WALL STREET JOURNAL: According to people briefed on the discussions, the Wall Street Journal reported that Google (GOOG) is in discussions to start a venture-capital arm that will be led by David Drummond, senior vice president of corporate development and chief legal officer. Additionally,Google reportedly hired William Maris to set up the venture, although how the group will be structured currently remains unclear…The Wall Street Journal also reported that as part of its latest cost-cutting initiative, General Motors (GM) will cut 5,000 jobs by November 1, or around 15% of its North American white-collar workforce. Additionally, in a move that could hurt its U.S. sales further, the automaker has confirmed plans to cut back on its leasing operations. GM plans to keep offering subsidized leases on vehicles in the U.S., but will exclude certain vehicles and adjust some of the terms…FINANCIAL TIMES: According to the Financial Times, Morgan Stanley (MS) will use $1B saved from cutting 4,800 jobs this year to bolster its presence in areas that include risk management and derivatives and to hire top-level executives…BLOOMBERG: Bloomberg reported that Luc Francois, the former head of equities at Societe Generale (SCGLY), will join Morgan Stanley to run its European equities and global equity derivatives. A source familiar with the matter said Bear Stearns Co’s (JPM) Thomas Wong will run Morgan Stanley’s proprietary trading and Eric Cole, also from Bear, will run distressed sales, trading and research…

Google may expand its footprint with a new venture-capital arm-WSJ
According to people briefed on the discussions, the Wall Street Journal reports that Google (GOOG) is in discussions to start a venture-capital arm that will be led by David Drummond, senior vice president of corporate development and chief legal officer. Additionally, Google has reportedly hired William Maris to set up the venture, although how the group will be structured currently remains unclear. One advantage Google has is the ability to offer sizable technical resources and already has a brand known by start-ups. The sources were careful to warn that plans for the venture, which would make Google the largest technology giant to take on a “more formal” role and could help it expand some of its online-software products geared at small businesses, may still fall through.

Brokerages to form large energy trading company-FT
Six independent American over-the-counter brokerages are going to announce that they will merge to create an interdealer brokerage that will be a top trader of North American energy futures. The brokerages hope the merger will help prevent stricter regulation of their energy trades by the U.S. government.

Visa-V: Believe Q3 is strong enough to keep recent share gains@JPMS
JP Morgan raised their estimates and reiterates an Overweight rating on the stock.

ImClone-IMCL volatility Flat into BMY $60 cash bid
IMCL is recently trading up $18.91 to $65 in pre-open trading. BMY offered to acquire IMCL for $60 per shares. BMY owns 17% of IMCL. IMCL over all option implied volatility of 42 is near its 26-week average of 45 according to Track Data, suggesting non-directional price movement.

Biotech: Believe smaller companies with partnerships will go first@BWS Financial
BWS believes the deal between Bristol Myers (BMY) and Imclone (IMCL) could trigger further consolidation in the biotechnology industry. The firm thinks smaller biotech companies that have formed collaborations are likely the first ones to be bought and speculate the next company to be bought could be Onyx Pharmaceuticals (ONXX) or OSI Pharmaceuticals (OSIP).

First Solar-FSLR target raised to $447 from $381@PACS
Pacific Crest raised their estimates to reflect FSLR’s outperformance in Q2 and raised guidance. Shares remain Outperform rated.

E&P Stocks look cheap based on reserves@LYON
Calyon said most E&P valuations reflect only proved reserves and look cheap when unproved reserves are factored. The firm said on a proved basis APC, UNT, and APA have the most upside and that BBC, APC, and RRC have the most when unproved reserves are included. The firm’s top picks are RRC and APC.

Garmin-GRMN: Remain on sidelines despite low valuation@NEED
Needham admits that shares look cheap following the company’s soft Q2 results, but they see a lack of catalysts to reverse the slide of PNDs. Shares remain Hold rated.

OSI Pharma-OSIP: Moving up on ImClone
OSI Pharma’s (OSIP) Tarceva is a competitor to ImClone’s Erbitux. On news of BMY’s offer to buy IMCL, the shares are up +3.08% in the early going. Resistance levels to watch as potential upside objectives are at $52.00, 52.95, $54.00, $54.98, $56.25, $57.13, $59.00. Support is at $50.94 based on current pre-market price. It would be bearish if this level were broken to the downside.