By Paddy Power Trader

Fed’s Bullard said that the central bank should keep alive its mortgage-related assets purchase programme beyond a planned end-date to give policy-makers more flexibility as they help the economy recover from a painful recession. Bullard added that the Fed could react to changes in the economy by adjusting its asset purchases. Bullard earlier told Dow Jones in an interview that no decision had been made on the fate of the programmes. (RTRS)

In other news, US unemployment is likely to peak at about 10.5% and may not start to come down until the summer of 2010, according to Charles Evans, president of the Federal Reserve Bank of Chicago. Evans also said he expected economic growth of 3-3.5% over the next 18 months and did not think there was much risk of a double-dip recession. (FT)

Elsewhere, a group of US business economists boosted their forecast for economic growth over the next year, but said the jobless rate will remain stubbornly high. National Association for Business Economists predicted real growth in GDP for 2010 would be 2.9%, up from its October forecast for 2.6% growth. The group saw the jobless rate holding at an average 10% from the fourth quarter of 2009 to the second quarter of 2010 before dropping to 9.6% by the end of 2010. (RTRS)

Wall Street

Other News

Boeing – The UK defence secretary is expected to announce a GBP 3.5bln helicopter building programme early this week. The Ministry of Defence will order up to 30 Chinooks, the helicopter that has been heavily deployed in Afghanistan, from co. (Independent)

GE – Several hundred million dollars separate co. and Vivendi as the French firm attempts to sell its 20% minority stake in NBC Universal. That has put off co.’s ability to complete its deal for NBC Universal with Comcast. Co. owns the other 80% and for the deal to proceed Vivendi has to sell its stake. (WSJ)

Merck – Co. has been granted motion for summary judgment, and have had dismissal of all claims in  VIOXX-related lawsuits filed on behalf of the State of Texas. In that case, which was filed in 2005 by the Texas Attorney General’s Office, the state sought damages and penalties from co. for alleged violations of the Texas Medicaid Fraud Prevention Act, including a refund of all monies that the state had spent on VIOXX. (BBG/RTRS)

Kraft – According to a source familiar with the situation co. may raise offer or offer more cash in its bid for Cadbury if rival takeover offers emerge. In related news, In a move that would challenge a bid by co. and a potential offer by Hershey, Nestle is reportedly weighing a possible bid for Cadbury. Nestle may still decide against a bid and is currently reviewing its options with bankers, two people with knowledge of the matter say (BBG/RTRS)

S&P 500

Earnings

Tyson Foods – Co. reports Q4 EPS USD 0.28 ex items vs. Exp. USD 0.26, Q4 revenue USD 7.21bln vs. Exp. USD 6.88bln. Co. says 2010 should be a much better year. (BBG/RTRS)

Campbell Soup – Q1 EPS USD 0.87 vs. Exp. USD 0.81, reports Q1 revenue USD 2.2bln vs. Exp. USD 2.28bln. Co. sees FY 2010 EPS growth of 9%-11% with an adjusted base of USD 2.21, up from its original estimate of 5%-7%. Sees FY 2010 revenue up 4%-5% up from original guidance of up 3%-4%. (BBG/RTRS)

Other News

S&P 500 – Bank of America boosts 2009, 2010, 2011 S&P 500 estimates, boosts 12-month estimates to 1,275 vs. previous estimate of 1,200. (BBG)

US Banks – S&P says Citigroup has among the lowest capital ratios based on its news risk-adjusted capital (RAC) ratios. Says Goldman Sachs has among the highest on its new RAC ratio calculation. (Sources/RTRS)

Bank of America – Co. regains status as no.1 home lender. In other news, co.’s board may extend its search for a new, permanent chief executive officer into 2010 if directors can’t settle on a candidate in the next four days, according to people familiar with the matter.

JPMorgan – Reports suggest several U.S. policy makers consider co.’s Chief Executive Jamie Dimon as a potential successor to U.S. Treasury Secretary Timothy Geithner.(BBG/NY Post)

Allstate – According to Crains, co. has outsourced the management of its USD 4.6bln portfolio of public equities to Goldman Sachs last month. The majority of Allstate’s investment holdings are in Bonds, which Allstate manages itself. (theflyonthewall.com)

Peoples United Financial – Co. to acquire Federal Financial Corp. for approximately USD 738mln. (BBG/RTRS)

Hershey – Co. could sell assets to fund a bid for Cadbury. Co. is likely to make a friendly bid if it can arrange the financing necessary for a takeover bid. Reports also say co. is backing a larger deal for Cadbury than the current Kraft bid . The Wall Street Journal says that according to people familiar with the situation, co. may include a large cash component in its offer, it is thought the co. will launch USD 17bln offer for Cadbury. (NY Times/FT/WSJ)

Anadarko Petroleum – Co. announces successful pre-salt appraisal offshore Brazil. Says Wahoo north well confirms extension of Wahoo discovery. Co. plans to maintain active pre-salt drilling schedule with up to 2 exploration/appraisal wells on BM-C-30 in 2010. (RTRS)

Lockheed Martin – Japan’s Defence Ministry is moving towards selecting co.’s F-35 jet as the mainstay of its next-generation fighter force. The ministry is thinking of buying about 40 F-35s, plans to submit a request for their purchase in the fiscal 2011/12 budget, each one expected to cost about USD 100mln. (Kyodo news agency)

Abbott Laboratories – The U.S. Food and Drug Administration (FDA) announced that it is reviewing preliminary data from a recent study suggesting that patients using sibutramine, marketed as Meridia by co., have a higher number of cardiovascular events. (theflyonthewall.com)

Bristol-Myers Squibb – Co. and Otsuka Pharmaceutical announced that the FDA has approved the supplemental New Drug Application for ABILIFY for the treatment of irritability associated with autistic disorder in paediatric patients ages 6 to 17 years, including symptoms of aggression towards others, deliberate self-injuriousness, temper tantrums, and quickly changing moods. (theflyonthewall.com)

Boston Scientific – Co. will close its plant in Doral, Florida., eliminating 1,400 jobs by 2012, according to Miami-Dade officials. (Boston Herald)

Companies paying dividend: Apache Corp (USD 0.15000), Noble Energy (USD 0.18000)

Companies going ex-Dividend: McGraw Hill (USD 0.22500), Hershey Company (USD 0.29750)

NASDAQ

PC Makers – Gartner says PC shipments to grow 2.8% globally in 2009 and PC market value to drop 11% Y/Y in 2009. Also sees 2010 PC shipments up 12.6% Y/Y. Says its previous forecast was for 2009 PC shipments to fall 2% Y/Y. (RTRS)

Apple – Co.’s iPhone is coming to South Korea this week, a local carrier announced Sunday, bringing the iconic communications device to one of the world’s most sophisticated mobile phone markets. In other news, co.’s iPhone 3GS was no.2 US consumer smart phone in Q3 according to NPD. In other news, The Examiner reports “we have heard from an inside source who claims the camera version of the iPod Touch 3G will be released this Spring. The source confirms to us that the iPod Touch 3G with camera had actually been planned for release this past September, but had problems passing quality control (AP/BBG/The Examiner)

Microsoft/News Corp. – Co.’s have had talks about a tie up, which would involve News Corp. getting paid to takes its news websites off Google, according to a source familiar with the matter. (CNBC)

Research in Motion – Co.’s BlackBerry curve was top US consumer smart phone in Q3 according to NPD. (BBG)

eBay – A search glitch at co.’s main e-commerce sites slowed sales at a critical time in the holiday shopping ramp up. (WSJ)

Companies going ex-Dividend: Qualcomm (USD 0.17000)

OTHER NEWS

Baltic Dry bulk index falls 1.9% to 4,423 at 1303 GMT (0703 CST) in London. (BBG) USD Index down 0.77% and CRB Index up 1.38% at 1408 GMT (0808 CST)

GM – Co. expects its China sale to rise 50% in 2009 and increase 10-15% in 2010, according to co. exec. (RTRS)

Moody’s/S&P/Fitch – Ohio’s attorney-general sue the top three US credit rating agencies, accusing them of “wrecking havoc” on US financial markets by providing inflated ratings and costing state funds hundreds of millions of dollars. The lawsuit was filed against Standard & Poor’s, Moody’s Investors Service and Fitch Ratings on behalf of five Ohio public employee retirement and pension funds. (FT)