Cantor Morning News | Morning @ Cantor

� The securities due in October 2016 were issued at an average yield of 4.371 percent, the country�s debt management agency said today. That compares with an average yield of 3.834 percent at a previous auction of six-year debt on Feb. 11, 2009.

� Global rates:� Thailand Raises Interest Rate, Signals More Increases

� Japan�s 3-Month Treasury Bill Sale Has Lowest Yield in 4 Years

� German business sentiment comes in better than expected

� Germany Aug IFO Index 106.7 vs consensus 105.7 and prior 106.2

� Spain revises down full year GDP

� ABC Consumer Confidence (44) in 22-Aug week vs (45) in prior week�

� Bullish sentiment declines to 33.3% from 36.7% in the latest Investor's Intelligence poll

� Bearish sentiment increases to 31.2% from 31.1%

� Japan July exports +23.5% y/y vs survey +22.9%. July trade surplus �804.2B vs survey �457.0B.

� short interest� Nasdaq OMX, NYSE and NYSE Amex announce total short interest as of 13-Aug�

� Bearish Bets Rise On NYSE, Fall On Nasdaq

� In the exchanges' latest twice-a-month statistics, this time for the period ended Aug. 13, the number of short-selling positions at the NYSE� increased 0.4290%. The positions stood at 13,746,614,701 shares from a revised 13,687,891,262 shares in the period ended July 30.

� �On Nasdaq, short interest decreased 1.60% to 7,220,994,727 shares from 7,338,640,581 shares over the same period.

o Economics today:

o MBA Mortgage Applications, 7 a.m., Aug. 20

o Jul Durable Goods at 8:30 ET

o USDA Poultry Slaughter report, 8:30 a.m.

o Jun FHFA House Price Index, Jun New Home Sales at 10:00 ET

o DOE Crude Inventories at 10:30 ET

o U.S. sells 5-yr notes, 1 p.m.

Earnings:

o Companies due to report after the close include: JDSU

TODAY�S BIG STORIES

o Top M&A

o BHP reports mixed�traded flattish today..cautious outlook�iron ore and energy coal a bit disappointing.

� BHP Billiton (BHP) will remain "disciplined" about its $38.6 billion offer for Potash Corp. of Saskatchewan� (POT), said the chief executive of the world's largest mining company Wednesday.

� China's Sinochem International Corp. (600500.SH) has said it is "evaluating" a bid for Canada's Potash Corp. (POT), the world's largest fertilizer maker, after a BHP Billiton Ltd. (BHP) bid was rebuffed � DJ

o Bayer (BAYN.GR) traded higher on takeover over rumors and ROCKET-AF trial acceptance news � SA

o Nestle SA hasn�t decided what it will do with its stake in L�Oreal, Handelszeitung

o Dell Said to Plan Sweetened 3Par Offer After HP Bid - BBG

o 3Par Says Will Enter Into Merger Negotiations With H-P

o Activist pension funds to target boards from FT.com

� Large activist pension funds are to launch a campaign to shake up underperforming US companies, using new rules due to be agreed on Wednesday that allow shareholders to directly nominate board directors

o Top $ Raising

o IPO Backlog Rises in August to 116 Deals Expected to Raise $26.0 Billion. How Many of These Deals Will Get Done? IPOs Total Less Than $3 Billion in Each of Past Nine Months. The IPO backlog remains jam-packed. Dealogic reports that 116 deals expected to raise $26.0 billion were in the pipeline as of August, up from 28 deals expected to raise $15.8 billion in August 2009. TRIMTABS

o AIG to decide on AIA pre-IPO sale by next week-sources from Reuters

o Facebook�s �value� soars as investors seek pre-IPO stake

� Facebook is now worth as much as $33.7bn based on secondary market transactions, giving the privately held company an implied valuation greater than the market capitalisations of publicly traded internet stalwarts such as Ebay and Yahoo

� http://www.ft.com/cms/s/0/054fc0ee-afa7-11df-b45b-00144feabdc0.html

o Debt Markets stories:��

o Corporate Debt 'Wall of Maturity' Crumbling from DealBook

� Financial markets are knocking down a wall of debt maturity that has endangered the U.S. economic recovery and threatened to push more companies into bankruptcy

� Companies must refinance about $400 billion in debt over the next five years

� But that mountain of debt has shrunk by more than 25 percent over the last two years as lenders agreed to extend favorable terms rather than forcing repayments

o Loans mkt:� All junk, all the time - FT

� various reasons for why this year�s junk bond rally had been surprisingly persistent.

� But how does this relate to the market for junk loans, better known as speculative-grade or leveraged loans?

� Takeovers are being funded with bigger chunks of debt as banks led by Bank of America Corp. and JPMorgan Chase & Co. compete to arrange high-yield deals that have already exceeded the total amount completed in 2009,

� In 2007, junk bond sales were $140bn while institutional loans totalled $386bn, according to S&P LCD. This year, junk bonds are running at $163bn while institutional loan sales are $88bn. Institutional loans are largely syndicated to investors, including CLOs

� http://ftalphaville.ft.com/blog/2010/08/25/325061/all-junk-all-the-time/

o Media Obsession with Cash on Corporate Balance Sheets Ignores Fact That Corporate Debt Also at Record Level. U.S. Non-Farm Non-Financial Companies More Leveraged Than at Any Time on Record.� TrimTabs

� Hardly a day passes without a financial journalist mentioning that U.S. companies are sitting on record amounts of cash. For example, in Monday�s issue of The Wall Street Journal, Jonathan Cheng cites FactSet data that non-financial S&P 500 companies hold a record $2 trillion in cash.

� What gets a lot less press is that corporate debt is also at record levels. According to the Federal Reserve, non-farm non-financial U.S. companies held a record $7.2 trillion in debt in Q1 2010.

o Goldman Sachs is losing market share underwriting corporate bonds, falling to 10th place, with a 3.7% share of this� year�s offerings, vs 9th place last year, according to data compiled by Bloomberg

o Fed Watch:

o Goldman's Jan Hatzius explains why while he is still convinced that the Fed will ultimately have to undergo QE2, he presents the case why the Fed's hands are now most likely tied through its November 2-3 meeting (and why the J-Hole meeting will be a snoozer), at which point it will be too late for the market to benefit from monetary stimulus. The implication: very bearish for stocks, as Obama's only option for pumping up stocks in advance of the elections (monetary easing) is eliminated. With no means to implement a stock run up into the election (which would become a prompt self-fulfilling prophecy), the market is likely about to tumble.� ZH

o Uncooperative QE � FT highlights less bang for the buck

� An interesting dynamic is starting to take hold with respect to the central bank rhetoric, with �dovish� interpretations no longer necessarily acting as a boost for risk asset markets

� Where once the mere hint of quantitative easing would make stock investors salivate, the Federal Reserve�s August 10 �QE II/lite� announcement fell much flatter. Likewise, Tuesday comments from the Bank of England�s Martin Weale seems to have sent equities sliding rather than soaring.

� http://ftalphaville.ft.com/blog/2010/08/25/325626/uncooperative-qe/

o Fed's Evans says double-dip risk has risen from Reuters

� INDIANAPOLIS (Reuters) - The risks of a double-dip U.S. recession have risen in the last six months, Chicago Federal Reserve Bank President Charles Evans said on Tuesday

o Circuit breakers kick in to halt strange trades on London Stock Exchange from Telegraph

o Trading in five stocks on the London Stock Exchange was temporarily suspended on Tuesday after unusual price moves triggered circuit breakers.

o CBO says stimulus may have added 3.3 million jobs

o President Obama's much-maligned economic stimulus package added as many as 3.3 million jobs to the economy during the second quarter of this year, and may have prevented the nation from lapsing back into recession, according to a report released Tuesday by the non-partisan Congressional Budget Office

o http://voices.washingtonpost.com/political-economy/2010/08/cbo_says_stimulus_may_have_add.html

o 'Hindenburg Omen' creator exits stock market...

o The latest trigger has prompted the Omen�s creator, Jim Miekka, to exit the market. �I�m taking it seriously and I�m fully out of the market now,� Miekka, a blind mathematician, said in a telephone interview from his home in Surry, Maine. �I would�ve probably stayed in until the beginning of September,� depending on how the indicators varied. �That was my basic plan, until the Hindenburg came along.�� WSJ

o Jim Rogers says the world needs higher rates, commodities set to advance.� BBG

o No Rally Until Obama Steps Up: Jim Cramer

o �proxy access� rule :� US businesses alarmed at SEC plan from Financial Times

o Corporate America senses a revolution in the offing on Wednesday � and one it finds deeply alarming

o The source of the business and Republican concern is a corporate governance change, expected to be approved by the SEC on Wednesday, allowing large shareholders to nominate their own broad candidates directly, rather than going through the expensive and time consuming process of a proxy fight.

o This increase in shareholder power is designed to make it easier to hold underperforming boards to account, bringing in fresh directors to challenge corporate strategies on issues ranging from pay to safety

o Accounting:� FASB changed rattle mkt:

o F.A.S.B. Chairman Plans to Retire from DealBook

� The Financial Accounting Standards Board said its chairman, Robert Herz, had decided to retire after more than eight years leading the group.

o Early Exit of FASB Head Raises Anxiety from WSJ.com

o Corporate America, it's time to spread the wealth from Los Angeles Times

o Businesses are sitting on a record hoard of cash, but they're not using it to hire workers or pay existing ones better wages. Broadly distributing the fruits of economic growth is the only way to sustain that growth.

o Corporate America must be in a bad way. Job growth has stagnated, the prospects for hiring, at least in the near term, seem grim, and the polls of top executives sound universally glum.

o Homebuilder:� TOL in line (.16) revs 50million better and ceo talked of buying up "cheap "properties in spite of housing weakness

o Toll Brothers Inc. (TOL) posted a surprise fiscal third-quarter profit, its first in nearly three years, as revenue fell far less than analysts expected even as the luxury homebuilder saw a drop in contract signings amid fewer available communities.

o Caterpillar CEO Calls For More Competition from CNBC

o Construction heavyweight Caterpillar is calling on Chinese construction equipment manufacturers to step up and create a more competitive global landscape.

o International air passenger demand up 9.2% in July - IATA

o American Union Rejects Contract from WSJ.com

o Unionized mechanics at AMR Corp.'s American Airlines rejected a tentative pay deal Tuesday, heightening labor uncertainty at the second-largest U.S. airline.

o Credit Card Debt Drops to Lowest Level in 8 Years from CNBC

o The average combined debt for bank-issued credit cards � those with a MasterCard or Visa logo � fell to $4,951 in the second quarter, down 13 percent from $5,719 last year, according to TransUnion.

o The credit reporting agency said it was the first time card debt fell below $5,000 since the first quarter of 2002.

o More borrowers also made payments on time. The number of cardholders past due by 90 days or more fell to 0.92 percent in the second quarter, from 1.17 percent last year.

o Commercial landlords defaulting on purpose from The Real Deal New York

o Some of the largest commercial property owners in the country -- including Macerich, Vornado Realty Trust and Simon Property Group -- have recently stopped making mortgage payments to put pressure on lenders to restructure debts, the Wall Street Journal reported. In a process known as �jingle mail,� some companies are also sending lenders the keys to properties whose values had fallen below the mortgage amounts. Though the companies can all afford to pay, they are opting to default because they believe that it's a good business decision. [more]

o Canadian bank report this am�CIBC Third Quarter Cash EPS Ex Items C$1.66, Est. C$1.53

o BHP Billiton (-0.1%). FY figures come in slightly below consensus, but dividend of 45c was as expected.

o PSUN -6.1% (earnings)

o Heineken rises..beasts estimates today

o China's Geely H1 net up 35 pct, tops forecasts

o What's the Beef? Food-Inflation Fears from WSJ.com

o Cattle prices are soaring toward records, pushing up beef prices in stores, with gains fueled by rising appetites globally and a dwindling U.S. herd.

o Political Stories:

o McCain wins by wide margin

o businessman Rick Scott pulls upset in Florida Republican gubernatorial race, AP reports

o Florida Rep. Kendrick Meek wins Democratic Senate nomination

o Defense Official Discloses Cyberattack - WP

� Now it is official: The most significant breach of U.S. military computers was caused by a flash drive inserted into a U.S. military laptop on a post in the Middle East in 2008.

� �In an article to be published Wednesday discussing the Pentagon's cyberstrategy, Deputy Defense Secretary William J.

� Lynn III says malicious code placed on the drive by a foreign intelligence agency uploaded itself onto a network run by the U.S. Central Command.

o CIA analysts consider al-Qaeda's Yemen-based offshoot -- rather than the core group now based in Pakistan -- as cause for an escalation of U.S. operations in the Arabian Peninsula.� WP

o http://link.email.washingtonpost.com/r/E5QODK/266XKX/65IJBX/AFW1BP/3KNRI/36/t

o Democrats move to shore up faltering recovery from Wash Post

o A rapidly weakening economy threatens to undermine President Obama's assertion that he has set the nation on a path to prosperity and, with barely two months until congressional midterm elections, Democrats find themselves with few options for reviving the faltering recovery

o "Stunned" government to appeal stem-cell ruling from Reuters

o �Stunned and disappointed Obama administration officials said on Tuesday they would appeal a federal court ruling that temporarily barred federal funding of embryonic stem cell research.

o NYC has the most bedbugs nationwide: study from The Real Deal New York

o New York City ranks number one on a list of the nation's 15 most bedbug-infested cities, according to a new report from Terminix, a leading pest control company, NBC reported. Philadelphia and Detroit round out the top three, and several Ohio cities -- Cincinatti, Columbus and Dayton -- are in the top 10. New York City fielded 11,000 complaints about bedbugs last year, according to city officials. Scientists say bedbugs are appearing on a scale not seen since before World War II, when they were nearly eradicated. [more]

o How the Government Can Use GPS to Track Your Every Move from TIME.com

o A controversial ruling could turn America into the sort of totalitarian state imagined by George Orwell

o WikiLeaks plans to release CIA paper on Wednesday from Reuters

o STOCKHOLM (Reuters) - WikiLeaks, the whistle-blowing website that published secret U.S. military files on the war in Afghanistan last month, said it plans to release a document from the Central Intelligence Agency on Wednesday.

CANTOR TRADING RECAP

o Equity Recap

o They started us lower when we walked in on more sentiment that was negative with more fed officials talking of us cutting out the repurchasing of mbs program and the CRH LN overseas in homebuilders which guided lower and got hit 20% for it. Then the market didn�t have tolerance for a 800,000 worse than expected existing home sale number which shouldn�t have been a shocker but to be that light we have issues or you need to fire those who give out estimates on data. Technically 1,045 held while they couldn�t take them anywhere on the upside and again, this is all while the m&a continues with the cheap money. Most investors have made their beds and although there was some money picking away in select things across the board, the selling was real and it felt still like most of the guys with conviction and money combined are looking for s&p 850.

o Breadth to the market had just over 3 declining issues for every advancing issue, while internally here, buy names outnumbered sell names 1 �-1 albeit quiet

o Billy Clark and Team

o Investment grade Recap

o Despite equities down again today and some ugly housing numbers the reaction in spreads was only marginally wider. Most of the sell pressure was early on and despite the widening YUM (Baa3/BBB-) was able to come with 350MM in a ten year at +140 and AET (Baa1/A-) with 750MM of a ten year at +160, minimal concession if any versus existing paper as the appetite for IG corps seems insatiable as yesterday's 100yr NSC deal showed

o Volumes were mixed as accounts and dealers all seem to be in "clean up" phase looking to clean up stray line items, appreciate the focus thus far on our own line items. Still have buyers overall, mostly in the 3-9yr bucket, higher quality, albeit we do have more selective buyers of yielder paper although I guess the 6% real money buyers are now reduced to buying pipelines, 5B paper, and 100yrs.

o Michael Salemo

o CMBS recap

o You couple today's wicked weak housing number with last Thursday's claims number and the economy looks like crud.� Hard to be bullish today; however, technicals remain strong in certain portions of the mkt.� Similar story to corps where too much cash is on the sidelines.� Corps were out 1-5bps today on light selling.� Look at Tier 1 AM paper which sets new highs daily as accounts look to buy safe paper but need yield.� Tier 1 AMs '05s above par, '06s $99 handle and '07s $95 handle.� We traded $10+mm BSCMS 05-T20 A4Bs (AMs) with a par handle today.� Looking for BACM 05-6 AMs, BACM 06-2 AMs and JPMCC 06-LDP8 AMs.

o GG10s started the day 10bps wider then got to unchanged before finishing out 15bps (+340/$103-3).� In the lower beta names spreads were unchanged to a 3bps wider.� We are still seeing demand for clean '06 lcfs. LBUBS 06-C6 A4 and WBCMT 06-C25 A5 fit

o Selling remains light with $250mm in for the bid including $35mm of AM/AJ paper and $100mm A2s.� A2s continue to trade well into the strong bid for short paper.� For example, CWCI 06-C1 A2 covered +230.� I dont get paper like DDR 09-DDR1 As that covered +104 when you can buy our WBCMT 05-C20 A7s +150. Yes a nice new clean deal but a ton of yield to give up and a huge give in credit support (19% vs 39%).

o GEORDIE WALKER

o Convertible Wrap

o Trace volumes perked up today. Earnings and news drove activity as MDT, Sandisk and Transocean made up approximately 43% of the total volume. MDT announce earnings and guide lower for 2011. The stock got hit but the short maturity and strong credit rating supported the Converts. Sandisk was called overvalued in a research report which easily took the stock lower in a down equity market. Transocean (RIG) was one of the few stocks in positive territory for the day as news came out that the offshore drilling band could be lifted before 11/30/10. Hornbeck also seemed to benefit from this news trading up 1 point today. High Yield buyers looking for ways to outperform there peer group find some Convert names an attractive alternative to straight paper as the equity kicker gives them the upside potential. We see names like MGM and BGC are better bid. Customer sells slightly outpaced customer buys today according to Trace

o Tom Fazio: ADCT 3.5%-17, CRZO 4.375-28, DOLE 7% pfd, MGM 4.25%-15, MOH 3.75%-14, NIHD 3.125%-12, SNDK 1%-13

o Thomas Fazio

o Rates Commentary

o A firm bid overnight in the UST market continued as the New York session opened with eyes on equities as they continued their retreat and the existing home sales data. Existing home sales printed a dismal 3.83M, a 27.2% MoM decline which as expected sent Treasuries to the races led by the 7-10 year sector. Recent/record highs were made across the curve shortly thereafter with the 2 year touching its record yield-.454%, 5 year 1.305%, 10 year 2.467% and 30 year 3.542%. The market, however, retreated rather quickly t settling down as the 2 year auction approached. For the fourth straight month the 2 year came at a record low yield and record low 3/8 coupon with the issue coming at .498% through by .2bps. Bidder participation was weak with only 29.2% allotted to indirects (lowest since April 2009) and 12.1% to directs (lowest since February 2010)

o Post auction the large takedown by the street did not force any redistribution as the UST market once again found a bid with the downtick in the equity market and short covering. At 3PM Treasuries were higher in price across the curve with benchmark yields ~1-11bps lower, 7s out to 30s were the best performing, 2s the worst, not surprising considering yields in the sector are ~.50%. TIPS continued to underperform on the up trade and inflation expectations with breakevens in 2-7bps, 10 year breakevens are now 152bps.

o The Fed conducted their third purchase today in the 2013-2014 sector buying 1.35Bln of the 17.285Bln offered. Their purchases were all original maturity 3 year notes with 1/3 in the current 3 year issue.

o Eyes will once again turn to the equity markets overnight along with the yen which traded below the 84 handle intraday. Data tomorrow includes durable goods and new home sales. $36Bln 5 year notes will be auctioned tomorrow in what is setting up to be an extremely tricky auction

o Primary Dealer

SECTOR NEWS WITH MACRO IMPLICATIONS

ENERGY

o New microbe chows down on spilled oil from USATODAY

� Researchers have discovered a previously unclassified species of microbe that appears to be happily gorging away on the long plume of oil left ...

o Drillers May Face Months of Delay Even After Obama Lifts Ban � BBG

� President Barack Obama�s administration may agree to an early end for its moratorium on deep-water oil and gas drilling while backing new regulations that may keep rigs idle for months afterward.

o Job Losses Over Drilling Ban Fail to Materialize - NYT

o Energy Regulator Cited for Taking Perks from WSJ.com

� A former senior oil industry regulator at the Interior Department took golf tickets, lodging and meals from one of the companies he regulated, says a government report.

o Total (FP FP)/ Cobalt (CIE US)..Total could be interested in acquiring US Cobalt International Energy, daily Les Echos reported. The report referred to analysts at Bernstein who claimed that the US company could attract the interest from the French group.

o PCX Patriot Coal President and COO Paul Vining stepping down, effective immediately

o PKD Parker Drilling receives letter from GPA Energy stating intent to terminate contract due to force majeure

o API reports crude inventories (1.85M) vs. Reuters +200K ; distillate inventories +1.89M vs. Reuters +1.1M; gasoline inventories +692K vs. Reuters (400K)

o BWP, EEP, EPB, EPD, MMP, OKS, PAA, RGNC, BWP, ETP, SEP Oppenheimer initiates; El Paso Pipeline Partners initiated outperform with $39 target; Enterprise Products� initiated outperform with $43 target; Magellan Midstream Partners initiated outperform with $56 target; ONEOK Partners LP initiated outperform with $80 target; Plains All American initiated outperform with $68 target; Regency Energy Partners initiated outperform with $29 target; Boardwalk Pipeline Partners initiated perform; Enbridge Energy Partners initiated perform; Energy Transfer Partners initiated perform; Spectra Energy Partners initiated perform.

o Macarthur Coal (MCC.AU) lost 9% on saying it raised A$439M in an institutional placement to buy a coal asset that many felt it was overpaying for

o EEE Evergreen Energy Inc agrees to exchange a portion of its outstanding 2007 convertible debt

o BP (BP.LN), Royal Dutch Shell (RDSA.LN), Statoil (STL.NO) bid for right to develop deepwater oil projects off coast of Greenland - London Times

UTILITIES

o AWK Barron's Weekday Trader is positive on American Water Works��

INDUSTRIALS

o Caterpillar CEO Calls For More Competition from CNBC

o Construction heavyweight Caterpillar is calling on Chinese construction equipment manufacturers to step up and create a more competitive global landscape.

o GNK Genco Shipping & Trading has taken delivery of the Genco Bourgogne and the Genco Bay

o DY Dycom reports Q4 EPS from continuing operations

o KBR KBR awarded contracts by the Republic of Iraq Ministry of oil for grassroots FCC and ose units at Maissan refinery

o TOPS TOP Ships inc. enters preliminary agreement with DVB Bank regarding covenants

o LyondellBasell Industries to end operations in Iran � WSJ

o ITRN� Ituran Location and Control reports Q2 EPS $0.23 vs Reuters $0.25�

AUTOS

o VOLVO truck deliveries up 62% y/y in July

o Russia Recovery Makes Car Market Europe Bright Spot - BBG

o Carmakers Increase Voluntary Recalls from NYT

� Since the Toyota recalls, automakers are taking initiative instead of waiting for regulators, which has caused a flood of recalls

o Chrysler to have difficulty turning '10 profit, CEO says from Automotive News

� Chrysler CEO Sergio Marchionne said on Monday it will be "difficult" for the automaker to turn a net profit for the full year 2010.

o China's Geely H1 net up 35 pct, tops forecasts from Reuters

� HONG KONG, Aug 25 (Reuters) - China's Geely Automobile Holdings Ltd , whose parent bought Ford Motor Co's Volvo unit this month, reported a 35 percent rise in first-half profit, but measures to cool the economy could slow near-term growth in the world's largest auto market.

o Toyota plans 5 million cumulative hybrid sales by 2015 from Reuters

� �Toyota Motor Corp said on Wednesday it wants to reach cumulative sales of 5 million hybrid vehicles in the early part of this decade.

o ITRN� Ituran Location and Control reports Q2 EPS $0.23 vs Reuters $0.25�

TRANSPORTS

o International air passenger demand up 9.2% in July � IATA

o FDX FedEx seeking to block probe by NY AG Cuomo into the declared value of shipped items and FDX liability on those shipments � WSJ

o American Union Rejects Contract from WSJ.com

� Unionized mechanics at AMR Corp.'s American Airlines rejected a tentative pay deal Tuesday, heightening labor uncertainty at the second-largest U.S. airline.

o GBX Greenbrier Companies announces new railcar and refurbishment orders

o China Airline stocks declined when Embraer (ERJ) confirmed that a Henan Airlines Embraer crashed in China yesterday, killing 42 of the 96 on board.

o Qantas (QAN.AU) declined 1% on saying it will raise domestic capacity by 10% over the next nine months

o Lufthansa Says Intercontinental Airline Mergers to Increase � BBG

o Audi to Sell A1 Compact Car Outside Europe, Boost Production - BBG

MATERIALS

o WY Weyerhaeuser announces results of special dividend election

o POT BHP could be forced to put higher Potash bid to shareholder vote - FT

o NXG Northgate Minerals and BNP Paribas sign engagement letter for $100M project debt facility

o ARJ Arch Chemicals to consolidate its US R&D and Technical Services activities in Alpharetta, GA

o POT Rio Tinto not planning to counterbid for Potash - Telegraph, citing sources

TECH/MEDIA/TELECOM

o WSJ is positive on Tech

o The paper says With the sector's top eight companies sitting on $125 billion of net cash, deals look set to continue.

o with the sector generating tens of billions of dollars from operations each year, bank accounts should keep expanding despite buybacks and dividends. So more big deals are likely in the offing.

o Even with the M&A drive the paper says The surest path to riches, of course, isn't acquisitions but innovation citing the success of GOOG and AAPL

o http://online.wsj.com/article/SB10001424052748703447004575449772842325594.html?ru=MKTW&mod=MKTW

o AAPL: Survey shows 26% of mobile workers plan to get an iPad- AppleInsider

o AAPL: Apple Said to Prepare New 99-Cent TV Rental Service- BBG

o AAPL, Sharp: Sharp's e-reader ready to 'rival the iPad' by year's end, may have a 3D- Engadget

o PAR: DELL has until Thursday to match HPQ offer for 3PAR- 14D

o Washington Times: Founder may buy back the paper- Reuters

o CSTR Coinstar to sell money transfer business for $41.5 mln- Reuters

o CTL CenturyLink�s Takeover of Q Qwest Is Approved- Dealbook

o VRNT Verint Systems files 2.4M share secondary offering for holder Comverse Technology (CMVT)

o TVs: 32-inch segment takes 41% of TV panel shipments in 2Q10 in China- Digitimes

o Semis: Chip inventories swelling but no cause for alarm yet- iSuppli

o Handset Chips: Prices for analog-TV handset chips to continue to fall- Digitimes

o GOOG, AAPL: Android users better target for mobile advertising than iPhone users?- IntoMobile

o Alibaba makes second U.S. buy in 2 months. Agrees to buy Auctiva - Reuters

o AMZN: Amazon's new eReader has sold out before it has even shipped to the public- Telegraph

o China Telecom reports better. The number of users doubling in the Q was a major positive. Capex estimates were raised, but the future looks bright after the positive customer adds.

o AVGO reports a better Q on the top and bottom line and guides Q4 higher.

o Foxconn: BYD won court approval to pursue claims that Foxconn gathered false evidence and conspired to injure its business- BBG

o QCOM Qualcomm May Invest $2 Billion in Taiwan- Commercial Times

o MENT Mentor Graphics holder Carl Icahn discloses a 14.98% stake in an amended 13D filing; up from 14.13% disclosed on 30-Jul

o VECO Veeco authorizes repurchase of up to $200M in shares over the next year

o EPAY Bottomline Technologies awarded US patent for invoice data capture capabilities

o RIMM Research In Motion "quietly" acquired Cellmania - All Things Digital

o ROVI Rovi Corp signs extended IPG patent license agreement with British Sky Broadcasting

CONSUMER

o Credit Card Debt Drops to Lowest Level in 8 Years from CNBC

o The credit reporting agency said it was the first time card debt fell below $5,000 since the first quarter of 2002.

o More borrowers also made payments on time. The number of cardholders past due by 90 days or more fell to 0.92 percent in the second quarter, from 1.17 percent last year.

o What's the Beef? Food-Inflation Fears from WSJ.com

o Cattle prices are soaring toward records, pushing up beef prices in stores, with gains fueled by rising appetites globally and a dwindling U.S. herd.

o Heineken stock rises..beasts estimates today

o Costco's newest role: mall anchor from NY Post

o Costco Wholesale Corp. is taking on the role of mall anchor, moving into spaces once occupied by department stores that for decades reigned as the retail centers' big draws. Costco plans "to accelerate" steps that will in essence put its mini-mall type stores into shopping centers, the store's chairman...

o Nestle SA hasn�t decided what it will do with its stake in L�Oreal, Handelszeitung

o CSTR Coinstar enters agreement to sell its money transfer business to Sigue Corporation for $41.5M

o KO The Coca-Cola to re file HSR application to FTC for approval of acquisition of N American bottling business of Coca-Cola Enterprises (CCE)

o OMEX Odyssey Marine Exploration discloses purchase agreements

o RUBO Rubio's announces closing of purchase by Mill Road Capital

o PSUN -6.1% (earnings) ..PSUN Pacific Sunwear reports Q2 EPS

o John Koelmel, CEO of First Niagara Financial (FNFG), talks up the bank's recent merger with New Alliance Bancshares (NAL). He adds that the bank remains committed to its 4.78% dividend yield and is always looking to drive meaningful returns for its shareholders. Cramer remains positive. � Cramer on CNBC

GAMING, LODGING, & LEISURE

o Cramer says that Las Vegas Sands (LVS) has pulled off one of the greatest turnarounds in history. He adds that the company's bet on its properties in China's Macau and in Singapore are paying off big. While Wynn Resorts (WYNN) remains Cramer's favorite casino stock, at just 26x earnings, Las Vegas Sands is a steal.� CNBC

FINANCIALS

o Canadian bank report this am�CIBC Third Quarter Cash EPS Ex Items C$1.66, Est. C$1.53

o US banks pay record-low rates from NY Post

o Us banks, such as Citigroup and Bank of America, are paying savers the lowest average rates on record amid elevated joblessness and weak loan demand, data collected by Market Rates Insight shows. Rates paid on interest checking, savings, money market and certificates of deposit fell in July to a national...

o Frank to hold hearing on regulation of Wall Street pay practices from Wash Post

o Rep. Barney Frank, chairman of the House Financial Services Committee, said Tuesday that he will hold a hearing this fall to examine whether regulators are being tough enough in curbing pay practices at Wall Street firms that can lead to excessively risky practices.

o AIG to decide on AIA pre-IPO sale by next week-sources from Reuters

o AIG discloses in filing details of CEO Robert Benmosche�s� achievements that allowed him to earn a $3.5m performance-� linked bonus after joining the company a year ago

o

o Goldman Meets Chinese Version of Taibbi from DealBook

o Goldman Sachs, reviled in the U.S. for its role in the financial crisis, is now getting hammered in the world's No. 2 economy with a sensationalist new book accusing the investment bank of trying to destroy China

o Landsbanki Bond Holders Will Get Next to Nothing, Minister Says - BBG

o Creditors of failed Icelandic lender Landsbanki Islands hf will get next to nothing back from their investments after assets are sold to cover the bank�s priority claims, Finance Minister Steingrimur Sigfusson said.

o FMR First Mercury Financial extends share repurchase program; declares unchanged dividend

o CME Group looks into tweaking its swap-clearing platform - WSJ

REAL ESTATE

o MBA Mortgage purchase applications index +0.6% in 20-Aug week; total market index +4.9%

o compares to (3.4%) and +13.0%, respectively, in prior week

o refi index +5.7% vs. +17.1% in the prior week

o 30-yr fixed rate (5)bp vs. the prior week at 4.55%.

o Homebuilder:� TOL in line (.16) revs 50million better and ceo talked of buying up "cheap "properties in spite of housing weakness..but taxes help�

o Toll Brothers Inc. (TOL) posted a surprise fiscal third-quarter profit, its first in nearly three years, as revenue fell far less than analysts expected even as the luxury homebuilder saw a drop in contract signings amid fewer available communities.

o Net orders were down 16% - mostly in line with consensus

o gross margin better

o deliveries guidance mixed:� �upped �low end of its guidance for FY10 deliveries from 2,200 to 2,500 and cut �top end from 2,750 to 2,700.

o Comments suggest no material pick-up in demand since the late May (per citi)

o Call 2PM et

o BAC:� Bank of America Corp., the biggest U.S. lender by assets, is seeking about 1 million square feet of office space in New York City and may consider 1 World Trade Center � BBG

o Manhattan's Rental Market Now Cautiously Optimistic for Fall � Curbed link

o This month, rents are up only a small 0.37 percent since July, but they're up 4.64 percent since last August. Vacancy has fallen again, and landlords are turning a slightly less friendly on temporary walls put up by residents hoping to bring in a few roommates and save money.

o MAC, VNO, SPG etc��WSJ�

o Commercial landlords defaulting on purpose

o Some of the largest commercial property owners in the country -- including Macerich, Vornado Realty Trust and Simon Property Group -- have recently stopped making mortgage payments to put pressure on lenders to restructure debts, the Wall Street Journal reported. In a process known as �jingle mail,� some companies are also sending lenders the keys to properties whose values had fallen below the mortgage amounts. Though the companies can all afford to pay, they are opting to default because they believe that it's a good business decision. [more]

o More recent mortgage modifications seem to be sticking from L.A. Times

o Homeowners whose loan payments were reduced in 2009 are falling back into default less often than those who got modifications in 2008

o Homeowners who had mortgages modified recently are faring better than those who did so earlier in the housing crisis

o Home sales plunge, fueling concern about the U.S. recovery

o Sales of existing U.S. homes fell to their lowest level since 1999 in July, raising concern that the economy is weakening and headed into a long period of stagnation or a double-dip recession. The National Association of Realtors said home sales dropped 27.2% between June and July, a bigger decline than expected. For single-family houses, which account for most residential transactions, the sales rate was at its lowest since May 1995. Los Angeles Times (25 Aug.) , PBS (24 Aug.) , The Economist/Free Exchange blog (24 Aug.)

o Pimco's Gross calls for a strong government role in housing finance

o Bill Gross, head of Pacific Investment Management, said there is no practical alternative to major U.S. government support for housing finance. He proposed merging all government entities involved in housing, including Fannie Mae and Freddie Mac, into a single entity responsible for helping people get home mortgages. StreetInsider.com/Insiders' Blog (24 Aug.) , Housing Wire (24 Aug.)

o Report: Fewer recently modified mortgages are falling into foreclosure

o Recent mortgage modifications in the U.S. are more successful at keeping borrowers from losing their homes in foreclosure than those completed earlier in the housing crisis, according to a report by the State Foreclosure Prevention Working Group. Homeowners who obtained a mortgage modification in 2009 were nearly 50% less likely to fall 60 days behind on their payments compared with those whose mortgages were modified in 2008, according to the report. Google/The Associated Press (24 Aug.)

o Wells Packaging CMBS Again, a Nemesis for the Wachovia It Absorbed from American Banker

o Wells Fargo is plunging back into the commercial mortgage-backed securities market that helped fell Wachovia, the banking company it bought in 2008 for $12.7 billion.

o A matter of feng shui from NY Post

o Vornado Realty Trust's proposed 15 Penn tower could create negative "chi" -- energy -- in the neighborhood and kill a major deal at the Empire State Building. It will also certainly affect worldwide visitation to the Empire's 86th-floor observatory, which would look directly into the face of Vornado's "Giant Finger."

o SNH Senior Housing corporate credit rating upgraded to 'BBB-' from 'BB+' by S&P; the rating is now the lowest investment grade, upgraded from junk. The outlook is stable.

o GYRO Gyrodyne announces that the Court of Claims entered judgment on 17-Aug with respect to the Court's recent finding in favor of Gyrodyne of $125M

HEALTHCARE

o Stem-Cell Ruling Puts Labs in Limbo from WSJ.com

o Experiments using human embryonic stem cells are in a state of limbo across the country, following a judge's injunction on Monday to block any such research funded by the federal government.

o "Stunned" government to appeal stem-cell ruling from Reuters

o �Stunned and disappointed Obama administration officials said on Tuesday they would appeal a federal court ruling that temporarily barred federal funding of embryonic stem cell research.

o AARP Says Brand-Name Drug Prices Up 8% in 2009 from NYT

o Drug industry officials countered that selecting brand-name drug prices did not reflect the reality of more people using low-price generic drugs

o KEQU Kewaunee Scientific reports Q1 EPS

o PMC Pharmerica authorizes $25M stock repurchase program

o Obama administration to appeal embryonic stem cell decision-- AP

o VAR Varian Medical announces $225M accelerated stock repurchase; increases its revolving credit facility

o AGAM AGA Medical files patent infringement suit against W.L. Gore

o ERES eResearchTech initiated buy at Madison Williams and Company; target is $10.

o NSPH Nanosphere acquires rights to intellectual properties from Eppendorf AG

o CERS Cerus Corporation to acquire BioOne's commercialization rights for the Intercept Blood System

o ULGX Urologix reports Q4 EPS

o ALTH Allos Therapeutics announces departure of Chief Commercial Officer James Caruso

o ZGEN Zymogenetics completes enrollment in Phase IIb trial with PEG-Interferon lambda in hepatitis C

o OGEN� Oragenics files $23M offering through ThinkEquity and Caris & company

OTHER STORIES

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

+ LVS, WINN, FNFG, NAL, F and C

- RIMM and WAG

EUROPE TRADING WRAP

o Oils

o Tullow Oil (-6%). 1H figures come in inline, but announce potential delays with their Ugandan projects due to ongoing disputes with the Ugandan government over tax payments due following their purchase of Heritage Oils stake.

o Sevan Marine (+4.5%). Swings to a 2Q profit and reports lower operating expenses.

o Metals and Miners

o BHP Billiton (-0.1%). FY figures come in slightly below consensus, but dividend of 45c was as expected.

o UK Coal (+6.5%). UK Coal expect to sell off a third of their farmland by the end of the year.

o Financials

o ADMIRAL GROUP 1H NET 90.3M PNDS VS 75.4M PNDS :ADM LN

o Resolution Rated New Buy at UBS; PT 262p

o AGEAS 1H NET EU455 MLN VS EU886 MLN :AGS BB

o Citigroup up Greek Banks price targets

o TMT

o WPP price tgt upped @ Goldmans and Citi after numbers yesterday however stock still languishing down 0.5%

o PHILIPS being pushed @ C.Suisse after stock has underperformed the sector by 15%, trading up 2.6%

o Telenor confirms started buyback with purchase of 869k shares on the 24^th August

o Cons. Pharma. Real Estate

o HEIA NA +2% H1 figs beat/ organic beer volume decrease not as bad as predicted/ cost cuts plan going well

o EDEN FP +1% H1 recurring pft 72m/ sees 2010 ebit 300-330m

o DLN LN +1% turns pft as west end values rebound - net 209.9m vs loss 207.8

o OR FP figs after close

o Mid cap / Smaller Co's trading update

o Corac Group (CRA LN) signed agreement with independent exploration co. with gas interest in the U.S.

o Stock up 13.5%

o Johnston Press (JPR LN) Reports 1^st half figs slightly better than expected. Altium Securities say stock undervalued

o Stock up 12%

o Admiral (ADM LN) reports 21% rise in 1^st half profits. Stock up 4.5%

o Severfield (SFR LN) reports worse than expected figs Pre Tax �6.33m v�s �24.8m, divi cut 5p (10)

o Shares down 6.2%

HEINEKEN's 1H net profit above forecasts

REAAL1H net profit below expectations

TKH GROUP posts 1H net profit of EUR 16m

ACKERMANS & VAN HAAREN 1H results in line with

AGEAS 1H net income exceeds expectations.

AGFA-GEVAERT 1H ahead of forecasts

OPERA narrows 2010 revenue guidance range

SEVAN MARINE: 2Q net loss narrower than forecast

VOLVO truck deliveries up 62% y/y in July

DEVGEN posts smaller than expected 1H net loss

EDENRED posts 1H operating profit of EUR 155m

SCOR: Fitch upgrades rating outlook to positive

AIR BERLIN quarterly profit hit by one-off volcanic ash

BHF-Bank baulks at being sold to financial investor

DEUTSCHE TELEKOM: US wireless spectrum auctions upheld

Hapag-Lloyd mulls returning state loan guarantees

VTG reports 1H operating profit of EUR 31m

ASCOM reports higher profitability for 1H

ADMIRAL: 1H PTP climbs 21%

AGGREKO sees FY slightly ahead of expectations

JOHNSTON PRESS: 1H profits ahead of ests, trends

SERCO: H numbers broadly in line, keeps guidance TULLOW OIL: Uganda deal dependent on Heritage tax dispute

ASIA TRADING WRAP

� Japan

� NKY-1.66%, TPX -1.27%

� NKY fell to 16-mth closing low after the yen hit 15-yr high against the dollar as dismal US housing data added to fears the global economic recovery would fizzle out. Hopes for action by the government and BoJ on the yen had provided some early support after Nikkei reported the Ministyr of Finance may consider unilateral yen-selling market intervention. But investors dump shares in late trade following a lack of policy action. Turnover on the TPX rose to 1.04 trillion yen from 881.13B yen yesterday

� Stocks fell across all sectors led by oil & gas, tech, financials, materials, industrials, consumer and telecom

� Exporters fell on a strong yen: autos -2.35%, CE -0.75%, precision -1.74%

� Tech -1.69% tracking their US peers

� Traders -1.36% after commodities prices fell

� Best performing sectors on the TPX: land transport -0.03%, electric power & gas -0.21%, airline -0.32%; worst performing sectors: oil & coal -2.19%, transport equipment -2.14%, shippers -2.09%

� Hong Kong

� HSI -0.11%; HSCEI -0.67%

� Stocks fell on concerns global economic recovery might falter after US home sales disappointed. Turnover on the HSI rose to HK$17.72B from HK$12.29B yesterday

� China

� SHCOMP -2.03%; SZCOMP -2.12%

� Stocks fell on signs the global economic recovery is slowing. Weighing on the market 8 IPOs are due this week, analysts estimate they will freeze ~800B yuan in subscription funds. Turnover on the SHCOMP rose to 103.19B yuan from 88.83B yuan yesterday

� Stocks fell across all sectors led by tech, utilities, materials, industrials, financials and consumer

� Mining -2.34%, metal -2.80% after commodities prices fell

� Real estate -2.92%. Xinhua reported the government is studying a property tax

INVESTMENT BANKING

M&A

o POT Potash deal talk continues to dominate the M&A spectrum

o BHP reports a misses EPS, cautious outlook�iron ore and energy coal a bit disappointing

o Reuters discusses all available options for POT Potash Corp

� http://www.reuters.com/article/idUSN2426770620100824

o BHP plans to ask for early end to POT Potash pill- Reuters

� BHP Billiton plans to ask a Canadian commission to end Potash Corp's poison pill shareholder rights plan early if the bid appears likely to receive regulatory approval

� Potash Corp adopted a 90-day, "poison pill" shareholder rights plan last week in response to BHP's hostile $39 billion bid, and that plan would trigger a massive dilution in shares if a single investor acquires a stake of more than 20 percent

� http://www.reuters.com/article/idUSN248357520100824

o BHP CEO: to stay disciplined in POT Potash bid- Reuters

� BHP Billiton Chief Executive Marius Kloppers vowed on Wednesday not to overpay for Potash, which it is chasing with a $39 billion hostile offer

� �Let me stress, as always, we will remain disciplined,"

� http://www.reuters.com/article/idUSSYA00829320100825

o BHP faces hurdle of shareholder vote- FT

� BHP Billiton will be forced to put its hostile bid for Canada�s PotashCorp to a shareholder vote if the global mining group has to significantly increase its $39bn offer to win over PotashCorp�s investors

� http://www.ft.com/cms/s/0/b936a6e8-afa9-11df-b45b-00144feabdc0.html

o BHP bid for POT Potash could have an issue with A potash cartel-WSJ

� The 1970s-era cartel, Canpotex Ltd., lets its members negotiate prices together overseas. But BHP doesn't want to sell through the cartel, which typically handles more than a quarter of the world's exports of potash, a key form of fertilizer

� Canpotex's influence has long irritated China, one of the world's biggest potash buyers and a source of other potential bidders for Potash Corp.

o BHP's embarrassment of riches- Business Spectator

� With this remarkable result, BHP Billiton is in a surprisingly awkward position. If Kloppers can't pull off the PotashCorp acquisition, he will struggle to find an alternative depository for all this wealth.

� http://www.businessspectator.com.au/bs.nsf/Article/BHP-Billiton-Rio-Tinto-earnings-PotashCorp-mining--pd20100825-8NB8N?opendocument&src=rss

o Rio Tinto will not counterbid for POT Potash- Telegraph

� Tom Albanese, Rio's chief executive, has declined to comment on whether Rio would be interested in bidding for the group. However, in an interview in China last week he said: "I'm not a farmer, I'm a miner."

� Mr Albanese also recently told analysts at a presentation that he was not looking at large acquisitions and he has previously said that any purchases will be "in the single digit billions."

� http://www.telegraph.co.uk/finance/newsbysector/epic/rio/7962386/Rio-Tinto-will-not-counterbid-for-Potash.html

o China's Sinochem International has said it is "evaluating" a bid for Canada's Potash the world's largest fertilizer maker, after a BHP Billiton (BHP) bid was rebuffed � DJ

o SEC Charges 2 With Insider Trading in Potash- CNBC

� Two Spanish residents were charged with insider trading in Potash Corp before BHP Billiton announced its unsolicited bid for the Canadian fertilizer company, the U.S. Securities and Exchange Commission said on Tuesday.

� http://www.cnbc.com/id/38839614

o 3Par bidding war talks continue

o PAR 3Par Says Will Enter Into Merger Negotiations With HPQ

o DELL has until Thursday to match HPQ offer for PAR 3PAR- 14D filing

� 3PAR board has determined, among other things, that HP�s acquisition proposal is a �Superior Proposal� (as that term is defined in the Merger Agreement), (ii) 3PAR has informed Dell of this determination, (iii) after informing Dell of this determination, 3PAR has given Dell three business days to negotiate an amendment to its Merger Agreement with 3PAR

� http://www.reuters.com/article/idUSN2424532020100824

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

� Dell Inc. is readying a sweetened offer for data-storage provider 3Par Inc. after its earlier bid was bested by a $1.6 billion proposal by Hewlett-Packard Co

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

o �proxy access� rule : US businesses alarmed at SEC plan from Financial Times

o Corporate America senses a revolution in the offing on Wednesday � and one it finds deeply alarming

o Burkle battle drains BKS- NYPOST

o Barnes & Noble swung to a loss in its first quarter, partly blaming the elevated legal costs related to its battle with billionaire Ronald Burkle

o The beleaguered book retailer, which put itself on the block this month, said yesterday results were also slammed by sagging same-store sales and by heavy investments in digital books as it fights competition from Amazon and Apple.

o http://www.nypost.com/p/news/business/burkle_battle_drains_42cOBTMaZFHkOG1phUc1sM?CMP=OTC-rss&FEEDNAME=#ixzz0xbwhU94s

o RIMM acquiries Cellmania- AllThings Digital

o RIM has quietly purchased Cellmania, mobile content platform and white-label app store provider for the likes of Sprint (S) and AT&T (T).

o Beyond confirming the acquisition, RIM (RIMM) offered no comment, but it�s likely Cellmania�s technology and expertise will be brought to bear on BlackBerry App World, which could certainly use the help.

o http://digitaldaily.allthingsd.com/20100824/rim-buys-cellmania/?mod=ATD_rss

o Founder may buy back Washington Times- Reuters

o U.S. newspaper the Washington Times may be bought back by its founder the Rev. Sun Myung Moon from his eldest son Preston Moon

o Preston Moon has threatened to shut down the struggling broadsheet altogether

o http://www.reuters.com/article/idUSSGE67O09020100825

o ONGC divided on Cairn India counter-bid- Business Standard

o State-run Oil and Natural Gas Corp (ONGC.BO) is divided over making a counter-bid for Cairn India (CAIL.BO), which is the target of a $9.6 billion takeover offer by Vedanta

o Citing unidentified ONGC officials, the newspaper said making a $10-billion counter-bid may prove counter-productive and unviable for the Indian oil explorer and producer.

o http://www.reuters.com/article/idUSTRE67O0KQ20100825

o Cairn expects Indian sale to go ahead as Greenland test wells look promising- Telegtaph

o Sir Bill Gammell, chief executive of Cairn, still believes the sale of key oilfields to Vedanta will go ahead, despite official warnings that the Indian state oil company has the power to derail the deal.

o http://www.telegraph.co.uk/finance/newsbysector/epic/cne/7962582/Cairn-expects-Indian-sale-to-go-ahead-as-Greenland-test-wells-look-promising.html

o Posco to Sign Daewoo Deal- WSJ

o Posco said it will sign a final contract to buy a majority stake in Daewoo held by state-run Korea Asset Management and other creditors, as the South Korean steelmaker aims to secure a steady supply of raw materials and diversify its business operations.

o http://online.wsj.com/article/SB10001424052748703632304575450774030274484.html?mod=WSJ_business_whatsNews

o EdgePoint opposes Boralex offer, not to tender units- Reuters

o Canada's EdgePoint Wealth Management said it will not tender its 1.9m units of Boralex Power Income Fund to the revised offer by Boralex and called the offer "inadequate".

o http://www.reuters.com/article/idUSSGE67N0IO20100824

o CSTR Coinstar to sell money transfer business for $41.5 mln- Reuters

o Coinstar Inc (CSTR.O), owner of DVD rental company Redbox, agreed to sell its money transfer business to privately held Sigue Corp for an expected price of $41.5 million, in order to focus on its automated retail business.

o http://www.reuters.com/article/idUSSGE67N0IR20100824

o PKD Parker Drilling says GPA Energy to end rig contract- Reuters

o Contract driller Parker Drilling said its customer, Mexican oil and gas explorer GPA Energy, intends to terminate a contract for two rigs in northern Mexico under force majeure provisions

o One of the rigs was scheduled to end operations this month, while the other was contracted through the second quarter of 2012

o http://www.reuters.com/article/idUSSGE67N0IQ20100824

o CTL CenturyLink�s Takeover of Q Qwest Is Approved- Dealbook

o Shareholders approved the $10.6 billion takeover of Qwest Communications International by CenturyLink on Tuesday

o Both companies said they won the support of 97% of votes at meetings held in Monroe, La., where CenturyLink is based, and Denver, where Qwest is based.

o http://dealbook.blogs.nytimes.com/2010/08/24/centurylinks-takeover-of-qwest-is-approved/

o Lufthansa Says Intercontinental Airline Mergers to Increase- BBG

o Deutsche Lufthansa AG, the German airline that acquired three European carriers last year, said industry mergers combining partners from different parts of the world will rise as companies seek higher margins

o �The trend toward consolidation will become more intercontinental in the next years than is currently the case,�

o Nestle c'man says not decided on L'Oreal stake- Reuters

o The Vevey-based maker of Nescafe coffee and KitKat chocolate bars, holds a 30 percent stake in the French cosmetics group and some analysts believe Nestle is undervalued due to uncertainty over whether it will opt to sell or raise its L'Oreal holding

o http://www.reuters.com/article/idUSTRE67O19Z20100825

o UBS to Create M&A Team for China, Headed by Partnow- BBG

o UBS AG will create a mergers and acquisitions team in China headed by Philip Partnow, after the country�s share of global transactions more than doubled in the past three years

o �China M&A has become increasingly important to us and will be both an important revenue stream and a critical part of our coverage strategy with key clients,� said Partnow

o China's Alibaba makes 2nd buy to target US vendors- Reuters

o China's largest e-commerce company, Alibaba.com, made its second U.S. acquisition in as many months and its chief executive said on Tuesday he was working on more deals to fuel global growth.

o The Chinese company said it has entered into an agreement to buy Auctiva, which provides listing and marketing tools to vendors on e-commerce websites like EBAY

o http://www.reuters.com/article/idUSN244686920100825

o European cosmetic chemicals set for more M&A- Reuters

o The European chemicals sector is set for more consolidation as plain Jane chemicals giants eye recession-proof beauty additives for a makeover, following the example of BASF's recent buy of Cognis

o http://www.reuters.com/article/idUSTRE67N2AI20100824

o RBS Kicks Off Priory Sale; First Bids Due Mid-Sep- DJ

o Royal Bank of Scotland PLC (RBS) has kicked off the sale of health-care provider the Priory Group, and first bids are due by mid-September

o Lawyer Says Lehman Didn't Object To Changes In Barclays Deal- DJ

o No one from Lehman Brothers objected to the terms of a "clarification letter" that made last-minute changes to the terms of Barclays September 2008 acquisition of Lehman's broker-dealer business, a key drafter of the letter said in bankruptcy court Tuesday

$ RAISING

IPOs

o IPO Backlog Rises in August- trimTabs

o Backlog rose to 116 Deals Expected to Raise $26.0 Billion.� How Many of These Deals Will Get Done?� IPOs Total Less Than $3 Billion in Each of Past Nine Months. The IPO backlog remains jam-packed.�

o Dealogic reports that 116 deals expected to raise $26.0 billion were in the pipeline as of August, up from 28 deals expected to raise $15.8 billion in August 200

o Facebook�s �value� soars as investors seek pre-IPO stake- FT

o Facebook is now worth as much as $33.7bn based on secondary market transactions, giving the privately held company an implied valuation greater than the market capitalisations of publicly traded internet stalwarts such as Ebay and Yahoo

o http://www.ft.com/cms/s/0/054fc0ee-afa7-11df-b45b-00144feabdc0.html

o AIG to decide on AIA pre-IPO sale by next week- Reuters

o Some Chinese investors have expressed interest in buying stakes in AIA ahead of the IPO. But expectations are running low for the pre-IPO auction to lead to a big deal due to the limited time available

o "The IPO train is moving quite quickly. That means there is limited ability to stop for a strategic investor to come on board and do due diligence and negotiate price,"

o http://www.reuters.com/article/idUSTOE67O06R20100825

o Oman Nawras telco plans Sept 20 IPO launch- Reuters

o Oman's Nawras, a subsidiary of Qatar Telecom� is set to launch an initial public offering on Sept. 20, a source close to the deal said on Tuesday, the first from the sultanate this year.

o http://www.reuters.com/article/idUSLDE67N14W20100824

o Promethean's 40pc slide makes it one of the worst performing IPOs of the year- Telegraph

o The group, which floated in March at 200p, fell 19.9pc to 119p on Tuesday amid concerns over the potential impact of government spending cuts on education budgets.

o http://www.telegraph.co.uk/finance/newsbysector/supportservices/7962781/Prometheans-40pc-slide-makes-it-one-of-the-worst-performing-IPOs-of-the-year.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 Landsbanki Bond Holders Will Get Next to Nothing, Minister Says- BBG

o Creditors of failed Icelandic lender Landsbanki Islands hf will get next to nothing back from their investments after assets are sold to cover the bank�s priority claims

o �The general claimants in Landsbanki are not likely to get much, if anything,� Sigfusson said in an interview in Reykjavik yesterday

o Corporate Debt 'Wall of Maturity' Crumbling -� DealBook

� Financial markets are knocking down a wall of debt maturity that has endangered the U.S. economic recovery and threatened to push more companies into bankruptcy

� Companies must refinance about $400 billion in debt over the next five years

� But that mountain of debt has shrunk by more than 25 percent over the last two years as lenders agreed to extend favorable terms rather than forcing repayments

o Loans mkt: All junk, all the time - FT

� various reasons for why this year�s junk bond rally had been surprisingly persistent.

� But how does this relate to the market for junk loans, better known as speculative-grade or leveraged loans?

� http://ftalphaville.ft.com/blog/2010/08/25/325061/all-junk-all-the-time/

o Tech: VRNT Verint Systems files 2.4M share secondary offering for holder Comverse Technology (CMVT)

o OGEN� Oragenics files $23M offering through ThinkEquity and Caris & company

TODAY�S EVENTS

o CONFERENCES

o Barrington Research Healthcare Conference - Aug 25, 2010

� NTS: SIRO , XRAY

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

o Citi Hong Kong/China Mini Conference - Aug 25, 2010

o Commerzbank Real Estate Conference

� NTS: AOX.F , BFLBF.PK , DAZ.F , DEQ.F

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

� 10:25AM: BPZ

� 10:50AM: PVA

� 11:15AM: CPE

� 12:05PM: DNR

� 12:30PM: ATPG

� 12:55PM: PKD�

� 1:20PM: GMET

� 1:45PM: TRGL�

� 2:20PM: ECA

� 3:30PM: AREX , RES

� 3:55PM: GST

� 4:20PM: HAWK , IVAN

� 4:45PM: END , PDS�

� 5:10PM: NFG�

� 5:35PM: KEG , REXX�

� 6PM: WRES

o JYSKE Bank Global Wealth Management Seminar� - Aug 25, 2010 - Aug 29, 2010

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

o Morgan Stanley Semi and Semi Cap Equipment Investor Day

� NTS: ATHR , ENTR , LSCC , MU , MXL , SWKS

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

o UBS Swiss Small and Mid Cap Summit

� NTS: BSLN.S , CLN.S , PGHN.S

o Washington Biotechnology & Biomedical Association Healthcare IT - Aug 25, 2010

o TODAY�S EVENTS

o Shareholder Meetings

� CVLT, PNBK, KEQU, OPBL, SERV, MDT, MTXX, GFCB

o ECONOMICS

o 0700 MBA Mortgage Applications Survey

o 0830 Durable Goods

o 1000 New Residential Sales

o 1030 EIA Weekly Petroleum Status Report

o EARNINGS

o Materials

� SHLO

o Consumer/Retail/Education

� AAIR, AEO, BWS, CWTR, GES, RUE, SCVL, PERY, DLIA, HFKI, JAS, GAI, HAIN

o Financials

� SMBC

o Healthcare

� KV/A, CYBX, KEQU, SYNO

o Industrials/Homebuilders

� TOL, HEI, OSIS, RAVN

o Tech/Telecom

� TIVO, PRCP, SIGM, SMTC, VSNT, KONg, TTIL, SDXC, AVNW, JDSU, XING, LYON

***All eco data from Bloomberg and DJ

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