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Apr 20, 2012

ADVFN III World Daily Markets Bulletin




ADVFN III World Daily Markets Bulletin  
Daily world financial news



US Market Reports


Stocks Moving Mostly Higher In Early Trading

After moving mostly lower over the course of the previous session, stocks have moved back to the upside in early trading on Friday. The major averages have all climbed into positive territory, although buying interest seems somewhat subdued.

The major averages have pulled back off their highs for the young session in recent trading but remain in positive territory. The Dow is up 72.96 points or 0.6 percent at 13,037.06, the Nasdaq is up 10.01 points or 0.3 percent at 3,017.57 and the S&P 500 is up 5.43 points or 0.4 percent at 1,382.35.

The early strength on Wall Street is largely due to a positive reaction to quarterly results from big-name companies such as Microsoft (MSFT), General Electric (GE), and McDonald's (MCD).

After the close of trading on Thursday, Microsoft reported fiscal third quarter earnings of $0.60 per share, better than the consensus estimate of $0.58 per share. Revenues rose 6 percent to $17.4 billion, exceeding the $17.2 billion consensus estimate.

While GE reported first quarter net earnings that fell year-over-year, the diversified conglomerate reported adjusted earnings of $0.34 per share, a penny above analyst estimates. Revenues fell 8 percent year-over-year to $35.2 billion but also came in above expectations.

Fast food giant McDonald's reported first quarter earnings that rose to $1.23 per share from $1.15 per share in the year-ago quarter, in line with estimates. The company also reported sales growth that matched the expectations of economists.

Honeywell (HON), Advanced Micro Devices (AMD), and Capital One Financial (COF) are among the other well-known companies that reported better than expected quarterly results.

The upbeat earnings news has generated some positive sentiment, although trading activity is relatively subdued amid a lack of major U.S. economic data and lingering uncertainty about the financial situation in Europe.

Nonetheless, software stocks are seeing considerable strength on the heels of the news from Microsoft, with the Dow Jones Software Index up by 2 percent. Shares of Microsoft have jumped by 4.5 percent.

Considerable strength is also visible among oil service stocks, as reflected by the 1.8 percent gain being posted by the the Philadelphia Oil Service Index. Schlumberger (SLB) is helping to lead the sector higher after reporting strong first quarter earnings growth.

Meanwhile, semiconductor stocks are seeing early weakness, with SanDisk (SNDK) and Altera (ALTR) posting notable losses after reporting disappointing first quarter results.


In overseas trading, stock markets across the Asia-Pacific region turned in another mixed performance on Friday. While Japan's Nikkei 225 Index ended the day down by 0.3 percent, Hong Kong's Hang Seng Index edged up by 0.1 percent

Meanwhile, the major European markets have all moved to the upside on the day. The German DAX Index is up by 1 percent, while the U.K.'s FTSE 100 Index is up by 0.4 percent and the French CAC 40 Index is up by 0.1 percent.

In the bond market, treasuries are giving back some ground after moving higher in the two previous sessions. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is up by 3.7 basis points at 1.989 percent.

Canadian Market Report


CADUSD Oil Gold Allbanc

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Canadian Pacific Railway Q1 Results Top Estimates
Canadian Pacific Railway Ltd. reported Friday a sharp increase in first-quarter profit, reflecting an 18 percent growth in freight revenues. Both earnings per share and revenues topped analysts' expectations.

Citing the continued successful execution of its "Multi-Year Plan" as reason for the enhanced financial results, the company said it is confident that it can continue to deliver improvements in its operating metrics and financial performance and further growth in shareholder value.

Fred Green, president and chief executive officer of the company said, "We have improved operating momentum, we are delivering excellent service and we have a stronger, more resilient rail network. This quarter, we generated an 18% year-over-year increase in freight revenues."

In the first quarter, the North American transcontinental railway company's net income more than quadrupled to C$142 million or C$0.82 per share from C$34 million or C$0.20 per share reported a year ago.

On average, 15 analysts polled by Thomson Reuters expected the company to earn C$0.80 per share. Analysts' estimates typically exclude special items.

Total revenues for the quarter grew to C$1.38 billion from C$1.16 billion in the prior-year quarter, which also exceeded analysts' estimate of C$1.33 billion. Freight revenues were C$1.34 billion.

Average fuel price increased 12 percent to $3.50 per U.S. Gallon.

Operating ratio improved 1,050 basis points to 80.1 percent. "The CP Board and management team is confident in the Company's Plan and its goal of delivering a 70% to 72% operating ratio for 2014, and an operating ratio of between 68.5% to 70.5% for 2016," Green added.

During the first quarter, the company issued $71 million 4.28 percent senior secured notes due in 2027 for net proceeds of $71 million.

CP closed Thursday' regular trading at $76.45 on the NYSE. On the Toronto Stock Exchange, the stock ended at C$76.03.



European Market Report



FTSE 100 Euronext Dax perf CAC 40

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European Markets In Positive Territory


The European markets are in positive territory in afternoon trading Friday, after German business sentiment showed a surprise improvement. The Asian markets ended mostly up and the U.S. index futures point to a higher open.

Sentiment was also influenced by rumors suggesting that the Chinese central bank may announce a reserve requirement ratio reduction.

The G20 finance ministers and central bank governors are meeting in Washington on the sidelines of the semi-annual spring meetings of the World Bank and the International Monetary Fund.

The Euro Stoxx 50 index of eurozone bluechip stocks is climbing 1.18 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, is gaining 0.68 percent.

The German DAX is rising 0.92 percent and the French CAC 40 is advancing 0.55 percent. The UK's FTSE 100 is gaining 0.21 percent and Switzerland's SMI is gaining 0.28 percent.

In Frankfurt, Deutsche Bank is rising 1.6 percent and Commerzbank is rising 1 percent. Merck, which will abstain from major takeovers until the end of next year to focus on cost reduction and job cuts, is climbing 2.1 percent.

Hochtief is declining 2.4 percent. Berenberg initiated the stock with a "Hold" rating. GSW Immobilien is declining about 1 percent. HSBC cut the stock to "Neutral" from "Overweight."

In Paris, Societe Generale, BNP Paribas and Credit Agricole are climbing between 4.5 percent and 3.7 percent. Suez Environnement's first-quarter revenues grew 2.2 percent, amid a difficult economic environment in Europe. The stock is gaining 1.4 percent.

Schneider Electric is losing 0.2 percent. The company reported more than 9 percent growth in first-quarter sales.

In London, Barclays is gaining 1.7 percent and Lloyds is climbing 2.9 percent. IMI is rising 1.6 percent after reporting first-half results in line with expectations.

Man Group is climbing 4 percent.

Gambling company William Hill said first-quarter sales and operating profit increased from last year. The stock is up 3 percent.

SuperGroup shares are plunging nearly 38 percent after the company issued yet another profit warning. Nestlé confirmed its 2012 sales growth forecast after reporting a 5.6 percent increase in first-quarter sales. The stock is down 0.3 percent in Zurich.

AkzoNobel is up 0.9 percent in Amsterdam. Commercebank reduced the stock to "Hold" from "Reduce." Novo Nordisk is down 1.2 percent in Copenhagen.

In economic news, Germany's producer price inflation accelerated unexpectedly in March on higher energy prices, data from the Federal Statistical Office showed today. Producer price inflation rose to 3.3 percent on a yearly basis from 3.2 percent in February.

German business sentiment improved unexpectedly in April, the Munich-based Ifo institute reportedly said. The business climate index rose to 109.9 in April from 109.8 in March. Economists were forecasting the reading to drop to 109.5.

U.K. retail sales logged a better-than-expected expansion in March, data from the Office for National Statistics showed Friday.

Asia Market Reports


Asian Shares End Mostly Lower After US Data

Most Asian shares ended lower on Friday, as weak U.S. economic data and growing concerns over Spanish debt financing despite a relatively successful bond auction yesterday kept the overall mood cautious ahead of the weekend.

Investors looked ahead to the G20 and IMF meet in Washington at the weekend after IMF managing director Christine Lagarde said that supplying more capital directly to European banks could help ease the debt crisis. Crude and copper futures were higher and the euro rose against the dollar after Lagarde said in an interview with Bloomberg Television that Spain is not in need of the fund's support.

Tokyo stocks lost ground, as a slew of earnings results due next week and uncertainty ahead of the Bank of Japan's April 27 policy board meeting rendered investor mood cautious. Both the Nikkei average and the broader Topix index shed around 0.3 percent each. Canon slid half a percent and Fanuc lost 0.8 percent ahead of their earnings results on Wednesday.

Automakers such as Honda Motor and Toyota lost 1-2 percent and tech majors like Advantest, Tokyo Electron and Fujifilm Holdings fell between 0.3 percent and 2.3 percent, while Olympus soared 6.4 percent on news of shareholders approving a new board.

Toshibha lost 2.4 percent after its U.S. memory-making partner SanDisk posted quarterly sales and profit that fell short of street estimates. JFE Holdings tumbled 3.3 percent on a Nikkei report that it plans to invest Y1 trillion in the next three years ending March 2015.

China's Shanghai Composite index rallied 1.2 percent on renewed hopes of fiscal and monetary stimulus, while Hong Kong's Hang Seng index ended marginally higher.

Australian shares posted modest gains to finish at a fresh eight-month high, as investors raised bets on a cut in official interest rates when the RBA board meets on May 1. Both the benchmark S&P/ASX 200 and the broader All Ordinaries index edged up around 0.1 percent each. Major miners BHP Billiton and Rio Tinto ended on a flat note, while ANZ, Commonwealth and Westpac rose between 0.3 percent and 0.6 percent.

Oil Search climbed 5.7 percent, a day after its LNG Project partner ExxonMobil discovered more gas in Papua New Guinea's Western Province. Boral fell 2.9 percent after the building materials producer cut its annual profit guidance, citing rainy weather in eastern Australia and weak residential housing activity. James Hardie shares lost 1.1 percent.

South Korea's Kospi average fell 1.3 percent to a one-week low, as disappointing U.S. labor market and housing data weighed on large-cap bluechip shares. LG Chem plunged 9.2 percent as the nation's biggest chemicals maker posted a worse-than-estimated 42 percent decline in first-quarter net profit, hurt by rising raw material costs and low product prices amid waning Chinese demand.

Shares of POSCO ended down 0.4 percent. After the market closed, the steelmaker, backed by billionaire investor Warren Buffett, reported a 42 percent drop in its first-quarter earnings, citing high raw material costs and sluggish global demand.

New Zealand shares fell, led by Cavalier after the carpet maker said it will likely post a full-year loss due to business restructuring. Shares of the company plunged 11 percent to a two-year low, while the benchmark NZX-50 index dropped 0.3 percent. Heartland New Zealand, the would-be bank, tumbled 5 percent, Fletcher Building, the nation's largest construction company, fell 2.2 percent and utility Contact Energy eased 0.4 percent, but SkyCity Entertainment Group rose 2.1 percent and PGG Wrightson climbed 5.3 percent.

India's benchmark Sensex was last trading down 1.1 percent as investors took profits following four sessions of gains. Elsewhere, Malaysia's KLSE Composite eased 0.3 percent, Singapore's Straights Times index was down 0.4 percent and the Taiwan Weighted average fell 1.5 percent, while Indonesia's Jakarta Composite index rose 0.4 percent.



Morning Market Briefing,


Commentary April 20, 2012

Stocks are likely to move back to the upside in early trading on Friday after moving mostly lower over the course of the previous session. The major index futures are currently pointing to a notably higher open for the markets, with the Dow futures up by 74 points. (Apr 20, 2012) Full Article


Economic News
Loan demand from firms, local governments and households increased over the first three months of 2012, a senior loan officer opinion survey conducted by the Bank of Japan showed Friday. (Apr 20, 2012) Full Article
Germany's producer price inflation accelerated unexpectedly in March on higher energy prices, data from the Federal Statistical Office showed Friday. (Apr 20, 2012) Full Article
German business sentiment improved unexpectedly in April on rising optimism among manufacturers, shrugging of concerns about the debt crisis. Marking the sixth consecutive monthly rise, business confidence rose slightly to a 9-month high of 109.9 in April from 109.8 in March, survey results released by the Munich-based Ifo institute showed Friday. According to Ifo, the current conditions index edged up unexpectedly to 117.5 from 117.4. (Apr 20, 2012) Full Article
U.K. retail sales logged a better-than-expected expansion in March, boosting hopes of a good economic growth number in the first quarter. (Apr 20, 2012) Full Article
Earnings News
Thursday, Microsoft Corp.'s (MSFT) third-quarter profit edged down slightly, but came in above expectaions, led by revenue growth across most of its businesses, except entertainment division. (Apr 20, 2012) Full Article
Advanced Micro Devices Inc. (AMD) on Thursday posted a loss for the first quarter, hurt by costs tied to supply agreement with Globalfoundries. Adjusted earnings grew from last year and beat analysts' forecast. (Apr 20, 2012) Full Article
SanDisk Corp. (SNDK) on Thursday reported lower-than-expected results for the first quarter, due to lower pricing and weak demand. The chip maker said it expects similar trends in the second quarter as well. (Apr 20, 2012) Full Article
Capital One Financial Corp. (COF) reported Thursday a 37 percent increase in first-quarter profit, spurred by a gain from acquisition of ING Direct coupled with higher consumer spending. (Apr 20, 2012) Full Article
Chubb Corp.(CB) Thursday reported a marginal decline in profit for the first quarter, reflecting weak investment gain from its property and casualty unit. Adjusted earnings for the period increased and topped the consensus. (Apr 20, 2012) Full Article
Schlumberger Ltd. (SLB) reported Friday a significant rise in first-quarter profit, aided by global exploration and higher deepwater activity. Both adjusted earnings and revenue surpassed the analysts' view. (Apr 20, 2012) Full Article
Friday, Kimberly-Clark Corp.'s (KMB) first-quarter profit rose sharply, beating consensus, driven by higher net selling prices and sales volumes. The consumer goods company confirmed its earnings outlook for fiscal 2012. (Apr 20, 2012) Full Article
Fast food giant McDonald's Corp. (MCD) posted higher earnings for its first quarter, in line with analysts’ view, as higher comparable sales benefited from one additional day due to leap year, ongoing popularity of classic core favorites, menu innovations, reimaged restaurants and favorable weather. (Apr 20, 2012) Full Article
General Electric Co. (GE) on Friday reported lower profit for the first quarter, as revenue declined on absence of a contribution from NBC Universal. Operating earnings inched up and beat the street view. (Apr 20, 2012) Full Article
Diversified conglomerate Honeywell International Inc. (HON) reported higher first-quarter profit, surpassing the Street view. The quarterly results were helped by the growth in U.S. and its key high-growth regions, which more than offsett softness in Europe. Further, the company boosted its 2012 proforma earnings view, while updating its sales forecast. (Apr 20, 2012) Full Article

Todays WS Events
American Electric Power Q1 12 Earnings Conference Call At 9:00 AM ET
American Electric Power. (AEP) will host a conference call at 9:00 AM ET April 20, 2012, to discuss its Q1 12 earnings results. To access the live webcast, log on at http://www.aep.com/go/webcasts (Apr 20, 2012)
General Electric Q1 12 Earnings Conference Call At 8:30 AM ET
General Electric (GE) will host a conference call at 8:30 AM ET on April 20, 2012 to discuss Q1 12 Earnings results. To access the webcast, visit http://www.ge.com/investors/events/event_id04202012.html (Apr 20, 2012) 
Honeywell International Q1 12 Earnings Conference Call At 9:30 AM ET
Honeywell. (HON) will host a conference call at 9:30 AM ET on April 20, 2012, to discuss its Q1 12 earnings results. To access the live webcast, log on at http://www.honeywell.com/investor A call can be accessed by dialing (631) 291-4830. For replay a call, dial (404) 537-3406. with access code 65469116. (Apr 20, 2012) 
Kellogg Company To Present At Annual Meeting ; Webcast At 1:00 PM ET
Kellogg Company. (K) CEO, John Bryant will present at the 2012 Annual Meeting. The event is scheduled to begin at 1:00 PM ET on April 20, 2012. To access the live webcast, log on at http://investor.kelloggs.com (Apr 20, 2012) 
Kimberly-Clark Q1 12 Earnings Conference Call At 10:00 AM ET
Kimberly-Clark Corp. (KMB) will host a conference call at 10:00 AM ET on April 20, 2012, to discuss Q1 12 earnings results. To access the webcast, log on to www.kimberly-clark.com (Apr 20, 2012) 
McDonald's Q1 12 Earnings Conference Call At 10:00 AM ET
McDonald's Corp. (MCD) will host a conference call at 10:00 AM ET on April 20, 2012 to discuss its Q1 12 earnings results. To access the live webcast, log on at https://mcdonalds.webcasts.com/starthere.jsp?ei=1005143 (Apr 20, 2012) 
Schlumberger Q1 12 Earnings Conference Call At 9:00 AM ET
Schlumberger Ltd. (SLB) will host a conference call at 9:00 AM ET on April 20, 2012 to discuss its Q1 12 earnings results. To access the live webcast, log on at www.slb.com/irwebcast To hear the live call, dial + 1-800-230-1085 (US) or +1-612-288-0337 (International). A replay of the call can be heard by dialing +1-800-475-6701 (US) or +1-320-365-3844 (International) with access code 239412. (Apr 20, 2012)

DealBooK | DealB%K Today's Top Headline's: Dewey & LeBoeuf Considers Prepackaged Bankruptcy



Friday, April 20, 2012
TODAY'S TOP HEADLINES
TOP STORIES
Dewey & LeBoeuf Considers Prepackaged Bankruptcy Dewey & LeBoeuf is contemplating a prearranged bankruptcy filing, in which the ailing law firm would reach an agreement with its creditors over a reorganization plan while simultaneously combining with another firm, according to a person with direct knowledge of the plan who requested anonymity because he was not authorized to discuss it publicly.

Such a filing, called "prepackaged" bankruptcy, tends to be shorter in duration than a traditional Chapter 11 bankruptcy filing and could spare the firm time and potential legal headaches. The move could also help the firm avoid a painful liquidation and dissolution.
Threat of Credit Downgrade Persists for Morgan Stanley
Threat of Credit Downgrade Persists for Morgan Stanley Morgan Stanley's rebuilding efforts are starting to take hold, as it posted one of its strongest quarters since the financial crisis. The bank showed healthy gains in core areas like wealth management and equity sales. Bond trading - the great profit machine on Wall Street - also kicked into high gear. In all, first-quarter profit surged 27 percent to $1.4 billion, excluding one-time accounting charges.

But a cloud still looms over the bank: the threat of a credit rating downgrade that could hurt its huge derivatives business.

The group, which facilitates trading in the complex securities, may lose business and have to come up with billions of extra dollars if Morgan Stanley's credit rating is cut.
DEAL NOTES
House Rejects 'Buffett Rule' in Favor of a Tax Cut The one-year tax cut for businesses with fewer than 500 employees, backed by Republicans in the House, is likely to encounter obstacles in the Senate, The New York Times reports.
Giving Pledge Attracts More Participants The families that promised to use most of their wealth for philanthropy included William A. Ackman and his wife, Karen, Bloomberg News reports.
Economic Outlook Darkens In the words of Christine Lagarde, managing director of the International Monetary Fund, there is a "light recovery blowing in a spring wind" with "dark clouds on the horizon," The New York Times reports.
Europe's Troubles Tarnish its Global Standing "The failure of European leaders to convince the rest of the world that they have a grip on the crisis is more than just embarrassing, some policy makers said," The New York Times reports. "It may also give them less weight in debates on other issues and hasten the shift of power away from developed countries and toward cash-rich and fast-growing emerging nations, like China, India and Brazil."
MERGERS & ACQUISITIONS »
CVC Is Said to Be Near Deal to Buy AlixPartners CVC Capital Partners is nearing a deal to buy AlixPartners, the consulting firm known for its restructuring work, from current owner Hellman & Friedman, for more than $1 billion, people briefed on the matter said.
American Airlines Unions Said to Support a Merger The three main unions of the bankrupt airline are saying privately that they would be better served in a combination with US Airways, The Wall Street Journal reports, citing unidentified people familiar with the matter.
A Facebook Acquisition That Wasn't Facebook made an offer for AOL's patent portfolio but lost to Microsoft's nearly $1.1 billion bid, two unidentified people with knowledge of the matter told Bloomberg News.
Vodafone Gets More Time for a Cable & Wireless Offer The deadline extension for Vodafone, until noon on April 23, came after Tata Communications walked away from a potential bid for Cable & Wireless Worldwide, The Financial Times reports.
British Airways' Parent Completes BMI Deal IAG, the parent of British Airways and Iberia, outlined plans to integrate the divisions of British Midland International, which was sold by Lufthansa, into its business, Reuters reports.
Qatar Wealth Fund Buys Tiffany Stake With a 5.2 percent stake, the Qatar Investment Authority is now the largest shareholder in Tiffany & Company, The Financial Times reports.
DBS Plans to Retain the Danamon Brand The decision by Singapore's DBS Group Holdings comes amid concern that the identity of Indonesian banks like Danamon could be compromised in foreign deals, Bloomberg News reports.
INVESTMENT BANKING »
Wall Street Receives Volcker Rule Clarity The guidance, delivered by the Federal Reserve and other financial regulators, clarified that banks have two years to fully comply with the Volcker Rule, which regulators have yet to finalize.
Gene Sykes Named to Goldman's Management Committee Gene Sykes, who specializes in technology, media and telecommunications companies as well as health care firms, is one of Goldman's best-known bankers.
Bank of America, Focusing Less on Retail, Leans on Trading for Profit Bank of America's better-than-expected operating results for the first quarter underscored how dependent on Wall Street the company has become.
The Fog of Bank Accounting Adjustments The unusual prominence of these adjustments in first-quarter releases from Bank of America, Citigroup and Morgan Stanley deserves scrutiny.
Bond Trading Bolsters Earnings Wall Street firms had their best quarter for trading fixed income in two years, The Financial Times reports.
Deutsche Bank Said to Weigh a Share Offering Executives of the German lender are debating a plan to raise up to $3.9 billion in capital through a sale of stock, The Wall Street Journal reports, citing unidentified people familiar with the matter.
On Twitter, Krawcheck Finds a Voice Sallie L. Krawcheck, who previously led Bank of America's wealth management division, has been posting messages from a personal Twitter account and has amassed more than 2,000 followers in recent weeks.
Capital One Profit Exceeds Expectations The bank said first-quarter profit rose 37 percent to $1.4 billion, including an accounting gain related to the purchase of a division of ING, Bloomberg News reports.
Goldman Strategist Prefers Stocks to Bonds "You need to go back to the late 1950s to see a situation which equities were priced as attractively as they are now relative to bonds," Abby Joseph Cohen of Goldman Sachs told Bloomberg Radio.
 
PRIVATE EQUITY »
TPG Capital Declines to Raise Offer for GlobeOp The decision means SS&C Technologies Holdings, a financial software company, is the higher bidder for GlobeOp Financial Services, a British hedge fund services firm, Bloomberg News reports.
Private Equity Warms to Mortgage Market A deal in Europe underscores how complicated restructurings involving mortgage securities are attracting private equity buyers, The Financial Times reports.
Vornado Acknowledges a Downside of Being Big The size of Vornado Realty Trust made the company "reluctant to really jump into the game" when property prices were falling in 2008 and 2009, said Steven Roth, the chairman, according to Bloomberg News.
Bank Backed by JC Flowers Charts Growth Path One Savings Bank, a British lender that was created last year after an investment by the private equity firm JC Flowers, could make acquisitions as it looks to double its assets, Reuters reports.
HEDGE FUNDS »
Hedge Funds Grow to Record Level The industry's assets reached $2.13 trillion by the end of the first quarter, more than ever before, according to Hedge Fund Research. Higher returns, rather than an inflow of new money, drove the growth, The Wall Street Journal reports.
The Children's Investment Fund Wages Battle With Coal India The Children's Investment Fund, a minority shareholder, has threatened to sue unless the government-owned company makes decisions that consider minority shareholders' interests.
Ackman Brings a Culture Clash to Canada William A. Ackman, the hedge fund manager who is waging a proxy fight against the Canadian Pacific Railway, employs tactics that have rankled Canadian boards, The Wall Street Journal writes.
Fortress Goes to Court Over Life Insurance Deals The Fortress Investment Group, which invested in repurchased life insurance policies, is fighting a challenge by the Phoenix Companies, an insurer that says some of the policies shouldn't have been written in the first place, The Wall Street Journal reports.
Judge Orders Hedge Fund to Shut Down A Fletcher Asset Management hedge fund was declared insolvent and ordered to liquidate after three pension funds said they were unable to withdraw their money, The Wall Street Journal reports.
I.P.O./OFFERINGS »
Haitong Raises $1.7 Billion in Hong Kong Share Sale The Chinese brokerage firm Haitong Securities has raised $1.7 billion through the sale of shares in Hong Kong, the largest public offering in the world so far this year.
Splunk Soars on Trading Debut The software firm went public on Thursday with a $229.5 million offering priced at $17 a share. Shares closed at $35.48 on its first day, valuing the company at $3.28 billion.
More Oversight Coming for Hong Kong I.P.O.'s? Regulators in Hong Kong are considering new guidelines for banks that help companies go public, The Wall Street Journal reports.
Hong Kong Exchange Charts an Expansion Into Yuan Trading Hong Kong Exchanges and Clearing, the holding company for the Hong Kong stock exchange, plans to allow investors to trade China's currency against the dollar, but the plan requires regulatory approval, The Wall Street Journal reports.
VENTURE CAPITAL »
Twitter Backs Open-Source Foundation Twitter announced on Thursday that it would sponsor the Apache Software Foundation, which supports open-source software projects.
Foursquare Teams Up With Hollywood Agency The mobile check-in company said it had hired United Talent Agency to advise it on "business development and partnerships in the entertainment and media sector" as it looks to attract more users, BetaBeat reports.
Advertising Start-Up Raises $8.5 Million Struq, an advertising platform that analyzes consumer behavior, raised the funds from investors including Reed Elsevier Ventures, TechCrunch reports.
Travel Data Start-Up Attracts $2.1 Million Duetto Research, a "big data" start-up that plans to collect consumer demand information from travel companies, raised a round of seed funding from various travel investors, TechCrunch reports.
LEGAL/REGULATORY »
Battle Over a Chinese Company Turns Physical
Battle Over a Chinese Company Turns Physical The convoluted fight between the ChinaCast Education Corporation and its ousted chief executive, Ron Chan, follows other messy cases involving Chinese companies that trade on American stock markets.
U.S. Investigates a Goldman Executive Over Insider Trading Federal prosecutors in California are investigating whether a Goldman Sachs executive leaked confidential information about two publicly traded companies to Raj Rajaratnam, the convicted former hedge fund manager.
S.E.C. Said to Prepare Action Against Egan-Jones The credit ratings company said the Securities and Exchange Commission would seek to punish it for alleged inaccuracies in regulatory filings, The Wall Street Journal reports.
Parsons Lays Blame for Crisis on Repeal of Regulation "To some extent what we saw in the 2007, 2008 crash was the result of the throwing off of Glass-Steagall," said Richard D. Parsons, who until this week was the chairman of Citigroup, Bloomberg News reports. He referred to the Depression-era law that kept banks separate from securities businesses.
How the S.E.C. Got its Groove Back The cover story in Bloomberg Businessweek this week chronicles the recent series of enforcement actions by the Securities and Exchange Commission, saying that the case against Raj Rajaratnam "ushered in a new era" at the agency.
Consumer Agency Examines Overdraft Fees The Consumer Financial Protection Bureau is taking a close look at bank programs that are marketed as a protection against overdraft fees, focusing on nine banks including JPMorgan Chase, Wells Fargo and Bank of America, Bloomberg News reports, citing four unidentified people briefed on the examination.
Olympus Shareholders Install a New Board But Michael C. Woodford, the former chief executive of the scandal-plagued company, said he may try to have the vote annulled, Reuters reports.
JPMorgan Wins Dismissal of Some of Lehman's Claims A bankruptcy judge threw out of part of Lehman Brothers Holdings' case against JPMorgan Chase but said other matters fell outside his purview, Bloomberg News reports.
Former Societe Generale Trader Prepares an Appeal Jerome Kerviel, who in 2010 got a prison sentence and a fine for making trades without Societe Generale's permission, is looking to reduce the amount he owes, Bloomberg News reports.
High-Frequency Trader Fined in Oil-Manipulation Case The Amsterdam-based trading firm Optiver reached a settlement with United States regulators that requires it to give up $1 million in profits and pay a $13 million penalty, Reuters reports.