** MORNING WRAP **
July 3rd, 2006** US MARKETS **
Dow -0,36%; Nasdaq -0,11%; S&P -0,21%; Soxx -1%; Russel2k 1,45%; DJAIG 1,55%;
10yr Bond 0,43%; 10yr Yield 5,14%; Crude future 73,85; Gold 615,85
| Telecom 0,59%| Healthcare 0,5%| Materials 0,47%| Utilities 0,28%| ConsDisc
0,1%| Industrials -0,11%| Energy -0,21%| Financials -0,45%| ConsStaples -0,53%|
Technology -0,95%
** US HEADLINES **
- Renault Board to Discuss General Motors Alliance, French MInister Says
- U.S. Manufacturing Expands, Hiring Rebounds in June, Reports May Indicate
- World Trade Talks Unravel, May Collapse, on Failure to Secure Concessions
- Canada, U.S. Reach Deal to End Two-Decade-Old Dispute Over Softwood Lumber
- Dollar May Extend Losses; Merrill’s Patelis, Top Forecaster, Sees Decline
- Northern Trust, TCW Group, Pimco Say Worst Is Over for U.S. Treasury Bonds
- Wal-Mart June Same-Store Sales Rose 1.2 Percent, Lowest Since April 2005
- Michaels Stores Agrees to $6 Billion Buyout by Bain Capital and Blackstone
- U.S. Natural Gas May Rise on Increased Industrial Demand, High Oil Price
- Stock Sales Reach Record $255 Billion in First Half; Slow as Markets Cool
** US: IN PLAY TODAY **
- ISM Manufacturing & Construction Spending at 16:00 CET
- Vehicle Sales reported during the day.
- U.S. markets trade half a day today & are closed tomorrow for Independence
Day.
** ASIAN MARKETS **
Nikkei 0,29%; Kospi 0,03%; HSI 0,44%; Taiwan 0,21%; China 0,92%; India 0,36%;
Thailand 0,06%; Australia 0,16%
** ASIAN HEADLINES **
- Japan’s Tankan Survey Adds to Speculation Central Bank Will Raise Rates
- Asian Stocks Rise to Four-Week High on Japan Survey; Sumitomo Mitsui Gains
- Japan’s Bonds Fall After BOJ’s Business Confidence Report Signals Recovery
- Nissan’s Shares Rise on Speculation Company May Buy GM Stake With Renault
- Japan Airlines Shares Plunge After Plan to Sell $1.9 Billion in New Stock
- Malaysian Air May Beat 2007 Profit Goal, Helped by Job Cuts, Asset Sales
- Thai Stocks, Hurt by Politics, May Keep Their Status as Asia’s Cheapest
- Australia’s Retail Sales Fall for First Month in Eight on Interest Rates
- Barclays Says Sell Korea Government Bonds as Interest Rates May Increase
** EUROPEAN MARKETS **
S&P future 0,26%; Bund future -0,06%; Crude future 73,85; €/$ 1,27825; Gold
619,45
** EUROPE: IN PLAY TODAY **
- Credit Suisse Group and Morgan Stanley say the storm has passed for stock
investors. They recommend that investors increase their stockholdings
while reducing cash. The firms point to bullish signs such as
corporate stock buybacks and even cite bearish indicators that
are so pessimistic they’re cause for optimism.
- DaimlerChrysler AG: The Chrysler unit is bringing
back its Dodge Challenger, one of the most powerful models from
U.S. automakers’ muscle-car era in the 1960s and 1970s.
Separately, DaimerChrysler and Lagardere SCA may be close to
agreeing on a recovery plan for European Aeronautic, Defence &
Space Co., the parent of planemaker Airbus, Financial Times
reported, citing people close to the talks.
- Hochtief AG: Germany’s second-biggest builder may
consider buying a stake in Unique Zurich Airport, Finanz &
Wirtschaft said, citing Chief Executive Hans-Peter Keitel.
- Allianz AG: The insurer, which is eliminating about
7,500 jobs in Germany, doesn’t expect further reductions in the
foreseeable future, Sueddeutsche Zeitung reported, citing Chief
Financial Officer Paul Achleitner.
- Pirelli & C. SpA: The company abandoned an initial
public offering for its Pirelli Tyre SpA unit that would have
raised as much as 900 million euros ($1.15 billion).
- Banca Popolare Italiana Scrl: Societe Generale SA,
Fortis and Deutsche Bank AG have recently made overtures toward
acquiring the bank, Il Messaggero reported.
- ABB Ltd.: The world’s biggest maker of power
networks hasn’t had any change in its markets from the first
quarter to the second, the Swiss newspaper Finanz & Wirtschaft
said on July 1, citing an interview with Chief Financial Officer
Michel Demare. Markets in China, India, eastern Europe and the
Middle East remain “good,” and ABB is “confident” about
future growth, the Zurich-based newspaper said.
- Nestle SA: The world’s biggest food company’s
Swiss chocolate sales are within its expectations, the Swiss
newspaper SonntagsBlick said on July 2, citing an interview with
Nestle’s Swiss head, Nelly Wenger.
** EUROPE: UPS & DOWNS **
+ MARKS & SPENCER PRICE EST. RAISED TO 670P FROM 600P AT ING
+ BAYER PRICE ESTIMATE RAISED TO EU44 FROM EU42 AT HSBC
+ KELDA RAISED TO `OVERWEIGHT’ AT HSBC
- LEGRAND LOWERED TO `HOLD’ FROM `BUY’ AT DEUTSCHE BANK
- LAGARDERE PRICE ESTIMATE LOWERED TO EU65 FROM EU70 AT UBS
- ALTANA PRICE ESTIMATE LOWERED TO EU50 FROM EU54 AT UBS