9:55 AM New York – U.S. indexes tracked lower European markets after protests in Spain and Greece lifted tensions in the bond market and Spanish yields rose near 6%. Ford plans jobs cut in Europe. Onex agreed to acquire KraussMaffei for €568 million.
Stocks on Wall Street were under pressure after protests in Madrid turned violent and Greece faces its first major protest since the new coalition government assumed power in June.
Spain’s Prime Minister Mariano Rajoy is facing challenges on several fronts as his government struggles to sell government spending reforms and battles falling tax receipts and capital flight from the banking system.
In addition, tensions are rising between the central government in Madrid and regional governments as Prime Minster Rajoy demands stricter budgetary controls and limits the access the bailout funds.
The regional government of Catalonia, the northeast region of Spain with 20% of the nation’s output, has asked for a election in late November with a public referendum to secede Spain as popular unrest spreads separatist fervor.
While Spain is playing a waiting game in asking for a larger bailout, the leaders of the nation are negotiating with the troika and demanding lighter pension reforms.
Ahead of the finalization of the bailout request that may come as early as before the end of the year, according to 123jump.com sources in the European Central Bank and the International Monetary Fund.
Ford Plans Jobs Cut
Ford Motor Company plans to cut hundreds of salaried workers and reduce contract employees in Europe, in an effort to reduce costs amid plunging sales in the money-losing region.
The automaker intends to offer voluntary buyout programs in Germany, the U.K. and the rest of Europe.
Onex to Acquire KraussMaffei
Onex Corporation, the Canadian private equity firm agreed to acquire KraussMaffei AG, a manufacturer of plastic and rubber processing equipment for €568 million. The transaction is anticipated to close by March 2013.
), the vehicle re-marketing service provider reported fourth quarter total revenues rose to $226.6 million, from $215.4 million last year. Net income for the quarter increased to $44.9 million or 35 cents per diluted share compared to $40.5 million or 30 cents per share last year.
Jabil Circuit, Inc.
), the contract electronics manufacturer said fourth quarter net revenue rose 1.4% to $4.34 billion from the same quarter last year. Net income for the quarter fell to $82.8 million or 39 cents per diluted share compared to $114.3 million or 52 cents per share for the year-ago quarter.