Wednesday Pre-Market News (11/23/11)

Updated on

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

Today’s Top Stories:

  • Dexia Bank Bailout: report this morning in the European press claims Belgium can’t afford to pay for its part of the Belgium bailout, meaning France may be called upon to contribute more money
  • Breaking up EU Investment Banks: a study will take place in Europe to examine the potential separation of investment banking from traditional retail activities
  • Will the $1.2T Cuts Go Through: The Pentagon isn’t even planning for the $500B worth of reductions set to hit its budget starting in ’13.  Obama said he would veto any bill designed to dial those $1.2T in cuts back and Boehner and Reid have both signaled they want them to go into effect.  However, there is a massive effort in Congress to save the Pentagon from a planned $500B worth of reductions starting in ’13
  • DB Could Sell Asset Management: DB is considering the sale of several global asset mgmt businesses (Reuters)
  • Citi Settlement: the co may be forced to pay more than the current $285M to settle a CDO-related case w/the SEC according to lawyers (BBG)
  • Citi on Retail Preview: “Believe Nov SSS are running below plan through the first 3 wks of the month. Consumers have been more deliberate with early Holiday shopping, researching products online and waiting for deals. Additionally, warm weather during the month won’t have helped. We forecast +3.9% SSS in Nov. With the season likely to get off to a strong start on Black Friday, driven by: 1) earlier openings at KSS, M, TGT, and WMT; 2) more compelling values YOY; and 3) favorable weather” (Citi Research)
  • VC Firms: The 2011 National Venture Capital Association (NVCA) Yearbook is out and includes the latest statistics that describe the activity of the US venture capital industry

Economic Calendar:

  • Wednesday: Durable/Cap Goods Order, Personal Income, PCE Deflator, Initial Jobless Claims, U. of Mich Confidence Sentiment, Kansas Fed Survey
  • Thursday: US Market closed
  • Friday: N/A

M&A Watch:

  • Weir Group Plc agreed to acquire Seaboard Holdings Inc for US$675 million in cash from Industrial Growth Partners LP and the management
  • Dempsey Minerals Ltd agreed to acquire Winmar Resources Ltd for AUD6.2 million (US$6.1 million) in stock
  • European Wealth Management Group Plc acquired Rickerbys LLP, also known as Aventus Capital Management, for an undisclosed amount

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