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Morning Market Roundup: Italy Borrowing Costs, the Volt is Dead, new Toyota GT

Here’s what’s important in the financial world this morning:

EU: The cost for Italy to borrow money rose again, and to an unsustainable level. The nation’s 10-year paper yield increased to 7.56 percent. The southern European nation cannot cover its deficits for long when it needs to pay such a high sum for capital. The news about Italy makes a broad solution to the eurozone debt crisis even more pressing. Most analysts believe that credit rating agencies will downgrade more sovereign debt in the region, along with ratings of EU-based banks. The collapse of the euro still may be only weeks away without a solution to these borrowing cost problems.

Tech: Yahoo! continues to be for sale. The markets do not believe that buyers will pay much of a premium even with the multibillion-dollar value of its Asian assets, which include stakes in China e-commerce company Alibaba and Yahoo! Japan. Yahoo!’s shares trade between $15 and $16, about where they were six months ago. The slow growth of the portal’s primary advertising business is not enticing enough to bring high offers.

Auto: Toyota launched a new high-end coupe with Subaru. The GT 86 is meant to help revive the large Japanese car company’s image, which was tarnished by the recall of millions of cars. Toyota’s sales also have been hampered by production slowdowns due to the March Japanese earthquake. One car will not be enough to change the perception of Toyota, particularly one with the modest features of the GT 86. The rear-wheel drive car puts out only 197 bhp. That is inadequate to make it any more than mid-priced, mid-sized sports car in a segment of the market that already has a number of competing products.

Morning Market Roundup: Italy Borrowing Costs, the Volt is Dead, new Toyota GT

Tokyo Motor GT 86 Sport

In other car news, General Motors has offered owners of Chevy Volts the opportunity to use loaner cars if they are concerned about engine fires the government has discovered. The loaner car program is effectively the end of the Volt. It is an admission by GM that the problem is serious and will be long-lived. GM has sold only a few thousand units since the launch, but the Volt was a cornerstone of the “new GM,” compared to the “old” one that declared Chapter 11. The remnants of the old firm’s poor car design capacity live on in the Volt.

And just in cae you missed it when it happened, here‘s The Blaze’s original report on the Volt fires: NEW WORRIES: CHEVY VOLT BATTERY UNEXPECTEDLY CATCHES FIRE…THREE WEEKS AFTER BEING DAMAGED

(Douglas A. McIntyre—24/7 Wall St./The Blaze)

Comments (30)

  • Richard Compton
    Posted on November 30, 2011 at 1:38pm

    Here is the new Solindra, the Chevy Volt, the Obama administration pushed the GM to make an electric car to market and even with massave government tax incentives people aren’t buying it, GM stock is down and if it doesn’t hit at least $50.00 dollars a share the government , ie the people are stuck with a loss. So who gets the axe over this one? Hopefully the entire Obama administration!

    Report Post »  
  • lembrandt
    Posted on November 30, 2011 at 9:57am

    Here’s just one more way to make this comment: The people who gave you the Volt are the same people who want to run your health care…in fact, they want to run your entire life.

    How ‘s that “hope and change” working for you?

    Report Post »  
  • Bonnieblue2A
    Posted on November 30, 2011 at 12:35am

    The Volt was pushed by the Dolt in the Oval office. Hey, he paid back the unions though and that is what is important. Who cares if Obama screwed the bond holders and taxpayers, right?

    Report Post »  
  • dudeman4
    Posted on November 29, 2011 at 5:28pm

    The whole thing about the Volt is bad for the automotive reviewers who acted like the future had come, and that the Volt was some white, shining horse. MotorTrend made the Volt their 2011 Car of the Year, and less than a year later, the car is done for. Ouch.

    Report Post »  
  • PATRIOTGRUNT
    Posted on November 29, 2011 at 3:25pm

    New GM will be just like Old GM. These morons will go broke again. The Moron In Chief will not be able to save the communist UAW thugs again. He will be out of the WH soon. 110 years ago there was an electric car that had the same milage range of 40 miles just like the Dolt.

    Report Post » PATRIOTGRUNT  
  • starman70
    Posted on November 29, 2011 at 2:56pm

    The idea of the electric vehicle is great for people who live near work. But with a range of 40 miles per charge, it’s not a car for touring or long trips.

    As a kid growing up in New York Cith in the 50s, I remember electric delivery trucks. They were operated by grocery suppliers, fish markets and even the Railway Express Company. These vehicles were electrically driven and had chain drives from the motors to the drive wheels. They were heavy, built like tanks, had hard rubber “tires” but were quite common.

    This kind of electric vehicle makes sense for short haul deliverys and now could be built lighter and with more energy efficiency. Pro Terra, a Greenville, SC based company is now producing an electric city bus. Again for short haul service, and downtown passenger routes, this is a good choice.

    The Volt is an unmitigated disaster. It was rushed into production by a comapny in bankruptcy. Little long term research was done as to its reliability. It was produced at the behest of a president who would pressure GM to produce it in order to bolster his own “Green” ego. It was built by union laborers who do as little work as possible, who have been seen drinking beer and smoking pot on lunch breaks, yet go on strike to demand higher wages and benefits while many Americans can’t even find a job. As far as I’m concerned, good riddance to the Volt!

    Report Post »  
    • artistskeptic
      Posted on November 29, 2011 at 11:38pm

      Don’t understand why electric vehicles are a great idea at any distance. The energy still comes from burning fosil fuel with a burn, generate, transmit, charge and use operation all with inheirent inefficiencies versus burn use cycle at a reasonable efficiency. Quick search seems to indicate the electric cycle at 30 to 40% energy efficiency and the internal combustion at near 80%,

      Report Post »  
  • LLATPOH
    Posted on November 29, 2011 at 2:03pm

    The Volt reminds me of the Trabant. Government-owned, and just as reliable.

    Report Post »  
    • Cold War Vet
      Posted on November 30, 2011 at 1:14am

      Amen! The Trabant is actually a little more reliable than a Volt, I would imagine. More affordable too!

      Report Post » Cold War Vet  
  • usafpatriot
    Posted on November 29, 2011 at 1:44pm

    I want a politician to come out and tell us that we will never be off oil an other related products (natural gas, coal, shale); not in our lifetime or in our children’s lifetime. Sure we can subsidize with wind and solar, but nothing will ever replace oil. Until we except that we will continue to have the libs running the asylum. Everything we use is produced with oil, either to make it or to get it transported. We need to start drilling in the Gulf of Mexico, California, Texas, Oklahoma and Alaska; build the pipeline from Canada to the Gulf; this will reduce the cost of fuel and eliminate our dependency on the Middle East. Quit growing corn for fuel, this will reduce the cost of food. All of this will put our country back to work.

    Report Post »  
    • Flash287
      Posted on November 29, 2011 at 6:18pm

      Hooray for common sense! Lets create zillions of new obs immediately by ending the federal gasoline tax (about 48 cents/g)
      The broad middle class will have much more discretionary monies to spend. That will create jobs. The savings at the pump will help everyone.

      Report Post » Flash287  
    • zoose
      Posted on November 29, 2011 at 8:38pm

      Until they discover Di-lithium Crystals and transparent Aluminum we’ll be stuck with oil.

      We did have a hot water solar system installed this year and it‘s been doing well but without the electric backup we’d be taking cold showers on some mornings.

      Report Post » zoose  
  • LaderaCa
    Posted on November 29, 2011 at 12:54pm

    Does anyone know if the Volt’s batteries are made in the plant BHO visited in Michigan?

    Report Post »  
  • Miyegombo Bayartsogt
    Posted on November 29, 2011 at 12:46pm

    The American people ought to gift Alien President and his mean American-hating wife Michelle a Volt when they are voted out of the White House as a going away present.

    Report Post »  
    • jungle J
      Posted on November 29, 2011 at 1:25pm

      he will not be voted out…he was voted in by the mentally ill and we are stil out numbered by them.

      Report Post »  
  • georgeisn6
    Posted on November 29, 2011 at 11:34am

    The volt will be a big hit with the folks when “O”whatabummer has achived his goal of puting us all back into caves to live, the volt will be very handy for starting cooking fires.

    Report Post »  
    • fertlmind
      Posted on November 29, 2011 at 11:52am

      The Volt is obviously suffering from poor workmanship caused by dope smoking and chasing it down with a 40 ouncer or two for lunch by Government funded union employees. This is a metaphor for what Obama is doing to our country.

      And by the way,…GM DIDN’T PAY BACK ALL THE LOANS!!!! they paid some back with the NEW MONEY THEY WERE GIVEN BY OBAMA. GM is Solindra. When the current regime is finally gone GM and Chrysler will fold because the taxpayer subsidies will disappear. There will be no green industry left in America because 99% of them are scams and lies propped up by this administration.
      What’s America to do?
      VOTE REPUBLICAN AND BUY A FORD!!!!!!!!!!!

      Report Post » fertlmind  
  • mrsalvage2
    Posted on November 29, 2011 at 11:15am

    After 92 years of making copies of Money, Congress offers a mere copy of something through Government Motors in order to feign that they are competing in the market.

    Report Post » mrsalvage2  
  • I.Gaspar
    Posted on November 29, 2011 at 11:01am

    Another feather in O Loser’s cap…Old Jimmy carter must be thrilled with each failure. He will no longer be the worst president ever.

    Report Post »  
  • RightUnite
    Posted on November 29, 2011 at 10:53am

    Good riddance…. Now, Obama can be next out the door!

    Report Post »  
  • Obama Snake Oil Co
    Posted on November 29, 2011 at 10:48am

    Fire problems? So when the unions went after Toyota over the gas pedals, why haven’t we heard about a fire problem with the Volt? Where has the media been? I saw the media on Toyota but is this how blind the media is to libtardial direction? Filter it, keep it hush….after all the money for the bailout.

    Report Post » Obama Snake Oil Co  
  • duckwalker
    Posted on November 29, 2011 at 10:37am

    oh, how sad, the Chevy Volt is dead. ahhh! oh well, how sad, I think I may cry,,,,,,,, not!

    Report Post »  
  • Vonnie
    Posted on November 29, 2011 at 10:37am

    Harvey Weinstein said so many accomplishment of Obama. Bill O’Reilly said what accomplishments.

    Weinstein said GM. O’Reilly did not say what save. The money is not paid back, as Weinstein said. They paid out of a credit line the US government gave them. Obama did not save the car company because if you have a good company and you wipe out their debt, then company can look good until bad management/unions breaks it down again.

    So, I’m glad. They can not keep using the lame statement that Obama saved the car company.

    Yea, Weinstein says the economy is Bush’s fault. It is kind of like stealing a credit card with bad debt and make the debt 50% higher. I don’t have any responsiblity because it started when the owner of the card had it.

    Report Post »  
  • AxelPhantom
    Posted on November 29, 2011 at 10:32am

    My husband manages Asia, Europe, South and North America for one segment of a rather large computer company. Last night I asked him what the company’s plans were if the Euro goes belly up. He said he didn’t know. He said he is sure that the VP’s had some contingency. I told him, it would be nice if they would let the guys on the ground in on the secret. He said, yes it would.

    If the companies and the people who run them are as blind to what is coming down the pipe as the general population, we are in far more trouble than we realize.

    Report Post »  
    • hauschild
      Posted on November 29, 2011 at 10:53am

      Of course these people have no clue what’s in store. Why would business leaders (of a similar generation) be any different than politicians??? When people do anything for money and can’t take a stand on anything of substance, you pretty much know the game is coming to an end.

      Report Post »  
    • jrcess
      Posted on November 29, 2011 at 2:17pm

      Don’t worry we are sending Joe over to straighten it out.. Joe Biden did a great job on Solyndra.

      Report Post »  
  • jnobfan
    Posted on November 29, 2011 at 10:31am

    Italy has some of the largest gold bullion reserves in the world. Pretty sure they are in the top 5 with over 3000 tons of gold worth around $1,700 an ounce or $27,200 a pound or $54,440,000.00 a ton. Why would the taxpayers of Britain,Germany or any other EU country be on the hook for anything in Italy? Its a commie money train that’s why.

    Report Post »  
    • kwolfburg
      Posted on November 29, 2011 at 11:08am

      They are in the top five. It is basically Italy, Germany, France, USA. I cannot remember who is the fifth but US and Ger are one and two.

      Report Post »  
  • Outlaw_Josey_Wales
    Posted on November 29, 2011 at 10:22am

    Hey President Obama, are you having a fire sale on the GM volt?

    Report Post » Outlaw_Josey_Wales  

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