european debt crisis

G20 At Work On Second Global Rescue Package

Stock Market NewsOver the weekend some of the world’s biggest economies worked on a second global rescue package worth nearly $2 trillion. This package will attempt to stop the euro zone debt crisis from affecting the global economy. The G20 says the package will strengthen Europe’s bailout fund. The IMF would then use the money as it sees fit to handle anymore European crisis. The Group of 20 countries are working on this package to convince the financial markets that the European debt crisis can and will be solved.

Many of the G20 members want to see a clear commitment from the euro-zone. British finance minister George Osborn said, “We are prepared to consider IMF resources but only once we see the color of the euro-zone money, and we have not seen the color of the euro-zone money,” in an interview with Sky TV. “I think that quid pro quo will be clearly established here in Mexico City.” [Read more...]

European Crisis Will Take Years To Solve – Angela Merkel

The German Chancellor, Angela Merkel, is urging a long-term approach that will rely on tougher fiscal rules. On Friday, Merkel said the debt crisis can not be solved overnight and could take years to solve.

“The government has made clear that the European debt crisis can’t be solved in one fell swoop overnight. There is no miracle solution. There is no easy, rapid solution,” Merkel told parliament. “Resolving the sovereign debt crisis is a process and this process will take years.”

Her comments come a week before European leaders are set to meet in Brussels with what may are calling a make-or-break summit.

Euro bonds have been seen as a popular way to fix the problem, but Merkel has rejected this idea every time it comes up and cautions against any steps that could hurt the credibility of the European Central Bank. Germany has been under increasing pressure to take bolder steps to resolve this crisis before it engulfs the entire euro zone.

Merkel however, likens the crisis to a marathon, warning Europe against rushing out of the gate with fiscal measures that would hurt them later down the road.

“Marathon runners often say that the run becomes especially difficult at the 35 kilometer mark, but they also say that reaching the finish line is possible if you are conscious of the full challenge from the very start and approach it accordingly,” Merkel told lawmakers in the Bundestag lower house. She added, “The one who starts fastest isn’t necessarily the most successful. It is the one who is aware of what is involved in running the full distance.”

Merkel called euro bonds “pointless” and the people who are calling for them have “not understood the nature of the crisis”.

Investors are not concerned by Europe today if the futures are any indications. The stock market is set to open 1% higher today after positive jobs data was released today. The unemployment rate dropped from 9% to 8.6%.

European Debt Crisis and Lower GDP Rules the Stock Market Today

The euro zone debt crisis continues to weigh heavily on investors today and has sent the markets down again. Each of the major indexes are off about 0.5% in midday trading. Another thing weighing on the markets, is the revised GDP numbers for the third quarter. It had been previously estimated GDP would see growth of 2.5%, but it has now been revised down to 2%. This is the Commerce Department’s second estimate, let’s hope they don’t revise it again later. If this growth holds true, it will be a step-up from last quarter’s growth of 1.3%.

The debt crisis in Europe is a huge problem that needs to be fixed and fixed sooner rather than later. Every day this crisis goes on is just more uncertainty in the markets and more risk of the crisis spreading even more. Many investors believe the ECB needs to take more action and try things until they find something that works.

Short term yields in Spain jumped this morning to over 5%. These same yields were at 2.3% last month. The markets were hoping to get some details on the new prime minister’s austerity plans, but Mariano Rajoy will not give details until he is sworn in right before Christmas. These levels on the yields are worrisome as Greece and Portugal were at these same levels before being bailed out by the rest of the eurozone. The problem here, is that Spain maybe to big to save.

Euro zone banks’ demand for funding surged to a two-year high today as U.S. funds cut their lending. The sovereign debt crisis has left credit markets frozen and the ECB as the only available funding for most banks.

The equities and financial markets are going to remain very volatile in the near future as the euro zone debt crisis adds a lot of uncertainty to the markets. The question is, can they fix it? They’ve been trying for a while now, and if any more countries need bailouts investors will start wondering if the entire euro zone is on the brink of collapse.

European Debt Worries Lead to a Sluggish Market

The market has been trading very sluggish this morning as worries continue to grow over the debt problems within the European Union. The Dow has just recently climbed into the positive showing a small gain of 10 points. The Nasdaq is still hovering around neutral and is down less than a point. The Standard and Poor’s currently up slightly posting gains of slightly above 3 points. The neutrality displayed in the markets this morning by investors comes on worries that Italy, Europe’s third largest economy, could need help restructuring and managing its debts. While these worries persist they are fueled by the fact international lenders have yet to to confirm terms for the Greek debt rescue plan. While the markets have not made huge gains today there are several stocks performing well lets take a look at who leads the way.

Radiant Systems, Inc (Nasdaq:RADS) shares have made a sharp increase this morning rising 30% to 28.00 per share. Volume is very heavy and trading one hundred times normal daily volume with some 30 million share exchanging hands this morning. Radiant Systems rise comes on the heels of the announcement that NCR Corporation (NYSE:NCR) has agreed to purchase the company for $1.2 billion. The all cash offer includes a price point of $28 per share. NCR has announced that the acquisition will lead accelerated growth and revenue next year.

Clean Energy Fuels Corp. (Nasdaq:CLNE) shares are up 15% to $15.10 per share with an intraday high $15.35. Volume is up three times on news that Chesapeake Energy(NYSE:CHK) is planning on investing $150 million into CLNE in order to place natural gas pumps into truick stops across the country. The investment helps Clean Energy to put these pumps into its first of many truck stops operated by Pilot/Flying J. This stage of the operation is one of three stages put in place by Chesapeake Energy to move forward in the usage and distribution of natural gas throughout the country.

IsoRay, Inc. (AMEX:ISR) share have risen this morning climbing 12% to $1.24 per share with an intraday high of $1.35. Volume is trading very heavy on news that IsoRay has announced another use of its Prprietary Cesium-131 Brachytherapy Seeds in mesh. Dr Deepak Khuntia performed the worlds first implant of Cesium-131 mesh brachytherapy in an early stage lung cancer patient. This treatment option is one that does not reduce breathing capacity in those patients where removal of a lung or a lungs lobes is not an option. This marks the second time in the last month IsoRay has made headlines using the companies Cesium-131 isotope.

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