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Belgium to Pay $5.4B to Nationalize Bank Dexia

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    FBN’s Diane Macedo breaks down the stories moving the markets around the world.

  • Duration 5:14
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This is this Imus in the morning -- Program on the Fox Business.

Good morning everyone let's take a look at the markets right now here in the US futures are getting a boost after the leaders of France and Germany said -- reached an agreement about how to strengthen Europe's shaky banking sector.

Lack of Dow futures right now are by 125 the S&P is up by fourteen and the -- up by almost 29.

And over in Europe there's also news that Belgium's government will buy French Belgian bank Dexia is subsidiary for five point four billion.

As part of a restructuring of the bank stocks there are also in the Green Monday and up 56 pairs of 24.

And Frankfurt's of 23.

Now with more on what's moving those markets -- -- Randolph director of sovereign risk that I just global insight joins us now from London.

Young we have practically no details on this potential deal between France in Germany to boost the banking sector there.

And yet markets are up on the news or investors being too optimistic or is there more to it than that.

It's pretty difficult -- and until we you know what the -- tells off I mean that there was a strong show of mutual support.

By the -- Feldman leaders.

Overcoming -- questions about.

How banks are gonna be capitalized recapitalize.

In the face of well holding all this sovereign debt -- -- -- -- Basically you know the Germans didn't but yeah -- -- of the epithet the big -- funding used to bet recapitalize -- but -- half the pent up under supplied by German taxpayers.

So a lot of lot of foot details still to come throughout the terms of what they're educated.

And that is sticking with the banks namely a Dexia received an essential bail out from Belgium's government could you see other countries following suit here.

Yeah I think this is probably the first victim all of several to fall it.

-- -- was April -- because of it's a heavy exposure to Greek government debt and as a consequence.

Other banks -- knew that I'm refuse to provide liquidity for it in the Interbank markets -- -- because I didn't quit.

Had to be rescued by the three governments France Belgium and Luxembourg who are going to provide the financing because the markets went.

So -- -- it could be a movement really full others to follow.

And interesting where they use their own and I wonder what you think it will happen if that does become a pattern and we do see more and more bank ballots how does that affect yours Europe's economy overall.

What it's something they have to come to grips with -- it's tax cut the fat.

There in a position of managing these events rather then the events losing control of events not the key test strategy.

The French and German governments have decided now is the time they've run -- -- -- Basically it could come down and they recognize that banks recapitalization has to come post they've got to convince the banks.

-- they got convince the markets.

But whenever they hold -- console near is a government that they're more than adequate capital office for.

Hi thanks down.

And overt to the US here we have the Fox Business exclusive news for you sources that Citigroup and Bank of America are telling Fox Business.

That bank officials are working to wrap up a twenty billion dollar settlement.

With the federal government and state attorneys general the deal could come as soon as this week and it will settle allegations of improper mortgage practices.

And robo signing sources say JPMorgan Chase ally financial and Wells Fargo are also involved in talks.

And another name is -- the mix for possible takeover of Yahoo!.

Reuters is reporting Yahoo!'s co-founder Jerry Yang is interested in a deal to possibly take the Internet giant private.

The report also says the agreement would involve -- rolling over his stake in the company.

Which stood at more than three and a half percent as of early April Yahoo! shares right now are jumping in the premarket.

Now let's get the latest on weather from meteorologist Maria Molina and our Fox Business weather center -- get a a summer kind of the weekend here -- -- is cursory gonna see another one continuing for the week.

Yeah I enjoy -- -- today because -- otherwise it's basically coming to an and we have a storm system across the southeast is gonna be headed northbound and this guy.

Is the reason why and it's going to be coming to when and where looking at some cooler temperatures down the weak and also some rain.

Otherwise for -- to the -- we have a frontal boundary relatively weak bringing into light showers and areas of light rain from North Dakota all the way down.

Into the extreme northern portions of Louisiana so we're looking at some unsettled weather out there and you storm that we're gonna attract an across the northwestern in rain and cool weather out there highs only in the mid fifties for Seattle today.

-- thanks Maria and we have some breaking news right now net -- in announcing this morning that it's dropping plans to renaming dvd service quick steer.

Dvds will stay on the Netflix web site customers will continue to go to the website.

For both dvds and streaming services.

Here's a look at the commodities now oil and gold are both -- and have been all day and coming up later this hour Imus is -- -- be Jonas Ferris co-founder of -- and stuff come.

Imus in the morning continues right now on Fox Business.

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