There were a decent amount of headlines this weekend. The biggest news concerns Washington and
CNBC is reporting that Morgan Stanley has won the underwriting assignment to sell the Treasury’s stake in Citigroup (the sale will be conducted via a “dribble out process”, whereby the Treasury’s sales won’t account for any more than 10% of the ADV in a single day). An announcement could come in conjunction w/Citi’s earnings in a few weeks.
On the FDIC front, there were 4 more failures this weekend (now 41 YTD) w/NYB and OZRK involved in FDIC‐assisted transactions.
The WSJ is reporting that going forward the FDIC will be providing less asset loss protection to acquirers of failed banks (which could ultimately make the deals less attractive).
Finally, Politico is reporting that the White House is going to ramp up its pressure on Congress to pass the financial regulatory reform bill; the WH wants something passed by at least Sept (the second year anniversary of Lehman) although some think a bill could be sent to the president’s desk by Memorial Day (also out of Washington – Obama made an unexpected trip to Afghanistan on Sunday, his first visit to the country as president).
Away from the banks, there are a couple big articles in the British papers talking about a potential
merger between VZ and VOD (the Sunday London Times reports that a deal is unlikely while the Sunday
London Telegraph says the opposite).
According to the FT, Greece is expected to come to market this week w/a 3‐7yr ~EU5B bond sale in what will prove to be a critical test of the recently signed EU‐IMF rescue package.
Various sites are reporting that Apple appears to have sold out of its first batch of iPads w/the company now promising delivery of orders by Apr 12 (weeks after the device will officially go on sale on Apr 3).
To watch for the week of Mon Mar 29 – a few more Feb‐end earnings reports (RIMM, APOL, MU, MOS),
auto sales, and the Mar BLS report (on Fri) will all be crammed into a holiday‐shortened week (nearly
every major equities market in the world will be closed Fri although bond markets will be open for an
abbreviated session); the end of the Q/month on Wed will also impact trading. On the earnings front,
investors will be focused on APOL Mon morning and then RIMM and MU Wed after the close. The Q1
earnings season kicks off on Mon 4/12 w/AA after the close.
For autos, the nation’s auto companies will be posting their Mar sales results throughout the day on Thurs (Edmunds.com is projecting a 31% surge in March U.S. new‐vehicle sales).
JPMorgan is hosting a REIT conf on Thurs Apr 1.
There are a couple analyst meetings that will be in focus (AMAT on Tues and HIG on Thurs).
On the economics front, it is a slow week of releases. In the US, focus will be on the monthly jobs number out on Friday (which will be released despite equities markets being closed).
Also in the US, S&P/Case‐Shiller (Tues) and ISM (Thurs) will be closely followed.
In Europe, a bunch of Eurozone datapoints will hit inc. Business Climate survey, Consumer Confidence survey, Unemployment rate and CPI. In China, March PMI Manufacturing & HSBC Manufacturing PMI numbers will hit Wednesday night and in Japan the Tankan survey will come out Wednesday.