General News:
– Wall Street Journal runs a story about problems compiling in the sub prime market. They mention that Moody’s cut 131 bonds backed by pools of sub prime loans worth $3 billion due to defaults and delinquencies.
– Oil and gasoline futures rose Monday after Nigerian oil unions called a strike for this week, pushing crude prices past Friday’s $68 close.
Asia/Europe:
Asia:
– Bank of Japan’s Fukui said that the Euro is gaining as a reserve currency. He noted that there is strong domestic demand reflected in the CPI.
– Japan’s Economic Minister, Ota, said that there is a firm economic recovery.
– People’s Bank of China, Fan Gang, said that double digit economic growth in China is sustainable with the rapid expansion that is expected over the next few years.
Europe:
– European Central Bank’s, Weber, said that price risks remain on the upside and there may be a need for additional monetary tightening.
– The Bank of England warned that inflation expectations would not decline in line with CPI and will only fall slowly.
Corporate News:
– The London-based educational company, Pearson Plc, is working with General Electric (GE) for a bid for Dow Jones (DJ) that would place GE’s CNBC, the Financial Times, and DJ’s Wall Street Journal under one privately-held venture.
– BHP Billiton Ltd., the world’s biggest mining group, has revised its plans for a $40 billion takeover of aluminum producer Alcoa Inc. (AA).
– According to Bear Stearns, there is a large number of companies in the manufacturing sector that appear to be promising takeover targets, including diversified manufacturers Illinois Tool Works Inc. (ITW), Parker Hannifin Corp. (PH), and farm machinery company Agco (AG).
– Wendy’s (WEN), the third largest hamburger company, reported that it will explore a possible sale of the company.
– Consol Energy (CNX) has purchased Amvest for $335 million.
– American Technical Ceramics (AMK) bought by AVX Corp. (AVX) in a deal worth $231 million.
– Genesco (GCO) was purchased by Finish Line (FINL) for $1.5 billion, winning out the bid from Foot Locker.
– Akzo Nobel proposed a deal to buy ICI, but was rejected when the offer of $14.2 billion was brought up.
– Qatar Airways has awarded a purchase order from BA Airbus worth $27 billion.
– Starbucks (SBUX) announced that it will soon be offering salads to its customers.
– Apple (AAPL) announced that its windows browser, Safari, has potential security breaches.
– Gannett (GCI) announced weak operating statistics.
Favorable Comments:
– Ingersoll-Rand (IR) upgraded at Bear Stearns.
– Monsanto (MON) had its price target raised at Merrill Lynch.
– Amerigroup (AGP) upgraded at Goldman Sachs.
– Crown Castel International (CCI) and Tektronix (TEK) upgraded at Morgan Stanley.
– Argon ST (STST) upgraded at Ray James.
Negative Comments:
– American Tower Corp. (AMT) downgraded at Morgan Stanley.
– The coal industry is downgraded at Goldman Sachs. A few stocks that may be affected are, Arch (ACI), Consol Energy (CNX), Alpha Natural Resources (ANR), and Massey Energy (MEE).
– US Steel (X) downgraded at UBS.
– Wachovia warns that the retail sector is off to a slow start.
– eFunds (EFD) downgraded at Citigroup.
– Western Digital (WDC) downgraded at Morgan Stanley.
