EFTA02136101

From: Sent: Fri 6/7/2013 9:49:47 AM Subject: Early Tour 6.7.13 Good Morning ... European Markets mixed... ASX -0.91%, NKY -0.21%, KOSPI -1.80%, TWSE -0.01%, SHCOMP -1.33%, HSI -1.21% EUR 1.3236 (-0.08%) JPY 96.11 (+0.86%) EUR/JPY 127.21 (-0.97%) AUD 0.9497 (-1.05%) NZD 0.7961 (-0.80%) Spain 10yr 4.64% Italy 10yr 4.29% Portugal 6.18% Germany 10yr 1.496% Japan 10yr 0.86°4 US 10yr 2.06% Futures: Dow -20, Nasdaq -3, S&P -2 DXY $81.49 (-5c) Crude $95.04 (+28c) Gold $1409.50 (- $6.30) Copper +0.17% Silver -0.58% Despite the better handoff from the US, Asian markets closed out the week lower in a volatile session. It was another wild ride in Japan after the big move in the JPY overnight. The Nikkei opened lower and was weak throughout the AM session, touching an infra-day low of 12,548 early in the afternoon (futures dipped below 12,300) before rallying over 4% on news that the gov't was going to announce a new allocation plan for pension funds after the close (reduce bonds, increase equity). The optimism was short- lived though as rumors circulated that any changes would not take effect until the 2H of this year and possibly into next year. After the close the news hit that the changes were to be effective immediately, but the equity allocation was only raised to 12% vs expectations of 14-15% (cutting domestic bonds to 60% from 67%), which prompted futures to trade back down toward 12,600. The MOTHERS index closed down 11.5% and is now down over 38% from the highs as retail continue to sell on margin calls. Outside of Japan, Korea was hit as Samsung traded down 6.2% after JPM cut profit estimates on a weaker outlook for the Galaxy S4 — the stock had its biggest one-day drop in more than 9-months. The SHCOMP was down for the Th day in a row as the market continues to focus on rapidly rising interbank rates and chatter of defaults in the interbank market. China will be closed through next Wednesday for holidays, along with Australia which is closed on Monday and HK, Philippines and Taiwan which are all closed on Wednesday. Europe mixed and fairly quiet so far as we await the jobs Ws in the US @ 8:30am (the first of four labor reports before the September Fed meeting where some think tapering could begin — note GS baseline case is for tapering to begin in December). Consensus is for a NFP # of 163k and the optimal outcome for the market is likely a relatively inline print. SPA's -2 handles = 1621 last. •'May Employment Report © 8:30am (Payroll Ests: NFP +163k / PP +175k) & Consumer Credit 3pmns EFTA_R1_00784785 EFTA02136101 • Blackstone Group and partner Patria agreed to buy Gafisa's (GFA) Alphaville Urbanismo for —$16 • Cooper Companies Q2 income rose on double digit sales growth (raised eps forecast) (trading +1.5%) • RealD loss narrower than expected beating Q4 revenue ests on overseas expansions (trading +5%) • Wal-Mart has no plans to expand US grocery delivery program beyond a test in CA for now (Reuters) • Apple to start iPhone trade-in programs this month as sales incentive via Brightstar (Bloomberg) • Canada competition bureau lays charges vs 3 companies accused of fixing chocolate pricing (link) • Qiagen faces declining US HPV market share as US customer adds competitor products (trading - 3.8%) • Lanxess: June SBR contract prices likely to drop by €50-60/tonne (Citi cuts EU chemicals) (trading - 3.0%) • Santander: Expansion reporting company looking to IPO 20% of UK business next year (trading - 0.10%) • Gemalto to replace APERAM in the AEX from June 24th NYSE says in emailed statement (trading - 1.1%) • Partnership Assurance (Life Insurance) IPO prices at 385p, sees strong gains on first day (trading +21%) • Nokia: rumor may launch Windows-based tablet together with AT&T later this summer (DI) (trading +0.23%) • German trade data: April exports +1.9% m/m vs est +0.1%, imports +2.3% rift vs est +0.5% • Germany's Bundesbank cuts 2014 GDP forecast from +1.9% to +1.5% (consensus is at +1.6%) • South Korea Q1 GDP +0.8% on the quarter (revised from +0.9%) (+1.5% on year, same as prior) • Newcrest Mining to take A$5-6 billion charge on assets as gold price falls (NCM AU closed -7.1%) Leading European Sectors: Telco +1.02%, Insurance +0.48%, Trav/Les +0.36% Lagging European Sectors: Chemicals -0.40%, Fin Services -0.34%, Tech -0.28% CCUR dividend boost — GPS may comps better — MON $26 buyback ZQK revs missed — MTN #'s light — S17 appoints cfo EFTA_R1_00784786 EFTA02136102 Secondaries (announced/priced): PBF, FRO (atm) IPO's: Textura (TXTR) 5.0M-shares priced at $15 (high-end), Partnership Assurance priced 126mm shares 385p/share US Key Research: • Citi initiates XTEX (buy), GS upgrades UAL, ISI upgrades BRCD (buy), Stifel initiates TTO (buy) • Janney resumes CTCT (neut), Jefferies downgrades RUE, Nomura downgrades S • Macquarie initiates C/MS (op) & GS (neut) & BAC (up) & cuts JPM, Roth initiates CWCO (buy) • Piper initiates SHOO (ow) & WWW (neut) & downgrades INTC, UBS upgrades YUM (buy) • Topeka initiates AMKR/BRCM/CDNS/FSUNXPI/RMBS/SPRD (buys) & AMCC/ARMH/MLNX/QCOM (holds) 'e Raja initiates GRMN, B. Riley initiates AMSWA (buy), JPM upgrades DNB, RBC cuts ISLE Europe Key Research: ▪ BofAML downgrade EKTAB SS, AND LN, upgrade DC FP, CS add GLEN LN to focus list • JP upgrade SCR FP, SBD LN, LAND LN, downgrade WLF LN, P1Z GY, SHB LN, AOX GY, FOR FP GS upgrade GEMD LN, MLC LN, LUN DC, IPN FP, downgrade REC IM, ABG downgrade NAS NO • Citi downgrade EU Media, upgrade EU Financial Services, European Travel, Numis upgrade SPT LN • UBS remove ISMS LN from M&A list, Barc upgrade BT/A LN, MS upgrade BELG BB, Bernstein upgrade KPN NA, Beren downgrade HOT GY, KepChev downgrade ALT FP ✓ Exane reit sell MTX GY, upgrade BAYN GY, downgrade ALT FP, Panm upgrade HYC LN ir DNB downgrade WRT1V FH, Maq upgrade GPK LN, Nordea downgrade PAR SS ✓ SNS upgrade HOLCO NA, Swedbank downgrade TDC DC, JEFF upgrade DTE GY EFTA_R1_00784787 EFTA02136103 Liberum Pharma note: (BAYN GY most pref, upgrade GSK LN, ROG VX), Investec dig STHR LN Reporting Pre-Open: CBK, DO, JKS, MBT, NX Reporting Post-Close: ODC Economic Data: May Employment Report @ 8:30am, Consumer Credit t 3pm Conferences: Stile! Energy (Montreal), Sidoti Semi-Annual Microcap (NYC) Analyst/Investor Days: WTM, OB Non-Deal Roadshows: AERL, CCMP, CYBX, KEX, MMYT, NWY, PFPT, RVBD, SLP Shareholder Meetings: WMT, BVN, SAI, RXII, BPZ Equity/Mixed Shelfs: PKY ($1B) Other Newspaper Articles & Stories Barron's positive: Ciena (CIEN) Barron's • S&P cuts outlook on Brazil sovereign rating FT • Draghi lauds 'most successful' ECB action FT • US intelligence agency defends data surveillance FT • China's Wanda nears deal for James Bond yachtmaker FT EFTA_R1_00784788 EFTA02136104 • Facebook hit by fears over long-term prospects FT • Big Tobacco bets a packet on e-cigarettes FT • Obama's gambit to forge rapport with Xi FT • EU Libor plan that ends era of self-regulation FT • UK security committee 'shocked' over Huawei contract with BT FT • Nations are chasing the illusion of sovereignty FT • Britain must fix its banks — not its monetary policy FT • Spanish banks told to brace for energy refinancings FT • Finance: Forced into the shadows FT • Turkey is having its 1968 — and now it needs its De Gaulle FT • SodaStream: all those bubbles Lex • US money market funds: bucking up Lex • Johnson Matthey: going platinum Lex • Kleinwort Benson: RHJI under attack Lex • U.S. Collects Vast Data Trove WSJ • Turkish Leader Holds Firm on Protests WSJ • In Qusayr, Signs of an Intensifying Holy War WSJ • U.S. Senators Warn Europe on Tobacco WSJ • Swiss Made? Better Prove It WSJ • Austerity Isn't Europe's Only Burden WSJ • Germany Cuts Growth Outlook WSJ • Criminal Cases Loom in Rate Rigging WSJ • About Those Swiss Bank Accounts WSJ (Opinion) • Bootle set to claim his biggest prize yet The Times • Apple expected to switch on the iRadio The Times • Fears raised over house price bubble as sweeteners attract surge in buyers The Times • MPs' alarm at Chinese giant Huawei's power over UK phone networks Independent EFTA_R1_00784789 EFTA02136105 • More security chaos for G4S in face of investor and activist fury Independent • Microsoft joins FBI in cybercrime crackdown Independent • Mark Leftly: Network Rail challenge is like running a marathon but there's no gold medal Independent (Comment) • Heathrow looks to build third runway to south-west Telegraph • EDF doesn't have us over a barrel in Hinkley nuclear talks, says Michael Fallon Telegraph • Alex Salmond's dream of a separate Scotland is rapidly falling apart Telegraph • We wasted North Sea oil — let's not do the same with shale gas Telegraph • Nicaragua gives Chinese firm contract to build alternative to Panama Canal Guardian • Ed Milband's austerity-lite is already out of date Guardian • Walmart workers speak out: 'I do not earn enough. I cannot survive like this' Guardian Key Events Next Week Monday: Apple's Worldwide Developer Conference (WWDC) begins in SF, TXN mid-Q update, World Economic Forum, E3 Conference, BOJ meeting, CS Communications Tech Conference (Boston), Earnings (PBY, LULU, NAV) Tuesday: JOLTS Job Openings, Wholesale Inventories, NFIB Small Business Optimism, GS Global Healthcare Conference (Rancho Palos Verdes, CA), Cowen Transportation Conference (NYC), MS Financials Conference (NYC) Wednesday: Treasury Monthly Budget Statement, Piper Consumer Conference (NYC), MS Fin Services Conference, DB Industrials & Basic Materials Conference (Chicago), Earnings (HRB, PVH) Thursday: Advance Retail Sales, Import Price Index, William Blair Growth Stock Conference (Chicago), BMO Fixed Income Insurance Conference (Toronto), Earnings (RH, CASY, RENT) Friday: PPI, IP, Michigan Confidence, Preliminary adds/deletes to the Russell indexes published after 6pm EST, Earnings (SFD) EFTA_R1_00784790 EFTA02136106 Key Events on the Horizon June 19 — FOMC rate decision June 21 — Updates to the lists of adds/deletes for the Russell Rebalance, EuroStoxx 600 adds/deletes on close, Options Expiration June 28 — Russell Rebalance on the close July 1 — Mark Carney takes over as BOE Governor July 31 — FOMC rate decision September — German elections September 18 — FOMC rate decision 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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