As Citigroup cleans up its auction rate securities, other firms pressured-WSJ
Under intense government pressure, Citigroup (C) is working to settle its problems in the auction rate securities market, including possible buy backs totaling as much as $8B, according to the Wall Street Journal’s “Credit Markets” column. As the largest issuer of municipal related auction rate securities, other firms may follow Citigroup’s lead to pay back its investors.
U.S. equity futures point to a lower open
U.S. equity futures are pointing to a lower open as the price of oil is moving higher on renewed concerns that tensions over Iran’s nuclear program could lead to higher oil prices. With Iran developing nuclear capabilities has come strong words for the world’s powers to place economic sanctions on Iran. Despite those cries Iran said it will not scale back its nuclear program. The averages started lower yesterday and slowly rallied throughout the day to extend the previous day’s rally. It will be interesting to see if the market can make it three days in a row.
U.K. denies advanced kidney cancer treatment drugs-BBC
The National Health Service in the U.K. has denied patients with advanced kidney cancer four drugs because they have concluded that they do not offer value for the cost. Some studies say they offer significant rates of survival. About 1,7000 of the nearly 7,000 people annually diagnosed with kidney cancer in the U.K. have advanced kidney cancer. The drugs are Genentech’s (DNA) Avastin (bevacizumab), Bayer’s (BAYRY) Nexavar (sorafenib), Pfizer’s (PFE) Sutent (sunitinib), and Wyeth’s (WYE) Torisel (temsirolimus).
U.S. equity futures continue to point to a lower open
Futures continue to point to a lower open. Two Dow components reported disappointing earnings and the price of crude oil is moving higher are some of the reasons for the weakness today. There was also the release of the initial jobless claims for the week and they came in at 455,000 versus an expected 425,000. The continuing claims were 3.3M versus an expected 3.25M. The report had a negative effect on the futures.
Israel buys 90 F-161 fighter jets capable of reaching Iran-AP
In a response to Iran’s growing nuclear capability, Israel has purchased 90 F-161 fighter jets and will receive another 11 late next year, reports the Associated Press. The planes carry enough fuel to each Iran. Israel also bought two Dolphin submarines from Germany that are reportedly capable of carrying nuclear warheads.
Lehman’s Fuld pursuing multiple strategies to raise capital-NY Post
According to sources, Dick Fuld, the CEO of Lehman Brothers (LEH), has held discussions in recent days with various private-equity and foreign investors about the possibility of raising more capital, while, at the same time, ensuring the investment bank “remains in one piece”.
