tv The O Reilly Factor FOX News August 19, 2011 2:00am-3:00am PDT
global markets. disappointing economic data and concerns over european banks set off a selling frenzy on wall street yesterday that left the dow down 419 points. the fear and panic has spread overseas this morning particularly in asia where the nikkei took big hits and in europe, where markets have opened lower. meanwhile, one of the big u.s. banks that has been hit hard in recent days has announced plans to restructure which could result in as many as 10,000 job cuts. and despite this growing global economic crisis, mounting criticism, president obama is taking time out for a 10-day vacation in martha's vineyard. i'm ashley webster. this is a fox business network special report and thank you for joining us this morning. we are seeing a sea of red across the globe today in trading but first, let's get you up to ta speed on what we can expect before the opening on wall street. let's take a look at the futures board for you and no big surprise, a sea of red again. at this hour, the dow down 1
1/2% and the s&p down 1.6% and the nasdaq following suit, down 30 points or right around 1 1/2%. let's take a look at those ugly numbers from yesterday. dow off 419 points, down more than 3%. meanwhile, the nasdaq also up 131 points, down 5.22% and the s&p 500 down more than 50 points on the day, 4 1/2%. now, let's get you up to speed on what's going on in asia today. a sea of red. nikkei down 2 1/2%. a brutal day, down more than 6% in south korea and on the chinese main land in shanghai, down 1%. let's take a look at europe where the banking stocks have been getting hit hard again. we'll start with the commodities for you. oil off down 2 3/4% at $80 a barrel. look at the european markets down by about 85 points. down 2% in paris and taking a
hammering today, the dax index in frankfurt off 185 points or down more than 3%. the concerns about global growth hitting asian markets overnight. stocks finishing the day sharply lower. the fox business contributor joining us by fun from singapore on more of what's been a trading day that's truly been ugly. katie, good morning to you. >> good morning, ashley. yeah, it was another negative day in asia on the heels of that selloff on wall street, the worst performer as you were mentioned south korea. it's down 2.7% for the week and the week was shortened by a holiday on monday. some big exporters were hit hard today on fears of weakening demand. hyundaii down 11% and samsung electronics down 4%. honda was down more than 3% and toyota was down nearly 1 1/2%. overall, the nikkei was off 2 1/2%. in hong kong, the hang seng losing 3% and the shanghai
>> and as you can see, germany faring the worse. dax is down 3% at the lows for the year. not a good day in europe at all. the banks, not doing well. we saw huge declines yesterday for the banks commerce, all sharply lower and this morning, the banks are under pressure. five plus percent for lloyds, deutche banks. yesterday, european markets tumbling 4%, 5%. it was the worst daily performance for most european markets in 32 months so that means we're dating back to december of 2008 and certainly, the height of the financial crisis. so that's certainly not good news for europe shaking out today as well. the euro yesterday was down nearly 1% vs. the u.s. dollar. that was the second decline in three days.
so certainly stocks across the board really suffering as -- for the banks especially, it's all about the credit crisis right now. do the banks have enough cash, ashley? >> yeah, if those concerns are in a hard to contain, why is that? we've had this european debt crisis hanging over us now for a year and a half and now we're concerned about the exposure of european banks, no matter what these banks say or the authorities, the ecb down, we just can't seem to get rid of these worries. >> yeah, it's kind of like it is here in washington. you're right, we have
our very own nicole was there front row seat and has the details of what sparked the selloff. >> stocks on wall street sell off across the board, economic worries here at home, also worries about europe caused the market to sell off in a big way. the dow jones industrial average down nearly 420 points on some heavy volume. 1.6 billion shares changing hands. that's a loss of 3.7%. the s&p 500 down 4.5% and
moved up 30% and gold hit record highs. everybody is flocking to gold and then 10-year treasury, that's another area that everybody ran to. we even saw it drop below 2% yield. that being said, we saw some of the names on the transportation index being -- those were selling off in a big way, the transportation index is down roughly 7%. we're talking airlines, shipers, how about the name like ryder systems? ryder down 7%. federal express, fdx down 6% and
airlines which usually move up when oil pulls back, southwest airlines hit a 52-week low. worries on wall street certainly plagued the market across the board. on thursday, friday, a whole new day, but certainly there's a lot of red to speak of on thursday. it was a lot of selling going on. 29 and 30 dow components finish in the red with only wal-mart hanging on for a little bit of green. >> nicole, thank you very much. now with some business headlines from the fox business news, let's go to diane, good morning to you. >> good morning. back at you. nicole touched a little bit on bank of america. it looks like that will be the latest financial institution to cut down its work force. reports say the bank is planning to slash about 3500 jobs in the current quarter. these layoffs are in addition to the 2500 cuts the bank has already made so far this year. making the move as part of a broader restructuring which is expected to lead to more job cuts. "the wall street journal" says 10,000 jobs could be eliminated.
hewlett-packard shares fell another 6% after hours. the boards of h.p. and autonomy recommended autonomy shareholders accept h.p.'s almost $12 billion offer for the u.k. software company. shares of autonomy are soaring 77% in european trading. meanwhile, difficulties in the consumer market have h.p. considering spinning off its p.c. business. the company is killing its touchpad tablet which is launched just a couple of months ago. all of this news forced h.p. to report earnings early which beat estimates but concerns over futures, considerations weighed on investors there. back to you. >> all right. thank you very much, diane. we'll take a short break and when we come back, up to speed on what's going around on the global markets today after the big selloff on wall street. we'll be right back on this special report. the nascar nat, i know pleasing fans is a top priority, 'cause without the fans, there'd be no nascar. just like if it weren't for customers,
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>> let's get you up to speed on what's been going on around the world today. in asia, they are now closed and probably thankful for it. the nikkei is down 2 1/2%. check out the index in seoul, south korea. huge charge to the exits, the hang seng and the shanghai also lower. european markets same story. the dax index in frankfurt, another rough day to down more right around 3%. let's take a look at the commodities for you and get you up to speed there and we've seen all moving lower. again, right around now $80 a barrel and concerns with the global economy slowing down the demand for oil just won't be there. but look at gold, up 44 bucks at $1866 per ounce. are we headed towards 2000?
it looks like we might be in the near future. check out things are doing in europe on the heels of yesterday's steep declines there. lauren has been following all the action in europe on this friday morning. good morning to you. >> good morning. i have held on to a gold necklace i've been meaning to sell. now might be the time. they keep going up and up and up. here's how europe is doing. as you said, the selling is intensifying across europe. now, yesterday, if you recall, morgan stanley put out a note where he said u.s. and euro zone markets are close to heading to another recession. they cut their growth forecast for gdp to 1.7% and now barclay's coming out in essentially in a research note saying that the u.s. debt debate has been the single most important contributor to the intense fiction of this crisis we're seeing in europe and it's playing out on the screen. the u.s. is watching europe and europe is watching the u.s. this is what we're going to be responding to. it's below that key 5,000 level,
down 2 plus percent. in paris, it's lower by 60 points. that's nearly 2% and the german dax seems to be faring the worse. so obviously a sea of red. the banks are under pressure once again, five plus declines for many banks across the region. i picked out a couple, not doing well. if you remember yesterday, commerce bank in germany and society generale in france each lost 10 plus percent. not a good day. there are capital fears for the banks right now that are really playing out across europe and making investors very, very jittery. as you know, and this is not the way to end a week, ashley. >> no, it's not! thank goodness we can get to the weekend, the quicker the better. lauren taking a look at the european markets, thank you very much. let's go now up to ray hannesey, director of business news here at the fox business network to get your perspective on what's going on. what is the bigger worry? the european debt crisis and the
exposure of the banking sector or the fact that the u.s. could be headed to another recession? >> i mean, look at it from like a firefighting perspective. you've got, you know, this big, big fire right in front of you that's raging and i think that's the european debt thing. that has to be dealt with right away but behind that is all this dry brush that could just blow up and cause you months and months and months of problems and that's the u.s. economic outlook. you know, the philly fed number yesterday was the most important thing. i know everybody is talking about the european banks and people are talking about sovereign debt and the u.s. debt issues and things like that. if you have such a key manufacturing index like philly fed coming in so dramatically bad, you know, you are essentially in a recession. at some point, we'll stop trying to play these little games where we're reading the tea leaves and figure out when they're going to say we entered a recession or not. if you think you're in a recession and if the data points to something that's recessionary, you're essentially in a recession and that's going to have an impact, again, on things like corporate
profitability which has been the only strong thing in the whole sea of red and worry. >> would you agree, ray, that central issue for the world today is debt and because of that, it's up to the politicians and because of that, we're in trouble. >> right. you know, it's a very good point. this is -- this is very much kind of a political market right now, you know, the economists talk about something called regime uncertainty and that's what they -- what they talk about when they talk about how governments affect where the markets are or the indecision or actions of governments that effect where the markets are right now, you know, they're so focused on things like that and it's something over which they have no control at all. and the response of governments has been sort of laughable. you look at what we saw earlier this week with merkel and sarkozy when they came out what they decided to do was create another commission and set rules that even they themselves say they're not sure it can get through. we saw it with the debt debate. we had this vote after vote of
things that seemed great on paper, they couldn't get passed by congress. at some point, the market has to separate itself from this and actually, the good news is at some point, it will. at some point, the markets themselves will adjust to a level that kind of prices in armageddon. they price in just indecision, armageddon, you know, bad policy and then the markets move and build from there. i mean, historically, markets have risen in times of great political uncertainty simply because they find a good level to fall back on and that they build from. >> it does seem like it's very, very sensitive to every headline right now and "the wall street journal" reporting yesterday that u.s. regulators looking at the u.s. arms of the big european bank to make sure they have enough cash on hand for day to day operations. that's a never wracking development. >> it is. any time you wonder if the banks have enough capital, that scares people and what we've found during the financial crisis, you can have a run on the bank and not even know it. i think back to the executives
at whacovia who were saying one night they went to bed and the next morning they realized on line, people had been pulling out assets in droves so i think what u.s. banking regulators want to do is prevent that from happening. at the same time, if you signal you're trying to prevent that from happening, you're suggesting it could happen and that's sort of a delicate line that they're doing but again, it's like, you know, if you've got the three stooges, you know, managing your banking regulation and they're like, well, we're going to make sure everything is ok but we're worried but we're really not worried but we're kind of worried. that's not -- that's exactly the kind of thing the markets -- what the markets want to hear is banking executives saying we're fine, we're lending to one another. stay out of it. we don't need anything. once that happens, you get some stabilization and once big investors start coming in and backing these banks. you have a lot of money coming out of banking stocks particularly overseas but also over here, too. once people say, you know what? given the valuations here and
given the situation that we're in right now, they're too low and you start to see some money in. that's what sparks the broader market coming back. so that's the kind of gutsy move that we need on the part of some of these fund managers to do is come in and buy in. the question is, you know, do you want to be -- they also say on wall street do you want to catch a falling knife? of course you don't, you know, so there's no indication it's going to happen but when it does, that's what should give investors some confidence and put capital back in the market. >> and some interesting stats, ray, you know, investors who pulled out of the market in march 2009 after the turmoil of the financial crisis in 2008, they missed on a huge rebound. the s&p since that time up 68% so maybe it's sell now and ask questions later approach may not be the best. >> no, but you know what? no one should try to pick a bottom because no one can, you know, there's always that one lucky guy but also someone who winlz the lottery. so you can make very, you know, look at gold, they were very smart people saying gold was overvalued at $1,000.
that -- by the way, that premise still holds and the only problem is gold is over $1800, you know, it's very tough to pick a bottom in this market. you either stay in or you, you know, a lot of people will just put a little money here and there and try the cross average and things like that. i don't think anybody is going to say here's the bottom, this is the last stand because the bottom tends to stand out on you. >> what are you expecting today on wall street? >> selling at the open. haven't you seen the futures? come on. that's an easy question. >> now. ray, director of business news here at the fox business network, thank you very much. let's check in with diane mercada at the fox business headquarters with the latest business news. diane? >> good morning. there's a new twist in the case against dominique strauss-khan according to "the wall street journal", they are looking into claims the lawyer for strauss-khan's accuser said he'd make sure the criminal charges could be dropped if they could reach a civil settlement. it came after the maid's credibility was called into
question but no settlement was made. strauss-khan's lawyers have said their main motivation is to make money here. next court appearance is tuesday. john malone's liberty media won't be buying barnes & noble but they are investing $2.4 million. they purchased preferred stock that could be converted into 16.6% of the stake in that bookstore chain. earlier this year, liberty offered to buy barnes & noble for $17 a share with the main attraction being the nook e reader but they couldn't agree on how to value the device. shares of barnes & noble rose 3.5% in after hours trading. gap posted better than expected quarterly profit even as same store sales fell. consumer sentiment may worsen in the second half of the year and was cautious about the company's future sales growth. shares of gap moved higher in after hours trading. ashley, back to you. >> thank you very much.
in other news, president obama will wake up in martha's vineyard this morning as he begins a 10-day vacation in the midst of what is a global economic crisis fueling a growing debate over the timing of his trip. fox news chief white house correspondent ed henry is traveling with the president and has more. >> as he wrapped up his three day tour of the midwest, president obama hopped off the bus to give a pep talk to a high school football team in his home state. >> you guys stick together and you guys are playing hard and you're paying attention to your coach, i have no doubt you guys are going to succeed. >> it was the players, however, who ended up giving the president some political inspiration. >> win the day. i'm sure i like that. that's my motto every morning, man. >> the president may be embarking on a losing political proposition as he starts a 10-day vacation here on martha's vineyard. political analysts note during calm economic times, presidents like george w. bush spent plenty of time on vacation and the american public was largely fine with it. the danger comes when the
economy is in the tank as president h.w. bush found in 1992. >> it gets to the point where americans look at it and think, well, is the president really being fair in the sense of calling for sacrifice from others when he's enjoying himself in this case on vacation in martha's vineyard. >> the controversy comes at a sensitive time for the president. a gallup poll this week finding a new low of only 26% of americans approve of his handling of the economy. down 11 points since mid may. while disapproval has shot up from 60% to 71%. but the bus tour showed the president still has hardcore supporters in the heartland. >> i am not disappointed in you like michelle bachmann wants everyone to believe. >> thank you. i appreciate that. >> it might have been a smart strategy to schedule the tour before the vacation so the president could try to connect with voters and slam congressional republicans who are more unpopular than he is. >> the one thing that the president needs to convey to the
american public is that he is working 24/7 on resuscitating the economy and creating jobs. and to the extent he can turn to john boehner and the house republicans and either say that they're responsible for the downgrade in u.s. debted or that they're not fully engaged in bringing the economy back, that could be good for the president. >> of course, the president will not be working 24/7 on the economy here but aides say that he will spend some down time going over the final details of that new economic plan and big speech he's planning for next month. a huge challenge but also a big opportunity for this president to try and reconnect with some of those angry voters. on martha's vineyard, ed henry, fox news. >> another tsunami scare from an earthquake that rattled japan's northeastern coast a short time ago. the quake's preliminary magnitude 6.8. japan's meteorological society
says it struck south of where a massive magnitude 9.0 quake hit back in march. president obama has called on syrian president assad to step down. the u.s. joins the european union in demanding an end to the four decades of brutal family dictatorship in syria. u.n. investigators say assad's forces have killed at least 1900 civilians in what they're calling possible crimes against humanity. assad says he's put an end to a five month crackdown on government protesters but that will be tested again today with more demonstrations planned calling for his ouster. libyan leader muammar qaddafi is once again reportedly getting ready to flee the country. that's according to at least one news outlet. libyan officials are not confirming or denying the reports but there is speculation he may go to tunisia coming on heels from the reports of the pentagon that the rebels were making significant progress in the civil war. that's engulfed that country for months. at least three people are dead
after two suicide bombers attacked a british compound in kabul today. an official from the british embassy says the bombers struck the british council building and the spokesman for the taliban is claiming responsibility. the attack comes on afghan independence day marking the country's independence from british control in 1919. it is not clear yet whether the attack was related to that anniversary. explosions are rattling gaza city this morning. gaza militants are launching rockets into israel while israeli aircraft strike targets in palestinian territory. all of this coming in the aftermath of yesterday's deadly bus attack, gunmen who appeared to have come from gaza ambushed civilian vehicles in southern israel killing eight people, two of which were members of israeli security forces. and take a look at this craziness, georgetown's basketball team went to china for a good will game but, well, the game turned ugly. with 10 minutes to go in the second half, a wild brawl started. players trading blows and cleared the benches for an all
out melee. organizers struggling to restore order. the game was abandoned early. great for u.s.-china relations. now, lots of reaction to another down day to the markets. lou dobbs spoke with the former alaskan governor sarah palin about her thoughts of how president obama is handling this current economic downturn and gets into the g.o.p. field for 2012. here's some of that discussion. >> let's begin, if we may with the president and his jobs plan. are you excited to see what he's going to put forward? >> well, i'm not excited to hear his ninth speech about job creation, nothing's worked thus far and i think what we can happy, lou, is he will tell us that his plan is to spend more money, incur more debt, assuming that that's going to eventually get us out of debt, that's counterproductive really to debt and deficit reduction so he's going to tell us that he needs to spend more of our money and more money that we don't have and then he needs to increase
taxes to pay for those things. he needs to find money to borrow or print more money to spend more money and he's going to repeat that cycle. nothing's worked thus far and i anticipate more of the same, unfortunately. >> rick perry ran off ben bernanke and the federal reserve. as ron paul put it, governor perry is making ron paul look a little -- and this is ron paul making the point, making paul look like a moderate on the issue of the fed. what do you think of governor perry's remarks? >> he called it like he saw it and i respect people for doing so. what governor perry is voicing concern about is something that i wrote about on facebook pages about 10 months ago, this easing our debt, printing money out of thin air which eventually will devalue our dollar and i think lead to inflation in order to make it look like our debt isn't as bad as it really is. and governor perry was voicing
great concerns that many of us share. he used some more candid terms, i think, than some of us would have used. >> even you? >> well, yeah, that's a good point. perhaps i would have used similar terms but i do share his concern, though, that manipulation of currency and centralized government thinking it can plan an economy and backing off and letting the private sector do what we do best, let us stimulate the economy by using what it is that we earn and produce and using our own priorities, our investments according to our priorities to start growing businesses and hiring more people. that's the root problem here is a lack of jobs and debt incurrence and again what president obama has shown us in the past is he's incapable of handling the situation and getting us out of debt and out of this practice of deficit spending so that jobs can be created. i don't anticipate much good or
less turbulent waters up ahead. >> governor, the idea that we've got these folks running for the presidential nomination and i thought last thursday's debate was the best i've seen in some time by either party, frankly and i think that it's quite a strong field. are we going to see that field expand, do you think, certainly at least is that a possibility as far as you're concerned? >> i'm still considering it and i do anticipate a larger field. there will be some comings and goings. you know, legally and politically speaking, there are still some months left before the field has to be set but no, there are others who are on the outside looking in, wondering if the candidates who are in the ring today, in the arena, if they have the experience, if they have the wherewithall and if they have the commitment to allowing the private sector to grow and thrive and not rely on bigger government to make us
happy, healthy, wealthy and wise because government can't do that. if those candidates who are in there today grasp that, understand that, then we'll be satisfied with the field but if we don't get that sense from the candidates presently running, there will be more people jumping in there. >> more people jumping in amongst the names mentioned, of course, your own. governor chris christie is mentioned. congressman paul ryan. the likelihood that those names including your own would be added to the list, would make this one of the strongest fields ever to contest for the republican nomination. certainly in the last 50 years. but we also witnessed governor tim pawlenty go after congresswoman michelle bachmann who frankly i thought swatted him away and indeed out of the race but that is not the kind of thing that republicans particularly reaganesque republicans should be doing. do you think? >> i think there needs to be
healthy debate and spirited competition in contested primaries. i think it's a shame we don't get that on the other side of the aisle when the democrats kind of have their anointed one and they let that person go forward. i think that that is a bit unfortunate and unfair to the electorate. we need ideas expressed and solutions articulated. we need experience compared and you're going to see that in the g.o.p. contested primary and i'm all for these -- these candidates taking the gloves off and the general election is going to be tough. it's going to be rough and tumble. and getting through a primary, you know, you tend to get tested through that. and it's going to be good for the process, good for the end product, we hope, with an experienced, capable, trustworthy candidate rising to the surface. >> sarah palin talking to our very own lou dobbs. coming up after the break, live reports on how the markets overseas are faring following yesterday's steep declines on wall street. plus we'll hear from one u.s.
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>> after a few days of relative calm, volatility has returned to global markets disappointing economic data and concerns over european banks set off a selling frenzy on wall street yesterday. let the dow down 419 points. the fear and panic has spread overseas this morning. particularly in asia where the nikkei took a big hit, then in europe where markets are opening lower. meanwhile, one of the big u.s. banks that's been hard hit in recent days has announced plans to restructure which could result in as many as 10,000 job cuts. and despite this growing global economic crisis, of mounting criticism, president obama is taking time out for a 10-day vacation in martha's vineyard. i'm ashley webster. this is a fox business network
special report. and thank you for joining us. we're down in asia. we're down in europe after the big selloff on wall street yesterday. so what can we expect today? on the u.s. markets? let's take a look at the futures board for you and more red ink. the dow off 134 points. down about 1 1/4%. s&p down 15 points. the nasdaq also up 25% or down about 1 1/4%. let's take a look at those numbers from yesterday. just the ugly details. the dow under 11,000. down 419 points on the day. the nasdaq composite up 5 1/2% and the s&p slipping 4 1/2%. let's get you up to speed of what's happening today in asia. pretty much speaks for itself. the nikkei down 2 1/2%. check out south korea, down 6%. the third worst trading day in that exchange's history. the hang seng up 3% and the shanghai composite also down 1%. they are thankfully now into the weekend in asia. as for europe, it's gathering
down but momentum, off 100 points now. down more than 2%. in paris, down 2% and in germany on the dax index, down right around 3%. and let's take a look at the commodities for you with the concerns of a global slowdown and lack of demand for oil. check out oil now. right around $80 a barrel. down 2% on the day and meanwhile, money continuing to funnel into gold. up $1865 per ounce. fox news contributor katie sergeant joining us by phone from singapore with more on the trading day. as i said, thankfully asia heading into the weekend now to lick its wounds. >> that's exactly right, ashley. it was a very negative day for asia and red numbers all around following bad news on u.s. jobs and manufacturing and thursday's wall street selloff. in japan, the nikkei gave up 2 1/2% and economic news wasn't bad enough, the market was also literally rattled by an earthquake today. it struck northeastern japan late in the trading session. and that added to the selling
although some of those losses were pared by the end of the session. south co-reese kospi was the worst performer. even domestic stocks like some of the retailers lost ground today, concern growing household debt will curb domestic consumption. in hong kong, the hang seng gave up more than 3% today. so far this month, that index is down more than 13%. shanghai by contrast, a relatively good day, dropping just 1%. energy related stocks were among the big declineers there. ashley, it is time for the weekend in asia. >> says something when it's been a relatively good day for the shanghai, just losing 1%. katie sergeant in singapore this morning. thank you very much. let's check how things are doing this morning in europe. i think i know what. on the heels of yesterday's steep declines on wall street, lauren joining us with the very latest on the european action. good morning. >> good morning, ashley. unfortunately, things are trading to the down side and even further now as we speak.
about two hours into this session over in europe, indeed, waiting for the weekend to start. as you can see, the london 100 down 2/1/4%. france down 2% as well. and the german dax off more than 3% faring the worst out of the bunch. yesterday, 4% to 5% declines essentially across the board. that was the worst daily damage we've seen in europe in 32 months. think back to december of 2008 and i don't think anybody wants to go back to that time period. we have in addition to the banks selling off this morning, lloyds is down by about 8% right now on top of steep losses, we have energy stocks under pressure. b.p. shares are down about 3%. this after the u.s. coast guard asked a company and some others to investigate a sheen in the gulf of mexico and we have some of the carmakers down significantly as well. they are, of course, very economically sensitive stocks. there are fears and frustration out there, obviously, and those
are political as well as economical. the two strongest nations in the euro zone, france and germany, not staying enough amongst each other to stem this debt crisis from spreading and we do have some good news today particularly out of greece. finance minister there saying that july 21st agreement, that deal for the second bailout is, in fact, not in doubt. and will continue that stem, some concerns and i want to point out one quick bright spot for you, ashley. one stock up 75% today. it's a software maker autonomy up 75% in london because h.p. making a $10 billion offer to buy it. i will leave you on that positive note. >> and i'm smiling, one stock out there doing well today. we'll take it. lauren, thank you very much for telling us everything that's going on in europe and obviously, a selloff in europe, as we can see. let's check in with diane for what's going on in the business world this morning and good morning to you. >> good morning, ashley. i wish i had some more good news for you. not so at bva where there's more job cuts ahead.
they're planning to cut 3500 jobs in the current quarter. these layoffs are in addition to the 2500 cuts the bank has already made so far this year. they are making the move as part of a broader restructuring that are expected to lead to more job cuts. 10,000 jobs could be eliminated. hewlett-packard meanwhile, their shares fell another 6% after hours as lauren touched on. the boards of h.p. and autonomy recommended that autonomy shareholders accept h.p.'s almost $12 billion offer for the software company. shares of autonomy as lauren pointed out, though, soaring 77% in european trading. meanwhile, difficulties in the consumer market have h.p. considering spinning off the p.c. business and they are killing its touchpad tablet that it just launched a couple of months ago. all of this news forced h.p. to report earnings early that beat estimates but concerns over the future of the company are weighing on investors. ashley, back to you. >> all right, thank you very much. when we return, we'll check the markets and latest news
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>> welcome back to our special report on the markets. let's take a look at what the stock futures board is holding ahead of dow's opening. dow off 180 points now, the s&p off 21 points and the nasdaq down 1.6%. get you up to speed on what happened yesterday and this certainly triggered the selloff around the global markets today. dow off 419 points yesterday. the nasdaq composite down 5 1/4% on the day, the s&p 500 losing around 4 1/2%. what effect did this have on the global market? in asia, they are done for friday and heading into the weekend licking their wounds, the nikkei down 2 1/2%.
the kospi off 6 1/4%. shanghai composite. the star of the day losing just 1%. in europe, this downward momentum is starting to gather some steam. down 141 points and in paris, down almost 3% now. check out the dax index in frankfurt taking a hammering, down almost 4% and we're seeing the energy stocks move lower, the bank stocks and the automakers taking a pummelling today in european. commodities for you with concerns of a global slowdown. oil prices owneraround $80. gold at $1867 per troy ounce. a look at some of the other headlines. president obama is kicking off his 10-day vacation in martha's vineyard. he's facing a lot of criticism for the trip in the wake of the market turmoil and concerns about the struggling economy. the white house says the president won't be relaxing the whole time. he will be working with his
economic staff on an economic policy he'll be unveiling in september. he decided to skip a couple of fundraisers on the island head by debbie wasserman-schultz. another tsunami scare from an earthquake that rattled northeastern coast of japan a short time ago. the quake's preliminary magnitude 6.8 and a tsunami advisory for the area has been lifted. japan's meteorological society said it struck south of where a massive magnitude 9.0 quake hit back in march. president obama has called on syrian president assad to step down. the u.s. joining the european union in demanding an end to the four decades of brutal family dictatorship in syria. u.n. investigators say assad's forces have killed at least 1900 civilians in what they're calling possible crimes against humanity. assad says he's put an end to a five month crackdown on government protesters but that will be tested again today with more demonstrations planned
calling for his ouster. libyan leader muammar qaddafi is once again reportedly getting ready to flee the country. that's according to at least one news outlet. libyan officials aren't confirming or denying the report but there is speculation he may be going to tunisia. this comes on the heels of reports from the pentagon that the rebels were making significant progress in the civil war that has engulfed that country now for months. coming up next, a check of the markets again and jeff blunt takes a look at a bank that is remaining positive during this financial crisis. we'll be right back.
story on the s&p and the nasdaq off 1 1/2%. as for what we saw yesterday, here are the ugly details. the dow off 419 points. the nasdaq up by 5 1/4%. yesterday down 131 points and the s&p 500 down 4 1/2% on the day. as for asia, they are now closed and heading into the weekend. not before we saw this. the nikkei down 2 1/2%. the kospi off more than 6%. shanghai composite one of the better performing markets but losing 1%. as for europe, this downward momentum is continuing. down below that psychological 500 market. paris now down 3% and the dax index in frankfurt having a rough day down 3 1/2%. as for the commodities, well, we've seen oil continue to slip down 2 1/2%. right around $80 a barrel and gold, my goodness, up again. 43 bucks at $1865.
let's check in with diane for what's going on in the business world this morning. good morning to you. >> good morning to you, ashley. there's a new twist in the case against dominique strauss-khan. according to "the wall street journal", prosecutors are looking into claims that the lawyer for strauss-khan's accuser said he would make sure the criminal charges would be dropped if they could reach a civil settlement. it came after the maid's credibility was called into question but no settlement was actually made. strauss-khan's lawyers have made throughout the case that the maid and her lawyers' main motivation is make money off of it. the next court appearance is scheduled for tuesday. liberty media won't be buying barnes and nobles but they are investing $2.4 million. liberty purchased preferred stock that can be converted to 16.3% in the chain. they offered to buy barnes & noble for $17 a share.
they could not agree on how to devalue the device. intuit is reporting a couple of firsts. they posted a wider net loss but a profit on an adjusted basis for the first time in 13 years. the company also announced the approval of its first quarterly cash dividend to be paid out on october 18th. the news sent shares up more than 5% in after hours trading. metlife is putting its name on a major piece of sports real estate. the insurance giant is purchasing the naming rights to the home of the nfl giants and jets. "the new york post" is reporting the $1.6 billion meadowlands stadium will be called metlife stadium. and the deal could range as high as $20 million a year for 20 years. the stadium will also host the super bowl in 2014. "the post" says it could be announced as early as next week. and this just in, j.p. morgan chase is cutting its fourth quarter estimate for the u.s. gdp.
it comes on the heels of morgan stanley's decision to slash its global growth forecast. j.p. morgan is cutting its first quarter 2012 gdp estimate from 1.5% to 1/2%. ashley, back to you. >> all right, diane, thank you very much. a number of u.s. banks have been hard hit by the recent volatility in the markets but some of them are remaining upbeat in this time of crisis. fox business' jeff stopped by one of them and has this report. >> exclusively here on the fox business network, the president and ceo of fifth third bank chicago, an interesting time to be in the banking business and an interesting time for you to have just launched a campaign, it says, we're lending. we're not going to wait for the economy to improve. we're going to get out there and put the money into the market. do you have any second thoughts of what this market has done over the course of the past week or two? >> absolutely not, jeff. we've always been committed to lending much it's a big part of our business and we always will be going forward and it's not a new strategy for us again, we want to be more proactive with
our clients to let them know we have money to lend. >> bob sullivan has been sent to chicago specifically with a mission to increase the profile of fifth third bank and to lend money out in the marketplace. you've just done $10 billion worth of lending in the last, what is it, six months? >> yeah, that's across the company that we've done over $10 billion of gross new loans so i think that's a great reflection that the market is out there and it's just a matter of us being aggressive and getting out there. >> how much more do you have, say, over the course of the next year to lend? how much money is available to lend? >> in terms of our capital ratios and our capacity, we could lend another $20 billion to $30 billion. i don't anticipate that will happen but we want to let people know we have that kind of capacity. >> capital requirements that the government has put into place now, has had that a chilling impact? >> we've already met or exceeded all those capital requirements, jeff, so we're well positioned to deal with this going forward. >> tell me about the banking business, we just heard, i see your a.t.m. machine out there in the lobby, about imposing now new fees for use of a.t.m.'s, so
that's been creeping up for a while but actually to have an a.t.m. card, some banks thinking about charging for that. is something that's an inevitable or what? >> yeah, i think banks are looking at all their fees and as a result of the legislation and other regulations around regulation e, we've got to find a way to mitigate some of those revenue streams that we've had in the past. but we're always going to be very mindful of our clients and what's in their best interest as well. >> what will be the impact if this nation goes through a double dip because the economic news we've heard here over the past short term certainly hasn't looked good. >> yeah, obviously, that would not be positive but we do not anticipate that. we still feel there's a great deal of stability and continuity in the marketplace and again, that's why we think it's a good time to show some leadership and get out in front of this in terms of our ability to lend money to our clients. >> appreciate it very much, president, ceo, fifth third bank, chicago. fifth sthithird, a lot of peopl
want to know what's that. merger of the fifth national bank and third national bank many years ago. quirky name and now with a high profile in chicago and elsewhere, at a very interesting time. >> that was jeff reporting from chicago and we'll be tracking the markets all day long on the fox business network and for those of you watching fox news, "fox & friends" is next. and for those of you watching the fox business network, i'll be joined by my colleague as we continue our special report on the global economic crisis. i'm ashley webster. >> tgif, everyone. it is friday, august 19th. i'm gretchen carlson. thank you for sharing your time. another massive selloff around the world this morning. economists think we're dangerously close now to a second recession. stuart varney here early with what you need to know in one minute. >> and the courts want them out but the president wants to give illegal immigrants, wants them ready to be deported, a second chance, he's going around