Equities finished higher on Monday despite an early sell off in light of disappointing US economic data. Boeing (BA: 61.86 -1.32 -2.09%) (+2.07%) posted decent gains after securing a number of sizeable orders at the Farnborough air show whilst IBM (IBM: 123.71 -6.08 -4.68%) led the DJIA higher ahead of their earnings. The economic calendar and trading volumes were light, stocks pared their initial losses and rallied into the close. Risk looked to be back on the table as the close approached but sentiment was briefly dampened after reports BP's (BP: 35.69 -0.06 -0.17%) (-4.74%) oil well was leaking from the top. However, BP then announced that scientists concluded the seabed seepage is naturally occurring. At the close; the S&P 500 closed up 0.60% at 1071.25 the DJIA closed up 0.56% at 10154.43 and the NASDAQ 100 closed up 0.88% at 1819.28.
UK
BP (BP: 35.69 -0.06 -0.17%) - Co. executive says co. to drill 80-100 new oil wells in Iraq's Rumaila 2010 and 2011. (Sources/AP/RTRS) - Co. plans to keep its Macondo oil well in Gulf of Mexico shut today after US government found that leaks at the site pose no threat. The escape of methane gas is inconsequential, and pressure wont need to reopen it and discharge more oil, National Incident Commander Thad Allen said yesterday. (RTRS)
- Co.'s negotiations to sell Alaskan oilfield assets to Apache Corporate of Texas are believed to have faltered during the past few days. (Daily Telegraph)
Xstrata (XTA.L: 935.9999 +17.7999 +1.94%) - Co. says held positive meeting with S. African mines ministry about safety directive. (RTRS)
Cable & Wireless - Co. says in the first quarter major programmes and lines of business performed broadly in line with plan, however forecasts now around the lower end of the range of expectations (RTRS)
Severn Trent - According to co.'s interim management statement trading in line with expectations. (Sources)
Companies paying Dividend: Man Group (USD 0.2480)
US
US Banks - Obama to sign Wall St. reform bill on Wednesday. (Fox Business)
IBM (IBM: 123.71 -6.08 -4.68%) - Q2 EPS USD 2.61 vs. Exp. USD 2.58, Q2 revenue USD 23.72bln vs. Exp. USD 24.17bln, Q2 net USD 3.39bln vs. Exp. USD 3.38bln. Co. says 2010 year EPS views raised to at least USD 11.25, had seen USD 11.20 vs. Exp. USD 11.28, Q2 gross profit margin was 45.6% and gross profit USD 10.81bln. Says Q2 pre-tax margin of 19.3% and services backlog USD 129bln. Co. says well positioned to support full year objectives. Co. sees FX impact USD 0.10-0.11/share in Q2, incl. hedging due to the fall of the EUR (RTRS/Sources)
Texas Instruments (TXN: 24.24 -1.31 -5.13%) - Q2 EPS USD 0.62 vs. Exp. USD 0.63, Q2 revenue USD 3.50bln vs. Exp. USD 3.52bln. Co. boosts forecast, sees Q3 EPS USD 0.64-0.74 vs. Exp. USD 0.65, sees Q3 revenue USD 3.55-3.85bln vs. Exp. USD 3.60bln and sees 2010 R&D expense USD 1.5bln. Co. sees 2010 depreciation USD 0.9bln and sees year capex USD 1.2bln, up from prior view of USD 0.9bln. (RTRS)
Goldman Sachs (GS: 144.00 -1.68 -1.15%) - Co. management shake-up expected over next year, says Fox Business' Gasparino. There has been some talk, Gasparino said, about CEO Blankfein either eventually leaving co. or giving up his chairman position. Co. COO and President Gary Cohn said he would like to resign if he could, but doesn't plan on leaving until the firm is finished dealing with several regulatory issues. A co. spokesman said 'Blankfein and Cohn aren't going anywhere' according to a previous report. (Fox Business)
Amazon (AMZN: 118.045 -1.895 -1.58%) - Amazon.com says Kindle sales accelerate each month in Q2. Says sold 180 e-books for every hardcover over past month, says sales growth rate tripled on new price of USD 189 and says sold 3 times as many Kindle's in H1 compared to H1 2009. (Sources)
AIG (AIG: 34.96 -0.43 -1.22%) - AIA, the Asian Life Insurance unit of co., is seeking backing from potential investors to cut ties with its US parent by listing more than half its equity in the Hong Kong market. (FT)
Europe
GERMANY
German Banks - EU Commission to decide on approval of bailout plans for Germany's BayernLB and HSH Nordbank in Sept. at earliest. Elsewhere, nationalised German lender Hypo Real Estate expected to fail EU-wide stress test. Germany's Bank bailout fund Soffin and German Financial Markets watchdog BAFIN declined to comment. (RTRS/Sources)
Allianz - Fitch revises co. rating outlook to stable from negative. (RTRS)
Volkswagen - Co. plans to launch all-electric vehicles in 2013 and expects these zero-emission vehicles to account for 3% of its sales by 2018. (RTRS)
FRANCE
BNP Paribas - Co. will study retail banking opportunities in Spain, according to General Manager of co.'s Spanish operations. (Cinco Dias)
EDF - Co. has no formal bids for UK power grids. (WSJ)
EADS - France confirms it will bring EUR 1.4bln in repayable loans for A350 XWB financing, according to French Transport Minister. Co. says Germany to bring EUR 1.2bln to A350, Spain EUR 33mln and UK GBP 340mln. French Transport minister says hopes EU will appeal WTO report conclusions on state aid.
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