Europe Day Ahead: Sony Ericsson Mobile Communications Reports
July 11 (Bloomberg) -- Asian stocks fall; subprime losses drub debt securities; Sony Ericsson Mobile Communications reports; Adidas AG expects ``record year'' in 2008, Welt says; Goldman Sachs Group Inc. plans 4 billion-pound bid for Southern Water Plc, Telegraph reports.
Top Stories and Most Read on Bloomberg Asian Stocks Fall on Lower Metals Prices, U.S. Earnings Concern
Asian stocks fell for the first time in three days after metals prices slid and earnings reports in the U.S. suggested demand is cooling in the region's biggest export market.
The Morgan Stanley Capital International Asia-Pacific Index slid 0.7 percent to 157.58 at 10:28 a.m. in Tokyo, after rising to a record yesterday. All 10 industry groups fell.
Subprime Losses Drub Debt Securities as Credit Ratings Decline
On Wall Street, where the $800 billion market for mortgage securities backed by subprime loans is coming unhinged, traders are belatedly acknowledging what they see isn't what they get.
As delinquencies on home loans to people with poor or meager credit surged to a 10-year high this year, no one buying, selling or rating the bonds collateralized by these bad debts bothered to quantify the losses. Now the bubble is bursting and there is no agreement on how much money has vanished: $52 billion, according to an estimate from Zurich- based Credit Suisse Group earlier this week that followed a $90 billion assessment from Frankfurt-based Deutsche Bank AG.
Buyout Firms' Tax Rise Wouldn't Hurt Workers, Pension Funds Say
The private-equity and hedge-fund industries are fighting a proposed tax increase by arguing it would hurt workers' retirement. The pension funds whose interests they claim to be defending aren't buying it.
Lobbyists for firms such as Blackstone Group LP, the Carlyle Group and Apollo Management LP have joined with allied Republican lawmakers and groups such as the U.S. Chamber of Commerce to attempt to show that higher taxes on hedge-fund and private-equity managers would cut into the returns of pension funds and threaten the retirements of police officers, nurses and teachers.
RTL, Liberty Reject Copyright Agencies Bid to Settle EU Dispute
RTL Group SA, Deutsche Telekom AG, Liberty Global Inc. and two dozen competitors asked European Union regulators to reject an offer by national royalty-collection agencies to settle an antitrust case.
The agencies, which collect performance and broadcast fees on behalf of artists and composers, offered to drop some restrictions on the licenses they sell to address EU concerns they break competition rules. RTL, Europe's biggest broadcaster and a unit of Germany's Bertelsmann AG, has complained that the proposal is inadequate because key rights remain in the hands of the 27 separate national groups.
Brown to Set U.K. Legislative Agenda on Homes, Schools, Health
Gordon Brown, two weeks into his job as U.K. prime minister, today will set out his legislative agenda for the next year, focusing on housing, education and health.
In a statement to Parliament, Brown ``might cover'' how his government will encourage lenders to offer more 25-year fixed rate mortgages, his spokesman Michael Ellam said. Such a move may involve the Financial Services Authority and the Debt Management Office, he said. The statement is due at 12:30 p.m. London time.
Main Companies/Earnings
Adidas AG (ADS GY): The world's second-biggest sporting- goods maker expects to have a ``record year'' in 2008, Die Welt reported, citing Chief Executive Officer Herbert Hainer.
Ericsson AB (ERICB SS): Sony Ericsson Mobile Communications, the world's fourth-biggest mobile-phone maker, may say second-quarter net income was 383 million euros ($526 million), the average analyst estimate in an SME Direkt poll.
Givaudan SA (GIVN VX): The flavor and fragrance maker will find it ``difficult'' to maintain the level of sales growth it had in the first quarter through the whole year, Handelszeitung reported, citing Chief Executive Officer Gilles Andrier.
Investor AB (INVEB SS): The Swedish Wallenberg family's holding company is scheduled to present second-quarter results.
Kinepolis NV (KIN BB): Belgium's biggest movie-theater operator will release second-quarter ticket sales.
Royal Dutch Shell Plc (RDSA NA): Europe's largest oil company was cut to ``sell'' from ``neutral'' by analysts at Goldman Sachs Group Inc.
Tandberg ASA (TAA NO): The world's second-largest maker of videoconferencing equipment may say second-quarter net income gained 55 percent to $23.9 million, the average analyst estimate in a survey by Bloomberg News.
Main analyst upgrades/downgrades, estimate changes UNIFIED ENERGY CUT TO `HOLD' FROM `BUY' AT CITIGROUP CARREFOUR RAISED TO `HOLD' FROM `SELL' AT CITIGROUP ROCHE CUT TO `HOLD' FROM `BUY' AT CITIGROUP ACTIVISION CUT TO `NEUTRAL' FROM `OVERWEIGHT' AT JPMORGAN
European Markets
The FTSE 100 Index will drop 24 points to 6606, the DAX will fall 95 points to 7869, and the CAC 40 will decline 40 points to 5979, according to Cantor Index.
Yen Falls From Month High as Japanese Investors Sell Into Rally
The yen fell from a one-month high against the dollar on speculation Japanese investors took advantage of a 1.4 percent rally yesterday to sell the currency to invest in higher- yielding securities.
The yen traded at 121.70 per dollar at 12:36 p.m. in Tokyo from as high as 120.99 and from 121.74 late in New York yesterday. It was at 167.18 per euro from as high as 166.61.
U.S. Stocks Fall, Led by Banks, Retailers on Housing Slump Woes
Builders, banks and retailers sent the U.S. stock market tumbling for the first time in six days on increasing evidence the housing slump is depressing earnings.
The S&P 500 lost 21.73, or 1.4 percent, to 1510.12. The Dow Jones Industrial Average plunged 148.27, or 1.1 percent, to 13,501.70. The Nasdaq composite slid 30.86, or 1.2 percent, to 2639.16.
U.S. Notes Rise; Moody's Ratings Cuts Feed Demand for Safety
U.S. 10-year Treasury notes rose for a third day after Moody's Investors Service cut the ratings on $5.2 billion of bonds backed by subprime mortgages, feeding demand for the relative safety of government debt.
The yield on the benchmark 10-year note fell 2 basis points to 5.01 percent as of 10:54 a.m. in Singapore, according to bond broker Cantor Fitzgerald LP. The price of the 4 1/2 percent security due in May 2017 rose 1/8, or $1.25 per $1,000 face amount, to 96 2/32.
Crude Oil Is Little Changed After Rising on Gains in Gasoline
Crude oil was little changed in New York, after rising yesterday as gasoline prices climbed on speculation U.S. output of the fuel may slow due to unplanned refinery shutdowns.
Crude oil for August delivery was at $72.66 a barrel, down 15 cents, in after-hours electronic trading on the New York Mercantile Exchange at 10:42 a.m. in Singapore. Yesterday, the contract rose 62 cents, or 0.9 percent, to $72.81, matching the settlement price on July 6, the highest since Aug. 15. Oil is down 2.1 percent from a year ago.
Highlights from Newspapers Goldman Plans $8 Billion Bid for Southern Water, Telegraph Says
Goldman Sachs Group Inc. is planning a 4 billion-pound ($8 billion) bid for Southern Water Plc, the Daily Telegraph reported, citing unidentified people familiar with the matter.
Warner Hires AGM's Mnuchin to Assess EMI Bid, Telegraph Reports
Warner Music Group Corp. has hired AGM Partners' Alan Mnuchin to advise on a possible 2.3 billion-pound bid for EMI Group Plc, the Daily Telegraph reported, citing people close to the matter.
New Star, Norwich Union Raise Property Fund Exit Fees, FT Says
New Star Asset Management Group Plc and Norwich Union Plc raised the costs of exiting their property funds, possibly because of net withdrawals over the past several days, the Financial Times reported, citing the companies.
UBS Starts a Drive to Improve its M&A Ranking in U.S., FT Says
UBS AG has started a push to boost its investment-banking operations in the U.S. and improve its ranking among advisers for mergers and acquisitions, the Financial Times reported, citing two UBS executives.
J.C. Flowers Looking to Sell German Insurance Unit, FTD Reports
J.C. Flowers & Co., a U.S. private equity firm, is looking to sell its German insurance unit Wueba, Financial Times Deutschland reported.
BHP Won't Buy Alcoa, Is in `No Rush' to Bid for Alcan, FT Says
BHP Billiton Ltd., the world's largest mining company, probably won't team up with a private equity firm and bid for Alcoa Inc., the Financial Times reported, citing a person close to the situation that the newspaper didn't identify.
Hutchison's Italian Unit, Wind to Sell Radio Towers, WSJ Says
Hutchison Whampoa Ltd.'s mobile-phone unit in Italy and Wind Telecomunicazioni SpA teamed up to sell towers used to send wireless phone signals for as much as 2 billion euros, the Wall Street Journal reported, citing Naguib Sawiris, Wind's controlling shareholder.
Myerson Wants New Blacks Leisure Chief, Financial Times Reports
Brian Myerson, an activist investor, wants a new chief executive officer at Blacks Leisure Group Plc, the Financial Times reported, without citing anyone.
source
Top Stories and Most Read on Bloomberg Asian Stocks Fall on Lower Metals Prices, U.S. Earnings Concern
Asian stocks fell for the first time in three days after metals prices slid and earnings reports in the U.S. suggested demand is cooling in the region's biggest export market.
The Morgan Stanley Capital International Asia-Pacific Index slid 0.7 percent to 157.58 at 10:28 a.m. in Tokyo, after rising to a record yesterday. All 10 industry groups fell.
Subprime Losses Drub Debt Securities as Credit Ratings Decline
On Wall Street, where the $800 billion market for mortgage securities backed by subprime loans is coming unhinged, traders are belatedly acknowledging what they see isn't what they get.
As delinquencies on home loans to people with poor or meager credit surged to a 10-year high this year, no one buying, selling or rating the bonds collateralized by these bad debts bothered to quantify the losses. Now the bubble is bursting and there is no agreement on how much money has vanished: $52 billion, according to an estimate from Zurich- based Credit Suisse Group earlier this week that followed a $90 billion assessment from Frankfurt-based Deutsche Bank AG.
Buyout Firms' Tax Rise Wouldn't Hurt Workers, Pension Funds Say
The private-equity and hedge-fund industries are fighting a proposed tax increase by arguing it would hurt workers' retirement. The pension funds whose interests they claim to be defending aren't buying it.
Lobbyists for firms such as Blackstone Group LP, the Carlyle Group and Apollo Management LP have joined with allied Republican lawmakers and groups such as the U.S. Chamber of Commerce to attempt to show that higher taxes on hedge-fund and private-equity managers would cut into the returns of pension funds and threaten the retirements of police officers, nurses and teachers.
RTL, Liberty Reject Copyright Agencies Bid to Settle EU Dispute
RTL Group SA, Deutsche Telekom AG, Liberty Global Inc. and two dozen competitors asked European Union regulators to reject an offer by national royalty-collection agencies to settle an antitrust case.
The agencies, which collect performance and broadcast fees on behalf of artists and composers, offered to drop some restrictions on the licenses they sell to address EU concerns they break competition rules. RTL, Europe's biggest broadcaster and a unit of Germany's Bertelsmann AG, has complained that the proposal is inadequate because key rights remain in the hands of the 27 separate national groups.
Brown to Set U.K. Legislative Agenda on Homes, Schools, Health
Gordon Brown, two weeks into his job as U.K. prime minister, today will set out his legislative agenda for the next year, focusing on housing, education and health.
In a statement to Parliament, Brown ``might cover'' how his government will encourage lenders to offer more 25-year fixed rate mortgages, his spokesman Michael Ellam said. Such a move may involve the Financial Services Authority and the Debt Management Office, he said. The statement is due at 12:30 p.m. London time.
Main Companies/Earnings
Adidas AG (ADS GY): The world's second-biggest sporting- goods maker expects to have a ``record year'' in 2008, Die Welt reported, citing Chief Executive Officer Herbert Hainer.
Ericsson AB (ERICB SS): Sony Ericsson Mobile Communications, the world's fourth-biggest mobile-phone maker, may say second-quarter net income was 383 million euros ($526 million), the average analyst estimate in an SME Direkt poll.
Givaudan SA (GIVN VX): The flavor and fragrance maker will find it ``difficult'' to maintain the level of sales growth it had in the first quarter through the whole year, Handelszeitung reported, citing Chief Executive Officer Gilles Andrier.
Investor AB (INVEB SS): The Swedish Wallenberg family's holding company is scheduled to present second-quarter results.
Kinepolis NV (KIN BB): Belgium's biggest movie-theater operator will release second-quarter ticket sales.
Royal Dutch Shell Plc (RDSA NA): Europe's largest oil company was cut to ``sell'' from ``neutral'' by analysts at Goldman Sachs Group Inc.
Tandberg ASA (TAA NO): The world's second-largest maker of videoconferencing equipment may say second-quarter net income gained 55 percent to $23.9 million, the average analyst estimate in a survey by Bloomberg News.
Main analyst upgrades/downgrades, estimate changes UNIFIED ENERGY CUT TO `HOLD' FROM `BUY' AT CITIGROUP CARREFOUR RAISED TO `HOLD' FROM `SELL' AT CITIGROUP ROCHE CUT TO `HOLD' FROM `BUY' AT CITIGROUP ACTIVISION CUT TO `NEUTRAL' FROM `OVERWEIGHT' AT JPMORGAN
European Markets
The FTSE 100 Index will drop 24 points to 6606, the DAX will fall 95 points to 7869, and the CAC 40 will decline 40 points to 5979, according to Cantor Index.
Yen Falls From Month High as Japanese Investors Sell Into Rally
The yen fell from a one-month high against the dollar on speculation Japanese investors took advantage of a 1.4 percent rally yesterday to sell the currency to invest in higher- yielding securities.
The yen traded at 121.70 per dollar at 12:36 p.m. in Tokyo from as high as 120.99 and from 121.74 late in New York yesterday. It was at 167.18 per euro from as high as 166.61.
U.S. Stocks Fall, Led by Banks, Retailers on Housing Slump Woes
Builders, banks and retailers sent the U.S. stock market tumbling for the first time in six days on increasing evidence the housing slump is depressing earnings.
The S&P 500 lost 21.73, or 1.4 percent, to 1510.12. The Dow Jones Industrial Average plunged 148.27, or 1.1 percent, to 13,501.70. The Nasdaq composite slid 30.86, or 1.2 percent, to 2639.16.
U.S. Notes Rise; Moody's Ratings Cuts Feed Demand for Safety
U.S. 10-year Treasury notes rose for a third day after Moody's Investors Service cut the ratings on $5.2 billion of bonds backed by subprime mortgages, feeding demand for the relative safety of government debt.
The yield on the benchmark 10-year note fell 2 basis points to 5.01 percent as of 10:54 a.m. in Singapore, according to bond broker Cantor Fitzgerald LP. The price of the 4 1/2 percent security due in May 2017 rose 1/8, or $1.25 per $1,000 face amount, to 96 2/32.
Crude Oil Is Little Changed After Rising on Gains in Gasoline
Crude oil was little changed in New York, after rising yesterday as gasoline prices climbed on speculation U.S. output of the fuel may slow due to unplanned refinery shutdowns.
Crude oil for August delivery was at $72.66 a barrel, down 15 cents, in after-hours electronic trading on the New York Mercantile Exchange at 10:42 a.m. in Singapore. Yesterday, the contract rose 62 cents, or 0.9 percent, to $72.81, matching the settlement price on July 6, the highest since Aug. 15. Oil is down 2.1 percent from a year ago.
Highlights from Newspapers Goldman Plans $8 Billion Bid for Southern Water, Telegraph Says
Goldman Sachs Group Inc. is planning a 4 billion-pound ($8 billion) bid for Southern Water Plc, the Daily Telegraph reported, citing unidentified people familiar with the matter.
Warner Hires AGM's Mnuchin to Assess EMI Bid, Telegraph Reports
Warner Music Group Corp. has hired AGM Partners' Alan Mnuchin to advise on a possible 2.3 billion-pound bid for EMI Group Plc, the Daily Telegraph reported, citing people close to the matter.
New Star, Norwich Union Raise Property Fund Exit Fees, FT Says
New Star Asset Management Group Plc and Norwich Union Plc raised the costs of exiting their property funds, possibly because of net withdrawals over the past several days, the Financial Times reported, citing the companies.
UBS Starts a Drive to Improve its M&A Ranking in U.S., FT Says
UBS AG has started a push to boost its investment-banking operations in the U.S. and improve its ranking among advisers for mergers and acquisitions, the Financial Times reported, citing two UBS executives.
J.C. Flowers Looking to Sell German Insurance Unit, FTD Reports
J.C. Flowers & Co., a U.S. private equity firm, is looking to sell its German insurance unit Wueba, Financial Times Deutschland reported.
BHP Won't Buy Alcoa, Is in `No Rush' to Bid for Alcan, FT Says
BHP Billiton Ltd., the world's largest mining company, probably won't team up with a private equity firm and bid for Alcoa Inc., the Financial Times reported, citing a person close to the situation that the newspaper didn't identify.
Hutchison's Italian Unit, Wind to Sell Radio Towers, WSJ Says
Hutchison Whampoa Ltd.'s mobile-phone unit in Italy and Wind Telecomunicazioni SpA teamed up to sell towers used to send wireless phone signals for as much as 2 billion euros, the Wall Street Journal reported, citing Naguib Sawiris, Wind's controlling shareholder.
Myerson Wants New Blacks Leisure Chief, Financial Times Reports
Brian Myerson, an activist investor, wants a new chief executive officer at Blacks Leisure Group Plc, the Financial Times reported, without citing anyone.
source
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