EFTA02128952

From: Sent: Thur 9/5/2013 9:55:10 AM Subject: Early Tour 9.5.13 Good Morning ... European Markets -15bps to +15bps ASX200 -0.37%, NKY225 +0.08%, KOSPI +0.96%, TWSE +1.06%, SHCOMP -0.24%, HSI +1.20% EUR 1.3193 (+0.09%) JPY 99.86 (+0.41%) EUR/JPY 131.72 (+0.49%) AUD 0.9141 (-0.20%) ILS +0.23% IDR +2.09% INR +0.85% US 10yr 2.93% Japan 10yr 0.78% Germany 10yr 1.987% Portugal 10yr 6.77% Italy 10yr 4.45% Spain 10yr 4.53% Futures: Dow -25, Nasdaq -2, S&P -2 DXY $82.27 (+10c) Crude $107.94 (+77c) Gold $1391.00 (+$1.60) Copper +0.25% Silver +0.41% Asian markets are mostly higher but volumes are uninspiring ahead of a slew of upcoming events (ECB/G20/IOC/NFP/Syria vote). India (+2.6%) currently outperforms as the new central bank governor tries to restore confidence by announcing new measures ahead of the upcoming monetary policy decision on September 20th. Hong Kong is also stronger led by Chinese banks, on back of China Merchant's successful rights offering, and with shippers up on strength in the BDIY. Japanese equities saw volatile trading in the PM but ended the day flat as the Yen attempted to break the 100 handle but fell short during market hours, although it did briefly post the close. The BOJ was a non-event as policy was left unchanged and it was announced that the monetary base would continue to expand at Y60-70 trillion a year. The BOJ also upgraded their assessment of the economy saying a moderate recovery is underway. The same is expected of the ECB & BOE rate announcements later this morning where analysts are also expecting rates to remain unchanged. European markets were trading higher this morning although dropped sharply on unconfirmed rumors of an explosion at the Russian Embassy in Damascus, bringing the SX5E currently to about flat. The Senate Foreign Relations Committee passed a measure that aimed the goal of military action in Syria to be to "change the momentum on the battlefield" (WSJ). Today's employment data releases, ADP private sector jobs data and Challenger Job cuts, will be a focus with tomorrow's Nonfarm Payroll print being the last jobs report before the Feds Sept 18°' meeting. S&P futures traded lower with Europe, -2.2 handles = 1651.20 "G20 Leaders 2-day Summit begins (St. Petersburg, Russia)— "BOE rate decision © 7am, ECB rate decision @ 7:45amn • Linkedln increases secondary offering to $1.2B, pricing 5.4M shares at $223 (trading -2.5%) EFTA_R1_00770170 EFTA02128952 • Bazaarvoice reports narrower loss than expected through rev growth out pacing expenses (trading - 2.3%) • NCI Building Systems eps/revs missed est with the co siting a lack of eco momentum/construction (trading -11.5%) • Sigma Designs Inc.'s loss narrowed as both revs and expenses drop; boots guidance (trading +9.0%) • Altran H1 revs & net income in line, sees much brighter 1-12, on track with strategic plan (trading - 3.5%) • Go Ahead FY revs in line, EBITDA & EBIT better, trading in line with board's expectations (trading +3.2%) • Betfair O1 IMS in line, rev growth strong, on track to meet 2014 expectations (trading unch) • Monitise FY EBITDA slight light, EPS shade better, Chairman stepping down (trading -10%) • Easyjet August passenger numbers +3.9%, load factor 92.8%, both small ahead (trading +1.7%) • Dixons O1 trading statement, geographically mixed, sells ElectroWorld & Pixmania (trading +8.5%) • Glaxo: MAGE-A3 fails first co-primary endpoint in Phase Ill melanoma clinical trial (trading -1.4%) • SKF agrees to buy Kaydon for $35.50 per share, tender period starts Sept 161h (trading +0.8%) • Air Liquide in talks with Axa Private equity sell its Anios stake (trading -1.2%) • Enagas increases its stake in GNL Quintero terminal in Chile (trading -0.6%) Leading European Sectors: Autos +1.38%, Media +0.73%, Banks +0.61% Lagging European Sectors: Healthcare -0.92%, Oil & Gas -0.85%, Chemicals -0.70% POZN Sanofi agreement — ENVI loss beats est — MFXG reit's guidance GEF eps miss/reaffirms guidance — CHTP fda resubmission — DDC eps miss Notable Options Activity Yesterday: BBRY (10.75 +5.3%) Amid speculation that the firm was seeking a strategic alternative sooner rather than later near term upside calls saw huge volumes. The weekly $10.50 and $11 calls saw 18,000 contracts and 12,000 contracts trade respectively, with the Septembers seeing activity in every strike up to the 19s. EFTA_R1_00770171 EFTA02128953 WTW (37.89 +3.4%) aggressive opening cust bought October 40 calls throughout the afternoon 5000+ traded from .60 to .90 lifting vol on the line by -20% earnings not expected until nov CONN (34.1 +.5%) heading into earnings we note some bullish activity in sep and oct opening cust sold 2600 sep 65 puts at 2.00 additionally it looks like the same cust sold 3000 oct 50 calls closing (bot on 5/15 as part of 50/60 cs with stock -48) to buy 4000 oct 70 calls opening gaining additional upside exposure QLIK (34.09 +.1%) several bullish trades across months with the most notable being an opening cust buying the oct 35140 call spread for 1.30 1500x cust breaks even with stock up 6% and wins the most with stock up 17% at oct expiration Secondaries (announced/priced): LNKD (5.4M shs $223.00), MTDR (8.5M shs 15.25), JAH (15M shs @ $47.00), TLR IPO's: EP Energery (EPE) files $100M IPO US Key Research: • Jefferies initiates JONE (buy) & upgrades EXR (buy), Wedbush initiates SBUX (op) • MS initiates AGCO/TEX (ow) & CAT/JOY/MTW/URI (ew) & DE/PH (uw) • Key initiates MDRX (hold) and GWAY (buy), Baird initiates TRMB (op) • Raja initiates ADS (op), RBC downgrades LMT, Longbow upgrades SHW (buy) Europe Key Research: • JPM downgrade DELB BB, ZEP PW, upgrade RWE GY, KepChev initiate ZAG AV (h) • Nomura u/g WG/ LN, d/g AKSO NO, ENI IM, FUR NA, LAM LN, SBMA NA, SPM IM, SUBC NO • Barclays u/g SIE GY, d/g ABBN VX, G1A GY, LR FP, ALFA SS, ALO FR MEO1V FM EFTA_R1_00770172 EFTA02128954 • UBS upgrade IHG LN, downgrade MRO LN, downgrade AC FP, Numis upgrade EZJ LN r BofAML upgrade BMW GY, ATL IM, SKAB SS, initiate DNO NO (b) • MS upgrade IAP LN, BAER VX, VIV FP, add LSE to most pref, resume NOK1V FH (ew) - CS upgrade BBVA SM, POP SM, remove RYA ID from Europe focus list • Citi initiate SLIGR NA (b), SocGen downgrade PIG FP, RBC upgrade RTO LN, d/g GFS LN RayJ initiate GGB FP (up), Bern downgrade CRH ID, initiate STM FP (mp) r MAO downgrade STAN LN, ENG SM, Exane downgrade RWE GY • HSBC upgrade MKS LN, POST AV, initiate BPOST BB (n) Reporting Pre-Open: CONN, DFZ, PMFG, TITN Reporting Post-Close: AMBA, BLOX, COO, FCE.A, FNSR, KFY, PAY, RALY, SEAC, SWHC, TWGP, ZQK, ZUMZ Economic Data: Challenger Job Cuts / RBC Consumer Outlook Index @ 7:30am, ADP Employment Change @ 8:15am, Jobless Claims / Nonfarm Productivity & Unit Labor Costs @ 8:30am, Bloomberg Consumer Comfort @ 9:45am, Factory Orders / ISM Non-Manufacturing Orders @ 10am Conferences: No major conferences Analyst/Investor Days: SYK Non-Deal Roadshows: Al, AN, BBY, BSFT, BZLFY, CAKE, CAS, CBI, CMG, EE, ETN, HGR, HIBB, LMT, MKTG, MXL, NBL, NOC, ONE, PERY, REG, RESI, RPTP, SCBFF, SFLY, SIMO, SIRI, SMTC, TNGO, VMW, WX, RNA Shareholder Meetings: VRTU, ABCO, AXAR Equity/Mixed Shelfs: MHGC ($500M) EFTA_R1_00770173 EFTA02128955 Other Newspaper Articles 8, Stories Barron's positive: Comcast (CMCSA) WSJ WSJ cautious: Fossil (FOSL) WSJ BoJ lifts assessment of Japan's economic health FT Eurozone mood brightens, but not for all FT Microsoft: bravado or stoicism? Lex India — Reserve judgment Lex European airlines: losing altitude Lex Europe has paid a price for losing its mobile lead Fr The west is accelerating its strategic decline FT Like India, Indonesia will pay for resting on its laurels FT The case for cautious optimism on the British economy FT Showdown looms for Dish, ESPN WSJ In Muni-Bond Market, Some Investors Fly First Class WSJ U.S. Can Catch Emerging Nations' Malaise WSJ Capital Unease Again Bites Deutsche Bank WSJ Blackberry seeks a sale by November WSJ MSG, Azoff Unveil New Entertainment Venture WSJ Maker of Coffee Pods Adds New Flavor: Soup WSJ Sony introduces "Lens Type Camera for smartphones WSJ "Jumbo' mortgage rates hit milestone WSJ Liberty Media's John Malone is planning for succession NY Post Balls accused of backtracking on economy as recovery builds pace The Times New Google Android product called KitKat The Times EFTA_R1_00770174 EFTA02128956 Court action could sink scheme to sell off RBS The Times Osborne pledges tax reform to boost technology investment The Times Triple shocks threaten Europe's sickly and deformed recovery Telegraph The Germans are walking tall in the Eurozone, but just how rich are they? Telegraph Strong institutions vital to safe economy, Andy Haldane says Telegraph Barclays' £6bn cash-raising efforts to begin on Friday 13th Guardian Telecoms industry rings in the changes Independent Key Events This Week Friday: August Employment Report, German trade balance & industrial production, JMP Boston Biotechnology Day (Boston), Earnings (MFRM, SFD, SHFL) Saturday: Australian elections Sunday: China Aug PPI/CPI Key Events on the Horizon September 9 — Italy Senate Commission hearings resume on whether to strip Berlusconi from seat and ban him from running for elections for 6+ years (final vote in October) September 10 — AAPL iPhone event September 18 — FOMC rate decision September 20 - EuroStoxx 600 changes on the close EFTA_R1_00770175 EFTA02128957 September 22 — German elections September 30 — Fiscal Year End for US Federal Government October 10-11 - G20 Fin Min/CB meeting (DC) 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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