12_06_07.xls

Daily Market Report
June 12, 2007
Highlights
MACROECONOMY / FIXED INCOME / FOREX
• Texas Instruments (-2% after hrs) said its Q2
U.S. Treasury yields were 2 bp higher on the long end with the short end unchanged after
sales and profit won’t reach the high end of its Fed’s Pianalto said the economy remains strong and inflation is uncomfortably high. The 10y previous estimates as a slump in handset demand continues. EPS will be 40c to 44c vs European bonds were initially supported by weak industrial production data in France and
Italy, but they lost ground again after Mr Trichet said upside risks to price stability remain and • U.S. Court allows Teva to resume U.S. sales monetary policy is still accommodative. Yields were unchanged on the day, with the 10y Bund MARKET COMMENTS
SMI: Novartis: a federal judge in New Jersey said that Teva can sell its generic
version of the blood pressure drug Lotrel before a pending patent infringement trial is held. Sandoz will introduce a generic form of Lotrel immediately. Holcim said its
public offer for Jurong Cement has closed and it now owns 55.16% of the company.
Lonza will invest CHF 80 mn in the construction of a new plant in Visp.
EX-SMI: Phonak holds its AGM today. Meyer Burger has won an order worth more
than CHF 30 mn for wire and band saws from a Chinese wafer plant. Actelion said
the European Commission granted marketing approval for its Tracleer drug for the reduction of the number of new digital ulcers. Converium: Scor has increased its
Europe: Veolia will launch a capital increase of EUR 2.6 bn between June 14 and
June 27 at EUR 49.7 for existing shareholders at a rate of 1 new share for every 8
L.T. rates (%)
held. The French utilities group wants to improve its financial flexibility. Albert Frere has raised his stake in Iberdrola to 8% and ACS has cut its stake in Iberdrola to
7.7%. Arcelor Mittal will launch a share buy-back for 27 mn shares. Alstom wins a
EUR 330 mn contract for Brazil. Rhodia will proceed today with a reverse stock split 1
for 2. Royal Bank of Scotland and Bank of America are close to agreement on how
to split LaSalle.
Cross rates
USA: equities closed essentially flat. Steel (-5.3%), which was recently up 28% YTD
was the worst performing industry group after ThyssenKrupp denied it is in talks to
acquire U.S. Steel (-7%). Apple dropped 3.4% after failing to announce any new
products at its Developers Conference. Alliance Bernstein (+2.8%) reported USD
749 bn assets under management in May vs USD 770 bn the previous month. Teva
(+2%) will resume selling a generic version of the blood pressure drug Lotrel. Texas
Instruments mid-quarter update: see highlights.
Expected figures
Europe: EU April Eurozone Industrial
Japan / Asia: Topix -0.54% to 1'751. Weaker market showing a lack of interest from
investors. Some profit taking and mood affected by rising bond yields. Weakest USA: Lehman Q2 EPS, U.S. May Monthly
sectors: utility, railway, real estate and insurances. Exporters weaker as well on concern of rising interest rates in the USA: Toyota Motor -0.5% to 7'500, Canon -
0.2% to 7'150, Sony -0.9% to 6'580. Asian markets were trading mixed before close:
Shanghai surpassing the 4'000 level again (+1.3% to 4'049) Taiwan +0.8% and Kospi
+0.8%.
Publication of Lombard Odier Darier Hentsch Marketing Products & Solutions Team
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