MORNING COFFEE

World Bank Tax. The U.S. and European governments are discussing plans to tax large banks in order to cover the costs of any future bailouts. Germany and Sweden want to use the money to create a "resolution authority," while France wants to collect the fees after a crisis has already passed.  The U.S. is split, with Congress favoring a resolution authority and the White House leaning towards a post-crisis option.

Geely to Buy Volvo. China's Geely Holding Group has agreed to buy Ford's (F) Volvo unit for $1.8 billion, completing 18 months of negotiations and marking the largest overseas acquisition by a Chinese automaker.

Government to Sell Citi Stake.n The U.S. Treasury Department plans to sell the government’s 27 percent stake in Citicgroup (C) this year, the sale could give the government a $8.2 billion profit based on the current price.

“Treasury intends to sell its Citigroup common shares into the market through various means in an orderly and measured fashion,” the Treasury said in a statement in Washington today. “The manner, amount and timing of the sales under the plan is dependent upon a number of factors.”

Upgrades

SAP AG (SAP): Broadpoint AmTech raised their rating from Neutral to Buy and placed a target price of $57.00 on the company.

EOG Resources (EOG): RBC Capital Markets raised their rating from Sector Perform to Outperform.

Downgrades

Kellogg (K): BMO Capital Markets lowered their rating from Outperform to Market Perform.

Synovus (SNV): FBR Capital lowered their rating from Market Perform to Underperform and placed a target price of $2.50 on the company.

Coverage Reiterated/Price Target Changed

Netflix (NFLX): Caris & Company reiterated their Above Average rating and raised their target price from $74.00 to $87.50.

Finish Line (FINL): Wedbush reiterated their Outperform rating and raised their target price from $14.50 to $21.00

·         Futures: Dow +0.4%. S&P +0.6%. Nasdaq +0.5%. Crude +0.9% to $80.69. Gold +0.6% to $1111.30.

·         Asia: Nikkei -0.1% to 10986. Hang Seng +0.9% to 21237. Shanghai +2.1% to 3124. BSE +0.4% to 17711.

·         Europe: London -0.3% to 5710. Paris +0.4% to 4004. Frankfurt +0.7% to 6162.