Reuters Insider - Inside the News: After AIG Sells Stock, Challenges Remain
13/06/2016 10:59
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Source: Thomson Reuters
Description: Reuters sources say the U.S. Treasury is planning
two large AIG stock sales in 2011, with the
remaining to be sold in 2012. Following the sales,
AIG must focus on growing their core operations.
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Transcript (May be auto-generated)
Time to go inside the news at 1PM. Just crossing the Reuters wires, Fitch has
put grease on Ratings Watch negative, placing its current BBB- rating in
jeopardy. It expects there's a heightened probability that Greece's sovereign
ratings will be downgraded. The expected review should be completed during
January 2011. We'll have more on that through the course of the day. Well,
stocks right now, are up across the board and should the S&P close at its
current level, it will have finally erased all of the losses it incurred
following the Lehman Brothers bankruptcy on September 15, 2008. That's a
significant milestone, yes, but the index is still 20% below its all-time high
from October 2007. Stellar performer has been Midcaps. The S&P Midcap 400 at a
3.5-year high today is now just 2% below its all-time high reached in July 2007.
The index is up more than 25% so far this year.
Well, the US Treasury Department plans two big AIG stock sales next year
according to Reuters sources. And it will sell any remaining stock in the
company in 2012. Reuters Correspondent Paritosh Bansal broke the story and he
joins us now with more. So Paritosh, what's next for AIG? What kind of
challenges do they face? Well, for one, they have to sort of still stabilize and
grow their core companies Chartis and SunAmerica. Chartis faces tough pricing
environment and SunAmerica faces a low interest rate environment that needs to
get forward. And then, there's Benmosche health, who has cancer. And that sort
of uncertainty still hangs over the company. Benmosche startled the board that
he'll sort of tell the board his prognosis early next year and sort of the
decision on what happens to the next CEO, whether he stays on will be taken.
Okay. Thank you, Paritosh.
Well, the FCC is meeting right now on controversial net neutrality rules. The
proposed rules would ban high-speed internet service providers from blocking or
slowing lawful content. They will also allow phone and cable companies to charge
consumers based on their usage. Any new rules regulating the Internet would
likely be met with court challenges. You can watch the vote live on the Reuters
Insider platform. And at today's hot stocks, shares of Martek Biosciences are
trading about 80 times their average daily volume from the past 30 days, making
it not only its busiest day ever but setting in on pace to turn over its public
float in a single day. Dutch group DSM agreed to buy the US baby food
ingredients maker in a $1.1 billion deal. Stock's up at about 35%. And shares of
Jabil Circuit are changing hands at about three times their average daily
volume.
The contract manufacturer forecast an upbeat second quarter and posted results
that beat analysts' estimates. The company's share spiked to a 3-year high on
the news and are up about 10% right now. And an update, if you are traveling to
the UK this holiday season, the second runway at London's Heathrow Airport has
now reopened. A spokeswoman for the British Airport Authority said although the
airport was now fully up and running, it would take time for all services to
resume and warned passengers to check with their airlines first. Coming up at
1:15, Reuters Quantitative Analyst Mike Tarsala will tell you what Thomson
Reuters trend intensity indicator says about how much further the S&P has to go
from here. And at 2PM, we'll get the latest insight and analysis on Ernst &
Young being sued over its role in the 2008 collapse of Lehman Brothers. I'm Dan
Burns, this is Reuters Insider