8:30am Friday, December 09, 2011
-Euro +0.32% vs. dollar.
-Crude +0.24% to $98.58.
-Gold +0.55% to $1722.85.
-EU group agrees on fiscal pact without U.K. EU stocks and U.S. futures were higher premarket after 23 EU nations agreed to tighten their fiscal coordination, with EU countries also agreeing that central banks would loan the IMF €200B ($267B) to lend to distressed members. However, the U.K. wielded its veto to prevent a new treaty after not receiving protection for its financial sector, and warned that the new bloc would not be able to use EU resources. This raises doubts about whether the Eurozone will be able to enforce its new fiscal rules.
-U.S. Company Borrowing Reached Slowest Since ’10 on Europe:
- Europe’s banks won’t cut lending to businesses or households as they adjust their balance sheets to fulfill a 9 percent capital adequacy target, said Christian Clausen, the president of the European Banking Federation.
- French President Nicolas Sarkozy said European Union leaders’ talks were “extremely difficult” and the U.K. made a Treaty of all nations impossible.
-Zynga IPO demand looking good. Zynga (ZNGA) has received enough orders to cover the 100M shares it’s selling in its IPO, Bloomberg reports. IPO advisor Lise Buyer said that while Zynga is “off to a promising start,” it’s too early to draw conclusions. “An indication in the book is not a commitment. If the Eurozone falls apart on the 9th, all bets are off.”
-Gold Traders Most Bullish in a Month on European Debt Crisis:
- Oil Heads for Weekly Decline on Concern Over Economic Growth,
-Soybeans Drop as USDA May Raise Stockpile Estimate; Corn, Wheat Advance
-Copper Advances as Inflation Slows Down in China, World’s Biggest Consumer
-Yum Brands raised to outperform vs market perform at Bernstein
- BNP Paribas SA, Societe Generale SA and Groupe Credit Agricole had their credit ratings cut by Moody’s Investors Service, which cited funding constraints and deteriorating economic conditions amid Europe’s debt crisis.
-Mosaic Cut to Neutral vs Overweight at JPMorgan
- Mexico’s longest-maturity bonds are reversing a record slump relative to shorter-term debt as UBS AG says the securities will benefit from moderate inflation and renewed demand for high-yielding assets.
- An agreement by European Union leaders to boost the International Monetary Fund’s resources may open the door to similar loans by nations from South Korea to Brazil in a global effort to stem the European debt crisis.
- Petrobras uses option to acquire 100% of Cia. de Recuperacao Secundaria
- Petrobras seeks commercial bids for four FPSO conversions, Upstream says
- Brazilian Real pares weekly drop on Europe debt outlook; rate yields rise
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