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Morning News Friday June 22nd 2007

General News:

–          Blackstone’s IPO opens 20% higher in morning trading.

–          Bear Stearns (BSC) will use $3.2 billion to stabilize their High Grade Structured Credit Strategies Fund.  The re-pricing of CDOs will cause massive losses in the market.

–          Wall Street Journal is reporting that the FED economists predict more volatility in family income.

–          Bloomberg is speculating that the Chinese may invest $100 billion in foreign assets after a rule was lifted by the government restricting overseas investments.

–          Germany arrested Islamic radicals attempting to plan a suicide bombing mission.

–          Wall Street Journal reports that Congress is planning to hike tax rates for the “rich”.  WSJ says that the private-equity tax move is just the tip of the sword.

–          Oil and gasoline futures rose Friday on concerns about Iran’s nuclear capabilities and on news that talks to end a general strike in Nigeria had failed.

–          Democrats were elated as they took steps to reduce U.S. dependence on oil as the Senate approved a bill calling for more ethanol production and higher gas mileage limits.

–          Fed holding of money flow rose $11.7 billion.  Treasuries rose $4.28 billion.

–          US equity mutual funds had an inflow of $1.4 billion.  However, US ETFs had an outflow of $4.5 billion.

–          Non-US equity mutual funds rose $4.5 billion, and non-US ETFs had an unflow of $927 million.

 

Asia/Europe:

 

Asia:

–          Speculation of a rate hike pushed Chinese stocks down overnight.  Look for a possible rate hike today.

–          An official at the Chinese National Development and Reform Commission said he was surprised that the People’s Bank of China did not raise rates last week and that a rate hike could come at any time.

–          Subsidies are being offered for Chinese pork.

–          Japanese supermarket sales fell 0.6% month over month, which counts for the 17th straight month of downturns.

–          India’s money supply rose 21% in the two weeks ending June 8th.

–          Indian bank loans rose by 71 billion rupees.

 

Europe:

–          German business confidence fell more than economists forecast in June after a rebound in oil prices and higher borrowing costs raised concern economic growth may slow from the fastest pace in six years.

–          Airbus SAS, the world’s largest maker of commercial aircraft, won a $3.7 billion contract from Singapore Airlines Ltd. for 20 new A350s on the last day of the Paris Air Show, capping off a week of gains against Boeing Co.

–          OAO Gazprom took control of BP Plc’s stake in a Siberian natural gas deposit large enough to supply Asia for five years.

 

Corporate News:

–          InterContinentalExchange (ICE) will purchase the Winnipeg exchange.

–          Vodafone (VD) announced that it may sell its mobile stake to Verizon (VZ).

–          WFC is going to buy CIT construction unit.

–          (ERIC) signed a $1 billion deal with China Unicom.

–          JBL posted a positive profit report.

–          BEN will buyback 10 million shares.

–          COGN posted negative guidance and was downgraded at Bank of America.

Favorable Comments:

–          Ryder System (R) upgraded at Stifel

–          Brush Engineered Materials (BW) and Darden Restaurants (DRI) upgraded at Matrix.

–          Navistar (NAVZ) upgraded at UBS.

–          AES Corp. (AES), Agrium (AGU), and Terra Industries (TRA) upgraded at Citigroup.

–          AGL Resources (ATG) upgraded at AG Edwards.

–          Albemarle (ALB) and FirstEnergy (FE) upgraded at Banc of America.

–          Bally Technologies (BYI) upgraded at Roth.

–          Greenhill (GHL) and Volterra Semi (VLTR) upgraded at Wachovia.

–          Jabil Circuit (JBL) upgraded at RBC.

–          MGM Mirage upgraded at CIBC and Susquehanna.

–          Newfield Exploration (NFX) upgraded at Canaccord Adams.

–          Novamed (NOVA) upgraded at Jefferies.

–          Pentair (PNR) upgraded at Robert W. Baird.

–          Rockwood Holding upgraded at JP Morgan.

 

Negative Comments:

–          Abercrombie (ANF) downgraded at Lehmans.

–          Analog Devices (ADI) downgraded at Piper Jaffray.

–          Big 5 Sports (BGFV) downgraded at UBS.

–          Canadian National Rail (CNI) and Methanex (MEOH) downgraded at CIBC.

–          Carmike Cinemas (CKEC), Cinemark (CNK), Regal Entertainment (RGC) and Cognos (COGN) downgraded at Banc of America.

–          Chipotle Mexican Grill (CMG) downgraded at JP Morgan.

–          Equity Inns (ENN) downgraded at KeyBanc, Friedman Billings, JMP, and AG Edwards.

–          Fairchild Semi (FCS), Linear Tech (LLTC) and Fidelity National (FNF) downgraded at Piper Jaffray.

–          Fuel-Tech (FTEK) downgraded at Roth.

–          InPhonic (INPC) downgraded at Deutsche Bank.

–          Nuance Communications (NUAN) and Starbucks (SBUX) downgraded at Friedman Billings.

–          Pier 1 Imports (PIR) downgraded at DA Davidson.

–          PrivateBancorp (PVTB) downgraded at Robert W. Baird.

–          Southern (SO) downgraded at HSBC.

–          Talbots (TLB) downgraded at Matrix.

–          United PanAm Financial (UPFC) downgraded at Jefferies.

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