Thursday, July 05, 2007

Pre Market

The markets in Asia are mixed with Shanghai down over 5%. The European indices are more on the bearish side as the ECB keeps rates unchanged while the Bank of England raises interest rates by a quarter percent.

Treasuries fell after a private report based on payroll data showed companies in the U.S. added more jobs last month than economists forecast.

``The ADP number continues to show strength, and it has been a better indicator than it was earlier this year on job growth,'' said Jeffry Feigenwinter, head of U.S. Treasury trading in New York at BNP Paribas Securities Corp. Bloomberg

Planned U.S. layoffs fell by 22 percent in June from May, as manufacturing showed the need for more workers than in the same month last year, an independent report showed on Thursday.

However, the deteriorating U.S. housing market and the subprime mortgage sector's woes are causing cutbacks to accelerate in the financial sector.Reuters

Jones Apparel Group Inc. received a $900 million unsolicited non-binding proposal for its Barneys New York Inc. division from Japanese clothing company Fast Retailing Co.

In June, the Bristol, Pa., apparel wholesaler agreed to sell luxury retailer Barneys for $825 million in cash to Istithmar, the Dubai government's investment arm. Jones Apparel said that agreement is still in effect. WSJ

The Chinese Ministry of Information Industry has given permission for BlackBerry to start selling its addictive email devices in China.

The company got approval last month and expects to have handsets in shops by the end of August. The Register

Gold and silver are on the rise this morning. The US Dollar and the Yen are losing strength while the Euro is gaining. Treasury yields are up.

The pre market futures are showing a bullish open for the US markets. Blackstone Groups bid to buyout Hilton is going to have a bullish effect on the markets and hotel stocks in particular. CHH IHG MAR HOT MHGC are all up this morning on the back of this.

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