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AIG Selling $6B in AIA Shares

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    FBN’s Diane Macedo breaks down the stories moving the markets ahead of the trading day.

  • Duration 5:05
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This is good drivers of the morning.

On the fox -- Good morning everyone AIG is selling shares and its Asian life insurance unit in an effort to pay back part of its 2008 bail out.

The company's operating a one point seven billion shares of AI age group.

Which are valued at about six billion dollars the -- represented a 14% stake in AA.

Less than half of what AIG holds in the company that sail along with the sale of other assets will allow AIG to pay off eight point four billion dollars.

Of the fifty billion is still -- -- US taxpayers.

China's prime minister meanwhile is taking steps to tackle concerns of slower growth for the country speaking to China's parliament today went about cut China's growth target for this year.

To seven and a half percent the first time the rate has dropped below 8%.

Since 2004.

The move is aimed at giving the economy more room to slowdown it needed -- -- China faces downward pressure on economic growth and prices remain high.

And that expanding consumer demand will be his first priority for this year.

-- along with President Hu Jintao are preparing to step down later this year after nearly a decade in power.

And then -- out of China is impacting markets this morning here in the US -- have been in the -- all morning.

Dow futures are down by 29 yes -- he's down by four and the NASDAQ down by seven.

-- in Europe we also had PMI data out of the UK and the eurozone that showed activity in the service sector for both slipped last month.

-- down by fifteen Paris is down almost eleven and Frankfurt's down almost sixty points.

Now let's take a closer look though it's moving these European markets but Dow Jones -- senior correspondent -- things over in London.

Nick we have this growth expecting -- -- coming out of China lower by half percentage point.

Why is that target number having such an impact on markets today.

Well puzzled because China has always seen as the -- do -- creation -- global growth at the moment I mean they're the ones who you know save everybody from diving into Nazi recession.

When we had the financial blow up a couple years ago so they are really key now.

Nobody's really that's spies -- this cut in the growth its prospects for 2010.

I think a lot of colleagues to me how little guys who depend on how inflation is doing you'll be getting a place because they to this week that replaces -- as much as people anticipate.

Then Beijing we'll have the room to lower interest rates and perhaps actually help.

But conceded in the kind that the that the country's really the government's really trying to -- encouraged at the moment it's -- remove things have from an export led economy.

More to a consumer led economy.

And that's really get a deal key.

Part of this.

Fun and you started touching on this already bet you know lower growth will allow Beijing to reform keep price controls.

Without causing an inflation spike monetary policy can stay broadly expansionary I mean there are a lot of positives this -- so why is it being viewed so negatively in the markets right now.

Well because you have to take this com.

In any package -- everything else that yet China's growth is Chinese growth is not going to be perhaps as much as some people have been anticipated.

And some people was still hoping that your time there was going to be Toledo all of its on the -- this but then you have the Euro zone growth this morning as PMI services -- Very disappointing also for the UK.

I don't see you just got this whole feeling now where word about Greece to see what -- to the private sector bondholders on Thursday.

We have applied central bank's meeting this week we also have the US -- -- this nonfarm payrolls on Friday so there's lots of reasons for people say hold on a second.

Let's just sit back and watch things for awhile.

Not sometimes that's the best -- next that we don't blame them for that I think that -- I that -- never London thanks neck.

And shares of BP are higher in the premarket after the company reached a settlement with thousands of residents and businesses in the Gulf of Mexico over the 2010 oil spill.

BP agreed to pay seven point eight billion dollars to settle claims for economic losses property damage.

And injuries related to this bill but the company still faces lawsuits from the US government along with five states.

Who's coastlines were damaged in that spill.

Eleven people were killed when the deep water horizon rig -- drilling -- rather exploded causing the worst offshore oil spill in US history.

Now let's get the latest on whether -- -- Maria Molina and our Fox Business by the senate he Maria.

Good morning -- and we do have some client whether Ford -- -- five quarter across northeast today from Boston out of Philadelphia some not really expecting any weather related travel delays but -- we do have some problems.

-- -- -- optimists out what we have a storm system that's bringing into the snow to unfortunately areas that already had to deal with the tornadoes.

Last week and say we're seeing national coming down across parts.

At Indiana all of which -- -- mostly over with otherwise eastern parts of Kentucky still and it.

West Virginia and west and parts of the state of Virginia also dealing with some snow snow fluctuations and should be on the order -- one to three inches.

Locally higher amounts and higher elevations.

All right Maria thanks.

Let's take a look at commodities now oil and all like the market -- been down most of the morning but now we're seeing oil.

Making a reverse there is up by about nine cents now at 106 dollars a barrel gold at 1704.

Imus in the morning continues right now.

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