MORNING COFFEE

Berkshire Shares To Split.  Berkshire Hathaway (BRK.A/BRK.B) is expected to approve a 50-to-1 share split of its Class B shares tomorrow. The move will bring the share price down to around $65 from Friday's $3,247, making it likely that trading volume will increase and potentially opening up the stock for inclusion in the S&P 500.

India Blames China For Cyber Attack. Indian officials said there was an attempted cyber-attack on Indian government computers, and that Chinese hackers are likely to blame. Chinese officials said such claims "are entirely without basis." This comes on the heals of similar attacks against Google (GOOG) and twenty other US companies.

U.K. Faces Lower Debt Rating.  Standard Life, one of the U.K.'s largest money-management firms  warned that the U.K.'s triple-A rating is "extremely vulnerable" and the economic and political situation is "highly toxic." Earlier this month, Pimco said there's an 80% chance of a U.K. downgrade unless the government changes its deficit reduction plans.

Kraft and Cadbury Come To Terms.  Kraft (KFT) announced a recommended deal to buy Cadbury (CBY) for £11.9 billion ($19.4 billion), or 840 pence per share, in addition to a 10 pence dividend.   Cadbury board members have unanimously recommended to shareholders to accept the offer.

Earnings releases today: 

Citigroup (C) estimates -$0.33, yr ago -$1.72

TD Ameritrade (AMTD) estimates $0.26, yr ago $0.31

Upgrades:

Xilinx  (XLNX) RBC Capital Mkts upgraded the company from Sector Perform to Outperform and raised their target price from $28.00 to $32.00.

McDonalds (MCD) Credit Suisse upgraded the company from Neutral to Outperform and raised their target price from $69.00 to $71.00.

U.S. Steel (X) Deutsche Bank upgraded the company from Hold to Buy and raised their target price from $44.00 to $77.00.

·         Futures: Dow -0.2%. S&P flat. Nasdaq flat. Crude +0.2% to $78.15. Gold+0.7% to $1,138.40.

·         Asia, Nikkei -0.8% to 10,765. Hang Seng +1% to 21,678. Shanghai+0.3% to 3,247. BSE -0.9% to 17,486.

·         Europe at midday, London -1%. Paris -0.9%. Frankfurt -1%.