Monday (12/12/11) Pre-Market News: EU Downgrade Imminent


Every morning the Street of Walls team puts out an update on market levels, today’s top stories, and active M&A deals.

Today’s Top Stories:

  • Moody’s Could Downgrade EU: Moody’s said Mon it still expects to review its ratings on all European sovereign credits in Q1:12.  Moody’s added that the Fri Leaders Summit offered few new measures to resolve the region’s debt crisis.  “As we announced in November, unless credit market conditions stabilize in the near future, our ratings of all EU sovereigns will need to be revisited. The communique does not change that view, and we continue to expect to complete such a repositioning during the first quarter of 2012.”
  • S&P Could Downgrade EU: S&P, which put a bunch of AAAs on watch neg. Mon (12/5), says it will make a decision on whether to downgrade in “the coming days”
  • Next iPad 3-4months away: The next generation iPads are expected to be available in the next 3-4 months as makers in the supply chain have started delivering parts and components for the new tablets to OEM contractors while reducing those prepared for iPad 2, according to sources in the supply chain
  • 7 GOP Takeaways: 7 takeaways: 1) Romney had a big error w/his $10K bet; 2) Gingrich did what he had to in order to keep his present front-runner status; 3) Gingrich is testing how far to the right a candidate can move on Israel; 4) Perry had one of his best performances although it’s probably too late for him; 5) Bachman had an OK night and made a play to pick up Herman Cain supporters (although most have moved on to Gingrich); 6) Huntsman didn’t show Sat night but remains a wildcard in NH; 7) Ron Paul is influencing other candidates in terms of their Fed/Bernanke rhetoric
  • Gingrich is pulling out ahead of Romney: in early primary states; the former Speaker has commanding leads in South Carolina and Florida
  • Obama Sees 8% Unemployment: Obama said during a 60 Min interview (airing Sun night) that he things the unemployment rate could drop to 8% by the time be faces re-election in Nov (CNBC)
  • Slides on Exxon’s energy outlook: ExxonMobil (NYSE:XOM) released its 2012 outlook  for global energy demand through 2040
  • Buffett’s Son to be Berkshire Chairman: Buffett tells 60 Minutes his son Howard will succeed him as non-executive chairman of Berkshire and will be responsible for maintaining the values of the company.  Buffett however has not revealed who would succeed him as CEO

Economic Calendar:

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  • Monday: Monthly Budget Statement
  • Tuesday: Advance Retail Sales, JOLTs Job Openings, Business Inventories, FOMC Rate Decision
  • Wednesday: Import Price Index
  • Thursday: PPI, Empire Manf., Philly Fed, Initial Jobless Claims, IP, Current Account Balance
  • Friday: CPI

M&A Watch:

  • N/A
Disclosure: I do not have a position in any stocks mentioned in this article, do not have a plan to initiate a position within the next 72 hours.
Disclaimer:  The information, opinions, material, and any other content provided in this article is for informational purposes only and is not to be used or considered an offer or solicitation to buy or sell securities, investment products, financial instruments, or to participate in any particular investment strategy. The information, opinions, material, and any other content provided in this article does not constitute as a recommendation or as advice to buy or sell securities, investment products,  financial instruments, or to participate in any particular investment strategy.

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