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Business Title: Stocks, Dollar Gain as Spending, AIG Deal Bolster Confidence March 1 (Bloomberg) -- Stocks and the dollar rose as growth in U.S. consumer spending, a possible European rescue of Greece and American International Group Inc.’s $35.5 billion sale of an Asian unit bolstered confidence in the economic recovery. The Standard & Poor’s 500 Index gained 0.9 percent to 1,114.69 at 2:36 p.m. in New York and climbed as high as 1,116.11, erasing its loss for 2010. Europe’s Stoxx 600 Index rallied 1.2 percent. The Dollar Index climbed 0.5 percent to 80.742, near its highest level since June. Copper rose after the earthquake in Chile, the biggest producer of the metal, while the nation’s benchmark stock index tumbled. Greek equities and bonds rallied. U.S. personal spending grew 0.5 percent in January for a fourth consecutive increase, while another report showed American manufacturing expanded for a seventh month. AIG’s sale of a life-insurance unit to Prudential Plc is its largest since the company received a government bailout in 2008. In a separate deal, Merck KGaA agreed to buy Millipore Corp. for $6 billion. “AIG/Prudential is a pretty big deal,” said John Carey, a Boston-based money manager at Pioneer Investment Management, which oversees more than $200 billion. “That indicates M&A is alive and well, stimulating people’s interest in the stock market. On top of that, we had the spending number this morning and any sign that consumer confidence is improving has to be positive for the market.” S&P 500 Leaders The S&P 500’s gains were led by technology and consumer companies, with Apple Inc. and Ford Motor Co. each climbing more than 2 percent. AIG rallied 6.5 percent, while Prudential Plc fell 12 percent in London. Ten of 12 shares in a gauge of U.S. homebuilders advanced, paced by D.R. Horton Inc., after billionaire investor Warren Buffett said in a Feb. 27 letter to investors that the U.S. residential real estate slump will end by about 2011. Estonian stocks rose the most among equity markets worldwide on better-than-expected earnings reports and a buyout bid for seatbelt maker AS Norma. The OMX Tallinn Index rallied 4.7 percent, the biggest among 93 benchmark indexes tracked by Bloomberg. The British pound dropped 1.6 percent to $1.4996 after sliding to $1.4784, the lowest level since May 1. The U.K. currency fell against all 16 of its most-traded counterparts, weakening 1.1 percent to 90.435 pence per euro. The declines in the pound came after a YouGov Plc poll indicated an election due by June 10 would leave neither Gordon Brown’s ruling Labour party nor the opposition Conservatives with a majority of seats in Parliament, hampering efforts to cut the record deficit. European Union officials may demand deeper budget cuts from Greece in meetings today. Pound ‘Suffering’ “Sterling is really suffering and leading the way,” said Ian Stannard, a senior currency strategist at BNP Paribas SA in London. “And in the eurozone, problems are going to continue and the euro is going to continue to suffer as a result.” U.K. and German bonds declined. The yield on the 10-year British gilt rose five basis points to 4.07 percent, and the similar maturity German bund yield climbed one basis point to 3.1 percent. Copper rose as high as $3.487 a pound in New York trading, erasing this year’s decline. Mines in Chile, which exports 36 percent of the world’s copper ores and concentrate, were closed by the magnitude-8.8 earthquake Feb. 27. Lead, zinc and nickel also rose in London. Chile Earthquake Chilean stocks plunged after the earthquake killed at least 700 people, severed the country’s main highway and damaged 1.5 million homes. Empresa Nacional de Electricidad SA, the nation’s biggest power generator, and Lan Airlines SA, the country’s largest carrier, dropped following electricity outages and airport closures. The Ipsa Index slid 1.3 percent and lost 2.9 percent earlier, the most intraday since Dec. 1, 2008. Chile’s peso pared a decline of as much as 1.5 percent, losing 0.1 percent to 524.7 per U.S. dollar, on speculation the government will repatriate savings held overseas to finance reconstruction. Greek bonds and stocks rallied as European Union governments crafted a possible rescue package. The yield on the two-year Greek note slid 36 basis points to 5.78 percent. The cost of insuring Greek bonds against default fell, with credit- default swaps tied to the nation’s debt dropping 28.5 basis points to 335.5, according to CMA DataVision. Greece’s ASE Index of equities rose for a second day, advancing 2.9 percent. Default Swaps Gauges of corporate credit risk in the U.S. and Europe fell amid speculation that euro-area nations will agree on a bailout package for Greece. The Markit CDX North America Investment Grade Index, a credit-default swaps benchmark, declined 0.5 basis point to 91 basis points as of 7:58 a.m. in New York, according to broker Phoenix Partners Group. The Markit iTraxx Europe index of 125 companies with investment-grade ratings dropped 1 basis point to 84 basis points, JPMorgan Chase & Co. prices show. The MSCI Emerging Markets Index rose, extended its two-day rally to 2.9 percent, as gains by commodity producers lifted Russia’s Micex Index 1.8 percent. Turkey’s ISE National 100 Index jumped 3 percent on speculation tension between the military and the government is easing after the release of eight officers questioned in an investigation into allegations of a 2003 coup plot against Prime Minister Recep Tayyip Erdogan’s government.
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Day 8 of Packrat refusing to register here. Day 6 Of Boofer The One Eyed Wonder Bot refusing to answer: When is Blackwell going to have the recount? Jan 30, 2006 ... by saveliberty (Proud to be Head Snowflake, Bushbot...)
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