Tuesday, September 4, 2007

Morning Note...

Futures looking slightly lower this morning after last Friday’s end-of-month strength.  

Light news…no earnings, no major deals announced, and the only economic report of note is the August ISM index at 10am.

Important events on the horizon include the FDC financing and the Fed’s Sept 18th meeting.  While many have called for a rate cut at this next meeting, others contend the overall economy remains on track and that a cut is unwarranted.  Expect that debate to take center stage as Sept 18th nears.  

MLCO cut numbers on many large-cap banks (BAC, WFC, PNC).

Oil trading just under $74/barrel.  10-year note yields 4.51%.


Announced Deals: ASX for ASTSF ($784mm or $14.78/share)

Rockbay News:  UK Times article speculates RBS could invoke MAC clause for ABN Amro if conditions worsen, DJ reports EU to rule on Thomson/Reuters deal Oct 8th, ASX to pay $14.78/share for remaining shares of ASTSF that it does not own, HCR shareholder meeting Oct 17th, KKR to cut price on $16B loans to finance FDC deal, TYC upgraded at DBAB, HOT names new CEO,  UK Times reports banks involved in underwriting TXU deal  have offered to pay the $1B breakup fee to convince KKR and TPG to back out, ATML in agreement with MeshNetics to bundle technology,

Vito’s Advanced Trivia:  How many states are there in America?

Yesterday’s Answer:  The top 5 coffee drinking countries, per capita, are Norway, Finland, Denmark, Sweden, and the Netherlands.  USA is #12.