General Motors - Co. is expected to kickstart its return to the stock market this week by registering its intention to float as well as reporting is Q2 earnings. (Sunday Express)
UK
UK's biggest companies are carrying GBP 73bln pension deficit. (Telegraph) The total pension deficit of the FTSE 100 was an estimated GBP 73bln at the end of June, according to research by Pension Capital Strategies (PCS), a division of insurance broker Jardine Lloyd Thompson. That is a GBP 17bln improvement on a year earlier. However, "there has been a noticeable growth in the number of FTSE 100 companies where the pension scheme now represents a material risk to the business," PCS said. BT, British Airways and Invensys all have pension liabilities which are more than double their market value, at GBP 43bln, GBP 16.8bln and GBP 5.4bln respectively, PCS data shows. Only five companies in the FTSE 100 disclosed a pension surplus in their most recent accounts, the research revealed.
UK Banks - Vince Cable, the Secretary of State for Business, Innovation and Skills has warned that Britain's banking sector is still 'structurally dangerous' despite the country's five biggest banks reporting bumper GBP 15.5bln, half year profits and increased gross lending last week. Elsewhere, he said that a sale of state-owned bank shares would not happen until 2012 at the earliest. (The Independent)
BP (BP: 40.11 0.00 0.00%) - The first of two co. relief wells is expected to reach its stricken Gulf of Mexico well within days. Co. says August 15th is the current estimate of the most likely date by which the first relief well will intercept the MC252. Once the relief well arrives the damaged well will be injected with mud and cement from below, a process known as bottom kill. This would mean the well is sealed at both ends, eliminating the risk of further leaks. (Sunday Express) Latest reports are that a test on the cementing operation needed to plug its troubled well in the Gulf of Mexico was successful. (WSJ) - Co. plans to finish drilling into the base of the Macondo well in the Gulf of Mexico this week so it can pump in mud and cement to permanently plug the source of the world's biggest accidental oil spill. (Sources)
- Co. says cost of the response to date amounts to approximately USD 6.1bln. (RTRS)
GlaxoSmithKiline (GSK: 37.40 0.00 0.00%) - Co.'s Chief Executive Office Andrew Witty says the environment for the pharmaceutical industry has become significantly more difficult and regulation more conservative. (Handelsblatt)
Vodafone - Essar Group, the co's partner in its Indian JV is understood to have met bankers in London and Mumbai to prepare for a multibillion USD floatation of its stake in the mobile phone business. (Observer)
HSBC (HBC: 53.13 0.00 0.00%) - Co. could seek a stock market listing in India as part of an increased focus on Asia, which it believes, will drive global growth and provide the bank with bigger profits. (Sunday Express)
RBS (RBS: 15.52 0.00 0.00%)/ Lloyds (LYG: 4.80 0.00 0.00%) - Cos. have been told by the Bank of England that they could be penalised by the European Union if the special funding program begun in the financial crisis were to be extended. (The Times)
RBS - Kohlberg Kravis Roberts has taken a leading role in providing GBP 300mln of mezzanine financing for the GBP 2bln buy-out of co.'s payment processing arm by a consortium of rival US private equity groups. (FT)
Astrazeneca (AZN: 53.41 0.00 0.00%) - Co. announces agreements in principle in Seroquel product liability litigation with attorney representing approximately 17,500 product liability claimants in the US for approximately USD 198mln. Co. says any provision would be disregarded in calculating Core earnings and, as such, the co.'s core earnings per share guidance for 2010 remains unchanged at USD 6.35 - USD 6.65. (RTRS)
Tesco - Co. is preparing to raise up to GBP 2bln from the bond market as it gears up for an assault on the UK financial services sector with a massive expansion of its fledging banking operation. (Sunday Express)
Prudential (PRU: 59.23 0.00 0.00%) - Co.'s shareholders could pocket a 5% increase in their dividend payout on Thursday when co. reports its half-year results, according to JP Morgan analysts. Co. already reported a 26% rise in Q1 sales to GBP 807mln and new business profit up 27% to GBP 427mln. (The Independent) In other news, co. directors are this week expected to rebuff calls for a strategic revamp in the wake of the co's failed attempt to buy an Asian rival. Co. will announce a bumper set of interim results on Thursday and an increase in the group's dividend. (Sunday Times)
BAE Systems - The government has thrown its weight behind co. as the co. sets its sights on a GBP 10bln contract to supply India with Eurofighters Typhoons. (Sunday Express)
Anglo American/Lonmin - Co.'s are battling the South African government over its granting of mining rights to small, politically connected companies, amid concerns about rising investment risk in the country. (FT)
Old Mutual - Co. has sold its US life business to hedge fund Harbinger Capital for GBP 219mln in a deal that will help the co. pay down debt, as it jettisons businesses that hurt its financial position during the crisis. (FT)
Inmersat - Co. will invest USD 1.2bln in a new fleet of next generation satellites. (FT)
International Power - More than 360,000 small shareholders in co. look set for a windfall after it announces a GBP 14bln merger with French energy giant GDF Suez this week. The deal is expected to be announced on Tuesday. (The Mail on Sunday)
US
Despite staging a late reversal in the session equities finished lower, after the NFP failed to live up to the street estimates. The reversal saw the S&P 500 index, move above and more importantly close above its 200 DMA at 1115. The NASDAQ 100 outperformed its peers being lead by Research in Motion (%) after co. was said to be in talks with Saudi carriers to avoid a Blackberry ban. Given the risk aversion tone, defensive stocks outperformed throughout the session, with the Health Care sector finishing in solitude in positive territory in the S&P 500. Finally, at the closing bell DJIA closed down 0.20% at 10654, S&P 500 closed down 0.37% at 1122 and NASDAQ 100 closed down 0.11% at 1903.
Hewlett-Packard (HPQ: 42.33 0.00 0.00%) - Co. boosts forecast, sees Q3 EPS USD 1.08 vs. Exp. USD 1.07 and sees Q3 revenue USD 30.7bln vs. Exp. USD 29.99bln. Says Q3 hurt USD 0.02/share by charges on DOJ settlement and sees YR revenue USD 125.3-125.5bln. Co. sees Q4 adjusted EPS USD 1.25-1.27 and sees Q4 revenue about USD 32.5-32.7bln vs. Exp. USD 32.67bln. Elsewhere, Co.'s CEO resigned after a sexual harassment claim, co.'s investigation determined there was no violation of co.'s sexual harassment policy, however did determine that it found violations of co.'s standard of business conduct. (RTRS)
Bank of America (BAC: 13.63 0.00 0.00%) - Co. weighs sales and other options for proprietary trading desk. Sources say move is driven by Volcker rule and also says Goldman Sachs and Morgan Stanley also weigh changes to proprietary trading units. (WSJ)
JP Morgan (JPM: 39.17 0.00 0.00%) - According SEC, co. sees reduction in Tier-1 common ratio of 100-200BPS from Basel Committee capital proposals. (RTRS)
3M (MMM: 87.11 0.00 0.00%) - Co. announces positive results from randomized study of Zyclara. (theflyonthewall.com)
Genzyme (GENZ: 67.83 0.00 0.00%) - Market talk that Sanofi-Aventis will increase its USD 69 per share bid for co. hit the wires on late Friday. (Sources)
AIG (AIG: 40.19 0.00 0.00%) - Co. expects to clinch a sale of its consumer finance unit in the next few weeks and is looking to raise some USD 4bln in debt to reduce its reliance on federal aid, according to co.'s chief executive. (FT) In other news, co. said controls on Wall Street signed into law by President Barack Obama may force out the insurer to raise capital, undergo stress tests and limit bets on private equity funds (Sources)
Boeing (BA: 68.62 0.00 0.00%) - Saudi Arabia plans to buy co. F-15 fighter jets in a 10-year deal worth USD 30bln that will exclude some of the advanced weapons systems incorporated in the versions flown by the US Air Force. (WSJ)
Research in Motion (RIMM: 55.93 0.00 0.00%) - Co. and the Saudi Arabian telecom regulator reached an agreement to continue services in the Arab world's largest economy after agreeing to allow the regulator to monitor co.'s services. (Al-Arabiya) However, this will mean that co. will have to place a Blackberry server inside Saudi Arabia. (The Independent) Also, according to other reports, Kuwait is not planning to stop Blackberry services in the country. (Al-Rai)
Apple (NASDAQ:AAPL) - Mark Papermaster, co.'s senior vice president for iPhone engineering, is leaving the company, signalling a change in leadership after criticism erupted over the iPhone 4's unique antenna. (WSJ)
Visa (NYSE:V) - Co. may rise as growth in credit and debit-card usage offsets tighter regulation on fees. (Barron's)
Target (NYSE:TGT) - Co. may rise as its focus on higher-margin goods and cost-control efforts to boost earnings. (Barrons)
Europe
Commerzbank - Co. will have to pay interest on state aid it received because the lender will make a profit this year. (Handelsblatt)
SAP (NYSE:SAP) - Co. CFO say no price limit for acquisitions but focusing on organic growth. (Boersen-Zeitung)
Allianz - According to reports, co. could use its capital surplus for a dividend increase, however it will also need more capital for the upcoming "Solvency 2″ equity rules. Also large takeovers are unlikely until capital Solvency 2 rules are clear. (Boersen-Zeitung/FAZ)
Sanofi-Aventis - Market talk that co. will increase its USD 69 per share bid for Genzyme hit the wires on late Friday. (Sources)
Insurers - Low interest rates are hurting the insurance industry and may be causing unseen problems for some companies, the chief executive of Munich Re has warned as he urged central banks to return to a more orthodox rates policy as soon as possible. (FT)
Nokia (NYSE:NOK) - Co. is launching a new range of advanced smartphones as part of a strategy to claw back market share from rivals such as Apple. (Sunday Express)
Generali - Co. chairman eyes strong expansion in South America, but need time, capital. (RTRS)
Swisscom - According to reports co. is not planning sale of Fastweb. (Sonntagszeitung)
Swatch Group - Co. CEO would not rule out acquisitions. (Finanz und Wirtshaft)
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