GM: drastic reduction in production in Europe

·         Asia in bad shape, US closed :  DJ -/-, S&P500 -/-, NASDAQ -/-, NIKKEI -1.4% and EUROSTOXX -1.6 and down by 1.5% right now.

·         FORTIS : nothing new under the sun after one day of negotiations in Paris between the Belgian delegates and BNPPARIBAS top management.

·         US CAR INDUSTRY: GM is contemplating a drastic reduction of its production on the Old continent (in particular in Antwerp). One can easily figure out that political pressure is high in order to “protect” the US based industrial activity. The European subsidiaries have never been very profitable. Such a move is extremely delicate both from a practical and legal point of view and cannot even guarantee the viability of the American giant.

·         WALMART: will release its 2008 final result this afternoon (fiscal year at end January)

·         KBC : plunged 12% yesterday and another 9% now. No doubt that the fear about Eastern Europe is at stake.

·         VIX is stable at 41. Gold is rising further at 960 USD per oz while oil is weak somewhat weaker at 42.3 USD. The USD is strengthening against the EUR at 1.263. 10-2 years spread is virtually unchanged at 1.44. The 5y CMS stands at 2.78 and the 3y at 2.31.

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