Stocks tumble as Spain seeks help for banks
US indexes follow world shares lower after Spain makes its aid request official. Expectations fade for this week's summit in Europe. New-home sales in the US hit a 2-year high.
By Andrea Tse with wire reports
Stocks slid Monday, following global markets lower, after Spain requested help for its struggling banks.
The euro also fell as traders worried that a two-day summit of European leaders later this week won't produce a credible solution to Spain's banking crisis, The Associated Press reported. Spain isn't saying how much of the 100 billion euros made available by the European Union it will need. Borrowing costs rose for Spain and Italy in a sign that markets are more skeptical that the countries will be able to pay their debts, AP said.
Bank stocks were especially weak, as investors fear those stocks would be the first to feel the impact of a freeze-up in Europe's financial system if Spain isn't able to convince markets that it can rescue its tottering banks, AP said. Energy stocks were also big losers after the price of crude oil fell again.
European markets fell sharply, with stocks are down 3% in Spain and Italy. The FTSE in London was off by 1.15%, and the DAX in Germany was falling by 2.11%.
The Hang Seng index in Hong Kong settled down by 0.51%, and the Nikkei in Japan finished lower by 0.72%.
Demand for new homes in the U.S. rose more than expected in May as mortgage rates dropped, Bloomberg reported. The Commerce Department said purchases climbed to an annual rate 369,000, up 7.6% from April and the most since April 2010. Economists surveyed by Bloomberg News expected a rate of 347,000. The new-home supply dropped to its lowest in more than six years.
In corporate news, Research In Motion (RIMM) could split its business in two by separating its handset manufacturing unit from its messaging network, according to The Sunday Times, which didn't cite sources. RIM may break off the handset division into a separate listed company or try to sell it, the British newspaper said. Amazon (AMZN) and Facebook (FB) were listed as potential buyers, The Sunday Times said.
Anheuser-Busch InBev (BUD), the world's biggest brewer, is in talks to buy the 50% of Corona beer maker Grupo Modelo that it doesn't already own, Reuters reported. The deal could be valued at more than $10 billion.
JPMorgan Chase (JPM) will improve risk management of its Chief Investment Office, the unit that racked up more than $2 billion in trading losses, while avoiding big bets on derivative and private-equity investments, The Wall Street Journal reported, citing people close to the bank. But the CIO intends to stick with a strategy permitting a wide variety of other, potentially risky investments.
An internal review by senior bankers of what went wrong isn't complete, but early conclusions focus on improving the unit's risk-management processes rather than curtailing investment options or broadly reining in risk, the sources said.
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And one might ask why the federal government isn't enforcing the immigration law that rightly belong to its authority?
Do I really have to give an answer?
We are becoming a welfare country with all the Dorlickers depending on the government to take care of everyone's needs, desires, and wants. There is no striving today by Americans.
All of this will come to a bad end. We badly need a change of leadership. Only Mitt can save us from despair and disaster. Vote Mitt get rid of the $h*t!
Mr Fat Cat approves of this message!
Obamacare doesn't. So for it to be found unconstitutional would help get us back to the drawing board quicker, and that would be a good thing.
now the feds can skip enforcment of the fed laws and force the border states to simply suffer under the immigrant floods. anchor babies, food stamps, welfare to the anchor babies since they ARE living here with no job to support them.....
>>>Hmmm. Not at all surprised by the 'ruling'. Now, all see the 'direction' we are going in as a Nation. This is going to get very nasty. If you think 'Chicago' is burning...just wait as Arizona is going to apply the heat and many will get hurt. <<<<
The only idiot on this board is you..............The Arizona laws did NOT usurp the powers of authority given to the Federal government.
1. By Federal mandate, it has always been illegal for any employer to hire illegal immigrants. But, that's right, Obama overturned that law last week when he decided that the illegal immigrant children of illegal immigrant adults are allowed to stay and work in this country WITHOUT applying for and going through the process of becoming legal citizens.
2. States have always mandated that police officers have the right to arrest anyone for probable cause, whether they are illegal or legal citizens.............so ghee, does this over turning mean that states can arrest "legal" citizens for probable cause, but not "illegal" citizens.
3. State requirement for all immigrants to register with the federal government?.............Legal immigrants don't have a problem with that, as a matter of fact, they already are registered with at least 3 branches of the federal government, the department of immigration and the Social Security administration and the IRS.
American Exceptionalism: few people (especially potus and the DNC) understand what that means. They miss a fundamental element of that qualifier by believing that human nature is perfectible. They believe that they can social engineer folks (like Marxism attempts to do) into becoming the perfect human specimen, and thus have a utopian like society. However, our Constitution was written with the understanding that man is fundamentally corrupt and that he/she should not be trusted with the rights and liberties of others. Hence, our Constitution was written to protect the rights and sovereignty of the individual. This correlates directly to what is going on in Europe right now. The reason they can’t get their act together is directly related to their collective entitlement/welfare/socialistic state of mind. When we allow the government to supply all our needs, we become helpless subjects of the State incapable of seeing another way.
HHS has spent $2.7 billion on the healthcare law since oral arguments....
Quick, spend the cash before the SCOTUS strikes down Obamacare.....
”The administration has forged ahead, spending at least $2.7 billion since oral arguments in the case ended on March 28. That’s more than double the amount that was handed out in the three-month period leading up to the arguments, according to a POLITICO review of funding announcements from the Department of Health and Human Services. While much — if not all — of this funding was in the pipeline well before March, the timeline for handing out specific funds is not set in stone, which gives the agency leeway over the kinds of dollars it has been handing out. And the stakes have increased as the date of a Supreme Court ruling approaches, because money that is spent most likely won’t have to be repaid. But remaining funds will dry up if the court strikes down the law. The court is expected to announce its decision this week.” J. Lester Feder, Kathryn Smith, and Kyle Cheney in Politico.
I believe you can be arrested in many States on suspicion alone?
Or a trumped up Charge is always available for a short term detention.
Proving what they, victim or law enforcement did incorrectly is another matter.
I thought all immigrants had to register with some kind of Authorities,,Feds, for visa or Greencards??
Otherwise they are an illegal, therefore "breaking the Laws" of the US, correct?
So I really don't see exactly what the SCOTUS,really did,except to not allow any State laws to usurp Fed law or maybe certain Constitutional Rights.
>>>>I don't care if Obumpa wears a dress, if he get's the US straightend out... <<<
the implied perception of strength is often more important than actual strength.
sitting on The View is a new low for a sitting prez to me. when it happened i figured he was going for the female voter again. now we can't take back that image
roughly 1990 california govenor pete wilson tried to sue the feds for costs imposed on california due to open borders. that law suit was quietly killed. sit in a hospital emergency room and you'll see the magnetude of this open border problem.
i'd love to see these programs have their funding dry up, but suspect that will also be a law suit from the feds on the state forcing states to pick up this welfare tab like it or not.
>>> Well the border states will just have not FUND any of the support programs. Let the federal government fund all these things. <<<
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[BRIEFING.COM] The S&P 500 settled lower by 0.8% after early strength turned into afternoon weakness.
Today's headline event came in the form of Ben Bernanke's testimony before the Joint Economic Committee. During his remarks, Chairman Bernanke said premature tightening of monetary policy could stall the pace of recovery. This followed weeks of conflicting remarks from FOMC members, which sparked speculation regarding possible changes to the Fed's policy course.
However, ... More
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