Morning @ Cantor
Morning
@ Cantor 8/19
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 up 6.1 points
o
USD up 0.6 in the session
o
The USD tried to maintain a firmer
tone against the European pairs as the session began. Some risk aversion began
to simmer after the London Times reported France’s AAA rating could be in
jeopardy
o
Treasuries: Yields Rise From Near 17-Month Low on Fed Speculation-
BBG
o
U.S.
10-year Treasury yields climbed before a report forecast to show manufacturing
in the Philadelphia area expanded at a faster pace in August, damping
speculation the Federal Reserve will increase bond purchases.
o Commodities
o
Gold down 0.7 to 1230, Crude up 0.6 to 76.02
o Oil May Climb to $100 Next Year on Chinese Demand- BBG
§ Relentless economic growth in China and other
emerging markets will drive crude oil to $100/barrel next year, the head of
commodities research at Morgan Stanley says.
o Overseas Action
o
Europe markets: FTSE 100: (0.28%); DAX: (0.29%); CAC 40: (0.36%)
§ European bourses
opened in positive territory but quickly turned into red over concerns over
France's AAA rating. Better UK retail sales, borrowing data and a higher GDP
reading out of Taiwan helped to stem the losses ahead of the NY morning
o
Asian Markets: Nikkei
+1.32%; Hang Seng +0.24%; Shanghai Composite +0.81%
§
Speculation
over new monetary steps undertaken by the Bank of Japan has been added to
expectation for new fiscal measures seen for much of this week, boosting
Nikkei225 to 1-week high while supporting the greenback against the Yen.- TTN
o
Data:
§
JAPAN JUN ALL INDUSTRY
ACTIVITY INDEX M/M: +0.1% V -0.3%E (3 month low)
§
JAPAN JULY NATIONWIDE
DEPT. SALES Y/Y: -1.4% V -6.0% PRIOR (smallest decline since March 2008); TOKYO
DEPT. STORE SALES Y/Y: -1.7% V -5.5% PRIOR
§
TAIWAN'S 2Q ECONOMY GREW
12.53% FROM YEAR EARLIER
§
U.K. JULY BUDGET DEFICIT
3.17 BLN PNDS; FORECAST 4.8 BLN PNDS
§
U.K. JULY RETAIL SALES
RISE 1.1%; MEDIAN FORECAST 0.3% GAIN
§
Germany July Producer Prices M/M: 0.5% v
0.1%e; Y/Y: 3.7% v 3.3%e
o
Greece: EU Commission says
Greece meets conditions for the next tranche of financial aid- BBG
o
Greece: Austerity measures dragging on the economy-
Der Spiegel
§
Stores
are closing, tax revenues are falling and unemployment has hit an unbelievable
70 percent in some places
o
China increased its
holdings in mortgage bonds including Fannie and Freddie by almost $5.6B in June
- China Daily
o
Booming Brazil Is Like the 'US in the 1950s': Sam Zell- CNBC
§
Brazil
is booming and brimming with business opportunities—like the "US in the
1950s”—billionaire businessman Sam Zell told CNBC Wednesday
o
Japanese
step up foreign bond buys-
FT
§
Japanese
investors are buying foreign bonds at a record pace as excess cash, the strong
yen and low domestic yields prompt a search for higher returns outside Japan.
o
BOJ Said to Be Still
Assessing Economic Impact of Stronger Yen- BBG
o
BoJ emergency meeting
'unlikely'- TTN
o
FRANCE: President Sarkozy
calls crisis meeting to avert loss of sovereign "AAA" rating- London
Times
o
FRANCE MAY CUT SOME TAX
ADVANTAGES ON SAVINGS- LE MONDE
o
FRANCE: RAIL UNIONS MAY
STRIKE IN SEPT. OVER PENSION REFORM- BBG
o
MCD becomes first
foreign firm to sell Yuan bonds in Hong Kong- BBG
§
The
sale “opens up more potential issuers to tap this market, especially those who
have sizable operations in China,”
o
Economics
today:
o
Initial Jobless Claims at 08:30 ET
o
Jul Leading Indicators, Aug
Philadelphia Fed Index at 10:00 ET
o
EIA Natural Gas Inventories at 10:30
ET
o
St. Louis Fed President Bullard
speaks about the US economy at 13:00 ET
- Earnings:
o
Companies
due to report before the bell include: GME, ROST, SHLD, SPLS
o
Companies
due to report after the close include: CRM, DELL, HPQ, INTU, MRVL
o Top M&A
o
BHP
Starts Clock on Potash Bid; No Sign of Rivals- CNBC
§ BHP is focusing on getting regulatory approval for its $39 billion
hostile bid for Potash Corp before trying in earnest to win over the Canadian
company's shareholders
o
S&P says would likely downgrade BHP on Potash bid-
Reuters
o Infineon makes progress in wireless talks- Reuters
§ As a result of this progress, Infineon expects
it will "not take months" before a decision is made on what to do
with the unit
o Lone Star scraps $4 billion KEB stake sale- Reuters
o Top $ Raising
o GM Files for Long-Awaited
IPO- WSJ
§ General Motors filed registration papers for
an IPO, laying the groundwork for the car maker to begin cutting its ties to
the U.S. government, its majority owner.
o AIG Sets Stage for First
Bond Sale Since Bailout-
WSJ
§ American International Group is laying the
groundwork for its first debt offering in two years, in what could be a key
measure of whether investors think the bailed-out insurance giant can stand on
its own and ultimately repay taxpayer funds
o Tata Motors Said to Hire
Citigroup, Credit Suisse to raise funds- BBG
§ Tata Motors, owner of Jaguar and Land Rover,
hired Credit Suisse Group AG and Citigroup Inc. to raise as much as $1 billion
from selling securities
o
Oil-Cleanup
Estimates Draw New Fire-
WSJ
o
The
administration's conclusion that much of the oil released into the Gulf of
Mexico from the Deepwater Horizon spill has disappeared is coming under
additional fire from scientists
o
Barclays
Settlement raises questions of fairness- FT
o
Base III bumps: Proposed updates to
the Basel accord would force U.S. banks with large mortgage servicing
portfolios to take a multibillion-dollar regulatory capital hit- American
Banker
o
Net Neutrallity: talks resume in DC without the FCC or Google- The Hill
o
Goodbye Iraq: Last US Combat Brigade Heads Home- CNBC
o
The
last U.S. combat troops were leaving Iraq on Wednesday night en route to
Kuwait, more than seven years after a U.S.-led invasion toppled Iraqi dictator
Saddam Hussein
o
Tech: RIMM Said to Plan Crusher Tank Technology
for Tablet Computer- BBG
o
Research
In Motion Ltd. is turning to technology used in BMW audio systems and the
Army’s Crusher tank as it tries to distinguish its new tablet computer from
Apple Inc.’s iPad
o
Tech: Facebook Unveils Location Service- WSJ
o
Facebook
unveiled a new way for users to share their physical locations online,
extending the social-networking giant's reach into the real world even as it
opens itself to new potential concerns about privacy.
o
Tech: Lenovo posted a mostly in line Q. Revenues were
better in the Q, but margins drove to the downside. Lenovo also reported share
gains in all regions. Think Brand and Desktops also performed strongly in the Q
o
Tech: Hon Hai to Boost China Work Force to One Million This
Year- WSJ
o
Consumer: PG P&G Chief Wages Offensive Against Rivals, Risks
Profits- WSJ
o
His
missions: To win back ground lost as frugal shoppers have opted for cheaper
alternatives to P&G's goods, and to conquer countries now dominated by
rivals like UN Unilever PLC and CL Colgate-Palmolive
o
Autos: Mazda to Recall 500,000 Cars for Power-Steering Flaw- CNBC
o
The
recalls, estimated at 514,000 vehicles, target the Axela and the Premacy, known
in some markets as the Mazda3 and the Mazda5
o
Auto
lobbying keeps on trucking-
FT
o Gaming: Singapore
Casinos Could Rival Las Vegas by 2012- WSJ
o
The nascent casino sector here could rival that of
the Las Vegas strip in the next two years as Asian gamblers opt for the newer
resorts closer to home
o Outsourcing
to the US?- CNBC
o
Pramod Bhasin, CEO of Indian outsourcing giant G
Genpact, said he will move jobs to America because high US unemployment is
pushing wage rates below that of what he's having to
pay in India.
o
SEC Sues New
Jersey as States' Finances Stir Fears- WSJ (yesterday)
o
The
Securities and Exchange Commission, in its first securities-fraud case against
a state, accused New Jersey of misleading investors about the health of its two
largest state pensions while selling billions of dollars in bonds
o SEC to hire 800 more staff for its extra roles-
FT
o
The Securities and Exchange Commission, the US
market regulator whose role will increase sharply under sweeping financial
reforms about to be signed into law, will need hundreds of new staff to carry
out its expanded responsibilities
o SEC to Vote on Rules
That May Make It Easier to Oust Directors- BBG
o
Commissioners will vote on whether to let investors
nominate board members on company ballots mailed to shareholders before
director elections
o U.S. can no longer
afford housing tax breaks, Experts say- USA Today
o
Federal housing policy offers the wealthiest
Americans billions in tax breaks without delivering much bang for the buck in
increased homeownership
o
"We aren't getting our money's worth,"
Mark Zandi, chief economist of Moody's, said
o
http://www.usatoday.com/money/economy/housing/2010-08-18-housing18_ST_N.htm
o Basel Committee Says
Bank Bond Investors Should Absorb Losses- BBG
o
The Basel Committee on Banking Supervision is
proposing that bond investors should help bear the cost of future bank bailouts as it
seeks to reduce moral hazard and the burden on taxpayers.
o Macro negative:
o
Global
Deficits Will Create $4.5 Trillion in New Debt- CNBC
§
There
is a finite amount of capital, so just to plug fiscal deficits the world has to
issue $4.5 trillion worth of new debt—that assumes the existing debt stock
rolls," Kyle Bass, managing partner of Hayman Capital said. "but where does this $4.5tr worth of new debt come
from?"
o
Leading Index May
Show U.S. Economy to Cool Through Year’s End- BBG
§
The
index of U.S. leading indicators probably climbed in July for the second time
in four months, extending a see-saw pattern that indicates slower growth
through the end of the year, economists said before a report today.
o Macro Positive:
o
US banks
receive Basel III boost- FT
§ Big US banks should be able to meet tighter global capital requirements
without having to raise substantial amounts of new equity, Barclays Capital
o
John Deere
set for crop prices boost- FT
§ Farmers will benefit into next year from the rise in commodity prices
prompted by severe drought in eastern Europe said John Deere
o
Reports
Dispute Claims New Basel Standards Will Hurt Economy-
American Banker
§ Adoption of higher capital and liquidity requirements will not handicap
the global economy in the long term, but it will help stave off economic crises
o Political Stories:
o
Obama says doesn't regret mosque comments- Reuters
o
Poll shows more Americans think Obama is a Muslim- WPO
§
The
number of Americans who believe -- wrongly -- that President Obama is a Muslim
has increased significantly since his inauguration and now account for nearly
20 percent of the nation's population.
o
TGT Target finds itself a bull's-eye, due to political spending- WPO
o
Fewer
incumbent governors are seeking reelection- WPO
§ This year, no fewer than five former governors are seeking to win back
their old jobs
o
Prosecutors
study jurors' remarks to media for keys to retrying Blagojevich-
WPO
§ prosecutors began
preparing for the retrial of Rod Blagojevich on corruption charges, they
wrestled with whether to retool a complex case that left some jurors confused
and others unconvinced that the former Illinois governor had broken the law.
o
Lawmakers
brace for budget deficit update- Reuters
§ Congressional analysts are set to release an authoritative outlook on
budget deficits on Thursday as President Barack Obama tries to ease voter
anxiety about the spending gaps that some fear may thwart efforts to revive the
economy
o
Virginia Democrats Swept In With Obama Now Vulnerable to
Defeat- BBG
o Crisis Watch
o U.N.-led relief effort lacks financial support- WPO
§ The United Nations will convene a
high-level donors meeting Thursday to prod frugal governments to contribute
more to relief efforts in Pakistan, where massive flooding has affected nearly
20 million people but where aid contributions have paled in comparison with
previous large-scale disasters
o China Envoy Discusses Nuclear Talks in North Korea- BBG
§ China’s top envoy to the Korean
Peninsula visited North Korea this week and discussed resuming stalled talks on
the North’s nuclear program amid heightened tensions since the March sinking of
a South Korean warship
o North Korea Confirms Seizure of South Korean Boat- BBG
§ North Korea confirmed it seized a
South Korean fishing boat last week off the communist country’s east coast for
violation of the maritime border
o
Fund Stories
o
States Will
Be Hedge-Fund Police- WSJ
§ Thousands of midsize and smaller hedge funds are about to fall under the
sway of state overseers, and it isn't clear the states are ready
§ The new Dodd-Frank financial law seeks to tighten the leash on hedge-fund
advisers, forcing all of them to register with regulators and undergo exams
o
Why Success Is Much Harder Now for
Hedge Fund Managers- CNBC
§ But with a seesawing market, a volatile currency market in which the euro
has lurched down more than 10% against the dollar, and continuing risk aversion
among many investors that has led to light volumes, that may be a difficult
goal to meet
o
Druckenmiller
exit marks end of era- FT (Yesterday)
§ Stanley Druckenmiller, the hedge fund manager who made the bet that
helped George Soros “break the pound”, announced his retirement on Wednesday,
saying he was disappointed in his performance during this year’s market
volatility
o Equity Recap
o
S&P
futures traded on either side of even during the early morning, as weaker
overseas markets and a dearth of economic news failed to generate any real
movement. The first tick after the cash open (9:30 am) was up 1 point, followed
by a quick 7point fade to what would be the session lows (1084). Once this
level held, futures spent the next 3 ½ hours in an uninterrupted 14 point rally
to yesterday’s highs (1098.40). This defined the entire day’s trading range (an
“inside” day, as the entire session was spent within yesterday’s range). The balance of the session was
spent in retreat as we once again failed to take out the overhead resistance at
1100. Amidst talk of heavy call selling right near the bell in the August
S&P 1100’s (reportedly 10k contracts which would equal 50k eminis),
equities faded all the way back to even on the day (S&P cash up 1.20;
S&P Futures off 2).
o
There
was a bit of the de risking theme at work today as the Dollar and the Yen
rallied, and Oil fell (weak API report). Countering this weakness was renewed
focus on takeover activity, as Citi called for further consolidation in the
Homebuilding sector, mentioning BZH (up 6.4%), MTH (up 5.1%) and RYL (up 3.8%)
as specific takeover candidates. Building on yesterday’s 28% rally, POT moved
up another 3.3% to $147.93, as Macquarie said BHP’s offer could increase to
$165 a share. They also said MOS (up 4.1%)could be a
target. So far this year, global takeovers have totaled $1.26T, up 20% from the
same time last year.
o
The
market put in another day of green but again felt softer near
day’s end and they were offered lower after the bell on some spy trade
that was done after which it was felt the dealer was long the call so had to short the futures to hedge himself.
Whatever, the fact reminds, they are tired and although they can’t seem to
break them out of the range on the up side, they also can’t seem to take them
out and shoot them either, with 1,088 our 50 day holding for us and below 1,071
being solid below. The volume continues to be anemic with the traditionally slow vacation period,
where people are getting in their time with their kids before they go back to
school. The sentiment overseas has been
a tad better this week with the PIS in pigs auctions having gone somewhat better than expected but there is
still a fair amount of skepticism out there and the comments from the likes of
DE remind people that we are not out of the woods and all that glitters isn’t
gold, you also had retail so far this week stink which reminds us the consumer is still tapped
o
Billy
Clark and Team
o
Convertible Wrap
o
Trace
volumes remain light with summer vacations in full force now. However, short
maturity paper is back in vogue with names trading ½ to 2 points higher.
Refi’s, tenders, takeovers have made this a profitable trade over the past
several weeks. Names like CRZO, CMED, HOLX, SNDK are
all higher over the past few days. Yesterday Newell (NWL) announce
a parity + 16 pt bid for their $325MM issue. Just the latest in a string of
tenders. Today, GM announced their IPO and there were stories on the tape that
they may be issuing a Convertible Preferred with the IPO. Mannkind (MNKD) is
expected to price their $100MM Convertible bond tonight for tomorrow’s trade
date. The company is doing a total return swap on a common deal that will
facilitate a borrow for Convertible Arb funds that
want to participate on the deal. Sandisk (SNDK) announced a $1.0 billion
Convertible deal due 2017 tonight after the close. One of the uses of proceeds
could be to buy back the old Converts as per the press release. No price talk yet.
o
Thomas
Fazio
o
Rates Commentary
o
Today's
Asian session traded around and above our 3PM Tuesday closes, inching higher on
dip-buying supported by fast-money accounts and influenced by a WSJ article
reporting banks are facing a new round of losses from loans made just before
the financial crisis. Word of more Chinese outflows from USTs (in unison with
Russia?) hit the street although this may have already been largely priced
following the recent TICS data and reports of China selling dollars to buy S.
Korean bonds.
o
The
US morning session was quiet with no drastic movements as Dow futures showed a
positive reading until…they went negative, and the market found an aggressive
bid leading the long-end of the curve down as much as 8bp before the bell rang
on Wall St. There was buzz of large 2s/Bonds flatteners done on a 1:1 basis
causing 2s/Bonds to flatten by nearly 6bp. Also adding to this was OTR buying
in the bond sector along with STRIPS buying.
o
10s/Bonds
were at 113bp this morning and are currently trading below 110bp for 3+bp of
long-end flattening. Another day of flattening, another day to remind us that
people want yield and are extending out the curve to get it. The massive Bond
flattening slowed and eventually the 2s - 10s curve
closed unchanged on the day as US stocks found positive ground.
o
The
Fed will come in for its 2nd Purchase of QE 2.0 – buying Treasury notes of
August 15th, 2016 through May 15th, 2020 maturity. In 12 out of the 37 eligible
issues, the Fed is at or within 5% of its 35% maximum ownership. Just this past Tuesday in its 1st round of
purchasing, the Fed took 2.5BB from 21BB offered (an offer-to-cover of 8.4).
o
Tsy
announcements tomorrow for 2, 5, and 7yr auction sizes along with a reopening
of 30yr TIPS. Our desk is looking for $1BB cuts in the 2 and 5yr auctions, the
7yr auction size unchanged, and $7BB of 30yr TIPS reopening
o
Primary
Dealer
SECTOR NEWS WITH MACRO IMPLICATIONS
o
ESV Ensco PLC downgraded
to neutral from buy at Goldman Sachs; target remains $46. The firm cites
limited upside to pricing for standard jackups as well as valuation.
o
AXAS Abraxas Petroleum
signed JV agreement with Blue Stone Oil & Gas to develop the Eagle Ford
Shale play
o
DQ Daqo New Energy
files amended F-1; to offer $100M of ADSs through Morgan Stanley
o
FTK Flotek Industries
selects Chairman John Chisholm to serve as president
o
GNK Genco Shipping &
Trading has taken delivery of the Genco Aquitaine
o
AAPL Pre-orders for
iPhone 4 make KT Corp site crash - Korea Herald
o
HPQ Hewlett-Packard
retains Spencer Stuart to handle CEO search
o
ROVI Rovi Corp initiated
neutral at Goldman Sachs; 6-month target is $48.
o
NTES Netease.com reports
Q2 earnings per ADS
o
ELON Echelon to announce
new product for the smart grid on 8-Sep
o
HUGH Hughes unit wins
$58.7M as only national satellite internet provider under US Recovery Act
broadband program
o
AMCC AppliedMicro agrees
to acquire TPACK for emerging OTN opportunities; AppliedMicro will host a
conference call with analysts before the opening of market at 8:30 ET, August
19; 866.277.1181, passcode 78250794
o
HSFT HiSoft Technology
reports Q2 Non-GAAP EPADS
o
ATHR Atheros
Communications chairman John Hennessy to retire, effective 30-Sep
o
RSH RadioShack's board
has increased the company's share repurchase authorization to $500M from $290M
o
HTCO HickoryTech receives
$16.8M broadband stimulus grant
o
BITS Bitstream holder
Columbia Pacific urges company to explore sale
o
BRCD Brocade narrows f10
non-GAAP EPS guidance
o
SNPS Synopsys reports Q3
EPS
o
IMOS Chipmos Technologies
reports Q2 EPS
o
OTEX Open Text reports Q4
adjusted EPS
o
SNDK SanDisk to offer $1B
of convertible senior notes through Morgan Stanley and Goldman Sachs
o
BRCD Brocade reports Q3
EPS
o
FN Fabrinet reports Q4
EPS
o
GTEC GTEC secures $6M
contract to support NRL plasma research initiatives
o
AMAT Applied Materials
reports Q3 EPS
o
NTAP NetApp reports Q1
EPS
o
MGN Mines Management
reports Q2 EPS
o
SCOK SinoCoking Coal and
Coke shares end the day down (27.3%)
o
BRK.A Berkshire Hathaway's
Burlington Northern reports weekly carloads (week ended 14-Aug); total carloads
and intermodal +14.3% to 185,718; last week +10.2%.
o
WAL Western Alliance
Bancorp to offer 7M shares through Keefe, Bruyette
o
PABK Pab Bankshares
withdraws registration statement
o
SPLS Staples reports
Q3 lower than estimates and guided lower
o
SHLD Sears
top line misses, but EPS looks a penny better. The number may not be
comparable.
o
SSI Stage Stores in line to better Q. better margins
helped to drive a bottom line beat. Q3 guidance looks in line and Q4 guidnace
is higher.
o
CATM Cardtronics 7M share
secondary priced at $14.00 a share through Piper Jaffray and UBS
o
CRI Barron's Weekday
Trader is positive on Carter Holdings
o
FLXS Flexsteel Industries
reports Q4 EPS
o
HOTT Hot Topic guides Q3 revenues
to range $183-187M -- conf. call
o
AFCE AFC Enterprises
reports Q2 EPS
o
LTD Limited Brands
reports Q2 adjusted EPS
o
CEDU ChinaEdu reports Q2
EPADS
o
JBSS John Sanfilippo
& Son reports Q4 EPS
o
GYMB Gymboree reports Q2
EPS
o
DL China Distance
Education Holdings reports Q3 EPS
o
PETM PetSmart reports Q2
EPS
o
HOTT Hot Topic reports Q2
EPS
o
BIIB Biogen Idec updates
Tysabri PML cases
o
CORT, RDEA Global Hunter Securities initiates; Corcept
Therapeutics initiated buy with $5 target
o
Ardea
Biosciences initiated buy with $27 target
o
ANGN Angeion announces
agreement with 7.2% shareholder BlueLine Capital
o
MEDQ MedQuist and Kaiser
entered settlement agreement on 12-Aug (8-K filing)
o
OMI Owens & Minor
awarded DLA contract for medical supplies and services
o
ACHN Achillion reports
$50M private placement; proceeds to fund expanding pipeline of hcv candidates;
conf call 8.19 at 10:00 ET:Dial-in: (866) 743-9944 or (720) 545-0058 (for
international participants) Passcode: 9701454
o
EW Edwards Lifesciences
initiated buy at Madison Williams and Company; target is $70.
o
TCM Tongjitang Chinese
Medicines reports Q2 EPADS
o
CRA Celera publishes
review article on the KIF6 gene variant as a predictor of risk of coronary
heart disease
UTILITIES
o
ITC ITC Holdings
increases quarterly dividend by 4.7% to $0.335 from $0.32
o
CNI Canadian National
Railway reports weekly carloads (week ended 14-Aug); total carloads +17.5% to
93,165; last week's increase was +26.2%.
o Energy
o
Royal Dutch -0.6%. May invest $50bln over next decade in Australia (BBG)
o
Soco + 1.4%. Drilling update.
o
Dana Pete +0.6%..Press speculates KNOC
to bid.(Daily TelegraphUK)
o Mining
o
Billiton (+1%). S&P review rating.
o
VoestAlpine + 0.6%, Numbers better than
expected, guide higher.
INVESTMENT
BANKING
INVESTMENT BANKING
WRAP
o BHP starts clock on Potash Corp bid; no sign of rivals- Reuters
o BHP Billiton is focusing on getting regulatory
approval for its $39 billion hostile bid for Potash Corp before trying in
earnest to win over the Canadian company's shareholders
o http://www.reuters.com/article/idUSSGE67I04920100819
o S&P says would likely downgrade BHP on Potash bid- Reuters
o "In our opinion, BHP Billiton's financial
flexibility could be strained by its plans to use cash and debt to fund the
proposed Potash Corp acquisition,"
o http://www.reuters.com/article/idUSSYU01051020100819
o Hostile Potash bid threatens Canada’s grip on export price- globe and
Mail
o This poses a threat to Canpotex, the marketing
arm of Canada’s major potash companies, which plays a major role in controlling
the supply and the price of a commodity that is a key ingredient in the
fertilizer that farmers use around the world to grow their crops.
o Speculation there may be a US ITV bid- Globe & Mail
o They rose 1.85p, or 3.7 per cent, to 52.4p on
hefty turnover of 28million shares amid talk of a US cash bid worth around
£3.7billion, or 95p a share
o Dealers heard it through the City grapevine
that a leading UK broker was bidding for large lines of stock on behalf of an
American client and took the view that corporate activity could be just around
the corner
o Infineon makes progress in wireless talks- Reuters
o As a result of this progress, Infineon expects
it will "not take months" before a decision is made on what to do
with the unit,
o http://www.reuters.com/article/idUSLDE67H1TF20100818
o RIMM Shops for Mobile Ad Network- WSJ
o In recent months, the Canadian device maker
has held talks with Baltimore-based mobile ad network Millennial Media about a
potential acquisition
o http://online.wsj.com/article/SB10001424052748703649004575438073621361124.html?mod=googlenews_wsj
o Speculation KNOC may launch a dawn raid at £18 per share for Dana
Petroleum- SA
o Li eyes bid for British high-speed rail firm- SCMP
o Just weeks after announcing a
multibillion-pound deal to buy British electricity networks, Li Ka-shing has
turned his attention to the country's railways
o http://www.scmp.com/portal/site/SCMP/menuitem.2c913216495213d5df646910cba0a0a0/
o Lone Star scraps $4 billion KEB stake sale- Reuters
o U.S. private equity firm Lone Star has decided
to scrap its plan to sell a majority stake in Korea Exchange Bank worth $4
billion at current market price because of weak demand from potential investors
o http://www.reuters.com/article/idUSTRE67H17120100818
o NOK Nokia trading higher on report in Finnish paper Kauppalehti that it
could face a takeover bid- SA
o Avista Capital says to buy INC Research for $600 mln- Bloomberg
o Private Equity firm Avista Capital Partners
and Ontario Teachers' Pension Plan have agreed to buy INC Research, a drug
development services provider, for about $600 million
o http://www.reuters.com/article/idUSSGE67I04O20100819
o MA MasterCard to buy DataCash for $520 mln- Reuters
o MasterCard said it agreed to buy British
payment service provider DataCash Group Plc for about 333 million pounds ($520
million) in cash to expand its e-commerce business
o http://www.reuters.com/article/idUSSGE67I0AA20100819
o China's Angang parent puts US plans on hold after protest- Reuters
o Chen Ming, vice-chairman of Hong Kong- and
Shenzhen-listed Angang, said his company's parent had not yet invested in the
project, so it would not incur any loss from the development
o http://www.reuters.com/article/idUSHKM00002920100819
o K+S, Yara unlikely to see takeover bonanza- Reuters
o Analysts largely dismissed speculation that
Western Europe's top fertilizer companies K+S (SDFG.DE) and Yara (YAR.OL) could
end up on the radars of mining giant BHP Billiton (BHP.AX), which has launched
a hostile bid for Potash Corp (POT.TO).
o http://www.reuters.com/article/idUSTRE67H2YZ20100818
o Sony unit offers to buy MBK Taiwan TV firm- Commercial times
o So-Net, the Internet unit of Japan's Sony Corp
(6758.T), is offering T$6 billion ($188 million) for a Taiwan cable TV firm
being sold by private equity firm MBK Partners
o http://www.reuters.com/article/idUSTRE67I0E420100819
IPOs
o GM files for IPO and plans dual listing- Reuters
o General Motors took a big step toward repaying
a controversial taxpayer-funded bailout by declaring plans for a landmark stock
offering that represents a critical test for the Obama administration
o http://www.reuters.com/article/idUSTRE67B4JW20100819
o Quark Pharma inks drug deal with NVS Novartis, eyes IPO- Reuters
o Privately held Quark Pharmaceuticals Inc
licensed its experimental kidney drug to Swiss giant Novartis for up to $680
million and its CEO said it was looking to go public later this year, three
years after a previous attempt to list on Nasdaq
failed.
o http://www.reuters.com/article/idUSSGE67H0I120100818
o Philosopher banker credited with Everbright IPO- reuters
o A poetic touch was added to China Everbright
Bank's trading debut on Wednesday in Shanghai as Chairman Tang Shuangning
recited a poem by former Chinese leader Mao Zedong to mark the occasion
o http://www.reuters.com/article/idUSTRE67H1UH20100818
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
CATM Cardtronics 7M
share secondary priced at $14.00 a share through Piper Jaffray and UBS
o
MNKD MannKind 9M share
secondary offering priced at $5.55 through Bank of America Merrill Lynch
NEWS
o
o
Tech: SNDK SanDisk to offer $1B of convertible senior notes
through Morgan Stanley and Goldman Sachs
o
Financials: WAL
Western Alliance Bancorp to offer 7M shares through Keefe, Bruyette
o
Financials: PABK
Pab Bankshares withdraws registration statement
o
Healthcare: ACHN
Achillion reports $50M private placement
o CONFERENCES
o
Bankhaus
Lampe KG Retail and Consumption Conference
§ NTS: CWC.F, GFK.F
o
Conference
ConCepts, Inc.Flash Memory Summit - Aug 17, 2010 - Aug 19, 2010
o
DisplaySearch
Emerging Display Technologies Conference - Aug 19, 2010
o
Engineering
Conferences International: Nanofluids Fundamentals and Applications II
Conference Aug 15, 2010 - Aug 19, 2010
o
TDWI
World Conference - Aug 15, 2010 - Aug 20, 2010
o
The
MoneyShow San Francisco - Aug 19, 2010 - Aug 21, 2010
§ NTS: LINE , VALE
o TODAY’S EVENTS
o
Shareholder
Meetings
§
SNKI,
ICON, TSTF, HKN, FMNB
o
CAT
analyst meeting
o
VSEA
analyst meeting
o
Switzerland holds talks on the future of the country
as a financial center- Barron’s
o ECONOMICS
o
0830
Initial Jobless Claims
o
1000
Philadelphia Fed Index
o
1000
leading Indicators
o EARNINGS
o Autos
·
AUTC, CRMT
o Consumer/Retail/Education
·
ARO,
BKE, CATO, CMRG, FL, GPS, PLCE, ROST, SMRT, SSI, WTSLA, ZUMZ, GME, MSN, BONT
SHLD, DLTR, CPWM, WSM, SCHS, DKS, SPLS, TWMC, NED, TW, FLO, LANC, NXTH, DLA
o
Energy
·
NPWZ,
OMNI
o Financials
·
UBOH,
CZWI, WHLM, BDCG
o Healthcare
·
ECOS,
GENM, IBPM, XCHO, INO, NPHC, ROME, SHMR, PZZ, ADMP
o Industrials/Homebuilders
·
MAG,
YGE, BRCO, NDSN, WEMU
o Media
·
HPOL,
ATV, GSOL
o
Tech/Telecom
·
SCSC,
CRM, INTU, MENT, DELL, HPQ, PRCP, ZIGO, VRGY, MRVL, ANTS, TECD, GFGU, SITO,
SPBU, VCSY, FLWS, ETLO, JRJC, KEYO, BCSI
o Transportation
·
OCNF
***All
eco data from Bloomberg and DJ
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investment decision, should not be considered a recommendation by Cantor or any
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