** MORNING WRAP **
** US MARKETS **
Dow -0,01%; Nasdaq -0,17%; S&P -0,04%; Soxx -0,09%; Russel2k -0,43%; DJAIG
0,06%; 10yr Bond 0,03%; 10yr Yield 5,03%; Crude future 73,99; Gold 629,75
| Energy 1,66%| Telecom 1,41%| Utilities 0,37%| Healthcare 0,35%| Technology
0,02%| Financials -0,1%| Materials -0,16%| ConsStaples -0,39%| ConsDisc -1,14%|
Industrials -1,29%
** US HEADLINES **
- Exxon May Post Record Second-Quarter Profit on Higher Prices, Production
- Nanotech’s Atom-Size Inventions Lure VCs With Potential $1 Trillion Market
- Dollar May Decline Against Yen on Speculation of Fed Interest-Rate Pause
- Yuan Rises to Post-Revaluation High After Senators Set Deadline for Gain
- Cuomo, Rivals for Spitzer’s Job Play Down Mantle of Wall Street Watchdog
- Aim’s Walsh Buys GE, Pfizer as Dividend Yields Produce Top-Ranked Returns
- Investment-Grade Bonds Set to Beat Junk Debt Securities for Second Month
- Time Warner May Approve Free-AOL Strategy as Early as Today, Person Says
- Japan’s Government Agrees to Lift Six-Month Embargo on U.S. Beef Products
** FED BEIGE BOOK **
- The Federal Reserve said U.S. economic growth slowed in the past month, while
consumer-price and wage increases were “modest” on balance, strengthening the
case for a break from interest-rate increases.
** US: IN PLAY TODAY **
- Symantec (+6% after hours) reported Q1 (Jun) earnings of $0.24 per share,
excluding non-recurring items, $0.06 better than the Reuters Estimates consensus
of $0.18. Revenues rose 79.9% year/year to $1.26 bln vs. the $1.24 bln
consensus. Co issued upside guidance for Q2, sees EPS of $0.26-0.27 (consensus
$0.21) on revenues of $1.275-1.305 bln (consensus $1.29 bln). Co also issued
upside guidance for FY07, now sees EPS of $1.06-1.16 (consensus $0.93) on
revenues of $5.2-5.4 bln (consensus $5.3 bln).
- Dow component ExxonMobil (XOM) will head a list of notable names before the
bell that also includes Aetna (AET), Alcatel (ALA), AztraZeneca (AZN),
Autonation (AN), Boston Scientific (BSX), Bristol-Myers (BMY), Coca-Cola
Enterprises (CCE), Comcast (CMCSA), Dow Chemical (DOW), Harrah’s Entertainment
(HET), Kellogg (K), Northrop Grumman (NOC), Raytheon (RTN), and St. Paul
Travelers (STA).
After the close, Anadarko Petroleum (APC), DTE Energy (DTE), Genworth Financial
(GNW), Hartford Financial (HIG), McKesson (MCK), Standard Pacific (SPF) and YRC
Worldwide (YRCW) are scheduled to report quarterly results.
- On the economic front, Durable Orders and Initial Claims will be out at 14:30
CET while New Home Sales should hit the wires at 16:00 CET.
** ASIAN MARKETS **
Nikkei 1,79%; Kospi 1,49%; HSI 1,38%; Taiwan 1,3%; China -0,23%; India 1,03%;
Thailand 0,61%; Australia 1,16%
** ASIAN HEADLINES **
- China’s Sovereign Rating Raised to A by S&P as Banking Strength Improves
- Taiwan Semiconductor Profit Jumps 85 Percent to Record on Games and Phones
- Asian Stocks Climb, Led by Matsushita Electric and Kookmin Bank, on Profit
- Indonesia’s Central Bank Says It May Cut Interest Rates as Inflation Slows
- JFE First-Quarter Profit Tumbles 23 Percent as Steel Export Prices Decline
- Kookmin, South Korean Banks’ First-Half Profits Rise on Increased Loans
- Stats Chippac Posts a Record Profit; Shares Fall on Third-Quarter Forecast
- Hyundai Motor, Union Reach Agreement to End Strike That Cost $1.3 Billion
- Malaysia Central Bank May Keep Benchmark Rate Unchanged as Inflation Eases
** EUROPE: IN PLAY TODAY **
- Earnings today: ABB, Astrazeneca, Bulgari, Daimler Chrysler, Lufthansa, Hugo
Boss, Pirelli, Saipem, Santander, Siemens, Cap Gemini, Vedior, Telefonica,
UP-Kymmene & Volkswagen.
- ABB Ltd., the world’s largest builder of electric power networks, said
second-quarter profit more than doubled after the Swiss company lowered costs by
cutting 1,300 jobs and increased sales to U.S. utilities.
Net income rose to $367 million, or 17 cents a share, from
$126 million, or 6 cents, a year earlier, the Zurich-based
company said today in an e-mailed statement. Orders added 19
percent to $7.28 billion. Both figures beat analysts’
expectations.
- France Telecom SA, Europe’s second-largest phone company, said first-half
profit fell 30 percent as earnings in the fixed-line telephone unit dropped and
a year- earlier gain wasn’t repeated. The company said it won’t meet
full-year sales growth targets.
Net income declined to 2.35 billion euros ($3 billion) from
3.36 billion euros a year earlier, the Paris-based company said
in an e-mailed statement. Analysts had predicted profit of 2.45
billion euros, the median of 16 estimates in a Bloomberg survey.
The year-earlier figure included a 200 million-euro gain related
to France Telecom’s Lebanese unit.
- European Aeronautic, Defence & Space Co., parent of beleaguered aircraft-maker
Airbus, reported first- half profit rose 5 percent on higher plane deliveries.
Net income increased 1.043 billion euros ($1.3 billion), or
1.31 euros a share, from 992 million euros, or 1.25 euros, a year
earlier, EADS said in a German stock exchange filing. Sales
increased in the six months to 19 billion euros from 16 billion
euros.
- Deutsche Lufthansa AG : Europe’s second-biggest
airline posted a nearly 85-fold surge in first-half profit after
consolidating holdings in other airlines and increasing traffic
in the period.
- Vedior NV, the world’s third- largest temporary-staffing company, said
second-quarter profit fell 18 percent after it didn’t repeat a one-time gain on
the sale of an asset.
Net income dropped to 42.4 million euros ($54 million), or
24 cents a share, from 51.8 million euros, or 30 cents, a year
ago, Amsterdam-based Vedior said in an e-mail today. Sales
climbed 12 percent to 1.93 billion euros.
- Capgemini Thursday said second-quarter revenue rose 8.6%, led by strong growth
in the U.K. and Ireland, and raised its guidance for the full year.
The French consulting and IT services company said revenue for the three
months ending June 30 was EUR1.92 billion, up from EUR1.76 billion in the
year-ago period. The figure exceeded analysts’ expectations of EUR1.89 billion.
- Telefonica SA, Europe’s third- biggest phone company, said second-quarter
profit climbed 41 percent, spurred by the takeover of mobile-phone operator O2
Plc. Net income rose to 1.3 billion euros ($1.7 billion) from
922.9 million euros a year earlier, the Madrid-based company
said in a regulatory filing. That’s more than the median
estimate of 1.15 billion euros from nine analysts surveyed by
Bloomberg.
** EUROPE: UPS & DOWNS **
+ HANSON RAISED TO `BUY’ FROM `HOLD’ AT CITIGROUP
+ WOLFORD RAISED TO `BUY’ FROM `HOLD’ AT DEUTSCHE BANK
+ NORTHERN ROCK PRICE EST. RAISED 20% TO 1,230P AT CREDIT SUISSE
+ REUTERS PRICE ESTIMATE RAISED TO 440P FROM 425P AT UBS
+ ANTOFAGASTA PRICE ESTIMATE RAISED 5% TO 525P AT UBS
+ AIR LIQUIDE PRICE TARGET RAISED TO EU162 VS EU156.36 AT UBS
+ SAIPEM PRICE TARGET RAISED TO EU24.5 VS EU23.5 AT UBS
+ ENERGIAS DE PORTUGAL PRICE EST. RAISED TO EU3.33 VS EU3 AT UBS
- STMICROELECTRONICS PRICE EST. CUT 12% TO $15 AT DEUTSCHE BANK
- BLACK & DECKER CUT TO `NEUTRAL’ FROM `OVERWEIGHT’ AT JPMORGAN
- ENDEMOL LOWERED TO `NEUTRAL’ FROM `BUY’ AT MERRILL LYNCH
- MERCK PRICE ESTIMATE LOWERED TO EU80 FROM EU90 AT LEHMAN