Re: Bad day ahead on Wall Street after US auto bailout killed by Republicons -- early morning, 12 Dec -- before US markets open, stocks, dollar markets worldwide are crashing.

On Dec 12, 8:34 am, Tab182 <tabernacle2...@xxxxxxxxxxx> wrote:
On Dec 12, 7:20 am, "Kickin' Ass & Takin' Names"





<PopUlist...@xxxxxxxxxxx> wrote:
http://www.bloomberg.com/apps/news?pid=20601087&sid=aC_bejd4WGqI&refe...

Dec. 12 (Bloomberg) -- Stocks tumbled around the world and the dollar
slumped after the Senate rejected a bailout for American automakers,
threatening to deepen the global recession. Treasuries rallied and
yields fell to record lows.

The MSCI World Index lost 1.3 percent to 880.41 as of 9:43 a.m. in
London after senators voted down a bill to provide $14 billion of
emergency funds for General Motors Corp. and Chrysler LLC. GM plunged
28 percent in Germany, while Honda Motor Co. and Daimler AG sank more
than 6 percent. The dollar fell to a 13-year low against the yen,
while the cost of protecting corporate bonds against default soared.
Metals and crude oil slumped.

“The markets are still guided by fear,” said Robert Drijkoningen, The
Hague-based head of the multi-asset group at ING Investment
Management, which has $488 billion under management. “The markets are
in a very dire situation and are in a very risk- averse situation. The
short-term is bleak,” he said on Bloomberg Television.

Standard & Poor’s 500 Index futures sank 3.9 percent, indicating the
benchmark for U.S. equities will extend yesterday’s 2.9 percent drop.
Europe’s Dow Jones Stoxx 600 Index lost 3.3 percent, while the MSCI
Asia Pacific Index fell 3.9 percent.

“It’s over with,” Senate Majority Leader Harry Reid said on the Senate
floor in Washington last night. “I dread looking at Wall Street
tomorrow. It’s not going to be a pleasant sight.”

‘Betrayed Again’

The MSCI Emerging Markets Index lost 3.2 percent, extending its 2008
drop to 56 percent. China’s CSI 300 Index sank 4.2 percent after a
government official said growth will slow more sharply next quarter.

The MSCI World Index of 23 developed markets has lost 45 percent this
year, its worst annual retreat on record, as writedowns and credit
losses neared $1 trillion amid the worsening financial crisis.
Spending plans by governments from the U.S. to Australia spurred a 14
percent rally in the index since Nov. 20.

The S&P 500 earlier this week had marked a technical end to a 14-month
bear market, extending its rebound from an 11-year low last month to
as much as 21 percent, as President-elect Barack Obama stepped up
efforts to pull the economy out of a recession.

“Investors have been betrayed again by U.S. politicians,” said
Yasuhiro Miyata, who helps manage about $109 billion at DIAM Co. in
Tokyo. “Even with the knowledge that we are in the midst of a crisis,
they were unable to come to an agreement and investors have decided to
abandon ship.”

GM, Ford, BMW

GM slid 28 percent to $2.98, while Ford Motor Co. lost 9.3 percent to
$2.63. Daimler sank 6.5 percent to 23.49 euros and Bayerische Motoren
Werke AG fell 4.4 percent to 21.46 euros.

The U.S. is the No. 1 market for BMW and the second-biggest for
Daimler’s Mercedes-Benz. Both carmakers have factories there, and
while they and other German brands control about 7 percent of the
American market, they compete more with each other than with GM and
Ford.

Honda, Japan’s second-largest automaker, tumbled 12 percent to 1,921
yen, the largest drop since Oct. 31. Hyundai Motor Co., South Korea’s
No. 1 automaker, dropped 9.3 percent to 42,000 won.

“A potential failure in U.S. automakers will have immediate
reverberations throughout the U.S. economy, which will affect demand
for Asian products and add to recessionary pressures,” said Shane
Oliver, Sydney-based head of investment strategy at AMP Capital
Investors, which has $81 billion.

Denso Corp., the world’s biggest listed auto-parts maker, plunged 12
percent to 1,430 yen. Aisin Seiki Co., Japan’s largest maker of car
transmissions, sank 13 percent to 1,116 yen.

Dollar, Platinum

The U.S. dollar weakened to 88.53 against the yen, the lowest since
Aug. 2, 1995, before trading at 89.65 in London. Credit- default
swaps, contracts conceived to protect bondholders against default, on
the Markit iTraxx Europe index of 125 companies with investment-grade
ratings increased 12.5 basis points to 212, according to JPMorgan
Chase & Co. prices in London. That’s up from about 50 basis points at
the start of the year.

Platinum, used to make catalytic converters for car and truck exhaust
systems, fell as much as 3.4 percent in London, while gold slipped
from its highest in more than two weeks. Crude oil dropped as much as
5.9 percent, trimming yesterday’s 10 percent rally.

Yields on 10-year Treasury notes fell to 2.48 percent, the lowest
level since 1954.

“Treasuries are clearly showing signs of flight to quality as people
generally expected the bailout to succeed,” said Kevin Yang, who helps
oversee about $1 billion of U.S. bonds in Taipei at Shinkong Life
Insurance Co. “Yields will go lower in the very short-term as stocks
test new lows.”

‘Lose Your Job’

Canon Inc., the world’s biggest digital-camera maker, declined 5.8
percent to 2,590 yen. The number of Americans filing first-time claims
for unemployment benefits surged to the highest level since November
1982, a report showed yesterday.

“If you lose your job, you don’t spend. If you see others lose their
jobs, you don’t spend either,” said Daphne Roth, the Singapore-based
head of equity research at ABN Amro Private Bank, which manages about
$27 billion of Asian assets.

China’s growth will slow more sharply in the first quarter of 2009
before stabilizing and then recovering, Liu He, vice minister of the
Central Leading Group on Financial and Economic Affairs said in
Beijing today. Retail sales rose 20.8 percent in November, the slowest
pace in nine months, the National Bureau of Statistics also said
today. China Mobile, the world’s biggest phone company by value, lost
4.7 percent to HK$78.50.

Maybe we should go back and see if them Dirty Traitor Senate
Republickcans have a family history of supporting the Japs and the
NAZI's during WW-2?- Hide quoted text -

- Show quoted text -

Such an investigation would lead DIRECTLY to one George W. Bush whose
grandfather, Prescott Bush, was a big investor in Hitler's Germany and
who stopped trading with the Nazis only when the Trading With the
Enemy Act was enacted.

.

Relevant Pages
Loading