Talk about a busy morning: today we have Mr. Bernanke testifying at 1pm, Treasury Secretary Geithner speaking at 11am, the Senate voting on the stimulus bill at 12 noon, and a huge Treasury auction at 1 PM.
Futures have risen throughout the morning, while the dollar has been weakening, but as the dollar strengthened after 9 PM ET, futures moved down. Commodities like Oil, gasoline, silver, and gold are higher.
1) Details are still sketchy on the details of Geithner's plan, but we are reporting there are four components:
a) Funding new lending. The Federal Reserve will increase the size of the TALF to $500 billion to $1 trillion from $200 billion.
b) Funding purchase of old assets, either by insuring some downside risk for private investors or financing the purchase of those assets.
c) $50 billion for foreclosure mitigation.
d) New capital infusion into banks (perhaps $100 billion) after a "stress test" to determine if they are healthy.
2) U.S. and European banks are trading up, even though UBS reported a huge loss of $6.9 billion, larger than expected but (believe it or not) less than the loss from a year ago. The bank said investment banking trading was off to an "encouraging" start, but they are still laying off 2,000 people
3) Speaking of stimulus: engineering giant Aecom reported solid earnings, in line with expectations, and reaffirmed 2009 guidance. They saw "continued demand for our services globally throughout the infrastructure market" and noted they have a backlog of projects in the pipeline.
3) Cisco raised $4 billion yesterday in a corporate bond offering...they also have $25 billion in investment on their balance sheet. Hmm.
4) The Kuwaiti investment authority may support Dow Chemical's takeover of Rohm & Haas if the terms were adjusted to reflect the new economic reality.
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