Monday's Early Headlines
GM's Bankruptcy Filing Official.
will seek bankruptcy protection Monday and, if all goes as planned, emerge by Sept. 1 as a slimmed down company with less than half its current debt load as well as the ability to make money at domestic vehicle sales levels not seen in a quarter century. The Treasury will invest $30.1 billion in GM, providing financing through the bankruptcy process, and will initially hold 60% of the company, but it does not intend to stick its nose in everything the automaker does, officials said. President Obama is scheduled to speak at 11:55 a.m. EDT, followed by remarks from GM's CEO at 12:15 p.m. EDT.
Chrysler Asset Sale OK'd By Judge.
- A federal bankruptcy judge has approved the sale of most of
, clearing the way for the American automaker to exit court protection shortly. The plan gives a 55% stake of the new company to a union-run trust for retirees, a 20% stake to Fiat that can ultimately grow to 35% and smaller stakes to the U.S. and Canadian governments.
plans to increase production of cars and trucks in the third quarter by about 10% from a year earlier, the automaker's first significant production increase in almost two years, according to a report in
The Wall Street Journal
. The automaker plans to produce 150,000 cars and 310,000 trucks for a total of 460,000 vehicles, according to company officials, the
notes. It built 184,000 cars and 234,000 trucks for a total of 418,000 a year earlier.
Prudential Announces $1.25 Billion Offering.
is planning to raise $1.25 billion on its own through the sale of common stock. It will use the new cash for general corporate purposes, which could include adding capital to its insurance subsidiaries and for the repayment of short-term debt. Prudential added that it won't participate in the Treasury Department's Troubled Asset Relief Program, or TARP.
is selling 3.03 billion shares in
Industrial & Commercial Bank of China
, almost the entire stake it's free to divest under a revised lockup agreement with ICBC, according to
plane flying from Rio de Janeiro to Paris has gone missing, French President Nicolas Sarkozy said, according to
. The plane disappeared from radar screens between the Brazilian city of Natal and the Cape Verde island of Ilha do Sal, according to a Brazilian air force colonel speaking on CBN radio in Brazil. There were 228 people on board, according to reports.
Geithner Says Obama Will Bring Down Deficits.
- Treasury Secretary Timothy Geithner sought to assure China, America's biggest creditor, that the Obama administration is committed to attacking soaring budget deficits. China is the largest holder of Treasury securities, the result of the billions of dollars that have flown into the hands of Chinese companies because of more than a decade of record trade surpluses with the United States.
On the economic front, investors will have to contend with a report on personal income and spending for April at 8:30 a.m. EDT. Economists expect income and spending to fall 0.2% after similar declines in March. Later in the session, the May reading for the Institute for Supply Management's manufacturing index, and construction spending for April, will be posted.