The global bank is set to fire thousands of employees from its investment banking division, according to a report.
The pharmaceutical may rise as high as $70 a share next year on sales of Nexavar, the liver-and kidney-cancer drug it developed with Bayer AG.
General Dynamics Corporation, the second-largest maker of business aircraft through its Gulfstream unit won a contract for 40 new planes from NetJets Inc. valued at about $1.9B.
Circuit City Stores, Inc.- Circuit City Group, the electronics retailer that is seeking a buyer was cut to ``sector perform'' from ``outperform'' by Pacific Crest Securities.

The stock market has stuck its nose back into positive territory. Six of the ten economic sectors are trading with gains.
Energy remains a strong performer, up 2.8%, currently testing its session high. Exxon Mobil (+1.89) is providing the most leadership. Chevron (+1.57) is also lending support.
Crude oil is trading higher, but off its best levels. The commodity is up 1.6% at $137.50 per barrel.

The euro dropped the most versus the dollar in more than a week as German business confidence fell in June to the lowest level since 2005, reducing bets the European Central Bank will increase borrowing costs this year.
``It's becoming clear that the ECB can't tighten rates aggressively from here,'' said Shaun Osborne, chief currency strategist at TD Securities Inc. in Toronto. ``That will temper the euro going forward.''
The ECB will increase the 4 percent main refinancing rate by a quarter-percentage point by the end of September, while the Federal Reserve's target will remain at 2 percent, according to the median forecast of economists.
According to a survey of analysts and economists, the European currency may trade between $1.53 and $1.58 through the third quarter and fall as low as $1.47 by the end of 2008. That compares with a median year-end prediction of $1.50.
The greenback gained 1.7 percent against the euro this quarter as traders bet the economic slowdown sparked by the collapse of the subprime-mortgage market will spread to Europe as the U.S. recovers.

Has regained a foothold above $1.5500 as a fresh surge in crude oil puts the dollar on the defensive again but, as has been the case all day, flows are modest even as euro returns to US session opening levels. Offers remain at $1.5580 area, $1.5555/60 perhaps to offer resistance as the area of the morning break lower. Bids back at $1.5465/55.

Stocks turned mixed Monday morning, giving up early gains, as rising oil prices and talk of job cuts at Citigroup overshadowed a stronger dollar and some merger news.
Stocks are struggling to recover from last week's big slump. Stocks ended a rough week on a low note Friday, as worries about the credit market crisis and inflation sent the Dow to a three-month low.
Citigroup is about halfway through previously announced job cuts in its investment banking unit, according to published reports, with the bulk of those cuts expected this week.
Citigroup, which has seen big losses amid the credit market crisis, said earlier this year that it will cut 10% of the 65,000 employees in its investment banking unit.
That news pressured other financial stocks, including JP Morgan Chase , Bank of America and Merrill Lynch .
Republic Services , a disposal company, said it will buy rival Allied Waste Industries in a $6.07 billion stock deal.
Farm products company Bunge is buying Corn Products for $4.8 billion in stock and the assumption of debt.
U.S. light crude oil for August delivery rose 94 cents to $136.60 a barrel on the New York Mercantile Exchange.
In the bond market, Treasury prices climbed, lowering the yield on the benchmark 10-year note to 4.13% from 4.17% late Friday. Bond prices and yields move in opposite directions.

The major indices slip to session lows and then recover a bit. The S&P and Dow trade with slight losses, while the Nasdaq posts a more substantial decline.
Six of the ten sectors are now in negative territory, with notable weakness within financials (-2.5%) and consumer discretionary (-1.0%). Goldman Sachs downgraded both the sectors to Underweight, saying the sectors will lag in the current economic environment.
Within the financial sector, 94% of stocks are trading lower, with weakness in large-cap names AIG (-1.55) and Bank of America (-0.88). CME Group (+7.73) is bucking the negative trend, after authorizing a $1.1 billion share buyback program and announcing plans to declare a special dividend of $5.00 per common share.

A modest rebound off earlier lows stalls around $1.5500 area as flows slow markedly, according to a couple of traders, with chatter suggesting sovereign names were again euro buyers off the lows. Demand interest seen around $1.5465 area, extending lower, but rebound in crude oil and a steadying of commodities keeping the dollar slightly defensive again.

The stock market opens on a modestly higher note, which follows the steep sell-off last week that sent the S&P 500 near a three-month low.
There are a few merger and acquisition items of note. Farm products company Bunge is buying Corn Products for $4.8 billion, including roughly $400 million in debt. Waste companies Republic Services and Allied Waste Industries are going to merge, with Republic paying roughly $6 billion in stock to acquire Allied.
Walgreen reported a increase in quarterly profit compared to last year, but its earnings of $0.58 per share fell short of Wall Street's expectations by a penny.
Crude oil has traded in a volatile manner in premarket trading, and is currently up 0.6% to $136.13 per barrel despite Saudi Arabia announcing that it is increasing its output by 200,000 barrels per day starting in July.

EUR/USD $1.5575, $1.5600, $1.5610, $1.5625, $1.5680
USD/JPY Y107.50, Y108.20, Y105.25
EUR/JPY Y168.00

Futures indicate a modestly higher start to the trading day (S&P futures +7.4, Nasdaq futures +7,5).
Citigroup is going to lay off 6,500 investment banking employees, or 10% of the group's workforce, according to the Wall Street Journal. In earnings news, Walgreen (WAG) reported that third quarter earnings per share increased to $0.58 per share, but the results fell short of the consensus estimate by a penny.
In commodity trading, oil is up 0.9% to $136.51 per barrel, despite Saudi Arabia announcing that it is adding 200,000 barrels in output per day starting in July.

The CME Group today announced that its board of directors has authorized new initiatives to return capital to shareholders with a $1.1B share buyback of CME Group Class A common stock over the next 18-months.

The euro fell the most in more than a week against the dollar after a report showed German business confidence was worse than forecast in June, weakening the case for the European Central Bank to raise interest rates.
The euro also declined against the yen after the Munich- based Ifo institute said its business-climate index slumped to the lowest since December 2005 as record oil prices dimmed the outlook for growth in Europe's largest economy. A separate report showed Europe's manufacturing and service industries unexpectedly contracted during June. The British pound fell as house prices declined in June the most this year.


EUR/USD: Opened around $1.5630 before the news pressed the rate down to lows of $1.5500. The pare is currently trading around $1.5520. Bids $1.5510/00. Offers noted around the overnight high of $1.5630/35, stronger between $1.5650.
GBP/USD: due to general dollar demand the pare fell under massive sales and having pierced bids zone $1.9660/50 reached $1.9600. Offers $1.9750/60, more between $1.9770/75 ahead of $1.9790/00.
USD/JPY: Opened around Y107.20 and reached so far Y107.90 as US dollar gains accross the board stocks took a tumble. Offers Y108.00/10, stops Y108.40/60, bids Y107.10/00


Later in the day there is no economy data scheduled so the market will trade primary under the influence of the tech factors.

Ford Motor Co said 2008 would be hard and it might not break-even in '09. Ford lowered its '08 auto sales forecast to 14.7-15.2 million units and said it plans to cut truck production.

The euro fell the most in more than a week against the dollar after a report showed German business confidence was worse than forecast in June, weakening the case for the European Central Bank to raise interest rates.
The euro also declined against the yen after the Munich- based Ifo institute said its business-climate index slumped to the lowest since December 2005 as record oil prices dimmed the outlook for growth in Europe's largest economy. A separate report showed Europe's manufacturing and service industries unexpectedly contracted during June. The British pound fell as house prices declined in June the most this year.
``The deceleration in the euro-area economy will continue to be felt and that leaves the ECB with a problem,'' said Jeremy Stretch, a senior currency strategist in London at Rabobank International, the third-largest Dutch bank. ``The euro will be trading lower in the medium term.''

Resistance 3: Y110.00
Resistance 2: Y109.20
Resistance 1: Y108.60
Current price: Y107.75
Support 1: Y107.20
Support 2: Y106.50
Support 3: Y106.20

Comments: Pair trades in range. Above Y108.60 (Monday’s high), further resistance comes at Y109.20. Rise above may extend to Jan 10 high on Y110.00/10. Below lows on Y107.20, support is around Y106.50. Below correction may reach Y106.20.

Resistance 3: Chf1.0540
Resistance 2: Chf1.0500
Resistance 1: Chf1.0470
Current price: Chf1.0420
Support 1: Chf1.0320
Support 2: Chf1.0300
Support 3: Chf0.0260

Comments: Pair targets resent highs zone Chf1.0470. The break above will open a way to Chf1.0500. Further level comes on Chf1.0540. The nearest support at today's lows, then is June 12 low at Chf1.0300, than comes Chf1.0260.

Resistance 3: $1.9850
Resistance 2: $1.9800
Resistance 1: $1.9740
Current price: $1.9656
Support 1: $1.9470
Support 2: $1.9400
Support 3: $1.9360

Comments: Minor resistance spotted at дфla Thursday's high on $1.9740, then – near Jun 09 on $1.9800, with a break above this level there is a room for testing $1.9850. The nearest support is $1.9470 with a break under will open the way to $1.9400 (Last Friday’s low) and then – to May 15 lows on $1.9360.

Resistance 3:$1.5820
Resistance 2: $1.5660
Resistance 1: $1.5550
Current price: $1.5522
Support 1: $1.5460
Support 2: $1.5340
Support 3: $1.5300

Comments: Euro failed to break the closest support at $1.5500. The stronger one comes at recent lows on $1.5460, then – on $1.5340 with a break under will open the way to $1.5300 (Friday’s low).

The nearest resistance comes at $1.5550, then – at $1.5660. Stronger level is around $1.5820.

WTI Nymex crude oil rises to $137.46, up over $2.0/barrel on session after OPEC President says that he sees no demand for extra oil production in world oil market, adding prices will remain high into year-end.

"This week saw the market scale back its expectations of a 25-bp rate hike at the Fed's August meeting on the prompting of unnamed senior Fed officials. We believe that this is prudent considering the substantial economic problems that Chairman Bernanke must still manage. However, the Fed will continue to talk tough on inflation, and be ready to act even as the US economy remains sluggish heading into 2009."

EUR/USD $1.5575, $1.5600, $1.5610, $1.5625, $1.5680
USD/JPY Y107.50, Y108.20, Y105.25
EUR/JPY Y168.00

- June Ifo current assessment 108.3 ( May 110.1)
- June Ifo business expectations 94.7 ( May 97.3)

The rate dropping down to $1.5558, currently holding around $1.5560. Bids have been reported in place between $1.5555/50 (50% of the resent upmove), more between $1.5535/30.

-- Services flash PMI 53.3 in June vs 53.8 in May

Jun Mfg PMI Flash Est Forecast 51.1

07:00 France PMI (June) flash - 51.3
07:00 France PMI services (June) flash - 50.7
07:30 Germany PMI (June) flash - 53.5
07:30 Germany PMI services (June) flash - 53.7
08:00 EU(15) PMI (June) flash - 50.5
08:00 EU(15) PMI services (June) flash - 50.6
08:00 Germany IFO business climate index (June) 102.3 103.5