Steel production will probably fall this year by the largest margin since the Second World War. Most folks in the steel business have gray and soggy outlooks for 2010. Most, but not Lakshmi Mittal.

Mittal is the chairman and largest owner of ArcelorMittal (NYSE:MT), the world’s largest steel company. Therefore, his words carry some weight in the steel markets. The fact that these words are so contrary to what everyone else seems to think is significant…

Mittal is singing a rosy tune that has the market atwitter. He thinks steel demand could grow more than 10% in 2010, which would be a strong rebound, indeed.

Whether Mittal turns out to be right or not will hinge on what happens in China. China makes up about half of the world’s steel demand. That’s where the controversy begins, because there is just a lot of uncertainty over China’s economy right now.

I think it’s noteworthy

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• Media reports say Microsoft (NASDAQ:MSFT) and Yahoo (NASDAQ:YHOO) have struck a revenue-sharing deal that could be finalized today.  The internet-search alliance could see a fierce competition with rival Google (NASDAQ:GOOG), the reports say

• Time Warner (NYSE:TWX) reported second quarter adjusted earnings 45 cents a share, ahead of consensus estimates of 37 cents a share, on revenues of $6.81 billion, versus estimates of $6.97 billion. The firm maintained its 2009 earnings guidance of flat adjusted results from continuing operations versus $1.98 a year ago

• Moody's (NYSE:MCO) second quarter earnings exceeded estimates by 3 cents at 43 cents as revenues fell 7.6% to $451 million

• Medco Health Solutions (NYSE:MHS) reported second quarter earnings of 69 cents, 4 cents ahead of estimates

• Qwest Communications (NYSE:Q) reported earnings of 13 cents, 3 pennies above estimates, on in-line revenues of $3.1 billion, that was off 9% from a year ago

• Textron (NYSE:TXT) reported second

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* Home Depot (NYSE:HD) reiterated its sales outlook and raised its earnings view for the year.  The firm expects comparable sales to drop about 9% during the fiscal year, with earnings from continuing operations expected flat to down 7%, and adjusted earnings down 20-26%.  It had earlier viewed a 7% profit drop, with adjusted earnings declining 26%

* Talbots (NYSE:TLB) announced plans to eliminate an additional 20% of its workforce after reporting a first quarter loss

* The Swiss government is reportedly in talks with several potential buyers for a $5.5 billion stake in UBS (NYSE:UBS)

* Former AT&T (NYSE:T) chairman and CEO Whitacre was named to head bankrupt automaker General Motors (OTC:GMGMQ)

* S&P lowered its credit rating on the world's largest steelmaker, ArcelorMittal (NYSE:MT), also issuing a negative outlook on the firm

* Malaysian gaming group, Genting, has bought a 3.2% stake in MGM Mirage (NYSE:MGM) for $100 million, as well as $100

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For Immediate Release

Chicago, IL - May 15, 2009 - Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: General Motors (GM), AK Steel (AKS), ArcelorMittal (MT), CME Group (CME) and Intercontinental Exchange (ICE).

Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=4579.

Here are highlights from Thursday's Analyst Blog:

A Green Shoot Starting to Wilt

There are a huge number of obvious sources to cause initial claims to start to rise again. The most notable of these are the effects of the Chrysler bankruptcy and the very high potential for General Motors (GM) to

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* E*Trade (NASDAQ:ETFC) said the company faces regulatory pressure to increase its capital following release of its seventh straight quarterly loss. First quarter results indicated a 41 cent loss per share, one cent more than expected, as revenues fell 6% year-over-year to $497.3 million

* Verizon (NYSE:VZ) shares gained Tuesday amid rumors the company is in talks with Apple (NASDAQ:AAPL) about a possible new iPhone and/or Microsoft (NASDAQ:MSFT) on an iPhone competitor

* Dendreon's (NASDAQ:DNDN) drug Provenge was found to increase lives of advanced prostate cancer victims by 4.1 months, increasing the likelihood of FDA approval

* US Steel (NYSE:X) reported a worse-than-expected first quarter loss of $3.84 per share versus expected loss of $1.69 per share. The company slashed its dividend to 5 cents from 30 cents; expects another operating loss in the second quarter; plans 18 million common share offering and $300 million senior notes due 2014; will curb capital spending

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Inflation is no loger the greatest threat to the short term health of the Indian economy. The global credit crunch has now taken over poll position on the list of worries which are likely to determine the evolution of policy over at the Reserve Bank of India. India's inflation continues to slow and hit a four-month low at the start of October, giving the central bank room to keep injecting cash into the financial system without fanning prices.Wholesale prices rose 11.44 percent in the week to Oct. 4 from a year earlier after gaining 11.8 percent in the previous week, according to data from the commerce ministry last week.

Weaker price gains and a shortage of money in the banking system have allowed the central bank to shift its focus from fighting inflation to stimulating an already slowing economy.

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Inflation is no loger the greatest threat to the short term health of the Indian economy. The global credit crunch has now taken over poll position on the list of worries which are likely to determine the evolution of policy over at the Reserve Bank of India. India's inflation continues to slow and hit a four-month low at the start of October, giving the central bank room to keep injecting cash into the financial system without fanning prices.Wholesale prices rose 11.44 percent in the week to Oct. 4 from a year earlier after gaining 11.8 percent in the previous week, according to data from the commerce ministry last week.

Weaker price gains and a shortage of money in the banking system have allowed the central bank to shift its focus from fighting inflation to stimulating an already slowing economy.

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