From: Ike Groff Sent: Mon 6/24/2013 10:08:10 AM Subject: Early Tour 6.24.13 Good Morning ... European Markets off 75-200 bps ... ASX -1.47%, NKY -1.28%, KOSPI -1.31%, TWSE - 0.45%, SHCOMP -5.29%, HSI -2.26% EUR 1.3109 (-0.09%) JPY 97.96 (-0.06%) EUR/JPY 128.41 (-0.03%) AUD 0.9181 (-0.41%) NZD 0.7715 (-0.46%) Spain 10yr 4.94% Italy 10yr 4.66% Portugal 6.60% Germany 10yr 1.78% Japan 10yr 0.88% US 10yr 2.593% Futures: Dow -94, Nasdaq -13, S&P -11 DXY $82.58 (+26c) Crude $93.55 (-14c) Gold $1281.40 (-$10.60) Copper -2.94% Silver -1.77% China was sharply lower and weighed on the region with the SHCOMP -5.29% seeing its biggest one day drop since August 2009. Financials were hit the hardest on continued liquidity concerns as the PBOC remained prudent on its monetary policies and signaled there won't be much improvement in interbank liquidity till mid-July. More headlines around the CSRC plans to restart the IPO pipeline and the US 10 year bond yields spiking also weren't helping. The Nikkei opened strong after the US rebound but grinded slowly lower on light volumes to reverse some of the gains from Friday. The most notable aspect about today's action in Japan was that the Nikkei seemed to have no correlation with the JPY as it weakened from 97.9 to 98.5 intraday. European markets opened flat to higher despite the China move but have since rolled over hard as sovereign yields continue to climb across the board. Beta for sale early on and volumes are decent. US 10yr yield ticking up to the 2.60% level. SPA's been heavy all morning -11 handles = 1573.4 last. "'Chicago & Dallas Fed Manufacturing today' "'Greece closed for holiday (Whit Monday), Wimbledon starts today" • Vodafone makes official bid for Kabel Deutschland (€87/share = €84.50 in cash + €2.50 dividend) • Hutchison Whampoa agrees to buy Telefonica's Irish unit for up to €850 million (TEF SM trading - 0.84%) • VTB may sell part of Tele2 Russia to Putin ally says Vedomosti (TEL2B SS trading -1.9%) EFTA_R1_00783681 EFTA02135450 • Rio Tinto to retain diamond unit after strategic review (had been considering potential sale or IPO) • ENRC founders (along with Kazakh government) announce bid that values company at £3.046 • Pharmstandard looking for buyer for over-the-counter drugs business (potential value - $2.5B) • Swiss Re confirms strategy at investor day (sees 10-12% ROE boost at Life & Health by 2015) • PostNL CEO expects to sell TNT stake within 2-4 years, will meet 2015 target (De Telegraal) • Fiat: Chrysler announced it has refinanced its term loan after the Euro close on Friday (trading +1.8%) • Erste Bank announces capital raise to repay state aid along with a profit warning (trading -8.4%) • Sanofi reports positive phase 3 results for investigational new insulin U300 (trading -1.6%) • Oerlikon gets large order from Saudi Arabia's Al Abdullatif Industrial Investment Co. (trading -2.8%) • Total CEO speaking in interview says they have discussed with Qatar a stake increase (trading +0.39%) • Henkel says that its CEO Kasper Rorsted is "not available" for job at Linde (trading -1.9%) • Hochtief: Leighton lands A$1.3 billion dollar mining contract from Fortescue (HOT GY -1.3%) • Salvatore Ferragamo CEO confirms FY guidance as Q2 sales inline with Q1 (trading -1.9%) • Aker Solutions and Statoli cancel Cat B contract accord b/c technical difficulties (AKSO NO -2.7%) • Eurozone finance ministers did not reach a deal on bank bail-in rules (will meet again on Weds) • Germany's June IFO confidence rose to 105.9 from 105.7 in May (inline with median estimates) Leading European Sectors: Autos/Parts +0.06%, Insurance -0.28%, Telco -0.41% Lagging European Sectors: Fin Services -1.44%, Tech -1.37%, Healthcare -1.37% LPTN increases buyback — SBLK rights offering — JOSB seeking acquisitions Secondaries (announced/priced): UK GY IPO's (lock-up expires): Norwegian Cruise Line (NCLH) EFTA_R1_00783682 EFTA02135451 US Key Research: BMO initiates ECOM (op), Citi initiates BXMT (buy) & upgrades broker dealers (EV/FXCM/SCHWTTROW) • Compass Pt upgrades PHH (buy), GS upgrades CBOE/CME/GGG/POR & downgrades ITW/CNL GS initiates Homebuilders - MTH/RYL/TOL (buys) & BZH/DHI/KBH/LEN/MDC/NVR/TMHC (neuts) & HOV/PHM (sells) • Jeff downgrades WCRX & cuts APPL pt, UBS upgrades DLR, FBR upgrades AMD, Leerink cuts AGN e JPM downgrades DE, Wells downgrades HUBG & LSTR, Stifel upgrades WR (buy), CS downgrades SPRD Europe Key Research: • SocGen downgrades ABI BB, UBS removes VOD LN from key call list, SocGen upgrades DRX LN • Citi downgrades European food retail: SBRY LN, DELB BB, MRW LN, MEO GY, CO FP Barclays downgrades Turkish banks (AKBNK TI, ISCTR TI, YKBNK TI) and upgrades KOMB CP • Citi initiates THE SM, Cantor upgrades RYA ID, Nomura positive UHR VX & CFR VX & ADS GY ▪ DNB upgrades SKAB SS, JPM upgrades YKBNK TI and downgrades GARAN TI, Panmure positive BPTY LN Natixis positive SGO FP and upgrades ATL IM, DNB upgrades Nordic construction & house builder sector rating • Helvea upgrades NOVOB DC & ALV GY, DB upgrades DLN LN, Equita upgrades MB IM, HSBC upgrades NDX1 GY • Investec upgrades RBS LN & AND LN, Kepler upgrades AGN NA, Liberum downgrades DGE LN Oriel initiates ITV LN (hold), Akros upgrades BZU IM, Nordea downgrades MTGB SS, Panmure upgrades DVO LN Peel Hunt upgrades AND LN and downgrades SGRO LN Reporting Post-Close: ARPI, MITL, SONC EFTA_R1_00783883 EFTA02135452 Economic Data: Chicago Fed National Activity Index @ 8:30am, Dallas Fed Manufacturing Activity 10:30am Fed Speakers: Fisher © 1pm (London) Conferences: GHS 100 Energy Conference (Chicago) Analyst/Investor Days: ERF Non-Deal Roadshows: CUTR, ESL, FNSR, PGNX, POWR, SIRI, SNY, VRNM Shareholder Meetings: PMTI, FONR, CYNO, CLWR, KMX, GNCMA Equity/Mixed Shelfs: EXL ($700M), HGG ($300M), PDLI, ABR ($500M), AMRE ($350M) Other Newspaper Articles & Stories Barron's cover: Barron's the trouble they see ahead for the Chinese economy Barron's Barron's positive: Revlon (REV) Barron's, Diebold (DBD) Barron's, Con-way (CNW) Barron's • Supreme Court Comes to Defense of Business WSJ • Slow-Motion U.S. Recovery Searches for Second Gear WSJ • Emerging Markets Are on Their Own WSJ • Closed-End Funds Bite Back WSJ • Banks Present Own Crisis Plan to Fed WSJ • Question Isn't Will the Fed?' It's 'Can It?' WSJ • New Buyout Firm Is Readied WSJ • Smashburger Puts IPO on the Side WSJ EFTA_R1_00783684 EFTA02135453 • Wi-Fi at Takeoff? Expect Delays WSJ • Chevy's Road Map for 140 Countries WSJ • Et Tu, Bernanke? NYT Op-Ed Krugman • Barclays to sell on data from savers and track mobile phones Telegraph • Vodafone in E7.7bn tender offer for Kabel Deutschland Telegraph • Flexible working 'cuts cost to employers', say business leaders Telegraph • The challenges Mark Carney faces as Bank of England Governor Telegraph • Rising beef prices turn meat-eaters on to Quorn Telegraph • NYU's loans for summer homes highlights student debt injustice Guardian • Google and privacy: European data regulators round on search giant Guardian • Snowden, in Russia, Seeks Asylum in Ecuador NYT • Hulu Faces a Nebulous Future as It Seeks a New Owner NYT • Employers Test Plans That Cap Health Costs NYT • British Invasion Reshuffles U.S. Media NYT • BJ's Restaurants has a lot more locations in the oven LA Times Key Events This Week Tuesday: Durable & Cap Goods Orders, S&P/CaseShiller Home Price Index, Richmond Fed, New Home Sales, Consumer Confidence, Sprint (S) shareholder meeting, Oppenheimer Consumer Conference (Boston), Earnings (CCL, LEN, WAG, APOL, SWHC) Wednesday: GDP, MBA Mortgage Applications, Obama in Africa, China industrial profits May, Microsoft Build Conference, Earnings (GIS, MON, BBBY, PAYX) Thursday: Pending Home Sales, Kansas City Fed Manufacturing Index, Personal Income & Spending, EU Leaders Summit in Brussels, Credit Suisse Basic Materials Conference (Boston), Earnings (CAN, CAG, MKC, NKE) Friday: Russell Rebalance on close, Chicago PMI, U. of Michigan Consumer Confidence, Earnings EFTA_R1_00783685 EFTA02135454 (BBRY, FINL) Sunday: China NBS/HSBC manufacturing PMIs Key Events on the Horizon July 1 — Mark Carney takes over as BOE Governor July 4 — BOE/ECB rate decisions July 10 — Fed Minutes from June 18/19 FOMC meeting July 11 — BOJ rate decision July 21 — Upper House elections in Japan July 31 - FOMC rate decision August 1 — BOE/ECB rate decisions August 21 — Fed Minutes from July30/31 FOMC meeting September 5 — BOE/ECB rate decisions September 18 — FOMC rate decision September 22 — German elections EFTA_R1_00783686 EFTA02135455 Ike Groff 1680 Washington Blvd 'Stamford, CT 069011 if (203) 302-7300 1 : : 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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