Market Gazer Hong Kong - Japan - Germany - UK - North America
market review : europe & us
European banks led the decline in Europe
as a report by the Wall Street Journal
(WSJ) suggested that some of the
European banks involved in the stress
tests were excluding certain sovereign
bonds. The undisclosed sums were used
to account the short positions held. The
DAX index slipped 37.15 points or 0.6% to
6,117.89 while FTSE 100 index ended at
5,407.82 or down 0.58%. The European
jitters also put an end to the Dow’s
winning streak as the DJIA index tumbled
107.24 points or 1.03% at 10,340.69.
Likewise, S&P 500 and Nasdaq Composite
Indexes fell to 1,091.84 and 2,208.89,
respectively.
After proposing the tax breaks on
corporate research, President Barack
Obama plans to announce another tax
break which would allow businesses to
write off 100% of all new investments in
plant and equipment in 2011. This will be
announced on Wednesday. Earlier on
Monday, Obama announced stimulus
amounting to $5 billion to upgrade roads,
airports, and railways.
On the European economic front, German
factory orders fell unexpectedly by 2.2%
on month-on-month basis against the
forecast of a 0.5% increase in July. In June,
the orders were up 3.2%. Annually, the
orders were advancing 17.7% against the
growth of 24.6% in June. However, this
also came below the expected growth of
20.8%. The slowdown added negative
7 September 2010
pressure on the European economic
outlook.
Barclays Plc
appointed Robert
E. Diamond Jr. as the new chief executive
replacing John Varley who will step down
on March 31st 2011. Diamond will start as
president and deputy group chief
executive from October 1st, leaving his
current positions at Corporate &
Investment Banking as well as in Barclays’
Wealth business. The market saw this
move as a negative as Diamond was seen
to be tilted towards putting Barclays more
as an investment bank with retail and
commercial arms instead of the other way
around. Barclays was down to 314 pence
or 2.74% at the end of the day.
Vodafone started selling
its $6.6 billion stake in
China Mobile Ltd. on
Tuesday. CEO Vittorio Colao hinted that
the 3.2% stake sold would be followed by
more divestments in the future as the
company is reviewing its entire minority
stakes.
HSBC Holdings’ chairman Stephen Green
was set to resign from his post at the bank
to become the UK’s minister of state for
trade and investment. Green will join the
government in January and will leave
HSBC before the end of this year. HSBC’s
shares inched down 0.06% to 662.40
pence.
Oracle’s shares were
boosted early as the
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 Market Gazer Hong Kong - Japan - Germany - UK - North America

market digested the news on the
appointment of Mark Hurd as the
company’s president, reporting to Larry
Ellis, the current CEO. Hurd also added to
the Oracle’s board of directors. Hurd’s
appointment was seen as positive
considering what Hurd had done for his
former company, Hewlett-Packard. Hurd
was later sued by HP for violation of the
company’s trade secrets by joining Oracle.
Oracle and HP compete in the market for
data-center technology and other areas.
Upgrades and Downgrades
 Siemens AG was upgraded to BUY
from NEUTRAL by UBS.
 Volkswagen was downgraded to HOLD
from BUY at Citigroup.
At the end of the European trading day,
GlaxoSmithKline (+0.88%), Daimler
(+0.25%), and Prudential (+0.09%)
managed to stay out of the red zone,
while Barclays languished at the bottom
with 2.74% losses, joined by
Commerzbank (-2.12%) and Deutsche
Boerse (-2.05).
Oracle stayed on top with 5.87% gains as
Mark Hurd joined the company,
McDonald’s advanced 0.95% to $75.80,
and General Electric edged up as well to
$15.44 or up 0.31%. American Express
tumbled 4.09% to $40.09, Texas
Instruments fell 2.92% to $23.62, and
eBay finished at $23.53 or down 2.49%.
Disclaimer: This report is provided for information purposes

 Barclays was downgraded to MARKET only. It is not an offer to sell or to buy any securities. This
report has been prepared based on sources believed to be
PERFORM from OUTPERFORM by reliable, but there is no assurance or guarantee regarding its
completeness & and accuracy. The author accepts no
Bernstein. responsibility or liability arising from any use of the report.
 GlaxoSmithKline was upgraded to BUY
from NEUTRAL by Bank of
America/Merrill Lynch.
 Texas Instruments was downgraded to
BELOW AVERAGE from AVERAGE at
Caris. Moderation in orders and
negative earnings revision cycle were
cited behind the downgrade.
 Oracle was put to CONVICTION BUY at
Goldman as the coming of Mark Hurd
as president, replacing Charles Phillips
was considered as a near-term
positive catalyst in addition to
improving macro environment. Target
price was set at $27.
 Halliburton was maintained at
OUTPERFORM by Wells Fargo with the
valuation range of $35-$37.

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7 September 2010 Page 2