Monday, September 17, 2007

Morning Note...

Futures slightly lower as focus falls on tomorrow’s Fed meeting.  Most pundits agree we’ll see a ¼ point cut, but the debate continues as to what the Fed’s tone will be.  Some argue that sluggish economic growth, and corrections in the credit and housing markets, are exactly what the Fed wants and will indicate that further cuts are by no means certain. 

Oil down to $78.50 as tropical storms abate.  Ten year note yields 4.49%.   

TIN upgraded at UBS.  DB downgraded at CITI.  MAR upgraded at MSDW.  F upgraded at BEST.  APA added to conviction list at GSCO.

BOBJ hires GSCO and is looking for a buyer.  SNE to focus on consumer electronics, and may look to sell chip production to Toshiba or IBM.  

Barron’s positive on MO breakup.  MSFT appeal rejected by EU.  

Announced Deals: ITT for EDO ($56/share), T-Mobile (Deutsche Telekom AG) merger with SunCom Wireless Holdgings (TPC) for $2.4B in cash and debt

Rockbay News:  RTP extends expiry date for AL acquisition to Oct 23, Av announces that two proxy advisory firms recommend voting for acquisition by Silver Lake and TPG, Karsch Capital pressures CAO to explore strategic alternatives, FDC announces nearly $150mm in charges to implement cost-cutting strategies, ABN Amro to spin off ABN Amro Capital private equity arm, Plexus Holdings signs pack with NHY NO, ABN Amro projects earnings of EU2.3/share, ABN Amro CEO says Barclay’s bid likely to fail, MLCO initiates CP711 with Buy, BEST initiates DAI with Buy, IFX upgraded to overweight at LEHM, RTP Chairman does not expect issues with Australian regulators on AL takeover,

Vito’s Trivia:   During the 19th Century, French peasants sometimes went into the fields and trampled on all the tobacco plants to show their discontent or disdain for the way they were being treated and abused. They would trample the crops with their wooden peasant shoes. Out of this behavior a new word was born. It has entered not only the French vocabulary, but the English vocabulary as well and it's a very common word. A word you could hear nearly every day… what is it?  (hint:  if you know the word for “wooden shoe” in French, you’ll get it…)

Yesterday’s Answer:  Maine is the only of the “lower 48” that borders only one other state.