TPG, Delta Weigh Separate AMR Bids

Delta Air Lines Inc. (DAL) and private equity firm TPG Capital are separately assessing possible bids for American Airlines parent AMR Corp. (AMR), with hopes that AMR's troubles present another opportunity for airline consolidation, people familiar with the matter said.

AMR filed for bankruptcy-court protection in late November and is in the midst of restructuring its debt and cutting labor costs after it. Any bid for AMR likely would come several months from now. AMR could use the bankruptcy process to shed a trove of obligation that a buyer might be hesitant to assume.

TPG Capital prefers to work with a strategic partner for a possible American Airlines investment, some of the people said. TPG, which has expertise in the airline industry, has approached AMR about its interest, they said.

MARKET WRAPS

Stocks
U.S. stocks edged slightly higher as the materials and industrial sectors pulled major indexes back into positive territory, erasing earlier losses that had followed three tepid readings on the state of the U.S. economy. "We're not seeing this market sell off on bad news," said Jonathan Corpina, senior managing partner of New York Stock Exchange floor broker Meridian Equity Partners. "I'm pleasantly surprised to see that this market did not sell off, even though it had every opportunity and excuse to do it."

Treasurys
A weak bond auction shook the U.S. Treasurys market out its doldrums Thursday, yanking prices lower after buyers showed tepid interest for 30-year debt yielding below 3%. The bid-to-cover ratio, which is a gauge of overall interest, came in at 2.60--the lowest since August last year. A group of buyers consisting of domestic banks and investment firms, known as direct bidders, purchased 7.2% of the offering. That's the lowest since March.

Forex
The euro rose to the day's high above $1.28 against the dollar Thursday after the head of the European Central Bank held off from signalling a future interest rate cut. Earlier in the day, the ECB kept key interest rates on hold at 1.00%, as expected, after rate cuts in the preceding two months. At a press conference following the bank's decision, Mario Draghi said he saw "substantial downside risks" to the euro-zone economy in an "environment of high uncertainty."

Verizon Decides Against $2 Fee

Verizon Wireless backed off a plan to charge some customers $2 to pay their bills after a barrage of customer complaints and the scrutiny of federal regulators.

The carrier had planned to implement the fee Jan. 15 for customers making one-time payments on the Verizon Wireless website or over the phone. Customers began petitions online to protest the fee, and the Federal Communications Commission said Friday that it was "concerned about Verizon's actions" and was "looking into the matter."

"We take great care to listen to our customers," Verizon Wireless Chief Executive Dan Mead said in an emailed statement. "The best path forward is to encourage customers to take advantage of the best and most efficient options, eliminating the need to institute the fee at this time."

Verizon Wireless--co-owned by Verizon Communications Inc. (VZ) and Vodafone Group PLC (VOD.LN, VOD)--had said the fee was necessary for convenience, without providing additional details. Users who paid through their bank's website or by automatic deduction from their credit cards, among other options, would not have been subject to the fee.

MARKET WRAPS

Stocks
U.S. stocks fell slightly on the final trading day of 2011, as investors put the finishing touches on what has been one of the most volatile years in recent memory. A dearth of news and low volumes gave investors little incentive to take a stand ahead of the long New Year holiday weekend. "Investors are looking to take a big relaxing breath and finish what's been a pretty challenging year," said Alan Gayle, senior investment strategist with RidgeWorth Investments. "Today is just a day to finish rebalancing portfolios and recognize that the score gets reset back to zero come Tuesday."

Treasurys
Treasury bonds exited this year on a high note Friday, wrapping up the best year since the 2008 global financial crisis and beating U.S. stocks and corporate bonds. The benchmark 10-year yield, a key rate the U.S. government pays to borrow from capital markets, ended the year below 2% for the first time since at least 1977. The yield, which moves inversely to the bond's price, tumbled by about 145 basis points for the year, the biggest calendar year decline since 2008 when the collapses of Lehman Brothers and Bear Stearns generated some of the biggest flight-to-safety demand on Treasury bonds on record.

Forex
The dollar fell against the major currencies Friday while the euro fell below 99.85 yen, its weakest level since December 2000. The moves are "just a blip before the year-end fixing in thin markets," said Greg Anderson of Citigroup in New York. The euro is now quoted at 100.01 versus the yen after hitting a low of 99.84, according to EBS via CQG.

Morgan Stanley To Lay Off 580 NY Employees

U.S. investment bank Morgan Stanley (MS) will soon lay off 580 New York employees, according to an official U.S. document, after earlier announcing plans to eliminate 1,600 jobs by the first quarter of 2012.

The New York downsizing was outlined in a document filed with the state department of labor and published Tuesday, which said the layoffs were taking place because of "economic" reasons, without providing further details.

The rolling layoffs began Dec. 15, affecting four different offices, according to the document published on the department's website.

On Dec. 15, the company announced it would eliminate 1,600 positions at all levels.