From: Ike Groff Sent: Mon 6/24/2013 10:08:10 AM Subject: Early Tour 6.24.13 Good Morning ... European Markets off 75-200 bps ... ASX -1.47%, NKY -1.28%, KOSPI -1.31%, TWSE - 0.45%, SHCOMP -5.29%, HSI -2.26% EUR 1.3109 (-0.09%) JPY 97.96 (-0.06%) EUR/JPY 128.41 (-0.03%) AUD 0.9181 (-0.41%) NZD 0.7715 (-0.46%) Spain 10yr 4.94% Italy 10yr 4.66% Portugal 6.60% Germany 10yr 1.78% Japan 10yr 0.88% US 10yr 2.593% Futures: Dow -94, Nasdaq -13, S&P -11 DXY $82.58 (+26c) Crude $93.55 (-14c) Gold $1281.40 (-$10.60) Copper -2.94% Silver -1.77% China was sharply lower and weighed on the region with the SHCOMP -5.29% seeing its biggest one day drop since August 2009. Financials were hit the hardest on continued liquidity concerns as the PBOC remained prudent on its monetary policies and signaled there won't be much improvement in interbank liquidity till mid-July. More headlines around the CSRC plans to restart the IPO pipeline and the US 10 year bond yields spiking also weren't helping. The Nikkei opened strong after the US rebound but grinded slowly lower on light volumes to reverse some of the gains from Friday. The most notable aspect about today's action in Japan was that the Nikkei seemed to have no correlation with the JPY as it weakened from 97.9 to 98.5 intraday. European markets opened flat to higher despite the China move but have since rolled over hard as sovereign yields continue to climb across the board. Beta for sale early on and volumes are decent. US 10yr yield ticking up to the 2.60% level. SPA's been heavy all morning -11 handles = 1573.4 last. "'Chicago & Dallas Fed Manufacturing today' "'Greece closed for holiday (Whit Monday), Wimbledon starts today" • Vodafone makes official bid for Kabel Deutschland (€87/share = €84.50 in cash + €2.50 dividend) • Hutchison Whampoa agrees to buy Telefonica's Irish unit for up to €850 million (TEF SM trading - 0.84%) • VTB may sell part of Tele2 Russia to Putin ally says Vedomosti (TEL2