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Slovakia rejects stronger EU bailout

Wednesday, October 12, 2011 - 01:57

Oct 11 - Summary of business headlines: Slovakia's government falls after bailout vote fails; Alcoa posts higher third-quarter profits; Wall Street could lose 10,000 jobs by 2012-NYS Comptroller; Stocks little changed. Conway G. Gittens reports.

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Slovakia's government has broken down. The political upheaval follows the rejection of a plan to bolster the euro zone's rescue fund known as the European Financial Stability Facility or EFSF. A re-vote is expected later in the week and is expected to pass with some political maneuvering. All of the other 16 euro zone members have already voted to give more power to the euro zone rescue fund. Alcoa kicked-off the third-quarter reporting season. Profits were up from a year ago at the world's largest aluminum producer, but sales and earnings were down from the second quarter due to a slowing global economy. Wall Street is facing some tough times ahead. Lucrative cash bonuses are expected to be down for the second year in a row, according to findings by the New York State Comptroller's Office, which also predicts 10,000 more financial industry jobs will be gone by the end of next year. Regulatory changes in the U.S., the European debt crisis, a shaky trading environment, and an iffy global economy are all negatives for the business of Wall Street. But you won't find much sympathy in a growing number of American cities. The Occupy Wall Street movement, now in its 25th day, marched from its home base in downtown New York City to a neighborhood filled with multi-million dollar homes uptown. The march against economic inequality was a push to extend a New York millionaire's tax. On the trading floor, investors were in a holding pattern as they awaited any fresh word of out Europe, which only came after the close. Meanwhile, European stocks drifted lower with trading closed hours before the Slovakian parliament rejected a stronger European bailout fund. Conway Gittens, Reuters

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Slovakia rejects stronger EU bailout

Wednesday, October 12, 2011 - 01:57