Morning News

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Every morning the Street of Walls team puts out an update on market levels, today’s top stories, and active M&A deals.

Morning Market Levels:

  • S&P futures are up 30 points to 1,267
  • Europe: DJ Euro Stoxx 5.4%, FTSE 2.9%, CAC 5.5%, DAX 4.8%, Spain 4.0%, Italy 5.1%
  • Asia: Japan 2.0%, Hong Kong 3.3%, India 0.2%, Australia 2.5%
  • USD (DXY) down -0.91%
  • Gold down -0.06% to $1,723.1
  • Silver up 0.91% to $33.7
  • Copper up 4.30% to $364.2
  • Crude up 2.87% to $92.8
  • Corn up 1.69% to 648.0
  • Wheat up 2.14% to $632.8
  • 10yr Treasury yields are up, trading at 2.30%
  • S&P current trading at 12.50x current year P/E

Today’s Top Stories:

  • EU Vote Rallies Markets: announcement out of Brussels wound up coming in ahead of expectations with 50% haircut to Greek debt and up to $1.4 Trillion for the ESFS bailout package
  • JPM on EU Vote: “The package contains no really significant surprises, and more than we had expected as of the middle of last week has been left to be finalised and detailed over the next month or so. The fact that much of the package will take yet more time to implement reflects the difficulty in securing political agreement, rather than the inherent technicalities. We have been expecting a package that would likely have constructive elements, but that would fail to bring the crisis to an end. That assessment still feels correct with the summit statement now in hand” (JPM)
  • PE Interested in Housing: Big investors are showing interest in an evolving Obama administration plan to sell off foreclosed homes, although the government will have to make the offer sweet enough to coax private funds
  • Americans are not moving: Americans are staying put more than at any time since World War II, as the housing bust and unemployment keep young adults at home and thwart older Americans’ plans for a beachfront or lakeside retirement
  • New HF Requirements: The filings will come two months after the close of a quarter, instead of the originally proposed 15 days after a quarter’s end
  • Investment Banking Standings: Looking at the IB league table for 2011 YTD, JP Morgan leads at 13% market share followed by Barclays at 10% then BAML at 10%
  • FBR Bank Layoffs: FBR is laying off up to 35 percent of its workforce, anticipate tons of investment banking resumes on the street over the next 12 months
  • JPM Share Repurchase: WSJ reporting that JPM requested approval for large share repurchase after exhausting its $8B 2011 authorization last quarter was denied by the FED
  • Jobless Claims: Initial jobless claims fell 2k in the week ending October 22, to 402k from a revised 404k in the previous week (prior: 403k)

M&A Watch:

  • MF Global is exploring strategic options, including a potential sale of the company, according to a person familiar (BBG)
  • Warner Music Group is front runner to buy EMI’s recorded music unit from Citigroup, with a bid of $1.5b-$1.6b, said 2 people familiar (BBG)
  • HTZ withdraws offer to by DTG

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