Thursday, August 30, 2007

Morning Note...

Futures looking lower this morning as the market swings continue to be slightly exaggerated by a lack of overall liquidity.  

This morning’s chatter includes speculation as to whether the Fed will cut at Sept 18th’s meeting.  Also, WSJ reports KKR is negotiating the terms of the $24B loans to finance FDC.  

Bernanke speaks tomorrow on monetary policy at a conference in Wyoming.  Supposedly the text will be released at 10am ET.

LEHM cut numbers on several brokers this morning (MS, MER, GS, BSC).  Freddie Mac reports 45% drop in earnings and posts $320mm loss on new mortgages.  H&R Block announced Q1 losses doubled.

Also there’s apparently a bankruptcy filing by an Aussie hedge fund that is prompting some Yen carry trade unwinding.  

Announced Deals: 

Rockbay News: WCHV positive on CVS, RTP completes $40B term loan to finance AL acq, HTH started at outperform at MOKE, GCO trading slightly lower premkt on earnings, SHLD trading lower premkt on earnings,

Vito’s Trivia:  How about wine consumption, per capita?  Top 5 countries?

Yesterday’s Answer:  Ireland is the largest consumer of beer, per capita, in the world.  Followed by Germany, Austria, Belgium, and Denmark.  USA ranks 8th