Thursday, September 13, 2007

Morning Note...

Futures up this morning as new claims for unemployment rose slightly from the week before but remain at historically low levels.  Again, there is hope last week’s job data stemmed from caution in hiring rather than recessionary forces.  

Alcatel-Lucent down 10% on lowered guidance.  STM downgraded at LEHM.  MRK upgraded at BofA.  MCD raises dividend by 50%.  MSFT raises dividend by 10%. TGT hires GSCO to review credit card biz.  FT reports that LUKOY plans to spend $9B in Europe.  FHN and WM announced layoffs in their mortgage areas.  NUE warns.  

Oil hits all time high of $80 and is now trading just below at $79.60ish.

10-year note yields 4.42%.

Fed meets Tuesday.  In a bit of a holding pattern until then, barring any sudden news regarding debt-financing for the major deals out there…

Announced Deals: 

Rockbay News:  Gazprom OAO denies interest in VK FP, EU extends review of Fortis-portion of RBS bid for ABN Amro by 10 days – deadline for RBS/Santander portion remains Sept 19th, CSFB neutral-to-positive on RTR LN, TOG CN initiated at outperform by CIBC, NHY NO announces capital reduction, TXU financing talks to begin early next week, FT Germany reports IFX can not afford new acquisitions with its most recent QI shares, IFX upgraded to overweight at LEHM, KKR may delay sale of FDC loans until next week as talks with bankers continue, CSFB reports WMB pipeline IPO is on track for year end,

Vito’s Advanced Trivia:   What unique trait do these words have in common:  Assess, Banana, Dresser, Grammar, Potato, Revive, Uneven,  Voodoo?

Yesterday’s Answer:  The landscaper says, “I planted 5 rows of 4 trees each.”  Bob says, “Ah, so 20 trees.”  “No,” says the landscaper, “it was 10 trees total.”  How is this possible?  Draw a star on a piece of paper… now count the points of the star along with the intersection of each line you drew.  There will be “5 rows” of “4 trees each” but you will only have 10 trees total.  Thus the landscaper planted the trees in the shape of a star.