EFTA02105754.pdf

From: Ike Groff Sent: Wed 6/4/2014 9:51:42 AM Subject: Early Tour 6.4.14 Good Morning ... European Markets off 10-60 bps (Spain -0.81%, Italy -1.0%) ... NKY +0.22%, SHCOMP -0.66%, HSI -0.60%, KOSPI (closed), TWSE -0.04%, ASX -0.64% EUR 1.3615 (-0.09%) JPY 102.61 (-0.10%) RUB -0.52% AUD +0.08% NZD -0.24% CAD - 0.26% US 10yr 2.5769% Futures: Dow -27, Nasdaq -9, S&P -4 DXY $80.61 (+5c) Crude $103.39 (+73c) Gold $1245.80 (+$1.30) Copper -1.42% Silver +0.20% Asian shares were mostly lower following overnight moves in the US. Japan outperformed as it was helped by the yen trading in the upper 102 range. The Nikkei held its ground above 15,000 and the Topix has finished higher for a tenth day in a row, which is the first time since 2009 and only the fourth time in the last 15 years. China underperformed on growth concerns plus chatter that a mainland developer is under investigation by Guangxi government for illegally raising capital from banks, which it may default on. Macau names continue to weigh in Hong Kong following yesterday's disappointing May GGR release. Australian GDP growth beat estimates of +0.9%, with IQ GDP coming in at +1.1% q/q. South Korea was closed for Election Day. European markets generally lower 10-60 bps (Spain -0.81%, Italy -1.0%) and volumes remain light ahead of the ECB tomorrow. The market is pricing in a 15ps interest rate cut (0.25% to 0.10%) as well as a 10bps cut in the deposit rate to negative territory (0.00% to -0.10%) but focus will be on any additional measures that Draghi might announce. Cash volumes remain light and flows continue to be centered around some squaring of positions and hedging in the event the ECB underwhelms tomorrow and we get a pullback. 2 big M&A deals overnight with Dai-Chi Life buying Protective Life for $5.7B and duty-free retailer Dufry buying Nuance for $1.7 billion. SPA's -3 handles = 1918.20 last. "'Mortgage Apps Cg 7am, ADP Employment © 8:15am, Trade Balance & Nonfarm Productivity @ 8:30am*** ***Markit US services PMI @ 9:45am. Bank of Canada Rate Decision & ISM Non-Manufacturing @ 10am, Beige Book ea? 2pmen • Dai-ichi Life buys Protective Life (PL) for $5.7B ($70.00/share cash = 19.2% premium) • Mattress Firm profit fell 36% on higher costs but raised FY2014 sales guidance (traded up overnight) EFTA_R1_00720730 EFTA02105754  • TIBCO Software guides down cites lower than expected sales of spotfire (trading -14%) • Ascena Retail comps missed & sees 'challenging' O4 sales trends (profit edged up) (trading -5%) • Bullish sentiment increases to 62.2% from 58.3% in the latest US Investors Intelligence poll • Dufry agrees to buy travel retailer Nuance Group for CHF 1.55B (DUFN VX trading +7.8%) • Tesco better than feared after Kantar yday, cautious on outlook, price competition (trading -1.2%) • Volkswagen places E2B in preferred shares to fund Scania deal, priced © E191/share (trading - 1.7%) • Repsol: Pemex selling its 7.8% stake in accelerated book build thru Citi & DB (trading -3.7%) • Evonik: RAG offering €400 million in bonds convertible into Evonik shares (trading -3.8%) • Coloplast releases new medium term guidance (3-5yr) ahead of investor day today (trading +1.9%) • Eurozone May Services PMI 53.2 vs est 53.5 (Germany 56.0 vs 56.4. France 49.1 vs 49.2) • UK May services growth keeps economy booming as hiring strengthens (Services PMI 58.6) Leading European Sectors: Healthcare +0.30%, Basic Res +0.27%, Trav/Les +0.23% Lagging European Sectors: Autos/Parts -1.42%, Oil & Gas -1.19%, Utilities -0.97% IT cfo to leave — RENT ebidta lower — MIND numbers mixed OPHR LN gas discovery — VOE AV numbers light — MATAS DC touch light HEXAB SS delays targets - MONI LN new co-CEO — VOLVB SS strong ACT data Secondaries (announced/priced): LG, ALSN, TSLX (convert), PODD (convert), VOW3 GY, REP SM, SON PL (convert), EVK GY (convert), NRX FP (rights) IPO's (filed/priced): CareDx (CDNA) files $50M IPO through Piper, Leerink, Raymond James and Mizuho, Markit Group Limited $1.18 IPO (45.7M shares, price range $23-$25, pricing June 18 after the close) US Key Research: 0- Imperial initiates AVG (in-line), JMP downgrades TIBX, KBC upgrades RNA, GS cuts SSL EFTA_R1_00720731 EFTA02105755 • GS upgrades DB & initiates EXAS (buy), Key initiates AIRM (buy), MS upgrades NWL • Macquarie initiates ATW/HP/SLB (neut) and HAUPKD (op), Jefferies upgrades UA • Stifel upgrades AZO (buy) & downgrades TIBX, BMO upgrades CP, Mizuho cuts TIBX Europe Key Research: Investec downgrades IMI LN, Exane downgrades SHBA SS, Kepler downgrades EN FP & upgrades TNTE NA • Jefferies initiates SKG ID (buy) & SMDS LN (hold), CS upgrades AKE FP & downgrades ECM LN • Evli downgrades NDA SS & SWEDA SS and upgrades SHBA SS & SEBA SS, GS upgrades DBK GY & CSGN VX • MS downgrades SAB LN, Equinet downgrades KU2 GY, MS upgrades REP SM, CS upgrades TFG SJ • DNB initiates DORIAN NO (buy), Evli upgrades AMAS FH & downgrades AKTAV FH, Exane upgrades SPM IM • GS downgrades SOL SJ & PFV GR, HSBC downgrades BARC LN & upgrades FUM1V FH JPM upgrades PLND LN, LBBW upgrades FNTN GR, Nomura upgrades HAV FP & downgrades PUB FP ▪ Nordea resumes BWO NO (strong buy), Raja upgrades ENEL IM, Swedbank upgrades TWWB SS Pareto initiates VEI NO (buy), SocGen upgrades PIG FP & downgrades NVTK RU Reporting Pre-Open: BF.B, CYBX, HOV, IXYS, LDOS Reporting Post-Close: BV, FIVE, GEF, KTWO, RLD, VISN, VRNT Economic Data: MBA Mortgage Applications © 7am, ADP Employment Change @ 8:15am, Trade Balance / Nonfarm Productivity & Unit Labor Costs @ 8:30am, Markit US PMI @ 9:45am, ISM Non- Manufacturing Composite @ 10am, Beige Book @ 2pm DOE crude oil inventories @ 10:30am EFTA_R1_00720732 EFTA02105756 Conferences: WWDC (SF), RBC Energy (NYC), Jefferies Healthcare (NYC) Conferences: Bofa Energy & Power Leveraged Finance (NYC), Both Tech (SF), Stephens Spring Conference (NYC) Conferences: Brean Global Consumer & Gaming (NYC), GS dotCommerce Day (NYC), KBW Asset Management (NYC) Conferences: CS Engineering & Construction (NYC), DB Industrials and Basic Materials (Chicago), Janney Tech Bus Tour (Silicon Valley) Analyst/Investor Days: CIE, CMP, PRU, IL, SCG, LTM, GSVC Non-Deal Roadshows: ABTL, ACCO, AFSI, AJG, ALLT, APEI, AVT, BOH, BONE, CAS, CATM, CIMT, CMCO, CNVR, DNB, EXPR, FUEL, GIG, IMMR, IMUC, INVN, INXN, ISSI, IT, ITMN, JKHY, LEG, MPWR, MXIM, NBL, NCMI, NUVA, OFG, ONVO, PFMT, QGEN, SAAS, SBCF, SNI, SONS, TCBI, THS, TYPE, USG, VIA, VIAB, XRX Shareholder Meetings: FENG, GTAT, PLCE, AAL, CTRN, DVN, NCIT, POZN, SAIC, FCN, ROIAK, AWAY, CKP, CST, FDUS, NYCB, VSI, PWE, AAOI, MTDR, P, WNR, WBR, EGY, LGND, QCCO, RP, Z, GSVC, AMBA, BMRN, CAB, LF, IM, TAP, PMT, EQIX, HTWR, LVS, QLYS, TECD, SPRT, CSOD, RKUS, SCTY, GEVA, MCOX Equity/Mixed Shelfs: MXWL ($125M), BXP Other Newspaper Articles & Stories WSJ positive: Cisco Systems (CSCO) WSJ • Virtual Biotechs: No Lab Space, Few Workers WSJ • Brothers Team to Shake Up M&A World WSJ • ECB Anxious Over U.S. Fines on Banks WSJ • Taliban Video Shows POW's Release WSJ • Europe Leaders to Pressure Putin on Ukraine at D-Day Events WSJ EFTA_R1_00720733 EFTA02105757 • Tiananmen Square Anniversary: Hong Kong Vigil Exposes Political Fractures WSJ • Obama's European Solidarity WSJ • Aiming Financial Weapons From Treasury War Room NYT • 6 Lost Lives Cloud Return of American Prisoner of War NYT • G.M. Officials Say They Expect Mary Barra Will Be Cleared of Wrongdoing NYT • Eurozone deflation fears add to pressure on Draghi FT • Paris trade talks threat over US BNP fine FT • UK needs more vocational training not degrees FT • Obama faces growing backlash over US soldier release FT • Newark hints at general election Culloden for Ukippers FT • Make your mind up on Europe, Mr Cameron FT • Taubman hires dealmakers for new boutique FT • Bildt warns of British 'Balkanisation' FT • Trading to influence gold price fix was 'routine FT • Guest post: About that UK property bubble... FT • Blow the whistle on Fifa, please FT • Schools must enthuse the coders of tomorrow FT • Legitimate business unlocks growth FT • Why banking crises happen in America but not in Canada FT • Iron ore: game of thrones Lex • Lend Lease: option value Lex • UK electricity: jolt needed Lex • Valeant / Allergan: Ackman taking sides Lex • Merkel turns to Lagarde for next leader of Europe The Times • The odd couple who may just save the union The Times • We need more jobs to prevent recovery going to waste, executives warn coalition The Times • German billionaires' club rides out the crisis in style The Times EFTA_R1_00720734 EFTA02105758 • We ignored budget for the savers — and helped to solve deficit dilemma The Times • Why the chagrin? Brussels is perfectly justified in criticising the UK economy Telegraph • Europe remains a jobless swamp, despite the Spanish miracle Telegraph • Europe at risk of blackouts, warns IEA Telegraph • The Chinese technology companies poised to dominate the world Guardian • Takeovers between British companies fall to lowest level on record Guardian • We should be raising a glass to Vince Cable's pub industry plans Independent • A Silicon Valley tycoon who made a paper (less) fortune teaches us how Britain is miles behind Independent • France goes into battle with US over BNP Paribas fine Independent • It is high time voters were given the right to recall their MPs CitvAM • UK mega pensions aren't a bad idea — if government can resist destroying them CityAM Key Events This Week Thursday: Denmark closed, Retail May same store sales, ECB & BOE Interest rate decision, Challenger Job Cuts, Eurozone retail sales April, CS Euro Gaming Conference (London), Eamings (JOY, SJM, MTN) Friday: Sweden closed, May Employment Report, US consumer credit April Key Events on the Horizon June 12 — World Cup kicks off in Brazil June 18 - FOMC rate/taper announcement June 13 — Preliminary additions/deletions to Russell Indices published after 6pm EST EFTA_R1_00720735 EFTA02105759  June 20 — Updates to the list of additions/deletions to Russell Indices, FTSE quarterly rebalance on close June 27 — Russell Rebalance on the close of trading July 13 — World Cup Final September 18 — Scotland's referendum on Independence October — Brazil elections Ike Groff 1680 Washington Blvd I Stamford, CT 06901 I lit (203) 302-7300 [email protected] This e-mail and any files transmitted with it are confidential and intended only for the person or entity to which it is addressed. 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