Crude: Kilduff: Is
Oil Heading To $200?- CNBC
§
Wheat Concerns: Australia is positioned to benefit from the worries over
global wheat supplies since it is a major exporter of high quality wheat to
Asia; Upside could be tempered quickly as Australia is experiencing dry weather
and warnings about locust plague - WSJ
o Overseas Action
o
Europe markets: FTSE 100: (1.23%); DAX: (1.12%); CAC 40: (1.21%)
§ European markets opened sharply lower following weakness across Asian markets
as Asian economic data disappointed and in reaction to the Fed's comments that
the US economy is slowing and took new step to aid the economy.- SA
o
Asian Markets: Nikkei
(2.70%); Hang Seng (0.83%); Shanghai Composite
+0.47%
§ Asian equity markets are being sold off for second consecutive day
despite some late session buying in the US, where traders saw the "QE
Lite" Fed response of reinvesting principal payments from MBS and agencies
into Treasuries as a positive- TTN
o
Data:
§ CHINA JULY NEW YUAN LOANS (CNY): 533B V 600.0BE (4 month low)
§ *BOE CUTS U.K. GDP FORECAST, SEES INFLATION BELOW 2% IN 2012
o
Bank of England Cuts Growth Outlook, Sees Inflation
Undershoot- BBG link
§ BoE cut its forecast for U.K. economic growth and said inflation will
undershoot its target in 2012, signaling the economy may need more emergency
stimulus.
o
China: State Information
Center researcher Zhang Monan: China is facing more "intense" trade
friction in the coming 2-5yrs as protectionism and pressure for higher Yuan
rise further - Shanghai Securities News
o
China Currency Talks: US Sen Schumer: China trade surplus shows China must be pushed to end
currency manipulation- TTN
o
China cuts 2010 rare earth export quota 40 pct- Reuters
link
o
Euro-zone Double-Dip: NDRC
commented that a "double dip" recession in the Euro region could not
be ruled out and saw weakening growth momentum in the US, though recovery to
continue there. Lastly the official noted that it was difficult to be
optimistic about prospect in Japan's recovery- TTN
o
India cbank plans to give limited new bank licenses-
Reuters
§ India's central bank on Wednesday said it intends to grant limited number
of new bank licences and invited comments on the minimum capital requirements
as well as promoters shareholding in new banks
o
Russia: heat wave may wipe $15 bn off GDP- Business
Standard
§ Russia’s record heat wave may already have taken 15,000 lives and cost
the economy $15 billion, or 1 per cent of gross domestic product, as fires and
drought ravage the country
- Economics today:
o
MBA Mortgage Purchase Applications at 07:00 ET
o
Jun
Trade Balance at 08:30 ET
o
DOE
Crude Inventories at 10:30 ET
o
Jul
Treasury Budget at 14:00 ET
- Earnings:
o
Companies due to report before the bell
include: CSC, M
o
Companies
due to report after the close include: CSCO
o Top M&A
o US buy-out
groups eye Morgan Stanley fund- FT
§ US private equity firms have approached Morgan
Stanley about buying a stake in its troubled real estate funds management
business
o Sillerman prepares $500 million bid for American Idol owner CKXE-
Reuters
§ http://www.reuters.com/article/idUSTRE67926S20100810
o Taiwan's Chinatrust: would seek AIG unit buy- Reuters
§ http://www.reuters.com/article/idUSTPV00184920100811
o Top $ Raising
o
India U-Turn May Curb
$24 Billion of Stock Sales, S&P Unit Says- BBG
§
India’s
reversal of a two-month-old rule requiring state-run companies to sell more
shares may curb offerings by 1.1 trillion rupees ($24 billion)
o
KH China Kanghui Holdings prices its 6.7m share IPO in the middle of
the expected range at $10.25/shr
o
DLC DLC Realty Trust boosts
IPO to 40m shares from 31.25 and cuts expected price to $12-13 vs $15-17
o
MDMD MediaMind Technologies 5m share IPO prices below the range at
$11.50-/shr
o
MOH Molina Healthcare $126.8m secondary prices at
$27/shr
o
KKR to start fundraising in next few quarters- Reuters
§ http://www.reuters.com/article/idUSTRE6793IC20100810
o
Tropical Depression
Five has formed over the Southeastern Gulf of Mexico- NOLA
o
U.S. Study Points to Driver Error in Many Toyota
Crashes- WSJ
o
And
in more than half of the crashes blamed on sudden acceleration analyzed by the
government, data from the vehicles' "black boxes" show the driver was
not stepping on the brake at the time of the accident
o
Rising costs impeding
State Dept’s Iraq effort- WPO
o
As
the last U.S. combat troops prepare to leave Iraq this month, the State
Department is struggling to implement an expanded mission that it has belatedly
realized it might not be able to afford.
o
Gen.
Ray Odierno, the outgoing commander of U.S. forces in Iraq, and other U.S.
officials are urging lawmakers to reconsider their plans, citing concerns that
waning resources could jeopardize tenuous security gains.
o
Oil Industry Gets Disclosure Jolt - WSJ
o
Merchants Expected to Push Cheaper Payments-
American Banker
o
Video Games Impact the Economy More
Than You Think- CNBC
o
A
new study from Economists Incorporated reports that the video game industry
added $4.95 billion to the U.S. Gross Domestic Product last year—and the
entertainment side of the software world is growing considerably faster than
other segments of the economy
o
Toyota Stops Shipments to Iran- WSJ
o
Trade Deficit in U.S. Was Probably Little Changed in June, say
economists- BBG
o
The
trade deficit in the U.S. was probably little changed in June from the previous
month as the global recovery cooled, economists said before a report today.
o
Credit Ratings: Regulators Warn Provision May Go Too Far- WSJ
o
China Closes
Lending Loophole- WSJ
o
The
China Banking Regulatory Commission, the nation's banking regulator, ordered
banks to move loans that they had transferred to trust companies back to their
balance sheets by the end of next year. The trust companies subsequently
repackage the funds as wealth-management products
o
Tech: DELL to sell tablet for $300 with AT&T contract-
Reuters
o
Tech: Samsung, LCD-Panel Makers, Accused of Price-Fixing in
U.S. Suit- BBG
o
Samsung
Electronics, Toshiba, Sharp Corp. and five other liquid-crystal display makers
were sued by Illinois Attorney General Lisa Madigan over claims they conspired
to fix prices
o
Autos: Dealers Beg for Cars as Automakers’ New
Discipline Curbs Sales- BBG
o
With
Ford, General Motors Co. and Chrysler Group LLC kicking a decades-long habit of
building more cars than customers want, dealers are howling that they can’t get
enough models to drive sales back to pre-recession levels.
o
Firms Spend
More—Carefully- WSJ
o
Much
of the spending is aimed at replacing older equipment after recession-related
postponements or to improve efficiency—not
to raise production or boost hiring.
o
Funds: Hedge Funds Post Biggest Gain in Four Months in July-
BBG
o
Hedge
funds posted their biggest gain in four months in July as a rally in equity,
commodity and bond markets lifted returns, according to Eurekahedge Pte..
o
Political Stories:
o
House passes state aid bill; Obama signs into law-
Reuters
§
The
Democratic-controlled House of Representatives gave final congressional
approval to the bill on a largely party-line vote of 247 to 161.
§
The
bill will give states, hard-hit by the U.S. economic downturn, $16 billion more
for Medicaid, the health insurance program for the poor, and $10 billion for
education in the hopes they can avoid making steep cuts in already-lean budgets
o
Fear New
voting Machines Will Confuse Voters- WSJ
§
Advocates
are worried that voters will be unprepared when new electronic voting machines
make their debut in New York City and across the state next month.
o
Alaska's
Stevens Perishes in Crash- WSJ
§
Ted
Stevens, the longest-serving Republican senator in U.S. history, died after a
small plane carrying him and eight others crashed in a remote part of Alaska
Monday
o
Obama defeats Clinton: Colorado
Democrats Choose Incumbent Senator Bennet- WSJ
o
Malloy,
McMahon Win in Connecticut Primaries- WSJ
§
Democrats
picked the former mayor of Stamford as their best hope to win the Connecticut
governor's mansion for the first time since 1986, while wealthy wrestling
executive Linda McMahon will take on Attorney General Richard Blumenthal in the
race for the state's open U.S. Senate seat
o
Despite charges, Rep. Rangel not resigning- Reuters link
o
House passes $600
million border security bill- Reuters Link
§
The
bill passed the House on a voice vote. But because of a legal technicality,
President Barack Obama will probably have to wait until at least September to
sign the bill into law
o
Wall
Street Increasingly Favors Republicans: Study- CNBC
o
Georgia
runoff still a cliffhanger- Politico link
o
Conservatives speak out on Prop. 8-
Politico
§
Republicans
in California are remaining largely silent on last week's ruling overturning
Proposition 8. But a band of conservative House members didn't waste a minute
in their day back in Washington, highlighting their opposition to gay marriage
o Fed watch stories:
o Fed Can't Do Much More to Boost Economy: El-Erian-
CNBC
§ Speaking just hours before a
much-anticipated meeting of the Fed's Open Market Committee, El-Erian said the
central bank can only do so much to foster growth and avoid deflation
o Fed Sees Recovery Slowing- WSJ
§ The Federal Reserve, facing an
economic recovery that it termed "more modest" than anticipated, said
Tuesday it will stop shrinking its huge portfolio of securities by reinvesting
the proceeds of maturing mortgages in U.S. Treasury debt
§ The Fed move is largely symbolic
and is unlikely to stimulate the economy significantly. But the shift in the
management of its portfolio, and an accompanying statement, underscored Fed
officials' concern about the vigor of the economic recovery
o The Fed Can Print More Money, But It Can’t Print Jobs-
CNBC
§ So in terms of Fed money-pumping,
you can lead a horse to water, but you can’t make it drink. You can add more
cash, but that doesn’t mean businesses and entrepreneurs will use it. Fiscal
policy is the obstacle right now, not a shortage of money.
o
Macro negative:
o
Risk of
US Deflation Is Rising: Pimco- CNBC
§
The
United States faces a rising risk of deflation that could bolster prices of
safe-haven U.S. government bonds, while hurting the prices of real estate and
stocks
§
A
deflation scenario "would have profound implications for asset
prices,"
o
Economists Cut U.S.
Growth Forecasts as Companies Limit Hiring- BBG
§
A
lack of jobs will shackle consumer spending and restrain the U.S. recovery more
than previously estimated, according to economists polled by Bloomberg News.
§
“Simply put, job growth in the private sector
hasn’t improved as we would’ve expected,” said John Silvia, chief economist at
Wells Fargo Securities said
o Macro pos:
o
GM Expects Biggest Profit in Six Years- WSJ
§
GM
is expected to post its largest profit in six years on Thursday, buoyed by
stronger sales around the globe and higher prices on cars and trucks sold in
the U.S
o
Has Doom
and Gloom Jumped the Shark?- CNBC
o
DIS Walt Disney Profit and Sales
Jump, Outstrip Forecasts- CNBC
§
Walt
Disney saw its shares rise in late trading Tuesday as the company reported
sharply higher profit and sales that easily beat Wall Street estimates
o
Adecco reported strong
results
o US States, Muni
Watch:
o
New Jersey Says PRU Prudential Financial's Payouts Are
Acceptable- WSJ
§ New Jersey insurance regulators say they have concluded Prudential
Financial Inc. properly handled life-insurance benefits in a controversial
matter involving a solider killed in Afghanistan in 2008.
o
Crisis Watch
o
Gains in Bioscience Cause Terror Fears- WSJ
§
Rapid
advances in bioscience are raising alarms among terrorism experts that amateur
scientists will soon be able to gin up deadly pathogens for nefarious uses
o
Pakistani militants urge rejection of Western aid-
Reuters
§
Pakistani
Taliban militants have urged the government to reject Western aid for victims
of devastating floods, saying it would only be siphoned off by corrupt officials.
o
Top Real Estate
Stories:
o Investors Doubt Mortgage-Bond Revival Until 2012,
Moody’s Says- BBG
§ About 74 percent of
attendees surveyed for a June conference by the New York-based rating company
responded that issuance, which essentially halted in 2007, will make a
substantial “comeback” no sooner than 2012
o The Shrinking Second Home- WSJ
§
Even
in the up-and-down world of real estate, this pitch may sound a little funny:
"Affordable housing for the affluent."
§
The
goal is to avoid lowering the sales prices on existing homes and upsetting
homeowners who paid more for their homes
o
America's
Most Stable Real Estate Markets- CNBC link
o
Real
Estate Double Dip Deters Buyers And Investors- CNBC
§
Whether
the housing market is in another free-fall or not, just the thought of a double
dip is forcing real estate investors to re-think how and where they spend their
money. And maybe even if they should spend it at all
o
Mortgage
Rates Mean Little to Housing Today- CNBC
o
Unemployment
Drives More US Home Sellers to Cut Price- CNBC
§
Owners
cut prices on one-quarter of U.S. homes listed for sale in July, a fourth
straight monthly rise, as job market fallout trumped record low mortgage rates
o Equity Recap
o
S&P’s started off
7 points weaker this morning, mostly in reaction to weak import growth reported
in China as their trade surplus rose to an 18 month high (Shanghai fell 2.5%,
the most in 6 weeks). Also weighing on sentiment were worries that the Fed
might hold off on QE2. With the release of weaker than expected productivity
numbers they fell another 3 or 4 points, and once the cash market opened they
faded an additional 8 points to 1108.50, off 17 points from last night’s close.
This proved to be the session low as the futures held just above their 200 Day
MA (the cash broke its 200 Day by just a bit).
o
The rest of the
morning and early afternoon was spent quietly waiting for the Fed, which seemed
to give the market a bit of what it needed (reinvesting coupon payments in
kind: a very modest kind of QE, with the possibility of more to come); the late
afternoon was spent in an attempt to rally back to even on the day.
Unfortunately, we did end about 4 or 5 points in the minus column, off the best
levels of the day, but well above the lows.
o
Of the 10 S&P
Industry groups, Tech was weakest, off 1.4%, while the defensive Utilities and
Telecoms did best, up 0.4%. Notable decliners in Tech: AMD (off 8%), STX (off
6.5%), INTC (off 4%) and Dell (off 4.1%). AKAM bucked the negative trend in
tech by rallying 4.9% on an upgrade from Goldman. Defensive names like CL (up
2.2%) rallied, while some retailers were weak: BBY (off 2.8%) and LTD (off
3.8%).
o
They had us down 0.5%
around the world when we walked in Tuesday morning, mostly on the back of the
tepid data on cars and imports out of china. Even the great warren was cutting
back on his treasury’s that go out more then a year from 22%-18%. The fomc
didn’t offer anything new in their meeting at 2:15 and the confusion as to
whether or not we have come out of this recession with any real zest
continue and the tired market continued
to show it needs a breather. That being said, they can’t take them out and
shoot them. Technically, 1,115 on the s&p 500 which is your 200 day moving
average held and the volume continued to be anemic. Breadth to the market had
about 3 declining issues vs. every 1 advancing issues while internally here,
buy and sell names were equal.
o
Billy
Clark and Team
o Rates Commentary
·
Treasury
market opened up the New York session relatively quiet grinding lower (with the exception of the
long bond) throughout much of the morning session. The market found a small bid
in the hour before today's $34Bln 3 year note auction although the overall tone
was remained quiet with many awaiting the FOMC later in the session. The start
of the AUgust refunding found the 3 year note auction coming .8bps through its
1PM level at .844%, stats were mixed
with indirects only purchasing 40.5%, directs 15.8% and a strong 3.31 bid to cover.
·
The
real fireworks of the session started after the Fed stated their intentions to
reinvest maturing agency and MBS securities in Treasuries. The other major
change was stating rates to stay "exceptionally low" for an extended
period. The initial reaction in the UST market was a bid throughout, however, a
later announcement that the purchases would concentrate in the 2-10 sector
found the long end completely reversing its gains outright and on the curve,
10/30s traded to a new record of over
125bps. At 3PM the market finished with the belly outperforming the wings.
2/10s flatter by 4bps at 225, 2/30s steeper by 1.8bps at 349, 1/30s steeper by
5.7bps at 124.
·
$40Bln
of supply remains in 10 years and 30 years tomorrow and Thursday respectively
which will surely be volatile given the recent Fed announcement and the
significant lag the long end.
·
• Headlines of the Fed purchase program: will
publish schedule tomorrow at 3PM, done through primary dealers in auctions,
concentrate in 2-10 year sector, expected to begin around August 17th, keep security
holdings at 2.054Trln.
·
Primary
Dealer
o Converts recap
o
We
saw more trade activity today but much of it was focused in big cap names in
the consumer, non-cyclical and tech space. Although we still have better bids
for short paper, customer selling out numbered customer buys for the first time
in a while. The calendar is empty and the buzz is nothing in the near term. As
long as this remains true, Converts should hold steady
o
Tom
Fazio
o Investment Grade
Recap
o
Mixed
activity with the Federal Reserve this afternoon as spreads drifted wider in
some risk shedding ahead of the FOMC minutes. Post-Fed we turned around
and are going out marginally tighter in most names, some recent deals (HES 41,
NSUS 20, APC 17,…) continue to lag/soften. We traded a variety of names
today from 5B WY 19s and PDE 40s to higher quality names from AZN to UTX which
barely saw softening to start with. In a perverse sort of logic we are
grinding tighter with every bit of bad economic data because it assures the
market that much more that the Fed will be there with a fresh round of
quantitative easing as we saw today that the Fed will be reinvesting MBS
paydowns into treasuries, concentrated in the 2-10yr part of the curve.
10s30s at +125bps continues to make the 2024-2030 issues look that much more so
attractive.
o
With
the Fed taking the spotlight one note on the global macro picture slipping into
double-dip territory was a UK housing market gauge showing its first drop in a
year and Canadian housing starts falling 1.6% month over month.
o
Michael
Salemo and Team
o
Boom Makers Say BP Left Them Adrift- WSJ
o
Containment-boom
makers and their vendors that ramped up supply for BP PLC after the Gulf of
Mexico oil spill say the company suddenly stopped accepting deliveries weeks
ago, leaving them with millions of dollars in unused product
o
TRMA Trico Marine
Services announces that president and COO Rishi Varma to leave the company
o
RGNC Regency Energy
Partners to offer up to 14M units through Morgan Stanley, BofA/ML, Barclays,
Citi, Credit Suisse, JPMorgan, UBS and Wells Fargo
o
ATW Atwood Oceanics
files $500M mixed shelf
o
EVEP EV Energy Partners
to sell 3M common units through Citi, Raymond James, RBC Capital, Wells Fargo
and UBS
o
NBL Noble Energy
receives government approval to develop Tamar gas field offshore Israel
o
DPM DCP Midstream
Partners to offer 2.6M shares through BofA/ML, Citigroup and Morgan Stanley
o
BLT Blount International
acquires SpeeCo for ~$90M in cash
o
ARTX Arotech reports Q2
EPS
o
RA RailAmerica reports
July carloads +4.7% to 73,071 q/q
o
URS URS Corporation
reports Q2 EPS
o
GNK Genco Shipping &
Trading takes delivery of two Supramax vessels
o
GDI Gardner Denver CFO
Helen Cornell to retire
o
LIME Lime Energy reports
Q2 EPS
o
ZAGG Zagg, Inc. reports
Q2 EPS
o
SPWRA SunPower reports Q2
EPS
o
AONE A123 Systems reports
Q2 EPS
o
SBLK Star Bulk Carriers
reports Q2 EPS
o
ESEA Euroseas Ltd reports
Q2 EPS
o
CHGS China GengSheng
Minerals reports Q2 EPS
o
STRI STR Holdings reports
Q2 EPS
o
USHS U.S. Home Systems
reports Q2 EPS
o
MG Mistras Group
reports Q4 EPS
o
SYX Systemax reports Q2
EPS
AUTOS
o
Ford, Mazda get approval to break-up 3-way
China JV- Reuters
o
Ford
and Mazda will each set up separate 50-50 joint ventures with Changan
(000625.SZ) at the end of this year
o
A
Ford spokeswoman said the report was only speculation, while a Mazda
spokeswoman said she had no knowledge of the matter
TECH/MEDIA/TELECOM
o
HPQ: H-P Board Surprised Hurd Didn't Go Quietly-
WSJ
o
Hewlett-Packard
Co.'s board got caught off guard by the public relations campaign waged on
behalf of its ousted chief executive, Mark Hurd, to defend his reputation in
the wake of his departure.
o
Studios, cable closer
to home movie deals- Reuters
o
Hollywood
studios are getting closer to a deal to make new movies available to cable and
satellite TV operators like Time Warner Cable and DirecTV as early as 30 to 60
days after their theatrical debuts, for a premium price.
o
NFLX: Epix's deal with
Netflix has benefits and drawbacks- LATimes
o
http://www.latimes.com/business/la-fi-ct-netflixfolo-20100811,0,1660259.story
o
Bharti Airtel Profit
Falls 32%- WSJ
o
Bharti
Airtel Ltd. Wednesday reported a 32% drop in first-quarter consolidated net
profit, weighed down by higher interest costs, a foreign-exchange loss and
intense competition in India's telecommunications market.
o
BCSI Blue Coat initiated
market perform at William Blair
o
AVGO Avago files 24.84M
share ordinary share secondary offering through Deutsche Bank, Barclays and
Morgan Stanley
o
JNPR Juniper Networks
files $1.5B mixed securities shelf registration, as previously announced
o
AVGO Avago guides Q3
revenue to ~$550M or +6.7% q/q vs guidance for growth of 4-7%; Reuters is
$541.3M
o
DIS Walt Disney says
scatter pricing at ABC network is running almost 20% above upfront levels -
conf. call
o
SLRY Salary.com reports
Q1 EPS
o
VIMC Vimicro
International reports Q2 ADS
o
TDC Teradata acquires
Kickfire -- PC World
o
TIGR TigerLogic reports
Q1 EPS
o
AOSL Alpha and Omega
Semiconductor reports Q2 EPS
o
TIER Tier Technologies
names Alex Hart CEO
o
SYMM Symmetricom reports
Q4 EPS
o
RMKR Rainmaker Systems
reports Q2 EPS
o
LDK LDK Solar reports Q2
EPS
o
DIS Walt Disney reports
Q3 EPS
o
SRX SRA International
wins $100M contract with Department of Defense
o
CREE Cree reports Q4 EPS
o
RIMM Research In Motion
agrees to repurchase 1.5M shares for $79.8M
o
DOW, GLW AMG.NA AMG Advanced
Metallurgical's Timminco unit to form joint venture with Dow Corning at
Bécancour Silicon Metal Facilities
UTILITIES
o
o
BX Blackstone Group in
early talks to purchase non-woven materials maker Polymer Group-- Reuters
o
HMPR Hampton Roads
Bankshares previously announced private placement transactions on track to
close at end of Q3
o
HMPR Hampton Roads
Bankshares to establish valuation allowance against deferred tax asset
o
Nasdaq
OMX, NYSE and NYSE Amex announce total short interest as of 30-Jul
o
HCII Homeowners Choice
reports Q2 EPS
o
MFI MicroFinancial
announces stock repurchase program
o
FNGN
Financial Engines reports Q3 EPS
o
IVZ Invesco reports
assets under management $580.3B at July 31, +4.1% m/m
o
ING: Dutch
financial-services company ING Groep NV on Wednesday reported a
larger-than-expected jump in second-quarter net profit as strong results at its
banking arm offset a weaker performance for insurance.- WSJ
o
WFC: Wells Fargo Must
Pay Consumers $203 Million in Overdraft Case- BBG
§ A judge ordered Wells
Fargo & Co. to stop manipulating debit-card transactions without consumers’
knowledge to increase revenue from overdraft fees
§ U.S. District Judge William Alsup in San Francisco sided with three
customers who sued in 2007 on behalf of thousands of Californians charged
overdraft fees. In a ruling yesterday, he agreed that the practice was unfair,
deceptive and fraudulent.
o
PDM Piedmont Office
Realty Trust reports Q2 core FFO
o
STWD Starwood Property
Trust upgraded to buy from hold at Citi; target is $21.
o
ARI Apollo Commercial
Real Estate reports Q2 operating EPS
o
BEE Strategic Hotels and
Resorts names Raymond Gellein, Jr, as Chairman
o
CLDT Chatham Lodging
Trust reports Q2 adjusted FFO
o
Nestle First-Half
Profit Rises 7.5%- WSJ
o
Nestle
SA on Wednesday warned of a difficult second half as the Swiss food and
beverages giant reported a 7.5% rise in first-half net profit.
o
The
Vevey, Switzerland-based company reiterated its full-year forecast but said higher
raw material costs are set to dent business
o
JACK Barron's Weekday
Trader is positive on Jack In The Box
o
FORD Forward Industries
acting Chairman and CEO Doug Sabra stepping down immediately
o
ALN American Lorain
reports Q2 EPS
o
CCME China MediaExpress
Holdings preannounces Q2 net income of $27-29M
o
CEU China Education
Alliance reports Q2 EPS
o
GPIC Gaming Partners
President and CEO appointed interim CFO
o
NRGY Inergy LP downgraded
to market perform from outperform at Wells Fargo; valuation range is $43-$45.
o
STS Supreme Industries
reports Q2 EPS from cont ops
o
SEB Seaboard Corporation
reports Q2 EPS
o
RCMT RCM Technologies
reports Q2 EPS
o
HCKT Hackett Group
reports Q2 EPS
o
LTRE Learning Tree
reports Q3 EPS
o
SENEA Seneca Foods
Corporation completes acquisition of Unilink
o
NAVR Navarre names J.
Reid Porter COO; Porter has been EVP and CFO since 2005 and will retain the
title while also assuming responsibilities as COO.
o
APT Alpha Pro Tech
reports Q2 EPS
o
GMCR Green Mountain
Coffee announces $250M stock purchase agreement with Lavazza
o
HMIN Home Inns &
Hotel Management reports Q2 adjusted EPS
o
DDE Dover Downs Gaming
extends letter of intent for video lottery facility
o
UTA Universal Travel
Group reports Q2 EPS
o
WOOF VCA Antech reports
revised Q2 to reflect additional non-cash SG&A accruals
o
SONO SonoSite announces
CFO Mike Schuh to retire at the end of the year
o
LUNA Luna Innovations
reports Q2 EPS
o
EAR HearUSA reports Q2
EPS
o
TMH Team Health Holdings
reports Q2 EPS
o
CSII Cardiovascular
Systems reports Q4 EPS
o
MYGN Myriad Genetics
reports Q4 EPS
o
UPI Uroplasty reports Q1
EPS
o
OMER Omeros Corp reports
Q2 EPS
o
CYPB Cypress Bioscience
receives consent for Biolinerx in-license agreement
o
AFL Aflac increases
quarterly dividend by 7.1% to $0.30 from $0.28
o
CFN CareFusion Corp.
reports Q4 adjusted EPS
o
JAZZ Jazz Pharmaceuticals
reports Q2 EPS
o
Stocks
mentioned on CNBC's Mad Money with Jim Cramer - TheStreet.com
o
+ AKAM, AEM, ERTS and
BIDU
§
ATVI and CCME
o
Metals
and Miners
o
Kloeckner (-4.7%). 1H figures inline, see sales growth above 25% in
2010.
o
Utilities
o
E.On (-0.4%). 1H figures inline, with 2Q figures slightly better
than expected.
Japan
o
NKY-2.70%,
TPX -2.37%
o
NKY
fell to 3-week low after the Fed downgraded its economic assessment, raising
concerns about an economic slowdown in the US and prompting further
appreciation of the yen. Turnover on the TPX rose to 1.03 trillion yen from
875.86B yen yesterday
o
Stocks
fell across most sectors led by materials, industrials, tech, oil & gas and
exporters
o
Exporters
fell on a strong yen: autos -2.50%, CE -2.62%, precision -2.53%, machinery
-3.14%
o
Tech
-2.84% tracking their US peers on concerns of a sales dropoff
o
Traders
-2.72% after metal and oil prices fell
o
Best
performing sectors on the TPX: airline +0.41%, electric power & gas -0.68%,
fishery, agriculture & forestry -0.89%; worst performing sectors: glass
& ceramics -3.67%, mining -3.40%, other financing -3.37%
Hong Kong
o
HSI
-0.83%; HSCEI -1.73%
o
Stocks
fell led by mainland banks after CBRC ordered banks to transfer
off-balance-sheet loans onto their books and make provisions for those that may
default. Turnover on the HSI rose to HK$18.62B from HK$17.48B yesterday
o
Mainland
banks fell after CBRC ordered banks to transfer off-balance-sheet loans onto
their books and make provisions for those that may default:
China
o
SHCOMP
+0.47%; SZCOMP +0.98%
o
Stocks
closed higher after fluctuating between gains and losses with investors
digesting more data showing the country’s economic growth was moderating.
Turnover on the SHCOMP rose to 127.32B yuan from 124.52B yuan yesterday
o
Stocks
rose across most sectors led by tech, consumer, health care, industrial and
financials. Telecom and oil & gas fell
o
Banks
+0.34%, real estate +2.12% after CPI rose 3.3% YoY in July, in-line with
consensus and up from 2.9% in June, easing concerns further policy tightening.
New yuan loans fell to 532.8B yuan from 603.4B yuan in June. Separately, the
CBRC ordered banks to transfer off-balance-sheet loans onto their books and
make provisions for those that may default
M&A
o Finning says has no involvement in Aecon deal- Reuters
o Analysts had speculated publicly that Finning,
a heavy equipment dealer, was involved in financing the C$180 million ($173
million) deal between the two construction companies, which was announced on
Monday
o GOOG Google Steps Up Acquisitions as Some Internal Projects Falter- BBG
o Google CEO Eric Schmidt has doubled the
anticipated pace of acquisitions this year and expects to maintain that rate
after some internal projects have failed to spur growth.
o “The
opportunities are there,” Schmidt said in an interview from the company’s
Mountain View, California, headquarters this week. “We can afford it. We’re in
a mode of investment for the long term.”
o Sillerman prepares $500 million bid for American Idol owner CKXE-
Reuters
o CKX former chief executive and largest
shareholder Robert Sillerman said he was preparing to bid for the owner of the
popular American Idol show for about $5.50-5.75 a share in cash
o http://www.reuters.com/article/idUSTRE67926S20100810
o Taiwan's Chinatrust: would seek AIG unit buy- Reuters
o Chinatrust had originally bid for the unit,
Nan Shan, last year when AIG put it up for sale as it retrenched following its
U.S. government bailout
o But the bank lost out to a consortium of
diversified battery maker China Strategic Holdings and Hong Kong investment
fund Primus, who have been unable to seal a deal
o http://www.reuters.com/article/idUSTPV00184920100811
o India May Sell 5% ONGC Stake to Help Reduce Deficit- BBG
o India’s government is considering selling a 5
percent stake in Oil & Natural Gas Corp., the nation’s biggest energy
explorer, to help narrow its budget deficit and fund social spending.
o India is seeking to raise a record 400 billion
rupees ($8.6 billion) from asset sales in the year ending March 31 to help pay
for the biggest budget-deficit reduction in 19 years.
o Blackstone In Talks To Buy Polymer Group- PeHub
o Private equity firm Blackstone Group (BX.N) is
in exclusive, early-stage talks to buy MatlinPatterson’s Polymer Group
(POLGA.OB), a non-woven materials maker, a source familiar with the matter said
on Tuesday
o http://www.pehub.com/79531/blackstone-in-talks-to-buy-polymer-group/
o Spyglass nears deal to run film studio MGM-WSJ- Reuters
o Spyglass Entertainment is nearing an agreement
to run Metro-Goldwyn-Mayer Inc once the film studio restructures $4 billion of
debt this summer through the bankruptcy process
o An agreement could come as soon as this week,
valuing MGM at about $1.9 billion
o http://www.reuters.com/article/idUSN1017539120100810
o Buyout firms target MS M. Stanley real estate fund-FT- Reuters
o KKR and Co (KKR.N) and TPG, which both lack
substantial property operations, have expressed tentative interest in the
Morgan Stanley Real Estate Fund, while Colony Capital, which has been adding
property exposure, has also approached the bank
o http://www.reuters.com/article/idUSN1018092920100811
o DoCoMo likely to invest $1 bln in Tata Tele- Reuters
o DoCoMo's stake in Tata Teleservices is seen
rising to 35-40 percent from current 26 percent
o F Ford, Mazda get approval to break-up 3-way China JV- Reuters
o Ford and Mazda will each set up separate 50-50
joint ventures with Changan at the end of this year
o The partners had submitted a proposal to the
Chinese government earlier this year to split the tie-up into two separate
ventures
o http://www.reuters.com/article/idUSTOE67A03820100811
o ACS strikes deal with CVC on Abertis stake- reuters
o Spain's ACS has reached a deal to sell a chunk
of its stake in Spanish toll road operator Abertis (ABE.MC) to private equity
fund CVC, freeing up the builder to cut debt and pursue its interest in
Iberdrola.
o http://www.reuters.com/article/idUSLDE67A0ET20100811
o Deutsche Bank buys stake in NZ's Craigs Investment- Reuters
o Deutsche Bank said on Wednesday it has
completed a deal to acquire a 49.9 percent stake in New Zealand private wealth
and investment management firm Craigs Investment Partners as part of a
strategic alliance
o http://www.reuters.com/article/idUSSYU01045620100811
$ RAISING
IPOs
o Everbright Bank said to price IPO at top of range- Reuters
o China Everbright Bank has set the price for
its Shanghai initial public offering at the top of an indicative range, putting
it on course to raise up to $3.2 billion
o http://www.reuters.com/article/idUSTRE67A0FE20100811
o MakeMyTrip Selling 1st U.S. IPO by Indian Company in Four Years- BBG
o MakeMyTrip is selling the first U.S. initial
public offering by an Indian company in four years at a 26 percent premium to
the biggest online travel agencies.
o MakeMyTrip, which has lost money for three
years booking reservations in India and abroad, may raise $70 million today
PRICINGS
o Initial Offerings
o
SMG Indium Resources 9m share IPO expected to price 8/9
via Rodman & Renshaw and Sunrise Securites: Price Talk $5
o
KH China Kanghui Holdings prices its 6.7m share IPO in the middle of
the expected range at $10.25/shr
o
DLC DLC Realty Trust boosts
IPO to 40m shares from 31.25 and cuts expected price to $12-13 vs $15-17
o
MDMD MediaMind Technologies 5m share IPO prices below the range at
$11.50-/shr
o
MMYT MakeMyTrip 5m share IPO expected to price 8/11 via MS:
Price Talk $12-14
o
RP RealPage 13.5m share IPO expected to price 8/11
via CS and DB: Price Talk $13-15
o Secondary Offerings
o
MOH Molina Healthcare $126.8m secondary prices at
$27/shr
o
COT Cott Corp $65m secondary expected to price 8/11 via DB,
JPM, and MS
o
ASR Grupo Aeroportuario del Sureste $231m secondary expected
to price 8/11 via JPM and Macquarie
o
PSTB Park Sterling Bank $230m secondary expected to price 8/11
via KBW
o
SUNH Sun Healthcare $167m secondary expected to price 8/12 via
Jefferies, CS, and JPM
NEWS
o Mexicana needs at least
$100 mln to keep flying, CEO- Reuters
o
Time is ticking for troubled Mexicana, which has
ceased flying more than a dozen international routes and stopped selling tickets
after requesting creditor protection last week under Mexico's insolvency law.
The company has yet to be declared bankrupt
o
http://www.reuters.com/article/idUSN1016500420100810
o KKR to start
fundraising in next few quarters- Reuters
o
http://www.reuters.com/article/idUSTRE6793IC20100810
o
Tech: JNPR Juniper
files $1.5B mixed securities shelf
o
ATW Atwood Oceanics files
$500M mixed securities shelf
o
OMER Omeros files to sell
4.3M shares of common stock for holders
o
RGNC Regency Energy files to sell
14M common units
o
EV Energy files to sell
3M common units
o
BALT Baltic Trading files
to sell $110M in common stock :theflyonthewall
o
TODAY’S EVENTS
o
Canaccord
Adams Global Growth Conference - Aug 10, 2010 - Aug 12, 2010
·
8AM: HLF , INUV , KITD
·
8:30AM: ATEC , CHOP
·
9AM: MNKD , QLGC
·
9:30AM: MRNAD , ZIOP
·
10AM: ATHR , PMTC
·
10:30AM: CYTK , SYK
·
11AM: STN
·
11:30AM: DGI , MATK , ULTI
·
1PM: CBPO , HOLX
·
1:30PM: CKSW
·
2:30PM: FSLR , MITI
·
3PM: ATHN
·
3:30PM: HTWR , ICFI
·
4PM: DLB , TYPE
·
4:30PM: VICL
·
5PM: FSYS , TH.CA
·
NTS: ITRI , ZRAN
o
Canaccord
Adams Global Growth Conference-Duplicate
·
11AM:
LMNX
o
Citi
Asean Investor Conference - Aug 11, 2010 - Aug 12, 2010
·
NTS: 544.SI , A48U.SI , ABS.PS , AIPUF.PK , CC3.SI ,
COIVF.PK , GPACKET.KL , GTMEF.PK , ICT.PS , IJMPLNT.KL , IRPTF.PK , KOSSAN.KL ,
NPTOF.PK , OVCHF.PK , PHI , S68.SI , STAR.KL , SUPERMX.KL , TCIJF.PK ,
TOPGLOV.KL , UOVEY.PK , V03.SI , YTLPF.PK
o
Collins
Stewart, Inc HealthCare Conference
·
NTS: QCOR, SLTM, STAA, TSPT
o
Credit
Suisse Group Industrial Conference - Aug 10, 2010 - Aug 11, 2010
·
7:30AM: AVY
·
2:35PM: ROP
·
NTS: CAT
o
IFSA
Next Gen Annual Conference - Aug 10, 2010 - Aug 12, 2010
o
International
Quality & Productivity Center Military Vehicle Armor & Power Focus Day
- Aug 10, 2010 - Aug 13, 2010
o
Jefferies
& Co. Global Industrial and A&D Conference - Aug 10, 2010 - Aug
12, 2010
·
4AM: NCIT 8AM: ATSC
·
9AM: CUB , IBI
·
9:30AM: CBT
·
10:30AM: BEAV
·
11AM: CIR , SOA
·
11:30AM: GR
·
1PM: COL
·
1:30PM: GBX , GTEC
·
2:30PM: ATI
·
3PM: PMFG
·
NTS: BEZ
o
Morgan
Keegan Security and Defense Conference
·
9:05AM: COGT , OSIS
·
9:45AM: AVAV
·
10:15AM: SYMM
·
10:45AM: IRBT
·
12:45PM: LCRD
·
2:25PM: CAMP
·
3:25PM: WAVX
·
3:55PM: DGLY
o
Morgan
Keegan Technology Conference - Aug 11, 2010 - Aug 12, 2010
·
8:05AM: DIOD , OPLK
·
8:30AM: RFMD
·
8:35AM: OCLR
·
9:05AM: APKT , LOGI
·
9:45AM: ELX , EXFO
·
10:15AM: XXIA
·
11:35AM: KTOS
·
12:45PM: AUTH , JCOM
·
1:15PM: SUPX
·
1:45PM: ARRS , MSCC
·
2:25PM: CNQR , PLCM
·
2:55PM: ACOM
·
3:25PM: PLT , TLEO
·
3:55PM: BBOX , SMSC
·
4:25PM: KEYN , NENG
·
NTS: ANAD
o
Oppenheimer
& Co. Telecommunication, Media & Technology Conference - Aug 10, 2010 -
Aug 11, 2010
·
8:30AM: BRCM
·
9:10AM: MOVE , Q , STEC , TDC
·
9:50AM: KNXA
·
10:30AM: CA , CNXT
·
11:10AM: ABVT , ADBE , SVR
·
11:50AM: LRCX , SFSF , VECO
·
1:50PM: SCOR , TSYS
·
2:30PM: KLIC , LVLT , RENT , SYNT
·
3:10PM: ALSK , RAX
·
3:50PM: PAET
·
NTS: KNOT , VZ
o
Red
Herring, Inc. Asia Conference - Aug 10, 2010 - Aug 12, 2010
o
Susquehanna
International Group, LLP Summer Energy Conference - Aug 10, 2010 - Aug 11, 2010
o
Terrapinn
Real Estate Investment World Australia Conference - Aug 09, 2010 - Aug 11, 2010
o
UBS
Engineering & Construction One-on-One Conference
·
NTS: FWLT
o
Wall
Street Research Small Cap Conference - Aug 11, 2010 - Aug 12, 2010
o
Wellington
Shields & Co. LLC East Coast Seminar - Aug 09, 2010 - Aug 11, 2010
o
TODAY’S EVENTS
o
Shareholder
Meetings
§
SOLR,
NICK, LABL, XLNX, XAE, QSII, CPY
o
ECONOMICS
o
0700
Mortgage Applications
o
0830
Trade Balance
o
1400
Monthly Budget Statement
o
EARNINGS
o Autos
·
SUP,
AAP
o Materials
·
XRM,
VRS, ZOLT
o Consumer/Retail/Education
·
AAIR,
MFB, M, SUSS, BOBE, JAX, CRWS, STLY, CVO, CEU, EDMC, GAI, KELYA, RCMT, ANW,
GLOI
o
Energy
·
WH,
ISRL, REN, OOIL
o Financials
·
NBN,
UNAM, FCZA, PMBC, ABCW, BFCF, FABK, FCLF, RCKB, NEWT
o Gaming, Lodging,
& Leisure
·
UTA,
LACO
o Healthcare
·
KV/A,
CXM, RXII, SSRX, NPD, AMAC, GIVN, CNSO, MZEI, INIS, SRLS, WGBS, CORT, EMIS,
NVDL, SOMX
o Industrials/Homebuilders
·
ARTX,
KSW, ABAT, CPTC, UPG, MLAB, TBUS, XRIT, CECE, MNTX, NFEC, NNBR, SEED, CYD, STS,
ACY
o Media
·
AMCN
o Real Estate
·
CLNY,
CRIC, EJ
o
Tech/Telecom
·
SCIL,
HILL, CSC, NLST, SRX, AVT, IDSY, XOHO, PAYD, ARCL, EDGR, GLOW, SDXC, TCX, WEBM,
APAC, CSCO, GRRF, JCS, RWC, SHOR
o Transportation
·
CPA,
XJT, TK, TNK
***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
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