FORD CEO Alan Mulally on breakout profitability

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And the UAW is REJECTING the contract because FORD has the nerve to be PROFITABLE, slitting their own throats, again. Because they know their friend in the WH will cover them.  Unreal.

what toolz!

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November 2, 2009. Tags: , , , , , , , . Big 3, Economy, Finance, Obama Administration, Politics, Wall St. Comments off.

Market Mover: Durable Goods come in Weak; Ford narrows 1Q loss, Gold on a tear back over $900…

Durable Goods Orders just released for March..came in less weak than expected, down 0.8%, but February also revised downward..

FORD is kickin axx and takin names on their results, FORD is government free! Now with LESS GOVERNMENT! They should put it on a label it will increase sales no doubt!!!!

Ford Motors posted a smaller-than-expected first-quarter loss and said it was on track to at least break even in 2011 and did not expect to seek U.S. government loans, sending its shares up more than 22 percent.

The company expects to be profitable in 2011, Ford CEO Alan Mulally told CNBC’s Phil LeBeau.

“We are really turning the tide in North America,” Mulally said, adding that the industry may have hit bottom.

In response to that, Ford will increase production in the U.S. by 25 percent in the second quarter, he added.

GOLD is on a tear, back up to$910.5 and still climbing….

MiM still likes Gold anytime it backs down under 850….

Bowie montage courtesy of midevilfreako

April 24, 2009. Tags: , , , , , , , , . Economy, Finance, Music, Popular Culture, Uncategorized, Wall St. Comments off.

GMAC gets 5 billion in TARP aid…

Ladies and Gentlemen, start your car-buying engines….A few days after receiving the newly coveted ‘bank-holding’ status from the FED, GMAC has now been approved for an additional 5 billion in aid via the TARP as well as an additional 1 billion directly to GM…

Via Politico:

Stepping into deeper waters to help the auto industry, Treasury Monday night added $6 billion to the $17.4 billion bailout announced Dec. 19, chiefly to help the financial arm of General Motors Corp.

Using financial markets rescue funds, Treasury will purchase $5 billion in senior preferred equity from GMAC LLC, and up to $1 billion more will be lent to GM itself so the automaker can participate in a rights offering at GMAC, which has wanted to reorganize itself as a bank holding company.

GMAC won approval from the Federal Reserve last week to become a bank holding company, but that was contingent on the auto and home loan provider raising at least $30 billion in capital. Treasury’s announcement would appear to move GMAC closer to that goal, and a GM spokeswoman was optimistic Monday night.

Still nada, zip, zilch for homeowners from Paulson…I would suggest anyone wanting a vehicle free of Congressional engineering standards buy now…HA!! Or take your chances on getting a Homer post Pelosi take-over….take a drive down your Miracle Mile of auto dealerships, we did yesterday and three of 10 are now empty lots,  including Jaguar…

thehomer

Breakdown on the stake taken by Treasury via CNN Money:

Under the agreement announced Monday to buy the senior preferred equity, GMAC must be in compliance with parts of the law Congress passed to bail out Wall Street.

GMAC will issue warrants to Treasury in the form of additional preferred equity in an amount equal to 5% of the preferred stock purchase that will pay a 9% dividend if exercised.

-snip-

The loan of up to $1 billion will be exchangeable at any time, at Treasury’s option, into the GMAC equity interests being acquired by GM in the rights offering. The loan will be secured and will have other terms and conditions. The ultimate level of funding under this facility will be dependent upon the level of current investor participation in the rights offering at GMAC.

December 29, 2008. Tags: , , , , , , , , , , , , , , , , , . Big 3, Economy, Labor Department, TARP, Unemployment Statistics, Wall St. 3 comments.

Update: Big 3 loan reached…Dubyah to speak LIVE 9:00am EST….

Video of Dubyah announcement now up here

Update 3: 10:19am EST: Breakdown coming out on Big 3 loans:  GM to receive 4 billion on  12/29, another 5.45 b on 1/16/09…Chrysler to receive up to 4 b on Dec 29th (don’t get me started they should’ve gotten nada, they are privately owned by Cerberus who refused to put up any more cash..at least Kokomo will have work, they better reopen those plants..)..Ford had said they were okay pending no further market deterioration in sales…

GM to hold presser in 44 mins, CNBC to cover it LIVE

UPDATE 2: 10:03am EST:  CNBC reports that an additional 4 billion in loans is expected to come from TARP tranche Deux in February, contingent upon 2nd tranche approval by Congress…so total is 13.4 billion immediately, additional 4 billion from TARP part Deux under PEBO (which will give PEBO the opening to change the requirements :0))

UPDATE: 8:52am EST: The loan is a done deal. 13.4 Billion from TARP…

  • Govt will have power to block large transactions,
  • govt gets warrants ahead of all stakeholders
  • new agreements with stakeholders, dealers, suppliers required by March 31st
  • work rules and wages must be competitive by December 31, 2009…
  • positive net present value by March 31, 2009, must reduce debt by 2/3

This can be modified by PEBO when he gets in…..

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December 19, 2008. Tags: , , , , , , , , , , , , , , , . Big 3, Economy, Entertainment, Fantasy, Film, Foreclosures, Housing, Labor Department, Popular Culture, TARP, Unemployment Statistics, Wall St. 1 comment.

Monday Morning Market Roundup: FED begins 2 day meeting on rates…next stop, Less Than Zero??..Jamie Dimon on 2009 and Housing…WH on Big 3…

Markets opened mixed, have all turned negative.  DOW down 77 to 8552; NAS down 33 to 1507 and S&P down 11 to 870, the 10 yr is at 2.54% WOW!!

As the Federal Reserve begins a two day meeting expected to culminate in a rate cut of 50 bp tomorrow, consider recent comments by various former Fed Governors alluding to our ability to operate in an effective negative interest rate environment. Once they go to zero some think they are out of bullets. Less Than Zero…sooner or later we will pay the piper in inflation…

From the WSJ:

…The market expects the Fed to cut its key lending rate to 0.50%. But, more important, investors want to know whether there “are more aggressive quantitative moves soon to come, or are they further down the road,” said Rick Klingman, managing director of Treasury trading at BNP Paribas in New York.

The Fed is scheduled to meet Monday and Tuesday, with its interest-rate decision coming Tuesday at 2:15 p.m. EST.

Aware that its scope to cut interest rates is limited, the Fed already has tiptoed into the arena of quantitative easing, essentially printing money and using the cash to fund lending…

The EU nations are already making noises about ceasing interest rate cuts, remember their mandate is solely to manage against inflation. Our FED does full employment AND inflation, and frankly I have always found that to be a conflict, since economists feel full employment leads to …yes inflation…

On the auto bailout news,  the White House is behaving rather strangely, floating various rumors. Fox reports Bush says, no bailout deal anytime soon, which would IMHO be deadly for the markets. Then we had a report on CNBC saying the bailout could be as high as 40 billion, which is more than double the amount that failed in the Senate. No one knows where it is coming from. We only have 15 billion left in TARP tranche one. A Treasury/Fed combo loan/guarantee program was the assumption the talking heads are making.

Perhaps the reason the WH is playing coy is b/c they are trying to get Congress to be more amenable to accessing TARP tranche deux (I don’t think POTUS’ trip to Afghanistahn would preclude Paulson from putting a package together) ..I don’t know but I do know if they don’t come out with a definitive plan very soon, the markets will begin to respond negatively…

Via Fox:  The administration, following the legislative defeat, said it was considering several options, including using money from the $700 billion financial bailout fund to provide loans to the carmakers. Bush reiterated Monday that tapping the financial bailout fund remains an option. ..

Via CNBC: U.S. President George W. Bush said on Monday an announcement on a auto industry rescue was not imminent, leaving the industry’s fate clouded in uncertainty for a little longer..”We’re not quite ready to announce that yet,” Bush told reporters on Air Force One during a flight from Baghdad on an unannounced visit to Afghanistan.

Updated POTUS report: 11:25am EST: GOOD NEWS! Phil LeBeau on the Auto Beat reports POTUS said on AirForce One:

“This will not be a long process because of the economic, the fragility of the auto industry”

The US Dollar is continuing to drop, and no one can agree where it is headed next, I say Rick Santelli has it right and it has topped, we shall see:

The dollar fell to an eight-week low against the euro and dropped versus the yen on speculation the Federal Reserve will cut interest rates and the U.S. will bail out General Motors Corp. and Chrysler LLC.

The greenback approached a 13-year low against the Japanese currency after U.S. President George W. Bush said yesterday he may use funds meant to shore up banks to keep the automakers out of bankruptcy. The Fed is forecast by economists to cut its benchmark rate tomorrow.

“There is dollar weakness in anticipation of this week’s meeting, where it’s widely expected that the Fed will cut the benchmark rate,” said Lee Hardman, a London-based foreign- exchange strategist at Bank of Tokyo-Mitsubishi…..

Anywho, markets expect 50 bp and for the first time I can recall the markets don’t really seem to care what the FED does.  Sentiment is just that negative.

You wouldn’t know that based on the parade of talking heads who seem to be tasked with ‘talking up’ 2009. I will stick with what Jamie Dimon (JPM Chase CEO) told Erin Burnett on December 11th. Remember, only Jamie got it right on the housing meltdown. One of the comments he made was that he expects housing values to drop another 20%-OUCH!:

Video here and here and here

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December 15, 2008. Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , . Big 3, Cabinet, CITI, Economy, FDIC, Finance, Foreclosures, Housing, Labor Department, Obama Administration, Politics, Popular Culture, Simon Pegg, TARP, Unemployment Statistics, Wall St. 3 comments.

Sen. Chris Dodd (D-CT) on the bridge loan, the actions of Senate GOP and the TARP tranche part two..

74177862AW013_Meet_The_Pres

UPDATE: Video now up from CSPAN here

Senator Chris Dodd (D-CT),  Banking, Housing & Urban Affairs Committee Chairman,  just gave an excellent press conference covering the negotiations over the bridge loan and the moves made by all the key stakeholders as well as the ‘political maneuvering by a group GOP Senators in a time of financial crisis’.

During Q/A he articulated the Democratic leadership’s position on drawdown of Tarp tranche Deux and needing to have foreclosure mitigation and consumer lending before any such move is made…

Dodd revealed that after he and all the parties had gone as far as having agreed to put the language in calling for ‘bankruptcy on March 31st if no concessions made by all stakeholders to be viable’, the Shelby contingent was still adding further conditions on labor including NEGOTIATING WORK RULES..

YES! Like they were OSHA, Shelby and his Southern GOP Senate crew was trying to lower American work standards and abrogate the entire purpose of the union.  Dodd calls them the core group that was ‘determined to get to a bankruptcy outcome’..it was a union bust based on Dodd’s description and he outlines the many concessions labor made last night..

It’s wonderful to see Dodd on his game and playing it straight, this is the course on which he belongs. Of course he is echoing many things I said in my ‘Big 3 bill fails’ post and update this morning, so how could I fail to concur? HA! It is nice to be on the side of my party leadership for a change…it is a sad state of affairs that this has to be an issue, hundreds of billions to AIG no concessions on salary or yachting or hunting in Europe there, but no advance on 14 billion already allocated for our manufacturers…..

Up momentarily on CSPAN here

December 12, 2008. Tags: , , , , , , , , , , , , , , , , , , , , , , . Big 3, Cabinet, Economy, Finance, Foreclosures, Housing, Labor Department, Obama Administration, Politics, Popular Culture, TARP, Unemployment Statistics, Wall St. 1 comment.

Update: GM announces N American plant closures for 1st Qtr…Paulson Blinks: Treasury Ready to Assist Big 3..

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December 12, 2008. Tags: , , , , , , , , , , , , , , , , , , , , , , . Big 3, Cabinet, Economy, Finance, Foreclosures, Housing, Labor Department, Obama Administration, Politics, Popular Culture, TARP, Unemployment Statistics, Wall St. Comments off.

BILL FAILS, ‘DEAD FOR YEAR’: Dems look to TARP

The Detroit News has it up. WH has responded:

…The White House said it was evaluating its options in light of the breakdown.

“It’s disappointing that Congress failed to act tonight,” a White House statement said. “We think the legislation we negotiated provided an opportunity to use funds already appropriated for automakers and presented the best chance to avoid a disorderly bankruptcy while ensuring taxpayer funds only go to firms whose stakeholders were prepared to make difficult decisions to become viable.”..

Tomorrow will be wild and crazy in the markets .. I am getting up bright and early to watch the global markets react and see the futures which I think should lead to a down open, anyone with sense sees this is a frakin disaster, why I thought a simple majority of Congress Critters could reason their way out of a wet paper bag I don’t know, I never learn….

11:20 pm EST:  After REIDS disgraceful self serving speech and thank you, in which he didnt even apologize for his failure, finally a voice of reason:

FINALLY, Barbara Boxer D-CA stands up and says no change was here tonight, the American people will see who stood with the middle class and who didn’t tonight..in this crisis with the holiday we shouldve voted yes, unless Henry Paulson does the right thing… I am going to work as hard as I can to get the Treasury Secty to take action with these 3 million jobs that are on the line..we know Hank Paulson can save these jobs..if he can save all those jobs in the white collar industry certainly he can save some in the blue collar industry…. everyone knows I have had problems with Detroit, they didnt listen to us with fuel efficiency, but to lose our manufacturing base without even a helping hand to try and save it tonight is shocking, in closing I have a heavy heart right now, I have 200,000 workers in my state second only to Detroit that depend on thriving auto industry, I have a message Change is coming…people here for right reason to fight for middle class..(winding off now)

HERE WE GO: Everyone is waiting in the well….straggling votes coming in..it makes me all nervy how the Senate doesnt have the count on the screen and we have to wait…DeMint votes no, wonder if he sees rioters out in the hall, frakin maroon CORKER votes AYE, Good for him!.. Corker votes no..Bond votes Aye. Reid of NV NO? WTF? HUH????they are laughing on the floor WTH? REID VOTED NO!!??!!!!!

YEAS 52

NAYS 35

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December 11, 2008. Tags: , , , , , , , , , , , , , , , , , , , , , , , . Big 3, Doo Wop, Economy, Finance, Foreclosures, Housing, Labor Department, Music, Politics, Popular Culture, TARP, Unemployment Statistics, Wall St. 2 comments.

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