Morning Market Roundup: Oil Disruption, GM Being Sued, EU‘s ’Dangerous Tone’
- Posted on August 6, 2012 at 10:20am by
Becket Adams
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Here’s what’s important in the business world this morning:
Oil: An explosion in Turkey has forced authorities to shut down a pipeline carrying oil from Iraq to world markets, an official said Monday, in the second such incident in two weeks. Local media reports said Kurdish rebels had caused the blast.
The explosion occurred late Sunday near the southeastern town of Midyat and damaged the pipeline running from Kirkuk, in northern Iraq, to the Turkish Mediterranean port at Ceyhan, said an official at Turkey’s pipeline company, BOTAS. A second line that runs parallel was not harmed, but has also been shut down temporarily as a precaution, the official said.
The two pipelines carry about 25 million tons of crude oil a year.
GM: Spyker Cars NV, the tiny Dutch company that bought Swedish carmaker Saab from General Motors Co., says it is now suing GM for $3 billion in damages.
Saab continued a downward spiral under Spyker’s ownership, which had took over the manufacturer for $74 million in February 2010 in hopes of returning it to profitability. The Swedish company eventually went bankrupt a little more than a year later.
Spyker alleges that GM blocked the Dutch company’s attempts to sell Saab to a Chinese buyer, driving the carmaker in to bankruptcy.
As part of the deal selling Saab, GM retained say over GM technology used by Saab and $327 million in preferred shares in case Saab might ever turn a profit.
“Dangerous” Tone: Germany’s foreign minister warned on Monday that arguments about European policy are taking on a “very dangerous” tone as worries mount about the future of the euro.
Guido Westerwelle didn’t specify who his comments were aimed at. But they came after Italian Premier Mario Monti warned over the weekend of tensions that “bear the traits of a psychological dissolution of Europe,” and a regional official in a German governing party said Greece must leave the euro this year.
“The tone is very dangerous. We must take care not to talk Europe down,” Westerwelle said in a statement.
He added that attempts to grab domestic political attention “cannot be the yardstick for our action in any European country, including Germany – the situation in Europe is too serious for that.”
U.S. Futures: U.S. stocks were marching upward, riding a tailwind of optimism from the most recent job numbers released last week. Other Global markets also rose.
The Dow Jones industrial average rose 31 points to 13,126 soon after the opening bell on Monday. The broader S&P 500 index added three points at 1,394. The Nasdaq index is up 10 points to 2,977.
Also on Monday, Knight Capital Group, which is fighting for survival after a disastrous software glitch last sent trading haywire last week, said it has lined up $400 million in financing that will allow the firm to continue operations. Also, the founder of Best Buy has offered to buy the company for between $24 and $26 per share.
Follow Becket Adams (@BecketAdams) on Twitter
The Associated Press contributed to this report.
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Alecto
Posted on August 6, 2012 at 1:14pmMarket is NOT up because of jobs report. It is up because of news on QE in September. If the market paid attention to any jobs reports it would be down 300 pts. These stupid jobs reports are a scam and propaganda to get Obama re-elected, not to illustrate real unemployment or provide any meaningful information about employment at all.
If they were intended to provide that information, you would see the media dissecting the permanent vs contract distinctions, the sectors hiring (public vs private), and geographical regions where hiring is happening. Instead they blend it into a cryptic morass of meaningless tripe for mass consumption. In a day or two, the bloom will be off the rose, short, short, short the market!
Report Post »Detroit paperboy
Posted on August 6, 2012 at 12:23pmI’m sure GM will just settle and pay the three billion, it’s only tax dollars so who cares…….
Report Post »contkmi
Posted on August 6, 2012 at 10:51amHow is the market up on jobs numbers? There wasn’t any good news last week! It all got worse! The MSM just refused to report it.
Report Post »JimL
Posted on August 6, 2012 at 10:38amEuro down US, temp., up?
Report Post »MeMadMax
Posted on August 6, 2012 at 10:34amWow, that pipeline explosion will drive up gas at least a buck a gallon within hours.
Report Post »So, GM never really sold SAAB huh?
Just dissolve the EU already… The thing is designed to fail because it is a SOCIALIST engineered program… Dumping money into the thing is only dumping money into the pockets of the people that are in charge of the thing… namely the corrupt politicians and bankers…
Incredible… The economy twitches as it lays on its death bed and investors declare “it is alive!”.. so they start investing again.. really, all it is is big investment companies playing shuffleboard with money between each other, the smart money left the building long ago, and still hasn’t come back…
SCREW-WINDOWS
Posted on August 6, 2012 at 11:50amHow dumb you got to be to buy a company that you have no control over but then again the name Saab says it all I bet they are really sobbing now.
Report Post »LaBelle
Posted on August 6, 2012 at 10:32amI hate to be picky but proper grammar, spelling and punctuation is VERY important, especially in journalism. “Saab continued a downward spiral under Spyker’s ownership, which had took over the manufacturer for $74 million in February 2010 in hopes of returning it to profitability”
That should have said “Which had TAKEN over” Not “took over”.
Report Post »drphil69
Posted on August 6, 2012 at 11:01am“spelling and punctuation are VERY important…”
Apparently to YOU. Get over it. 99% of people didn’t even notice.
Report Post »QuincySmith
Posted on August 6, 2012 at 11:03amEven better: drop had entirely: “Which took over…”
Report Post »SCREW-WINDOWS
Posted on August 6, 2012 at 11:30amOnly a Dem couldn’t comprehend the meaning even with proper spelling and grammer but I think most of us are smart enough to get the just of the story.
Report Post »Stop nit picking you will become like those atheist who get offended by a symbol.
Stoic one
Posted on August 6, 2012 at 10:27amSo now we know the excuse for the spike in gasoline prices over the weekend.
Report Post »Individualism
Posted on August 6, 2012 at 10:46amthere just being greedy it may not even effect them but they will lie and raise to make more money.
Report Post »progressiveslayer
Posted on August 6, 2012 at 10:27am“Dangerous” Tone: Germany’s foreign minister warned on Monday that arguments about European policy are taking on a “very dangerous” tone as worries mount about the future of the euro. What future?
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