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Morning News Monday July 16th 2007

General News:

–       Fed Chief Bernanke will talk about the inflation threat when he testifies in front of Congress this week.

–       Weather is not turning out as hot as possible, and grain prices are sharply lower as a result.

–       The UK Guardian is reporting that US Vice President Cheney is urging the Bush administration to make military strikes on Iran to stop the Iranian nuclear program.

 

Asia/Europe:

 

Asia:

–          China’s CPI could reach as high as 4%, which could prompt a rate hike.

–          India will contain inflation within 4% even though total capital inflows may rise 26% to $57 billion.

–          Chinese vehicle sales were up with a solid pace intact.  Production numbers were also solid at +28.3%.

–          New Zealand posted strong inflation numbers, which could lead to a rate hike.  Watch the currency closely.

 

Europe:

–          ECB’s, Quaden, says that the direction of interest rates will be less obvious.

–          German June CPU rose 1.8% year over year, which is in line with expectations.

 

Corporate News:

–          Ford Motor Co. (F), responding to reports that it’s putting its Volvo (VOLV) unit up for sale, said it is not negotiating with anyone to sell the Swedish automaker.

–          A trio of banks led by Royal Bank of Scotland PLC said it would re-bid 71.1 billion euros for ABN Amro Holding NV, marking the largest takeover battle in the history of the financial industry.

–          BHP Billiton (BHP) may be interested in Alcoa (AA).

–          Mattel Inc. reported a 15% increase in its 2nd quarter profit on global sales of Barbie dolls and Hot Wheels toy cars, although U.S. Barbie sales fell in the U.S. for the second consecutive quarter.

–          ValuClick (VCLK) reported that it will be buying Mezimedia for $100 million in cash.

–          Wireless telecommunications company Vodafone Group Plc (VOD) denied a report that it was considering a $160 billion bid for Verizon Communications Inc. (VZ).

–          IHOP Corp. (IHOP), said it has agreed to buy Applebee’s International Inc. (APPB) for about $1.9 billion in cash.

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