Cantor Morning News | Morning @ Cantor

o Treasuries snapped a two-day advance, pushing 10-year yields up from a 17-month low, before government and central bank reports that economists said will show housing and industrial production improved.

o Treasuries: China Cuts Long-Term Treasuries By Most Ever- BBG

o China reduced its holdings of Treasury notes and bonds in June by the most ever as yields on U.S. government securities fell amid signs of slower economic growth

o Commodities

o Gold up 2.3 to 1228, Crude up 1 to 76.24

o Oil: Supply Falling to Four-Week Low in Survey- BBG

� Stockpiles dropped 1 million barrels, or 0.3 percent, in the seven days ended Aug. 13 from 355 million a week earlier, according to the median of 13 analyst estimates before an Energy Department report tomorrow

o Base metals are up again..Zinc is up 2%, lead, copper and nickel are up 1.5%, aluminum is up 1%, tin is up small.

o Overseas Action

o Europe markets: FTSE 100: +0.86%; DAX: +0.65%; CAC 40: +0.71%

� Major indices opened higher, bouyed by some strong corporate earnings with a strong Spanish bond auction also lending support- SA

o Asian Markets: Nikkei (0.38%); Hang Seng +0.12%; Shanghai Composite +0.38%

� Narrow sideways trading range seen in US session was likewise evident early in Asia hours, particularly in FX majors, before some risk-related buying emerged later in the day- TTN

o Data:

� Hong Kong July Unemployment Rate: 4.3% v 4.5%e

� UK July CPI M/M: -0.2% v -0.2%e; Y/Y: 3.1% v 3.1%e; Core CPI Y/Y: 2.6% v 3.1%e

� Germany Aug ZEW Economic Sentiment: 14.0 v 20.0e; Current Situation: 44.3 v 24.0e

o Spain Auction goes well: �Sells EU5.5 Billion of 12-, 18-Month Bills; Yields Fall- BBG

� Spain sold 4.34 billion euros of 12-month bills today at an average yield of 1.836 percent, compared with 2.221 percent on July 20, as demand was 2.47 times the amount sold, up from 1.95 times last month

o Japan: Nikkei News suggested PM Kan is considering additional fiscal stimulus and is also planning to meet with BOJ Gov Shirakawa for the first time in nearly 3 months- TTN

o Japan: BOJ MAY CONSIDER STEPS IF YEN RISES SHARPLY- DJ

o Japan: EX-MOF WATANABE SAYS NO NEED FOR ACTION ON YEN- REUTERS

o China: According to China govt State Council researcher Chen Daofu, interest rates do not have to be raised in H2 because govt can use other measures to withdraw stimulus - China Business News

o Carlsberg reported a stronger than expected net earnings and a revenue in line with estimates. Profitability also increased as evidenced by the operating margin and the company raised its forecast for the year's operating profit and net growth. Russian market is also expected to decline less.- TTN

o Don't Count on Europe to Drive Recovery- CNBC

o Germany:� Merkel to stick with cuts despite growth- FT

� Angela Merkel, German chancellor, is sticking with plans to cut public spending and hold off tax cuts even as the country�s recent growth spurt suggests that the economy this year could expand at twice the rate last forecast by Berlin

o King Says Inflation May Exceed 3% for Months in Osborne Letter- BBG

� King was today forced to write a third public letter this year after the Office for National Statistics said prices rose 3.1 percent in July from a year earlier after climbing 3.2 percent in June.

Economics today:

o ICSC-Goldman Chain Store at 07:45 ET

o Jul Housing Starts/Permits, PPI at 08:30 ET

o Redbook Chain Store at 08:55 ET

o Jul Industrial Production, Capacity Utilization at 09:15 ET

o API Crude Inventories at 16:30 ET

o ABC Consumer Confidence at 17:00 ET

Earnings:

o Companies due to report before the bell include: ANF, HD, TJX, WMT

o Companies due to report after the close include: ADI

TODAY�S BIG STORIES

o Top M&A

o POT Potash Corp.�s Board Rejects $130-a-Share BHP Proposal- BBG

o DELL to Buy PAR 3PAR for $1.15 Billion- WSJ

� Dell Inc. plans to purchase data-storage company 3PAR Inc. for about $1.15 billion in cash, as the personal-computer maker, playing catch-up with bigger rivals, seeks to boost its offerings for corporate-technology departments.

o APD Air Products says FTC signs off on ARG Airgas bid- Reuters

o Vedanta sees no deal hurdles in Cairn deal- Reuters

o Santander renews merger talks with MTB M&T � FT

o Top $ Raising

o BP Raises $5 Billion in Loans from Europe Banks- CNBC

o BP Pays 3 Times Interest for Loans Amid $50 Billion Spill Costs- BBG

� BP Plc is paying almost three times its 2009 borrowing costs as it seeks to raise money to help it meet about $50 billion in costs for the Gulf of Mexico spill.

o Wall Street lukewarm to Hulu IPO plans- Reuters

o GM mulls "cornerstone" sales in IPO- Reuters

o Nielsen plans to raise $2 billion in IPO- CNBC

o HD Home Depot: reports a mixed to better Q. Top line looks to fall short while EPS is slightly better, and raised FY guidance. Sentiment was very negative coming into the report.

o Much Oil Remains in Gulf: Researchers at the University of Georgia said Monday that more than three-quarters of the oil spilled in the Gulf of Mexico following the Deepwater Horizon drilling-rig explosion could still be in the Gulf threatening fisheries and marine life- WSJ

o Louisiana Shrimpers Get Back to Work- WSJ

o Deepwater Drilling: Drilling Permits for Deep Waters Face New Review- NYT

o The Obama administration said Monday that it would require significantly more environmental review before approving new offshore drilling permits, ending a practice in which government regulators essentially rubber-stamped potentially hazardous deepwater rojects like BP�s out-of-control well

o US judge rejects Citi�s $75m subprime deal with SEC- FT

o Barclays to Pay $298 Million to Settle Charges Involving Iran, Libya, Cuba- WSJ

o Barclays agreed to pay $298m to settle charges by U.S. and NY prosecutors that the U.K. bank altered financial records for more than a decade to hide hundreds of millions of dollars in payments flowing into the U.S. from Cuba, Libya, Iran and other sanctioned countries.

o FNM, FRE meeting is today: Government-owned mortgage behemoths Fannie Mae and Freddie Mac could be converted into giant co-ops co-owned by Wells Fargo, Citigroup, JPMorgan Chase and Bank of America under one plan to be discussed today at a government summit aimed at determining the future of the government-sponsored entities- NYPOST

o Tech: China Unicom Hong Kong to offer iPhone 4 in China early next month, says Caixin � MarketWatch

o Tech: WTO Orders EU To Lift Tech Tariffs- WSJ

o The World Trade Organization ordered the European Union to strike down import tariffs on billions of dollars of high-tech goods or risk retaliatory trade sanctions

o Work Stoppage avoided: Fears of chaos at airports including Heathrow, Edinburgh and Stansted receded on Monday night after a settlement was reached in a row over pay at BAA- FT

o Autos: Toyota Rethinks Pedal Design- WSJ

o Toyota Motor is studying the design and placement of its accelerator and brake pedals to see whether the current setup makes drivers more prone to hit the wrong one

o Prop 8: Appeals Court Keeps Gay Weddings on Hold- WSJ

o A federal appeals court kept same-sex weddings in California on hold until it hears the appeal of a lower-court ruling that found the state's Prop 8 gay-marriage ban unconstitutional.

o 1^ST Overall Pick Bryce Harper signs with the Nationals- WPO

o Pentagon Misspends Emergency Fund on Afghan Power, Skelton Says- BBG

o The Defense Department is misspending at least $227 million on an Afghan power project from a U.S. fund designed to let combat commanders bankroll small, high- impact humanitarian efforts

o BRK.A Berkshire May Scale Back Derivative Sales After Dodd-Frank- BBG

o Warren Buffett�s Berkshire Hathaway, which has more than $60 billion at risk in derivatives, may scale back offering new contracts because of collateral- posting requirements

o Macro negative:

o Hindenburg Omen Will Play Out in 3-4 Weeks, Cashin- CNBC

� �It�s a bit of a warning�it isn�t confirmed, but we will know in the next 3 or 4 weeks,� he said.

o LOW Lowe�s expects fragile demand to remain- FT

� Lowe�s, the US home improvement retailer, said it expected consumer demand to continue �to bounce along the bottom� in 2010, reflecting a �fragile consumer mindset� that was vulnerable to negative macro-economic news.

o Macro Positive:

o Global Recovery �Well in Place,� Mark Mobius Says- BBG

� The global economic recovery is �well in place� and may accelerate as growth in developing nations counters a slowing pickup in Japan and the U.S.,

� The so-called BRIC markets of Brazil, Russia, India and China, as well as Turkey and South Africa, will drive the recovery, said Mobius

o Production, Housing Starts in U.S. Probably Increased in July- BBG

� Industrial production and housing starts probably rose in July from depressed levels the prior month as the U.S. struggled to sustain the recovery, economists said before reports today.

� ��It�s a picture of a subdued recovery,� said Julia Coronado, a senior U.S. economist at BNP Paribas in New York. �Manufacturing will settle into a slower pace of expansion in line with final demand that�s pretty soft.�

o Political Stories:

o Mass. a test case for Obama '12- WPO

� Many of the top strategists in Obama's political circle are helping to orchestrate Gov. Deval Patrick's reelection campaign, and they are looking to his contest for clues to what might work for the president in 2012.

o Obama campaigning, ties Republicans to big business- Reuters

� President Barack Obama painted Republicans as obstructionist allies of corporate America on Monday

� He accused Republicans of trying to turn back the clock by resisting his administration's efforts to bolster the sagging economy.

� http://www.reuters.com/article/idUSTRE67F42G20100817

o Senator Reid opposes NY Muslim center site- Reuters

� �The First Amendment (of the U.S. Constitution) protects freedom of religion. Senator Reid respects that but thinks that the mosque should be built someplace else,"

o Democrats divided over proposed New York City mosque- WPO

� http://www.washingtonpost.com/wp-dyn/content/article/2010/08/16/AR2010081605425.html?wpisrc=nl_cuzhead

o Defense chief Gates says wants to leave in 2011- Reuters (Monday)

� But his press secretary Geoff Morrell shot down suggestions that Gates announced his retirement to Foreign Policy magazine, saying it was nothing more than "musings" over a wish to quit, which the U.S. defense chief has done before

o Tech: Four Democrats urge U.S. to act on Internet traffic- Reuters

� Democrats Ed Markey of MA, Anna Eshoo of CA, Mike Doyle of Pa and Jay Inslee of WA all members of the House Energy and Commerce Committee, sent a letter to Genachowski that said he should maintain a free and open Internet

o Fed watch stories:

o Big Banks Loosen Lending Standards- WSJ

� Big banks in recent months eased standards on small-business lending for the first time since late 2006, a Federal Reserve survey found, but customers of all sizes showed little appetite for loans with the economy slowing

o Easier Loan Standards Fail to Boost Demand, Fed Survey Shows- BBG

o Keeping Rates Too Low 'Dangerous Gamble', Hoening- CNBC

� The Fed is undertaking a "dangerous gamble" by keeping rates at near zero for so long, and must start raising rates or risk damaging the nascent U.S. recovery

o Fed Issues Lending Rules to Shield Against Abuses- American Banker

� The Federal Reserve Board issued a series of mortgage rules Monday before authority over such measures passes to the Consumer Financial Protection Bureau

o Crisis Watch

o Blast Kills at Least 41 in Baghdad- WSJ

o Militants Overtake India as Top Threat to Pakistan- WSJ

� Pakistan's main spy agency says homegrown Islamist militants have overtaken the Indian army as the greatest threat to national security

o U.S. Sounds Alarm at China's Military Buildup- WSJ

� The Pentagon voiced alarm over China's military buildup, saying it was expanding its advantage over Taiwan and investing heavily in ballistic and cruise missile capabilities that could pose a challenge to U.S. dominance in the western Pacific

o World Bank pledges $900 million in flood aid to Pakistan- Reuters

� The World Bank funds will come through the reprogramming of planned projects and reallocation of undisbursed funds, but it did not say how it would be utilized to aid flood victims

o Suspect ship seen before Japan tanker blast- Reuters

� The radar of a Japanese supertanker that was damaged by an explosion near the Strait of Hormuz last month showed a small ship making suspicious movements near it at the time of the incident

o �Israel�s Existence in Danger� If It Attacks Plant, Iran Says- BBG

� Iran will respond if Israel attacks its first nuclear power plant, which will begin loading fuel Aug. 21

� ��In that case we will lose a power plant, but Israel�s existence will be in danger,�

o START expiration ends U.S. inspection of Russian nuclear bases- WPO

� For the first time in 15 years, U.S. officials have lost their ability to inspect Russian long-range nuclear bases, where they had become accustomed to peering into missile silos, counting warheads and whipping out tape measures to size up rockets.

� The Obama administration hopes the inspections and messages will soon resume under the New START agreement, which was signed by the two countries in April. But the pact is on hold in the Senate

o Fund Stories

o Hedge Fund Managers Go Bargain-Hunting in Oil Stocks- CNBC

� Top hedge fund managers went bargain hunting in the oil patch in the second quarter, buying shares whose prices had fallen because of BP's Gulf of Mexico well disaster and lower oil prices

o Resurgence of controversial hedge fund strategy- FT

� Fixed-income relative value trading � shunned by investors after the collapse of LTCM in 1998 � has been one of the industry�s few outperformers this year

o Top Real Estate Stories:

o Banks Should Let More Homeowners Refinance, says one CEO- CNBC

� Doug Dachille of Principles Capital Management. said the Fed policy has failed to benefit those it intended to help�the borrowers

o US house mortgage arrears mount- FT

� Mortgage rates have also plunged to record lows but falling borrowing costs have failed to revive the US housing market

o House prices face rollercoaster ride- FT

� Global housing markets have broadly staged a modest recovery over the past year. But the improvement in many countries is already showing signs of running out of steam, and there are fears that markets that bounced back from the house price crash of 2006-07 are again approaching tipping point

o Fed Adopts Rules Meant to Protect Home Buyer- American Banker

� The Fed announced that it was adopting new rules banning yield spread premiums, which allowed mortgage brokers and lenders to gain additional profit from loans by charging borrowers higher-than-market interest rates

o Equity Recap

o Futures started off in negative territory, pressured by weak GDP data from Japan (GDP annualized came in at 0.4%, below the 2.3% expected). The only early domestic release was the Empire Manufacturing Index, which also disappointed (7.10 vs. an expected 8). S&P Futures notched the day�s low (1066.60) right at the 9:30 cash open. They spent the next hour in a 12 point rally, then faded a few points before climbing to the day�s high (1081.40) at lunchtime. A failure to rally further led to a renewed fade; the bears, however, proved unable to capitalize and S&P�s spent the balance of the session in lackluster trade. They closed right about where the opened.

o There was renewed commentary from JP Morgan and Blackrock detailing how cheap equities are compared to bonds. Stocks currently have free cash flow yields equal to 6.8% of their price. For example, MO has a FCF yield of 7.1%, while EMC�s is 7.7%. This year, investors have piled into bonds (allocating $185B to bond funds) while shunning stocks (withdrawing $33B from equity funds). IBM has been able to raise 3 year money at record low rates (1%), while JNJ scored a record low in 10 year paper (2.95%). The market seems to be pricing in an episode of troublesome deflation; if we can avoid those troubles, stocks may indeed be cheap.

o It was a very quiet day with the market in a tight, quiet range all day. There was a lot of m&a that helped the market , in spite of much weaker than expected gdp out of Japan which has to be expected to some degree and you had some big negative issues for the educational space, which made the value names that much more valuable. The volume was very light as it has been of late and you had LOW disappoint which was also somewhat telegraphed. There has been minimal conviction and action to back that from what we saw. We did see some guys covering shorts where they could, but some were laying them out as well. There were 5 deals/offerings� that showed us money is still cheap and companies are cash rich and looking for things to do with their money. If we get another down day next is cluster support after 1070 in the 1056/1060 area (1056 is 61.8% retracement of move from 1011 low to 1129 high).

o Billy Clark and Team

o Converts recap

o We�re deep into the vacation schedule and volumes are extremely low. Customer sells were exceeding customer buys through the morning but by the end of the day, it was about even. Confirming no clear direction. The Consumer, Non-Cyclical sector continues to dominate whatever little volume we do have. On the primary side, MannKind Corporation (MNKD) announced a $100MM Convertible deal and an 8,000,000 share offering.�

o Tom Fazio

o Rates Commentary

o The Treasury market continued its bull flattening move - with a vengeance!!� 2s - 30s was flatter by another 10bps today as investors continued to move out the curve in a grab for yield. Treasuries started trading well in the overnight session following much weaker than expected GDP in Japan and that solid tone continued into US trading hours. 2s - 30s has now flattened almost 20bps from the day of the 30yr auction last Thursday.

o Tomorrow we get our first buyback of QE2 in the 5 to 7 yr sector and we think the risk is that the market is disappointed with the purchase size which should be considerably smaller than the purchases made by the FED in QE1. Today felt like a capitulation trade of long standing short positions in the long end of the curve and we think the market is ripe for a pullback to slightly higher yields - but the big trend points to a continued rally in bonds

o Primary Dealer

SECTOR NEWS WITH MACRO IMPLICATIONS

ENERGY

o �TRMA Trico Marine Services reports Q2 EPS

o AXAS Abraxas Petroleum reports Q2 EPS

o END Endeavour International offers 9M shares at 1.13/share in private placement

o AEZ American Oil & Gas reports Q2 EPS

o PEIX Pacific Ethanol reports Q2 EPS

o PAA, PNG Plains All American and PAA Natural Gas modify PAA's holdings in PNG

o IOC InterOil reports Q2 EPS

INDUSTRIALS

o �PTV Pactiv Corp in advanced talks to be acquired by New Zealand's Rank Group - Bloomberg

o FLR Fluor-led team awarded 10-year, $2.1B contract for Portsmouth cleanup from Department of Energy

o RINO RINO International reports Q2 EPS

o GNK Genco Shipping & Trading takes delivery of two supramax vessels

o LNN Lindsay Corp initiated buy at Janney Capital; target is $45.

o A Agilent reports Q3 EPS

TECH/MEDIA/TELECOM

o RIMM India gives mobile operator deadline on BlackBerry- Reuters

o http://www.reuters.com/article/idUSTRE67151F20100817

o SLAB Silicon Laboratories files patent infringement lawsuit against Airoha Technology Corporation

o TIER Tier Technologies announces resignation of Charles Berger from the position of CEO; names Alex Hart as CEO

o EMKR EMCORE delays 10Q filing

o PWRD Perfect World reports Q2 EPADS

o ONSM Onstream Media reports Q3 EPS

o SGI Silicon Graphics International guides full year Non-GAAP revenue to $520-530M vs Reuters $530.1M

o VITC Vitacost.com resumed perform at Oppenheimer

o GOOG Google initiated underperform at Wedbush Securities; target is $525.

o NVLS Novellus introduces conformal film deposition technology for sub-32nm front-end-of-line and double patterning applications

o WYY WidePoint reports Q2 EPS

o HOLL Hollywood Media reports Q2 EPS

o BITS Bitstream reports Q2 EPS

o DIET eDiets.com reports Q2 EPS

o CAMP CalAmp awarded $1.1M contract

o IVD IVAX Diagnostics reports Q2 EPS

o API Advanced Photonix reports Q1 EPS

o XFN XFONE reports Q2 EPS

MATERIALS

o IVN Ivanhoe Mines reports Q2 EPS

o GFRE Gulf Resources reiterates f10 revenue guidance of $146M to $150M

o GFRE Gulf Resources reports Q2 EPS

FINANCIALS

o HIG Hartford Financial trading higher following Paulson 13F

o Paulson discloses holdings as of 30-Jun in 13F filing�

o BSBR Banco Santander (Brazil) files amended S-1; to register 104.3M units for holders, down from prior 190M units

o CBC Capital Bancorp reports Q2 EPS

o C Citi reports July master trust data

o Berkshire Hathaway discloses holdings as of 30-Jun in 13F filing�

o CPSS Consumer Portfolio Services reports Q2 EPS

o Berkshire Hathaway discloses holdings as of 30-Jun in 13F filing; Berkshire discloses new positions in: FISV 4.4M shares

o AFFM Affirmative Insurance reports Q2 EPS

o DFR Deerfield Capital reports Q2 core EPS

o AMTD TD Ameritrade reports Jul DARTs 327K; (3%) m/m and (12%) y/y

o Cowdery Pushes Insurers to Change, Raise Dividends- BBG

o Clive Cowdery founded buyout company Resolution Ltd. in 2008 saying he wanted to snap up stagnating U.K. insurers. Two years and two acquisitions on, his presence has pushed rivals to their best half-year results since the financial crisis.

o http://sfgate.bloomberg.com/SFChronicle/Story?docId=1376-L6XI7Z07SXKX01-0U9L7NV83SU42GA60V6EPCAGMK

TRANSPORTS

o TOO Teekay Offshore Partners to offer 5M units through BofA/ML, Citi and UBS

CONSUMER

o Berkshire Doubles JNJ Stake; Soros Fund Drops 42%- WSJ

o The Buffett-controlled firm continued to sell shares in consumer-products firm PG Procter & Gamble and KFT Kraft Foods

o FFHL Fuwei Films reports Q2 EPS

o ATRN Atrinsic reports Q2 EPS

o USTR United Stationers promotes P. Cody Phipps to COO; effective 1-Sep

o LWAY Lifeway Foods reports Q2 EPS

o OSK Oshkosh awarded $201.5M contract

o HBE Henry Bros. Electronics reports Q2 EPS

o USNA USANA announces acquisition of BabyCare for $45M in cash and 400K USANA shares; conference call 17-Aug at 9 ET: 877.941.2930.

o CTRN Consensus same-store sales estimates for Citi Trends

o CRWS Crown Crafts announces certified results of votes cast at its annual meeting

o CATM Cardtronics announces offering of 7M shares by holders through Piper Jaffray and UBS

o URI, FLR United Rentals announces North American industrial joint venture with Fluor's AMECO��

o HALL Hallmark Financial reports Q2 EPS

o QKLS QKL Stores reports Q2 EPS

o CASY Casey's General reports July comps

o URBN Urban Outfitters reports Q2 EPS

o DMND Diamond Foods announces $8M kettle chips plant expansion in Salem, Oregon

GAMING, LODGING, & LEISURE

o �LONG eLong reports Q2 net income per ADS $0.05

o Station Casinos reports Q2 net revenues of $233.6M, (12.6%) y/y��

o NLS Nautilus reports Q2 EPS

o RICK Rick's Cabaret reports Q3 Revenues $19.9M vs Reuters $20.3M

HEALTHCARE

o GTS Triple-S Management says its managed care subsidiary will not be invited to participate in the negotiation process for new Reform business awards

o BLTI Biolase Technology reports Q2 GAAP EPS

o DYII Dynacq Healthcare board approves plan to dispose of 2 hospitals

o PZZ Prospect Medical Holdings reports Q3 EPS

o MNOV MediciNova reports Q2 EPS

o CO China Cord Blood files $100M mixed securities shelf

o CPTS, HOLX Conceptus named as defendant in action brought by Hologic

o UNH UnitedHealth's Ingenix unit acquires Axolotl

o DCTH Delcath Systems announces 5.2M share secondary offering through Canaccord

o CUR Neuralstem reports Q2 EPS

o The Centers for Medicare & Medicaid Services reports July Medicare Advantage enrollment�

o AGP, CI, CNC, CVH, HUM, UNH, WLP, GTS, HNT, MOH Credit Suisse initiates; Coventry Health Care initiated outperform with $25 target ; Humana� initiated outperform with $60 target; UnitedHealth initiated outperform with $41 target; WellPoint Health initiated outperform with $68 target; Amerigroup initiated neutral with $42 target; Cigna initiated neutral with $37 target; Centene initiated neutral with $23 target; Triple-S Management initiated neutral with $23 target; Health Net initiated neutral with $30 target; Molina Healthcare initiated neutral with $30 target; Firm initiates managed care industry at overweight.

o CVM CEL-SCI Corp reports Q3 diluted EPS

o MNKD MannKind to offer $100M in convertible notes and 8M shares of common stock through Bank of America Merrill Lynch

o TRBN Trubion Pharmaceuticals reports Q2 EPS

o CPIX Cumberland Pharmaceuticals reports Q2 EPS

o EM Emdeon announces strategic relationship with Noridian

o ULU Uluru, Inc reports Q2 EPS

REAL ESTATE

o CSA Cogdell Spencer enters $40M equity distribution agreement with Citi and KeyBanc

o ACC American Campus 12M share secondary priced at $27 a share through BofA, KeyBanc, Deutsche Bank and JPMorgan; the size of the offering appears to have been increased from 10M shares.

UTILITIES

o EGAS Gas Natural reports Q2 EPS

ASIA TRADING WRAP

Japan

o NKY-0.38%, TPX -0.22%

o NKY fell to 8-mth low with the yen holding onto gains against the dollar as signs of weak economic growth dampened risk appetite. Turnover on the TPX fell to 909.4B yen from 1.14 trillion yen yesterday

o Stocks fell across most sectors led by oil & gas, tech, materials, industrials and health care. Utilities and telecom rose

o Exporters fell on a strong yen: autos -0.43%, CE +0.18%, precision -0.99%

o Shippers +0.17% as the Baltic Dry Index rebounded

o Real estate extended gains, rising another 1.42% after Nikkei reported the number of new condos up for sale in the Tokyo area rose 27.8% YoY yesterday

o Best performing sectors on the TPX: real estate +1.42%, other financing +0.92%, electric power & gas +0.80%; worst performing sectors: mining -3.94%, fishery, agriculture & forestry -1.70%, glass & ceramics -1.39%

Hong Kong

o HSI +0.12%; HSCEI +0.24%

o Stocks rose, erasing losses after government land auctions fetched more than expected. Turnover on the HSI fell to HK$20.56B from HK$21.01B yesterday

o Local properties rose after the government sold Ho Man Tin site at HK$4.1B and Hung Hom site at HK$3.51B, both exceeding top ends of market estimates

o Mainland banks were mixed after report CBRC has ordered limits on lending to property developers with idle land

o Airlines closed mixed after the Civil Aviation Administration of China reported the number of airline passengers in China rose 21% YoY to 25M in July and the volume of cargo and mail carried gained

China

o SHCOMP +0.38%; SZCOMP +0.89%

o Stocks rose across most sectors led by consumer, materials, tech and industrials. Turnover on the SHCOMP rose to 126.12B yuan from 89.18B yuan yesterday

o Media +1.55%. Xinhua reported the government will accelerate the reform and innovation of the culture industry and encourage publications of more popular works

o Banks -0.09% after report China�s banking regulator has ordered limits on lending to property developers with idle land. Real estate +1.27%

o Shippers -0.32% after yesterday�s rally

INVESTMENT BANKING

INVESTMENT BANKING WRAP

M&A

o Potash Corp.�s Board Rejects $130-a-Share BHP Proposal- BBG

o DELL to buy storage company PAR 3PAR for $1.15 billion- Reuters

o Dell Inc (DELL.O) plans to buy data storage company 3PAR Inc (PAR.N) for $1.15 billion in cash, expanding its offering of data center products to compete with rivals like IBM

o Analysts said Dell overpaid for 3PAR, but said the deal brings the company an important new piece of the puzzle.

o http://www.reuters.com/article/idUSN1625151720100816

o ANZ seen deciding KEB bid by mid-Oct- Reuters

o stralia and New Zealand Banking Group is expected to decide by mid-October whether to bid for a majority stake in Korea Exchange Bank , worth about $4 billion at current prices

o Private equity firm Lone Star [LS.UL] owns 51 percent of the 57.3 percent stake on offer with the balance held by Import Export bank of Korea

o http://www.reuters.com/article/idUSSGE67G09520100817

o Vedanta sees no deal hurdles in Cairn deal- Reuters

o Vedanta sees no regulatory hurdles to its purchase of a stake of up to $9.6 billion in Cairn India, as Cairn Energy's chairman headed to New Delhi on Tuesday to push for the deal.

o http://www.reuters.com/article/idUSTRE67G0RC20100817

o EFG-Hermes in Agreement to Purchase Credit Libanais Stake- BBG

o EFG Hermes Holding SAE agreed to acquire a 65 percent interest in Credit Libanais SAL and a call option over an additional 25 percent interest.

o APD Air Products says FTC signs off on ARG Airgas bid- Reuters

o Industrial gas producer Air Products and Chemicals Inc (APD.N) said on Monday it signed a consent degree with the U.S. Federal Trade Commission that would let it acquire Airgas Inc (ARG.N), and the company also extended the tender offer for its rival

o http://www.reuters.com/article/idUSN1617566220100816

o Santander renews merger talks with MTB M&T � FT

o Talks about merging Santander's Sovereign Bank into M&T stalled in May over who would control the enlarged business

o However, the two banks have again started exploring a deal and have sounded out regulators' views

o http://www.reuters.com/article/idUSLDE67G08520100817

o PFE Pfizer deal buzz lifts Biocon to 52-wk high- Economic Times

o Shares of Biocon surged to a 52-week high on Monday on rising speculation that global drug giant Pfizer is in talks with the Bangalore-based firm to buy a stake or strike a marketing alliance.

o http://economictimes.indiatimes.com/markets/stocks/stocks-in-news/Pfizer-deal-buzz-lifts-Biocon-to-52-wk-high/articleshow/6322586.cms

o INTC Intel to buy TXN�s cable modem unit- Reuters

o Intel said on Monday that it would buy the cable modem product line of chip maker Texas Instruments in order to expand its consumer electronics chip business

o Intel did not disclose the terms of the deal, which it expects to close in the fourth quarter, subject to regulatory approval

o http://www.reuters.com/article/idUSN1619090520100816

o Aviva investors call for RSA offer talks- FT

o Leading Aviva shareholders are to press the UK insurer to reconsider its dismissal of a �5bn ($7.8bn) offer from rival RSA for its UK, Ireland and Canada general insurance business.

o Aviva�s board unanimously rejected the RSA approach a little over a week ago as being against the interests of its investors

o http://www.ft.com/cms/s/0/e179ed32-a904-11df-9e4c-00144feabdc0.html

o Sumitomo Mitsui to buy Sony leasing unit � Nikkei

o Under the expected scenario, Sony Finance will spin off its leasing unit into a new company in which Sumitomo Mitsui Finance will then pick up a stake of more than 60%

o http://www.reuters.com/article/idUSSGE67F0KQ20100816

o FLIR to buy sensor technology firm ICx for $274 mln- Reuters

o Thermal imaging and infrared camera maker FLIR Systems Inc (FLIR.O) agreed to buy ICx Technologies Inc (ICXT.O) in a $274 million deal to expand into the high-growth sensing technology market as the U.S. government tightens security and surveillance.

o http://www.reuters.com/article/idUSSGE67F0IN20100816

o Inpex to buy almost 1% more in Azeri-Chirag-Gunashli oil project from DVN Devon Energy - Nikkei

o Mexico telco regulator may rule on Televisa bid- Reuters

o Telecommunications regulators in Mexico reconvened on Monday to continue deliberations over broadcasting giant Televisa's bid to enter the mobile phone business after failing to rule on the issue last week

o http://www.reuters.com/article/idUSN1627235320100816

o AGU Agrium says no specific plans to break up AWB- Reuters

o Agrium Chief Executive Mike Wilson told reporters on a conference call he would look at all of AWB's businesses following the takeover but there were no immediate plans to exit the commodities operations

o http://www.reuters.com/article/idUSSYU01048820100817

o LAN-TAM merger should meet regulatory muster-CEO- Reuters

o Brazilian airline TAM said on Monday it was certain its deal to merge with Chile's LAN would not violate rules restricting foreign investment, after discussing the plans with Brazil's President Luiz Inacio Lula da Silva before announcing the merger

o http://www.reuters.com/article/idUSN1626412220100816

o China Approves Novartis-ACL Alcon Deal- WSJ

o China's Ministry of Commerce approved Novartis AG's acquisition of Alcon, but attached conditions to the deal in the China market�the sixth deal involving foreign companies to be subject to conditions since China adopted its antimonopoly law two years ago.

o http://online.wsj.com/article/SB10001424052748703908704575433003593662286.html?mod=ITP_marketplace_1

o Italian buy-out group shows interest in AS Roma- FT

o Italian private equity company Clessidra will place an offer to acquire AS Roma, one of the country�s top Serie A football clubs, which is owned by the Sensi family through oil storage company Italpetroli

o Italian media have reported that Clessidra will join lender UniCredit and Angelini, a pharma company, to hold equal shares totalling up to 67 per cent of the football team

o http://www.ft.com/cms/s/0/0293c81e-a926-11df-9e4c-00144feabdc0.html

o Iranian Government Sells 5% of Dana Insurance in IPO, TSE Says- BBG

o The Iranian government sold all 5 percent of the shares in Dana Insurance that were made available in an initial public offering, the Tehran Stock Exchange said.

o The government raised 13.7 billion rials ($1.4 million) from more than 5 million Dana shares sold today, the TSE said on its website.

$ RAISING

IPOs

o Nielsen plans to raise $2 billion in IPO- Reuters

o Private equity-owned Nielsen plans to raise up to $2.01 billion through an initial public offering, more than the $1.75 billion it was originally aiming for

o Private equity firms have been lining up companies to take public as they look to exit investments and reap dividends for investors, after a drought that arose because of plunging stock markets

o http://www.reuters.com/article/idUSTRE67F53N20100816

o Wall Street lukewarm to Hulu IPO plans- Reuters

o News that Hulu is talking to investment banks about an IPO that could value it at more than $2 billion is a mouth-watering prospect for bankers. After all, the last huge, true Hollywood public offering was that of DreamWorks Animation in 2004.

o But the news of a possible Hulu IPO, first reported on Monday by the New York Times, was met with caution on Wall Street

o http://www.reuters.com/article/idUSTRE67G12E20100817

o Two China new energy firms eye $2 billion in HK IPOs- Reuters

o The deals are unfolding as China aggressively develops its renewable energy sector and the nation's biggest power firms look to boost investment in the industry to drive future growth.

o Huaneng's renewable energy unit, Huaneng New Energy Industrial Co., plans to raise $1 billion to $1.5 billion in an initial public offering as early as October

o http://www.reuters.com/article/idUSTRE67G14O20100817

o GM mulls "cornerstone" sales in IPO- Reuters

o General Motors is considering selling a chunk of the carmaker's stock to institutions who would commit to buy and hold major stakes as the company prepares for its IPO

o GM is mulling a plan under which sovereign wealth funds or pension funds would serve as "cornerstone investors," a technique often used for large initial public offerings to show that key investors are supporting the deal

o http://www.reuters.com/article/idUSN1617811920100816

PRICINGS

o Initial Offerings

o LRP Legacy Healthcare Properties Trust Inc 8.75m share IPO expected to price 8/19 via Jefferies and Stifel: Price Talk $20

o Secondary Offerings

o No secondaries currently scheduled to price next week

NEWS��

o Energy Capital raises $4.3 bln for fund- Reuters

o Private equity firm Energy Capital said on Monday it has raised $4.3 billion for a fund to focus on investing in fossil and renewable power generation, electric transmission and midstream gas sectors.

o http://www.reuters.com/article/idUSN162616020100816

o BP Pays 3 Times Interest for Loans Amid $50 Billion Spill Costs- BBG

o BP Plc is paying almost three times its 2009 borrowing costs as it seeks to raise money to help it meet about $50 billion in costs for the Gulf of Mexico spill.

o Europe�s second-biggest oil company is marketing $5 billion of five-year loans with interest starting at 2.5 percentage points more than benchmark rates

o Healthcare: MDRX Allscripts prices its 27m share secondary at $17.05/shr

o Healthcare: CO China Cord Blood files $100M mixed securities shelf

o Healthcare: DCTH Delcath Systems announces 5.2M share secondary offering through Canaccord

o Real Estate: �ACC prices its 12m share secondary at $27/shr

o Energy: END Endeavour International offers 9M shares at 1.13/share in private placement

o Energy: TOO Teekay Offshore Partners to offer 5M units through BofA/ML, Citi and UBS

TODAY�S EVENTS

o CONFERENCES

o California Equity Research Southern California Investor Conference - Aug 17, 2010

� 11AM: BLTI , SPPI

� 11:30AM: CNXT

� 12PM: CAMP , CLRT , LPTN.OB

� 12:30PM: ANX , DRAD

� 1PM: NTSC

� 1:30PM: AEMD.OB , NLST

� 2PM: BNVI , OPTR

� 2:30PM: GXDX

� 4:30PM: WDFC

� 6PM: MFLX

� 7PM: CAMH.OB

o CJS Securities �New Ideas� Summer Conference

� 8AM: PSSI

� NTS: CKP , MMSI , NP , ROG

o Conference ConCepts, Inc.Flash Memory Summit - Aug 17, 2010 - Aug 19, 2010

o DisplaySearch Digital Signage Conference - Aug 17, 2010

o Engineering Conferences International: Nanofluids Fundamentals and Applications II Conference - Aug 15, 2010 - Aug 19, 2010

o Global Hunter Securities Healthcare Conference - Aug 17, 2010

� 2PM: SQNM

� 5:30PM: SGYP

� 6:30PM: DSCO

� 7PM: PDLI

o Howe Barnes Hoefer & Arnett, Inc. Bank Conference - Aug 17, 2010

� 9AM: LKFN

� 9:40AM: COLB

� 10:20AM: PVTB

� 11:40AM: WTFC

� 12:20PM: BXS

� 2:30PM: HOMB

� 3:10PM: AMRB

� 3:50PM: OZRK

� 5:10PM: PCBK

� 5:50PM: CCBG

� NTS: CTBI

o Lazard Capital Markets MAGIC Retail & Apparel Conference - Aug 16, 2010 - Aug 18, 2010

� 11AM: HSNI

o Nine Dot Nine Interactive Pvt Ltd.: CTO Forum - Aug 15, 2010 - Aug 18, 2010

o TDWI Business Intelligence Executive Summit - Aug 16, 2010 - Aug 18, 2010

o TDWI World Conference - Aug 15, 2010 - Aug 20, 2010

o Terrapinn Education Outlook Australia Conference - Aug 16, 2010 - Aug 18, 2010

o The Center for Business Intelligence Annual Forum on Tracking State Laws and Aggregate Spend - Aug 16, 2010 - Aug 18, 2010

o TODAY�S EVENTS

o Shareholder Meetings

� SCHS, RSYS, GIGA, AMCC

o SE Analyst Meeting

o MW analyst meeting

o The U.S. Treasury and Housing Department consider what to do with Fannie Mae and Freddie Mac. Among participants: Pimco's Bill Gross

o The Gamescom trade fair begins in Cologne, Germany.

o ECONOMICS

o 0745 ICSC-Goldman Sachs Chain Store Sales Index

o 0830 PPI

o 0830 New Residential Construction - Housing Starts and Building Permits

o 0855 Johnson Redbook Retail Sales Index

o 0915 Industrial Production & Capacity Utilization

o 1630 API Weekly Statistical Bulletin

o 1700 ABC News Consumer Comfort Index

o EARNINGS

o Consumer/Retail/Education

� ANF, TJX, DDS, SKS, LZB, HD, HSYT, WMT, BOBE, JMBA, EMDY, SPU

o Energy

� PPRW, RCON, WH

o Financials

� HMPR, PABK, SSFN, CARY

o Gaming, Lodging, & Leisure

� NYNY

o Healthcare

� IMYN, MNOV, MYRX, SSRX, BLTI, CRDC, HHGM, MDLH

o Industrials/Homebuilders

� EAG, SYPR, CAEI, ENCC, CNOA, GKSR

o Tech/Telecom

� JKHY, LFT, VIT, SGI, A LOT, KTCC, STV, CACI, GSPH, PLAB, ADI, CHCG, CNTF

***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.