Wall Street Breakfast: Must-Know News

by: Wall Street Breakfast
Wall Street Breakfast
Seeking Alpha's flagship daily business news summary, gives you a rapid overview of the day's key financial news. It is published before 7:00 AM ET every market day and delivered to over 900,000 email subscribers.

Ukraine and Russia have failed to reach an agreement in their latest gas talk negotiations. The EU is brokering the deal to avoid a cutoff of its supplies, as it relies heavily on the gas piped in through Ukraine. Although Ukraine transferred $786M last week to Russian state gas exporter Gazprom (OTCPK:OGZPY), the two still have not come to an agreement regarding past and future supply prices.

The International Energy Agency has forecasted China's natural gas demand to nearly double by 2019, offsetting slower growth in Europe and around the world. Global gas demand is expected to rise by 2.2% a year by the end of 2019. The demand growth for the gas is driven by the Asia-Pacific region - especially China, while supply growth is dominated by private-sector operators in Australia and North America.

The German think tank ZEW has outlined its growing concern of dangerous bubbles after the European Central Bank's actions this past week. "We have all the ingredients of a bubble: The prices of real estate and stock markets continue to rise, and...bond yields are falling despite high risks," says Clemens Fuest. To overcome the crisis, Fuest proposes action from governments in Europe, and not to leave structural reforms only up to the ECB.

IntercontinentalExchange has begun the IPO of its stock market operator Euronext, valuing it at up to €1.75B ($2.4B). ICE (NYSE:ICE) is selling a stake of as much as 60.15% of Euronext at €19-25 a share. Assuming exercise of an over-allotment option, the transaction will raise as much as €1.16B ($1.58B). The offer begins today and is scheduled to end June 18 for retail investors and June 19 for institutional investors. Trading is expected to start June 20.

Time Inc., the magazine company that spun off from Time Warner (NYSE:TWX), fell 0.8% in its first day of trading yesterday, and closed down $0.18 at $23.30. Time's (NYSE:TIME) shares are being traded on the NYSE. Wells Fargo has initiated coverage on the stock with an Outperform rating and price target range of $27 to $29. Shares in Time Warner rose 1.25%, and closed up $0.85 at $68.99.

Hewlett-Packard has unveiled a water cooling technology for its new Apollo family of server computers that run financial models and create complex designs. The new design takes the heat out of the machine from a safe distance, unlike gamers’ machines that pump water near heat-generating processors. "The innovation opens the door for H-P (NYSE:HPQ) to chase orders in a $4B segment of the market where it hasn’t had products before," says Antonio Neri, chief of the company’s servers business.

Sony will sell its PlayStation TV set-top box for $99 in North America this fall. The device will compete with Amazon's (NASDAQ:AMZN) "Fire TV" released in April, and users will be able to access movies and TV episodes from the PlayStation store. Sony (NYSE:SNE) has also recently overtaken Microsoft's (NASDAQ:MSFT) Xbox One and Nintendo (OTCPK:NTDOY) in annual sales, making up for poor past performance in its television and other divisions.

AT&T settled a lawsuit with Al Jazeera over the refusal to carry a news channel launched by the latter last August in its U-verse pay television service. AT&T (NYSE:T) refused due to a dispute over the terms of the agreement. Al Jazeera sued the telecom giant in Delaware's Court of Chancery, claiming AT&T had broken and terminated their contract.

Leading domain name registrar Go Daddy has hired JPMorgan (NYSE:JPM) and Morgan Stanley (NYSE:MS) to handle an IPO that could occur later in 2014, the NYT reports. Go Daddy was acquired by private equity firms KKR (NYSE:KKR) and Silver Lake, and venture capital firm TCV, for $2.25B in 2011. In addition to domain name registrations, the company offers Web hosting, site design, and SSL certificate services.

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Today's Markets:
In Asia, Japan -0.85% to 14995. Hong Kong +0.86% to 23316. China +1.08% to 2053. India flat at 25584.
In Europe, at midday, London -0.6%. Paris +0.1%. Frankfurt +0.1%.
Futures at 6:20: Dow -0.1%. S&P -0.2%. Nasdaq -0.2%. Crude +0.2% to $104.61. Gold flat at $1253.80.
Ten-year Treasury Yield +1 bps to 2.62%

Today's economic calendar:
7:30 NFIB Small Business Optimism Index
7:45 ICSC Retail Store Sales
8:55 Redbook Chain Store Sales
10:00 Wholesale Trade
10:00 Job Openings and Labor Turnover Survey
1:00 PM Results of $28B, 3-Year Note Auction

Notable earnings before today's open: CBK, FRAN, HDS, RSH, SAIC

Notable earnings after today's close: ULTA, UNFI

See full real-time earnings coverage »

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