Dow Live Report week starts wednessday
The week starts with a sideways crawl as investors await a number of reports coming in starting this wednessday. My take on this is that they may be weaker than expected. Time will tell.
On another note, AIG pushed financial shares higher on having closed a deal to let MetLife Inc aquire Alico for 15.5 billion dollars. This is part of the American International Group´s plan to tighten the belt, trim some fat and initiate repayments of up to 100 billion dollars it owes in TARP funds from the government.
The Fed is commencing sells of securities from its portfolio with an agreement to buy them back later. The reverse repurchase agreements were forst announced by The Fed in October 2009 and now that “the crisis is over” are coming to effect. A bit premature if you ask me.
Wednessday is the big day. Keep an eye on the wholesale and business inventories, retail sales and consumer sentiment that may have resounding impact on the market if the come in low.
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Asia down oil up and Bernanke in congress
The Dow and most markets have a faltering week as continued signals of recessive difficulties come to light. Tuesday saw Dow Jones Index be a bit stronger with a drop in barely 1 percent compared to S&P500 and Nasdaq stepping down around 1.3 percent.
Closing at 10.282 on Tuesday, The Dow remains close to the magic 10000 and the bearish sentiment is expected to continue. Asia has opened with drops, with Nikkei 255 leading the way at about More »
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Greece gets help from EU in more trouble
EU is ready to support Geece with loans and guarantees such as from the German State-owned Development Bank Kreditanstalt fuer Wiederaufbau (KfW). Any support would come with strong conditions.
Greek Prime Minister George Papandreou, who in recent days met with European politicians, declared in London on Friday evening that the Greek government is planning to implement more austerity measures in accordance with the proposal from EU sources, in order to restore investor confidence in the Greek economy. He also understood that Greece also may need financial assistance, not only the political backing that was promised at a summit last week.
“Financial assistance, if needed,” Papandreou said, according to Reuters. More »
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1 Trillion Gap in State Pension Funds
Dow Live Report Just as we may be gaining strength more clouds gather on the horizon. Here´s a snippet from Market Watch today:
“A train wreck waiting to happen. That’s the only way to describe the mess that state pension systems are in right now, according to a report published today by the Pew Center on the States. According to Pew, there’s a $1 trillion gap between the $3.35 trillion in pension, health care and other retirement benefits states promised their current and retired workers as of fiscal year 2008 and the $2.35 trillion they have on hand to pay them. More »
Popularity: 9% [?]
