From: Ike Groff Sent: Fri 8/30/2013 9:51:49 AM Subject: Early Tour 8.30.13 Good Morning ... European Markets off 35-65 bps (Portugal -0.83%) ... NKY -0.53%, SHCOMP +0.06%, HSI +0.12%, KOSPI +0.99%, TWSE +1.32%, ASX +0.84% EUR 1.3237 (-0.03%) JPY 98.16 (+0.20%) EUR/JPY 129.93 (-0.22%) AUD 0.8928 (-0.03%) SEK 6.60 (-0.19%) ILS +0.42% IDR +2.28% INR -0.68% US 10yr 2.76% Japan 10yr 0.72% Germany 10yr 1.84% Portugal 10yr 6.78% Italy 10yr 4.39% Spain 10yr 4.54% Futures: Dow +24, Nasdaq +8, S&P +3 DXY $81.97 (+3c) Crude $108.01 (-79c) Gold $1393.30 (- $19.30) Copper -0.40% Silver -2.01% Asia markets ex-Japan closed higher overnight after Europe & US closed positive yesterday and Emerging Markets recovered some more. Japan failed to hold early gains and the NKY turned negative half-way thru the AM session (closed -0.53%) despite better macro data that seemed to illustrate the impact of Abenomics with consumer prices rising at the fastest pace since 2008 (core CPI +0.7% y/y vs est +0.6%). Crude oil currently trading -0.77% as David Cameron failed to gain UK support for a Syria strike as British MP's voted it down by 285-272 after lengthy debate, although the US press is reporting that Obama is still prepared to go it alone with a limited strike (NYT). European markets opened flattish but have tilted for sale into the weekend. Periphery underperforms with Portugal's PSI20 -0.82% and its 10yr yield spread widening out after its Constitutional Court rejected a move to lay off civil servants yesterday. Spain's IBEX also -0.50% with the local press reporting on potential pension reforms. More action in the European telecom space today as the KPN foundation has activated the poison pill to potentially block the AMX tender offer (AMX out with statement this morning saying it is prepared to withdraw bid while the Foundation just hosted a conference call and indicated they are just concerned about the process and not trying to definitively block the