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Monthly Archives: September 2011

Eurozone inflation jumps to 3% in September

The weaker euro is having an effect.

FRANKFURT, Germany (AP) – Inflation jumped to a startling 3.0 percent in September in the 17 countries that use the euro, a surprise increase that makes it less likely the European Central Bank will cut interest rates next week to head off a possible recession.

The rate reported Friday from the European Union’s statistics agency was the highest since October 2008 and represented a big increase from August’s 2.5 percent. The scale of the rise was unexpected.

The ECB, the chief monetary authority for the euro countries, has come under pressure to cut interest rates soon to ward off mounting signs of recession in the eurozone economy. A waning global recovery and market turmoil from Europe’s debt crisis are starting to weigh on growth.

Leading economic indicators have been falling to the point where some predict a downturn is imminent, after a weak 0.2 percent growth figure for the second quarter.

Separate figures Friday from the statistics office showed unemployment in the eurozone stuck at 10 percent in August.

A few economists have predicted a cut next week when the ECB’s rate-setting council meets in Berlin. But the council’s 23 members may want to see evidence that inflation is not a threat before they cut. September’s rate, which is well above the ECB’s mandate to keep inflation just below 2 percent, could mean a cut that soon is less likely.

“The latest eurozone inflation and unemployment numbers would appear to reduce the chance of an imminent ECB rate cut,” said Ben May, European economist at Capital Economics.

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Upgrades and Downgrades This Morning


KOP – Koppers Holdings initiated with a Buy at Janney Montgomery Scott

MU – Micron downgraded to Neutral from Outperform at Wedbush

GPN – Global Payment initiated with a Buy at Stifel Nicolaus

AL – Air Lease initiated with a Buy at Citigroup

MRO – Marathon Oil upgraded to Hold at The Benchmark Company

SINA – SINA initiated with a Buy

CEA – China Eastern Airlines upgraded to Neutral from Underweight at HSBC

ZNH – China Southern Airlines upgraded to Overweight from Neutral at HSBC

EIX – Edison upgraded to Buy at Wunderlich

DELL – Dell ests raised at Brean Murray


DOW – Dow Chemical initiated with a Hold at Jefferies

NTRS – Northern Trust ests and target lowered to $41 at RBC Capital Mkts

REG – Regency Centers downgraded to Underperform from Neutral at BofA/Merrill

ITRI – Itron downgraded to Underperform from Neutral at BofA/Merrill

DNKN – Dunkin Brands initiated with a Hold at Argus

CZZ – Cosan downgraded to Equal Weight from Overweight at Morgan Stanley

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Gapping Up and Down This Morning

Gapping up 

LVLT +7.3%, HRBN +5.2%, SQNS +2.3%,CAMP +10.5%, ING +1.4%, KGC +1%,  BAYRY +0.2%,  PANL +0.7%,

GERN +5.1%, GLBC +4.2%, MHP +1.4%,

Gapping down

TEX -5%, CAT -0.9%, HPQ -1.3%, DB -7%, HBC -4.4%, MT -4.3%, ORN -12.8%, IR -9.9%, MU -7.7%, XRTX -5.4%, BCDS –

2.9%,UBS -4.2%, MU -3.2%, BCDS -2.9%, AU -2.3%, BHP -1.6%, RIO -1.3%, HBC -4.4%, STD -2.3%, RIO -2.7%, GFI –

2.5%, AU -2.3%, BBL -2%, BHP -1.4%, SLV -1.1%, BIDU -5.6%, DANG -4.6%, YOKU -3%, SINA -2.7%, SOHU -2.2%, QIHU –

1.6%, SDRL -3.2%,

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