Pre-market Update

Futures indicate a slightly higher to flat open. The Wholesale Inventories report for October will be released at 10:00 ET, but it won't have any impact as the market will remain preoccupied with the FOMC decision. The majority of people expect a 25 basis point cut in the fed funds and 50 basis point cut in the discount rate. I think aside from cutting rates the tone of statement they make is the key. They have to say we are worried about growth and not inflation and they will ensure the proper working of the financial system by ensuring liquidity. In corporate news, Texas Instruments (TXN) provided a mid-quarter update that raised the low end of its prior guidance ranges for earnings and revenue. Washington Mutual (WM) is getting slammed like Celgene's beat down yesterday. WM is cutting its quarterly dividend to $0.15 from $0.56 and will make an offering of convertible preferred stock in a bid to raise approximately $2.5 billion. Below is some more evidence to dispute talks of global slowing due to US slowdown.


Baosteel likely to inject assets into listed unit

Regency Energy to buy gas gathering system for $139 mln

Prudential Financial reports stake in Virgin Mobile

Airbus says Taiwan's China Airlines to buy A350

Janus Capital ups passive stake in National Financial Partners

Spain's FCC buys two U.S. waste treatment firms

UCBH completes acquisition of Shanghai bank

Absolut vodka maker to be sold via auction -govt

Cadbury sees 2007 sales growth beating its target

OMX Likely to Follow V&S Sale-Sweden's Odell

STMicro to buy Genesis for $336 million in cash

Miner Xstrata open to merger suitors - FT

Lacoste makes cash bid for Sweden's Gant

Shanghai Tunnel seeks Turkey, Mexico deals-source

Wacker Chemie to take over polymer joint ventures

UCBH takes "full stake" in Shanghai ban: WSJ

ArcelorMittal acquires Argentina's MT Majdalani

Shanghai Tunnel seeks Turkey, Mexico deals: source

Dubai's Istithmar eyes subprime hit U.S. firms