November 7, 2011 in Financial by Frank.LaMantia
Italy is seeing negative press this morning as the crisis takes aim at them. Italian bonds have reached their highest since 1997. The Prime Minister, Silvio Berlusconi, has until tomorrow to win over members of parliament that are undecided and to stop party rebels from taking down the current government. (1) Asian markets were down and the U.S. and European markets are down in the premarket. Greek prime minister Papandreou is looking to form a new national unity government which could carry Greece through elections and help pass austerity measures. Papademos is expected to be the new prime minister in the near future. Data coming out of Germany is showing that it is not the most stable country in Europe. In September industrial production fell 1% and for the month of October it fell 2.7%. Today, the consumer credit report for the month of September will be announced and is expected to be $5 billion. Berkshire had $1.59 billion in losses in derivative positions which showed a drop in net earnings to $2.29 billion.
BP’s agreement to sell its $7.1 billion stake in Argentinean Pan American Energy to China’s CNOOC Ltd. has failed. Atlas Energy will announce earnings today and is expected to earn .04 cents a share and MFA Financials is expected to post 0.25 a cents a share. (2)
Some financial people believe in the system and everything it stands for. This trader wants to support this system but feels if Europe collapses that it could cause a calamity that this world has not seen since the Great Depression. Companies seem to be reducing short and long positions. This could mean that companies are stocking up on cash.
***chart courtesy Gecko Software’s Track n’ Trade Pro
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