Benito Camela

Preview from Europe: Market Holds Up Well Despite Newsflow

The economy will have a small bounce, but the prospects are as ugly as ever. There is no sustainable source of demand to make it last.

I am not sure what are the equity guys smoking, but as at the end of 2007 they will find their match in the months ahead.

Forget about earnings, it is lower revenues that is screaming further reductions in earnings. Normalilzed PE ratios signal an S&P extremely expensive.

GM's New French Solution: Not Such a Hot Idea (GM)

If you missed the train with GM bonds, I suggest Ford bonds are spreads are wider and the company is in better financial health.

GM's New French Solution: Not Such a Hot Idea (GM)

A few thoughts just to clarify the situation.

Most people are not assuming a merge, but some sort of collaboration. A few areas come to mind, procurement the first, sharing of parts and platforms the second and distribution the third.

At this point, nobody is thinking in pushing Wagoner out soon -- he will be used through the UAW negotiations next year and burnt in the process. In the meantime, something would have come out of the discussions with Renault-Nissan and they would be collaborating at some level. At the point (end of 2007) the plot gets thicker and Wagoner can be replaced by Carlos on some sort of uber (GM-Nissan-Renalt) role.

There is no magic bullet in the short run, but Wagoner after being at the helm for so long it is just a matter of time before he is gone -- before the end of 2007 without any doubt.