Tuesday, September 11, 2007

Morning Note...

Futures up this morning on the back of overseas strength following positive commentary by Fed Governor Mishkin at last night’s 8pm speech.  Interesting that futures are discounting China’s near 5% drop overnight on inflation fears (6.5%) and the Central Bank’s need to raise rates to stem inflation.  

Bernanke speaks in Berlin at 11am ET.  July trade deficit came in at $59.2B and was in-line with expectations.  

GSCO ups beverage sector to attractive from neutral.  TMA mortgage co. upgraded at UBS.  MAR & HOT upgraded at TWPT.  AA sees $10mm Hurricane Dean impact, mostly in Q3.  NY Post reports that CFC working with GSCO on a multi-billion dollar bailout plan.   Icahn raises TIN stake.

 Retail sales and industrial production numbers Friday.

Announced Deals: 

Rockbay News:  DJ quotes industry analysts who believe M&A will continue in the mining sector but are doubtful about mega-deals such as BHP/RIO for RTP, dR reports ADS FDIC decision due in October, AA estimates lowered at JPM to reflect aluminum pricing, RBC neutral on UFS day 1 presentation, MDT/KYPH announce early termination of waiting period by both the FTC and the DoJ, WEN target lowered at UBS to reflect “lower likely sale price,” DAI GY to up dividend and R&D spending, Toyota Prez denies interest in DAI or any other possible acquisition, TFX acquires NHY NO subsidiary

Vito’s Advanced Trivia:  In honor of September 11th… Most of the WTC steel (180,000 tons) was sold as scrap.  Where was it sent?  (For a very interesting and thought-provoking 9/11 quiz, go here:  http://www.funtrivia.com/playquiz/quiz124969e50840.html)

Yesterday’s Answer:  You’ll never look at JELL-O the same way again… Gelatin is made from boiling down animal bones and hides… Many strict vegetarians don’t eat it for that reason.