Futures looking higher this morning on the back of yesterday’s unexpected Fed cuts. Many consider this a very pro-active cut, versus reactionary cuts in the past. As a result, talk of further cuts may be unwarranted.
August housing starts fell 2.6% to a 12-year low.
August CPI fell 0.1% versus expected unchanged. Core rate was up 0.2% which was in line.
Oil at $82/barrel. MSDW reports below expectations.
SIRI/XMSR downgraded at UBS. TWX and VIA.B initiated neutral at CSFB. CCE downgraded at DBAB. DJ reports BEAS not seeking sale of company. DRI trading in line premkt following earnings. WSJ reports CFC seeking to increase deposits to finance mortgage lending and plans to double its branches.
FT reports that TWX may be spinning off cable business.
Rockbay News: ATML initiated with outperform at RAJA, Kerkorian loses DaimlerChrysler appeal, NY NO exec VP steps down, ISS recommends shareholders back CCU deal, STO & NHY NO initiated outperform at BERN, AV deal expected to close by end of October.
Yesterday’s Answer: Early during WW1 the British Army made the switch from cloth caps to metal helmets because of the number of head injuries reported. From then on, all soldiers wore metal helmets. However, soon after the switch the British War Office was shocked to discover that there were more soldiers hospitalized with head injuries than ever before. Assuming the intensity of fighting was relatively constant, can you explain why? It’s simply a matter of statistics… those soldiers who were reported hospitalized with head injuries would have otherwise been dead were it not for the helmets they now wore!