The clock is ticking for General Motors Corp. and Chrysler LLC. The automakers have 102 days to slash debt, renegotiate labor contracts and lay plans to cut thousands of jobs or face a government-mandated bankruptcy.
The Bush administration threw them a $13.4 billion lifeline from the U.S. bank-bailout program, with $4 billion more for GM in February provided Congress expands that fund. In exchange, the government gets warrants that will allow it to profit if the rescue succeeds and seniority over much of the companies’ debt if the effort fails.
General Motors Corp. rallied 23 percent as Bush announced $13.4 billion in emergency loans for the largest U.S. automaker and rival Chrysler LLC. Ford Motor Co. jumped 3.9 percent, while car-parts supplier ArvinMeritor Inc. climbed 5.9 percent. The Dow Jones Industrial Average erased a 182-point advance as Citigroup Inc. slid 5.5 percent after its debt ratings were cut, while Exxon Mobil Corp. and Chevron Corp. retreated almost 3 percent as oil tumbled below $32 a barrel. Oil Price down to $32 indicate economic slower and in recession.
General Motors Corp. rallied 23 percent as Bush announced $13.4 billion in emergency loans for the largest U.S. automaker and rival Chrysler LLC. Ford Motor Co. jumped 3.9 percent, while car-parts supplier ArvinMeritor Inc. climbed 5.9 percent. The Dow Jones Industrial Average erased a 182-point advance as Citigroup Inc. slid 5.5 percent after its debt ratings were cut, while Exxon Mobil Corp. and Chevron Corp. retreated almost 3 percent as oil tumbled below $32 a barrel. Oil Price down to $32 indicate economic slower and in recession.
Japanese minister said that next year Japan economy growth only 0%.
California states in crisis, need fund help, can not pay workers!!
Now DOW JONES Industrial candle stick still in MA30, if it move below MA30 at MONDAY it could be dangerous so WATCH OUT!!!
News from Bloomberg and ME
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