MORNING COFFEE

Heineken To Buy Femsa.  Heineken (HINKY) reached an agreement to acquire Femsa's (FMX) Cerveza unit, which comprises 100% of Femsa's Mexican beer operations and the 83% of Femsa's Brazilian beer business.  In exchange, Femsa will get a 20% stake in Heineken. The deal is worth around $7.6B, including $2.1B in assumed debt.

China Has Strong Trade Data.  China's exports turned positive in December.  This was the first time in 14 months, rising 17.7% from the previous year, while imports rose 56% on China's demand for raw materials.

TIP Offering Today.  The government will have its biggest offering of TIPS in five years by selling $10 billion in 10-year notes today. The sale of the inflation-protected bonds is a nod to major creditors, such as China and Japan, who are concerned about the effect of federal stimulus spending and ultra-low interest rates.

Genentech Gets FDA  Approval. Genentech (DNA) received FDA approval for a new potential blockbuster drug called Actemra which "marks a major step forward" in the treatment of rheumatoid arthritis.

Allscripts Healthcare Solutions (MDRX): Posted earnings of $0.16 beating estimates by +$0.01 on revenue of $171M (+4.5%) in-line.

·   Futures: Dow +0.3%. S&P +0.4%. Nasdaq +0.3%. Crude +1.3% to $83.84. Gold +1.5% to $1,155.40.

·   Asia, Hang Seng +0.5% to 22,412. Shanghai +0.5% to 3,213. BSE -0.1% to 17,527. Nikkei closed.

·   Europe at midday, London +0.5%. Paris +0.7%. Frankfurt +0.6%.