Morning @ Cantor
Morning
@ Cantor 9/1 Today’s
Stories From Cantor Fitzgerald Sal
Catrini (908) 517-5067 CONTENTS: All
Headings Are Functioning Links
Sector News: Energy, Industrials, Transports, TMT, Materials, Autos, Fins, Real Estate, Consumer, Gaming/Lodging, HC, Other
Stories, Europe Trading Wrap, Asia Trading Wrap
Investment Banking Wrap: M&A, Money Raising
o US
Stock Futures
o
S&P Futures SPs
up 12, near session highs as new month starts
- better China PMI and great Aussie data overnight help..offset mixed EU
macros ..
o
Dollar at lows at 7am et…dn 0.646 to
82.226….big move down (
o
Crude up 57c…
o
Gold up $4
o
China
Shares End Down; Small-Cap Profit-Taking Outweighs PMI
o
EU
stocks up 1.3% near highs at 7am et…EU
Miners up and copper up 1.2% and at a 4 month high post China PMI data
overnight
§
EU Media, construction gain as companies such
as Vivendi, Vinci beat estimates.
o
Today's
macro highlights in US
include Aug ADP Employment and ISM
o Rates up big wed….10 yr
dn half point at 7am et…Fed Minutes Signal Bigger Monetary-Policy Move No Sure
Thing (BBG)
o Rates
in focus: As we turn to September the economic data for
the remainder of the week will focus employment with the ADP report
today and the labor departments report
on Friday. The Fed will also be conducting its 6th purchase tomorrow in the
2/12-1/13 sector, and the Treasury will be auctioning $10Bln 10y TIPS Thursdays
along with announcing next weeks 3y, 10y and 30y auction sizes
o US
libor: 3-month:
Dollar: 0.296% vs prior 0.296%;
o
China
PMI: came in at 51.7 and was expected at 51.5…
§
China's official PMI accelerated to 51.7 in
August from 51.2 in July, the first rise in the index following three months of
declines.
o EUR/USD
climbed over 100 pips towards 1.28 level on talk of decent buying by Far East names. The GBP/USD
stumbled to test below 1.5345 level after its softer PMI reading but recovered
on the back of a recovery in European equity prices. TTN
o
Gold: Reportedly China
PBoC Advisor Zou Pingzuo warning of risks in gold price "plunge" amid
heavy selling by central banks - TTN
o
China vs US:
USD/CNY: US Commerce Department decided not to investigate allegations
that China currency practices constitute as an unfair subsidy despite findings
that conclude the China Gov't unfairly subsidized $514M of aluminum exports to
the US last year - China Daily, BBG
o
China vs US: USD/CNY: WSJ comments on further displeasure
by US Treasury Dept regarding China slow progress on currency reform, having
only adjusted Yuan by 0.3%
o
China vs US: Mixed
Ruling on Chinese Aluminum – WSJ link
·
Hurricane Earl Forecast: Storm Increasingly Likely for
New York
o
Earl Weakens to a Category 3-Stage Hurricane
With 125 MPH Winds
o
Emergency agencies are preparing for
Hurricane Earl, which threatens to
graze North Carolina and lash coastal
Massachusetts with wind and rain before going ashore in Nova Scotia - BBG
o Overseas
Action
o
Europe markets:
§ EU stocks up 1.3% near highs at 7am
§ took
comfort in the Spain's PM comments that China would continue to support the
Euro Zone and its Gov't bonds
o Asian
Markets:
§ Asian
Markets: Nikkei +1.17%; Hang Seng +0.43%; Shanghai Composite (0.60%)
§ Tokyo stocks rose Wednesday as bellwether exporters
such as Canon and Olympus rebounded on brisk economic data from China and a
pledge by Democratic Party of Japan presidential candidate Ichiro Ozawa to
intervene in currency markets to curb the yen's steep rise if elected party
leader. DJ
§ China Shares End Down; Small-Cap Profit-Taking
Outweighs PMI
§ China
Real-estate developers also fell after China's banking regulator
reiterated Tuesday it will firmly curb speculative investment in the sector.
§ China Vanke Co. (000002.SZ), the country's largest
property developer by market share, said Beijing's recent efforts to rein in
the property market will have a "significant" impact and end the
rapid price rises in some cities. DJ
§ Australia best worldwide performer…Shares End Up 2.1% After
Strong Economic Data
§ Aussie
dollar up over 1% today on data as well
§ THAI
SET INDEX RISES TO HIGHEST SINCE 1996, BEFORE ASIAN
CRISIS
o Data:
§
ABC/Consumer Confidence (45) in 29-Aug week
vs (44) in prior week
§ MBA Mortgage purchase applications
index +1.8% in 27-Aug; total market index +2.7%
§
CHINA
AUG PMI MANUFACTURING: 51.7 V 51.5E (1st increase after 3 months of decline)
§
AUSTRALIA
Q2 GDP Q/Q: 1.2% V 0.9%E (3 year high)
§ German
Retail Sales Fell Unexpectedly In July
·
Germany
July Retail Sales M/M: -0.3% v 0.5%e
§
Germany
Aug Final PMI Manufacturing: 58.2 v 58.2e; Lowest reading since Feb
§
Euro Zone Aug Final PMI Manufacturing: 55.1 v 55.0e
§ France
Aug Final Manufacturing PMI 55.1 vs preliminary 54.7.
§ UK
August Manufacturing PMI 54.3 vs consensus 57 and prior downwardly
revised 56.9
§
Sweden's
Think Tank NIESR
raised its 2010 GDP forecast to 4.3% from 3.7% prior and also raises its 2011
GDP forecast to 3.4% from 3.0% prior June view
o Economics today:
o MBA Mortgage Purchase Applications at 07:00
ET
o Aug Challenger Layoffs at 07:30 ET
o Aug ADP Employment Report at 08:15 ET
o Jul Construction Spending at 10:00 ET
o Aug ISM Index at 10:00 ET
o Autos sale hit
o Retail SSS start wed into thurs morning
o
Fed’s Duke speaks at Washington summit on
foreclosures and vacant properties,
10:45 a.m.; Fed’s Evans speaks, 5:15 p.m.
o
Fed’s Fisher speaks on U.S. economy in
Houston, 2:40 p.m.
o
U.S. Fed Purchases Notes/Bonds, 11 a.m.
- Earnings:
o Companies due to report after the close
include: BF.B, HNZ (preliminary results reported yesterday), JOYG
o Companies reporting after the close include: SAIC
o
Express (EXPR), before-mkt, $0.07
o
Bombardier (BBD/B CN), 6:01 a.m., $0.08
o
Joy Global (JOYG), 6:30 a.m., $1.02
o
H.J. Heinz (HNZ), 6:34 a.m., $0.73
o
Charming Shoppes (CHRS), 7 a.m., $0.07
o
Brown-Forman (BF/B), 7:45 a.m., $0.83
o
Borders (BGP), 8 a.m. $(0.13)
o
Collective Brands (PSS), 4 p.m., $0.46
o
Martek Biosciences (MATK), 4 p.m., $0.36
o
SAIC (SAI), 4:02 p.m., $0.34
o
Greif (GEF), 4:15 p.m., $1.19
o
Hovnanian (HOV), 4:30 p.m., $(0.53)
o
Harry Winston (HW CN), 5:16 p.m., $0.05
o
Canadian Western Bank (CWB CN), 6 p.m.,
C$0.45
o
AAPL:
Apple’s event Wednesday
o
Apple to announce $0.99 rentals from
Fox (NWSA), ABC (DIS) tomorrow – WSJ
o http://blogs.wsj.com/digits/2010/08/31/apple-set-to-announce-99-cent-fox-abc-rentals/
- Dick
Fuld in front of FICC today
o
Richard Fuld, former chief executive officer
of Lehman Brothers Holdings Inc., said regulators relied on “flawed
information” in denying his company aid that was extended to competitors. “Other firms were hurt by their plummeting
stock prices,”Fuld, 64, said in prepared remarks submitted to the Financial
Crisis Inquiry Commission for a hearing in Washington today. BBG
o
Top M&A
o BKC:
WSJ(9/2) Burger King Is In Talks Over Possible Sale. A spokeswoman for Burger King declined
comment. 3i wasn't available for comment.
o PKI PerkinElmer to sell IDS Solutions business
to Veritas Capital for approximately $500M
o
SLRY : Kenexa to acquire Salary.com,
reiterates guidance
§ KNXA
will hold an 8ET conference call to discuss the acquisition (877.407.9039).
o SKS
sale to buyout firm not imminent - NY Post
§
Some big-name luxury brands may be on the
block, but prospective acquirers are mostly window-shopping.
o
Dollar
Thrifty Automotive . (DTG) raised its 2010 adjusted earnings estimate,
as the rental-car company saw continued strength in operations and benefited
from cost-control efforts
§
The company is currently the target of a
bidding war between Avis Budget Group Inc. (CAR) and rival Hertz Global
Holdings Inc. (HTZ) - BBG
o
DF: Dean Foods Advances on Speculation Danone
Will Make an Offer – BBG
o
TUI
Travel Gains Most in Three Months on TUI Buyout Speculation – BBG
o
COGT Cogent's third-largest shareholder to
"vigorously oppose" sale to 3M (MMM) - LA Times
§
said in a letter to Cogent’s board on Tuesday that it believed the firm
was worth at least $15 a share, or 43% more than the $10.50-a-share 3M buyout
that Cogent accepted on Monday.
o
Fresnillo trading higher on Daily Mail report
of a bid interest from Mexico's Carlos Slim – SA
o DELL,
PAR, HPQ: Dell mulls its next move in
3Par bid war – NYP
§ Dell isn't quite ready to bow out of the bidding war
with rival Hewlett-Packard for online data-storage company 3Par even as the
price moves out of range.
o GENZ:
WSJ(9/1) Genzyme CEO Will Look For A Higher Offer
§ "The
difficulty has been the starting point," Mr. Termeer said in an interview.
"At $69 [a share, the current offer], the company is not for sale."
o GENZ: WSJ(9/1) Sanofi's Board Members Differ On Bid
For Genzyme
§ As Sanofi-Aventis SA chief executive Chris
Viehbacher tries to pull off the biggest deal of his career -- an $18.5 billion
offer for Genzyme Corp. – he must convince not only Genzyme's reluctant board
but also some of Sanofi's own directors of the acquisition's merits.
o
BHP
Saskatchewan energy minister exploring legal options to keep BHP Billiton in
Canpotex - Reuters
o
Dick
Bove: Bank M&A 'Explosion' Coming After November –
CNBC link
o AIG: China
Strategic To Appeal Taiwan's Decision On Nan Shan – DJ
o AIG Weighs Scaling Back Taiwan Life Unit After Sale Is
Rejected - BBG
o Cable
& Wireless Worldwide trading higher on talk of a takeover bid from AT&T
(T) at £1.10 per share, SA
o WSJ: First Round Bids For Carrefour's Asia Assets
Due Wednesday
o
Top $ Raising
o Motors
Liquidation, the old shell of General Motors, said
it has filed a plan with a U.S. court to come out of bankruptcy.
§ The
new plan also aims
to distribute the company's 'New GM' stock and
warrants to unsecured creditors.
§ http://www.cnbc.com/id/38948233
o
Credit markets
o
For
the five days that ended Friday, corporate-bond sales were down 56% compared
with the previous week, while no high-yield corporate debt has been sold in the
U.S. since Aug. 20, according to data compiled by Bloomberg.
o
U.S. commercial real estate yields are near highest relative to Treasury bonds on record, at ~429 bps, a
signal to some investors it’s time to
buy property - BBG
o
Muni’s:
o Harrisburg
Default Hits Muni Market – WSJ link
o California Lawmakers Reject Dueling Budgets as
Impasse Persists - BBG
o
The
Federal Reserve is leaving the door open for return to policy that boosts the
U.S. economy, but the central bank would act only if "the outlook were to
weaken appreciably further," according to the Federal Open Market
Committee's minutes. The minutes signal a wide range of views among committee
members about the economic outlook. Reuters
(31 Aug.)
o
The
U.S. dollar remains the centerpiece of the world's monetary system, but the
likelihood of that changing is growing as the balance of power shifts from the
U.S. and Europe to Asia, according to The Wall Street Journal. Two recent announcements
by the International Monetary Fund might mark the beginning of what will
conclude with the IMF becoming a multinational monetary authority responsible
for the stability of financial markets. The Wall Street Journal (01 Sep.) , The Washington Post (31 Aug.)
o US Jobs coming home??
o
Whirlpool to Invest in U.S. Plants –WSJ link
o
Whirlpool's plans for a new Tennessee plant
highlight a shift by export-driven U.S. manufacturers away from low-cost
locales overseas to highly automated and consolidated U.S. operations.
·
Young Women Earn More
Than Male Peers –WSJ
link
- Analysis: To create jobs, America must
build companies
- Research
from economists John Haltiwanger, Ron Jarmin and Javier Miranda suggests
that the best thing the U.S. can do to create jobs and reduce
unemployment is to support the formation of businesses, according to The
Economist. If the country is to succeed in stimulating employment, it
needs well-crafted policy that encourages and assists entrepreneurship, a
driving force in job creation, the magazine notes. The Economist/Free Exchange blog
(31 Aug.) , NYTimes.com/Economix blog
(26 Aug.)
·
Biggs Recommends Stocks Given Odds Economy Will Avoid Recession - BBG
o
Barton Biggs said investors should avoid the
mistake he made in July, when the hedge-fund manager slashed his equity
holdings in half before redoubling them
o
“This is not a time where you want to be
underinvested,” Biggs said on Bloomberg Television yesterday. “The odds of a significant slowdown are
one in five, pretty remote.”
·
Sovereign
Debt Worries Will Last 10 Years: Strategist – CNBC
o Short-term
fiscal pressures are more manageable than most investors realize, but problems
will be far more difficult to deal with over the next 10 years, according to
Andrew Milligan, the head of global strategy at Standard Life Investments in
London.
o http://www.cnbc.com/id/38948363
o
Wall Street Insiders
Want Out, Selling $100 Million in Stock – CNBC
o
a move that may reflect a growing
unwillingness to tie their personal fortunes to those of their companies, Wall
Street insiders this year have undertaken more than five times the number of
stock sales of their corporate shares as they have purchases.
o
Officers and directors of Goldman Sachs, J.P.
Morgan, Citigroup, and Wells Fargo have sold about $100 million worth of stock
so far this year, amid relatively small buying activity, according to public
stock filings with the U.S. Securities and Exchange Commission that have been
analyzed by the research firm InsiderScore
o
http://www.cnbc.com/id/38935380
o
Little Dry Powder Left at Equity Mutual
Funds. Cash at Equity Mutual Funds Drops to
Record Low 3.4% in July as Amount of Cash Falls 2.0%. TrimTabs
o
Cash as a percentage of equity mutual fund
assets fell to a record low 3.4% in July. The cash percentage did not
drop solely because stock prices rebounded. Cash holdings fell $3.5
billion, or 2.0%, to $169.6 billion.
o
Equity mutual fund cash tends to be a leading
rather than a contrary indicator, so its low level is helping to support the
TrimTabs Demand Index, which rose to a new interim peak of 92.4 on Monday,
August 30 (readings above 50 are bullish).
o Global Currency Trade Jumps to $4 Trillion a
Day: Survey - CNBC
o Banks’ shift pushes FX trading to $4,000bn a
day - FT
o
Currency trading has surged to record levels
in 2010 as banks have become increasingly interested in foreign exchange in
their search for less risky sources of profits
o
http://link.ft.com/r/KC2844/UUZ7G7/GEFOF/18D38L/ZB29EO/9A/h?a1=2010&a2=9&a3=1
o Demonised ‘algos’ push the surge in FX
trading - FT
o
High-frequency traders are a fast-increasing
force in FX markets, which is sparking a fierce debate as to their value to the
market
o
http://link.ft.com/r/KC2844/UUZ7G7/GEFOF/18D38L/S3GX4P/9A/h?a1=2010&a2=9&a3=1
o Spain PM: China Has Made Wise Decision To
Increase Spanish Bond Holdings
o
Spain
Hopes China Will Raise Investment In Its Government Debt - WSJ
o
Spain hopes China will increase its investment
in Spanish government debt, Prime Minister Jose Luis Rodriguez Zapatero told
reporters on a visit to Beijing, highlighting China's importance as a source of
global capital.
o
Mr.
Zapatero made the comments in a group interview with Chinese media Tuesday,
during a brief stop in Beijing after visiting the World Expo in Shanghai.
o ECB
watch: ECB's
Weber was no longer a 'shoo-in' to replace Trichet as the next ECB
president. It was criticized that Weber's purchase of government debt of
periphery EU nations resulted in tensions with other members. Note that
Trichet's term to end in October 2011, and official process for replacement to
begin in early 2011. WSJ
o Singapore Rises To Become World's 4th Biggest
FX Center - DJ
o
Singapore has risen to become the
fourth-biggest global currency-trading center in recent years, overtaking
Switzerland as Asian trading of major currencies has expanded, a global survey
showed
o JPMorgan Said to Close Prop Trading Desk to
Meet Volcker Rule – BBG
o
JPMorgan
told traders who bet on commodities for the firm’s account that their
unit will be closed as the company starts to shut down all proprietary trading
o
The
bank eventually will close all in-house trading to comply with new U.S. curbs
on investment banks
o
Closing the proprietary trading desk for
commodities affects fewer than 20 traders, one in the U.S. and the rest in the
U.K.. The unit is based in London, and traders there were given notice on Aug.
27 that their jobs were at risk as required by U.K. law
o
Proprietary traders in fixed-income and
equities, who account for 50 to 75 employees, will need to find jobs when those
desks are shut down
o
Retail
sector in focus in front of Thurs SSS data: WSJ article on glum trends
o Back-to-School
Shopping Bust Heralds Holiday Woes
o Shoppers
Focused on Basics in August, Spending More Than Last Year but Far Less Than in
2008
o Shoppers
spent slightly more last month than they had the year before, according to
MasterCard Advisors, which crunches data from credit cards, checks and cash
payments to form sales estimates. But in nearly every category, the sales
numbers were far short of 2008 levels, indicating the economic recovery remains
sluggish.
o
http://online.wsj.com/article/SB10001424052748704421104575463861273438000.html?mod=ITP_marketplace_0
o Discover Financial Aug US Spending Monitor
(0.3) points to 86.2: Overall, 27% of consumers feel economic
conditions are improving, a 4-point increase from July. But improving economic
views were offset by nearly a quarter, 24%, of consumers rating their personal
finances as poor, a 3-point rise from July.
o
The
Securities and Exchange Commission said uncertainty about jurisdiction has
forced it not to pursue a fraud case against Moody's Investors Service
regarding credit ratings on collateralized debt obligations. The SEC also
announced that it will take action against a credit rating agency if it detects
"deceptive ratings conduct." Bloomberg
(01 Sep.) , CNBC/Reuters
(31 Aug.)
o FORM -2.1% (guidance) .. FORM negative pre-announced….FORM FormFactor guides Q3 revenue to $46-48M vs.
prior low to mid $50Ms and Reuters $57.3M
o Japan Steelmakers rose
after UBS reported Japanese steelmakers won a 7% cut in quarterly coking coal
prices from BHP (BHPAU), the first cut this year
o Vivendi Shares Open +2.2% To
EUR18.81 After 1H Results
o
Vivendi Ups Full-Year Targets, Keeps Dividend
o Bouygues
Opens -1.7% After Reporting
o Bouygues
CEO: Worst Of The Crisis Is Behind Us
– DJ
o Havas
(HAV.FR) dn 4% - 1H results are above-expectations but organic revenue growth
is disappointing – DJ
o Australian crops and chemical company: Nufarm (NUF.AU), dropped 7% after
confirming its FY profit would drop
o
New Patent Claims Dog
Product Makers – WSJ link
o
Recent court rulings could pave the way for
hundreds of lawsuits—and potentially
massive awards—against major companies over expired patents.
o
Political Stories:
o
Obama Marks New Focus in
Iraq, at Home – WSJ link
§ Obama formally declared an end to combat operations in
Iraq and planned to refocus the government from prosecuting
o
Palin Takes Steps Toward
2012 – WSJ
link
o
Sen.
Murkowski concedes – The Hill: After failing to gain enough votes on Republican
challenger Joe Miller in Tuesday's count of absentee ballots, Sen. Lisa
Murkowski (R-Alaska) conceded defeat Tuesday night. Read the full story.
o
Probe of Wikileaks
Founder Reopened – WSJ
link
o
China
Military Presence Near Taiwan Remains Despite Improved Ties - (AFP)--China is ramping up its military
presence facing Taiwan despite the easing of hostilities across the Strait, a
defense ministry report cited by local media said Wednesday.
o
China
launched live-fire naval exercises in the Yellow Sea on
Wednesday, after voicing opposition to similar war games to be staged there
this month by the U.S. and South Korea.
AFP
o
Obama's Mideast push clouded by West
Bank attack – Reuters link
o
Middle
East Israeli forces
Wednesday sealed off parts of the West Bank while Palestinian security
officials said they arrested about 50 people after four settlers were gunned
down just ahead of Middle East peace talks.
DJ
o Sweden
reopens WikiLeaks founder rape probe – Reuters link
o
Terror Suspects May Have
Been Unsuspecting Fliers – WSJ link
§ Dutch authorities said they need more time to investigate
the case of two men who were detained after setting off terrorism fears with
their travel behavior and items found in at least one of the men's luggage.
o
Tony Blair: Gordon Brown Was 'Maddening'
Bully Who Blackmailed Me - BBG
o Fund Stories
§ Investors Say Which Hedge Funds
Are Their Favorites – CNBC
·
York Capital
Management, with $11 billion under management, earned
the overall top spot in Absolute Return Magazine's second annual
hedge Fund Report Card for 2010,
the magazine said Tuesday.
·
JP Morgan's
Highbridge Capital hedge fund was the
biggest decliners on the overall list, falling from fourth to thirty-second
place. But big wasn't necessarily bad. Fortress Investment Group moved up to
tenth from thirtieth last year.
·
http://www.cnbc.com/id/38939175
o Equity
Recap
o
Expected a little window dressing to wrap up
the month but we came in to the futures being lower following overseas markets,
and then watched the consumer confidence number which was less than we had
hoped for along with mixed data take us lower after the open, fortunately in
the end regulators approved a Chinese investment in Morgan Stanley and growth
in home prices and consumer confidence managed to ease the concerns of
investors – enough to get us flat on the day. The action we saw here was light,
although volume was a bit better than we saw yesterday, the financials and tech
space created most of the liquidity internally, most of what we saw had guys
trimming positions and shorting, buyers were light with a few value and pension
types rounding out for month end but were looking to be very pricey. Sell names
here were about 2-1 over buyers, the breadth of the market had 1 ¼ advancing
issues for every 1 declining. Technically we saw another bounce off the 1040
level which has proven to be pretty solid support thus far, most of what we’ve
been seeing has been trading between that support and 1065 Friday’s intra-day
high and the middle of the gap from 8/24.
o
S&P’s were weaker in the early going
as Monday’s reversal of Friday’s gains allowed a revisit to current support
(1138). While Housing Data from Case Schiller appeared better than expected,
the Chicago Purchasing Managers Index disappointed (56.7 vs an expected 57),
resulting in a brief tug of war between 1038 and even on the day (1045).
Consumer Confidence at 10:00 was the real surprise (53.5 vs an expected 50.7),
allowing prices to move up 14 points to the session highs (1054). We are at the
point in the recovery when it is hoped that the consumer will take over after
the inventory rebuild; the question remains though whether the small upside
surprises in consumer metrics will carry the day (against weaker manufacturing
and general business manager malaise). Prices held near their highs until the
2:00 release of the Fed minutes; at this point, S&P’s faded back to even.
Last minute window dressing allowed for a small rally back to the session
highs. Cash S&P closed up 0.4%.
o
Of 10 S&P groups, Telecom and Financials
were strongest, up 1.1% and 0.9% respectively. Tech was weakest, off 0.6%. The
big gainer of the session was SKS, which rallied 19.7% on buyout speculation
(ironically, it closed on its lows after being up as much as 35% earlier in the
session). Other department stores up in sympathy with SKS: DDS (up 4.2%), JCP
(up 2.5%) and letter M (up 1.2%). Standout decliners includes Apparel names ARO
(off 4.3%), AEO (off 3.1%) and CHS (off 3.1%). In the weak tech group, INTC
again pressured the chip sector as it made a new 52 week low and managed to
pressure BRCM (off 6.4%) and MRVL (off 3.4%). In the handset group, RIMM fell
6% as Bernstein had negative comments.
o
Busy names on the desk today: 3mm letter C,
2.2mm SPRD, 1.5mm HPQ, 1mm AMRN, 970k TSM, 700k VOD, 615k MOT, 501k VSTNQ, 350k
MOT, 300k SKS, 280k ALU, 250k CMZPF, 241k RGNC, 240k DNR, 225k MWA, 225k FTK and
200k RECN
o
Billy Clark and Team
o
Rates Commentary
o
It
is hard to fathom Friday's vicious selloff, one of the largest of 2010 as
Treasuries were once again firmly bid and now through last Thursday's closes
across the curve. Treasuries were well bid overnight with the long end leading the market higher in price.
The bid continued as the New York session opened with the large buying
concentrated in the intermediate sector and thus the early curve
flattening was largely erased. After a slightly weaker Chicago Purchasing
Manager at 56.7, expected 57.0 a much better than expected consumer
confidence 53.5 versus 50.7 expected gave Treasuries a small reprieve but this
was short lived with the market once again finding a bid thereafter. With the
large month end extensions ~.12 years flows in the late morning and throughout
the afternoon were extremely heavy in the 10y and 30y with the long end gaining
back its lead on the curve. Treasuries continued their bid into the New York
close with benchmarks 1.6-7.6bps lower in yield, the 30y the best performer the
2y the worst.
o
The
Fed Minutes were released this afternoon with the headlines including:
Fed officials saw risk August decision would send wrong signal, Fed should plan
for more easing if needed and reinvesting in MBS might be desirable in the
future.
o As we turn to September the economic data for
the remainder of the week will focus employment with the ADP report
tomorrow and the labor departments report on Friday. The Fed will also be
conducting its 6th purchase tomorrow in the 2/12-1/13 sector, and the Treasury will
be auctioning $10Bln 10y TIPS Thursdays along with announcing next weeks 3y,
10y and 30y auction sizes
o
Primary Dealer
SECTOR NEWS WITH MACRO IMPLICATIONS
o
JOYG: Joy Global reports mixed..
revenues of $850.0M vs Reuters $877.4M.
o
Guides full year EPS
to $4.10-$4.15 vs. prior $3.85-$4.00 and Reuters $4.01; guides revenues to
$3.35B-$3.4B vs. prior $3.3B-$3.4B and Reuters $3.41B.
o
BP sells Malaysian ethylene and polyethylene
interests to Petronas
o
o
BP's equity stake sale in two Malaysian
petrochemical businesses is "pretty small in the grand scheme of their $30
billion asset sale," says David Hart of HansonWesthouse. The sale will
provide BP with $363 million in cash plus a dividend payment of $48 million. DJ
o
TK,
TOO - Teekay Offshore Operating LP, a subsidiary of TK and
TOO, signed an agreement with Statoil
o
PRESS RELEASE: Teekay Corporation Announces
Signing of Shuttle Tanker Contracts and Offer to Sell One FPSO and Three
Shuttle Tankers to Teekay Offshore Partners
o
Rosneft CEO Bogdanchikov Says No Plans to
Resign, Interfax Says
o
OXY
Occidental Petroleum CEO Ray Irani expected to step down next year – WSJ
o
http://online.wsj.com/article/SB10001424052748703467004575464010042324570.html?mod=WSJ_business_whatsNews
o
PCX
Patriot Coal announces adverse court ruling
o
API reports crude inventories +4.77M vs.
Reuters +1.1M; distillate inventories (1.86M) vs. Reuters +1.2M; gasoline
inventories (589K) vs. Reuters (200K)
o
WRES
Warren Resources announces settlement agreement
o LDK LDK Solar files suit against Canadian
Solar (CSIQ) for breach of contract
o
John Fredriksen Says Rig Rates May Surprise on the Upside
o
Norwegian billionaire John Fredriksen, the
founder of offshore oil-rig company Seadrill Ltd., said he expected rig rates
to “surprise on the upside” and that Seadrill would benefit from the stricter
regulations that were likely to be introduced in the aftermath of the Macondo
oil spill in the Gulf of Mexico - BBG
UTILITIES
o
o
JOYG: Joy Global reports mixed..
revenues of $850.0M vs Reuters $877.4M.
§
Guides full year EPS
to $4.10-$4.15 vs. prior $3.85-$4.00 and Reuters $4.01; guides revenues to
$3.35B-$3.4B vs. prior $3.3B-$3.4B and Reuters $3.41B.
o
COGT Cogent's
third-largest shareholder to "vigorously oppose" sale to 3M (MMM) -
LA Times
§
said in a letter to Cogent’s board on Tuesday that it believed the firm
was worth at least $15 a share, or 43% more than the $10.50-a-share 3M buyout
that Cogent accepted on Monday.
o
Australian
crops and chemical company:
Nufarm (NUF.AU), dropped 7%
§
Australia's Nufarm
Debt Blows Out, Stock Slides – CNBC
§
http://www.cnbc.com/id/38944641
o
BA: Air China: Planning to buy 15 787-9, the
Dreamliner, Aircrafts from Boeing for $3.2B - TTN
o
XRIT
X-Rite receives US patent for non-contact color measurement technology
o
ORN
Orion Marine announces a contract award of approximately $23M
o
AVAV
AeroVironment receives $35.3M order for digital Puma unmanned aircraft systems
o
GNK
Genco Shipping & Trading limited takes delivery of Supramax vessel
o
DAC
Danaos Corp reports Q2 EPS
o
APSG
Applied Signal reports Q3 EPS
o
FRZ
Reddy Ice COO, Chief Administrative Officer establish 10b5-1 trading plans
o
Weir Group (WEIR LN): Weir
Group rose 4.1% amid speculation of a potential takeover bid yesterday, the
Financial Times reported. The German group GEA and General Electric are believed to be possible buyers.
However, the report went on to note that a managing director at Weir carried
out a share transaction, indicating that no deal is on the cards. Dealers
believe the gain might enable Weir to join the FTSE 100 after a review of the
index next week.
o
AUTO SALES: today
§ U.S. auto sales in August were probably slowest for the
month in 28 years, reaching an annualized rate of 11.6m vehicles, as model-year
closeout deals failed to entice consumers. GM kicks off the reports around 10
a.m., followed by Ford at noon.
§ Estimated daily selling rates compared with August
2009: per BBG
§ GM: (-19%)
§ Ford: (-5.2%)
§ Chrysler: 3%
o Motors
Liquidation, the old shell of General Motors, said
it has filed a plan with a U.S. court to come out of bankruptcy.
§ The
new plan also aims
to distribute the company's 'New GM' stock and
warrants to unsecured creditors.
§ http://www.cnbc.com/id/38948233
o
Hyundai and Kia Motors target a 15% overall global market share by
2020 – TTN
o
China’s
August Car Sales Increase 59%, Center Says - BBG
§ China’s passenger-car sales grew in August at more than
three times July’s pace as higher incentives by dealers offset government
measures to cool the economy
§ Retail deliveries of cars, sport-utility vehicles and
multipurpose vehicles rose 59 percent last month from a year earlier to
977,300, the China Automotive Technology & Research Center, a government
researcher, said in a statement today.
§ Sales rose 15.4 percent in July, the center said last
month.
o
o
Japan
Airlines Corp.: Submitted rehabilitation plan does little to address fixed
costs; Worries that slow recovery and strong yen will leave it in the same
position if not addressed – Nikkei
o
Air
China: Planning to buy 15 787-9, the Dreamliner, Aircrafts from Boeing for
$3.2B – TTN
o
Another cabin-crew strike may be looming for
British Airways – Guardian
o
Emirates, the world’s biggest airline by
international traffic, needs more than $28 billion through 2017 to expand - BBG
o
BHP
Saskatchewan energy minister exploring legal options to keep BHP Billiton in
Canpotex – Reuters
§ The
Canadian province of Saskatchewan, home of takeover target Potash <POT.N>, would have "lots of
concerns" about a Chinese sovereign fund or state-owned company buying
part or all of the company, the province's Energy Minister Bill Boyd said.
§
SASKATCHEWAN WOULD HAVE "LOTS OF
CONCERNS" IF CHINA FUND INVESTS IN POTASH CORP-ENERGY MINISTER
§
SASKATCHEWAN LOOKING AT LEGAL OPTIONS TO
FORCE BHP TO REMAIN IN CANPOTEX -ENERGY MINISTER
o
Fresnillo trading higher on Daily Mail report
of a bid interest from Mexico's Carlos Slim – SA
o
o
Russian Prime Minister Vladimir Putin
interjects himself into argument between Norilsk Nickel's main shareholders –
FT
o
Moscow
Signals It Won't Intervene in Norilsk Conflict –
WSJ link
o
China may launch antimonopoly probe into BHP
Billiton (BLT.LN)'s bid for Potash, says China Business News
o
Japan
Steelmakers rose after UBS reported Japanese steelmakers won
a 7% cut in quarterly coking coal prices from BHP (BHPAU), the first cut this
year
o
UUU.CN
Uranium One shareholders approve ARMZ transaction
o AAPL: Apple’s event Wednesday
o
Apple to announce $0.99 rentals from
Fox (NWSA), ABC (DIS) tomorrow – WSJ
o http://blogs.wsj.com/digits/2010/08/31/apple-set-to-announce-99-cent-fox-abc-rentals/
o
NFLX
+2.3% (reports that AAPL might employ NFLX streaming service on new TV product)
– BBG, WSJ
o
AAPL
Bloomberg reports that Apple is said be planning a Netflix streaming service on
its new TV product
o
LOCM
+5.8% (YHOO agreement) : Local.com Corp. (LOCM) said it entered into an
agreement with Yahoo Inc.(YHOO) in which the location-oriented Internet
searches site will earn revenue derived by Yahoo from paid search results. Its
shares jumped 7.4% to $3.65 after hours while Yahoo's added 1 cent to $13.12. DJ
o
Motorola Inc.
said in a regulatory filing that its unit Motorola Spinco Holdings Corp. would
have capitalization of $3.5 billion. BBG
o Amazon eyes subscription Web TV
service –
Reuters link
o Microsoft seeks China internet search
partner: report – Reuters link
o Hitachi
plans IPO of hard-drive unit: sources – Reuters link
o Sprint
Faces 4G Dilemma
o Carrier's Board Debates Whether to Let Rival
T-Mobile USA Invest in Clearwire
o But Clearwire has a problem: It needs
billions of dollars to finish building its nationwide network. And now Sprint,
which owns 54% of Clearwire, must decide whether to fund the project itself or
turn to a competitor for help.
o Read more:
http://online.wsj.com/article/SB10001424052748704421104575463710664233330.html?mod=WSJ_business_whatsNews#ixzz0yGnhluns
o DELL,
PAR, HPQ: Dell mulls its next move in
3Par bid war – NYP
o Dell isn't quite ready to bow out of the bidding war
with rival Hewlett-Packard for online data-storage company 3Par even as the
price moves out of range.
o The discount PC maker, which has until the end of
today to match HP's $30-a-share offer, will likely make a new bid by the
deadline
o Google
to aid crackdown on website ads - FT
o Within six months, every British company operating a
website or a Facebook page will have to understand the rules of the Committee
of Advertising Practice, or face digital humiliation
o http://link.ft.com/r/KC2844/UUZ7G7/GEFOF/18D38L/3OMFJR/9A/h?a1=2010&a2=9&a3=1
o MSFT: Looking for a Chinese partner to help make
MSFT a major player in the China Internet search market - WSJ
o Samsung
Electronics:
Company does not have a new smartphone model going into the holiday season; To
rely on Galaxy S model and upcoming tablet for sales – WSJ
o LG
Electronics: Sees tougher home
appliance business conditions in H1 due to weak demand from Europe
o
VMW
VMware reiterates f10 non-GAAP operating margin 27-28%
o
Company management is speaking currently at
VMworld Analyst Conference.
o
HYC
Hypercom holder Discovery Group discloses a 5.2% stake in a 13D filing
o
DNB
D&B reports acquisition of Dun & Bradstreet Australia Holdings Limited
for $205M cash; reconfirms f10 guidance; the company will hold a webcast
tomorrow at 8:00 ET to discuss the acquisition
o
HPQ
Hewlett-Packard enters into a joint development agreement with Hynix
o
IMMR
Immersion Corp announces license agreement with Toshiba for TouchSense system
o
AMZN WSJ
reports that Amazon.com is trying to create a new subscription TV and movie
service
o
CODE,
TXN Spansion reports foundry services agreement with Texas
Instruments
o
EFUT
e-Future sold its 51% ownership stake in bFuture Information Technology for
RMB3.468M
o
SGI
-1.6% (earnings, to resume buyback)
o
SGI
Silicon Graphics International to resume $40M stock repurchase program
o
UNFY
Unify Corp reports Q1 non-GAAP EPS
o
BCSI Blue
Coat president and CEO Brian NeSmith to become Chief Product Officer, effective
1-Sep
o
EGHT 8x8,
Inc increases share repurchase program to $3M from $2M
o
FORM
-2.1% (guidance) ..
FORM negative pre-announced….FORM
FormFactor guides Q3 revenue to $46-48M vs. prior low to mid $50Ms and Reuters
$57.3M
o
CCUR
Concurrent reports Q4 EPS
o
AOL AOL
confirms acquisition of Rally-Up
o
Compal Electronics Inc. (2324.TW) expects its
third-quarter notebook computer shipments to fall by less than 10% from the
second quarter, before rebounding in the fourth quarter, company President Ray
Chen said Wednesday. DJ
o
Cable & Wireless Worldwide trading higher
on talk of a takeover bid from AT&T (T) at £1.10 per share, SA
o
MAGS Magal Security Systems reports
o
TTPA Trintech Group reports Q2
o
ALU.FP Alcatel-Lucent acquires OpenPlug;
financial details weren't disclosed
o
SCOR comScore acquires Nedstat for $36.7M
o
Vivendi
Ups Full-Year Targets, Keeps Dividend
o
Vivendi CEO: Lagardere Has The Right To IPO
Canal Plus Stake – DJ
o
Vivendi
reported 1H results slightly ahead of expectations, with a moderately positive
outlook statement. The group reported that the priority is organic growth with
few acquisition opportunities. CEO added that they are no talks ongoing about
minority buyouts
o
JOSB Jos. A. Bank reports better…comps
better
o Retail sector in focus in front of Thurs SSS
data: WSJ
article on glum trends
o Back-to-School
Shopping Bust Heralds Holiday Woes
o Shoppers
Focused on Basics in August, Spending More Than Last Year but Far Less Than in
2008
o Shoppers
spent slightly more last month than they had the year before, according to
MasterCard Advisors, which crunches data from credit cards, checks and cash
payments to form sales estimates. But in nearly every category, the sales
numbers were far short of 2008 levels, indicating the economic recovery remains
sluggish.
o
http://online.wsj.com/article/SB10001424052748704421104575463861273438000.html?mod=ITP_marketplace_0
o
Discover
Financial Aug US Spending Monitor (0.3) points to 86.2: Overall,
27% of consumers feel economic conditions are improving, a 4-point increase
from July. But improving economic views were offset by nearly a quarter, 24%,
of consumers rating their personal finances as poor, a 3-point rise from July.
o
DF: Dean Foods Advances on Speculation Danone
Will Make an Offer – BBG
o
“As part of our routine business operations,
Dean Foods continues to evaluate all of our businesses on an ongoing basis,”
Marguerite Copel, a Dean Foods spokeswoman, said today in an e-mailed statement.
“It would be inappropriate for us to speculate about what choices we might make
in the future.”
o
SKS WSJ
discusses takeover chatter surrounding Saks
o SKS
sale to buyout firm not imminent - NY Post
§
Some big-name luxury brands may be on the
block, but prospective acquirers are mostly window-shopping.
o
Sysco (SYY) approved a
program to repurchase 20m shares, or
3.4% outstanding stock – BBG
o
Dollar
Thrifty Automotive . (DTG) raised its 2010 adjusted earnings estimate,
as the rental-car company saw continued strength in operations and benefited
from cost-control efforts
§
The
company is currently the target of a bidding war between Avis Budget Group Inc.
(CAR) and rival Hertz Global Holdings Inc. (HTZ) - BBG
o
WHR: WSJ article
o
Whirlpool to Invest in Tennessee Plant
o
Appliance Maker, Along With Other Big
Exporters, Is Fueling Productivity Gains by Revamping Domestic Production
o
http://online.wsj.com/article/SB10001424052748703467004575463742398774102.html?mod=ITP_marketplace_2
o
WGO
Winnebago to sell Charles City manufacturing facility for $3.9M
o
WTSLA Wet
Seal provides update in Pennsylvania EEOC case - 10Q filing
o
ABM ABM
Industries reports Q3 adjusted income from cont ops
o
CASY
Casey's completes Dutch auction tender offer
o
USNA
USANA increases authorized share repurchase program by $40M
o
CFI Culp
Inc reports Q1 EPS
o
RLD
Barron's Weekday Trader is somewhat cautious on RealD
o
JPMorgan
Said to Close Prop Trading Desk to Meet Volcker Rule – BBG
o
JPMorgan
told traders who bet on commodities for the firm’s account that their
unit will be closed as the company starts to shut down all proprietary trading
o
The
bank eventually will close all in-house trading to comply with new U.S. curbs
on investment banks
o
Closing the proprietary trading desk for
commodities affects fewer than 20 traders, one in the U.S. and the rest in the
U.K.. The unit is based in London, and traders there were given notice on Aug.
27 that their jobs were at risk as required by U.K. law
o
Proprietary traders in fixed-income and
equities, who account for 50 to 75 employees, will need to find jobs when those
desks are shut down
o
AIG: China Strategic To Appeal Taiwan's Decision
On Nan Shan - DJ
o
The consortium led by China Strategic
Holdings Ltd. (0235.HK) plans to appeal the decision by Taiwan's Financial
Supervisory Commission to block the planned US$2.15 billion sale of American
International Group (AIG) Taiwanese life-insurance
unit to the Hong Kong group
o
The commission said Tuesday it rejected the
deal because it had doubts about China Strategic's financial strength and
commitment to Nan Shan Life Insurance Co., which controls more than a 30% share
of Taiwan's life-insurance market. It said the buyers, Hong Kong-listed China
Strategic and private-equity firm Primus Financial Holdings Ltd., can appeal
within 30 days.
o AIG Weighs Scaling Back Taiwan Life Unit After Sale Is
Rejected - BBG
o
Dick
Bove: Bank M&A 'Explosion' Coming After November –
CNBC link
o
SEC
drops probe into Moody’s - FT
o
The Securities and Exchange Commission warned
credit rating agencies that it now had the authority to bring fraud cases over
conduct outside the US that has ‘foresee¬able effects’ in the country
o
http://link.ft.com/r/KC2844/UUZ7G7/GEFOF/18D38L/ZB29E2/9A/h?a1=2010&a2=9&a3=1
o Credit Losses Could Stay High Longer in This
Cycle – American Banker
o The banking industry's loan losses could stay elevated
for years, recent federal data suggests, even after appearing to peak in late
2009.
o
ALNC
Alliance Financial increases quarterly dividend by 7.1% to $0.30 from $0.28
o
NetSpend …NTSP NetSpend files amended S-1; discloses NTSP as proposed
o
NetSpend is a leading provider of
general-purpose reloadable prepaid debit cards, or GPR cards
o
http://xml.10kwizard.com/filing_raw.php?repo=tenk&ipage=7134026
o
FSNM
First State Banc issued Federal Reserve Directive due to
"undercapitalized" status
o
PCBC
Pacific Capital Bancorp announces closing of $500M investment
o
ENV
Envestnet reports Q2 EPS
o
FAC
First Acceptance reports Q4 GAAP EPS
o
CBOE CBOE
Holdings announces launch of new exchange in Oct
o
Citi to almost triple workforce in China over
next three years - Bloomberg ($
o
MBA Mortgage purchase applications index +1.8% in 27-Aug;
total market index +2.7%
o
compares to +0.6% and +4.9%, respectively in
the prior week
o
refi index +2.8% vs. +5.7% in the prior week
o
30-yr fixed rate (12) bp vs. the prior week
at 4.43%.
o
U.S. commercial real estate yields are near highest relative to Treasury bonds on record, at ~429 bps, a
signal to some investors it’s time to
buy property – BBG
o
Capitalization rates, a measure of real
estate yields, averaged 7.22 percent in the second quarter, based on an index
calculated by the National Council of Real Estate Investment Fiduciaries. That
was 429 basis points, or 4.29 percentage points, higher than the yield on
10-year government bonds as of June 30, according to data compiled by
Bloomberg. It’s about 475 basis points higher than Treasury yields as of
yesterday.
o
That spread is near the record 539 basis
points in the first quarter of 2009, when the U.S. was mired in the worst of
the financial crisis and property prices sank
o
N.Y. State Mortgage Cuts Borrowing Costs 31% on $127
Million - BBG
o
State of New York Mortgage Agency, which
provides subsidized home loans to low- and moderate-income families, cut its
borrowing costs 31 percent since April on about $133 million in tax-exempt
housing bonds as demand from individual investors helped drive down yields.
o
Top-rated tax-exempt municipal yields on debt
due in 10 years fell 1 basis point, or 0.01 percentage point, yesterday to2.58
percent, equaling the lowest ever, according to data from Concord,
Massachusetts-based Municipal Market Advisors dating to January 2001. Bond
yields move inversely to prices
o
Mortgage Bonds Lose Ground With Home Refi Boom: Credit
Markets - BBG
o
Government-backed U.S. mortgage bonds
underperformed Treasuries in August by the most since November 2008 amid
concern federal intervention will spark a refinancing wave that reduces the
value of the securities.
o
Fannie Mae, Freddie Mac and Ginnie Mae bonds
tied to home loans returned 34 basis points, or 0.34 percentage point, less
than U.S. debt last month, Barclays Capital indexes show. Fannie Mae’s 6.5
percent bonds maturing in about 24 years fell 0.75 cent last month to 108.9
cents on the dollar as 4.5 percent Treasury bonds maturing in 2036 gained 8.9
cents to 118.34 cents, according to data compiled by Bloomberg
o
Home Prices Rise; Outlook Dims – WSJ link
o
U.S. home prices rose 3.6% in the second
quarter, according to S&P Case-Shiller, but gains decelerated. Separately,
consumer confidence moved higher in August.
o
Government interference in the housing market might be
backfiring
o
The
U.S. government is working to implement more programs aimed at curbing
foreclosures. The need for such programs appears evident, but the numerous
programs launched since the beginning of the housing crisis have done little to
truly help the market, according to Fortune magazine. For example, the Home
Affordable Modification Program and the Home Affordable Refinance Program have
cooled the foreclosure rate but have struggled to offer permanent relief to
homeowners. CNNMoney.com/Fortune (31 Aug.)
o
HCP,
SRZ HCP announces revamped Sunrise Senior Living
relationship
o
SRZ
+15.3% (HCP agreement) : HCP Inc. (HCP)
agreed to pay Sunrise Senior Living Inc. (SRZ) $50 million to terminate
management contracts on 27 of the 75 senior housing communities owned by the
health-care real estate investment trust, as the companies also dismissed all
litigation proceedings between them. Sunrise's shares shot up 15% to $2.55 while
HCP's added 10 cents to $35.32 after hours.
DJ
o
BRE BRE
Properties reports two investments totaling $185M; sells Inland Empire property
For $25M
o
GRT
Glimcher and an Blackstone affiliate to purchase Pearlridge Center in Honolulu,
Hawaii for $245M
o GENZ:
WSJ(9/1) Genzyme CEO Will Look For A Higher Offer
o "The
difficulty has been the starting point," Mr. Termeer said in an interview.
"At $69 [a share, the current offer], the company is not for sale."
o GENZ: WSJ(9/1) Sanofi's Board Members Differ On Bid
For Genzyme
o As Sanofi-Aventis SA chief executive Chris
Viehbacher tries to pull off the biggest deal of his career -- an $18.5 billion
offer for Genzyme Corp. – he must convince not only Genzyme's reluctant board
but also some of Sanofi's own directors of the acquisition's merits.
o Genzyme
(GENZ), Isis Pharmaceuticals (ISIS) present data from phase 3 study of
mipomersen in patients with heterozygous familial hypercholesterolemia
The study met its primary endpoint with a 28% reduction in
LDL-cholesterol, vs an increase of 5% for placebo (p<0.001). The trial also met
all of its secondary and tertiary endpoints.
o
SRZ
Sunrise Senior Living entered into settlement and restructuring agreement with
HCP
o
ESC,
HCP Emeritus Corp announces deal with affiliates of HCP to
lease 26 senior living communities
o
NEXM
NexMed files $6.5M unit offering through Dawson James
o
AGN
Allergan, inc. receives approval for approval for lumigan 0.01% for treatment
of glaucoma patients
o PKI: PerkinElmer
To Sell Unit To Private-Equity Firm For $500 Mln: PerkinElmer Inc. (PKI) said it has agreed to
sell its Illumination and Detection Solutions business to private-equity firm
Veritas Capital Fund III LP for about $500 million in cash. DJ
o
STXS Stereotaxis
initiated buy at Madison Williams and Company; target is $5.
o
ARAY
Accuray reports Q4 EPS
o
DNDN CMS
announces that MEDCAC meeting regarding Dendreon's Provenge to be held November
17
o
QDEL
Quidel reports FDA 510(k) clearance for its Rapidvue HCG pregnancy lateral flow
diagnostic test
o
ARAY
-5.7% (earnings)
o
ELOS Syneron Medical appoints Asaf Alperovitz
CFO
o
QDEL
Quidel Corp files $150M mixed shelf
o
EBS Emergent BioSolutions awarded NIAID
contract raising potential funding for advanced generation of third-generation
anthrax vaccine to more than $58M
o
o
Oils
o
BP (+0.6%). BP are to sell some Malaysian assets to
Petronas for $363m.
o
Soco International (+4.6%). Soco encounter hydrocarbons at an
appraisal well in Vietnam.
o
Chemicals
o
Akzo Nobel (+1.9%). Akzo have become the primary paint
supplier to WalMart in the US. - BBG
o
TMT
o
Vivendi 2Q revenue
7.06bln v 6.86bln expected 2Q adj profit 790mln v 719mln expected expect….stock
trading up 3%
o
Havas 1H net profit
49mln v 48mln expected but offers no guidance stock opened and trading down 5%
o
Financials
o
Handelsbanken Added
to UBS’s Key Calls List
o
Anglo Irish seeking
€25bn bailout
o
AGEAS PRICE EST.
LOWERED TO EU3.20 FROM EU3.50 AT ING :AGS BB
o
Burger King May Be
Considering Sale to 3i Group, WSJ Says
o
SYDBANK TO FORM IT
COLLABORATION BETWEEN BANKDATA, JYSKE BANK
o
POP. MILANO PRICE
EST. CUT TO EU4.4 VS EU4.6 AT UBS :PMI IM
o
HC
o
CRH
ID/LN XD 0.185g
o
CPI
LN XD 7.333g
·
Japan
•
NKY+1.17%, TPX +0.84%
•
NKY rose after China PMI rose and Australian
GDP came in stronger-than-expected. Yen weakened further after Ichiro Ozawa,
former Secretary-General of the DPJ, pledged to take every possible measure,
including intervening in the currency market, to stem the yen’s rise if he was
elected party leader. Turnover on the TPX rose to 1.17 trillion yen from 1.07
trillion yen yesterday
•
Stocks rose across most sectors led by oil
& gas, materials, industrials, utilities and financials
•
Exporters rose as the yen weakened: autos
+0.31%, CE +0.34%, precision +1.62%.
•
Machinery +0.93% after China manufacturing
PMI rose in August
•
Chip-related names underperformed after
Goldman cut the share price target for chip-related product makers
•
Steelmakers rose after UBS reported Japanese
steelmakers won a 7% cut in quarterly coking coal prices from BHP (BHPAU), the
first cut this year:
•
Best performing sectors on the TPX: oil &
gas +3.36%, real estate +2.34%, construction +2.10%, mining +2.10%; worst
performing sectors: pulp & paper -0.71%, fishery, agriculture &
forestry -0.37%, securities +0.05%
·
Hong Kong
•
HSI +0.43%; HSCEI +0.84%
•
Stocks rose after China manufacturing PMI
rebounded in August. Turnover on the HSI rose to HK$19.35B from HK$15.17B
yesterday
•
Mainland property developers were mixed after
Xinhua reported the CBRC will strictly implement policies aimed at curbing
housing prices and support the construction of affordable housing and control
risk
•
HK retailers rose after July retail sales
rose more-than-expected
•
Clean energy names rose after report Chinese
financing of new energy, emission reduction and environmental production could
reach 8 trillion yuan by 2020:
·
China
•
SHCOMP -0.60%; SZCOMP -1.31%
•
Stocks fell as investors took profit after
manufacturing PMI rebounded in August. Small caps underperformed after Citic
Securities said the rally for small caps may end and the Securities Daily
reported the Shenzhen Stock Exchange may introduce delisting rules for the
ChiNext market next year. Turnover on the SHCOMP rose to 122.52B yuan from
118.58B yuan yesterday
•
Stocks fell across most sectors led by
consumer, utilities, industrials, health care and tech. Banks and insurers rose
•
Real estate -1.67% after Xinhua reported the
CBRC will strictly implement policies aimed at curbing housing prices and
support the construction of affordable housing and control risk
INVESTMENT
BANKING
o Bidding wars, scrapped holidays herald
M&A pickup
o Reuters)
- August's unseasonable burst of dealmaking -- the busiest in over a decade --
could herald a wider rebound in M&A for the remainder of the year as low
interest rates, record cash piles and low stock-market values encourage chief
executives to strike deals.
o Announced deals and offers during the
typically slow month of August surged to $262 billion worldwide, according to
Thomson Reuters data.
o It is the highest value of deals and offers
announced during an August since 1999 when the value reached $275 billion.
Still, by number of deals, it ranks lower than last August
o
Japan ‘Ripe for Increased M&A,’ Goldman Sachs Says – BBG
o
SLRY : Kenexa to acquire Salary.com,
reiterates guidance
§ KNXA
will hold an 8ET conference call to discuss the acquisition (877.407.9039).
o
o BHP:
o
BHP
Saskatchewan energy minister exploring legal options to keep BHP Billiton in
Canpotex – Reuters
§ The
Canadian province of Saskatchewan, home of takeover target Potash <POT.N>, would have "lots of
concerns" about a Chinese sovereign fund or state-owned company buying
part or all of the company, the province's Energy Minister Bill Boyd said.
§
SASKATCHEWAN WOULD HAVE "LOTS OF
CONCERNS" IF CHINA FUND INVESTS IN POTASH CORP-ENERGY MINISTER
§
SASKATCHEWAN LOOKING AT LEGAL OPTIONS TO
FORCE BHP TO REMAIN IN CANPOTEX -ENERGY MINISTER
o
Dick
Bove: Bank M&A 'Explosion' Coming After November –
CNBC link
o DF:
Dean Foods Advances on Speculation Danone Will Make an Offer – BBG
o
“As part of our routine business operations,
Dean Foods continues to evaluate all of our businesses on an ongoing basis,”
Marguerite Copel, a Dean Foods spokeswoman, said today in an e-mailed
statement. “It would be inappropriate for us to speculate about what choices we
might make in the future.”
o Dollar Thrifty Automotive . (DTG)
raised its 2010 adjusted earnings estimate, as the rental-car company saw
continued strength in operations and benefited from cost-control efforts
§
The
company is currently the target of a bidding war between Avis Budget Group Inc.
(CAR) and rival Hertz Global Holdings Inc. (HTZ) - BBG
o China
may launch antimonopoly probe into BHP Billiton (BLT.LN)'s bid for Potash, says
China Business News
o
COGT Cogent's
third-largest shareholder to "vigorously oppose" sale to 3M (MMM) -
LA Times
§
said in a letter to Cogent’s board on Tuesday that it believed the firm
was worth at least $15 a share, or 43% more than the $10.50-a-share 3M buyout
that Cogent accepted on Monday.
o
DELL, PAR, HPQ: Dell mulls its next move in 3Par bid war – NYP
o Dell isn't quite ready to bow out of the bidding war
with rival Hewlett-Packard for online data-storage company 3Par even as the
price moves out of range.
o The discount PC maker, which has until the end of
today to match HP's $30-a-share offer, will likely make a new bid by the
deadline
o SKS WSJ discusses takeover chatter surrounding
Saks
o
SKS sale to buyout firm not imminent - NY
Post
§
Some big-name luxury brands may be on the
block, but prospective acquirers are mostly window-shopping.
o Cable
& Wireless Worldwide trading higher on talk of a takeover bid from AT&T
(T) at £1.10 per share, SA
o HYC Hypercom holder Discovery Group discloses a
5.2% stake in a 13D filing
o
o GENZ:
WSJ(9/1) Genzyme CEO Will Look For A Higher Offer
o "The
difficulty has been the starting point," Mr. Termeer said in an interview.
"At $69 [a share, the current offer], the company is not for sale."
o GENZ: WSJ(9/1) Sanofi's Board Members Differ On Bid
For Genzyme
o As Sanofi-Aventis SA chief executive Chris
Viehbacher tries to pull off the biggest deal of his career -- an $18.5 billion
offer for Genzyme Corp. – he must convince not only Genzyme's reluctant board
but also some of Sanofi's own directors of the acquisition's merits.
o AIG: China
Strategic To Appeal Taiwan's Decision On Nan Shan - DJ
o
The consortium led by China Strategic
Holdings Ltd. (0235.HK) plans to appeal the decision by Taiwan's Financial
Supervisory Commission to block the planned US$2.15 billion sale of American
International Group (AIG) Taiwanese
life-insurance unit to the Hong Kong group
o
The commission said Tuesday it rejected the
deal because it had doubts about China Strategic's financial strength and
commitment to Nan Shan Life Insurance Co., which controls more than a 30% share
of Taiwan's life-insurance market. It said the buyers, Hong Kong-listed China
Strategic and private-equity firm Primus Financial Holdings Ltd., can appeal
within 30 days.
o BP's
equity stake sale in two Malaysian petrochemical businesses is
"pretty small in the grand scheme of their $30 billion asset sale,"
says David Hart of HansonWesthouse. The sale will provide BP with $363 million
in cash plus a dividend payment of $48 million. DJ
o Vivendi reported 1H results
slightly ahead of expectations, with a moderately positive outlook statement.
The group reported that the priority is organic growth with few acquisition
opportunities. CEO added that they are no talks ongoing about minority buyouts
o WSJ:
First Round Bids For Carrefour's
Asia Assets Due Wednesday
o TUI (TUI1.XE) opening higher after Financial
Times Deutschland said TUI has received expressions of interest from several
parties for its 43.3% stake in Hapag-Lloyd. The report also says TUI's
supervisory board may consider using the proceeds from such a sale to buy
outstanding shares in TUI Travel (TT.LN). TUI confirmed a regularly scheduled
supervisory board meeting will take place in coming weeks and reiterated the
use of the Hapag-Lloyd stake is key to development of the tourism business -DJ
o Gartmore Group (GRT LN): Gartmore's biggest shareholder, Hellman &
Friedman, is rumoured to have been approached to sell its 24.3% interest in the
fund manager, the Financial Times reported. The report said traders suggested
competitors Martin Currie and Neptune Investment Management may be among the
parties to have indicated their interest in buying the shares from Hellman
& Friedman.
o Shire (SHP LN): Shire is among the most attractive mid-cap
healthcare buys to potential predators, according to Ambrian Capital analyst
Paul Diggle quoted in an Independent market report. He pointed out that Shire
enzyme replacement therapy operations where sales are thought likely to rise 45%
to USD 800m this year are very attractive and part of a strongly growing
business. The Sanofi-Aventis bid should serve to remind the market that Shire
is among the best targets for those seeking to acquire a mid-cap healthcare
group, Diggle said.
o EnCore Oil PLC (EO/ LN)/ Premier Oil PLC (PMO LN) Premier Oil may
be a prospective bidder for Encore Oil, according to Financial Times market
report. The report noted that shares in Encore jumped 17.7% yesterday on news
that the company had made a discovery at its 16.6% owned North Sea Cladhan
site.
o Weir Group (WEIR LN): Weir Group rose 4.1% amid speculation of a potential
takeover bid yesterday, the Financial Times reported. The German group GEA and General Electric are believed to
be possible buyers. However, the report went on to note that a managing
director at Weir carried out a share transaction, indicating that no deal is on
the cards. Dealers believe the gain might enable Weir to join the FTSE 100
after a review of the index next week.
o Nokia completes acquisition of Motally
o WSJ: First Round Bids For Carrefour's Asia Assets
Due Wednesday - French retailer
Carrefour SA will collect the first round of bids for its assets in Singapore,
Thailand and Malaysia on Wednesday in a deal worth roughly $1 billion, a person
familiar with the situation said.
o WSJ: Burger King In Buyout Talks With Private
Equity - Burger King Holdings Inc.
(BKC) has been in talks with private equity firms in recent weeks about a
possible sale of the second-largest hamburger chain, people familiar with the
matter said.
o
o China Strategic: Haven't Received Official Notice
Of Taiwan's AIG Unit Decision: China Strategic Holdings Ltd.
(0235.HK) said Wednesday the company hasn't received official notification from
Taiwan's government about its decision to reject American International Group
Inc.'s (AIG) sale of its Taiwanese life-insurance unit to a China Strategic-led
consortium.
o BP Sells Stakes In 2 Malaysia Petrochemical Firms
To Petronas – DJ: Oil major BP PLC (BP)
Wednesday said it agreed to sell its equity stakes in two Malaysian
petrochemical businesses to Malaysia's Petroliam Nasional Bhd. for $363 million
in cash plus a dividend payment.
o PKI: PerkinElmer
To Sell Unit To Private-Equity Firm For $500 Mln: PerkinElmer Inc. (PKI) said it has agreed to
sell its Illumination and Detection Solutions business to private-equity firm
Veritas Capital Fund III LP for about $500 million in cash. DJ
o Motors
Liquidation, the old shell of General Motors, said
it has filed a plan with a U.S. court to come out of bankruptcy.
§ The
new plan also aims
to distribute the company's 'New GM' stock and
warrants to unsecured creditors.
§ http://www.cnbc.com/id/38948233
o
o
S Korea Shortlists
JPMorgan, UBS, Morgan Stanley For Woori Sale Adviser Role – DJ
o
NEXM
NexMed files $6.5M unit offering through Dawson James
o
NetSpend …NTSP NetSpend files amended S-1; discloses NTSP as proposed
o
NetSpend is a leading provider of
general-purpose reloadable prepaid debit cards, or GPR cards
o
http://xml.10kwizard.com/filing_raw.php?repo=tenk&ipage=7134026
o Hitachi
plans IPO of hard-drive unit: sources – Reuters link
o Vivendi CEO: Lagardere Has The
Right To IPO Canal Plus Stake – DJ
o
BCOM B Communications files mixed shelf
prospectus in Israel
o Motorola Inc. said in a
regulatory filing that its unit Motorola Spinco Holdings Corp. would have
capitalization of $3.5 billion. BBG
o QDEL Quidel Corp files $150M mixed shelf
***All eco data from Bloomberg and DJ
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