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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Just like the banking industry having ZERO incentive to not continue to screw up our economy. Why would they change???
WOW! Good for you!!!
Holding individuals accountable, and not playing the partisan stereotyping game.
Good job by you!
Yes 2 SICK.....I have never forgave her for that comment.....
And I still DO NOT LIKE HER, because of that, along with, in my opinion she is a racist.
While there are certainly illegals with kids that are US Citizens, there's nothing compelling suggesting that it's any more than a result of trying to live here.
Now.. birth tourism is popular for the wealthy, particularly those who's native countries offer dual citizenship. Doing so makes it much easier for those children to eventually attend US schools and get jobs with US companies.
>>>How can we have equality with UNEQUAL taxes?<<<
If you use and benefit disprotionately from our common investment, then perhaps you should bear a disprotionatel amount of the burden.
If elected President, I will cut taxes for the rich; subsidize businesses owned by the rich; deregulate everything; outsource millions of jobs; increase profits for the rich; make every State a "Right to Fire" State; end minimum age labor laws; cut all the peons wages and make them slave wages; end Social Security, Disability and Medicare for the useless old and diassabled and Welfare and Medicaid for the peons and their snotty children; Increase welfare for my rich buddies; destroy and close down all the Unions; deport every race, except the rich caucasions and the uneducated poor brainwashed Caucasian hicks, hillbillies and rednecks that love me and will gladly work as my slaves; Increase military spending; create wars in the name of profits,... ummm,... I mean democracy; open pipelines galore here in the U.S. regardless of any destruction to wildlife and the environment; execute all prisoners, regardless of their petty or severe crimes and close down 95% of all prisons across my.... our great nation, thus saving billions of dollars in the process; make Mormonism my.... our Country's National Religion; make polygamy legal; legalize drugs dude; and proclaim me King of Kings in my..... our new Kingdom that I will call: "The Wall Street Corporate Fascist Kingdom of America".
Satan bless America!
Your beloved King to be,
"We did all learn that back in '08 didn't we?"
I didn't believe everything Obama said, because I knew better. Fortunately he did deliver on the most important things, like keeping us from falling into a depression, losing 700,000 jobs a MONTH, getting the uninsured insured (hopefully) and fixing insurance exclusions, fixing the investment/banking industry (only partially), cracking down on terrorists (no, I didn't believe Guantanamo would be closed), working with Republicans (was NEVER going to work), fixing unemployment? (Obama said he would (just like Romney) but told the truth when he said we were getting lazy and that we hadn't upgraded our skills or infrastructure- but was lambasted for it).
Obama did fall way short when he said he would fix the housing debacle (he never took the advice seriously he got from Elizabeth Warren), and, in pushing more for campaign finance reform.
I personally believe the SCOTUS, is only in place to judge any Laws passed for Constitutionality..
To interpret applications under the Constitution....
Congress...House and Senate, along with the Executive...Construct and Mandate Laws, with Executive Powers to sign and execute....
For years I believe the SCOTUS, comes close or does overstep their Boundries, a power that should not be abused without repercussions....They are not infallible.
>>>We have a very sad situtaton, now. We have an entire society going down the drain that we all built. It is now in the 'hands' of crooks and thieves and all will suffer the consequences coming soon. It saddens me. <<<
And the most vile thing that you can do, regarless of what your opinions are, is to throw up your hands and give up.
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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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