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Futures Rally on Fiscal Cliff Deal

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  • Description

    FBN’s Adam Shapiro breaks down the stories moving the markets around the world.

  • Duration 4:57
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This transcript is automatically generated

This is that -- for -- -- A number of dozens -- remarks.

It's 7 AM we have a stock rally underway at least globally now the fiscal cliff is out of the way here at the United States futures have started trading at 6 AM and they are looking good as we head towards the opening bell at 930 in Europe stocks are rallying investors are buying equities and -- and bonds.

And it all started in Asia with anticipation of what congress did -- -- Shanghai.

Are closed for the holiday.

President Obama says he will sign the fiscal cliff agreement after lawmakers in the house approved the measure late last night it brings an end to months of high stakes back and forth political -- Peter -- is live in Washington and is Peter critics often do he's gonna give us a critique.

The had a hell -- hey Adam.

A day after of internal fighting among house Republicans and after hours of uncertainty the house gave final approval to the tax cut deal to 57 the 167.

A 172 Democrats.

And 85 Republicans voted for -- 151 Republicans voted against that many of them demanding that the bill be amended to include big spending cuts and sent back to the senate -- Republican House leaders determined a vote on that would fail in the house so speaker Boehner without comment allowed the bill to come to the floor.

That -- up a fight over spending cuts and entitlement reforms when the president asks for another increase in the debt ceiling and the next couple of months.

Today's agreement and shrines I think a principal in the wall the -- remain in place as long as I'm president.

The deficit needs to be reduced in a way that's balance.

Everyone pays their fair share.

Everyone does their part.

That's our economy works best that's how we grow.

Now after the vote last night speaker Boehner issued a statement that said quote now the focus turns to spending the American people re elected a Republican majority in the house and we will use it and 2013.

To hold the president accountable for the balanced approached he promised.

Now here's what the tax bill would do it would raise taxes on individuals with incomes of more than 400000 couples with incomes -- -- 50000.

And last taxes on capital gains and dividends to go up for those taxpayers to 20%.

But they will stay at 15% for taxpayers under those income levels the bill extends unemployment benefits for another years.

Delays the sequester and allows the 2% payroll tax cut to expire so today.

Will be going up or.

Everyone out of.

-- -- thank you very much in Europe we're watching us stock rally as investors leave bonds and purchase equities -- -- market analyst at BGC partners.

Joins us now -- -- the president Dennis sound -- saying the economy is expected to grow not sure how raising taxes grows and economy but investors in Europe don't seem to be too worried.

-- No I mean markets these days -- tend to discount much more than what's immediately in front -- given the fact that the fiscal cliff which have been overhanging markets certainly near the last couple of weeks.

Seems to be in averted at least temporarily.

-- given not just the stock market -- put -- a massive risk rally is seeing.

You know bank stocks rally leasing basic measles is stocks rally you -- -- rotation from.

From coal bones wounds.

Into double risky periphery.

-- -- -- commodities up so yes this Briscoe on the with a vengeance right now.

But Mike risk gone -- the PMI readings indicate contraction in Europe and we're still not sure what's gonna happen in the United States to look at the PMI reading for another two hours.

Yeah and I -- I I agree I mean I think that.

What what's what's been a feature of markets over the last year or so particularly in Europe has been -- it's been a risk rally.

It's been very little to do with -- we know that Saturday and the PMI numbers are from Europe this morning.

Indicated as -- seventeenth.

Successive month of contraction.

It's going to be -- -- recession next yet this year it's probably gonna do -- is pretty much zero growth in 2040.

So yeah I mean I think that you know that there were big growth questions over the European economy I guess as he set yourself -- -- still don't know what the end game is all on the on the fiscal cliff.

In the US like I failed to believe that the that the spending policy question isn't going to be addressed sooner rather -- up.

So Mike Herman BDC partners thank you very much why worry about tomorrow -- -- we can deal with a stock rally today especially with the US government about to spend trillions of dollars it does that thank you very much sir.

Shares of zip car rallying in premarket trading after Avis Budget Group said it's buying the car sharing company for a total of 500 million dollars or twelve dollars and 35 cents a share in cash that's.

A 49% premium over the stock's closing price on Monday.

-- -- says the deal is expected to produce annual savings of between fifty and seventy million dollars.

If this budget is also backing prior estimates of its full year 2012 results.

Here's a look at commodities oil and gold trading up right now and here's the -- man on Fox Business giving you the power to prosper.

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