By Paddy Power Trader

The IMF board finalised a new USD 15bln loan agreement negotiated with Ukraine’s new government, which will plug holes in the budget of the cash-strapped country. (RTRS) The IMF agreed to release the first tranche of the loan, worth about USD 1.89bln, and said the next disbursements will depend on quarterly IMF performance reviews.

UK News

Median whole economy UK pay deals held steady at 2.0% in the three months through June but public sector pay freezes are spreading, according to the latest survey from IDSPay.co.uk. (Sources) IDS said there was a slight rise in the proportion of higher level private sector deals, while half of the public sector pay deals in the April to June period were freezes. The trend is one under which the private sector deals edged higher, while public sector pay stops rising at all. The median private sector pay deal in the three months through June was 2.0%, while the median public sector deal was just 0.3%.

Bar Cap Sterling Index month-end extension: +0.10 years

US News

T-notes were on an upward trend on Wednesday following an unexpected decline in US durable-goods orders, which were at their lowest since August 2009. Treasuries spiked higher following strong demand for the 5y note auction and after the Fed’s Beige book highlighted that economic recovery slowed in some areas. At the close; t-notes finished up 16 ticks at 122.26+. Overnight prices remained around there highest levels trading 122.30 up 2+ ticks at 0615BST.

Fed’s Beige Book says US economic activity continued to increase in most districts however says economic recovery slowed in some areas. (RTRS) Says several districts report manufacturing activity has slowed or levelled off, however says retail sales are still rising for necessities but costly items are moving slowly. Also says most districts report sluggish home sales, while credit standards remain tight, some districts report soft or decreased loan demand. In addition says consumer prices are steady in most districts, wage demands contained and says labour markets ‘improved modestly’ across regions.

San Francisco Fed’s Williams says economic recovery ‘modest’ several notches above ‘double-dip’ (RTRS) Williams says will take ‘considerable time’ for consumer and business confidence to heal and says monetary policy remains highly supportive of economy. Says sees US GDP growth at 2.5% in 2010 and sees unemployment at 8.5% by 2011 end. Also says sees low inflation, moderate recovery, but says Fed must remain vigilant on risks.

California Gov. Schwarzenegger orders government worker furloughs that requires state workers to take three unpaid days off per month starting next month. (AP)

Foreclosures rose in 3 of every 4 large US metro areas in this year’s first half, likely ruling out sustained home price gains until 2013, according to real estate data company RealtyTrac. It said unemployment was the main culprit driving foreclosure actions on more than 1.6mln properties. (RTRS)

USD 37bln (Act) 5y note auction received a b/c 3.06 vs. Avg. 2.67 (Prev. 2.58) and Indirects were 47.3% vs. Exp. 40.83% (Prev. 64.56%). The auction drew a yield of 1.796% vs. Exp. 1.820% with a total of 26.55% of issuance was allotted at the high. (RTRS)

Bar Cap US Treasury month-end extension: +0.06 years

European News

Italy’s government wins final confidence vote on austerity budget. (RTRS)

Bar Cap Euro Sovereign month-end extension: +0.16 years

Asian News

JGBs gained overnight as investors hunted for bargains following the previous day’s market dip, emboldened by higher US Treasuries and softer Tokyo stocks. JGBs were trading at 141.68 (+0.13) at 0620 BST. (RTRS)

Japan Retail Sales (Jun) M/M 0.4% vs. Exp. 0.4% (Prev. -2.0%); Y/Y 3.2% vs. Exp. 3.2% (Prev. 2.8%, Rev. to 2.9%) (Sources)

China’s economy may grow 8% to 9% this year, according to former PBOC adviser Fan Gang. (Securities Times) Fan said that China won’t reach the so called Lewis turning point for 10 to 15 years as its labour cost will continue to be relatively low compared to other countries.

China will maintain moderately loose monetary policy in the second half of this year, according to Ma Delun, a deputy governor of the PBOC. (Financial News) Also in the news, China should maintain proactive fiscal policy and stimulus policy, according to Bai Jingming, deputy director of the Ministry of Finance’s Institute of Fiscal Science.

Forex

Reserve Bank of New Zealand Official Cash Rate (Jul) M/M 3.00% vs. Exp. 3.00% (Prev. 2.75%) (RTRS) New Zealand’s central bank lifted interest rates by a quarter point, but scaled back its plans for further increases because of weakening growth outlook for Asia and the domestic economy.

Commodities

Oil was steady around USD 77 a barrel overnight after falling in the past two sessions on weak durable goods data and the biggest weekly increase in crude oil inventories for nearly two years in the US. WTI crude futures were trading at USD 77.00, up USD 0.01, at 0620 BST. (RTRS)

Company News

BP – Co. may permanently shut the well that caused the worst off-shore oil spill in US history as early as Monday, co. said as speculation grew over assets it might sell to cover mounting costs. In other news, SEC probing trading in co. shares from April 20 to late June, says CNBC’s Kelly. Elsewhere, co. is in discussions with its Russian subsidiary, TNK-BP, regarding the potential sale of USD 1bln of Venezuelan assets. (RTRS/Sources/Times)

UK

Royal Dutch Shell – Co.’s Q2 net income USD 4.39bln vs. Prev. USD 3.82bln, and co. says it exceeded targets for cost and staff reduction. Co. expects USD 7-8bln of asset sales in 2010-11 as it accelerates its disposal plans, and says the outlook remains uncertain. (Sources/RTRS)

Astrazeneca – Co.’s Q2 EPS ex-items USD 1.79 vs. Exp. USD 1.58, and Q2 revenue USD 8.18bln vs. Exp. USD 8.08bln. Co. raises FY core EPS target to USD 6.35 – USD 6.65. In other news, US FDA panel backs co.’s drug Brilinta for certain heart patients who are candidates for Angioplasty, votes 7-1 to urge approval for drug. FDA panel says to weigh whether to also back co.’s Brilinta for certain heart patients that will be managed with drug therapy. (Sources/RTRS)

BT Group – Co.’s Q1 adjusted EBITDA GBP 1.4bln and co. says its full year outlook unchanged. (Sources)

BAE Systems – Co.’s H1 net GBP 618mln vs. Exp. GBP 650.3mln, and co. continues to expect growth for 2010. Co.’s interim dividend increased by 9% to GBP 0.07 per share. (Sources/RTRS)

Rolls Royce – Co.’s H1 net loss GBP 334mln vs. Prev. profit GBP 1.86bln, and H1 sales GBP 5.42bln vs. Exp. GBP 5.03bln. Co. says currency movements had material effect, however the order book remains strong at GBP 58.4bln. (Sources)

BSkyB – Co.’s FY operating profit GBP 1.096bln vs. Prev. GBP 813mln, and co. proposes 10% FY dividend increase to GBP 0.194 per share. (Sources)

Kazakhmys – Co.’s Q2 Copper output 85,900 tonnes, and says H1 Copper output ahead of target. (Sources)

Reed Elsevier – Co.’s 6-months operating profit GBP 543mln vs. Prev. GBP 316mln, and co. says improved overall trading performance. (Sources)

US

Equities finished lower in a session that saw soft economic data in form of durables, large build in crude oil inventories and cautious sounding Fed’s Beige Book weigh on investor appetite for riskier assets. Fed’s Beige Book noted that the pace of economic activity has slowed or held steady in parts of the country, while high unemployment, cautious consumers and businesses, an ailing housing market have kept the recovery from gaining strength. The closing hour saw equities settle into a range bound trade and at the closing bell DJIA closed down 0.38% at 10497, S&P 500 closed down 0.69% at 1106 and NASDAQ 100 closed down 0.86% at 1872.

Visa – Q3 EPS USD 0.97 vs. Exp. USD 0.93, Q3 revenue USD 2.0bln vs. Exp. USD 1.98bln. Co. says quarterly payments volume growth, on a constant USD basis was a positive 14% and sees annual net revenue growth: high end of the 11-15% range. (Sources/RTRS) Co. shares up 1.6% in after-market trade.

Nvidia – Co. cuts forecast and sees Q2 revenue USD 800-820mln vs. Prev. view USD 950-970mln vs. Exp. USD 951.2mln and says revenue shortfall occurred primarily in the consumer GPU business, cites economic weakness in Europe and China. (Sources/RTRS) Co. shares down 4% after-market trade.

Citrix Systems – Q2 adjusted EPS USD 0.41 vs. Exp. USD 0.43, Q2 revenue USD 458mln vs. Exp. USD 436.3mln and sees Q3 adjusted EPS USD 0.48-0.49. (Sources)

Symantec – Q1 adjusted EPS USD 0.35 vs. Exp. USD 0.35, Q1 revenue USD 1.43bln vs. Exp. USD 1.47bln. Co. sees Q2 adjusted EPS USD 0.27-0.28 vs. Exp. USD 0.35 and sees Q2 revenue USD 1.45-1.47bln vs. Exp. USD 1.52bln. (Sources)

Mylan – Co. Q2 EPS USD 0.37 vs. Exp. USD 0.38, Q2 revenue USD 1.37bln vs. Exp. USD 1.34bln. Reaffirms forecast for view by end 2011 and sees 2010 adjusted EPS USD 1.55-1.65, saw USD 1.50-1.70. (Sources)

Express Scripts – Co. Q2 adjusted EPS USD 0.60 vs. Exp. USD 0.59, sees FY adjusted EPS USD 2.45-2.50. Says continues to expect the acquisition of Nextrx to generate more than USD 1bln of incremental ebitda. (Sources)

Europe

Siemens – Co.’s net income rises 12% to EUR 1.41bln from EUR 1.26bln, Q3 sales rise 4% to EUR 19.17bln from EUR 18.35bln. This year sector profit to clearly exceed last year. Co. CEO says no plan s at this point in time to buy back shares. (Sources/RTRS)

Bayer – Q2 net income EUR 525mln vs. Exp. EUR 776mln, Q2 revenue EUR 9.18bln vs. Exp. 8.63bln. Co. confirms full year forecast. (Sources)

Merck KGAA – Q2 core EPS EUR 1.44 vs. Exp. EUR 1.36, Q2 net EUR 183.4mln vs. EUR 108.5mln year ago. Co. raises outlook, H2 to probably surpass H1. (Sources)

BASF – Q2 net EUR 1.18bln vs. Exp. EUR 1.07bln, Q2 sales EUR 16.21bln vs. Exp. EUR 15.3bln, co. sees higher sales significant boost in earnings in 2010. (Sources)

Man AG – Co.’s Q2 net EUR 153mln vs. Exp. EUR 141mln, and Q2 EPS EUR 1.05 vs. Exp. EUR 0.93. Co. sees significant increase in FY order intake. (Sources)

Deutsche Lufthansa – H1 revenue EUR 12.6bln vs. last year EUR 10.2bln, H1 operating loss EUR 171mln vs. last year EUR 8mln and H1 net loss EUR 104mln. Co. says Q2 revenue EUR 6.9bln vs. last year EUR 5.2bln and says Q2 operating result was EUR 159mln vs. last year EUR 52mln. Co. expects increase in FY sales, operating profit. (RTRS)

Sanofi-Aventis – Co.’s Q2 adjusted net income EUR 2.48bln vs. Exp. EUR 2.31bln, and Q2 adjusted EPS EUR 1.90 vs. Prev. EUR 1.76. Co. repeats that 2010 profit may drop as much as 4%. Co.’s CEO says Lovenox generic approval is a hit for the company, however he declines to comment on possible Genzyme bid. In other news, co. plans to make a formal offer of up to USD 18.bln for Genzyme after its informal overture failed to strike interest, sources familiar with the situation. (Sources/RTRS)

France Telecom – Co.’s Q2 EBITDA EUR 3.98bln vs. Exp. EUR 3.98bln, and co. will pay EUR 1.40 per share annual dividend through 2012. Co. confirms 2010 and 2011 cash flow targets. (Sources)

Vallourec – H1 net EUR 186.7mln, down 10%, Q2 net EUR 125.9mln and Q2 sales EUR 1.12bln. Co. says Q2 Ebitda EUR 264.4mln and H2 Ebitda margin to be slightly below H1. Says positive sales trend to continue at more modest pace in H2. (RTRS)

Cap Gemini – Co.’s H1 net EUR 101mln vs. Prev. EUR 78mln, and raises 2010 operating margin forecast to above 6.5%. Co.’s CEO says co. will continue to pursue acquisitions. (Sources/RTRS) Telefonica – Co.’s Q2 net EUR 2.12bln vs. Exp. EUR 1.94bln, and Q2 sales EUR 15.12bln vs. Exp. EUR 14.53bln. (Sources) In other news, co. has agreed to buy Portugal Telecom’s stake in Vivo for EUR 7.5bln, after increasing its original offer by EUR 1.8bln over three months of incident rich negotiations. Portugal Telecom will use EUR 3.8bln of the proceeds to buy 22% of Oi, Brazil’s largest telecoms group. (FT)

Santander – H1 net EUR 4.45bln vs. Exp. EUR 4.5bln, H1 lending rises 5%. Bad loans ratio 3.37% (Sources)

Repsol – Co.’s Q2 adjusted net EUR 523mln vs. Exp. EUR 455mln. (Sources)

ENI – Co. will look at buys, including any assets that BP might put on the market