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DealBreaking: Quiet, Too Quiet The Week That Might Be

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After last week’s rocking and rolling—the up-down tension of inflation and bond yields, a legislative attack on private equity, and divergent earnings reports from Lehman and Goldman—this week may seem a bit quiet. There will be some news about May housing starts tomorrow, and earnings reports from eight S&P 500 companies, but few expect any major news.
Which makes us nervous. Without the interference of major earnings announcements, national or religious holiday, or scary items on the economic calendar, this would be a good week to announce new deals. Unless, of course, the return of volatility to the bond market has everyone too nervous to price anything. But the alternative to new deals is new moves in existing deals. We’re watching Alcan-Alcoa, Dow Jones-Pearson-Random Rich Guys-News Corp, CBOT-ICE-Merc, and the ABN Amro-Barclarys-BofA-LaSalle-Royal Bank of Scotland Deals. What are you watching? Email us at
There are three big-ish earnings reports this week. On Wednesday Morgan Stanley announces its second quarter earnings. They are expected to come in with a Goldilocks “just right” number between Lehman’s bafflingly hot second quarter and the coolness of Mama Bear and Papa Goldman’s reports. And we’ll have reports from some companies that may indicate ‘consumer sentiment’ better than those consumer sentiment polls that come in from the Midwest. Best Buy and Circuit City report, and so we'll learning whether we're all still filling out living rooms with boxes that buzz and shine lights while emptying our wallets. Fed Ex will also come in—and here we’ll offer a rare prediction: slower online sales will drag down Fed Ex’s numbers.
Meanwhile, the much heralded Blackstone IPO slouches ever closer Wall Street. It has scheduled its IPO for sometime next week.