Morning Market Update
Exclusive: Third Point Expands Private Equity Business With New $300 Million Fund
Dan Loeb's Third Point recently completed the first close for TPVC, its new dedicated private growth-stage fund. The $300 million fund is part of Third Point's private investing strategy. At the end of February, Third Point managed $16.5 billion overall for clients around the world. New talent According to an investor update dated March 5th Read More
* US: Dow Futures: 12559.00 (0.45%), S&P 500 Futures: 1328.50 (0.49%), NASDAQ Futures: 2569.00 (0.47%)
* Europe: CAC: 3087.75 (1.18%), DAX: 6235.20 (1.70%), FTSE: 5471.25 (0.67%).
* Asia-Pacific: Australia: 4063.70 (-1.09%), China: 2305.86 (1.06%), Hong Kong: 18953.63 (2.38%), India: 5054.10 (-0.28%), Japan: 8624.90 (1.92%).
* Metals: Gold: 1593.10 (0.11%), Silver: 28.62 (0.54%), Copper: 3.35 (2.01%)
* Energy: Crude Oil: 84.95 (1.01%), Natural Gas: 2.27 (-1.35%)
* Commodities: Corn: 5.99 (0.80%), Soya Bean: 13.38 (-0.73%), Wheat: 6.35 (-1.29%)
* Currency: EUR/USD: 1.2562 (0.36%), GBP/USD: 1.5568 (0.61%), USD/JPY: 79.5400 (0.08%)
* 10 year US Treasury: 1.647% (0.010)
Financial and Economic News Update
U.S. stock-index futures pare gains: U.S. stock index futures are pointing to a higher open on Monday, but are off highs reached earlier, as investors cheer the $125 billion bailout for Spanish banks. The Dow Jones industrial average, the S&P 500 and the NASDAQ futures were all trading about 0.5 percent higher.
European markets in the green: European markets are up in trade today, with the German DAX (INDEXDB:DAX) trading 1.7 percent higher at 6235.20, the FTSE 100 (INDEXFTSE:UKX) up 0.7 percent at 5471.25, and the CAC 40 (INDEXEURO:PX1) gaining 1.2 percent to 3087.75. The euro zone blue-chip ESTX 50 PR.EUR (INDEXSTOXX:SX5E) (Euro Stoxx 50) was trading 1.5 percent higher.
Asian markets end higher: Asian markets closed higher on Monday, with Japan’s NIKKEI 225 (INDEXNIKKEI:NI225) jumping 2 percent to close at 8,624.90. The HANG SENG INDEX (INDEXHANGSENG:HSI) closed 2.4 percent higher at 18,953.6, while the SSE Composite Index (SHA:000001) (Shanghai Composite Index) was up 1.1 percent at 2,305.8 points. The S&P/ASX 200 (INDEXASX:XJO) index was closed today. The benchmark Indian 30-share BSE SENSITIVE (INDEXBOM:SENSEX) index gave up earlier gains to close 0.3 percent lower at 16,668.01 points
Company News Update
* Apple Inc. (NASDAQ:AAPL) is expected to unveil details of its new operating system, iOS6, at its annual developers’ conference, which starts today in San Francisco.
* Goldman Sachs Group, Inc. (NYSE:GS) is close to striking a deal to sell its hedge fund administration unit to U.S. bank State Street Corporation (NYSE:STT), the Financial Times reported.
* Europe’s largest carmaker Volkswagen AG (FRA:VOW) is planning to buy a stake in troubled US truck maker Navistar International Corp. (NYSE:NAV).
* According to a Reuters report, United Technologies Corporation (NYSE:UTX) has offered to sell assets to secure European Union regulatory approval for its $16.5 billion takeover of U.S. aircraft components maker Goodrich Corporation (NYSE:GR).
* Comcast Corporation (NASDAQ:CMCSA) has categorically denied media reports that it was preparing a bid for British Sky Broadcasting Group plc (LON:BSY).
* Health insurer Centene Corp (NYSE:CNC) has forecast a second-quarter loss and has slashed its outlook for the full year, sharply below Wall Street consensus estimates.
* The Indonesian government has granted permission to Freeport McMoRan Copper & Gold Inc. (NYSE:FCX) to export unprocessed ore, after imposing new rules on mining exports last month.
* Singapore state investment company Temasek Holdings has bought a 5.5 percent stake in Vancouver-based Ivanhoe Mines Ltd. (USA) (NYSE:IVN) valued at around $426 million
* Private equity funds Apax Partners and JMI Equity have agreed to acquire software vendor Paradigm Ltd for about $1 billion in cash.
* W.W. Grainger, Inc. (NYSE:GWW) reported year-over-year sales growth of 13 percent in May 2012.
* Time Warner Inc. (NYSE:TWX) has been upgraded to “market perform” from “under perform” at Bernstein.
* Travel website operator TripAdvisor Inc (NASDAQ:TRIP)has been upgraded to “overweight” from “neutral” at Piper Jaffray.
* Banco Bilbao Vizcaya Argentaria SA (ADR) (NYSE:BBVA) and Banco Santander, S.A. (ADR) (NYSE:STD), Spain’s two biggest lenders, were the standout gainers in Madrid today, after the country secured a bailout for its banks.
* Bayerische Motoren Werke AG (FRA:BMW) reported a 6.4 percent increase in global car sales last month, as strong demand in China offset weak sales in Europe.
* Tesco PLC (LON:TSCO), the world’s third biggest retailer, posted a 1.5 percent decline in first quarter British same-store sales, the third consecutive quarterly fall.
* Swedish private equity group EQT has agreed to acquire German bandage maker BSN medical for about 1.8 billion euros ($2.27 billion) from Montagu Private Equity LLP.
* Ditlev Engel, Chief Executive of Vestas, the world’s biggest wind turbine maker, said that the U.S. wind turbine market is likely to shrink by 80 percent next year because of the expected expiry of production tax credit at the end of 2012.
* London-listed Cove Energy PLC (LON:COV) announced additional gas finds at its Atum well, off the coast of Mozambique.
* British maker of aircraft components, GKN plc (LON:GKN), said that its aerospace unit has been awarded a contract by The Boeing Company (NYSE:BA) to supply titanium and aluminum parts for its 787-9 Dreamliner.
* South Korean consumer electronics giant Samsung Electronics Co. issued an e-mailed statement today, denying it was interested in acquiring Finnish mobile phone maker Nokia Corporation (ADR) (NYSE:NOK).
* SK Hynix, the world’s second largest memory chipmaker, has entered into an agreement with International Business Machines Corp. (NYSE:IBM) to jointly develop next-generation phase-changing random access memory chips, and license relevant technology.
* Spanish telecom company Telefonica S.A. (ADR) (NYSE:TEF) has sold almost half its stake in China Unicom (Hong Kong) Limited (ADR) (NYSE:CHU), to the Chinese telecom operator’s parent company for10.96 billion Hong Kong dollars ($1.43 billion).
* Japanese television maker Sharp Corporation (TYO:6753) said that Taiwanese electronics manufacturing company Foxconn Technology Group will start buying its panels earlier than expected. The stock ended 8.2 percent higher in Tokyo.
* Chinese mainland property developer Greentown China Holding Limited (HKG:3900) will raise 5.1 billion Honk Kong dollars ($657 million) by selling new shares and convertible bonds to shareholder The Wharf (Holdings) Limited (HKG:0004). The stock soared 33 percent in Hong Kong trading.
* Japanese chipmaker Sumco Corp (TYO:3436) reported an operating profit of 2.9 billion yen ($36 million) for the February-April quarter, topping analysts’ estimates of 1 billion yen.
Economic Calendar for Monday, June 11, 2012:
11:00 A.M. ET: 4-Week Bill Announcement
11:30 A.M. ET: 3-Month Bill Auction
11:30 A.M. ET: 6-Month Bill Auction