Equities

- Greg Lewis initiates coverage on FRO with an UNDERPERFORM and a $10 price target. He expects a sharp earnings decline this year as he is cautious on the crude tanker sector in 2009.
- Glenn Lodden downgrades AP Moller Maersk to SELL (from hold) with target DKK 20, citing uncertainty in Qatar, a challenging container market and unattractive pricing.
- George Glass maintains a double top secret BUY on GMR and is offering a Ton Mile Trader T shirt and an autographed picture of Ton Mile Hall of Famer Diane to anyone who buys GMR today.

Comments from Wharf Rat Urs Dur after presenting at the Marine Money Conference in Dubai
- The Market Disruption Clause in secured debt loan agreements is for the most part not being exercised officially by banks. Given the changes in the global credit and shipping markets, most secured lenders could invoke their market disruption clauses and raise their interest rate margins. However, most banks are indicating that rather than force the issue, they are negotiating with their borrowers and not simply penalizing them with higher interest rates.
- Total ship order cancellations globally are likely to equal up to $250B billion, about three years of business for the shipping banks. While shipping comprises a small portion of some banks’ portfolios, the stresses caused by the weak shipping market help to exert further pressure on other areas within the banks.