Cantor Morning News | Morning @ Cantor

� Reuters) - Moscow on Monday gave another mixed signal about the duration of a grain export ban set initially from August 15 to December 31, but European Union grain markets continued to rise, apparently ignoring the latest twist.

� Wheat futures climbed to a three- week high on speculation that the U.S. Department of Agriculture may pare its estimate of global inventories for a fourth time, signaling tighter supply

o New Delhi set to fuel cotton price rise from Financial Times

� The world�s second-largest exporter has unexpectedly extended export restrictions on the fibre, reversing promises made three weeks ago

o Tropical Storm Hermine Threatens Mexico, Texas

o Strikes in London's transport systems this week could become the first in a series of strikes affecting millions of commuters

o French trade unions mounted a show of strength on Tuesday with strikes backed by street marches over unpopular pension reforms that President Nicolas Sarkozy says he is determined to implement. Reuters

o Overseas Action

o Europe markets:

� EU stocks dn 1.1% tues - slightly off lows at 7am et

� Monday action:� Euro Stoxx 50 ends +0.2% at 2753.60 though trading volumes have been relatively low given a lack of economic and corporate data along with Wall Street closed for a public holiday.

� Metals Close Higher; Copper Up For 4th Session

o Asian Markets:

� Asian stock markets were mixed Tuesday though steel companies led the region on expectations for higher Chinese steel prices.� WSJ

o Data:

� Global rates:� Australia's central bank keeps its policy interest rate at 4.5%, with the bank's governor saying the global outlook is 'somewhat uncertain.'

� Global rates� The Bank of Japan held interest rates unchanged on Tuesday, saying the economy appeared to be recovering at a slow pace while leaving open the possibility of additional emergency action to support the economy.

� BOJ decision was likewise mum on the impact of strong currency on the economy, disappointing traders looking for a more adamant position that could pave the way to a Ministry of Finance intervention - TTN

o Economics today:

o U.S. sells 3, 6 month bills, 11:30 a.m.; 3-yr notes, 1 p.m.

o Earnings/ corporate events :

o Casey�s General Stores (CASY), 8 a.m., $0.81

o Chesapeake Midstream (CHKM), after mkt., no est.

o Phillips-Van Heusen (PVH), 11:03 a.m., $0.54

o Citi Global Technology Conference: IBM, MSFT, XRX, ADI, ��NTAP, MOT, TLAB, DELL, GOOG, HPQ, ARM, TXN, LXK

o Barclays Back-To-School Consumer Conference: DF, DLM, PEP,�� PM, KO, PG, SJM, HNZ

o Keefe, Bruyette & Woods Insurance Conference: PFG, ALTE,�� PRA, FNF, GNW, FAF

o �Investor Day: EMA CN

o FDA Anti-Infective Drugs Advisory Committee Meeting: FRX

o Altera (ALTR) August sales, after mkt.

o �UAL (UAUA) August traffic (tentative)

TODAY�S BIG STORIES

o Top M&A

o Stock Market Isn�t Impressed With M&A Boom from WSJ.com

� A funny thing happened last month: The stock market and the M&A market decoupled.

o GENZ:� Sanofi-Aventis would be prepared to moderately raise its $69 per share offer for Genzyme if the U.S. biotech agreed to negotiate, Dow Jones

o The United States Justice Department is looking into Google's takeover of airline ticketing software firm ITA Software, to determine whether the deal would exert too much influence on the online travel industry, Reuters

o ARG, APD:�� APD raises their cash offer to $65.50/share from $63.50/share (offer represents approx. a 3% increase); total offer is worth about $5.5B

� ARG, APD:� Air Products Increases All-Cash Offer for Airgas to $65.50 Per Share; Will Withdraw Offer If Airgas Shareholders Do Not Elect Air Products Nominees and Approve By-Law Proposals on September 15

� Airgas shares closed at $66.67 on Friday on the New York Stock Exchange.

o Deals Offer Dell Multiple Paths to Goal � WSJ

� CML CVLT DELL ISLN

o HRL:� MegaMex Foods To Buy Don Miguel Foods Corp. From Private Equity Fund

� MegaMex Foods LLC, a joint venture between Hormel Foods Corporation (NYSE: HRL) and Herdez Del Fuerte

o ITW�� :� 3i Sells Spain's Chemicals Co Panreac To Illinois Tool Works

o Tullow Oil was still in demand on talk of possible bid interest, perhaps from China � guardian

o Speculation that Singapore Telecommunications Ltd.(Z74.SG) has Cable & Wireless Worldwide PLC (CW.LN) in its sights have given the British company's shares a boost Monday � DJ

o British Airways would be interested in discussing a merger with Qantas Airways, if Australia's top airline was a willing party, BA Chief Executive Willie Walsh said in a newspaper interview.� CNBC

� http://www.cnbc.com/id/39031591

o Top $ Raising

o Many Line Up to Go Public, but Market Mood Is Iffy from NYT

� Some 161 companies are seeking to raise more than $56 billion through initial public offerings, the largest volume on record for pent-up I.P.O.�s

o WSJ: Equity Bankers Prepare For A Crunch Month

� Equity capital markets bankers expect the next three weeks to prove crucial in determining levels of global supply for the rest of the year, amid concerns that heightened volatility or any form of macro-economic shock this month could keep issuance light until late this year.

o BC Partners Offers Sweeteners In EUR6B Raising - DJ

� BC Partners has become the first European firm to begin fund-raising for a mega-buyout fund since the collapse of Lehman Brothers, although it has offered improved terms to investors in an attempt to win over a skeptical audience ahead of a spree of EUR50 billion European funds set to come back to market.

o Credit markets:�

o Commercial real estate from FT.com � Lex

� The yield differential between US commercial real estate and Treasuries is the widest since the financial crisis

o Covered Bond Supply Up Again Despite ECB's Withdrawal � DJ-Following a brief intermission for the summer, Europe's covered bond markets are booming again--good news for banks that need to refinance huge amounts of maturing debt between now and the end of the year

o Mariner Buys Stake in Loan Portfolio from FDIC from American Banker

� Mariner Holdings said it purchased a portion of a $760M portfolio of property loans from the FDIC as part of the agency's sale of assets seized from failed banks.

o All Obama all the time this week:

o Obama speaks multiple times this week:� incl Wed and Friday

o What Obama May Propose This Week on Jobs, Economy from CNBC

o President Barack Obama will hold a rare news conference at the White House on Sept. 10.

o President Barack Obama plans to use an appearance at a Labor Day rally in Milwaukee to unveil a new $50 billion proposal to improve the nation's highways, airports and railways--the latest attempt by the administration to jump-start the sputtering economy.� The infrastructure proposal, which would include new construction as well as repair of existing problems, is part of a larger plan Obama will outline in Cleveland = DJ

o Democrats And Republicans wary of wary of new spending in front of Nov 2 election�AP, WSJ etc�

� A combative President Barack Obama rolled out a long-term jobs program Monday that would exceed $50 billion to rebuild roads, railways and runways, and coupled it with a blunt campaign-season assault on Republicans for causing Americans' hard economic times.

� GOP leaders instantly assailed Obama's proposal as an ineffective one that would simply raise already excessive federal spending. Many congressional Democrats are also likely to be reluctant to boost expenditures and increase federal deficits just weeks before elections that will determine control of Congress.

� http://news.yahoo.com/s/ap/us_obama_economy

o New mortgage-relief plan set for Tuesday launch from MarketWatch.com

� The Obama administration on Tuesday will launch its latest efforts to rescue the failing housing market

� The program, first announced in March, will focus on reducing mortgage balances

o US� Taxes in focus:�

o Obama to Push Tax Break � WSJ link

� President Obama will propose that companies be allowed to write off 100% of their new investment in plants and equipment through 2011, a plan that White House economists say would cut business taxes by nearly $200 billion over two years.� WSJ

o McCain pushes extension of tax cuts as economic stimulator � The Hill

� Sen. John McCain (R-Ariz.) on Sunday led the GOP charge for extending the Bush administration's tax cuts aimed at the wealthy, arguing that doing so will stimulate the economy.

o Economists call for tax cuts and government spending rather than deficit reduction � The Hill

� economists on CBS' Face The Nation said the federal government should be doing more to jumpstart the economy, such as cutting taxes and investing in infrastructure.

o Small-Business Tax Cuts Fuel Debate� � WSJ link

� President Barack Obama has said he favors allowing Bush-era tax cuts for those making $250,000 or more annually to expire at the end of the year. On Friday, administration officials said they were considering using the revenue from these expiring tax cuts to finance about $35 billion of tax cuts for small businesses and workers.

� In addition, Mr. Obama plans to ask Congress in the coming week to make a tax credit for business-research expenses permanent, an administration official confirmed on Sunday

o Fed watch:�

o Retiring Fed Official Considers More Bank Action from NYT

� Donald L. Kohn, former vice chairman of the Federal Reserve, said that unless the recovery showed signs of �decent progress,� more stimulus might be needed

o Goldman�s Hatzius Makes The Strongest Case For QE2 Yet, Or How $1 Trillion In QE Buys 0.5% In GDP (And Increasingly Less) from zero hedge

� Hatzius says: "Later this year or early next, however, we do expect a return to unconventional monetary easing. This is because we strongly disagree with the notion that the recent slowdown in activity is a temporary �soft patch� in an otherwise fairly decent recovery, which seems to underlie the Fed�s forecast of a reacceleration in 2011 after a modestly slower period in 2010H2. On the contrary, we believe that the stronger growth of late 2009/early 2010 was a temporary �firm patch� in an otherwise

o Market valuation:� Dividends Beating Bond Yields by Most in 15 Years � BBG

o More U.S. stocks are paying dividends that exceed bond yields than any time in at least 15 years as profits rise at the fastest pace in two decades.

o G20 members agree economic recovery to continue from Reuters

� �G20 delegates agreed on Saturday global economic recovery would endure although the speed of expansion may slow, a South Korean official said - from Reuters

o Macro caution stories abound:�

o IATA SAYS INDICATORS FOR AIR FREIGHT POINTING TO SLOWER GROWTH

� IATA: AIR FREIGHT INDICATORS NOT POINTING TO `DOUBLE-DIP'

� *IATA: AIR FREIGHT CAPACITY NOW COMING BACK INTO MARKET - BBG

o Libor Falls as Banks Sit on Cash from WSJ.com

� A key interest rate on short-term loans between banks is at its lowest level in five months, but the decline may be more a sign of bank caution than an all-clear for the financial markets

o Global PMI suggests recovery is losing steam- Reuters

� Growth in the private sector lost impetus in August as the pace slowed in both the service and manufacturing sectors, a survey showed on Friday.

� The Global All-Industry Output Index, produced by JP Morgan with research and supply management organisations, fell to 53.9 in August from 54.6 in July, although still above the 50 mark that divides growth from contraction.

� http://www.businessspectator.com.au/bs.nsf/Article/Global-PMI-suggests-recovery-is-losing-impetus-8XLD9?opendocument&src=rss

o Europe, US growth to stay weak: IMF from Business Spectator

� Blanchard says US slowdown will have impact Asian growth.

o Jobs:� Companies in Developing Nations Plan Strong Hiring, but U.S. and Europe remain muted -Manpower

� Companies in China, Taiwan, India and Brazil expect strong increases in hiring in the fourth quarter, according to a global survey of employers.

� But employers across the U.S. and Europe remain muted about their hiring intentions amid lingering fear of another economic slump in those regions, according to the survey, conducted by the Manpower Inc. employment services group.

� http://online.wsj.com/article/SB10001424052748704392104575476400767325026.html?mod=WSJ_hpp_sections_business

o Jobs:�� Economists Grapple Over Job Creation from WSJ.com

� Washington's response to the country's stubbornly high unemployment rate will depend in part on who wins an increasingly intense debate over its causes

o Jobs:�� Once a Dynamo, the Tech Sector Is Slow to Hire from DealBook

o Jobs:�� U.S. Companies Suffering From Labor Pains from TheStreet.com

� America celebrates Labor Day as AMR, Coca-Cola, Kroger and other companies are mired in worker disputes.

o Jobs:�� Flat hiring rate casts doubt on recovery � FT

� Employers expect a �static� rate of recruitment for the remainder of this year, according to new research, underlining concerns about the momentum of economic recovery

� http://link.ft.com/r/J0VG55/PR0Y1R/NNT7T/C5PM3P/GKJM60/PJ/h?a1=2010&a2=9&a3=7

o Jobs:�� Unemployment in U.S. May Rise Toward 10% on �Feeble� Growth - BBG

� The jobless rate in the U.S. is likely to approach 10 percent in coming months as the economy fails to grow quickly enough to employ people rejoining the labor force, according to economists at BofA Merrill Lynch Global Research and Morgan Stanley.

o EU stories:�

o Sovereign debt fears in EU: Fears rise as EU nations aim to raise borrowing � link from Financial Times

� The eurozone debt crisis is about to enter a dangerous phase as governments prepare to step up borrowing in the capital markets to fund their faltering economies

o EU exit strategies on hold:� Nowotny says no ECB exit discussions before December: report

� (Reuters) - The European Central Bank will not discuss its exit from unlimited liquidity provision before December, the central bank's Governing Council member Ewald Nowotny was quoted as saying on Monday.

o EU banks:�� Sole European Bank Needs $60 Million USD And Comes Crawling To ECB, Confirming USD-Libor Funding Process Impaired � link from zero hedge

o The European bank stress tests understated some lenders' holdings of potentially risky government debt, a Wall Street Journal analysis shows.

� Stress Tests Missed Debt at EU Lenders from WSJ.com

o Spanish lenders hasten back to bonds - FT

� Banks that were squeezed out of wholesale finance markets have returned in force with bond issues and raised more than $4bn in the first five days of September alone

� http://link.ft.com/r/J0VG55/PR0Y1R/NNT7T/C5PM3P/YHVPEQ/PJ/h?a1=2010&a2=9&a3=7

o German banks may need as much as $135 billion in extra capital under new international standards, the Federal Association of German Banks said.� Wall Street Journal

o Basel III: Banks await final rules on capital from Telegraph

� Central bankers from across the world will meet today to agree a series of changes to the amount of capital banks are required to hold, alongside other measures designed to make the world's financial system safer.

o German banks try to fend off Basel III from Financial Times

� Germany�s banks have launched a push to see off the threat of tough new international regulations, which they say could stymie their ability to function

o Greece exit from EU??:� Helena Smith of the Guardian reports, Exit from eurozone is Greece's worst option, says Jean-Claude Trichet:

� Greece's exit from the eurozone would be the "worst possible option", Europe's central bank chief said at the weekend amid concerns over the debt-stricken country's ability to pull itself out of crisis.

� Ahead of a crucial week for George Papandreou, the prime minister, with threats of renewed civil unrest over government austerity policies in the run-up to the leader's keynote annual economic speech, the ECB president sought to squash speculation that Athens' only solution was to revert to the drachma.

o Greece:�� Commenting on Greece, PIMCO's Bosomworth stated that he continues to see substantial risk that the country could default. He believes if the country is insolvent and could face problems if its borrowing costs remain high. In addition, he states that in the most optimistic scenario, the debt would rise to more than 140% of GDP.� TTN

o Greece:� Reuters) - Greek Prime Minister George Papandreou reshuffled his cabinet early on Tuesday to try to better deal with the debt crisis and signaled he would stay the fiscal course by leaving his finance minister unchanged.

o Friction on Financial Crisis Panel Is Downplayed � WSJ link

� A high-ranking member of the congressional commission investigating the U.S. financial crisis downplayed recent reports of dissension.

o Trading� WSJ(9/7) Schumer In A Trading Push

o U.S. Sen. Charles Schumer urged federal securities regulators to explore ways to slow some high-frequency trading at times of market stress and to investigate strategies that raise concerns of stock manipulation, including one known as "quote stuffing."

o The New York Democrat urged the Securities and Exchange Commission to launch a formal inquiry into whether computer-powered trading firms' rapid entering and canceling of stock orders, called quote stuffing, played a role in the "flash crash" of May 6, and to more broadly reconsider these participants' role in the U.S. marketplace.

o Commodities trading/ banks: Speculative Activity in Commodities Is Likely to Continue WSJ link

� Speculative investors are likely to remain a force in commodities markets despite signs that the big banks are bowing out.

� The exits by J.P. Morgan Chase & Co.'s and Goldman Sachs Group Inc. from proprietary trading sent a message that Wall Street banks are moving quickly to comply with tough new market regulations.

� http://online.wsj.com/article/SB10001424052748704855104575470081333114358.html?mod=WSJ_hpp_sections_markets

o California woes:� UCLA Business School Presses To Become Privately Funded -FT

o �The business school at the University of California, Los Angeles is preparing to ditch public funding and instead seek money from private donors, due to growing uncertainty over its home state's ability to finance higher education

o China Set on Lowering Property Prices from WSJ.com

o The Chinese government remains committed to forcing down housing prices, despite worries about a weak global economy and complaints from property developers.

o Brazil Economists Increase 2010 GDP Growth Forecast To 7.34% - DJ

o Peru's Central Bank Intervenes In Forex Market, Buys $132M (Dow Jones)--The Central Reserve Bank of Peru intervened in the foreign-exchange market Monday to buy $132 million.� The central bank has been purchasing dollars regularly since June 18, intervening to smooth out volatility in the exchange market. Peru's sol has been on an appreciating trend recently due in part to strong inflows of capital.

o S&P Raises Uruguay's Sovereign Rating On Economic Growth

o Dubai Holding unit delays loan repayment again

o (Reuters) - Dubai Holding's DUBAHC.UL main unit will delay repayment on a $555 million loan until November 30, the company said on Tuesday, the second time it has failed to meet a repayment deadline.

o UN: Crisis Had Less Impact On Foreign Investment Than Feared (AFP)

� The world economic crisis had a smaller impact on foreign investment than feared, a United Nations think tank said Monday, noting that less than a fifth of firms surveyed drastically divested as a result of the downturn.

� �A survey conducted by the U.N. Conference on Trade and Development, or Unctad, on 236 transnational corporations found that 18% of the respondents said that the crisis triggered large-scale divestments or closures of foreign subsidiaries.

o Yields in Japan's government-bond market are rising as investors brace for the possible election of a prime minister who favors higher spending.� WSJ

o China vs West, FX etc stories:�

o China, U.S. aim to ease tensions

� (Reuters) - China wants to reduce tensions with the United States through quiet talk, not shouting matches, a top diplomat told White House advisers on Tuesday, aiming to pave the way for a visit by President Hu Jintao early next year.

� Chinese officials made the conciliatory public comments in meetings with the U.S. National Economic Council Director, Larry Summers, and Deputy National Security Adviser Thomas Donilon. Both were in Beijing for talks

� http://www.reuters.com/article/idUSTRE6860CV20100907

o India PM warns China wants foothold in South Asia � Reuters link

� warned in rare public criticism of his country's rival for regional resources and geopolitical clout.

o China Think Tank Official: Expect Yuan To Compete With Dollar, Euro - DJ

� The yuan will likely become part of the global reserve currency system, competing with the dollar and the euro, a senior official at a prominent government think tank said in a prepared speech distributed Monday.

o Strong yuan would hurt China: economists � Reuters link

� Li Jianwei and Yu Bin, economists in a think tank under the State Council, or cabinet, said that a substantial rise in the yuan could cut growth next year to 8.4 percent from their baseline forecast of 10.2 percent.

� Writing in the latest issue of the Chinese-language Reform magazine, Li and Yu also said that Beijing should enhance the yuan's flexibility if the euro depreciates -- in effect, suggesting that the yuan should be allowed to fall against the dollar in those circumstances

o Company/ .industry news:

o ORCL up pre mkt..pos at Goldman today on mgmt moves - per BBG

�  Oracle Hires Former Hewlett Packard Boss Mark Hurd

� K+S AG trading lower on talk company calling analysts warning on guidance, SA

o Standard & Poor�s announces change to U.S. Index; KALU to replace SWSI in S&P 600

� �Kaiser Aluminum Corp. (NASD: KALU) will replace Superior Well Services Inc. (NASD: SWSI) in the S&P SmallCap 600 index after the close of trading on a date to be announced. Superior Well Services is being acquired by S&P 500 constituent Nabors Industries Ltd. (NYSE: NBR) in a deal expected to close soon, pending final conditions. Standard & Poor's will monitor this transaction, and post any relevant

o banks:�� Comerica�s TruPS Plan May Trigger Redemption Wave at U.S. Banks - BBG

� Comerica Inc.�s plan to retire trust-preferred securities early may save the lender millions of dollars on interest payments and trigger a wave of similar redemptions by U.S. banks.

o EU banks:� The Wall Street Journal has been analyzing the results of the European banking stress tests and wrote in a story published Tuesday that "some banks didn't provide as comprehensive a picture of their government-debt holdings as regulators claimed

o EU banks:�� German banks try to fend off Basel III from Financial Times

� Germany�s banks have launched a push to see off the threat of tough new international regulations, which they say could stymie their ability to function

o Barclays dn 3% tues�. Taps Diamond as CEO � WSJ Link

� Barclays elevated Robert E. Diamond Jr. to chief executive in a move that installs an American at the helm of the venerable British banking institution.

o Australia's biggest investment bank warns: Macquarie Group warns Monday, drops 5%, Australia's biggest investment bank, expects profit to fall 25% this year as advisory work dries up � WSJ

�  warned investors it would miss profit forecasts after weak markets took a toll on its trading and advisory business, sending its shares to a 15-month low

�  The forecasts follow two earlier warnings on market conditions and come as analysts and investors call on the bank to cut jobs or pay to protect earnings.

o Tech bellwether warns :� Hon Hai Precision dropped 2.7% Monday� after Chairman Terry Gou told The Wall Street Journal in an interview that the company was lowering its long-term target for annual sales growth to 15%, from twice that level previously.

o GlaxoSmithKline shares hit:� The British Medical Journal Monday said GlaxoSmithKline PLC's (GSK.LN) diabetes drug Avandia should never have been licensed and should be withdrawn from sale, a claim the company rejected

o GSK Urges Patients Not To Panic Over BBC's "Panorama" Monday � DJ

o Steel, inflation:�� steel companies :� Asian stock markets were mixed Tuesday though steel companies led the region on expectations for higher Chinese steel prices.� WSJ

� Steelmakers across the region were higher on hopes that they would benefit from higher steel prices in China. The SHFE benchmark January rebar contract was up 0.5% per ton after it rose 3.9% Monday on a report from the state-run Economic Information Daily on Monday, citing unnamed sources as saying 18 small-sized steelmakers in Wuan city, Hebei province were ordered to suspend steel production Sunday for between 20 days to a month in a bid to meet China's target to cut energy consumption.

o Steel, inflation:� ArcelorMittal, Other Steel Companies To Raise Prices � Handelsblatt

o LVS:� SJM Holdings asked the Macau government for permission to take over a strategically located piece of land into which a unit of Las Vegas Sands has already poured more than $100 million. The move by the casino operator, controlled by gambling magnate Stanley Ho, compounds the U.S. company's operational difficulties in China's fast-growing gambling hub � WSJ

o Is Letting Housing Market Crash the Only Way to Save It? � NYT

� Some economists and analysts are now urging a dose of shock therapy that would greatly shift the benefits to future homeowners: Let the housing market crash.

o miners: Severstal, the Russian steel maker controlled by billionaire Alexey Mordashov, said on Monday it swung to a second-quarter profit, but the results missed market expectations as the firm�s U.S. operations remained lossmaking.� MW

o Australia, miners: Australia's Gillard Retains Power after Securing Minority Backing

� Australian Prime Minister Julia Gillard secured a second term in office on Tuesday, winning the support of independent lawmakers to form a minority Labor government after losing her majority at elections last month.

� Gillard's success sent a shudder through mining shares and also the Australian dollar, with her government vowing to press ahead with a new mining tax and work towards a scheme that would force major polluters to pay for their carbon emissions - CNBC

� http://www.cnbc.com/id/39030973

o Political Stories:

o Democrats plan political triage to retain House - New York Times

� As Democrats brace for a November wave that threatens their control of the House, party leaders are preparing a brutal triage of their own members in hopes of saving enough seats to keep a slim grip on the majority.

� In the next two weeks, Democratic leaders will review new polls and other data that show whether vulnerable incumbents have a path to victory. If not, the party is poised to redirect money to concentrate on trying to protect up to two dozen lawmakers who appear to be in the strongest position to fend off their challengers

� http://www.insidebayarea.com/california/ci_15995785

o Republicans making gains against Democrats ahead of midterm elections

� Republicans are heading into the final weeks of the midterm campaign with the political climate highly in their favor, according to a new Washington Post-ABC News poll

o District Polls Are Troubling Signs for Democrats �from CQ

� While serious Democratic observers worry whether their party can somehow hang on to 218 seats in the House, more than a few Republican strategists and neutral observers have become convinced that the GOP is on the cusp of a stunning victory that could at least equal the party�s 52-seat 1994 gain.

o Banks Use Election as Payback for Reg Reform from American Banker

o Though Democrats scored a big political victory in passing regulatory reform, many are already paying for it as the financial services industry directs more of its contributions toward Republicans and moderates who tried to pare back the revamp.

o Small business prods Senate from POLITICO

o NSBA president Todd McCracken echoes Obama's call for action on the stalled credit bill

o Hey, O, give Mike a look from NY Post

o Does he protest too much? That question was on the minds of many New Yorkers this week as Mayor Bloomberg repeatedly denied speculation that he was in line to replace Treasury Secretary Tim Geithner to become President Obama's main money man, or to take any other job in the...

o Will Steve Forbes be the Tea Party Presidential Candidate in 2012? from zero hedge

o 81% rate U.S. economy as 'poor' - CNN poll

o The top U.S. commander in Afghanistan said the planned burning of Qurans on Sept. 11 by a Florida church could put American troops in danger. WSJ

o Whitman leads Brown in California governor's race� � Reuters link

o Iran increases nuclear stockpile � FT link

� Iran� Iran had as of mid-August produced at least 22 kilograms of higher-enriched uranium, which Iran says is for a research reactor, according to a restricted United Nations report seen by AFP Monday.

� Iran Hampering Investigation Into Nuclear Program � IAEA (AFP)

� Iran is hampering a long-running investigation into its controversial nuclear drive by refusing to allow United Nations inspectors into the country, the U.N. atomic watchdog said Monday.

o Terror: Reuters) - The threat of Islamist attacks in Germany is growing as numbers of people returning from militant camps on the Afghan-Pakistan border rise

o Blair Cancels Book Signing Amid Threats By Anti-War Protesters (AFP)--Britain's former prime minister Tony Blair on Monday canceled a planned book-signing session in London to promote his memoirs after anti-war protesters threatened to target it.

o Oil Tycoon Says PWC Caved to Kremlin �- WSJ link

o Russia's Putin hints at Kremlin return in 2012 �� Reuters link

o Treasury: No bailout of Afghanistan bank, but 'technical assistance' -� the Hill

� Reports Sunday claimed that the Afghan financial institution had stabilized after a weeklong run on the Kabul Bank.

o Fund Stories

o Hedge funds feel pressure with August results

� While August was, on average, a positive month for the industry, several big-name managers struggled to gain traction, with many more under pressure to ramp up the level of risk in their portfolios to boost year-end numbers, according to brokers.

� The average hedge fund returned 0.17 per cent in August, according to preliminary month-end numbers from Hedge Fund Research.

� The average fund was up 1.29 per cent this year until the end of July

� http://www.ft.com/cms/s/0/3f174224-b9df-11df-8804-00144feabdc0.html?ftcamp=rss

o Eddy Lampert Everything changed in August, however. Mr. Lampert took losses greater than the market's 4.5% tumble. According to investors, ESL now is flat on the year.

o Central Huijin Investment, the domestic arm of China's sovereign-wealth fund, will sell as much as $8.09 billion in new bonds in mid-September. WSJ

o Insurers fell in China after gains yesterday when the government said they could invest in private equity and real estate.

o China may relax capital rules for QDII funds: report

� China plans to relax rules to allow smaller fund houses to launch overseas investment products, the Securities Times reported on Monday

CANTOR TRADING RECAP

o Equity Recap

o What a difference 4 days can make and how fast sentiment can change. It seemed like ages ago when durable goods were horrible and everyone was lowering their gdp estimates, but not this week. They started taking stocks higher after Wednesday�s better pmi data out of china and numbers out of Australia and the euro-zone, while the m&a and bidders outbidding other bidders continued and so the market finished the week with all of the indexes up 3-5% while the volume continued to be paltry and participation the same, although there was a huge amount of short covering(we had all of the homebuilders to buy by week�s end, PHM BZH SPF),hell, even MTG logged some good news in financial space and we saw some of the bigger seasoned guys selling into this. For the week, the DOW was +3% , S&P 500 which finally took out its 50 day moving average Thursday of 1,080 was +3.7%), Nasdaq was +3.7% and Russell finished +4.4%. Breadth to the market had advancing issues outnumber declining issues almost 4-1 while internally, sell names outnumbered buy names 1 �-1, albeit quietly. Next week, things will be back to full staff with most pm�s, analysts and the sales force in general back from vacation and their kids back at school.

o Billy Clark and Team

o Rates Commentary

o The Treasury market opened up the New York session slightly lower vs. yesterday's closes. Choppy price action leading into today's main event, non farm payrolls with investors squaring away positions ahead of the release. The employment report was significantly better than expected with only 54K jobs lost versus an expected 105K, and August was revised better by 77K, private sector jobs rose 67K, 27K higher than expected, the unemployment rate did creep up to 9.6%. Treasuries as would be expected quickly plunged on this news with the long end once again leading the market lower, 5s traded to 1.536%, 10s 2.768% and 30s 3.87%, selling was also aided by the large corporate calendar that is expected next week along with auction setups. Treasuries came off their lows midmorning with dip buying and then from the worse than anticipated ISM non manufacturing at 51.5 expectations for 53.2. Treasuries quickly settled down trading an extremely tight range throughout the remainder of the day ahead of the Labor day weekend. 10/30s traded a wide range today moving from their wides around 111bps shortly after the payrolls report back inside 108bps by the end of the day.

o At 3PM Treasuries were lower in price across the curve with benchmark yields ~1.7-7.6 higher, the 10y was the worst performer.

o Next week the economic calendar will be extremely light, with many focusing on the $33Bln 3y notes, $21Bln 10y notes and $13Bln 30y bonds that the Treasury will be auctioning. The Fed will also conduct two more purchases in the 8/14-7/16 and 2/13-7/14 sectors.

o Primary Dealer

SECTOR NEWS WITH MACRO IMPLICATIONS

ENERGY

o DVN China National Offshore Oil Corp signs amendment agreements to production-sharing contracts on three deepwater blocks

o SDRL SeaDrill downgraded to hold from buy at Terra Markets

o BP, APA, OXY Industry bankers say Apache, Occidental may buy part of BP's stake in Prudhoe Bay - FT

o NE Noble could be a good buying opportunity - Barron's

o BP restarts sale of Alaskan assets: report

o BP has revived the sale of its Alaskan assets after failing to offload them to U.S. oil and gas company Apache in July, the Financial Times reported on Monday.

o Is a Wide-Ranging Deal Between BP and Its Russian Partner in the Cards? from WSJ.com

o It wasn�t long ago that BP's Russian joint venture was a major headache, with the two sides sparring over management of the operation. Now, TNK-BP, as the venture is known, could help cure what ails the U.K. oil giant.

o Mexican drug cartels cripple Pemex operations in basin from Los Angeles Times

o The kidnappings of five petroleum company workers along with 30 others have terrorized the oil community, paralyzing segments of the business. Months later, families have still heard nothing.
The meandering network of pipes, wells and tankers belonging to the gigantic state oil company Pemex have long been an easy target of crooks and drug traffickers who siphon off natural gas, gasoline and even crude, robbing the Mexican treasury of hundreds of millions of dollars annually

o Brazil stakes future on $75bn Petrobras offer from Financial Times

o The mere fact Brazil is attempting this now, and on the eve of a presidential election, is a sign of brazen confidence

o Royal Dutch Shell PLC (RDSB) Monday confirmed that it had signed a letter of intent with Finnish energy company St1 last Thursday, to start exclusive talks over the sale of the company's downstream assets in Sweden and Finland.

o US rig owner Transocean accused of compromising safety in North Sea from guardian.co.uk

o India is considering whether to sell 10% of its stake in Indian Oil and 5% of its stake in Oil & Natural Gas by March.� WSJ

o China's clean-energy initial public offerings WSJA(9/7) For Investors, Pricing Is Key In China's IPO Flood

o Propelled in part by the backing of powerful Beijing bureaucrats, green-themed Chinese companies are poised to reap billions of dollars from public offerings to new investors in coming months.

o �Among a spate of clean-energy initial public offerings heading to market over the next few months is Chinese wind-turbine maker Xinjiang Goldwind Science & Technology Co., which scrapped a US$1.2 billion Hong Kong IPO in June.

o Mingyang Electric is planning to raise between US$300 million and US$500 million from a U.S. IPO later this year. China Suntien, the renewable-energy division of Hebei provincial government's investment arm, is seeking about US$500 million in Hong Kong.

o The predominance of IPOs by Chinese companies is a testament to Beijing's push to support environmentally friendly energy sources.

o 'Floating Chernobyls' to hit the high seas from Telegraph

o "Floating Chernobyls-in-waiting" are coming to a sea near you after a major international agreement was signed last week, according to critics of nuclear power.

o Salazar says Arctic drilling must wait until more is known about potential pitfalls from Los Angeles Times

o Interior Secretary Ken Salazar is making it clear that he's in no hurry to open the door to new exploratory oil and gas drilling in the offshore Arctic -- not, he said, until more is known about the potential pitfalls.

o Rosneft appoints technocrat president from Financial Times

o Rosneft executive Eduard Khudainatov has been picked by Russian president Dmitry Medvedev to replace Sergei Bogdanchikov as head of the country�s top oil producer

UTILITIES

o NGG National Grid chairman John Parker to step down at end of next year - FT

o NGG New York, Massachusetts investigating National Grid over questionable expenses - Sunday Telegraph

o CMS Investors in CMS Energy could see a higher stock price and an attractive yield - Barron's

o NFG National Fuel Gas company announces sale of its Landfill Gas Business

INDUSTRIALS

o K+S AG trading lower on talk company calling analysts warning on guidance, SA

o MMM:� 3M earmarks $2bn for deals in growth areas from FT.com

� US group targets at least two deals this year even after making two acquisitions in the security services business in the past month

o SI Siemens upgraded to buy from neutral at UBS; target increased to �85 from �80. � SA

o RTN Raytheon's diversity means the company isn't likely to be hurt by any particular cut in defense spending - Barron's

o OCNF OceanFreight reports Q2 EPS $0.01 ex-items

o EXM Excel Maritime Carriers enters into time charter agreement for the M/V Powerful

o SWHC FedBizOpps website discloses Smith & Wesson contract award

o BA:� WTO To Issue Boeing Subsidies Verdict September 15 � AFP

� The World Trade Organization will issue its long-awaited opinion on the European Union's challenge to American subsidies to U.S. aerospace giant Boeing Inc. (BA) next week,

o Russia Medvedev forecasts early grain ban removal from Reuters

� Moscow on Monday gave another mixed signal about the duration of a grain export ban set initially from August 15 to December 31, but European Union grain markets continued to rise, apparently ignoring the latest twist.

o OI� Glass manufacturer Owens-Illinois Inc. (NYSE: OI) has launched a 10-year EUR500 million high-yield bond to part finance its recent $603 million acquisition of Brazilian glass maker Companhia Industrial de Vidros, people familiar with the situation said Monday

AUTOS

o BMW plans big push�BBG

o Daimler to resume dividend at twice last rate

� "I feel very comfortable" with analysts' estimates for an average dividend of 1.15 euros per share, Chief Financial Officer Bodo Uebber told Reuters in an interview.

� http://www.reuters.com/article/idUSTRE68517R20100906

o Volvo receives order from Singapore for 300 Volve double-deck buses

o Daimler says Q3 has gone well, CFO says he is comfortable with market estimates of �1.15/share -- Reuters

o F Chongqing Changan Automobile talking with Ford about extending partnership beyond China � Reuters

o HMC Times of India provides additional information on rumored sale of Honda Motor's stake in Hero Honda

o Volkswagen downgraded to hold from buy at Citi

o GM Will Face Questions About Opel In IPO Promotion � WSJ

� �As General Motors Co. gears up to pitch its initial public offering to investors this fall, one of the tougher tasks it faces is making the case that its Opel operations in Europe can be fixed.

o GM's AmeriCredit acquisition irks feds from NY Post

� Former GM Chief Ed Whitacre's decision to resign last month instead of staying as planned through the automaker's initial public offering came on the heels of Whitacre's decision to quietly acquire a subprime lender without consulting the government, according to people familiar with the situation

o Taxpayers may face initial loss on GM IPO: sources from Reuters

� The U.S. government is likely to take a loss on General Motors Co in the first offering of the automaker's stock, six people familiar with preparations for the landmark IPO said.

o Mitsubishi, Peugeot To Make Commercial Electric Vehicle �Nikkei

o Hyundai Bidding War Looms � WSJ link

o Toyota will push safety in ad blitz from Automotive News

� Its image still bruised by driver complaints about unintended acceleration, Toyota Division has decided to revamp its marketing message and shift the focus to safety in a big way, top executives said last week. Toyota Motor Sales U.S.A

o Dealers see Fiat profits -- but when? from Automotive News

� Don Lee thinks he can make money with Fiat and Alfa Romeo at a vacant showroom next to his dealership.

o Kia says vice chairman resigned because of recalls from Automotive News

� Kia Motors Corp. Vice Chairman Jeong Sung Eun resigned on Sept. 3 to take responsibility for a recent recall of four models, a company spokesman said.

TRANSPORTS

o IATA SAYS INDICATORS FOR AIR FREIGHT POINTING TO SLOWER GROWTH

� IATA: AIR FREIGHT INDICATORS NOT POINTING TO `DOUBLE-DIP'

� *IATA: AIR FREIGHT CAPACITY NOW COMING BACK INTO MARKET - BBG

o EasyJet reports August passenger statistics; Passengers 5.20M vs year ago 4.80M; Load factor was 92.3% vs year ago 91.8% -

o DRYS DryShips files mixed shelf of indeterminate amount

o Shippers call for container-lines' cartel to be subjected to anti-trust law - South China Morning Post�

o PAC Pacific Airport Group announces suspension of preliminary injunction

o AMR AMR Corp reports August traffic +3.1% Capacity +3.2%; Load factor +0.1 points to 84.6%

o British Airways�� (Dow Jones)--British Airways PLC (BAY.LN) cabin crew Monday took their first step toward another walkout after voting in favor of another strike ballot.

� http://www.cnbc.com/id/39031591

o Unite seeks to meet with British Airways next week - FT

o Air France-KLM reports August passenger traffic

o Passenger� Load factor down (0.3%) to 84.5%

o Cargo Load factor rose +0.8% to 64.3%

o Aer Lingus reports August traffic statistics

� Load factor +2.7 percentage points to 85.7% vs year ago 83.0%

o Norwegian Air Shuttle reports Aug traffic statistics

� Load factor was 79% vs year-ago 81%

o Air Berlin reports Aug traffic statistics

� Capacity utilization was 83.5% vs year-ago 84.3%

MATERIALS

o POT Potash deal talk continues

� Reuters discusses China's options as BHP chases POT Potash Corp

� http://www.reuters.com/article/idUSSGE68601420100907

� RIO Tinto CEO downplays chances of a bid for POT Potash- Telegraph

� Rio sold its undeveloped potash business to Brazilian miner Vale 18 months ago and Albanese has stressed that the company is a miner, not a farmer

� "Even a few weeks ago, I think people wouldn't have known the difference between potash and phosphates, both agricultural fertilisers," he says.

� http://www.telegraph.co.uk/finance/newsbysector/industry/mining/7981689/David-Cameron-could-take-some-lessons-from-us-says-Rio-Tinto-chief.html

� China wealth fund, Sinochem may bid for Potash- Marketwatch

� China's Sinochem International and Chinese sovereign wealth fund China Investment are mulling a joint offer for Canadian fertilizer firm Potash on orders from the Chinese govt

� http://www.marketwatch.com/story/china-wealth-fund-sinochem-may-bid-for-potash-2010-09-06

� BHP needs come to a deal with Canpotex to get approval, lawyers say- Telegraph

� All BHP needs to do to gain approval for its hostile bid for PotashCorp is to agree to preserve head-office jobs and support Canpotex, the fertiliser-marketing company, according to Canadian lawyers

� http://www.telegraph.co.uk/finance/newsbysector/epic/blt/7980911/China-looking-to-stymie-BHPs-PotashCorp-bid.html

� China Needn�t Fear BHP Buying Potash, Exec Says- WSJ

� http://blogs.wsj.com/chinarealtime/2010/09/06/china-neednt-fear-bhp-buying-potash-exec-says/

o ARG, APD Air Products raises offer for Airgas to $65.50/share in cash from prior offer of $63.50

o ARG Airgas' board says it will review the revised offer from Air Products (APD)

o Commodities Corner says seasonal factors, including demand in India ahead of Western holidays, should boost the price of gold in September - Barron's

o China to consolidate businesses supplying rare earths � Nikkei

� The State Council said yesterday that it will have major state companies absorb the small and medium-sized businesses in southern China that are mining and exporting the metals cheaper than China would like

� http://e.nikkei.com/e/ac/tnks/Nni20100907D06JFA18.htm

o Australia: Mineral resources rent tax to raise far less money than Australian government promised - The Australian

o Australia, miners: Australia's Gillard Retains Power after Securing Minority Backing

� http://www.cnbc.com/id/39030973

o BHP: Looking to develop a potash mine with a China company Zhongchuan International Mining � TTN

o steel companies :� Asian stock markets were mixed Tuesday though steel companies led the region on expectations for higher Chinese steel prices.� WSJ

o Steel, inflation:�� steel companies :� Asian stock markets were mixed Tuesday though steel companies led the region on expectations for higher Chinese steel prices.� WSJ

o Steel, inflation:� ArcelorMittal, Other Steel Companies To Raise Prices - Handelsblatt

� Major steel companies in Germany and across Europe will raise their prices significantly in early October, particularly in the automobile and engineering sectors, German business daily Handelsblatt reports Monday.

� The newspaper quotes an ArcelorMittal (MT) manager as saying the company will raise prices.

� ArcelorMittal intends to raise prices for hot-rolled steel 5% to around EUR620 a ton, the paper says, due to the recent sharp rise in raw material costs

� ArcelorMittal declined to comment on the report. Salzgitter and ThyssenKrupp weren't immediately available for comment.

o ArcelorMittal (MT) and financial services and infrastructure company Indiabulls are in talks about setting up a mining joint venture in India, the Press Trust of India reported Monday, citing Indiabulls' chief executive officer, Gagan Banga.

o Severstal CFO says Q3 result will be worse than Q2 on lower steel prices � Reuters

o Severstal swings to second-quarter profit from MarketWatch.com

� Severstal, the Russian steel maker controlled by billionaire Alexey Mordashov, said on Monday it swung to a second-quarter profit, but the results missed market expectations as the firm�s U.S. operations remained lossmaking.

o Vale to Carve Out a Fertile Future � WSJ link

� This week, Brazilian miner Vale SA, the world's biggest iron ore miner, sets off on a new goal: to become the world leader in the production of crop fertilizers.

� On Friday, Vale hopes to begin by consolidating its fertilizers empire in a restructuring of some operations that will form a new company, Vale Fertilizantes SA. The Rio de Janeiro company has earmarked $12 billion to be spent on new projects and acquisitions in fertilizers in the next three years, according to Vale fertilizers director Mario Barbosa

o First Quantum Mineral Ltd. (FQ.T) is seeking more than $1 billion in compensation for the expropriation of two Congolese mines, a senior executive said Monday.� DJ

TECH/MEDIA/TELECOM

o UMC August sales grow 20% on year- Digitimes

� Pure-play foundry United Microelectronics Corporation (UMC) has announced revenues of NT$10.89 billion (US$341 million) for August 2010, up 20.13% on year. On a sequential basis, revenues were almost flat from the NT$10.82 billion generated in July.

� UMC's revenues for the third quarter are expected to grow 9.57% sequentially to NT$32.6 billion, which will be in line with the company's guidance

o Infineon CEO quashes hopes for bonus div- Reuters

� "That way we are in the position to invest even in an economic trough, just like other rivals did in the past crisis," Chief Executive Peter Bauer said

� http://www.reuters.com/article/idUSLDE6851UO20100906

o HPQ, ORCL: Mark Hurd, who resigned as chief executive of Hewlett-Packard last month, is in talks to join Oracle as a top executive- WSJ. http://www.bloomberg.com/news/2010-09-05/mark-hurd-in-discussions-to-join-oracle-as-a-top-executive-wsj-reports.html

o ORCL: Barron's Plugged In discusses talk of Hurd being Ellison�s possible successor

� The rubs are that Ellison hasn't indicated any desire to step aside and that he has an able successor in place: co-president Safra Katz

� http://online.barrons.com/article/SB50001424052970203681904575461660947603120.html

o Foxconn�s Gou Cuts Long-Term Sales Growth Target- BBG

� http://noir.bloomberg.com/apps/news?pid=newsarchive&sid=avyQq8WO2DsY

o Asustek, Foxconn: raise employee salary- Apple Daily

o HTC - consolidated sales in August more than doubled to T$24.2 billion ($756 million) from a year earlier-Reuters

o INTC: Motherboard makers expect new Intel platform in 1Q11 to trigger strong demand- Digitimes

o Notebooks: Notebook supply chain still has no clear visibility for December orders- Digitimes

o NOK: Tapani Kashinen, told Finnish newspaper Kauppalehti that the Nokia N8 could begin shipping as early as September 30^th- BoyGenius

o LG, LCDs: LG Electronics Aims to Raise LCD TV Sales By 40 Percent in 2011- BBG

o Samsung to Invest Heavily as It Pursues New Businesses- WSJ

� Samsung Electronics is considering investing a record 30 trillion won ($25.55 billion) next year to bolster existing operations and expand into new businesses.

� http://online.wsj.com/article/SB10001424052748703417104575472970931883624.html?mod=rss_whats_news_technology

o C&W, SingTel: Cable and Wireless Worldwide in SingTel's sights- Independent

� Cable & Wireless shares spiked last week following rumours that US rival AT&T was putting together a takeover plan. Some analysts have dismissed the speculation surrounding AT&T's interest, but SingTel has contacted bankers in Asia and Europe to discuss its own ideas for the Bracknell-based company

� http://www.independent.co.uk/news/business/news/cable-and-wireless-worldwide-in-singtels-sights-2070603.html

o GOOG: U.S. Justice dept probes GOOG Google's ITA Software deal- WSJ

� http://online.wsj.com/article/SB10001424052748704392104575476013389304440.html

o T-Mobile in talks to distribute Huawei Technologies' new Google (GOOG) powered smartphone this holiday season. The Ideos phone could be priced under $100 in the U.S.- TheStreet.com

o VOD: John Bond to step down as Vodafone chairman- Marketwatch

o CML CVLT DELL ISLN: Deals Offer DELL Multiple Paths To Goal- WSJ

� http://online.wsj.com/article/SB10001424052748704392104575475973060404034.html

o NXP: Philips sells NXP stake to underfunded UK pension- Reuters

o Telco: Private equity groups line up bids for Polkomtel- FT

� http://www.ft.com/cms/s/0/cdc27cd8-b907-11df-99be-00144feabdc0.html

o Software AG plans to buy a �larger� software company every two to four years- Financial Times Deutschland

o CSTR, AAPL: Coinstar Builds Apple Ties as It Seeks Online Partner. The company says it needs a partner to deliver movies to homes and portable devices to compete with Netflix online service- BBG

� http://www.businessweek.com/news/2010-09-03/coinstar-builds-apple-ties-as-it-seeks-online-partner.html

o AAPL: Apple TV hoping for regulatory relief from an idea that the FCC heard in April on a proposal that cable and satellite operators let viewers use any "smart video devices" available in stores to connect to their TV service. It says it wants to "foster a competitive retail market" in the devices.

� http://online.wsj.com/article/SB10001424052748703946504575469861101681390.html?mod=WSJ_hps_MIDDLETopStories

o AMZN, MSFT: Amazon steals Microsoft's Director of Game Platform Strategy for some reason- Engadget

CONSUMER

o Rosetta Stone's Management and Marketing Woes from BusinessWeek

o APP:� American Apparel in talks with restructuring firm

o http://www.reuters.com/article/idUSTRE68308T20100904?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+reuters%2FbusinessNews+%28News+%2F+US+%2F+Business+News%29

o CPB:� Campbell Soup CPB: Premier Foods led the mid-cap risers friday , surging 20.1 per cent to 21p, after a stock overhang cleared. The sharp gain also encouraged takeover and break-up speculation, with Campbell Soup Company considered the most likely among potential bidders for the debt-burdened bread maker. FT

o http://www.ft.com/cms/s/0/c05c3f72-b725-11df-839a-00144feabdc0.html

o PG P&G Chief Executive McDonald on Lookout for �Global Brands� � BBG

o Procter & Gamble Co. Chief Executive Officer Bob McDonald says his company is on the lookout for brands with international appeal.

o �I�d love to buy more global brands,� McDonald said in a Sept. 2 interview at Bloomberg headquarters in New York.

o ��While McDonald, 57, declined to specify any brands, he said the world�s largest consumer-products company has the ability to pounce if anything comes along. P&G generated $16.1 billion in cash from operations last year

o TSN Tyson Foods moves away from machinery to increase profit � WSJ

o G Genpact renews contract with ICBC Leasing; financial details weren't disclosed

o Exane BNP Paribas upgrades Luxury Goods, downgrades General Retail; Luxury Goods sector upgraded to Neutral from Underperform; General Retail Sector downgraded to Underperform from Neutral - SA London

o BUD Anheuser-Busch InBev removed from Convictions List at Oddo� - SA London

o BTI British American Tobacco upgraded to buy from neutral at Bank of America Merrill Lynch; target increased to �25 from �24. - SA London

o DHI, PHM, LEN, TOL, BZH, RYL, MTH, MDC, AWI, MHK Barron's says home builders are poised to rally on signs of improvement in the housing market; Companies mentioned include D.R. Horton (DHI), PulteGroup,� Lennar, Toll Brothers, Beazer Homes, Ryland Homes, Meritage Homes, M.D.C. Holdings, as well as suppliers Armstrong World Industries and Mohawk Industries . - Barron's

o DPS Dr Pepper Snapple reports that employees at Williamson plant rejected latest contract offer

o OSK Oshkosh awarded $20.4M US Army contract

o TWI Titan International will implement a price increase for the aftermarket on Titan branded OTR tires

o CSKI China Sky One Medical guides full year revenue to $128-136M vs prior $160-164M and Reuters $148.7M; CFO resigns

o Est�e Lauder Touches Up Makeup Push from WSJ.com

o To lure shoppers to its department-store counters, Est�e Lauder CEO Fabrizio Freda is tossing aside old traditions like hidden price tags, nagging consultants and glass cases that keep makeup out of reach

o Wheat futures rise to 3 week high

o New Delhi set to fuel cotton price rise from Financial Times

� The world�s second-largest exporter has unexpectedly extended export restrictions on the fibre, reversing promises made three weeks ago

o Private equity funds TowerBrook Capital and Gala Capital are studying the possibility of an intital public offering for British-based shoe designer Jimmy Choo, Spanish newspaper Expansion reported on Tuesday.

o So the first results from Ocado since its, shall we say, underwhelming flotation are here, and the market seems not to like them much.The online grocery business, whose main customer is Waitrose, said sales for the three months to the start of August had risen 29.5% - guardian

o Whitbread trading statement: total Group sales up +14.0%; like-for-like sales +7.9% in the 24 weeks to 19-Aug

GAMING, LODGING, & LEISURE

FINANCIALS

o Comerica�s TruPS Plan May Trigger Redemption Wave at U.S. Banks - BBG

o Comerica Inc.�s plan to retire trust-preferred securities early may save the lender millions of dollars on interest payments and trigger a wave of similar redemptions by U.S. banks.

o FXCM FXCM Inc files for $200M IPO through Credit Suisse, J.P. Morgan and Citi��

o WLBC Western Liberty Bancorp files prospectus with SEC in connection with the proposed merger with Service1st Bank

o BBX BankAtlantic files $125M secondary

o Standard & Poor�s announces change to U.S. Index; KALU to replace SWSI in S&P 600

o CTP CTPartners Executive Search files $34.5M IPO through William Blair and CL

o Commodities trading/ banks: Speculative Activity in Commodities Is Likely to Continue WSJ link

o Speculative investors are likely to remain a force in commodities markets despite signs that the big banks are bowing out.

o The exits by J.P. Morgan Chase & Co.'s and Goldman Sachs Group Inc. from proprietary trading sent a message that Wall Street banks are moving quickly to comply with tough new market regulations.

o http://online.wsj.com/article/SB10001424052748704855104575470081333114358.html?mod=WSJ_hpp_sections_markets

o Consumer finance rebounds from crisis from Financial Times

o Finance companies that lend to consumers and smaller businesses in the US are finding it easier to fund themselves in the wholesale credit markets, marking a comeback from their troubles during the financial crisis

o Citi under fire over deferred tax assets from Financial Times

o Citigroup is at the centre of a dispute among analysts and accounting experts over whether it should set aside funds to cover $50bn of deferred taxes, a move that would reduce its capital buffer and weaken its balance sheet

o Catching Up With Citigroup from TheStreet.com

o Citigroup's expansion is capturing the attention of hedge funds and analysts.

o Basel committee seeks 9 percent Tier 1 capital: report

o (Reuters) - Global banks will be required to hold Tier 1 capital of nine percent including a 3 percent so-called "conservation buffer," German weekly Die Zeit reported, quoting a draft proposal from the Basel Committee, the body tasked with drawing up global banking rules

o Basel III: Banks await final rules on capital from Telegraph

o Central bankers from across the world will meet today to agree a series of changes to the amount of capital banks are required to hold, alongside other measures designed to make the world's financial system safer.

o German banks try to fend off Basel III from Financial Times

o Germany�s banks have launched a push to see off the threat of tough new international regulations, which they say could stymie their ability to function

o Stress Tests Missed Debt at EU Lenders� � WSJ Link

o EU banks:�� Sole European Bank Needs $60 Million USD And Comes Crawling To ECB, Confirming USD-Libor Funding Process Impaired � link from zero hedge

o Today, the ECB announced one sole bank was allotted $60 million USD via its Fed-swap facilitated liquidity providing operation. At a comparable operation last week, the ECB announced that just one, almost certainly the same bank, had requested $40 million in dollar-denominated funding from the ECB. What is troubling is not that just one bank requested such a paltry sum of capital to last it for another 168 hours, but that precisely one bank did, indicating that the funding situation is so bad in Europe that a bank is unable to find a token $40 million in the interbank market and via traditional means, that it is forced to beg to the institution of last reserve, the ECB

o EU banks:�� German banks try to fend off Basel III from Financial Times

o Germany�s banks have launched a push to see off the threat of tough new international regulations, which they say could stymie their ability to function

o EU calls for 'urgent' action on bank levy from Telegraph

o The European Union's top official in charge of financial markets is set to criticise Britain's proposed banking levy as he calls for urgent action on designing a common tax on the industry.

o Barclays dn 3% Tuesday

o Barclays Taps Diamond as CEO � WSJ Link

o Barclays elevated Robert E. Diamond Jr. to chief executive in a move that installs an American at the helm of the venerable British banking institution.

o Should Barclays be run by an investment banker? from� guardian.co.uk

o warned investors it would miss profit forecasts after weak markets took a toll on its trading and advisory business, sending its shares to a 15-month low

o The forecasts follow two earlier warnings on market conditions and come as analysts and investors call on the bank to cut jobs or pay to protect earnings.

o Cross-border lending by banks rises from Financial Times

o Cross-border lending by banks rose at the start of this year for the first time since the collapse of Lehman Brothers in a sign that the reversal of financial globalisation seen in the past two years is coming to an end

o AIG: Efforts by China Strategic Holdings and its consortium partner to buy AIG's Taiwanese life-insurance unit appear to be nearing an unsuccessful end.� WSJ

o German banks may need as much as $135 billion in extra capital under new international standards, the Federal Association of German Banks said.� Wall Street Journal

o Macquarie Group warns , Australia's biggest investment bank, expects profit to fall 25% this year as advisory work dries up � WSJ

o Anglo Irish Bank Close To Being Wound Down? CNBC

o Derivatives Still a Fed Worry from American Banker

o Federal Reserve officials are on the lookout in case Wall Street banks try to devise more complex derivatives instruments aimed at circumventing new regulations.

o Banks Use Election as Payback for Reg Reform from American Banker

o Though Democrats scored a big political victory in passing regulatory reform, many are already paying for it as the financial services industry directs more of its contributions toward Republicans and moderates who tried to pare back the revamp.

o Insurers fell in China after gains Monday� when the government said they could invest in private equity and real estate.

REAL ESTATE

o Senior Lenders Moving To Foreclose On NYC's Stuyvesant Town � WSJ

o The battle over Manhattan's giant PeterCooper Village and Stuyvesant Town apartment complex intensified Saturday as the banks overseeing the $3 billion first-mortgage debt on the property moved to foreclose.

o The banks, including Bank of America Corp. and U.S. Bancorp, have set a public auction for the 56-building complex for Oct. 4, according to a foreclosure notice viewed by The Wall Street Journal.

o AHT Ashford Hospitality files $50M equity distribution agreement with JMP Securities

o Is Letting Housing Market Crash the Only Way to Save It? � NYT

o Some economists and analysts are now urging a dose of shock therapy that would greatly shift the benefits to future homeowners: Let the housing market crash.

o New mortgage-relief plan set for Tuesday launch from MarketWatch.com

� The Obama administration on Tuesday will launch its latest efforts to rescue the failing housing market

� The program, first announced in March, will focus on reducing mortgage balances

o Real Estate Weekly: Home-buyer tax credit not likely to make an encore from MarketWatch.com

o The real-estate industry was abuzz with chatter earlier this week about the government offering another home-buyer tax credit, after Shaun Donovan, HUD secretary, said on CNN that it was too early to tell if the credit would make a return.

o New Program for Buyers, With No Money Down from NYT

o Fannie Mae is getting back in the market for mortgages with no down payment, available to new home buyers in four states

o Fannie Mae tries to stimulate market for foreclosed homes from L.A. Times

o The mortgage giant quietly launches the HomePath program, which offers subprime-era terms for buyers: minimal down payments, no appraisals, no mortgage insurance and lower minimum credit scores.

If you're a buyer with little cash or a small-scale investor looking for a deal on a foreclosed house, a little-publicized national lending program could be just what you need this fall.

o In struggling housing market, buyers and sellers are out of sync from Wash Post

o Jack Donnelly put off selling his Capitol Hill rowhouse for three years until he thought he saw glimmers of life in the housing market this past spring. At $950,000, he said, the red brick Victorian is a "solid deal."

o Commercial real estate from FT.com � Lex

� The yield differential between US commercial real estate and Treasuries is the widest since the financial crisis

o Short-sale 'flopping' may be next big housing scam from L.A. Times

� Lenders lose an estimated $310 million annually in undervalued short-sale transactions, according to a study released in August.

o Keefe, Bruyette & Woods downgrades AVB, MAA, SPG, others

o Analysis: Underwater mortgages are the real problem in housing

o It doesn't make sense for the U.S. to spend money to prop up the housing market by giving buyers incentives, but that doesn't mean sitting back and letting prices crash would "magically" bring the housing market back to life, as some have suggested, according to The Economist. At the core of the problem are homeowners with underwater mortgages who can't afford to sell at prices buyers are willing to pay. "Driving those prices lower won't change that fact," the magazine notes. The Economist/Free Exchange blog (06 Sep.) , The New York Times (free registration) (05 Sep.)

o MBS issued by Ginnie Mae turn into a top-performing investment

o Mortgage-backed securities issued by Ginnie Mae of the U.S. are once again becoming a top-performing investment. Mutual funds that invest in Ginnie Mae-issued MBS have gained 24.8% on average during the past three years, according to Lipper. Meanwhile, the Standard & Poor's 500 stock index has plunged more than 20%. USA TODAY (06 Sep.)

HEALTHCARE

o GlaxoSmithKline:� The British Medical Journal Monday said GlaxoSmithKline PLC's (GSK.LN) diabetes drug Avandia should never have been licensed and should be withdrawn from sale, a claim the company rejected

o Elan Corp takes out injunction in Irish High Court against two of its directors � FT

o UAHC United American Healthcare holder Strategic Turnaround Equity Partners nominates another individual for election to board

o PLX Protalix BioTherapeutics names Tzvi Palash COO

o GSK GlaxoSmithKline makes announcement ahead of BBC TV programme which could alarm patients and their families about the use of Avandia

o Bayer AG says European Commission has approved a new formulation of Levitra

o SHPGY Shire starts tender offer following previously announced offer to buy Movetis

o Roche Holding downgraded to neutral from buy at Bank of America Merrill Lynch; target cut to CHF160 from CHF185. - SA London

o GSK GlaxoSmithKline upgraded to buy from neutral at Bank of America Merrill Lynch; target increased to �14.70 from �13.50. - SA London

o GSK UK's MHRA panel voted unanimously in July that GlaxoSmithKline's Avandia should be withdrawn - BBC

o GENZ Sanofi-Aventis prepared to raise bid for Genzyme -- MarketWatch

o ICGN Icagen to effect previously approved 1-for-8 reverse stock split

OTHER STORIES

o Changes in the latest Investor's Business Daily 100 List: Added: TIBX, AAPL, JAS, EBIX, ACTL, AMZN, UNP, SINA, DE. Deleted: ABX, TSCO, MOS, MED, SRCL, MKTX, CEO, BBD, ADTN.

o Barron's summary�

o Cover story: surveys ten market strategists on their views for the rest of the year

o NE Noble� could be a good buying opportunity

o Investors in CMS Energy (CMS) could see a higher stock price and an attractive yield

o The impact public sector budget cuts might have on five companies

o Raytheon's (RTN) diversity means the company isn't likely to be hurt by any particular cut in defense spending

o Technology Trader discusses Apple's (AAPL) recent product launches

o The Trader says investors are most comfortable sitting on the fence going into November

o Asia Trader says China's nascent stock rally could soon be over

o The Striking Price discusses the renewed interest in options as a hedge against risk as institutions rely less on modern portfolio theory in the face of global volatility

o gold� Commodities Corner says seasonal factors, including demand in India ahead of Western holidays, should boos the price of gold in September

o GVA, STJ, OSK, MOT, DELL Barron�s discusses the impact public sector budget cuts might have on select companies ; Noting that the IT, industrial, and health-care sectors are especially exposed to cuts in public budgets, Barron's discusses the potential impact on five companies. Granite Construction gets 80% of its revenues from the public sector with its focus on infrastructure projects, where spending cuts are likely

o DHI, PHM, LEN, TOL, BZH, RYL, MTH, MDC, AWI, MHK Barron's says home builders are poised to rally on signs of improvement in the housing market; Companies mentioned include D.R. Horton , PulteGroup,� Lennar, Toll Brothers, Beazer Homes, Ryland Homes, Meritage Homes, M.D.C. Holdings, as well as suppliers Armstrong World Industries and Mohawk Industries .

o OXY, AAPL, MCD Barron's interviews Duncan Richardson, chief equity investment officer at Eaton Vance�

EUROPE TRADING WRAP

o Energy

o Total � 1.2%. Nigeria workers to extend strike (BBG)

o EDF � 0.7%. New buy at RBS.

o Mining

o Julia Gillard wins Australian election battle.

o Rio Tinto � 2.1%, Biliton � 1.3%.

o Boliden + 2.3%. Vague bid rumours from local market.

o Mittal � 1.5%. To raise steel prices 5%.

o Healthcare

o ITX SM conv. buy @ GS tgt �70

o GNK LN trading statement - trading well

o WTB LN upbeat trading statement/ grp sales +14%

o Financials

o BARCLAYS CONFIRMS BOB DIAMOND TO REPLACE JOHN VARLEY AS CEO

o Morgan Stanley Sees 28% Upside to Barclays

o DEUTSCHE BANK PRICE EST. CUT TO EU57 VS EU58 AT MORGAN STANLEY

o RAIFFEISEN INT'L PRICE EST. RAISED TO EU41 VS EU40 AT CITI

o Raiffeisen May Need EU1.25 Bln Capital Hike by 2012, Citi Says

o Pension Funds Demand Compensation From Henderson, Times Says

ASIA TRADING WRAP

Asia Tuesday

o Japan

� NKY-0.81%, TPX -0.45%

� NKY fell as the yen strengthened on speculation the Fed will print money to bolster the economy and on renewed European sovereign-debt risk. Turnover on the TPX rose to 1.04 trillion yen from 1.01 trillion yen yesterday

� Stocks fell across most sectors led by tech, consumer, industrials, health care and oil & gas. Banks, real estate, telecom and steelmakers rose

� Exporters fell as the yen strengthened on speculation the Fed will print money to bolster the economy and on renewed European sovereign-debt risk: autos -1.13%, CE -0.43%, precision -0.57%

� Iron & steel +1.46% as benchmark hot-rolled coil prices in China rose 3.5% as steelmakers in Hebei province shut mills after the local government limit electricity supply to reach power efficiency targets

� REITs 0.00% after report the government may revise the regulation to allow REITs to retain more than 10% of their earnings to finance operations after the market shrank by more than half in the past three years

� Traders -1.09% after crude oil price fell

� Best performing sectors on the TPX: iron & steel +1.46%, airline +0.63%, other financing +0.53%; underperforming sectors: rubber products -1.58%, nonferrous metals -1.51%, traders -1.09%

o Hong Kong

� HSI +0.22%; HSCEI +0.04%

� Stocks rose as steelmakers advanced with mainland move to curb overcapacity. Turnover on the HSI fell to HK$26.51B from HK$30.89B yesterday

� Steel names rose. The benchmark hot-rolled coil prices in China rose 3.5% as steelmakers in Hebei province shut mills after the local government limit electricity supply to reach power efficiency targets

� Appliances rose after report China sold 17.1B yuan of home appliances in August under the country�s rural appliances stimulus program, +126% YoY

o China

� SHCOMP +0.08%; SZCOMP +0.69%

� SHCOMP rose led by steelmakers after report steelmakers in Hebei province shut mills after the local government limit electricity supply to reach power efficiency targets. Turnover on the SHCOMP rose to 157.70 B yuan from 144.06B yuan yesterday

� Stocks were mixed. Tech, materials, industrials, consumer and telecom rose while financials, oil & gas, utilities and health care fell

� Iron & steel +1.51%. The benchmark hot-rolled coil prices in China rose 3.5% as steelmakers in Hebei province shut mills after the local government limit electricity supply to reach power efficiency targets

� Autos +1.49%. Talks that the 12th 5-year green auto reform will soon be announced. It aims to promote green car parts, including battery business R&D and increase electric charging stations

� Banks -0.91%. CBRC is drafting a plan to require banks to maintain reserves of 2.5% of total loans, mainland media reported. CBRC will discuss the plan with the nation's bank before possibly implementing by the end of year. The regulator currently doesn�t require banks to keep a ratio of their total loans as reserves. Instead, it requires them to maintain reserves of at least 150% of NPL. The nation�s lenders had an average coverage ratio of 186% at the end of June

� Insurers -0.88% after recent rally

Asia Monday

o Japan

� NKY +2.05%, TPX +1.82%

� NKY rose after fewer-than-expected US job losses in August bolstered optimism that the US economy would not fall back to recession. The market was also supported by a flurry of buying orders for September contract Nikkei futures. Turnover on the TPX fell to 1.01 trillion yen from 1.14 trillion yen last Friday

� Stocks rose across most sectors led by industrials, materials, financials, tech, consumer and health care

� Exporters rose: autos +1.50%, CE +1.97%, precision +2.47%, tech +1.95%, glass +2.47%.

� Traders +3.03% after metal prices rose

� Best performing sectors on the TPX: insurers +4.25%, rubber products +3.32%, machinery +3.30%, shippers +3.18%, traders +3.03%; underperforming sectors: mining +0.32%, land transport +0.45%, food +0.63%

o Hong Kong

� HSI +1.83%; HSCEI +1.64%

� Stocks rose after US job data tempered the bearish sentiment about global economic recover, spurring a relief rally. Turnover on the HSI rose to HK $30.89B from HK$23.93B last Friday

� Insurers rose after the China Insurance Regulatory Commission approved insurers to hold stakes and invest in property assets of privately-held companies to reduce investment risks

� Autos extended gains despite NDRC saying the government must take measures to avoid carmakers� overcapacity which may �far exceed� demand by the end of 2015

� Steel names rose after Shenyin & Wanguo Securities said steelmakers may improve their profitability:

o China

� SHCOMP +1.54%; SZCOMP +0.01%

� SHCOMP rose with large cap steel names outperforming after media reported some steel mills were ordered to shut down, a move seen to be benefiting the largest players. Small cap names slumped on concern the expiration of restrictions on the sale of shares will lead to a jump in supply. Turnover on the SHCOMP rose to144.06B yuan from 140.38B yuan last Friday

� Stocks rose across most sectors led by materials, financials, oil & gas, telecom and utilities. Tech and health care fell

� Autos -1.36% after NDRC said the government must take measures to avoid carmakers� overcapacity which may �far exceed� demand by the end of 2015

� Insurers +3.39% after the China Insurance Regulatory Commission approved insurers to hold stakes and invest in property assets of privately-held companies to reduce investment risks

� Iron & steel +5.36% after report some steel mills were ordered to shut down. Market expect reduced capacity will benefit larger players as prices rebound

INVESTMENT BANKING

M&A

o Stock Market Isn�t Impressed With M&A Boom- WSJ

o On the deal front, the pace of global M&A logged the strongest August since data provider Dealogic began keeping records in the early 1990s. Typically a time of long banker holidays, there was $275 billion of deals announced in August. That is up from the $238 billion of July and the $181 billion in August 2009.

o Compare that with the dismal performance in the stock market, where the Dow Jones Industrial Average fell 4.31% to 10,006.42. It was the first �down� August in five years, only the second in eight years and the worst since 2001, when the DJIA fell 5.45%

o http://blogs.wsj.com/deals/2010/09/03/stock-market-isnt-impressed-with-ma-boom/

o APD Air Products Increases All-Cash Offer for Airgas to $65.50 Per Share- RTT news

o Will Withdraw Offer If Airgas Shareholders Do Not Elect Air Products Nominees and Approve By-Law Proposals on September 15

o Airgas said on 8/27 that the� $63.50/shr Offer By Air Products was Grossly Inadequate:�� http://www.prnewswire.com/news-releases/air-products-increases-all-cash-offer-for-airgas-to-6550-per-share-102299304.html

o BA-Iberia has 12 on takeover target list- FT

o Willie Walsh, British Airways�s chief, and top Iberia executives have drawn up a list of 12 candidates to buy or merge with once their own tie-up is finalised in a plan that would create the world�s largest airline and shake-up the aviation world

o The 12 targets, pared back from an initial list of 40, includes budget airlines as well as larger full-service carriers in several countries, including fast-growing emerging economies such as Brazil, India and China

o analysts speculated that he could be interested in carriers such as Qantas, Cathay Pacific, American, LAN and South African.

o http://www.ft.com/cms/s/0/18438d86-b80b-11df-86d7-00144feabdc0.html?ftcamp=rss

o British Airways still keen on Qantas merger- Reuters

o "We have done the work in our discussions with them (Qantas) two years ago and we know there is a strong case there. It is definitely something that would be interesting in the future if Qantas were like-minded,"

o http://www.reuters.com/article/idUSTRE68618B20100907

o Andean Resources jumps 10 pct on bidding war talk- Reuters

o Shares in Andean Resources (AND.AX) (AND.TO), the target of a C$3.6 billion ($3.5 billion) takeover, jumped a tenth in Sydney trading on Monday as talk of bigger gold resources at the Argentina-focused miner raised hopes of higher bid

o Eldorado Gold Corp (ELD.TO), which saw its C$3.4 billion all-share offer trumped by an agreed deal from Goldcorp (G.TO) on Friday, could attempt a higher bid, analysts said

o http://www.reuters.com/article/idUSSGE68508520100906

o Andean CEO says Goldcorp still top bid on the table- Reuters

o Hubert said Andean would evaluate any new offers that might surface to trump Goldcorp's offer, but to date that had not occured.

o http://www.reuters.com/article/idUSSGE68600K20100907

o CML CVLT DELL ISLN: Deals Offer DELL Multiple Paths To Goal- WSJ

o Dell may have lost out to Hewlett-Packard last week in its bid to acquire storage maker 3PAR Inc., but the company has other options as it looks to expand beyond its core personal-computer business

o Dell still has plenty of other companies it could acquire. While 3PAR's product is considered the top of the line in the storage field, companies such as� Compellent, Isilon or Comm Vault Systems make technology that could help round out Dell's storage portfolio, analysts said.

o http://online.wsj.com/article/SB10001424052748704392104575475973060404034.html

o SNY Sanofi Prepared To Raise GENZ Genzyme Bid If Genzyme Talks- DJ

o Sanofi-Aventis SA (SNY), the French drugs company, would be prepared to moderately raise its $69 per share offer for Genzyme Corp. (GENZ) in the context of a negotiated deal

o The person played down recent reports that the Sanofi's board is split as to whether to pursue Genzyme after its initial offer, which values Genzyme at $18.5 billion, was rejected. The board has agreed that the company's offer could in principle be raised, but would like a signal from Genzyme that it was prepared to negotiate,

o Barron�s is negative on the $18.5b bid by SNY for GENZ

o Big Drug companies seem� to believe that mergers are the answer to their problems, even though the stocks of the most acquisitive companies, notably PFE Pfizer have performed poorly and command some of the lowest price/earnings multiples in the out-of-favor sector.

o The article asks the question whether the money would be better deployed in buying back Sanofi shares

o http://online.barrons.com/article/follow_up.html

o GSK GlaxoSmithKline Not Interested In Bidding For GENZ Genzyme- DJ

o GlaxoSmithKline PLC (GSK) isn't planning to step in as a white knight for U.S. biotech company Genzyme Corp. (GENZ), which is being pursued by France's Sanofi-Aventis SA (SNY), a senior executive at the U.K. pharmaceutical company said in an interview with daily Les Echos published Tuesday.

o BP stake talks rising again

o Is a Wide-Ranging Deal Between BP and Its Russian Partner in the Cards?- WSJ

� It wasn�t long ago that BP�s Russian joint venture was a major headache, with the two sides sparring over management of the operation. Now, TNK-BP, as the venture is known, could help cure what ails the U.K. oil giant

� Already in talks to buy BP assets in Venezuela and looking at BP�s operations in Vietnam, TNK-BP may have its eye on BP assets in a third country, Algeria

� http://blogs.wsj.com/deals/2010/09/03/is-a-wide-ranging-deal-between-bp-and-its-russian-partner-in-the-cards/

o BP revives bid to sell Alaskan assets- FT

� BP has revived the sale of its fields in Alaska after failing to dispose of them to Apache of the US earlier this year. The UK oil group is hoping to sell part of its stake in Prudhoe Bay, the giant Alaskan field

� APA Apache is still seen as a buyer by industry bankers, who also cited Occidental, a US group, as another potential suitor. It is not known whether BP would be willing to sell the entire stake, which would include the operatorship of the field

� http://www.ft.com/cms/s/0/7381a426-b923-11df-99be-00144feabdc0.html?ftcamp=rss

o Munjals to buy Honda stake in JV- India Times

o A series of off-market transactions will see Japanese auto major Honda exit its 25-year-old joint venture with the Munjals in Hero Honda with the entire deal likely to be wrapped up in the next six months

o The deal, which will be executed in two phases, will see the Munjal family form a special purpose vehicle (SPV) to buy out Honda's entire 26% stake in the venture. This would eventually be thrown open for private equity participation.

o http://timesofindia.indiatimes.com/business/india-business/Munjals-to-buy-Honda-stake-in-JV/articleshow/6488626.cms

o Stake Sale in Hyundai Sets Stage for Bidding War- WSJ

o Creditors of South Korea's Hyundai Engineering & Construction Co. plan to kick off the sale process for their controlling stake in the company on Sept. 24, in a deal that is set to pit two groups of former sister companies against each other and could fetch $3 billion for the sellers.

o http://online.wsj.com/article/SB10001424052748703713504575475021080258104.html?mod=WSJ_hpp_LEFTWhatsNewsCollection

o AIG Taiwan bidder says still no rejection notice- Reuters

o China Strategic Holdings Ltd said on Monday that it still had not received formal notice from Taiwan officials, rejecting its proposal to buy American International Group Inc's (AIG) (AIG.N) Nan Shan life insurance unit for $2.2 billion

o http://www.reuters.com/article/idUSHKV00249720100906

o AIG seen leaning towards new Taiwan unit sale- Reuters

o American International Group Inc (AIG.N) is leaning toward a new sale of its Taiwan unit, according to one of the original buyers, opening the way for a number of Taiwanese banks who have expressed interest.

o http://www.reuters.com/article/idUSTRE6860MF20100907

o Cable and Wireless Worldwide in SingTel's sights- Independent

o Cable & Wireless shares spiked last week following rumours that US rival AT&T was putting together a takeover plan. Some analysts have dismissed the speculation surrounding AT&T's interest, but SingTel has contacted bankers in Asia and Europe to discuss its own ideas for the Bracknell-based company

o A leading corporate adviser said that SingTel was in the early stages of its plans, but that a takeover attempt was a possibility.

o http://www.independent.co.uk/news/business/news/cable-and-wireless-worldwide-in-singtels-sights-2070603.html

o POT Potash deal talk continues

o Reuters discusses China's options as BHP chases POT Potash Corp

� http://www.reuters.com/article/idUSSGE68601420100907

o RIO Tinto CEO downplays chances of a bid for POT Potash- Telegraph

� Rio sold its undeveloped potash business to Brazilian miner Vale 18 months ago and Albanese has stressed that the company is a miner, not a farmer

� "Even a few weeks ago, I think people wouldn't have known the difference between potash and phosphates, both agricultural fertilisers," he says.

� http://www.telegraph.co.uk/finance/newsbysector/industry/mining/7981689/David-Cameron-could-take-some-lessons-from-us-says-Rio-Tinto-chief.html

o China wealth fund, Sinochem may bid for Potash- Marketwatch

� China's Sinochem International and Chinese sovereign wealth fund China Investment are mulling a joint offer for Canadian fertilizer firm Potash on orders from the Chinese govt

� http://www.marketwatch.com/story/china-wealth-fund-sinochem-may-bid-for-potash-2010-09-06

o BHP needs come to a deal with Canpotex to get approval, lawyers say- Telegraph

� http://www.telegraph.co.uk/finance/newsbysector/epic/blt/7980911/China-looking-to-stymie-BHPs-PotashCorp-bid.html

o China Needn�t Fear BHP Buying Potash, Exec Says- WSJ

� http://blogs.wsj.com/chinarealtime/2010/09/06/china-neednt-fear-bhp-buying-potash-exec-says/

o China fund pushes for Walkie-Talkie stake- The Independent

o The $200bn China Investment Corporation (CIC) has approached Land Securities about taking an equity stake of up to 25 per cent in the proposed "Walkie-Talkie", the 500 ft tower at 20 Fenchurch Street designed by Rafael Vinoly

o CIC has been looking to increase its direct investment in property and is thought to be keen to become a partner in the project. For this to happen, though, either Land Securities or Canary Wharf would have to give up part of their share in the building

o http://www.independent.co.uk/news/business/news/china-fund-pushes-for-walkietalkie-stake-2070609.html

o MMM 3M May Make $2B in Acquisitions in 2010- Reuters

o Reuters reported 3M CEO George Buckley said in an interview that the company's projections for spending $1 billion on acquisitions in 2010 could double by the time the year is out, depending on 3M�s success in closing deals.

o Health care, home and office products, and security are target areas for 3M acquisitions

o Synthes trading higher on talk of that JNJ Johnson & Johnson may be interested- SA

o India's Reliance not finished with U.S. shale buys- Reuters

o Indian billionaire Mukesh Ambani's Reliance Industries, which has struck three shale gas joint ventures with U.S. firms this year, may make a full buyout next as the cash-rich firm builds the knowledge it needs to run such operations

o Reliance has received about 20 to 25 pitches from investment bankers for shale assets, Reliance Chief Financial Officer Alok Agarwal said recently

o http://www.reuters.com/article/idUSSGE68508Q20100906

o HRL: MegaMex Foods To Buy Don Miguel Foods Corp. From Private Equity Fund

o MegaMex Foods LLC, a joint venture between Hormel Foods Corporation (NYSE: HRL) and Herdez Del Fuerte

o Reliance $9bn tower assets deal collapses- FT

o A landmark deal designed to help Reliance Communications, India�s second-largest mobile operator, reduce debt and make it more attractive to suitors has collapsed amid speculation about a dispute over price.

o The transaction, which would have been the biggest domestic merger or acquisition this year, was expected to help spur consolidation in India�s telecoms industry

o http://www.ft.com/cms/s/0/471be374-b9d7-11df-8804-00144feabdc0,s01=1.html

o U.S. Justice dept probes GOOG Google's ITA Software deal- WSJ

o The U.S. Justice department is looking into Google takeover of airline ticketing software firm ITA Software Inc, to determine whether the deal would exert too much influence on the online travel industry

o http://www.reuters.com/article/idUSSGE68604D20100907

o http://online.wsj.com/article/SB10001424052748704392104575476013389304440.html

o Philips sells NXP stake to underfunded UK pension- Reuters

o Dutch electronics group Philips said it will use its stake in chipmaker NXP Semiconductors NV to help address the deficit in its British pension fund, booking a gain in the process.

o http://www.reuters.com/article/idUSLDE6860A020100907

o France Telecom says no plans for D.Telekom merger- reuters

o France Telecom said it had no plans to merge with German rival Deutsche Telekom, responding to union concerns over a decision by Deutsche Bank to raise its stake in the French group

o http://www.reuters.com/article/idUSTRE68614B20100907

o RDS Shell set to sell Swedish refinery- FT

o Royal Dutch Shell is in exclusive talks with Finnish fuel distributor St1 to sell the oil major�s Swedish refinery

o If agreed, it would be the second European refinery deal for Shell in under a month, after the sale of its German refinery in late August

o http://ftalphaville.ft.com/thecut/2010/09/07/335516/shell-set-to-sell-swedish-refinery/

o Private equity groups line up bids for Polkomtel- FT

o Some of the world�s biggest private equity groups are lining up �4bn ($5.2bn) leveraged buy-out bids for Polkomtel, one of Poland�s biggest mobile phone operators, in which Vodafone owns a stake of almost 25 per cent.

o Apax Partners, Blackstone, TPG and CVC Capital Partners are among the big private equity groups working on potential bids for Polkomtel, which is expected to start a sale process as early as next month.

o http://www.ft.com/cms/s/0/cdc27cd8-b907-11df-99be-00144feabdc0.html

o Rentokil Initial trading higher on speculation of a �1.40 per share break-up bid from private equity- SA

o BKC Burger King sale may stoke restaurant deals- Reuters

o Burger King $3.26b buyout by investment firm 3G Capital may be the first in a new flurry of restaurant deals, with private equity firms hungry for high cash flow and low valuations.

o The recent mergers and acquisitions interest could help California Pizza Kitchen (CPKI.O), which has announced its desire to sell, find a suitor.

o Stifel Nicolaus analyst Steve West added pizza chain Papa John's International Inc (PZZA.O), and fast-food operators Jack in the Box Inc (JACK.O) and Sonic Corp (SONC.O) to the list of potential candidates.

o http://www.reuters.com/article/idUSTRE6851L420100906

o Software AG plans to buy a �larger� software company every two to four years- Financial Times Deutschland

o Tim Waterstone poised to regain book chain as profits plunge under HMV- The Guardian

o Tim Waterstone, the founder of the books chain that bears his name, is considering a �100m-plus bid to take the chain private if the parent company, HMV, fails to turn the business around by the new year

o Well-placed City sources say Waterstone is closely monitoring developments at the bookshops, where sales and profits have plunged under HMV's ownership.

o http://www.guardian.co.uk/business/2010/sep/05/waterstone-hmv-book-chain-bid

o ITW: 3i Sells Spain's Chemicals Co Panreac To Illinois Tool Works

o Vedanta may be told to reveal more for Cairn- Economic Times

o The Securities and Exchange Board of India, or Sebi, will direct Vedanta Resources to inform the shareholders of oil explorer Cairn India about the claims of state-owned Oil and Natural Gas Corporation (ONGC) on it as well as details of the recent denial of a mining licence to its affiliated company.

o http://economictimes.indiatimes.com/news/news-by-industry/energy/oil--gas/Vedanta-may-be-told-to-reveal-more-for-Cairn/articleshow/6503043.cms

o Newcrest continues to eye M&A- Business Spectator

o Chief sees good opportunities in Asia Pacific, W. Africa.

o http://www.businessspectator.com.au/bs.nsf/Article/Newcrest-continues-to-eye-MA-pd20100905-8Z2Q9?opendocument&src=rss

o Invensys boosted by bid talk.- Telegraph

o Invensys may fall out of the FTSE 100 following this week's reshuffle but some sources reckon the company is a takeover target

o According to market sources, possible acquirers include Swiss industrial conglomerate ABB, GE or Emerson Electric. Siemens has also been tipped likely bidder as it is likely to have an interest Invensys's rail division

o Misys investors face wait for $1.2bn pay-out- FT

o Misys shareholders must wait on a ruling from US tax authorities before they can receive a $1.2bn (�780m) pay-out from the sale of the group�s stake in its healthcare division.

o The group completed the disposal of most of its stake in Allscripts-Misys, its healthcare arm, for $1.2bn six weeks ahead of schedule and has pledged to return the capital to shareholders

o http://www.ft.com/cms/s/2/fd57d876-b9cf-11df-8804-00144feabdc0.html

o Tullow takeaway still on the menu- Globe & Mail

o Tullow Oil gushed 26p to 1182p on Chinese takeaway speculation. Word is China National Offshore Oil Corporation (CNOC) is lining up a knock-out cash offer worth up to �17billion, or �20 a share, for the oil and gas explorer which has been heavily sold of late after being told to shut down all of its activities in Uganda

o http://www.dailymail.co.uk/money/article-1309582/MARKET-REPORT-GEOFF-FOSTER-Tullow-takeaway-menu.html?ito=feeds-newsxml#ixzz0ypr6juW5

o Colt Telecom rose 4.4 per cent friday to 119�p amid theories that, if AT&T were to seek to acquire a UK corporate carrier, it would be a plausible target. AT&T was said last month to be looking at Cable &Wireless Worldwide, up 4.5 per cent to 73p, though people familiar with the companies have played down that tale. FT

o http://www.ft.com/cms/s/0/c05c3f72-b725-11df-839a-00144feabdc0.html

o Campbell Soup CPB: Premier Foods led the mid-cap risers friday , surging 20.1 per cent to 21p, after a stock overhang cleared. The sharp gain also encouraged takeover and break-up speculation, with Campbell Soup Company considered the most likely among potential bidders for the debt-burdened bread maker. FT

o http://www.ft.com/cms/s/0/c05c3f72-b725-11df-839a-00144feabdc0.html

$ RAISING

o Taxpayers may face initial loss on GM IPO- Reuters

o Subsequent offerings of the government's holdings may be profitable depending on how investors trade the newly listed stock

o A decision to price the initial GM shares below the cost to taxpayers would follow the usual Wall Street practice of giving the first investors in a new stock a discount, but it could also help allay investor concern in the face of the slow recovery of the U.S. economy and flat auto sales

o http://www.reuters.com/article/idUSTRE68102G20100905

o IPO VIEW-Skype may not light up IPO market

o (Reuters) - Skype, the Internet calling company, could have trouble getting top dollar in its initial public offering thanks to Google Inc (GOOG.O).

o Many Line Up to Go Public, but Market Mood Is Iffy- Dealbook

o Some 161 companies are seeking to raise more than $56 billion through initial public offerings, according to Renaissance Capital, an I.P.O. research firm. That is the most companies in the I.P.O. pipeline since 2000 and the largest pent-up dollar amount on record

o �We haven�t seen such a large overhang of supply in some time,� said Linda R. Killian, a principal at Renaissance. �The question is whether the market can absorb it all.�

o http://dealbook.blogs.nytimes.com/2010/09/07/many-line-up-to-go-public-but-market-mood-is-iffy/

o AIG seeks HK approval to list AIA on Sept 21- Reuters

o American International Group Inc (AIG.N) plans to seek Hong Kong listing committee approval to list its Asian life insurance unit, AIA Group Ltd, on September 21, aiming to raise about $15 billion in Hong Kong,

o http://www.reuters.com/article/idUSTRE6861A820100907

o TowerBrook studies IPO of Jimmy Choo- Expansion

o Private equity funds TowerBrook Capital and Gala Capital are studying the possibility of an initial public offering for British-based shoe designer Jimmy Choo

o The IPO could value the firm at around 500 million pounds ($768 million), Expansion quoted financial sources as saying

o http://www.reuters.com/article/idUSTRE68616J20100907

o Warsaw Exchange Files Prospectus For Likely November IPO- DJ

o The Warsaw Stock Exchange on Monday took a first step toward its initial public offering of stock -- expected in November -- by filing its emission prospectus with Poland's Financial Supervision Authority

o For Investors, Pricing Is Key In China's IPO Flood- WSJ

o Propelled in part by the backing of powerful Beijing bureaucrats, green-themed Chinese companies are poised to reap billions of dollars from public offerings to new investors in coming months

o But investors may want to ask at what price are they willing to jump on the trend.

o http://online.wsj.com/article/SB30001424052748704392104575475380490209678.html

o Univar deal adds to Western market new listing woes- Telegraph

o The IPO markets woes continue with Univar cancelling plans for a stock market listing after its private-equity owner opted to sell a 42.5pc stake in the chemicals supplier to a rival buyout firm.

o http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/privateequity/7980603/Univar-deal-adds-to-Western-market-new-listing-woes.html

o FXCM FXCM Inc files for $200M IPO - BBG

o CTP CTPartners Executive Search files $34.5M IPO through William Blair and CL King- SA

PRICINGS

o Initial Offerings

o No IPOs currently on the agenda for next week

o Secondary Offerings

o No secondaries currently on the agenda for next week

NEWS��

o Dubai Holding unit delays loan repayment again- reuters

o DHCOG was due to repay the $555 million loan on Tuesday, having already extended it for two months in July. Market participants had expected the move.

o http://www.reuters.com/article/idUSTRE68614G20100907

o After Labor Day, The Debt Deluge � WSJ

o Corporate bond markets are preparing for a hectic week and month amid ripe conditions for companies to issue debt

o Rock-bottom interest rates, investors' appetite for yield, resurgent merger-and-acquisition activity and the typical end-of-summer jump in debt issuance portend a particularly busy September

o Senior Lenders Moving To Foreclose On NYC's Stuyvesant Town- WSJ

o The banks, including BAC Bank of America Corp. and USB U.S. Bancorp, have set public auction for the 56-building complex for Oct. 4

o APP American Apparel in talks with restructuring firm- Reuters

o Hipster brand American Apparel is in talks to bring in an outside restructuring firm as the manufacturer and retailer struggles to fix its flagging operations

o Lender BoA pressed APP to hire the firm, a specialist in corporate turnarounds, according to people familiar with the matter. The firm is not being brought in to arrange a bankruptcy, sources said, but to help improve operations and its financial condition

o http://finance.yahoo.com/news/Exclusive-American-Apparel-in-rb-4269335943.html?x=0&.v=2

o WSJ: Equity Bankers Prepare For A Crunch Month

o Equity capital markets bankers expect the next three weeks to prove crucial in determining levels of global supply for the rest of the year, amid concerns that heightened volatility or any form of macro-economic shock this month could keep issuance light until late this year.

o BC Partners Offers Sweeteners In EUR6B Raising - DJ

o BC Partners has become the first European firm to begin fund-raising for a mega-buyout fund since the collapse of Lehman Brothers, although it has offered improved terms to investors in an attempt to win over a skeptical audience ahead of a spree of EUR50 billion European funds set to come back to market.

o Financials: BBX BankAtlantic files $125M secondary

o Transports: DRYS DryShips files mixed shelf of indeterminate amount

o RADS Radiant Systems says it and certain shareholders plan to offer 4.69M shares through Jefferies and SunTrust Robinson Humphrey

TODAY�S EVENTS

o CONFERENCES

o ASPERMONT Investor Seminar Gold Day - Sep 07, 2010

o Bank of America Merrill Lynch JAPAN CONFERENCE - Sep 05, 2010 - Sep 09, 2010

o Barclays Back-To-School Consumer Conference - Sep 06, 2010 - Sep 08, 2010

7:30AM: TAP

9:45AM: DLM, PEP

10:30AM: PM

11:15AM: AV , HRL

12:45PM: CL

1:30PM: COT, MJN

2:15PM: IFF, RAI

3PM: CPB, JAH

3:45PM: MKC

o Campden Publishing Limited Family Alternative Investment Conference - Sep 06, 2010 - Sep 07, 2010

o Capital Link, Inc Global Derivatives Forum - Sep 07, 2010

o Citi Global Technology Conference

8:35AM: CVG, XRX

9:10AM: BHE, INFN, MXIM

9:45AM: ADI, CREE

10:20AM: LRCX

10:55AM: ARW, FORM, IDTI

11:30AM: BRKS, CA, IM, VPRT

12PM: MSFT

1PM: EFII, ENTG

1:35PM: MOT, RMBS, VECO

2:10PM: AMD , AMKR , FNSR , SNX

2:45PM: ATMI , FIS , TLAB

3:20PM: PCLN , PLXS , SMTC , WFR

3:55PM: CSR.L

4:30PM: EMC NTS: ASML , ERIC

o Citi India Mini Conference - Sep 06, 2010 - Sep 07, 2010

o Citi Taiwan Mini Conference - Sep 07, 2010 - Sep 08, 2010

NTS: 1319.TW , 1402.TW , 2360.TW , 2885.TW , 2903.TW , 3059.TW , 3311.TW , 6008.TWO , 6147.TWO , JUTGF.PK

o Davy Equities Consumer Conference - Sep 06, 2010 - Sep 08, 2010

o Deutsche B�rse Group Open Day � IT Conference - Sep 07, 2010

o EUROCONSULT SA World Satellite Business Week: World Summit for Satellite Financing - Sep 06, 2010 - Sep 10, 2010

o Euromoney Conferences: The Sterling Conference "Now the Hard Work Begins" - Sep 07, 2010

o Euromoney Seminars European Hotel Finance & Investment Summit - Sep 07, 2010 - Sep 08, 2010

o Gartner Future of IT Conference - Sep 07, 2010

o GBC AG Frankfurt Investment Forum - Sep 07, 2010

o HSBC Securities Investor Tour

NTS: DAZ.F

o Keefe, Bruyette & Woods, Inc. Insurance Conference - Sep 07, 2010 - Sep 08, 2010

1:05PM: PFG, RDN

1:50PM: AHL, ALTE, EIHI, UNM

2:35PM: MTG, PRA, WRB

3:30PM: NAVG, PRI, TWGP

4:15PM: LNC, SYA

5PM: AGII

o Macquarie Securities India Commodities Conference - Sep 07, 2010 - Sep 10, 2010

o Messe Berlin IFA Conference - Sep 03, 2010 - Sep 08, 2010

o SEMICON Taiwan

1:40PM: MXICF.PK

2:10PM: TSM

o Thomson Reuters Insight Alternative Financing for Low Carbon Growth � Half Day Course - Sep 07, 2010

o Vertical Events' RIU Good Oil Conference - Sep 07, 2010 - Sep 08, 2010

o Wells Fargo Annual Baltimore Invitational Conference - Sep 07, 2010 - Sep 08, 2010

o ECONOMICS

o 1000 Employment Trends Index

o 1700 ABC News Consumer Comfort Index

o EARNINGS

� Autos

1. WATG

� Consumer/Retail/Education

1. PVH, CASY

� Energy

1. MIND

� Healthcare

1. ROSG, AHII

� Industrials

1. NCS, FLOW

� Media

1. ALOY

� Utlilities

1. PIKE

� Tech/Telecom

1. CMRO, DITC, LTON

***All eco data from Bloomberg and DJ

Prepared by staff of Cantor Fitzgerald & Co. ("Cantor") and is for information purposes only. It is not intended to form the basis of any investment decision, should not be considered a recommendation by Cantor or any other person and does not constitute an offer or solicitation with respect to the purchase or sale of any investment nor is it a confirmation of terms. Any calculations and valuations presented herein are intended as a basis for discussion. Sources of information are believed to be reliable but Cantor makes no representation and gives no warranty that the information contained herein is accurate or complete. Any opinions or estimates given may change. Cantor undertakes no obligation to provide recipients with any additional information or any update to or correction of the information contained herein. This material is intended solely for institutional investors and investors who Cantor reasonably believes are institutional investors. Cantor, its officers, employees, affiliates and partners shall not be liable to any person in any way whatsoever for any losses, costs or claims howsoever arising from any inaccuracies or omissions in the information contained herein or any reliance on that information. Cantor may have positions in financial instruments mentioned, may have acquired such positions at prices no longer available, and may have interests different or adverse to your interests. No liability is accepted by Cantor for any loss that may arise from any use of the information contained herein or derived here from. This product may not be reproduced or redistributed outside the recipient's organization. Sources: Cantor Fitzgerald & Co., Reuters, Bloomberg, CNBC, Dow Jones, Marketwatch, Trade-Alert, and the Wall Street Journal.

o Price Correction Following Encouraging Economic Data Is Set to Boost This Week's Sale of $67 Billion in Bonds - WSJ

o New Delhi set to fuel cotton price rise from Financial Times

� The world�s second-largest exporter has unexpectedly extended export restrictions on the fibre, reversing promises made three weeks ago

o Stock Market Isn�t Impressed With M&A Boom from WSJ.com

� A funny thing happened last month: The stock market and the M&A market decoupled.

o Many Line Up to Go Public, but Market Mood Is Iffy from NYT

o Mariner Buys Stake in Loan Portfolio from FDIC from American Banker

o Obama speaks multiple times this week:� incl Wed and Friday

o What Obama May Propose This Week on Jobs, Economy from CNBC

o President Barack Obama will hold a rare news conference at the White House on Sept. 10.

o IATA SAYS INDICATORS FOR AIR FREIGHT POINTING TO SLOWER GROWTH

� IATA: AIR FREIGHT INDICATORS NOT POINTING TO `DOUBLE-DIP'

� *IATA: AIR FREIGHT CAPACITY NOW COMING BACK INTO MARKET - BBG

o Libor Falls as Banks Sit on Cash from WSJ.com

o Jobs:��� �Economists Grapple Over Job Creation from WSJ.com

o Jobs:���� Once a Dynamo, the Tech Sector Is Slow to Hire from DealBook

o EU banks:�� Sole European Bank Needs $60 Million USD And Comes Crawling To ECB, Confirming USD-Libor Funding Process Impaired � link from zero hedge

� Stress Tests Missed Debt at EU Lenders from WSJ.com

o Spanish lenders hasten back to bonds - FT

� Banks that were squeezed out of wholesale finance markets have returned in force with bond issues and raised more than $4bn in the first five days of September alone

� http://link.ft.com/r/J0VG55/PR0Y1R/NNT7T/C5PM3P/YHVPEQ/PJ/h?a1=2010&a2=9&a3=7

� A high-ranking member of the congressional commission investigating the U.S. financial crisis downplayed recent reports of dissension.

� Speculative investors are likely to remain a force in commodities markets despite signs that the big banks are bowing out.

o miners: Severstal, the Russian steel maker controlled by billionaire Alexey Mordashov, said on Monday it swung to a second-quarter profit, but the results missed market expectations as the firm�s U.S. operations remained lossmaking.� MW

o District Polls Are Troubling Signs for Democrats �from CQ

o Banks Use Election as Payback for Reg Reform from American Banker

o Though Democrats scored a big political victory in passing regulatory reform, many are already paying for it as the financial services industry directs more of its contributions toward Republicans and moderates who tried to pare back the revamp.

o Small business prods Senate from POLITICO

o NSBA president Todd McCracken echoes Obama's call for action on the stalled credit bill

o Hey, O, give Mike a look from NY Post

o Will Steve Forbes be the Tea Party Presidential Candidate in 2012? from zero hedge

o 81% rate U.S. economy as 'poor' - CNN poll

o The top U.S. commander in Afghanistan said the planned burning of Qurans on Sept. 11 by a Florida church could put American troops in danger. WSJ

o Whitman leads Brown in California governor's race� � Reuters link

o Iran increases nuclear stockpile � FT link

� Iran� Iran had as of mid-August produced at least 22 kilograms of higher-enriched uranium, which Iran says is for a research reactor, according to a restricted United Nations report seen by AFP Monday.

o Oil Tycoon Says PWC Caved to Kremlin �- WSJ link

o Russia's Putin hints at Kremlin return in 2012 �� Reuters link

o Fund Stories

o Hedge funds feel pressure with August results

� While August was, on average, a positive month for the industry, several big-name managers struggled to gain traction, with many more under pressure to ramp up the level of risk in their portfolios to boost year-end numbers, according to brokers.

� The average hedge fund returned 0.17 per cent in August, according to preliminary month-end numbers from Hedge Fund Research.

� The average fund was up 1.29 per cent this year until the end of July

� http://www.ft.com/cms/s/0/3f174224-b9df-11df-8804-00144feabdc0.html?ftcamp=rss

o Eddy Lampert Everything changed in August, however. Mr. Lampert took losses greater than the market's 4.5% tumble. According to investors, ESL now is flat on the year.

o Central Huijin Investment, the domestic arm of China's sovereign-wealth fund, will sell as much as $8.09 billion in new bonds in mid-September. WSJ

o Insurers fell in China after gains yesterday when the government said they could invest in private equity and real estate.

o China may relax capital rules for QDII funds: report

o BP has revived the sale of its Alaskan assets after failing to offload them to U.S. oil and gas company Apache in July, the Financial Times reported on Monday.

o Is a Wide-Ranging Deal Between BP and Its Russian Partner in the Cards? from WSJ.com

o US rig owner Transocean accused of compromising safety in North Sea from guardian.co.uk

o Rosneft appoints technocrat president from Financial Times

� US group targets at least two deals this year even after making two acquisitions in the security services business in the past month

� Moscow on Monday gave another mixed signal about the duration of a grain export ban set initially from August 15 to December 31, but European Union grain markets continued to rise, apparently ignoring the latest twist.

� The U.S. government is likely to take a loss on General Motors Co in the first offering of the automaker's stock, six people familiar with preparations for the landmark IPO said.

� Its image still bruised by driver complaints about unintended acceleration, Toyota Division has decided to revamp its marketing message and shift the focus to safety in a big way, top executives said last week. Toyota Motor Sales U.S.A

� Don Lee thinks he can make money with Fiat and Alfa Romeo at a vacant showroom next to his dealership.

o Kia says vice chairman resigned because of recalls from Automotive News

� Kia Motors Corp. Vice Chairman Jeong Sung Eun resigned on Sept. 3 to take responsibility for a recent recall of four models, a company spokesman said.

o IATA SAYS INDICATORS FOR AIR FREIGHT POINTING TO SLOWER GROWTH

� IATA: AIR FREIGHT INDICATORS NOT POINTING TO `DOUBLE-DIP'

� *IATA: AIR FREIGHT CAPACITY NOW COMING BACK INTO MARKET - BBG

� Severstal, the Russian steel maker controlled by billionaire Alexey Mordashov, said on Monday it swung to a second-quarter profit, but the results missed market expectations as the firm�s U.S. operations remained lossmaking.

o Rosetta Stone's Management and Marketing Woes from BusinessWeek

o APP:� American Apparel in talks with restructuring firm

o http://www.reuters.com/article/idUSTRE68308T20100904?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+reuters%2FbusinessNews+%28News+%2F+US+%2F+Business+News%29

o PG P&G Chief Executive McDonald on Lookout for �Global Brands� � BBG

o ��While McDonald, 57, declined to specify any brands, he said the world�s largest consumer-products company has the ability to pounce if anything comes along. P&G generated $16.1 billion in cash from operations last year

o TSN Tyson Foods moves away from machinery to increase profit � WSJ

o New Delhi set to fuel cotton price rise from Financial Times

� The world�s second-largest exporter has unexpectedly extended export restrictions on the fibre, reversing promises made three weeks ago

o Private equity funds TowerBrook Capital and Gala Capital are studying the possibility of an intital public offering for British-based shoe designer Jimmy Choo, Spanish newspaper Expansion reported on Tuesday.

o Speculative investors are likely to remain a force in commodities markets despite signs that the big banks are bowing out.

o Finance companies that lend to consumers and smaller businesses in the US are finding it easier to fund themselves in the wholesale credit markets, marking a comeback from their troubles during the financial crisis

o Citigroup is at the centre of a dispute among analysts and accounting experts over whether it should set aside funds to cover $50bn of deferred taxes, a move that would reduce its capital buffer and weaken its balance sheet

o EU banks:�� Sole European Bank Needs $60 Million USD And Comes Crawling To ECB, Confirming USD-Libor Funding Process Impaired � link from zero hedge

o Should Barclays be run by an investment banker? from� guardian.co.uk

o Derivatives Still a Fed Worry from American Banker

o Banks Use Election as Payback for Reg Reform from American Banker

o Though Democrats scored a big political victory in passing regulatory reform, many are already paying for it as the financial services industry directs more of its contributions toward Republicans and moderates who tried to pare back the revamp.

o Jobs:�� Economists Grapple Over Job Creation from WSJ.com

o Jobs:�� Once a Dynamo, the Tech Sector Is Slow to Hire from DealBook