Stocks slide as eurozone fears spread
Another Spanish region asks for aid. Spain's bond yields surge. The euro sinks to a 2-year low against the dollar. The IMF may not help with additional financing for Greece.
By Andrea Tse
Stocks stumbled Monday on anxiety that Spain will require a full sovereign bailout and that Greece won't be able to satisfy its bailout requirements and will have to exit the eurozone.
U.S. stocks also dropped sharply on Friday as soaring Spanish borrowing costs renewed concerns about Europe's debt crisis.
On Monday, Spanish bonds yields surged to their highest levels since the creation of the euro, even after the continent's finance ministers on Friday backed the details of an aid package worth up to 100 billion euros for Madrid to bolster its troubled banks.
Over the weekend, Murcia became the second Spanish region to ask for government financial aid, following Valencia's request late last week. Up to six regions may be next in line to ask for assistance.
The euro fell to more than a two-year low against the dollar amid worries about the deepening crisis across the eurozone.
Compounding the eurozone anxiety was a report by the German magazine Der Spiegel over the weekend that the International Monetary Fund may decide not to help with any more financing for Greece -- highlighting its growing impatience with the burdens of trying to help hold up the country -- as international inspectors visit Athens beginning Tuesday. They are expected to demand more spending cuts from Greek leaders in exchange for more aid.
The FTSE in London was down 2.1%, and the DAX in Germany was down 1.3%. The Hong Kong Hang Seng index settled down nearly 3%, and the Nikkei in Japan fell 1.86%.
McDonald's (MCD) reported below-consensus quarterly earnings and spoke of slower July same-store sales growth than in the second quarter.
Reporting after Monday's closing bell is chip-maker Texas Instruments (TXN).
Germany's Bayer and Onyx Pharmaceuticals (ONXX) said Monday that Tarceva, a jointly produced drug, in combination with Nexavar tablets for the treatment of hepatocellular carcinoma, a type of liver cancer, failed in further improvement of overall survival.
DreamWorks Animation (DWA) reached a deal to buy Classic Media for $155 million. Classic Media owns such titles as "Casper," "Rudolph the Red-Nosed Reindeer" and "Lassie."
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It covers all race and gender too.
Economic isolation is not the way to go... No country could or should try to exist on their own. Trying to do so would only create an even bigger mess. Government leeches off of business. The government does not have its own money, nor can it create wealth. Free-enterprise and free exchange of goods/services is what creates value and wealth for a nation. The government is simply a free-loader taking a piece of the action between supplier, producer and consumer.
Continual bad paper printing against earlier bad paper = continuation of NOTHING and guaranteed destruction of us all.
EXCEPT THE BANKERS.
Could use a bit more now while we're under investigation and may need to pay a piddly settlement to a few cities. Don't worry, bets against Euro should pay off soon.
- Your buddy,
Looks like America's fat boy's foods, McDonald's needs to branch out further throughout the world to remain profitable.
Oil needs to drop to $19.50 a barrel so Americans can start living again. Call it the "Revival of the 50's."
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[BRIEFING.COM] The S&P 500 settled lower by 0.8% after early strength turned into afternoon weakness.
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