Dow gained 19, advancers barely ahead of decliners & NAZ rose 17 to just under 3000. The Financial Index lost a fraction, falling below 215. The MLP index fell 2 to the 401s & the REIT index lost 1+ to 262. Junk bond funds were lower but Treasuries rose on growing uncertainties over euro debt bailouts. Oil & gold were higher.
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The € fell to the lowest in almost 8 weeks amid speculation Greece will struggle to win bailout funds, risking the nation’s future in the European monetary bloc. The € declined versus all its 16 major counterparts after Greek Prime Minister Samaras pledged yesterday that proposed wage & pension cuts will be the last as he struggled to win political support for measure to assure the country’s lifeline. The € weakened to under $1.28, the lowest level since Sep 11. Greek society won’t tolerate any more austerity measures, Samaras told lawmakers of his New Democracy Party in Athens, as coalition leaders debate the terms of the latest package. The first parliamentary vote needed to obtain additional aid is scheduled to take place as early as Wed. Spain said it is working on a review of income & spending in its welfare system as it heads toward a deficit amid a deepening economic slump & the highest jobless rate in the EU. It's relying on €100B ($128B) in European aid for its banks & potentially seeking more to shore up its public finances. The lack of euro news in recent weeks does not mean all is well.
Euro Touches Month Low on Concern Greece Won’t Secure Aid
Speaking of Spain, the EU failed to name Luxembourg's top banker to the executive board of the ECB after Spain raised objections over his appointment. The members were expected to approve Yves Mersch joining the 6-person board, overriding the advice of the European Parliament, which wants more women voted in. But officials said Spain unexpectedly voiced concerns on Mersch's nomination. The issue will be left for the EU leaders to discuss at their Nov 22-23 summit, or a later one in Dec, extending a key vacancy at the ECB as the region's financial crisis continues unabated. In an unprecedented move, the EU Parliament voted against Mersch's appointment last month to protest the lack of women among the ECB's top executives. But members seemed ready to vote Mersch in anyway, ignoring the legislature's advice & prompting protests from some EU lawmakers. Spain said that the issue merited a closer look by EU leaders at their summit even though Spain did not have a problem with Mersch in particular as a candidate. It looks like Spain views delay as a plus despite the fact that it could slow bailout money being dispersed.
Spain further delays ECB board nomination AP
General Motors reported a new $11B revolving credit line consisting of a $5½B 3-year facility & a $5½B 5-year facility. This loan package replaces a $5B credit facility maturing in 2015. The expanded credit line “offers improved pricing and terms, and the ability to borrow in currencies other than U.S. dollars.” GM Financial, its captive finance company, will also be able to borrow under the agreement. The larger credit line gives GM borrowing capacity similar to Ford (F), which has $9.3B in revolving credit facilities. GM said 35 financial institutions from 14 countries participated in the syndicated transaction. “The new revolver provides a significant source of backup liquidity and financial flexibility, further bolstering our fortress balance sheet,” CFO Dan Ammann said. The new credit line “represents a strong vote of confidence in the financial strength of our company,” he said. The stock fell 22¢.
GM Reports New $11 Billion Revolver to Replace Existing Credit Line
Dow bounced almost 74 off its early AM lows for no good reason. There was no special economic news & thoughts coming from Europe are negative about more bailouts. The US election looks to be very close & nobody is sure how the markets will react to the outcome. After its big fall on Oct 23, Dow has been pretty much trading flat near 13.1K. That performance will probably continue tomorrow.
AMJ (Alerian MLP Index tracking fund)
Treasury yields:
U.S. 3-month |
0.091% | |
U.S. 2-year |
0.274% | |
U.S. 10-year |
1.684% |
| CLG13.NYM | ....Crude Oil Feb 13 | ...86.72 | ... 0.72 | (0.8%) |
The € fell to the lowest in almost 8 weeks amid speculation Greece will struggle to win bailout funds, risking the nation’s future in the European monetary bloc. The € declined versus all its 16 major counterparts after Greek Prime Minister Samaras pledged yesterday that proposed wage & pension cuts will be the last as he struggled to win political support for measure to assure the country’s lifeline. The € weakened to under $1.28, the lowest level since Sep 11. Greek society won’t tolerate any more austerity measures, Samaras told lawmakers of his New Democracy Party in Athens, as coalition leaders debate the terms of the latest package. The first parliamentary vote needed to obtain additional aid is scheduled to take place as early as Wed. Spain said it is working on a review of income & spending in its welfare system as it heads toward a deficit amid a deepening economic slump & the highest jobless rate in the EU. It's relying on €100B ($128B) in European aid for its banks & potentially seeking more to shore up its public finances. The lack of euro news in recent weeks does not mean all is well.
Euro Touches Month Low on Concern Greece Won’t Secure Aid
Speaking of Spain, the EU failed to name Luxembourg's top banker to the executive board of the ECB after Spain raised objections over his appointment. The members were expected to approve Yves Mersch joining the 6-person board, overriding the advice of the European Parliament, which wants more women voted in. But officials said Spain unexpectedly voiced concerns on Mersch's nomination. The issue will be left for the EU leaders to discuss at their Nov 22-23 summit, or a later one in Dec, extending a key vacancy at the ECB as the region's financial crisis continues unabated. In an unprecedented move, the EU Parliament voted against Mersch's appointment last month to protest the lack of women among the ECB's top executives. But members seemed ready to vote Mersch in anyway, ignoring the legislature's advice & prompting protests from some EU lawmakers. Spain said that the issue merited a closer look by EU leaders at their summit even though Spain did not have a problem with Mersch in particular as a candidate. It looks like Spain views delay as a plus despite the fact that it could slow bailout money being dispersed.
Spain further delays ECB board nomination AP
General Motors reported a new $11B revolving credit line consisting of a $5½B 3-year facility & a $5½B 5-year facility. This loan package replaces a $5B credit facility maturing in 2015. The expanded credit line “offers improved pricing and terms, and the ability to borrow in currencies other than U.S. dollars.” GM Financial, its captive finance company, will also be able to borrow under the agreement. The larger credit line gives GM borrowing capacity similar to Ford (F), which has $9.3B in revolving credit facilities. GM said 35 financial institutions from 14 countries participated in the syndicated transaction. “The new revolver provides a significant source of backup liquidity and financial flexibility, further bolstering our fortress balance sheet,” CFO Dan Ammann said. The new credit line “represents a strong vote of confidence in the financial strength of our company,” he said. The stock fell 22¢.
GM Reports New $11 Billion Revolver to Replace Existing Credit Line
General Motors (GM)
Dow bounced almost 74 off its early AM lows for no good reason. There was no special economic news & thoughts coming from Europe are negative about more bailouts. The US election looks to be very close & nobody is sure how the markets will react to the outcome. After its big fall on Oct 23, Dow has been pretty much trading flat near 13.1K. That performance will probably continue tomorrow.
Dow Jones Industrials
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