Treasuries down, stocks and dollar up
NEW YORK, Oct. 10 (UPI) -- Bond traders sold off heavily Tuesday on fears the U.S. Federal Reserve may not cut interest rates because of the economy's strength.
As a result of that selling, the price of the benchmark 10-year Treasury note lost 15/32, lifting its yield to 4.758 percent. That, in turn, boosted the dollar to 119.71 yen from 119.12 as the euro sank to $1.2526 from $1.2601.
Recent U.S. employment data indicated continuing strong job creation, traders said. Such data are perceived to lower the likelihood that the central bank will lower rates in December.
Stocks were little changed, with the Dow Jones industrial average up 8.24 or 0.07 percent to 11,866.05 on a volume of 1.2 billion shares. The Nasdaq composite gained 3.65 or 0.16 percent to 2,315.42 and the Standard & Poor's 500 rose by 2.54 or 0.19 percent to 1,353.20.
Tokyo's Nikkei 225 rose 41.19 or 0.25 percent to settle at 16,477.25 and London's FTSE 100 ended the session at 6,072.70 on a gain of 41.80 or 0.69 percent.
Radical surgery or death for Alitalia
ROME, Oct. 10 (UPI) -- Italian Prime Minister Romano Prodi gave Italy's national airline, and especially its unions, until Jan. 31 to accept radical changes or face bankruptcy.
"Alitalia is going through the worst moment in its history. The situation is totally out of control and I do not see any parachutes," Prodi said Tuesday to leaders of three Alitalia unions. "We have until January to hammer out a solution that can avoid bankruptcy."
Alitalia, in which Rome holds a controlling interest, is expected to lose about $380 million this year, the Times of London said.
Efforts to trim the payroll and privatize ground service have led to strikes, walkouts and vandalism. Just last week critical cables in two MD-80 jets were cut while the aircraft were in Naples for repairs. An inspection found the sabotage, which a pilot said could have led to a "massacre."
Meanwhile, the European Commission is putting pressure on Rome to stop bailing out the inefficient enterprise. It is considering whether a $1.5 billion "recapitalization" amounts to an illegal state subsidy.
Wheat futures prices soaring
CHICAGO, Oct. 10 (UPI) -- The price of wheat on the Chicago Board of Trade soared Tuesday on fears of falling Australian production because of a drought.
The price of the soft red winter wheat futures contract for December delivery rose by the trading limit of 30 cents for the second successive session, to hit $5.24 per bushel, the highest since June 1996, the Financial Times reported.
Wheat also rose Tuesday on the Kansas City Board of Trade, as well as French and British markets.
The price hikes are being spurred by forecasts that a severe drought will push Australia's crop to below 12 million metric tons, less than half the previous year.
French broadcaster to U.S. investor
PARIS, Oct. 10 (UPI) -- U.S. and French investors are buying control of a French television and cell phone broadcasting business for $4.1 billion.
Private equity firm Texas Pacific Group and French insurance giant AXA SA are buying 60 percent of Telediffusion de France SA, which transmits TV signals and cell phone calls across the country, The Wall Street Journal said Tuesday. Texas Pacific is getting about 75 percent of the shares being purchased, while AXA is getting approximately 25 percent.
Control of TDF is being bought from British private equity firm Charterhouse Capital Partners LLP and French state-owned investment business Caisse des Depots et Consignations, both of which jointly keep a 40-percent stake in the business.
The deal values TDF at about $6 billion, including existing debt.
