Cantor Morning News | Morning @ Cantor

o The U.S. Court of Appeals for the 2nd Circuit denied a request from the Federal Reserve to reconsider a ruling that requires the central bank to identify banks that received loans after the collapse of Bear Stearns. The Fed has seven days to disclose the information, unless the court stays its ruling. The Fed has argued that disclosure of the information would stigmatize the borrowers, causing them "severe and irreparable competitive injury." Bloomberg (23 Aug.)

o New Fees Eyed for Mortgage Industry � WSJ link

o The Obama administration may propose that any federal backing of mortgages be paid for through fees on the lending industry.

o Weak US recovery is becoming weaker:� The Telegraph's business editor Evans-Pritchard noted that according to Bank of America's chief North American economist Ethan Harris, early data points for August suggest that the already weak US recovery is becoming weaker. The weak recovery raises the risk of a double dip recession. Also the political disputes by Democrats and Republicans have the potential to worsen the US economy.

o Pros: If S&P Breaks 1010, Back To 878? � CNBC link

o Avoid Treasurys, They�ve Had 19-Year Rally: Marc Faber � CNBC link

o S&P 500 earnings estimates for 2011 results continue to fall

o Although second-quarter profit came in strong, with S&P 500-stock index companies posting 38% year-on-year earnings growth, estimates for 2011 results continue to fall.

o �Analysts now expect 14.7% earnings growth for S&P 500 companies next year, according to Thomson Reuters. In April, that figure stood at about 20%; in January, it was nearly 25%. So instead of gathering strength, as was expected, earnings look poised for a renewed slowdown.

Economy and austerity could hit EU credit ratings, Moody's warns

o EU nations that have launched austerity measures and are dealing with slow economic growth might face credit rating issues, Moody's Investors Service said. "Given the magnitude of the fiscal challenge and the need to sustain tight fiscal policy for several years, the risks to economic growth are clearly a downside risk for sovereign ratings," Moody's said in a report. Reuters (23 Aug.)

o US States:

o U.S. State Treasurers Project Fiscal Squeeze as Revenue Revives � BBG

� U.S. states will confront budget deficits through next year even as tax revenue rebounds after a slide of 15 months, triggered by the longest recession in seven decades, according to treasurers from around the country

� Tax collections are showing signs of improving, though not by enough to prevent the need for further cuts in state spending, the officials said, speaking in individual interviews while at a meeting of the National Association of State Treasurers in Williamsburg, Virginia

� �I think we�ve turned the corner,� said Michigan Treasurer Robert Kleine, who said his state expects a deficit of $1 billion for the budget year through September 2012. �Even when the economy improves, we�re still going to have some pretty serious budget problems,� he said. �We�re encouraged, but we still have a lot of ways to go.�

o California Bill Would Force State Agencies to Take IOU Payments - BBG

� California may start handing out warrants to pay some bills within two weeks to conserve cash, Controller John Chiang, a Democrat, has said

o China� interbank debt market:�� Citigroup, HSBC, CIMB Seek China Bonds License as Market Opens - BBG

� Citigroup, HSBC� Plc and CIMB Group plan to apply to invest in yuan bonds following the People�s Bank of China decision to open up its interbank debt market

o European Banks May Face More Frequent Stress Tests, Rehn Says - BBG

o Macro negative:

o The construction sector led the declines in Europe, largely reflecting disappointing results and a profit warning from CRH, which revealed a particularly weak performance in the U.S

o "European economic indicators have been more encouraging although uncertainties remain,"� "However, concerns relating to the recovery in the U.S. have increased with a continuing flow of disappointing economic data." � per company�

o CRH slumps 14%.

� Read-across from these results is evident and Compagnie de Saint-Gobain is -2.9%. Wolseley -3.9%, FCC -2.3%.� HeidelbergCement, the world�s third-largest cement maker, sank more than 4 percent

o Antofagasta (ANTO.LN) lowering full year production guidance.

o BIG� Big Lots reports, guides OK

o Energy:� WSJ: Offshore Oil Regulator Opens Door To Easing Moratorium

o S&P New Share Changes Announced��

o S&P previously announced as� TBA will be effective after the close on Tuesday, August, 24

o �400

o MDRX added

o AFFX deleted

o 600

o AFFX added

o ECLP deleted

o Cosco Pacific Ltd., Asia�s third- largest container-terminal operator, said profit in the first- half rose 82 percent on recovering world trade and the sale of a stake in a logistics venture.� BBG

o Foster�s fell 4.3 percent, after reporting, and Mondays 8% rise

o Foster�s Group Ltd., Australia�s biggest beer and wine maker, posted a second-half loss after a A$1.2 billion ($1.1 billion) writedown on its wine division, which the company may spin off next year.

o �Operationally, the result was better than expected,�. �But the market was probably looking for more details on any approaches they may have had from potential acquirers.� � BBG

o The stock surged 7.6 percent yesterday, the most since August 2006, after the Sunday Times reported SABMiller may make a 7 billion pound ($11 billion) bid for its beer division.

o Advertising:� WPP, the world's largest marketing company by revenue, fell 2%, in a muted response to its results

o WPP is Bullish on US!� - per BBG

o Advertising margins were lower than expected

o Organic growth of �almost 5%� in 2Q was slightly disappointing (consensus 5%+)

o Overall company Outlook OK

o U.K. house builder :� Persimmon Restores Dividend As Earnings Soar - DJ

o its shares up� 1.9%, making it one of the biggest gainers in the FTSE 250 index

o Persimmon PLC (PSN.LN) Tuesday announced a sharp rise in first-half earnings as building completions jumped, selling prices climbed and it booked a gain from the revaluation of its inventory, allowing the U.K. house builder to restore its interim dividend even though it maintained a cautious outlook.

o Political Stories:

o For Obama, a chance to regain some political momentum � WP link

� The White House faces a delicate messaging task next week as President Obama seeks to bring one foreign engagement to an end while making a new bid for American influence abroad.

o U.S. Funding of Embryonic Stem Cell Research Halted � BBG

� U.S. District Judge Royce Lamberth in Washington issued an order temporarily stopping the U.S. Health & Human Services Department and the National Institutes for Health from conducting the studies. The judge cited the still-in-force 1996 Dickey-Wicker Amendment

o AFP)--Former U.S. president Jimmy Carter plans to visit North Korea soon on a mission to secure the release of a 30-year-old American man jailed there in April, Foreign Policy magazine said on Monday.

o South Korea Defense Ministry to increase surveillance of North Korea military activity such as artillery fire ; Japan may take part in South Korea naval exercises in October � Nikkei

o Mexico Gunbattle Spurs U.S. Warning � WSJ link

o U.S. officials in Monterrey warned local U.S. citizens that Friday's shootout in front of the American School Foundation stemmed from a failed kidnapping, and advised personnel to keep their children out of school

o Fund Stories

o Taleb's Pessimism Lures CIC Interest � WSJ link

� The Chinese sovereign-wealth fund is in talks with Universa Investments about investing in the hedge fund, a downside hedge for China, whose economy depends on global growth.

CANTOR TRADING RECAP

o Equity Recap

o We came in with the overseas markets helping to push the futures higher, M&A action has been aggressive as of late helping the market along as well � but investors are looking at a bigger picture, and seeing a market that has all the signs of no real support. We still lack a solid base to make people want to buy into this, companies are still not hiring and jobs numbers have been dismal, tensions with Iran are still looming, earnings are over for the most part and until we get a string of positive news and good economic numbers we can expect to see the choppy trading going forward. We saw some big technical damage today...close under 1070 spx...outside reversal day for QQQQ and xlb (materials) ...very close to outside reversal on IWM (small caps) and xlf (fins) - anything could happen overnight, but if futures are ugly and the open tomorrow follows suit, might be interesting to take a long flyer around 1056/1060 � (also look for existing home sales to decline significantly in July with the end of the home buyer tax credit). Internally volume was light as goes the summer, we saw some value buyers picking their spots lightly with no rush to get done, had hedgies shorting, and the rest of the pack lightening up on positions � haven�t been seeing panic selling, but you can see guys looking to take risk off the book as of late. Buy and sell names here were even, the breadth of the market had 1 � declining issues for every 1 advancing. Technically we see support at 1064 low from Friday, then BIG at 1056.

o Billy Clark and Team

o Investment grade Recap

o IG spreads were mixed to marginally tighter in more situational trading as desks on the sell side and buy side were contending with the last full week of August. While it was not a lot, just shy of $1BN in new issuance was worth noting as Aa3/A+ San Diego first mortgage bonds (SRE) came +88 after original talk of high-90s and tightened marginally as we were active in fmb long paper generically in the +90s and Pacificorp in the low-100s seems too far back. Of more importance was the first 100yr bond in five years as Norfolk Southern (Baa1/BBB+) came with the reopening of NSC 6's of 2105 coming at ~230, about 90bps behind the ~30pt premium 37s, figure that should equate to just over 100bps behind a par 30yr, we have traded a variety of 100yr paper, mostly in the 75bp concession to 30yr context...make sure to call the desk on all 100yr axes...that deal more than anything else shows how far we have come from the depths of the crisis and exemplifies the reach for yield. No question that better buyers remain overall as we were active in a variety of names - still focused on moving blocks of PPG 18 and TE 15

o Michael Salemo

o CMBS recap

o Had to rewrite the recap after some late day trades.� Was going to say today was dead but ended up trading several positions late in the day.� All of it high quality '05/'06 lcfs despite the high dollar prices.� We dont see much shortening risk but more ext risk so the premium dollar should not be a big issue.� Most the interest we saw was from buy and hold type accounts looking for safe paper. Any sellers of LBUBS 06-C6 A4s or WBCMT 06-C25 A5s, like to reload.

o Selling was anemic with a paltry $75mm in BWICs including $20mm of AMs that didnt trade and $36mm of a 0.8yr.� Clean AM paper continues to have strong demand from a diverse buyer base- best bid on the WBCMT 06-C29s was $92-01 and $94-24 on LBUBS 06-C1 AMs- both a spread differential to the dupers of ~270bps which is strong.

o As far as the basis, GG10s had been trading in the 330-350 range for a few weeks.� They punched through the range for a few days last week and even touched +285 for a few minuets in the short covering frenzy on Thursday. Finished 5bps tighter on the day (+325/$103-16) while IG and HY CDS was essentially unchanged.� Short term neutral on the basis but still think it will be significantly tighter by year end assuming the double dip is not a realty (a big assumption).� Under a slow growth scenario would think CMBS offers great value vs equities and cash.� Seems that a decent portion of the mkt needs to adjust to the lower yields currently in the mkt

o 1. NS1) MarketWatch: Boston Properties to buy NYC 510 Madison: This article states $801 ft but WSJ has ~$1,000 ft when you take into account closing costs and junior debt.� New Class A office property in an A location.

o Yes vacant but we assume they have a tenant lined up.� Only 320k sq ft so a boutique property.� Regardless, another example of prime real esate still trades well.

o BMP) Moody's: Maturing five-year loans in CMBS show mixed performance:� Nearly 63% of 5ys that matured between 1/10 and 7/10 paid off in full.� Better than I would have thought.� '06 and '07 deals will not be so lucky over the next two years.

o GEORDIE WALKER

o Convertible Wrap

o other dull trading session with many investors and sell side professionals away on holiday. SNDK priced their $1.0 billion deal on Friday which continued to trade below par today, comprising about 10% of the total trace volume. Advance Micro (AMD) successfully completed an $800MM tender for their 6% convertibles. This and other tenders continue to provide a bid for short term paper in our market. Tom Fazio: ADCT 3.5%-17, CRZO 4.375-28, DOLE 7% pfd, MOH 3.75%-14, NIHD 3.125%-12, SNDK 1%-13,

o Thomas Fazio

o Rates Commentary

o The Treasury market opened up the New York session off its overnight levels led down by the long end with the pending $7Bln 30 year TIPS auction this afternoon. Treasuries quickly found their lows in the midmorning bouncing off these levels on short covering, real money buying in the intermediate sectors and equities unable to keep their overnight/early gains. The UST market remained quiet ahead of today's $7Bln 30 year TIPS auction with mixed views leading in. Participants attempted to cheapen the issue up throughout the morning but to little avail as it came near the highs of the day at 1.768% through by 1.2bps, 38.9% allotted to indirect bidders 2.78 bid to cover. 30 year breakevens were out 2.9bps on the day (in roughly 2.5bps prior to the auction).

o The quiet summer feel was in full force throughout the afternoon session with the market trading range bound into the close. At 3PM benchmark Treasuries finished mixed with the 5 year the best performer and the 30 year the worst.

o The calendar is quite busy for the remainder of the week with $112Bln of supply over the next three days in 2s, 5s, 7s, two Fed purchases, the anticipated weekly jobless claims on Thursday after last weeks 500K reading and finally on Friday GDP and Bernanke's speech in Jackson Hole.

o Primary Dealer

SECTOR NEWS WITH MACRO IMPLICATIONS

ENERGY

o TSL Trina Solar reports, guides better

o WSJ: Offshore Oil Regulator Opens Door To Easing Moratorium

� Dow Jones)- The offshore-drilling oversight chief said on Monday that the U.S. might partially lift a deepwater-drilling moratorium before the ban expires on Nov. 30, the latest

� http://news.morningstar.com/newsnet/ViewNews.aspx?article=/DJ/201008231814DOWJONESDJONLINE000264_univ.xml

o Low gasoline price reflects pessimism about the U.S. recovery

� The price of gasoline on the U.S. commodity market has dropped to its lowest level in eight months, a sign that traders and consumers are taking a more negative view of where the economy is headed, according to The Washington Post. Refiners anticipated a surge in gasoline sales this summer, but it never materialized. High unemployment and diminished consumer confidence have discouraged Americans from traveling and spending, economists said. The Washington Post (24 Aug.) , Bloomberg (23 Aug.)

o System for Spill Claims Is Assailed � WSJ link

� Kenneth Feinberg's effort to set the terms for handing out BP money to Gulf oil spill victims came under attack from state officials and lawyers who said he planned to be too restrictive in deciding who gets paid.

o NBR Nabors Industries files mixed securities shelf of indeterminate size

o Solar stocks trading lower on French plan to cut subsidies by 12% effective 1-Sept for systems above 3kW (SA)

o BP: Findings from an internal audit show that there were 390 overdue maintenance problems on the Horizon rig when it was authorized to be used in the Gulf - FT

o Cairn Energy Plc fell 2.1 percent to 454.5 pence after saying it discovered gas off the coast of Greenland. The U.K.explorer also said its first-half loss narrowed to $12.6 million from $61.6 million a year earlier � BBG

o The Libyan Investment Authority will not be among the sovereign wealth funds looking to take a stake in Enel Green Power, Il Sole 24 Ore reported

o SXL Sunoco Logistics common unit offering priced at $74.45 through Barclays and UBS

o FTO Frontier Oil says it expects to resume production at Cheyenne Refinery later this week

o SM SM Energy planning to raise $300M-$500M through divestitures

o SXL Sunoco Logistics announces 1.75M unit offering through Barclays and UBS

o Sinopec considers expanding its overseas oil, gas operations - South China Morning Post

INDUSTRIALS

o The construction sector led the declines in Europe, largely reflecting disappointing results and a profit warning from CRH, which revealed a particularly weak performance in the U.S

� CRH slumps 14%. Read-across from these results is evident and Compagnie de Saint-Gobain is -2.9%. Wolseley -3.9%, FCC -2.3%.

o CRH Chief Executive Officer Myles Lee said in a statement the second-half profitability in Americas Materials will be lower than last year, compared with the company's previous indication of an improved second half

o GE US District Court denies GE's motion to dismiss Mitsubishi litigation

o NLC Nalco Holding announces acquisition of Fabrication Technologies assets

o GNK Genco Shipping & Trading limited takes delivery of supramax vessel��

o KBR KBR awarded contract by Asian Development Bank to develop water sector study in Samoa

o DAC Danaos Corporation adds two newly built vessels to fleet

o LMT: - Senior Lockheed Martin Corp (LMT.N) executives and Pentagon officials met on Monday to continue protracted negotiations about a fourth batch of 32 F-35 fighter jets that company executives had expected to wrap up over a month ago, Reuters

TECH/MEDIA/TELECOM

o HPQ, DELL, PAR: HP and Dell in a bidding war for 3Par

o HPQ sparks bidding war with Dell over PAR 3PAR- Reuters

o HP offered to pay $1.6 billion for 3PAR, topping rival Dell Inc's bid by a third in a surprise move http://www.reuters.com/article/idUSN2318868520100823

o PAR 3Par reportedly recommended holders accept DELL�s offer, but it looks to have been before HPQ�s offer- SA

o DELL Said to Plan Sweetened PAR 3Par Offer After HPQ Counteroffers- BBG

o HP said yesterday it�s willing to pay more than twice what 3Par�s shares were worth before Dell�s bid was announce http://www.businessweek.com/news/2010-08-24/dell-said-to-plan-sweetened-3par-offer-after-hp-counteroffers.html

o WSJ positive on 3PAR�s current position http://online.wsj.com/article/SB10001424052748703846604575447731336631668.html?mod=googlenews_wsj

o GOOG: China's Tencent buys Google-backed social-networking co- China Business News

o http://www.reuters.com/article/idUSTOE67N01L20100824

o LG Display says in talks with Compal for JV- Reuters

o SCON Superconductor Technologies reduces size of secondary offering to 4M from 10M through MDB Capital and Feltl

o Bloggers crying foul over Philly business tax- AP

o http://hosted.ap.org/dynamic/stories/U/US_TEC_BLOGGERS_TAXES

o Search engines: revenues near 2.7 billion yuan in China- Digitimes

o Online advertising: revenues top 10 billion yuan in China- Digitimes

o Tablet PCs: Annual global demand for tablet PCs to rise to 50 million units in 2-3 years, says Acer chairman

o NOK, INTC: Nokia and Intel build a joint research lab, plan to create the mobile 3D future- Engadget

o Samsung Epic 4G Is Fast and Bright, but No iPhone Killer- eWeek

o AAPL: Apple Patents a Desktop Touch-Screen- NYT

o LCDs: Taiwanese LCD maker files second suit against Sony- Reuters

o YHOO, Hulu: Cable's decline an incentive for Yahoo, Hulu deal- Reuters

o M&A Alone Isn't Enough to Spark Tech-Stock Rally- WSJ

o http://online.wsj.com/article/SB10001424052748704340504575447750444265796.html

o Advertising: WPP, the world's largest marketing company by revenue, fell 2%, in a muted response to its results. WPP is Bullish on US! - per BBG. Advertising margins were lower than expected. Organic growth of �almost 5%� in 2Q was slightly disappointing (consensus 5%+). Overall company Outlook OK

o AVTI: Options Traders Look For A Jump In Activision. Options trading in videogame company Activision Blizzard surges Monday as a big trader takes a position that profits nicely if the stock gains about 19% by mid-February- DJ

o YHOO Yahoo!'s Communications Product Head resigns - All Things Digital

MATERIALS

o ALB Albemarle to increase prices of SAYTEX brominated flame retardants

o Antofagasta (ANTO.LN) lowering full year production guidance.

o Xtrata -3%. To buy Sphere Minerals for AU$ 428 mln.

o Xstrata's (XTA.LN) purchase of Sphere Minerals Ltd (SPH.AU) "represents outstanding value for Xstrata shareholders" says Liberum Capital, noting that the deal is so good that it looks like a steal.Says: "At $0.36/ton of contained Fe, the acquisition price is right at the bottom end of trading multiples for developing iron ore projects � DJ

� Vedanta � 5.8%. India reject mine in Orissa

o Rio Tinto � 2.9%. Press speculates Potash bid. ( Canada�s Globe and Mail)

o Antofagasta -2.4%. Figures and guiding Copper production lower.

o POT: Rio Tinto is said to be considering a partnership with a Chinese player to bid for Potash - Globe & Mail; Chinese private equity fund Hopu Investment Management is considering a bid for Potash � WSJ

o ACH: Reports H1 global alumina output 40.2M tons, +13% y/y; global consumption 40.7M tons, +19% y/y

o Chalco to Expand to Coal, Iron Ore as Costs Rise -� BBG;� report hit yest

� Chalco dropped 3.7 percent to HK$6.31 at 12:29 p.m. in Hong Kong trading. The stock has declined 26 percent this year, making it the second-worst performing company on the benchmark Hang Seng Index

� Aluminum Corp. of China Ltd., the nation�s biggest maker of the metal, plans to expand into coal, iron ore, copper and rare earth as rising costs for its smelters led to a second-quarter loss. Shares fell.

FINANCIALS

o European Banks May Face More Frequent Stress Tests, Rehn Says � BBG

o US banks:� U.S. Judges Sound Off on Bank Settlements � NYT article

� In a scene that is becoming increasingly common, Judge Emmet G. Sullivan of Federal District Court chewed out federal prosecutors at a hearing in Washington last week for a proposed settlement with Barclays.

� �Why isn�t the government getting tough with banks?� he asked

� http://www.nytimes.com/2010/08/24/business/24judges.html?ref=business

o Banks' disclosure about sovereign-debt holdings lacks clarity

� Stress tests on European banks aimed to shed light on holdings of sovereign debt, but disclosure hasn't been as clear as hoped, according to The Wall Street Journal. Some banks aren't planning to continue to provide details about their sovereign-debt holdings, while others have used a different methodology to calculate their exposure. The muddled picture is raising concern among investors. The Wall Street Journal (24 Aug.)

o Chi-X Europe receives approach from unnamed third party � FT

� The trading platform says the inquiry may or may not lead to an offer to buy all or part of it. The FT notes that there has been speculation that Nasdaq (NDAQ) and Deutsche Boerse (DB1.GR) might be interested in Chi-X.

� http://www.ft.com/cms/s/0/a3877114-aefb-11df-8e45-00144feabdc0.html

o Bank of America Corp. (BAC) Chief Executive Brian Moynihan on Monday purchased 30,000 shares of Bank of America's stock at about $13.03 apiece.� DJ

o BAC Bank of America settles Countrywide data theft case - LA Times

o AIG: Confident that it will receive regulatory approval for the $2.2B sale of the Taiwan unit Nan Shan Life to a group led by China Strategic; No plans to sell the unit to any other party � TTN

o EFC Ellington Financial files amended S-1; to offer indeterminate amount of shares through Deutsche Bank

o MS Court dismisses Central Mortgage's breach of contract claims vs. Morgan Stanley-- Reuters

o MBI MBIA files mixed securities shelf of indeterminate size

o CISG CNinsure reports Q2 EPS

o PBIB Porter Bancorp cuts quarterly dividend by 50.0% to $0.10 from $0.20

o ACAS American Capital receives $12M in proceeds from Narus Exit

o EIHI Eastern Insurance Holdings, Inc. reports CEO Succession Plan

o London Stock Exchange CEO leaves board of LCH.Clearnet - FT

o HSBC: Given 2 weeks to make a formal offer for a controlling stake in NedBank - FT

o CITI......Citigroup Consumer Unit�s Overhaul Said to Spur Overdue Loans - BBG

o CitiFinancial�s delinquency rate last month was 0.25 percentage points more than executives had forecast

n Citigroup Inc.�s effort to streamline its North American consumer finance unit caused overdue loans to jump more than expected as the bank moved 750,000 customer accounts to new locations

o �In another recession, this type of business performs very poorly,� said Richard Bove, an analyst with Rochdale Securities LLC who rates the stock �buy.� �There�s a 40 percent chance of another recession and therefore I wouldn�t want to be a buyer who jumps into this thing at this point.�

o Wells Fargo �Strongly� Opposes FASB�s Rules on Loan Values

� Wells Fargo & Co., the largest home lender in the U.S., said it disagrees with an accounting board�s plan that would require banks to report the fair value of loans on their books.

� ��We strongly oppose the expansion of fair value as the primary balance-sheet measurement attribute for virtually all financial instruments,� Wells Fargo Controller Richard Levy wrote in the Aug. 19 letter. �It will only serve to cement a short-term focus on fair-value measures.�

� ��Wells Fargo is the first of the largest U.S. banks to publish its position among letter writers who named an affiliation, according to the Financial Accounting Standards Board website

CONSUMER

o AMWD American Woodmark reports in line to better

o BIG Big Lots reports, guides mostly better

� Guides full year EPS to $2.82-$2.90, above prior $2.75-$2.85 vs Reuters $2.85. BIG reiterates f10 guidance for $220M of cash flow. F10 comps. guided to 3.5-4.5%, unchanged from prior.

o RSH:� RadioShack Announces $300 Million Accelerated Share Repurchase

o Traders Place Bets on Consumer Stocks � WSJ link

o JWN:� Nordstrom Links Online Inventory to Real World � NYT article

� changed the way that it handles, of all things, inventory. And that has brought the department store more success in improving sales than at most of its competitors

� http://www.nytimes.com/2010/08/24/business/24shop.html?_r=1&ref=business

o BGP Borders Group says CFO Mark Bierley has resigned to pursue another employment opportunity

o EDS Exceed Company reports Q2 net profit RMB90.1M; +37.3% y/y

o TLB Talbots initiated buy at Sterne, Agee; target is $14.

o FMCN Focus Media reports Q2 EPS

o DF Dean Foods names COO Joseph Scalzo to additional role of president, effective immediately

o CWTR Consensus sales results for Coldwater Creek

o APP:� American Apparel says faces possible delisting of shrs Reuters

o AEO, ANF, ANN, JCG, TLB, URBN, ZUMZ, AEO, ARO, BEBE, CHS, CWTR, GPS, GYMB, HOTT, PSUN, BKE Janney Capital initiates Abercrombie & Fitch initiated buy with $42 target; Ann Taylor initiated buy with $19 target; J. Crew Group initiated buy with $41 target; Talbots initiated buy with $14 target; Urban Outfitters initiated buy with $40 target; Zumiez initiated buy with $19 target; American Eagle initiated neutral with $12 target; Aeropostale initiated neutral with $25 target; Bebe Stores initiated neutral with $6 target; Chico's FAS initiated neutral with $10 target; Coldwater Creek initiated neutral with $4 target; Gap initiated neutral with $19 target; Gymboree initiated neutral with $44 target; Hot Topic initiated neutral with $5 target; Pacific Sunwear initiated neutral with $4 target; The Buckle initiated sell with $21 target

o ALCO Alico CFO Patrick Murphy to resign

o SEB Seaboard Corporation entered into Engineering, Procurement and Construction contract on 17-Aug; total value ~$107.7M

o Punch Taverns trading update for 52 weeks to 21-Aug: FY earnings before tax and exceptionals to be marginally ahead of previous expectations

o Foster�s fell 4.3 percent, after reporting, and Mondays 8% rise

� Foster�s Group Ltd., Australia�s biggest beer and wine maker, posted a second-half loss after a A$1.2 billion ($1.1 billion) writedown on its wine division, which the company may spin off next year.

� �Operationally, the result was better than expected,�. �But the market was probably looking for more details on any approaches they may have had from potential acquirers.� � BBG

� The stock surged 7.6 percent yesterday, the most since August 2006, after the Sunday Times reported SABMiller may make a 7 billion pound ($11 billion) bid for its beer division.

o Chocolate:�� Lindt & Spruengli AG rallied 2.2 percent to 27,290 Swiss francs. The chocolate maker said net income in the first half rose to 24.8 million francs ($23.8 million) from 2.7 million francs the year earlier, beating analysts� estimates.

HEALTHCARE

o Sanofi (SAN FP)/ Genzyme Corp (GENZ US) Sanofi-Aventis and Genzyme remain in talks but cannot agree on a price which would grant Sanofi access to Genzyme books, the Wall Street Journal reported. The threshold price is the biggest obstacle to progress as negotiations have continued during the French summer holiday season. Sanofi was last week thinking about turning hostile but, for the moment, the two groups remain on friendly terms. The article reported that Henri Termeer, chief executive of Genzyme, is particularly reluctant for the company to be sold; he has worked for the business for 27 years. Other members of the board are more open to selling but they believe Sanofi USD 69-per-share opening offer to be much too low, even as a springboard for negotiations. The report went on to say that Genzyme is unlikely to sell for less than USD 80 per share, although it might grant Sanofi access to its books on the basis of a USD 75-per-share offer, subject to negotiation.

o MDRX Previously announced inclusion of Allscripts-Misys in the S&P MidCap 400 will take place after the close on 24-Aug

o RPTP Raptor Pharmaceutical provides financial and clinical program updates

o MMSI Merit Medical files $125M mixed shelf

o David Snow, chairman and CEO of MedcoHealth Solutions (MHS), tells Cramer he does not know why the company's stock is languishing. He adds that while the industry is competitive, it is also disciplined. Amid all of the concerns surrounding the contract renewal with UnitedHealth, he notes that Medco has a great relationship with UnitedHealth, while the contract is not up for renewal until 2013. Cramer remains positive.

o LH LabCorp launches IL-28B Test

o PFE Pfizer says that phase 3 trial of Sutent with Tarceva in advanced NSCLC did not meet primary endpoint

o DXCM DexCom initiated neutral at SunTrust Robinson Humphrey

o THOR Thoratec initiated buy at Madison Williams and Company; target is $50.

o U.S. Funding of Embryonic Stem Cell Research Halted � BBG

o U.S. District Judge Royce Lamberth in Washington issued an order temporarily stopping the U.S. Health & Human Services Department and the National Institutes for Health from conducting the studies. The judge cited the still-in-force 1996 Dickey-Wicker Amendment

o Roche dipped 0.7% to CHF138.0. The U.K. healthcare cost regulator said it won't recommend its Avastin drug for advanced bowel cancer.

o Sonic Healthcare Ltd., Australia�s biggest provider of medical tests, said profit may rise less than previously forecast because of uncertain demand in the domestic market.� BBG

UTILITIES

TRANSPORTS

o Baltic Dry was up 3.1% yesterday..longest up run in 9 months

o R Ryder System announces management changes; names Art Garcia CFO and Robert Sanchez President of Global Fleet Management Solutions

o BALT Baltic Trading Ltd takes delivery of handysize vessel

o NNA Navious Maritime Acquisition extends warrant program by five days to 27-Aug

o Aer Lingus [AERL.UK] narrowed its loss compared to last year's period but revenues had decreased. The outlook was positive and the company expected its 2010 operating result (before exceptional items) should be no worse than break even. TTN

GAMING, LODGING, & LEISURE

AUTOS

o Toyota Motor Corp: U.S. National Highway Traffic Safety Administration is upgrading its probe of the 2005-2007 Matrix model over possible engine defects; If recalled there would be 1.2M vehicles in the US involved -� TTN

o Toyota Motor moving authority to regional operations - Detroit News

o http://www.detnews.com/article/20100824/AUTO01/8240371/Toyota-shifts-more-authority-to-U.S.-units

o Fiat has denied rumours that it might sell Alfa Romeo, Il Sole 24 Ore reported. The report cited a press spokesperson who was responding to rumours that Volkswagen might be interested in Alfa Romeo.

o Not all Chrysler dealers on board with plans to sell Fiat 500 � WSJ

o http://online.wsj.com/article/SB10001424052748703846604575447794196663782.html?mod=ITP_marketplace_0

REAL ESTATE

o MBI MBIA files mixed securities shelf of indeterminate size

o Housing in 'Double-Dip': Economist Zandi � CNBC link

o WSJ: New Fees Weighed For US Mortgage Industry

o �The Obama administration may propose that any federal backing of mortgages be paid for through fees on the lending industry

o While the administration hasn't settled on a plan to revamp failed mortgage giants Fannie Mae (FNMA) and Freddie Mac (FMCC), which are now under federal supervision, a consensus appears to be emerging that some type of government guarantee will be needed to keep the ailing mortgage market functioning.

o MS:� Court dismisses mortgage claims vs Morgan Stanley

o Reuters) - A mortgage servicing company's claims that would push responsibility for faulty mortgage loans onto Wall Street titan Morgan Stanley (MS.N) were dismissed by a Delaware court, according to a court filing.

o The dismissal concerns Central Mortgage Co's assertion that Morgan Stanley Mortgage Capital Holdings repurchase loans it allegedly failed to screen properly before selling them to Fannie Mae (FNMA.OB) and Freddie Mac (FMCC.OB).

o S&P Lowers 15 Ratings On 3 U.S. CMBS Deals

o �We lowered our ratings on 15 classes from three U.S. CMBS transactions due to interest shortfalls

o �We expect the shortfalls on seven of these classes to continue and, as a result, we lowered the ratings on these classes to 'D (sf)'.

o �lowered its ratings on 15 classes of certificates from Credit Suisse Commercial Mortgage Trust Series 2007-C3, Wachovia Bank Commercial Mortgage Trust's series 2006-C23, and Credit Suisse First Boston Mortgage Securities Corp.'s series 2002-CP5, three U.S. commercial mortgage-backed securities (CMBS) transactions (see list).

o STWD Starwood Property Trust files mixed shelf of indeterminate amount

o U.K. house builder :� Persimmon Restores Dividend As Earnings Soar - DJ

o its shares up� 1.9%, making it one of the biggest gainers in the FTSE 250 index

o Wells Fargo �Strongly� Opposes FASB�s Rules on Loan Values

� Wells Fargo & Co., the largest home lender in the U.S., said it disagrees with an accounting board�s plan that would require banks to report the fair value of loans on their books.

� ��Wells Fargo is the first of the largest U.S. banks to publish its position among letter writers who named an affiliation, according to the Financial Accounting Standards Board website

OTHER STORIES

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

+ MHS, CRM, LVS, ESRX, VOD and WFT

-REXX and RLD

EUROPE TRADING WRAP

o Energy

o Cairn Energy (-0.5%). Figures..find gas offshore Greenland.

o EDF Unch. Press talks of Govt cuts solar px 12%(le Figaro)

o �Bowleven � 5%. Profit taking on Camaroon oil find.

o Mining

o Xtrata -3%. To buy Sphere Minerals for AU$ 428 mln.

o Vedanta � 5.8%. India reject mine in Orissa.

o Rio Tinto � 2.9%. Press speculates Potash bid. ( Canada�s Globe and Mail)

o Antofagasta -2.4%. Figures and guiding Copper production lower.

o WPP dn 2% after mixed report

o ACCOR sells 48 hotels for EUR 367m

o EDF: Solar energy prices to be lowered � S&P

o KABEL DEUTSCHLAND posts 11% rise in quarterly core

o ENEL: No decision yet on size of Green Power IPO � S&P

o XSTRATA launches recommended offer for Sphere Minerals

o KENDRION 2Q above expectations

o ORDINA posts 1H net loss, sells Integer

o TMC 1H revenues above expectations

o NKT HOLDING: 2Q misses ests, keeps guidance

o Charles Voegele posts 1H EBIT of CHF4m

o GAM posts underlying net profit of CHF106.3m for 1H

o HUBER reports sharp rise in 1H sales and profits

o DUERR announces refinancing through proprietary bond

o UDELSKI reports strong 1H growth and improved

o �LINDT & SPRUENGLI interim numbers top expectations

o ROCHE's Avastin again rejected by UK cost agency

o VON ROLL boosts 1H profit despite slide in sales

o ANTOFAGASTA: 1H EBITDA in line with consensus

o CAIRN ENERGY: 1H revenues below ests, finds gas in

o PERSIMMON: 1H in line, resumes dividend

o PUNCH TAVERNS sees FY slightly ahead, but stays cautious

o SPIRAX SARCO: Strong 1H, positive outlook

ASIA TRADING WRAP

� Japan

� NKY -1.33%, TPX -0.86%

� NKY fell to 15-mth closing low below 9,000 amid mounting concern about the government�s inaction on a strong yen threatening a fragile economic recovery. Turnover on the TPX fell to 881.13B yen from 1.04 trillion yen yesterday

� Stocks fell across most sectors led by oil & gas, industrials, materials, consumer and tech. Flow was defensive. Health care and utilities rose

� Exporters fell on a strong yen: autos -0.88%, CE -2.43%, precision -1.66%

� Banks -0.68

� Hong Kong

� HSI -1.10%; HSCEI -0.83%

� Mainland developer rose after report weekly new home transaction volumes in the southern city of Shenzhen increased the most in 4 mths and Citi upgraded the sector but fell in afternoon trading

� China

� SHCOMP +0.41%; SZCOMP +1.24%

� Stocks rose led by developers and steelmakers. B share rallied on talks the foreign-currency denominated B shares will be merged with the yuan-denominated A-share market after launching the international board for foreign company listings in Shanghai. Turnover on the SHCOMP fell to 88.83B yuan from 116.03B yuan yesterday

� Stocks rose across most sectors led by tech, consumer and health care. Banks and insurers fell

� Iron & steel +2.54% on speculation demand will increase as the government develops the western and central provinces

� Real estate +1.72% after Sina.com reported that weekly new home transaction volumes in the southern city of Shenzhen increased the most in 4 mnths

INVESTMENT BANKING

INVESTMENT BANKING WRAP

M&A

o HPQ/DELL in a bidding war for PAR 3Par

o HPQ sparks bidding war with Dell over PAR 3PAR- Reuters

� HP offered to pay $1.6 billion for 3PAR Inc (PAR.N), topping rival Dell Inc's bid by a third in a surprise move that could spark a bidding war for the data storage company.

� Shares in 3PAR soared 45 percent to above HP's $24-a-share offer, showing investors were anticipating a higher bid

� http://www.reuters.com/article/idUSN2318868520100823

o PAR 3Par reportedly recommended holders accept DELL�s offer, but it looks to have been before HPQ�s offer- SA

o DELL Said to Plan Sweetened PAR 3Par Offer After HPQ Counteroffers- BBG

� The offer may be sent in the coming days, said the person, who declined to be identified because the plans aren�t public

� HP said yesterday it�s willing to pay more than twice what 3Par�s shares were worth before Dell�s bid was announce

� http://www.businessweek.com/news/2010-08-24/dell-said-to-plan-sweetened-3par-offer-after-hp-counteroffers.html

o WSJ positive on 3PAR�s current position

� http://online.wsj.com/article/SB10001424052748703846604575447731336631668.html?mod=googlenews_wsj

o POT Potash Corp bid talks

o WSJ offers some warnings on a Chinese Potash bid

� An outright acquisition offer from Sinochem could provoke a Canadian political backlash. Sinochem's taking a minority stake in Potash, meanwhile, potentially could spike any takeover premium in what is a consolidating sector.

� Those invested in commodities have much to thank China for. Invitations to any merger party, however, should be handled with care

� http://online.wsj.com/article/SB10001424052748703846604575447832304091088.html

o China private equity may be eyeing Potash bid- WSJ

� A consortium led by Chinese private-equity fund Hopu Investment Management Co. is considering a possible bid for Potash Corp. of Saskatchewan Inc., a person familiar with the situation said, the strongest sign yet that China could emerge as a rival suitor to BHP Billiton for the big Canadian company

� The Hopu consortium has investors from Canada, the U.S. and Asia, and includes at least two sovereign-wealth funds

� http://online.wsj.com/article/SB10001424052748703846604575446991410097042.html?mod=ITP_marketplace_0

o Brazil's VALE denies bid for Canada's POT Potash- Reuters

� "The rumors that the company has bid to acquire or is negotiating to buy a fertilizer company (are) totally unfounded," Vale said in statement

� http://www.reuters.com/article/idUSN2319296720100823

o POT Potash Corp puts pressure on BHP to raise bid- Reutes

� "There are a number of people who have contacted us ... all sorts of different players. People would be surprised at what we're seeing," Potash Corp Chief Executive Bill Doyle said in an interview. He declined to identify any of the parties

� Still, without Vale as a bidder, the universe of potential white knights is shrinking.

� http://www.reuters.com/article/idUSN2316653120100823

o Chalco sidesteps speculation for a POT Potash bid- Reuters

� Aluminum Corp of China the world's biggest aluminium company by market value, sidestepped market speculation that the company may submit a rival bid for Potash

� "Chalco's investment should meet our investment criteria. We are not interested in just everything," Chairman Xiong Weiping told a news conference

� http://www.reuters.com/article/idUSTST00037320100824

o POT still seeking white knight, could it be Rio Tinto?- Globe and Mail

� Rio Tinto and Chinese partner said to be in the hunt as Saskatoon-based fertilizer giant �expects to see an alternative proposal�

� http://www.theglobeandmail.com/globe-investor/potash/potash-corp-spurns-bhp-seeks-white-knight/article1682757/

o Xstrata makes $428m offer for Sphere Minerals- the Australian

o The offer values Sphere at a 61 per cent premium to its $1.55 closing price yesterday and 73 per cent over its 30-day volume-weighted average price, Xstrata said in a statement

o http://www.theaustralian.com.au/business/city-beat/xstrata-makes-428m-offer-for-sphere-minerals/story-fn4xq4cj-1225909296863

o Some Chrysler Dealers See Un Problema in Fiat's Plans- WSJ

o As Chrysler Group prepares to lay out its strategy for selling a subcompact car from partner Fiat SpA, the move is raising concerns among some dealers struggling to sell the vehicles already on their lots.

o The launch of the Fiat 500 would introduce a fifth brand into the Chrysler family, alongside the Chryslers, Dodges, Jeeps and Ram trucks most dealers carry now

o http://online.wsj.com/article/SB10001424052748703846604575447794196663782.html

o ONGC-OIL-GAIL may bid to counter Vedanta's offer for Cairn- Economic times

o State-owned ONGC, OIL and GAIL may make a joint bid to counter Vedanta Resources' $8.48 billion offer for majority stake in Cairn India, and have already got $10 billion in loan commitments from international banks for the move

o Oil Ministry is believed to be uncomfortable with billionaire Anil Agarwal-owned Vedanta Group buying 51-60% of Cairn India for $8.48 to $9.6B and has asked Oil and Natural Gas (ONGC), Oil India (OIL) and GAIL to cobble up a joint bid to rival the London-listed miner.

o http://economictimes.indiatimes.com/news/news-by-industry/energy/oil--gas/ONGC-OIL-GAIL-may-bid-to-counter-Vedantas-offer-for-Cairn/articleshow/6421338.cms

o WSJ says there is no reason to rush into a Fosters deal for any party involved

o Shares in Foster's Group, Australia's largest brewer, rose 7.6% Monday on renewed talk of takeover interest in its beer assets from drinks companies SABMiller and Asahi Breweries. But for all parties, there are few reasons to rush a deal

o http://online.wsj.com/article/SB10001424052748703846604575447853037398016.html

o Foster�s fell 4.3 percent, after reporting, and Mondays 8% rise- BBG

o �Operationally, the result was better than expected,�. �But the market was probably looking for more details on any approaches they may have had from potential acquirers.� � BBG

o The stock surged 7.6 percent yesterday, the most since August 2006, after the Sunday Times reported SABMiller may make a 7 billion pound ($11 billion) bid for its beer division.

o Foster's on track to untangle beer and wine- Reuters

o Foster's Group, Australia's largest brewer, said on Tuesday the split of its beer and wine divisions was on track for next year, but was silent on growing takeover talk for its profitable $10 billion beer unit

o KNOC CEO says no plan to raise $2.6 bln Dana offer- Reuters

o State-run Korea National Oil Corp will not consider raising its $2.6 billion hostile takeover offer for British oil explorer Dana Petroleum (DNX.L) in return for management backing

o �We believe our offer values Dana fairly and fully and have no plan to consider raising it," KNOC chief executive Kang Young-won said

o http://www.reuters.com/article/idUSTOE67N00Y20100824

o GENZ Genzyme, SNY Sanofi at odds over threshold price � WSJ

o Both Genzyme and Sanofi are yet to agree on the threshold price and that is the main reason why the talks have not progressed further

o Genzyme may open its books to Sanofi if the French company agrees to offer around $75 a share as a starting point for negotiations on a possible sale

o http://www.reuters.com/article/idUSSGE67N05020100824

o C Citigroup Consumer Unit�s Overhaul Said to Spur Overdue Loans - BBG

o CitiFinancial�s delinquency rate last month was 0.25 percentage points more than executives had forecast

o Citigroup Inc.�s effort to streamline its North American consumer finance unit caused overdue loans to jump more than expected as the bank moved 750,000 customer accounts to new locations

o HSBC given weeks to make Nedbank bid- FT

o HSBC has just weeks to come up with a concrete offer for a controlling stake in Nedbank, South Africa�s fourth-largest bank, in a deal that would leave the UK bank well placed to benefit from growing ties between Asia and Africa

o http://www.ft.com/cms/s/0/837831fa-aee3-11df-8e45-00144feabdc0.html

o CASY Casey's urges shareholders to back existing board- Reuters

o Casey's General Stores, the target of a hostile takeover bid by Alimentation Couche-Tard, appealed to shareholders on Monday to re-elect its existing directors and stop Couche-Tard's attempt to gain influence over the board

o http://www.reuters.com/article/idUSN2319108220100823

o Sinopec looks to overseas oil, gas- SCMP

o China Petroleum & Chemical Corp is considering expanding its overseas oil and gas operations, including buying its parent's rapidly growing portfolio, to offset the negative impact of state fuel-price controls on its refining business

o http://www.scmp.com/portal/site/SCMP/menuitem.2c913216495213d5df646910cba0a0a0/

o US firms eye M&A to buy growth in slow economy- Reuters

o Faced with a slow crawl out of recession, some top U.S. companies have begun to talk up their interest in making acquisitions, saying low valuations make this the right time to invest a bit of their big cash piles

o MMM 3M could spend about $2 billion on acquisitions in 2010, double its initial estimate

o Fellow blue-chip CAT Caterpillar is also keen to spend

o http://www.reuters.com/article/idUSN2319557620100823

o Investors question 'public' private equity- Reuters

o investors in private equity funds are concerned that if a firm decides to go public, management will become consumed with generating fees, quarterly earnings and the company's daily stock price.

o http://www.reuters.com/article/idUSN2318023920100823

o AIG says committed to closing Nan Shan sale- Reuters

o AIG said it was committed to closing its $2.2 billion sale of Taiwan unit Nan Shan Life to a buyer group led by China Strategic and was confident the stalled sale would get Taiwan regulatory approval

o Pressure is mounting on AIG to close the deal after the collapse of its planned $35.5 billion sale of its Asian life assets to Prudential (PRU.L).

o http://www.reuters.com/article/idUSTPV00188320100824

o http://online.wsj.com/article/BT-CO-20100824-701632.html

o Gores Group buys National Envelope for $150 mln- Reuters

o Los Angeles-based private-equity firm The Gores Group won a bankruptcy court auction for NEC Holdings Corp, the parent of National Envelope Corp, agreeing to pay about $149.9 million in cash for the bankrupt envelope maker

o http://www.reuters.com/article/idUSSGE67M0M820100823

o Australia's AWB to back $1 bln Agrium bid- Reuters

o Australia's AWB plans to formally accept Canadian fertilizer maker Agrium Inc's A$1.2 billion ($1.07 billion) offer for the company after its board meets on Tuesday

o AWB was expected to change its earlier recommendation for local rival GrainCorp's (GNC.AX) lower offer to instead back the A$1.50 per share Agrium bid, the sources said

o http://www.reuters.com/article/idUSSGE67N00L20100824

o PwC To Buy DTPI Diamond Management & Technology Consultants - RTT News

o Diamond Management & Technology Consultants, a strategic management consulting firm, announced an agreement to be acquired by PricewaterhouseCoopers LLP for $12.50 per share in cash.

o The transaction represents a premium of 31% to Diamond's closing stock price of $9.54 on August 23, 2010, and values the company at $378 million

o http://www.rttnews.com/Content/QuickFacts.aspx?Node=B1&Id=1400592

o ANV Allied Nevada, NEM Newmont not to proceed with JV- Reuters

o Gold producer Allied Nevada Corp said Newmont Mining Corp (NEM.N) decided not to enter into a joint venture to explore the Hasbrouck and Three Hills properties in Nevada

o http://www.reuters.com/article/idUSSGE67M0MI20100823

o Chi-X Europe says may sell business after approach- FT

o "Chi-X ... can confirm that it has received an enquiry from a third party, which may or may not lead to an offer for the whole or partial sale of the company,"

o "We were not seeking a transaction and the option of remaining independent would allow us to build further value for shareholders," the group said

o http://www.ft.com/cms/s/0/a3877114-aefb-11df-8e45-00144feabdc0.html

o China's Tencent buys Google-backed social-networking co- China Business News

o China's largest Internet company Tencent Holdings Ltd has bought a Google-backed Chinese social networking company for more than $60 million

o Tencent, China's No.1 online game operator and its largest instant messaging provider, had bought Comsenz, a Beijing-based social-networking provider

o http://www.reuters.com/article/idUSTOE67N01L20100824

o Fiat has denied rumours that it might sell Alfa Romeo- Il Sole 24

o Cargill eyes stake in Indonesia's Sorini- Reuters

o Sorini, which has a stock market value of $234 million, produces sorbitol, a sweetener used in toothpaste and chewing gum, and includes Unilever , Nestle SA and PG Procter & Gamble among its customers

o "By taking control of Sorini, Cargill will have important control of the sorbitol and starch-derivative products supply chain,"

o http://www.reuters.com/article/idUSJKB00389720100824

o LG Display says in talks with Compal for JV- Reuters

o South Korea's LG Display said on Tuesday it was in talks with Taiwanese laptop contract maker Compal Electronics to set up a joint venture.

o http://www.reuters.com/article/idUSTRE67N02D20100824

o Roche signs up to $1.1 bln drug deal with Aileron- reuters

o Swiss drugmaker Roche Holding is entering a deal with U.S.-based Aileron Therapeutics worth up to $1.1 billion, giving it access to a new way of targeting diseases

o http://www.reuters.com/article/idUSLDE67N0H720100824

o Ratos selling business data firm Bisnode- Reuters

o Ratos, the Swedish private equity firm, is seeking to sell Bisnode, the business information firm that operates Dun & Bradstreet branded credit-checking businesses in 10 European companies

o http://www.reuters.com/article/idUSLDE67N0I020100824

o Irish Life in dispute with developer over �170m deal- irishtimes

o IRISH LIFE is in dispute with a Luxembourg developer over a �170 million property deal that the pensions and investment group believes it is no longer obliged to honour

o The deal was due to be completed in January of this year, but the Irish company says that a clause in the original contract allows it to back out of the agreement as the property�s price has fallen sharply since 2007

o http://www.irishtimes.com/newspaper/finance/2010/0824/1224277441513.html

o ITV has been suggested as a possible target for a European buyer- the Independent

$ RAISING

IPOs

o IPOs With Brand Recognition- WSJ

o With well-known companies such as Skype SA and General Motors Co. planning to go public, investor interest in IPOs is picking up.

o Brand recognition, however, isn't making their advisers any more comfortable with the initial public offerings. Many worry that individuals will act emotionally and overpay for stock whose value hasn't yet been determined by the markets.

o http://online.wsj.com/article/SB10001424052748704340504575447492834034782.html

PRICINGS

o Initial Offerings

o WSR Whitestone REIT 3.3m share IPO expected to priece 8/23 via Wunderlich and Ladenburg: Price Talk $14-16

o SRGV SurgiVision Inc 3.6m share IPO expected to price 8/24 via Rodman: Price Talk $5

o FULL Full Circle Capital Corp 2.8m share IPO expected to price 8/25 via Ladengburg: Price Talk $8-10

o Secondary Offerings

o No secondaries currently on the agenda for next week

NEWS��

o SXL Sunoco To Offer Up To 2 Million Units To Repay Debt- BBG

o Sunoco Logistics Partners has planned a public offering of up to 2 million of its common units as it seeks to repay debt, which could boost the number outstanding by 6.5%

o The company will offer 1.8 million units plus an additional 262,500 for underwriters. The offering is part of a shelf registration.

o SM SM Energy to raise $300-$500 mln via divestitures- Reuters

o Oil and gas company SM Energy plans to raise at least $300-$500m over the next 12 mos via joint venture agreements and sale of assets, including its Marcellus shale positions

o http://www.reuters.com/article/idUSSGE67M0MH20100823

o Credit Mkts: Norfolk Southern's Century Bonds Roll- WSJ

o In what bankers hope will be the first in a new round of 100-year bond sales, Norfolk Southern Corp. raised $250 million Monday by selling debtthat it won't have to repay until the next century.

o Investor interest was strong enough that the company increased the size of the new sale from $100 million. Before 2005, Norfolk Southern had one other 100-year issue, in 1997

o Real Estate: STWD Starwood Property Trust files mixed shelf of indeterminate amount

o Financials: MBI MBIA files mixed securities shelf of indeterminate size

o Energy: SXL Sunoco Logistics announces 1.75M unit offering through Barclays and UBS

o Energy: NBR Nabors Industries files mixed securities shelf of indeterminate size

o Healthcare: MMSI Merit Medical files $125M mixed shelf

o Tech: SCON Superconductor Technologies files amended S-1; reduces size of secondary offering to 4M from 10M through MDB Capital and Feltl

TODAY�S EVENTS

o CONFERENCES

o CFA Institute / ICMA: International Fixed Income and Derivatives Programme� - Aug 21, 2010 - Aug 27, 2010

o Commerzbank TMT Conference

� NTS: QSC.F , TELP.F , WIN.F

o EnerCom Incorporated Oil & Gas Conference - Aug 22, 2010 - Aug 26, 2010

� 10:50AM: UPL�

� 11:15AM: UNT

� 11:40AM: GMXR

� 12:05PM: GOK

� 12:55PM: CXO�

� 1:20PM: HK

� 1:45PM: ERF�

� 3:30PM: ROSE

� 3:55PM: PQ

� 4:20PM: EQT �

� 4:45PM: PWE

� 5:10PM: CLR

� 5:35PM: CRZO , FXEN

� 6PM: PTEN

� 6:50PM: SM , USEG

o Macquarie Securities North Asia Corporate Day - Singapore - Aug 24, 2010 - Aug 25, 2010

o National Investment Banking Association Conference - Aug 24, 2010 - Aug 27, 2010

o Nomura Securities Co., Ltd. Taiwan Corporate Day - Aug 23, 2010 - Aug 24, 2010

o Santander Annual Conference

� NTS: EMBR3.SA

o TODAY�S EVENTS

o Shareholder Meetings

� BERK, KEYO, PSSI, BH, SII, MFLR, MEXP, CPWR, FBP, ORNI, Q, MMUs, ICH

o ECONOMICS

o 0745 ICSC-Goldman Sachs Chain Store Sales Index

o 0855 Johnson Redbook Retail Sales Index

o 1000 Existing Home Sales

o 1000 Richmond Fed Business Activity Survey

o 1630 API Statistical Bulletin

o 1700 ABC News Consumer Comfort Index

o EARNINGS

o Consumer/Retail/Education

� PSUN, AMWD, BIG, BKC, BKS, BRID

o Energy

� TSL

o Healthcare

� TAROF, MDT, ULGX

o Industrials/Homebuilders

� AG, DY, ESP, DAKT, DYP

o Tech/Telecom

� PAY, GSIGQ, NCTY, AVGO, DAC, HOO

***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.