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Global Stocks, Dollar Tumble as Auto Bailout Fails; GM Slumps
Chen Shiyin and Adam Haigh
Bloomberg
Friday, Dec 12, 2008
Stocks tumbled around the world and the dollar slumped after
the Senate rejected a bailout for American automakers, threatening
to deepen the global recession. Treasuries rallied and yields
fell to record lows.
The MSCI World Index lost 1.3 percent to 880.41 as of 9:43 a.m.
in London after senators voted down a bill to provide $14 billion
of emergency funds for General Motors Corp. and Chrysler LLC.
GM plunged 28 percent in Germany, while Honda Motor Co. and Daimler
AG sank more than 6 percent. The dollar fell to a 13-year low
against the yen, while the cost of protecting corporate bonds
against default soared. Metals and crude oil slumped.
“The markets are still guided by fear,” said Robert
Drijkoningen, The Hague-based head of the multi-asset group at
ING Investment Management, which has $488 billion under management.
“The markets are in a very dire situation and are in a very
risk- averse situation. The short-term is bleak,” he said
on Bloomberg Television.
(ARTICLE CONTINUES BELOW)
Standard & Poor’s 500 Index futures sank 3.9 percent,
indicating the benchmark for U.S. equities will extend yesterday’s
2.9 percent drop. Europe’s Dow Jones Stoxx 600 Index lost
3.3 percent, while the MSCI Asia Pacific Index fell 3.9 percent.
“It’s over with,” Senate Majority Leader Harry
Reid said on the Senate floor in Washington last night. “I
dread looking at Wall Street tomorrow. It’s not going to
be a pleasant sight.”
‘Betrayed Again’
The MSCI Emerging Markets Index lost 3.2 percent, extending its
2008 drop to 56 percent. China’s CSI 300 Index sank 4.2
percent after a government official said growth will slow more
sharply next quarter.
Full
article here
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INFOWARS:
BECAUSE THERE'S A WAR ON FOR YOUR MIND
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