WSProfit Bear Super-Cycle News

Friday, October 10, 2008

MARKETS CRASH AGAIN

All eyes on policymakers as investors dump stocks - LONDON/HONG KONG, Oct 10 (Reuters) - The world's economic powers faced huge pressure on Friday to devise drastic remedies to revive the banking system and end panic selling in global financial markets.

Fears grip investors as global equities routed LONDON, Oct 10 (Reuters) - Europe joined Asia's panic selling of stocks on Friday, knocking the benchmark world equity index to a 5-year trough, while the low-yielding yen jumped as fears grew that policymakers' efforts to contain the global financial crisis won't be enough.

Monetary easing overwhelmed by credit freeze

BEIJING, Oct 10 (Reuters) - Monetary easing in Asia and massive U.S. bank borrowing from the Federal Reserve did little to calm the panic in credit markets at the epicentre of the global financial crisis.

M.Stanley under pressure on MUFG concerns, outlook - HONG KONG/TOKYO, Oct 10 (Reuters) - Pressure mounted on Morgan Stanley on Friday, with investors unconvinced about its deal with Mitsubishi UFJ and two analyst reports citing concerns about the bank's earnings outlook.

Japan offers to help fund IMF-led rescues - WASHINGTON/TOKYO, Oct 10 (Reuters) - Japan stands ready to help the International Monetary Fund ride to the rescue of countries struck down by the global credit crisis, Finance Minister Shoichi Nakagawa said.

Central European currencies and stocks stumble - PRAGUE, Oct 10 (Reuters) - The Hungarian forint hit a two year low on Friday and the Polish zloty led central European currency losses, as a fresh wave of risk aversion spurred selling in emerging markets.

India cuts reserve ratio, scraps bond - MUMBAI, Oct 10 (Reuters) - Indian authorities slashed banks' reserve requirement on Friday and pledged more funds to ease a credit squeeze that drove short-term borrowing rates to 19-month highs and forced the government to scrap a bond sale. 

S.Korea scrambles to defend sliding markets - SEOUL, Oct 10 (Reuters) - South Korea scrambled on Friday to prop up its tumbling markets with the finance minister set to plead with U.S. bankers to keep credit lines open for local banks under threat from the global financial crisis.

Global crisis claims Japan insurer - TOKYO, Oct 10 (Reuters) - The global credit crisis claimed its first Japanese financial institution on Friday and the government looked to prop up smaller banks, as Tokyo shares suffered their biggest rout since a 1987 crash.

 

Thursday, October 09, 2008

MARKETS CRASH AGAIN

Wednesday, October 08, 2008

MARKETS CRASH AGAIN

World's central banks cut rates amid clamor to act - NEW YORK, Oct 8 (Reuters) - Central banks around the world cut interest rates in unison on Wednesday, responding to a worldwide clamor for concerted action to contain the worst financial crisis since the Great Depression.

Wall Street rises in volatile trade after rate cuts - NEW YORK, Oct 8 (Reuters) - U.S. stocks rose on Wednesday, as investors snapped up bargains after five straight days of losses, but trading was extremely volatile amid uncertainty about whether a coordinated worldwide cut in interest rates would be enough to avert a global recession.

Financial storm tips world toward recession - IMF - WASHINGTON, Oct 8 (Reuters) - The International Monetary Fund, in its bleakest forecast in years, said on Wednesday the world economy was set for a major downturn with the United States and Europe either in or on the brink of recession.

Obama, McCain applaud lending rate cut - NASHVILLE, Tenn., Oct 8 (Reuters) - Republican John McCain and Democrat Barack Obama welcomed a global cut in lending rates on Wednesday, keeping the focus of their bruising White House race on remedies for the ailing economy.

Treasury bonds plunge on debt supply plans, note sales - NEW YORK, Oct 8 (Reuters) - U.S. Treasuries prices plunged on Wednesday, sending benchmark notes over two points lower on expectations of a flurry of new debt supply and after a tepid reception in an auction of an older 10-year note issue.

Britain provides billions to shore up banks - LONDON, Oct 8 (Reuters) - Britain pledged hundreds of billions of pounds to rescue its banking system on Wednesday and joined other major economies in cutting interest rates to tackle the global financial crisis.

U.S. August pending home sales jump 7.4 percent - Realtors - NEW YORK, Oct 8 (Reuters) - Pending sales of existing U.S. homes unexpectedly jumped in August to the highest in over a year, data from a real estate trade group showed on Wednesday.

U.S. September sales disappoint, some forecasts cut - NEW YORK, Oct 8 (Reuters) - U.S. retailers posted disappointing September sales on Wednesday, hurt by a global financial crisis that prompted shoppers to turn more frugal and raised concerns of an even weaker holiday shopping season.

U.S. department stores slash earnings forecasts - NEW YORK, Oct 8 (Reuters) - Top U.S. department store chains such as J.C. Penney Co and Kohl's Corp posted disappointing September sales results and cut earnings forecasts on Wednesday, as shoppers, wary of a widening global financial crisis, limited their spending.

Friday, - 10/03/08

MARKETS CRASH AGAIN

 

U.S. House passes financial bailout - NEW YORK/WASHINGTON Oct 3 (Reuters) - The U.S. House of Representatives approved a $700 billion bailout package for U.S. banks, under pressure from all sides as the effort to head off a spreading financial crisis hung in the balance.

 

Bailout in balance as U.S. House debates bill - NEW YORK, Oct 3 (Reuters) - The U.S. House of Representatives started work on a $700 billion bailout package for U.S. banks, under pressure from all sides as the effort to head off a spreading financial crisis hung in the balance.

 

Money markets frozen; eyes on US bill vote

LONDON/TOKYO, Oct 3 (Reuters) - Money markets remained largely frozen on Friday as banks waited to see if the U.S. House of Representatives will pass a $700 billion bill aimed at encouraging banks to start lending to each other again.

 

U.S. service sector barely grows in September - NEW YORK, Oct 3 (Reuters) - The sluggish U.S. service sector was barely growing in September as the country's worst financial crisis since the Great Depression reached new heights, according to a report released on Friday.

 

U.S. September job losses steepest in 5-1/2 years - WASHINGTON, Oct 3 (Reuters) - U.S. employers cut payrolls at the steepest rate in 5-1/2 years in September, slashing an unexpectedly large 159,000 jobs as employment contracted for a ninth straight month, suggesting the economy may be in recession.

 

Euro zone services data hints at recession - LONDON, Oct 3 (Reuters) - Euro zone services activity held near a five-year low in September, while business confidence hit its lowest in at least a decade, increasing the likelihood the 15-member bloc is in recession, a survey showed on Friday.

 

Wells to buy Wachovia for $15.1 billion; Citi deal off - NEW YORK, Oct 3 (Reuters) - Wells Fargo & Co said it agreed to buy Wachovia Corp for about $15.1 billion, without U.S. government help, thwarting a planned Citigroup Inc deal that had been seen as big boost for both Citi and Wachovia.

 

UBS pares investment banking, to cut 2,000 jobs - ZURICH/NEW YORK, Oct 3 (Reuters) - UBS AG said it is cutting another 2,000 jobs at its troubled investment bank and closing most of its commodities business but will remain a universal bank and will not quit investment banking completely.

 

France seeks EU unity on crisis before meeting - PARIS, Oct 3 (Reuters) - Europe must find a united response to a financial crisis which risks pushing the global economy into an abyss, French Prime Minister Francois Fillon said on Friday ahead of a meeting of EU leaders to discuss the turmoil.

 

UK lifts guarantee for savers, BoE acts on funding - LONDON, Oct 3 (Reuters) - British bank savings of up to 50,000 pounds ($88,390) will be guaranteed by the government from next week and the sum could be further increased as regulators battle to restore confidence in the banking sector.

 

Wednesday – 10/01/08

MARKETS CRASH AGAIN

 

U.S. Senate gears up for vote on bank rescue plan  - NEW YORK, Oct 1 (Reuters) - The U.S. Senate geared up to vote on a revised $700 billion rescue plan for the financial sector on Wednesday as nervousness gripped Wall Street and bank-to-bank lending worldwide remained paralyzed.

 

GE says Warren Buffett to invest $3 billion in shares - BOSTON, Oct 1 (Reuters) - General Electric Co said on Wednesday it would sell $3 billion of preferred shares to Warren Buffett's Berkshire Hathaway Inc, with another $12 billion in common shares going to the public.

 

Wall Street falls on credit worry; Senate vote looms - NEW YORK, Oct 1 (Reuters) - U.S. stocks fell in choppy trading on Wednesday as tight credit markets and U.S. jobs weakness kept investors on edge before a Senate vote on a revamped rescue plan for the financial sector.

 

U.S. factories mired in recession levels, jobs weak - NEW YORK, Oct 1 (Reuters) - U.S. factory activity shrank in September to its lowest since the 2001 recession, and private employers shed jobs for the third time in four months as the financial crisis tightened its grip on the world's largest economy.

 

IBM posts biggest drop in three years on profit worry - BOSTON, Oct 1 (Reuters) - IBM shares tumbled 6 percent on Wednesday, their biggest drop in three years, on concern the world's biggest computer services company's results missed Wall Street targets in the quarter that ended Sept 30.

 

Tuesday – 09/30/08

MARKETS CRASH AGAIN

 

U.S. Senate sets vote on financial bailout - WASHINGTON, Sept 30 (Reuters) - The U.S. Senate agreed to vote on a $700 billion financial rescue package on Wednesday night that will include an increase in the amount of bank deposits insured by the FDIC to $250,000 from $100,000, a Senate aide said on Tuesday.

 

Oil rises $6 on U.S. bailout optimism

NEW YORK, Sept 30 (Reuters) - Oil rose $6 per barrel on Tuesday to over $102 as expectations U.S. lawmakers would pass a financial stability plan boosted global markets.

 

Stocks rally as Bush pushes revived bailout - NEW YORK/WASHINGTON Sept 30 (Reuters) - U.S. lawmakers and President George W. Bush eased pressure on financial markets on Tuesday by starting work to revive a $700 billion bailout plan to stem a credit crisis that has spread beyond Wall Street to claim more European banks.

 

SEC gives banks more leeway on mark-to-market - WASHINGTON, Sept 30 (Reuters) - U.S. securities regulators on Tuesday gave the financial industry a reprieve from marking hard-to-value assets down to fire sale prices, throwing a lifeline to an industry beset by strained credit markets and the latest round of bank failures.

 

U.S. FDIC says higher insurance limits helpful - WASHINGTON, Sept 30 (Reuters) - Temporarily raising the U.S. bank deposit insurance limits would help address a crisis of confidence in the markets and provide additional liquidity to banks for lending, the head of the Federal Deposit Insurance Corp said on Tuesday.

 

Bank rates soar on cash dash, central banks supply funds - LONDON/NEW YORK, Sept 30 (Reuters) - The cost of borrowing overnight dollars skyrocketed on Tuesday, prompting central banks worldwide to unleash billions into money markets to prevent them from a lockup, a day after U.S. lawmakers' rejection of a $700 billion financial industry bailout.

 

US must act, Europe stand ready - IMF chief - WASHINGTON, Sept 30 (Reuters) - The United States needs to act urgently to shield its economy from an escalating credit crisis and Europe must ready plans in case its problems worsen, the head of the International Monetary Fund said on Tuesday.

 

Wall St rallies on bailout revival hopes - NEW YORK, Sept 30 (Reuters) - Wall Street had its best day in six years on Tuesday, a day after its worst sell-off since just after the October 1987 stock market crash, as investors bet Washington would revive a plan to stabilize the U.S. financial sector after its surprising defeat on Monday on Capitol Hill.

 

Monday – 09/29/08

MARKETS CRASH AGAIN

 

Wachovia's shares fall 60 pct on assets concerns - NEW YORK, Sept 29 (Reuters) - Shares of Wachovia Corp sank 60 percent in early electronic trading on Monday on concerns about its huge portfolio of illiquid assets and no deal has yet to emerge after sources said it was in talks with Citigroup Inc and Wells Fargo & Co to be taken over.

 

U.S. bailout looms as banks rescued in Europe - WASHINGTON/BRUSSELS, Sept 29 (Reuters) - A swathe of bank rescue deals took shape around Europe on Monday and fear gripped financial markets before a U.S. lawmaker vote to push through a $700 billion fund to deal with toxic debt.

 

Governments rescue Fortis but bank woes spread - BRUSSELS/AMSTERDAM, Sept 29 (Reuters)                - 1 -  Three governments nationalised banking and insurance group Fortis in a bid to avert U.S.-style financial contagion, but the European sector's troubles appeared to be spreading on Monday. 

 

European banking woes hit shares, euro - LONDON, Sept 29 (Reuters) - World stocks tumbled on Monday, led by sharp falls in Europe as three European banks became the latest casualties of spreading credit woes, forcing partial nationalisations and overshadowing Washington's bailout plan.

 

Central banks inject more cash as bank crisis deepens - SINGAPORE/FRANKFURT, Sept 29 (Reuters) - The Bank of England and European Central Bank joined Asian authorities in pumping more cash into banks on Monday to persuade them to resume lending to each other as a sector crisis spread to Europe.

 

Britain nationalises Bradford & Bingley -LONDON, Sept 29 (Reuters) - Britain nationalised Bradford & Bingley on Monday, making the buy-to-let mortgage lender the second bank to be taken into public ownership this year as a deepening financial crisis claims more victims around the world.

 

Credit crunch to blunt M&A despite bank rescues -LONDON, Sept 29 (Reuters) - Rescues of troubled rivals are propping up investment banking revenues, but the deals are not generating enough business to offset a credit crunch-driven slump in global mergers and acquisitions that is unlikely to end soon.

 

Euro zone sentiment hits seven-year low in Sept -BRUSSELS, Sept 29 (Reuters) - Euro zone economic sentiment sank to an almost seven-year low in September, underlining a growing risk the economy will fall into recession, data showed on Monday.

 

Friday – 09/19/08

MARKETS CRASH AGAIN

 

U.S. rescue plan spurs Wall St rally - NEW YORK, Sept 19 (Reuters) - Sweeping government measures to rescue the financial system and restore confidence in shaky markets spurred a huge relief rally in U.S. stocks on Friday, ending a week that saw the most dramatic reshaping of the financial landscape since the Great Depression.

 

US joins worldwide crackdown on short sellers - NEW YORK Sept 19 (Reuters) - Regulators around the world banned or limited short-selling of financial shares on Friday, igniting big rallies in a sector that had been targeted by sellers as the credit crisis deepened.

 

Wall St rallies on U.S. rescue plan - NEW YORK, Sept 19 (Reuters) - Sweeping government measures to rescue the financial system and restore confidence in shaky markets spurred a huge relief rally in U.S. stocks on Friday, ending a week that saw the most dramatic reshaping of the financial landscape since the Great Depression.

 

US launches all-out attack on credit crisis – WASHINGTON, Sept 19 (Reuters) - The United States surged into action on Friday to launch an all-out attack against the worst financial crisis since the Great Depression, readying a plan to tap hundreds of billions of dollars in taxpayer funds to buy up toxic mortgage-related debts. 

 

Bush: intervention needed, "pivotal moment" for U.S. economy - WASHINGTON, Sept 19 (Reuters) - U.S. President George W. Bush said on Friday that government intervention was necessary to solve the problems roiling the financial markets, calling it a "pivotal moment for America's economy."

 

Oil posts biggest 3-day gain since 1998 - NEW YORK/LONDON, Sept 19 (Reuters) - Oil prices rose almost 7 percent on Friday to cap their biggest three-day rally in a decade on expectations a sweeping U.S. government bailout plan would boost liquidity across the battered financial markets.

 

Thursday - 09/18/08 – MARKETS @ TIPPING POINT!

 

Central banks turn on taps to tackle market squeeze - FRANKFURT/TOKYO, Sept 18 (Reuters) - The world's top central banks said on Thursday they would pump more than $180 billion in extra dollar funds into global money markets in a coordinated effort to ease a funding squeeze triggered by the upheaval on Wall Street.

 

Russian stocks remain suspended, reserves sink - MOSCOW, Sept 18 (Reuters) - Russian authorities pledged a further $25 billion in support to financial markets but stock trading was shut for a second day after the worst losses in a decade, while foreign exchange reserves fell by $13 billion.

 

Japan business mood gloomy; BOJ cuts capex view - TOKYO, Sept 18 (Reuters) - Japanese manufacturers have extended their run of pessimism to five months while sentiment among other businesses sank to its lowest in nearly five years, a Reuters poll showed, reflecting widespread gloom as the economy heads towards recession.

 

Morgan Stanley in talks as fear grips financials - HONG KONG/LONDON, Sept 18 (Reuters) - Morgan Stanley topped the list of major financial firms scrambling to find a buyer, while central banks rushed in $180 billion of extra liquidity to bring some calm to panicked stock and money markets.

 

Lloyds seals $22 bln rescue deal for HBOS - LONDON, Sept 18 (Reuters) - Lloyds TSB sealed a rescue takeover of HBOS Plc on Thursday to create a dominant British mortgage and savings bank in a $22 billion deal helped through by the government.

 

UK retail sales surge unexpectedly in August - LONDON, Sept 18 (Reuters) - Summer promotions and back-to-school shopping gave British retail sales an unexpected boost in August, official data showed on Thursday, raising questions about the extent of the consumer slowdown.

 

 

Wednesday -09/17/08

MARKETS CRASH AGAIN

 

Japan business mood stays gloomy-Reuters Tankan - TOKYO, Sept 18 (Reuters) - Business confidence among Japanese manufacturers remained negative for the fifth month in a row in September and non-manufacturers' sentiment sank to a nearly five-year low, a Reuters poll showed on Thursday, reflecting widespread gloom as the economy heads into recession.

 

Banks rush to do deals as Wall St crisis deepens - NEW YORK, Sept 17 (Reuters) - Wall Street's manic dealmaking reached a new pitch on Wednesday as U.S. share prices plummeted to three-year lows and forced increasingly desperate major banks to scramble for merger partners.

 

Raw fear slams Asian stocks, 'safe' gold rises - HONG KONG, Sept 18 (Reuters) - Asian stocks tumbled 3-4 percent on Thursday, with emergency actions by central banks and governments around the world failing to ease a financial crisis that has sent investors fleeing to gold and government bonds.

 

Fed rescues AIG, Barclays buys Lehman US unit - HONG KONG, Sept 17 (Reuters) - U.S. authorities engineered an $85 billion rescue of insurance giant American International Group Inc, staving off bankruptcy and bringing a measure of calm to shell-shocked global markets.

 

UK banks Lloyds, HBOS in merger talks -source - LONDON, Sept 17 (Reuters) - British bank Lloyds TSB is in merger talks with domestic rival HBOS Plc to create a 28 billion pound ($50 billion) mortgage giant, a person familiar with the matter said on Wednesday.

 

Russian stocks plunge despite government measures - MOSCOW, Sept 17 (Reuters) - Russian stocks plumbed new lows on Wednesday in the worst decline in at least a decade, as first anti-crisis measures by the government and a salvage plan for a brokerage failed to ease the crisis of confidence on the market.

 

UK jobless numbers jump most since 1992 - LONDON, Sept 17 (Reuters) - The number of Britons claiming unemployment benefit rose for a seventh consecutive month in August and by its biggest amount since December 1992, official data showed on Wednesday.

 

 

Tuesday – 09/16/08

MARKETS CRASH AGAIN

 

Fed holds rates steady in face of turbulence - WASHINGTON, Sept 16 (Reuters) - The Federal Reserve held its key benchmark U.S. interest rate steady on Tuesday, opting for the time being to soothe rattled financial markets with central bank lending facilities rather than rate cuts.

 

Central banks struggle to contain market crisis - BERLIN/TOKYO, Sept 16 (Reuters) - Central banks pumped massive amounts of extra funds into global financial markets for the second day running on Tuesday to contain the fallout from the crisis sweeping Wall Street's biggest firms.

 

British inflation hits 16-year high of 4.7 pct - LONDON, Sept 16 (Reuters) - Britain's inflation rate rose to its highest level in 16 years in August and more than double the central bank's target, requiring the Bank of England to explain publicly why prices are rising so fast.

 

Fed mulling loan package for AIG--Bloomberg report - WASHINGTON, Sept 16 (Reuters) - The U.S. Federal Reserve is considering extending a "loan package" to insurer American International Group, Bloomberg news reported on Tuesday, citing a person familiar with the negotiations.

 

Cash crisis mounts for AIG, shares plummet - NEW YORK, Sept 16 (Reuters) - American International Group Inc shares plummeted early Tuesday after the insurer's credit ratings were cut, jeopardizing its efforts to raise cash to survive.

 

AIG speculation grips market; Goldman disappoints - LONDON/NEW YORK, Sept 16 (Reuters) - Speculation about a possible rescue of American International Group Inc held Wall Street in its grip on Tuesday as disappointing quarterly results from Goldman Sachs Group Inc added to the gloom.

 

AIG in focus as financial meltdown spreads - HONG KONG, Sept 16 (Reuters) - American International Group Inc, thrown a $20 billion lifeline by New York state, came under renewed pressure on Tuesday as ratings agencies downgraded the insurer's debt and the financial sector meltdown spread.

 

Global equity selloff wreaks havoc on markets - LONDON, Sept 16 (Reuters) - Investors dumped equities and oil as the financial meltdown spread on Tuesday, a day after Lehman Brothers collapsed, driving the yen and government bonds higher and unleashing a panic rush to secure short-term cash.

 

Euro spurs struggling German investor sentiment-ZEW - MANNHEIM, Germany Sept 16 (Reuters) - Investor sentiment on the outlook for the German economy rose from low levels for a second straight month, fuelled by a drop in oil prices and the euro's retreat against the dollar, a survey showed on Tuesday.

 

Barclays nears deal for Lehman U.S. unit -source - LONDON, Sept 16 (Reuters) - British bank Barclays is near to a deal to buy Lehman Brothers' core U.S. broker-dealer business, including equity, fixed income, M&A advisory and other parts, a person familiar with the matter said.

 

Central banks strain to contain market crisis - BERLIN/TOKYO, Sept 16 (Reuters) - Central banks pumped vast amounts of extra funds into world financial markets for a second day on Tuesday in an increasingly fraught effort to contain the fallout from the crisis sweeping Wall Street's biggest firms.

 

Goldman profit plunges 70 percent amid market slump - NEW YORK, Sept 16 (Reuters) - Goldman Sachs Group Inc said quarterly profit plunged 70 percent as the worst market slump in decades led to weaker-than-expected revenues, knocking the stock to its lowest level in nearly three years.

 

Washington Mutual stock rises; merger talk disputed - WASHINGTON, Sept 16 (Reuters) - Shares of Washington Mutual Inc were 14 percent higher on Tuesday after a report that JPMorgan Chase & Co was in talks to acquire the troubled Seattle-based thrift.

 

Friday - 09/12/08

MARKETS CRASH AGAIN

 

Wall Street down as Lehman worries drag on financials - NEW YORK, Sept 12 (Reuters) - U.S. stocks were lower on Friday as uncertainty about a deal to rescue struggling investment bank Lehman Brothers hurt the financial sector, offsetting gains in energy shares due to rising oil prices.

 

AIG shares fall almost 30 pct on mortgage worries - NEW YORK, Sept 12 (Reuters) - Shares of American International Group Inc fell almost 30 percent on Friday as investors grew increasingly concerned that its large exposure to mortgages is backing it into a corner.

 

AIG's chief under pressure as shares tumble - NEW YORK, Sept 12 (Reuters) - A steep drop in American International Group Inc's shares on Friday was ratcheting up pressure on CEO Robert Willumstad to publicly come out and reassure investors he has a foolproof plan in hand to turn the insurer around.

 

Lehman shares slide on Paulson bailout reluctance - NEW YORK/WASHINGTON, Sept 12 (Reuters) - Concern that Lehman Brothers Holdings Inc may fail to find a buyer because the U.S. government is reluctant to provide financial backing sent the investment bank's shares tumbling to a nearly 14-year low on Friday. \

Pimco: U.S. bank system capital insufficient - NEW YORK, Sept 12 (Reuters) - Mohamed El-Erian, a co-chief executive of top bond fund Pimco, said on Friday that the U.S. banking system lacks sufficient capital to weather the current credit crunch related to massive mortgage-related losses. (Adds details on likely buyers of Lehman)

 

Deutsche Bank swoops on $13 billion Postbank - FRANKFURT/BONN, Sept 12 (Reuters) - Deutsche Bank has swooped on Deutsche Postbank in a deal worth up to $13 billion that could cement its dominance in Germany by handing it control of the country's biggest retail lender.

 

U.S. retail sales off but optimism rises - WASHINGTON, Sept 12 (Reuters) - Sales at U.S. retail stores fell for a second straight month in August as consumers facing a tough job market cut spending, but declining gasoline prices seemed to lift their spirits in September.

 

U.S., Venezuela escalate crisis, expelling envoys - CARACAS/WASHINGTON, Sept 12 (Reuters) - The United States imposed sanctions on aides to Venezuelan President Hugo Chavez on Friday in retaliation for his expulsion of the U.S. ambassador, escalating a crisis that raised the specter of an oil supply cutoff.

 

Thursday – 9/11/08

MARKETS CRASHING

 

Lehman survival questioned on scramble to sell assets - NEW YORK, Sept 11 (Reuters) - Lehman Brothers Holdings Inc's survival was called into question as its chief executive scrambled to sell assets to cover losses from toxic real estate investments, sending shares down as much as 46 percent. 

 

Goldman Sachs is not buying Lehman - sources

NEW YORK, Sept 11 (Reuters) - Goldman Sachs Group Inc is not pursuing an acquisition of Lehman Brothers Holdings Inc, reflecting concerns that integrating two large investment banks would be too disruptive, sources familiar with the situation said on Thursday.

 

U.S. trade gap widens to $62.2 billion in July on oil - WASHINGTON, Sept 11 (Reuters) - Record oil import prices propelled the U.S. trade deficit to a 16-month high in July, but a sharp price drop in August promised narrower deficits in future months, government reports showed on Thursday.

 

Major world economies still at risk of recession - LONDON, Sept 11 (Reuters) - The world's major industrialised economies are still at risk of falling into recession this year, and more so than just a month ago, even as elevated inflation leaves policymakers unable to slash interest rates.

 

ECB's Papademos - Global action needed on inflation - HAMBURG, Germany, Sept 11 (Reuters) - The world's central banks need to make concerted efforts to tackle global inflation and apply monetary policy effectively, European Central Bank Vice-President Lucas Papademos said on Thursday.

 

Monday - 09/08/08

MARKETS CRASHING

 

Fannie, Freddie Shares Plunge - Government's plan to take over Fannie Mae and Freddie Mac may help the housing market and boost the value of the firms' bonds, but it is a body blow to stockholders that include some of the country's best-known mutual funds and biggest banks. Freddie drops 59%, Fannie falls 73%.

 

Paulson Says Freddie, Fannie Had To Be Seized - Treasury Secretary Henry Paulson defends the government's decision to take over and possibly recapitalize Fannie Mae and Freddie Mac, but adds that the bailout's ultimate cost to taxpayers can't be immediately determined.

 

Fannie/Freddie CDS In Technical Default - Government takeover of mortgage giants triggers a technical default on insurance-like contracts investors used to hedge risk on the mortgage finance giants' $1.6 trillion of outstanding debt.

 

Insurers Seen Holding $4.1B Fannie, Freddie Preferred - S&P says insurer investment portfolios of Allstate, Hartford and others hold a total of around $4.1 billion of preferred shares of mortgage buyers Fannie Mae and Freddie Mac, but none hold more than $1 billion.

 

Credit Markets Strengthen On GSE Rescue - Corporate bond markets surge as the government's seizure of mortgage giants Fannie Mae and Freddie Mac adds some much-needed clarity to credit markets and removes a major source of potential peril for the continued health of credit markets.

 

Lehman Stock Takes Volatile Turn - Shares decline nearly 13% after rising 9.3% in pre-market activity. Investors appear disheartened by the prospect that Lehman is edging closer to selling its valuable asset-management business, Neuberger Berman.

 

WaMu CEO Confronts Piles Of Delinquent Loans - Seattle thrift CEO Alan Fishman, named Sunday to succeed Kerry Killinger, is left to clean up the bank's loss-heavy home loan portfolio, and aims to restore profitability by returning the bank to its savings-and-loan roots.

 

Wells Fargo To Take 3Q Write-Down - Bank says it will take write-down on its preferred investments in Fannie and Freddie included in securities available for sale at a cost of $336 million and $144 million, respectively, now trading at 5% to 10% of their original value.

 

United Airlines Denies Bankruptcy - UAL Corp. denies the company has filed for bankruptcy protection, after six-year-old information reporting on the carrier's previous Chapter 11 filing appears on some Web sites. UAL shares are down 7%.

 

US Consumer Credit Climbs Less Than Expected - Consumer credit outstanding increases $4.6 billion to $2.59 trillion, the Federal Reserve reports, but growth falls short of Wall Street predictions of a $6.2 billion increase.

 

Oil Reverses Course, Falls On Dollar - Crude oil futures fall, reversing earlier gains as the dollar strengthened. The dollar rose to an 11-month high against the euro, undercutting dollar-denominated commodities' attraction. October delivery trades down 93 cents to $105.30 a barrel.

 

Iran Nuclear Reactor Launch Irreversible By February - The start-up of the first reactor at Iran's Bushehr nuclear plant will be "irreversible" by February next year, a senior Russian nuclear official is quoted by ITAR-TASS news agency as saying.

 

Friday - 09/05/08

MARKETS CRASHING

 

Treasury Nears Plan To Backstop Fannie Mae, Freddie Mac - Treasury Department is close to finalizing a plan to help shore up mortgage giants Fannie Mae and Freddie Mac, according to people familiar with the matter. Plan is expected to involve a creative use of Treasury's new authority to make a capital injection into the beleaguered giants and includes changes to senior management at both companies.

 

US Jobless Rate Hits 5-Year High, Recession Odds Rise - Nonfarm payrolls fall by 84,000 in August, with declines in manufacturing, construction and service industries. June and July are revised to show bigger declines. The unemployment rate soars 0.4 percentage point to 6.1%, highest since September 2003.

 

Dealers See Fed Sticking To 2% This Year - Wall Street's big banks continue to expect the Fed to stick with current stance of monetary policy into next year. Strong majority of primary dealers surveyed believes 2% overnight target rate will still be in place after final 2008 policy meeting.

 

Oil Prices Fall To 5-Month Low - Crude oil futures fall for the sixth straight session as production ramps up in the Gulf of Mexico in the wake of Hurricane Gustav, and U.S. unemployment hit a multi-year high. Nymex October crude falls $1.66, or 1.5%, to $106.23 a barrel.

 

Yellen Sees 'Sluggish' Economy In 2H - San Francisco Fed President Janet Yellen repeats her expectation that inflation will likely cool, as the U.S. economy faces a difficult second half of the year.

 

Foreclosures Have Small Impact On Home Prices - A wave of foreclosure shocks such as the one experienced in 2007 has relatively small effects on U.S. house prices, according to a National Bureau of Economic Research paper by three economists.

 

Fed-Funds Futures Eliminate Odds Of Rate Hike - At the day's high, January contract priced in as much as a 14% chance for FOMC to reduce funds rate by a quarter percentage point to 1.75% by year's end. Late in the day, the January contract priced in only about a 2% chance for a rate cut.

 

More Lehman Layoffs To Come - Lehman Brothers employees may spend the weekend nervous in anticipation of the layoffs that are set to begin Monday. The investment bank plans to let go of roughly 1,200 positions across the board in the fourth round of cuts this year.

 

Merrill Shares Down On Goldman Cut To Sell - Merrill Lynch shares fall 3% after Goldman Sachs puts the stock on its conviction sell list and cuts the price target to $22 a share, advising investors to sell due to Merrill's heavy exposure to risky assets.

 

Nokia Slides After Market Share Warning - Nokia shares tumble 10% after the world's biggest handset maker downgrades its 3Q market-share outlook, attributing the revision to the weaker global economy and its tactical decision to stay out of a handset price war.

 

National Semi Net, Sales Down - National Semiconductor posts a 7% drop in fiscal first-quarter net income as sales fell. Earnings came in at $80 million. The company also gives a fiscal second-quarter revenue outlook below Wall Street's estimates.

 

Greenberg Could Be Fined $100M By NY - Maurice R. "Hank" Greenberg could be fined at least $100 million as part of settlement under negotiation with N.Y. Attorney General's office over long-running civil-fraud case, a person familiar with the matter tells The Wall Street Journal. Case stems from accounting probe of AIG.

 

09/05/08

MARKETS CRASHING

 

US Loses 84K Jobs As Unemployment Hits 6.1% - Nonfarm payroll fall by 84,000 in August, the Labor Department says, with declines in manufacturing, construction and service industries. June and July are revised to show bigger declines. The unemployment rate soars 0.4 percentage point to 6.1%, the highest since September 2003.

 

Officials Appear To Open Door To Rate Cut - In a series of speech and interviews, a number of central bank officials have joined together to argue that after a surprisingly resilient first half, the final six months of 2008 could see much tougher conditions, writes Michael Derby.

 

It Looks Bad, But It Could Be A Lot Worse - With pre-jobs-report jitters and data reports supposedly causing a plunge in the DJIA, Jim Murphy considers the possibility that it might be hedge funds and institutions with their programmed trading directing most of the steep gains and losses.

 

US Stocks Fall After Jobless Data - A jump in the U.S. jobless rate to nearly a five-year high weighs on stocks as investors brace for an imminent test of the lows in this year's bear market. DJIA is down about 95 points.

 

Nokia Slides After Market Share Warning - Nokia shares tumble 10% after the world's biggest handset maker downgrades its 3Q market-share outlook, attributing the revision to the weaker global economy and its tactical decision to stay out of a handset price war.

 

Oil Slips As Demand Fears Weigh - Crude oil futures are trading lower on concerns about U.S. and European demand, as the market eyed the approach of another hurricane. October delivery trades down 49 cents, or 0.5% lower, at $107.40 a barrel.

 

College Loan Corp Exits Student Loan Business - One of the largest student loan companies is exiting the remaining part of its student loan business after it lost financing from a large New York bank. Earlier this year the company said it would cease disbursing federally-backed student loans.

 

Fed-Funds Futures Eliminate Odds Of Rate Hike - A bleak jobs report pushes U.S. interest rate futures prices over the edge, eliminating expectations for an increase in the key short-term federal-funds lending rate for the remainder of this year and into early 2009.

 

National Semi Net, Sales Down - National Semiconductor posts a 7% drop in fiscal first-quarter net income as sales fell. Earnings came in at $80 million. The company also gives a fiscal second-quarter revenue outlook below Wall Street's estimates.

 

Greenspan Says Treasury Must Deal With Bailouts - Former Federal Reserve chairman Alan Greenspan says Congress should pass a law empowering the Treasury Department to specify and limit bailouts - and leave the Fed out of the process, according to the Associated Press.

 

Dell Plans To Sell Factories To Cut Costs - Dell is trying to sell its computer factories around the world, a move to sharply overhaul a production model that was long a hallmark of the PC giant's strategy but is no longer competitive.

 

Sycamore Loss Widens On Falling Sales, Margins - Sycamore Networks fiscal fourth-quarter net loss widens to $14.1 million on a sharp decline in sales and slumping margins. Analysts had expected earnings to break even. CEO Daniel Smith says the company will expand its product offering.

 

S&P Cuts Ratings On $19.26B Of CDOs - Standard & Poor's Ratings Services cuts its grades on $19.26 billion of collateralized debt obligations on a number of factors, including credit deterioration and recent cuts on U.S. subprime residential mortgage-backed securities

 

US Consumer Spending Slows; Income Falls - Consumer spending increases by 0.2% in July, suggesting the economy will weaken with end of government stimulus payments, while key inflation gauge creeps up. Personal income decreases at seasonally adjusted rate of 0.7%.

 

US Stocks Down On Session, Week; Dell, Data Weigh - U.S. stocks give up their gains for the week in the last session and all 30 Dow components fall as worries about technology bellwether Dell, hurricanes and the economy snuffed out Thursday's optimism. DJIA falls more than 170 points.

 

Alitalia Board Seeks Bankruptcy Protection - Ailing Italian airline Alitalia has requested protection from bankruptcy as expected, ahead of the release of its 1H results, due later in the day. Alitalia's adviser, Intesa Sanpaolo, has called for the carrier to be split in two.

 

09/03/08 – MARKET CRASH – another leg begins

 

08/13/08

US Stocks Fall As Financial Shares Continue To Languish - A serious case of summer doldrums takes hold in the stock market, fueled by a flaring of the ills that seemed to be waning just a short time ago. The financial sector continues to languish due to renewed fears of bad credit bets, crude oil prices rebound as inventories dwindled, and new economic data are lukewarm. DJIA is down more than 130 points.

 

Stern Sees Subdued Economic Activity Into 2009 - Federal Reserve Bank of Minneapolis President Gary Stern says the U.S. is likely to face weak economic activity into next year, although a sustained drop in energy prices may help engineer a more favorable inflation environment over time, writes Michael S. Derby.

S&P 500 and Nasdaq also down.

 

Barrel May Be Half-Empty For Latest Stock Rally - Stocks have often rallied amid signs of crumbling commodity prices or signs of easier monetary policy because both are unequivocally good for most companies. But if fears about global growth are the culprit, then that may soon trump the optimism, writes Spencer Jakab.

 

Moody's Cuts GM Credit Ratings - Moody's cuts its credit ratings on $29 billion in GM debt by one-notch to Caa1, citing the challenges the auto maker faces in generating positive operating cash flow as US auto industry sales hit a 15-year low. Shares fall more than 6%.

 

Oil Rises To $116 On Inventory Data - Crude futures rise $2.99 a barrel as a surprise dive in gasoline inventories sparks what many in the market believe will be a short-lived rally. Gasoline stocks plunge by 6.4 million barrels in the week ending Aug. 8.

 

Lehman, Goldman Slip On Analyst Cuts - Lehman Brothers falls 4% and Goldman Sachs is down 1% as analysts sharply lower their 3Q estimates due to weakening business trends and remaining write-downs of troubled assets.  Lehman In Talks To Sell Mortgage Assets -Lehman Brothers is in talks to sell $14 billion of its $40 billion in commercial real estate securities to a group including BlackRock, Bloomberg reports. Lehman is seeking to sell the assets by the end of the year, report says.

 

Auction-Rate Securities Settlement 'Imminent' - A "global" settlement with Wall Street investment banks that sold auction-rate securities to customers who may have been misled about the bonds is "imminent" and could be announced today, CNBC's Charlie Gasparino reports. He says regulator talks with Merrill "turn contentious."

 

Bank Of America Falls On Mortgage, Legal Woes - Investors have headed for Bank of America's exits over last few days, pushing shares down 14% -- 7% today -- after JPMorgan said mortgage-related costs are rising, and Countrywide's final quarterly filing detailed legal regulatory proceedings.

 

Few CEOs Upbeat on US Economy - A survey of CEOs finds they're increasingly downbeat on the U.S. economy, with just 10% of chief executives at U.S.-based NYSE-listed companies calling the economy good or excellent. The year-earlier rate was 84%.

 

Survey Shows Global Recession Fears Rise - Merrill Lynch's fund manager survey for August finds that a net 3% believe that a global recession is unlikely over the next twelve months, down from 15% taking that stance a month ago.

 

AIG Offers High-Risk Premiums For $3.25B Bonds - American International Group is attempting to raise $3.25 billion in the investment-grade corporate bond market by offering investors risk premiums that are nearly one-percentage point higher than similar debt from the company.

 

08/07/08

 

US Stocks Fall; Financials Plunge With AIG - U.S. stocks fall and the Dow Jones Industrial Average, dropping 225 points, nearly wipes out its gains for the week as unemployment data and staggering credit losses at AIG put an abrupt end to the recovery for banks and lenders and the broad stock market. AIG slides 18%, its biggest one-session percentage loss since May 1981.

 

US Jobless Claims, Used Home Sales Jump - The number of U.S. workers filing new claims for unemployment benefits unexpectedly rises by 7,000 to 455,000, the highest level since March 2002 and breaching a psychologically important level. Index for pending sales of used homes rises 5.3% to 89.0 in June but falls 12.3% on the year.

 

Oil Prices End Above $120 A Barrel - Crude oil futures eke out a close above $120, snapping a three-day losing streak, as fears of supply disruptions momentarily overtake demand concerns. Nymex September crude settles up $1.44, or 1.1%, at $120.02 a barrel.

 

Discount Window Borrowings Total $17.50B - Commercial banks continue to tap the Fed's discount lending window at a near-record pace in the week ending Aug. 6, while investment banks avoid borrowing from a discount window created especially for them in March.

 

S&P Cuts Ratings On $23.96B In CDOs - S&P lowers ratings on $23.96 billion of U.S. collateralized debt obligations because of credit deterioration and recent ratings cuts on subprime residential mortgage-backed securities amid continuing housing weakness.

 

Citi To Buy Back $7.3B In Auction-Rate Securities - Banking giant will buy back illiquid auction-rate securities from its retail clients, charities and small to mid-sized businesses by Nov. 5, accounting for $7.3 billion in securities. Shares fall 6%.

 

US Consumer Credit Rises $14.3B In June - Consumer credit outstanding rises $14.3 billion in June to $2.586 trillion, more than twice as much as expected and its highest level since June 2001, the earliest time period for which data are available, according to latest report from the Fed.

 

Wal-Mart, Target Lead Disappointing Retail Sales - July same-store sales generally fall short of expectations after two straight months of topping dour estimates as discounters continue to report the strongest results amid slack consumer confidence. Wal-Mart also offers cautious August outlook and says stimulus effect is fading. Wal-Mart and Target both fall 4%.

 

AIG Tumbles On Write-Down, Faces Ratings Cut - Shares fall 18% after AIG writes down the value of its CDOs backed by subprime and Alt-A mortgages by $24.8 billion, or to about 69¢ on the dollar. Moody's also warns that AIG must deal with liquidity needs at its units or it faces ratings cuts.

 

Bank Of America Discloses Subpoenas Over ARS - Bank of America says it has received subpoenas from different state and federal agencies seeking information about auction-rate securities.

 

Morgan Stanley To Repay ARS To Massachusetts Cities - Financial-services firm will pay $1.5 million to resolve allegations by Massachusetts that it misled municipalities in investing in auction-rate securities.

 

Crocs Net Drops 96% On Lower Margins - Maker of colorful plastic footwear reports 2Q net of $2.13 million, or 3¢ a share, a decline of 96% as gross margins narrow to 41% from 59% and U.S. sales fall 20%. The company affirms its 3Q and full-year outlook.

 

07/15/08

 

Bernanke Says Economy Faces 'Numerous Difficulties' - Fed chairman suggests risks to U.S. economy remain his top priority, while dwelling on "unusually uncertain" inflation outlook, and cautions Fed is watching for any sign that higher energy commodity prices are becoming embedded in wages and expectations.

Oil Prices Slide On Bleak Fed Outlook, Supplies - Oil futures sink more than $6 a barrel, settling at $138.74 a barrel after the Federal Reserve chairman sounds bleak notes on the U.S. economy and world supplies loosen up a little.

 

Oil prices plunge at fastest rate in 17 years over economic fears - Oil prices fell harder than they have in 17 years Tuesday, as fears that record fuel prices are spreading broad economic pain exacerbated the third big sell-off in just over a week.  

 

Stocks Close Down; Worries Over Freddie, Fannie Persist - U.S. stocks fall as a plunge in the price of oil and government intervention fails to quell market worries about mortgage-finance giants Freddie Mac and Fannie Mae.

 

SEC Puts New Limits On Shorting Fannie, Freddie - U.S. securities regulators are putting new restrictions in place to prevent short-selling abuses involving shares of Wall Street's primary dealers and Fannie Mae and Freddie Mac, the federally backed housing-finance giants.

 

Paulson Says Fannie, Freddie Plans Needed - Paulson says extraordinary Treasury Department proposal allowing it to buy an equity stake in Fannie Mae and Freddie Mac is aimed at restoring financial market stability, but cautions there are no immediate plans to use the new authority.

 

GM Aims To Add $15B In Liquidity; Cuts Dividend - GM says it will raise $15 billion through potential asset sales, cost cutting and other financing measures. GM will also suspend the dividend, cut certain compensation to salaried workers and executives and lower capital spending. Shares down 4%.

 

AMR To Cut 200 Pilot Jobs In Downsizing - The parent of American Airlines says it will cut 200 pilot jobs as part of a previously-announced plan to reduce its workforce by 6,800. The airline plans to cut flights and retire gas-guzzling aircraft to cope with rising fuel bills.

 

US Stocks Fall; S&P 500 On Cusp Of Bear Market - Shares sell off late in a volatile session and the Standard & Poor's 500 closes within a hair's breadth of a bear market as traders tried to balance a drop in oil and renewed hopes for a Yahoo deal against fears over Fannie Mae and Freddie Mac.

 

Indymac To Slash Jobs, Curtail Operations - Indymac Bancorp has stopped taking loan applications and will cut more than half of its work force amid liquidity and capital worries -- and larger projected 2Q losses. California bank is one of the largest originators of Alt-A loans that rate between prime and subprime.

 

Freddie Mac, Fannie Mae shares plunge on capital concerns - Fannie Mae (FNM.N) and Freddie Mac (FRE.N) shares plunged to their lowest in nearly 16 years on Monday while costs to insure their debt against default rose on concern the two largest U.S. mortgage funders may need to raise vastly more capital amid larger-than-expected losses

 

Financial Stocks Fall On Fannie, Freddie Worries - Stocks of securities firms, real estate investment trusts, some banks and other financial services companies fall, infected by concerns about financial health of government-sponsored mortgage agencies Freddie Mac and Fannie Mae.

 

Microsoft Interested If Yahoo Replaces Board - Microsoft says it's interested in restarting talks to acquire some or all of Yahoo if the Internet company's board is replaced, as Carl Icahn continues his fight to convince Yahoo shareholders that he can mediate a deal with Microsoft. Yahoo shares up 12% and Microsoft is little changed.

Another 10% Home-Price Drop May Not Hurt RMBS - Standard & Poor's says an additional 10% decline in home prices likely wouldn't affect its ratings on U.S. residential mortgage-backed securities. S&P/Case-Shiller Home Price Indices prices off more than 16% nationally since 2006.

 

Ambac Hurt By Downgrades, But Says Liquidity Is 'Ample' - Ambac says ratings-agency downgrades forced it to terminate $270 million in business and increase collateral requirements by just over half a billion dollars. Bond insurer reiterates that speculation about its ability to cover financial instruments it insures is unfounded.

 

GM Mulls Thousands Of New Job Cuts - Bruised by a deep sales slump and a half-century-low in its stock price, General Motors is preparing to cut thousands more white-collar jobs and is considering whether it should sell or shutter more of its brands, sources say. Shares rise 1%.

 

Marshall & Ilsley Warning A Drag On Bank Sector - Banks shares are lower after the Milwaukee bank warns of a second-quarter loss and analysts raise questions about its growth potential and the sustainability of its dividend. Marshall & Ilsley shares down 7%.

 

AirTran To Cut 5% Of Work Force In September - AirTran Holdings, following across-the-board pay cuts introduced at its namesake airline last week, says it plans to eliminate 480 pilot and flight attendant jobs in September.

 

Fed, SEC Sign Information-Sharing Deal - The Fed and SEC sign formal agreement aimed at boosting information sharing and cooperation. Under the deal, Fed would be able to see an investment bank's trading positions, its leverage and capital requirements, among other things.

 

Yellen Hints Inflation A Rising Concern For Fed - San Francisco Fed President Janet Yellen signals the Fed may be more hawkish in fighting inflation in the future, signaling the central bank may see battling inflation as possibly more important than stimulating economic growth.

 

Biofuels behind food price hikes, leaked World Bank report finds - Biofuels have caused world food prices to increase by 75 percent, according to the findings of an unpublished World Bank report published in The Guardian newspaper on Friday.

 

US Payrolls Fall Again In June; Unemployment Steady - U.S. payrolls shrink a sixth time in a row during June, as businesses faced with rising costs and a weak economy shed more jobs. Non-farm payrolls shrink by 62,000 jobs, while the unemployment rate holds at 5.5% in June. Separately, weekly jobless claims increase by 16,000 to 404,000. The ISM's service sector index falls to 48.2 amid record high price gains in June.

 

Oil Ends At Record Above $145 A Barrel - Crude oil futures close above $145 a barrel for first time as market participants shrug off a stronger dollar to test new highs ahead of Independence Day weekend. Light, sweet crude for August delivery settles up $1.72 at $145.29 a barrel on Nymex.

 

Ex-Refco CEO Gets 16 Years In Prison - Phillip R. Bennett, Refco's former chief executive, is sentenced to 16 years in prison after he pleading guilty to criminal charges in a scheme to hide the commodities broker's financial troubles.

 

US Stocks Mixed After Economic Data - The Dow Jones Industrial Average moved into a bear market this week, though it finishes with a bounce, as General Motors' stock tries to fight back from its lowest levels since the 1950s. DJIA ends up about 73 points; Nasdaq drops 6.

Health Net, Aetna Shares Drop On Downgrade - Health Net shares fall 13% and Aetna drops 7% after Goldman Sachs cuts its investment ratings on the companies' stocks due to margin pressure. Move comes a day after UnitedHealth further lowered its 2008 profit target.

 

Moody's Cuts Toll Brothers' Credit Rating - Moody's Investors Service cuts Toll Brothers' senior unsecured rating to junk status, saying falling home prices and lower absorption rates continue to have an impact on margins.

 

Penn National Buyout Terminated - Penn National Gaming and funds managed by Fortress Investment Group and Centerbridge Partners agree to terminate the proposed $6.1 billion acquisition of the casino company, becoming the latest buyout to fall victim to the credit crunch.

 

Morgan Stanley's Commodities Chief Shapiro Resigns - Morgan Stanley commodities chief John Shapiro, head of one of Wall Street's largest commodities franchises, is stepping down in a surprise move. The securities firm says that Simon Greenshields and Colin Bryce will succeed him.

 

S&P Warns XL Capital Of Downgrade - Mirroring a move by Fitch earlier in the week, Standard & Poor's puts the credit ratings of XL Capital and its property/casualty reinsurance unit on watch for downgrade based on exposure to ailing insurer Security Capital Assurance.

 

Nvidia Plunges, Warns On Chip Problems - Shares fall 30% a day after Nvidia discloses an overheating problem with some of its chips for notebook computers, triggering a big charge, and says other problems also will hurt financial results for the 2Q.

 

Marshall & Ilsley Sees 2Q Net Loss - Bank predicts a big 2Q net loss on increased loan-loss provisions as housing market continues to deteriorate. It sees a net loss of $1.50 to $1.60 a share, and expects to take loan- and lease-loss provision of up to $575 million and charge-offs of up to $415 million.

 

Paulson Warns On Economy, Inflation - Treasury Secretary Henry Paulson ends a four-day European trip, warning that the near-term economic outlook remains difficult and the global inflation threat is serious. He also says high oil prices will likely prolong the U.S. economic slowdown.

 

07/02/08

 

Beware, Bottom Fishers – Heard on the Street - Many stocks are looking bombed out, but that doesn't mean they are cheap as earnings estimates often haven't fallen quickly enough to reflect dim economic prospects. Investors thirsting for growth also may pay through the nose for a mere hint of it.

 

Energy experts puzzled over oil prices - As crude soared to a new record, the head of the International Energy Agency declared that the world was in the grip of an "oil shock," and the president of OPEC acknowledged he could not say whether prices would flatten out or continue to soar.

 

Paulson Seeks More Powers Over Non-Bank Failures - U.S. Treasury Secretary Henry Paulson in a speech in London will call for expanded regulatory powers to ensure that the failure of a non-bank financial institution doesn't threaten the whole financial system.

 

Moody's Loses A Key Player Amid Probe - Bond-rating firm Moody's Investors Service says Noel Kirnon, a key figure in what had been its fast-growing "structured finance" business, was leaving amid an internal investigation.

Tokyo Shares End Down For 10th Straight Day - Tokyo stocks fall for a 10th consecutive day, the longest decline in 43 years, as futures selling weighs on cash trading amid ongoing global inflationary concerns.

 

REITs Bruised By Credit Crisis - Real-estate shares registered bigger declines than the broader stock market in the second quarter, as analysts say they fell victim to broader market concerns, including growing trouble in the financial sector.

 

Fed's Lockhart Says Inflation Not Constant - Atlanta Fed President Dennis Lockhart says inflation shouldn't be treated as a persistent reality, adding that economic recovery accompanied by higher and persistent inflation may win a battle but would lose a war.

 

Starbucks To Shut 500 More Stores, Cut Jobs - Starbucks effectively ends its era of blanket expansion by saying it will close 500 more locations in the U.S. and cut 7% of its work force. The pullback is a sign that the coffee giant is continuing to see weak sales. To cut as many as 12,000 positions.

 

06/27/08

 

MBIA Sees Charges On $4B Asset Sale To Boost Collateral - Embattled bond insurer says it will record a $300 million 2Q charge after it sold $4 billion in investments to post additional collateral and fund potential termination payments after a unit lost its triple-A credit rating. Shares fall 5%.

 

Oil Closes Near $140 After Setting New Record - Crude futures close at $140 a barrel on new indications of sinking U.S. demand and a rebound by the dollar after earlier surging to fresh record highs above $143 a barrel. The market could hit $150 a barrel by the end of the week, a milestone forecast by Morgan Stanley. See industry events.

 

Wachovia Waives Some Prepayment Fees - Wachovia is waiving all prepayment fees associated with its "Pick-A-Pay" mortgage program to help customers cope with declining home values and the credit crunch. Shares drop 5%.

 

Autos Push New Lows Ahead Of June Sales - Wall Street, anticipating unhappy news when June U.S. auto sales reports show up tomorrow, knocks shares of the two top U.S. automakers, with Ford down 10% and General Motors near 50-year low before staging mild rebounds.

 

Bank Of NY Mellon CEO Sees More Bank Losses - Bank of New York Mellon CEO Robert P. Kelly is predicting more losses for the banking sector and a continuation of the U.S. housing market crisis, assign that the industry fallout could give his firm a chance at an acquisition.

 

Dallas Fed Manufacturing Index Falls  - Texas area manufacturing slumps in June, reports the Federal Reserve Bank of Dallas. The bank says current production index moves to 0.0 from 5.5 in May, while general activity index stands at -24.1 in June.

 

Chicago PMI Again Shows Slight Contraction - Chicago PMI improves slightly to 49.6 in June, from 49.1 in May, but still shows contraction. Economists expected a reading of 48.0. The prices paid index, a measure of inflation, is at 85.5 in June, from 87.5 in May.

 

BIS Sees World Economy Near Tipping Point - Bank for International Settlements says the global economy may be near a "tipping point" that could see it enter a slowdown so severe that it transforms the current period of rising inflation into a period of falling prices.

Fed Releases Bear Stearns Meeting Minutes – The Central bank in March believed it had no choice but to help facilitate the rescue of Bear Stearns, the Wall Street investment firm.  They saw JPMorgan as the most suitable buyer.  Bear Stearns was have trouble meeting the next business day's repayment obligations.

Gold Rising In All Currencies Amid Inflation Concerns - Gold is rising in currencies other than the U.S. dollar.  This suggests that it is being bought for reasons other than just the weakness in the greenback, writes Allen Sykora.  Several precious metals and commodities analysts said the inflation concerns are bringing the intrinsic sparkle back to gold, which until Thursday had held under the $900 an ounce level.  "The gold move is taking place across a range of currencies. It is indicative of a commodity that is reflecting a broader picture than just the dollar," said Michael Jansen, strategist with J.P. Morgan.  Gold's strength even when denominated in other currencies was also cited in the Gartman Letter, a financial newsletter, Friday.

US Stocks Drop; Dow Dips Into Bear Territory - The Dow Jones Industrial Average falls into bear-market territory, 20% from its October closing peak, as stocks are unable to cast off the millstones of high oil prices and economic worries. The S&P 500 is trading at its lowest mark in more than a year, and many observers say there is worse yet to come.

Oil Hits New Record Above $142 - Oil rises to a new record $142.30 a barrel on weaker dollar and slumping U.S. equities as investors turn to commodities in search of better returns. Broker sees tools in place next week to push oil to $150 a barrel.

 

Oil Surges To All-Time High, Further Spikes Seen - Crude oil surges to an all-time high as fresh buyers jump in to the market, with ambivalence over Federal Reserve's future actions on inflation and a weakening dollar acting as a launching pad for rising prices. One oil broker says market now eyeing $150 a barrel.

 

Commodities Rally Despite Oil-Led Growth Concerns - Gold has been the biggest gainer from the slump in U.S stocks, widening credit spreads and a surge in oil prices, but base metals and grains could continue to gain despite worries about slowing global economic growth, analysts say.

 

AIG To Absorb Up To $5B In Losses - American International Group is set to absorb up to $5 billion in losses for a dozen insurance units after their securities-lending accounts suffered $13 billion of write-downs tied to the subprime-mortgage collapse during the past year, Bloomberg reports.

 

Lehman Sees Merrill Posting $5.4B 2Q Write-Down - Lehman Brothers estimates Merrill Lynch will post a $5.4 billion write-down and a loss of $2.78 a share for the quarter, due mainly to recent credit downgrades of Ambac and MBIA. Merrill falls 1%.

 

Citigroup Closing Trading Desk For Distressed Debt - Bank is closing a trading desk that specializes in distressed debt and plans to essentially outsource the business to a new hedge fund, as it streamlines its businesses and avoids unnecessary risk-taking in its investment bank. Shares fall 4%.

 

Moody's May Cut Morgan Stanley Ratings - Moody's is mulling cutting the long-term credit ratings for Morgan Stanley, calling the investment bank's financial performance and risk management since the onset of the mortgage crisis "inconsistent." Morgan Stanley shares fall 1%.

 

Fitch Considering Wachovia Credit Downgrade - Fitch Ratings put Wachovia's credit ratings on review for a downgrade amid worries about the bank's massive residential mortgage portfolio. Wachovia shares trade down 2%.

 

UBS Denies Mulling Sale Of Paine Webber - UBS denies a Reuters report that the Swiss bank is considering selling its U.S. brokerage Paine Webber, which it bought for close to $12 billion in 2000. Shares are down 4% in U.S. trading.

IAC Takes $300M Hit On Catalog Write-Down - Barry Diller's IAC/InterActiveCorp will take an estimated $300 million charge to write down the goodwill value of its Cornerstone Brands catalog business, reflecting in part "significant deterioration in the macro economic environment for retailers."

 

Palm Swings To 4Q Loss, Misses View - Palm loses $41.1 million, or 40¢ a share, compared with year-ago net income of $15.4 million. Excluding items, loss is 22¢. Revenue drops 26% to $296.2 million, but smartphone sales rise 29%. Analysts expected a loss of 18¢ a share. Shares down 3% late.

 

GM Shares Plunge To 53-Year Low - General Motors' shares sink to a 53-year low amid concerns about liquidity, equity dilution and a potential dividend cut, heightening speculation that the auto maker doesn't have enough cash to finance its turnaround.

 

Anheuser To Cut Costs, Challenge InBev - St. Louis brewer intends to cut $1 billion in costs by 2010, the bulk of which would come in the next two years, in part by slashing 10% to 15% of its full-time work force. It also leaves door open for a higher bid. Shares rise 2%.

 

KB Home 2Q Loss Widens As Prices Drop - Home builder's loss widens to $255.9 million after write-downs, amid a continuing housing downturn and credit crunch. Revenue drops 55% to $639.1 million as new home deliveries fall 41% and average selling price drops 17%. Shares fall 6%.

 

Fed Looks To Developing Nations For Inflation Help - Federal Reserve Vice Chairman Donald Kohn suggests that it may be up to central banks in developing countries, and not necessarily those in industrialized economies like the U.S., to take action to reduce global inflation.

 

Trichet Says Banks Can't Control Price Shifts - ECB President Trichet says that monetary policymakers have to ensure price stability, even if they can't control relative price shifts within the economy. Also calls for responsibility from oil producers and consumers.

 

2Q Catastrophes Threaten Insurer Profits - Bad weather has cost U.S. property insurers more than $5 billion so far in 2Q catastrophe-related claims -- equal to about three-quarters of all catastrophe claims during 2007 -- and could push the industry to an underwriting loss.

 

Sony Ericsson Issues 2Q Profit Warning - Mobile phone maker says its 2Q sales and net income would be hit by slowing demand for mid-to-high end mobile phones and a delay of new products shipped during the quarter. See events at a glance here.

 

Countrywide CEO Helped Many Get Loans - Angelo Mozilo, chief executive of Countrywide Financial, paved the way for a variety of people to receive loans despite problems that ordinarily would have disqualified them.

 

First Marblehead Says Goldman Cash Infusion Delayed - Student-loan packager has been hard-hit by investor wariness about complex asset-backed securities, and the bankruptcy of an entity that guaranteed student loans it packaged.

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06/25/08

Buffett sees signs that recession is getting worse; also says inflation is a worry - Billionaire Warren Buffett has already said he thinks the U.S. economy is in a recession, and now he says the economy is getting worse.  Everything connected with construction and with consumer, I see weakness, and if anything, it's accentuating a little bit." Buffett also said he thinks inflation is picking up, especially in steel and oil, so it should be a concern for the Federal Reserve.  But Buffett said he would have been surprised if the Federal Reserve were to announce a rate cut Wednesday afternoon.  Buffett also said he believes supply and demand, not market speculation, is what's driving oil prices to new heights.   "In my adult lifetime, up until the last year or two, there's been a huge amount of excess supply available," Buffett said. "We don't have excess capacity in the world anymore, and that's why you're seeing these oil prices."  Buffett said he doesn't think it makes sense to impose a windfall tax on oil companies that have benefited from the high price of oil when other commodity prices have also increased. Steel, corn and soybean prices are all up significantly.

Fed Leaves Rates Unchanged; Sees Greater Inflation Risk - Federal Reserve holds key interest rate at 2%, leaving it unchanged for the first time since last summer and expresses mounting concern about inflation and inflation expectations. Officials offer no hint of an imminent rise in rates, meaning the likeliest scenario is an uneasy status quo for many months. Read Fed's statement.

 

06/25/08

US New Home Sales Slip; Durables Flat - Sales of new homes slip 2.5% for May to an annual rate of 512,000, the fifth decline in six months. Meanwhile, orders for durable goods remain unchanged, holding at $213.64 billion; Wall Street forecast a 0.5% decline.

 

Auto Loans New Trouble Spot For GMAC - Declining values of gas-guzzling pickups and SUVs loom over GMAC, adding to its existing problems with souring mortgages in its ailing home loan unit and leaving GMAC in worse shape than rival Ford Motor Credit, writes Aparajita Saha-Bubna.

 

Barclays Plans $8.9B Share Issue - U.K. banking giant unveils a share issue to shore up its balance sheet, announcing participation by several Asian and Middle East sovereign wealth funds. CEO John Varley says capital could be used to fund acquisitions. Shares rise 6%.

 

Banks, Hedge Funds Face Losses On Rates Bet - Investment banks and hedge funds are facing billions of dollars in losses and write-downs on complex European interest rate trades, just months after problems with subprime mortgages and structured credit appeared to be easing.

 

California Sues Countrywide Over Mortgage Loans - State claims lender engaged in deceptive advertising and unfair competition by pushing borrowers into risky loans. Complaint also names Countrywide chairman Angelo Mozilo and President David Sambol.

 

06/25/08

 

JC Penney Cuts Store-Openings For 2009 - Department store chain will further cut plans to open new stores and renovate existing ones as it slashes capital spending plans for 2009 by 35% from this year's levels. Deutsche Bank upgrades stock to buy from hold. Shares gain 4%.

 

SEC To Revise Rules On Credit Ratings - Agency votes unanimously to tackle its own reliance on credit ratings, calling for the elimination of references to ratings in some cases, or allowing the use of alternatives to such ratings. It also proposes some annuity products be treated as securities, not as insurance.

 

06/23/08

 

US Stocks Mixed; Energy Offsets Financials' Weakness - Reports that Citigroup and Goldman Sachs will cut 10% of their banking jobs sink financials. Some of that negative sentiment is offset by an uptick in deal activity, and stocks end the day mixed.

06/23/08

US Consumer Confidence Seen Down To 57.0 - Consumer confidence is seen losing more ground in June with the recent jump in the unemployment rate to 5.5% likely impacting consumers' perception of a struggling job market, according to a Dow Jones Newswires survey.

 

Small Caps Fall, With Financials Lower - Another selloff among financial names meant another down day for small-capitalization stocks. Goldman Sachs analysts cut their rating on the sector to underweight from neutral, adding that an upgrade in May was "clearly wrong."

 

UPS Cuts 2Q Forecast On Weak Economy, Fuel Costs - United Parcel Service cuts its 2Q earnings guidance, blaming an "anemic" U.S. economy and "unprecedented increase" in fuel costs for lower-than-expected U.S. package volume and decreased use of its premium air products. UPS now expects 2Q earnings of 83¢ to 88¢ a share, down from 97¢ to $1.04 a share predicted in April. Shares fall 4% late.

 

GM Extends Truck Plant Shutdowns, Adds Sales Incentives - Auto maker plans to extend the summer shutdowns at six plants and to offer more sales incentives to clear its bloated inventory of large vehicles as the company addresses a steep decline in sales of pickup trucks and SUVs. GM shares slide 6%.

 

Oil Rises; Nigeria Outages Trump Saudi News - Crude oil settles higher but below the day's highs as the promise of more Saudi crude in 2009 fails to quiet worries about more immediate production problems in Nigeria. August light, sweet crude settles $1.38, or 1%, higher at $136.74 a barrel.

 

Saudi High-Wire Act Fails To Calm Oil Prices - Saudi Arabia's cautious moves aimed at bringing down oil prices failed to impress the market, writes David Bird. Still, the Jeddah meeting opens a new chapter in oil producer and consumer relations and exposes fissures within OPEC.

 

Northwest CEO Sees Jet Fuel Costs Up $2B - CEO Doug Steenland says the airline's fuel costs will be up $2 billion in 2008 from 2007. He expects the total fuel costs to be in the region of $6 billion this year. Steenland was testifying at a hearing before a House Committee.

 

Circuit City Down Amid Doubt Over Deal - Circuit City, after opening its books to Blockbuster, falls 19%, signaling investors have lost confidence in any possible combination, analysts say. Circuit City has lost 30% of its gain since Blockbuster offered in April to pay $6 a share for the retailer.

 

Motorola Stock Sinks Again On Sell Rating - Technology giant's shares fall 5% after Piper Jaffray reduces the stock to a still-rare Wall Street sell rating. News comes a week after Compal Communications slashed its estimate of 2008 handset shipments, citing reduced orders from Motorola.

 

06/22/08

 

US Stocks Plunge On Oil Rally, Credit Fears  - Another boom for crude oil prices pushes stocks further into the red, with the Dow Jones Industrial Average closing at a level not seen since March 10, a week before the collapse of Bear Stearns. Financials fall as investors strap in for a brutal earnings season. DJIA falls about 220 points.

 

Meyer Says Fed Could Raise Rates By March '09 - Economist and former Fed policy maker Laurence Meyer says the Fed will likely raise interest rates by March as it tries to contain the potential inflationary impacts of higher energy prices.

 

Merrill Drops As Options Buyers Go Negative - Options buyers are gravitating toward puts allowing them to sell the brokerage's stock for $32.50 before Oct. 17, contracts that cost $3.10 and make money only if Merrill's stock drops below $29.40. Shares fall 4%.

 

Wall Street Sees Loss For Citigroup For 2008 - Wall Street analysts now expect Citigroup to lose money this year, cutting their estimates a day after CFO Gary Crittenden said the bank may take "substantial" further write-downs due to deteriorating mortgage investments. Shares fall 4%.

 

Citi Cuts Life Insurance Coverage For High Earners - Starting in August, Citi employees who earn at least $200,000 will no longer be eligible for the basic life insurance bank provided for all employees. Instead, affected employees can enroll in a separate life insurance offered through Citi.

 

Citi's Head Of Hedge-Fund Services To Leave - Steve Bowman, the head of hedge-fund services who was responsible for coordinating and helping to consolidate Citigroup's variety of units that serve hedge funds, is leaving after 24 years at the company to "pursue new opportunities."

 

Ford To Cut Output Further, Trims Outlook  - Auto maker now plans to cut 3Q production by 25% and 4Q production by as much as 14%. The company also will delay the launch of its redesigned F-150 pickup by two months, to give dealers a chance to sell existing inventory of the vehicles. Shares drop 7%.

 

Auto Makers Warned Of Ratings Cuts - S&P warns it is likely to cut the ratings on the three U.S.-based auto makers and their credit operations, noting continued weakening of the domestic sales market. Moody's also cut its outlook on Ford and Chrysler to negative.

 

Moody's Cuts MBIA, Ambac Unit Ratings - Moody's strips units of the two largest bond insurers, MBIA and Ambac Financial, of their treasured AAA ratings, citing their limited financial flexibility and weakened businesses. MBIA off 9%, and Ambac loses 5%.

 

Moody's Cuts Ratings On SCA, FGIC Units - Moody's downgrades to junk status its ratings on the bond insurer units of Security Capital Assurance and FGIC citing severely impaired financial flexibility and "proximity to minimum regulatory capital requirements."

 

Oil Tops $134 On Mideast Tension, Nigeria - Oil futures settle up $2.69, or 2%, at $134.62 a barrel, boosted by news of supply interruptions in Nigeria and potential of rising tensions between Israel and Iran. Jump precedes meeting of government officials and oil executives in Jeddah.

 

ICE Warns Against Over-Regulating Oil Market - Chief executive of InterContinentalExchange warns that over-regulation of crude oil futures will drive business to foreign exchanges and have the unintended consequence of driving oil prices higher.

 

Top US Oil Suppliers Struggle With Output - Oil output in four of the top five suppliers to the U.S., the world's biggest oil consumer, drops by nearly 1 million barrels a day last year. Some of it's due to politics such as Nigeria's civil unrest, says David Bird.

 

Oil Ends Above $136 On Supply Concerns - Crude oil futures settle up $2.67, or 2%, at $136.68 a barrel, snapping a three-day losing streak on the risk of new short-term cutbacks in Nigerian supply if a strike threat becomes reality at a Chevron unit as well as a drawdown in U.S. oil inventories. Oil had traded lower after a report that showed U.S. gasoline demand declined in May.

US Stocks Down On Financial Fears - Stocks fall and the DJIA dips below 12000 for the first time since March 18 as financial fears rise. Oil closes above $136 a barrel, partly because of supply concerns in Nigeria and a weakening of the dollar against the euro.

 

FedEx Posts 4Q Loss, Gives Weak Outlook - Package delivery firm swings to a loss of $241 million, or 78¢ a share. FedEx sees fiscal-year earnings of $4.75-$5.25 a share and 1Q earnings of 80¢-$1 a share amid a soft U.S. economy and surging fuel costs. Shares fall 3%.

 

Huntsman Slides As Apollo, Hexion File Suit - Apollo Management and Hexion Specialty Chemicals file a lawsuit against Huntsman, threatening to scuttle one of the largest and last remaining unconsummated deals of the buyout boom. Huntsman shares slide 35% in late trading.

 

WaMu Ends 2 Types Of Complex Mortgages - Bank will discontinue two complex mortgage products as it cuts back on riskier loans amid the subprime mortgage mess and falling home prices. Washington Mutual also adds $1 billion to the assistance program announced in April 2007.

 

Morgan Stanley 2Q Net Drops 60% - Investment bank is battered by trading and investment losses in core operations, with its strongest division, institutional securities, hit by weak proprietary stock trading results and wrong bets on some commodities.

 

Indictment Of Fund Managers Could Be Unsealed - Criminal indictment of two former managers of Bear Stearns, Ralph Cioffi and Matthew Tannin, is expected to be unsealed in federal court as early as tomorrow morning.

 

Bush Calls For Major Increase In US Energy Production - President presses Congress to take quick steps to boost oil production in the U.S., sharpening the clash with Democrats over energy policy as consumers struggle with soaring gasoline prices.

 

Coventry Health Cuts Forecast; Shares Fall - Health insurer slashes its already pessimistic 2Q profit forecast, with CEO calling April's and May's results "very" disappointing. It sees 2Q EPS of 55¢-57¢ and $3.65-$3.75 for year. In April, it projected 2Q EPS of $1.03-$1.04. Shares fall 20% late.

 

Fifth Third Drops On Dividend Cut, Capital Boost - Bank plans to sell $1 billion in convertible preferred stock, sell noncore operations and slash its dividend by 66%, becoming the latest regional bank to take steps in boosting capital levels as credit losses continue to mount. Shares down 16%.

 

United Downsizes; Delta Cuts Capacity - United, Delta and Northwest are reducing their capacity, fleet and work force as they try to keep flying amid record-high fuel costs. Delta expects to reduce domestic capacity by 13% in the second half of 2008.

 

MF Global Shares Sink On 1Q Warning - Shares of MF Global plummet 36% following its weak revenue outlook of $360 million to $390 million. Firm also discloses that it will sell another $300 million in convertible stock and bonds to repay a bridge loan.

 

Big US Inflation Jump Supports Rate-Hike View - U.S. consumer prices rise 0.6% on soaring energy prices and a big jump in airline fares, suggesting the economy remains vulnerable to an unwelcome mix of rising inflation and weak economic growth. Data support Wall Street sentiment that officials may raise interest rates as early as the summer. Fed officials also get some good news from a mid-June consumer sentiment survey, which showed a small downtick in one-year inflation expectations to 5.1% from 5.2%.

 

US Consumer Prices Jump 0.6%, Supports Rate-Hike View - U.S. consumer prices rise sharply on soaring energy prices and a big jump in airline fares, suggesting the economy remains vulnerable to an unwelcome mix of rising inflation and weak economic growth. Yet prices of clothing, medical care and automobiles are well contained, suggesting that higher oil and food prices haven't yet spilled over into the broader economy.

 

US Sentiment Index Heads Lower - The preliminary Reuters/University of Michigan consumer sentiment survey for June shows the overall index moved to 56.7 in mid-June from 59.8 at the end of May. Economists had been expecting a reading of 59.8.

 

G8 To Cite Commodities As 'Challenge' To Global Economy - Costly commodities are posing a "serious challenge" to the global economy since they stir inflationary pressures and undermine growth, the Group of Eight leading nations will say following meetings today and tomorrow, a person familiar with the statement says.

 

US Probes Focusing On AIG Group Tied To Swaps - Government probes of American International Group have cast a spotlight on its entrepreneurial financial-products business, which has been the source of profits and controversy over the years.

 

KeyCorp To Sell $1.65B In Stock - Company prices 10% more in common and preferred stock than it initially planned to sell, citing "strong investor response" despite the fact shares plunged 24% after the plan was announced yesterday. Shares are down 2%.

 

MF Global Gets Wells Notice In Gas Price Probe - MF Global says it received a Wells Notice, which indicates the SEC is considering enforcement action, from the Commodity Futures Trading Commission in connection with the agency's natural gas price information probe.

 

06/12/08

 

Lehman Falls, To Replace COO Gregory, CFO Callan - Financial-services firm is replacing Chief Operating Officer Joseph Gregory and Chief Financial Officer Erin Callan as it deals with a tumbling stock price and questions about the firm's future. Gregory will be replaced by Herbert H. "Bart" McDade III, head of Lehman's equities business, while co-chief administrative officer Ian Lowitt will succeed Callan.

 

Citi Shuts Old Lane, To Take On $9B In Assets - Bank will take $9 billion onto its already-bulging balance sheet as it will close a hedge fund co-founded by CEO Vikram Pandit, 11 months after Citi bought the fund's management company for more than $800 million. Shares gain 2%.

 

US Import Prices Soar, Signal Rising Inflation Pressures - Import prices soar 2.3% on a monthly basis in May, jumping for a third-straight month in May, while prices from China hit a fresh record, suggesting rising oil prices and a weak dollar are fanning inflationary pressures. Wall Street expected a 2.6% rise.

 

KeyCorp To Sell $1.5B Stock, Halve Dividend - Shares drop 9% as bank announces plan to raise about $1.5 billion from the sale of common and preferred stock while halving its dividend, blaming a federal ruling in a dispute over tax treatment of leveraged leases.

 

US Jobless Claims Rise 25K Last Week - The number of workers filing new claims for unemployment benefits jump by 25,000 to 384,000 last week, suggesting pressure on labor markets is growing after a very weak May jobs report. Economists had expected a 9,000 rise.

Lieberman Seeks To Limit Commodity Investors - Sen. Joseph Lieberman plans to propose a ban on large institutional investors, including index funds, from the nation's booming commodity markets, The New York Times reports.

 

WaMu Denies Regulatory Action Rumors - Washington Mutual says that neither its primary federal regulator nor anyone else has taken any enforcement action against the bank that hasn't already been disclosed, and it is not in discussion with any regulatory agency. Shares rise 4%.

 

IEA Chief Warns Of 'Third Oil Shock' - The world is probably facing "a third oil shock" as figures show proportion of global oil expenditures to global GDP is expected to leap in 2008, coming close to the levels which followed the second oil crisis in 1979, says head of the IEA.

 

MF Global Taps Former CBOT Head - MF Global names Chicago Board of Trade veteran Bernard "Bernie" Dan chief operating officer of its North American businesses as the derivatives brokerage firm tries to recover from the impact of a February trading scandal.

 

Thornburg Swings To 1Q Loss On Investments - The real estate investment trust posts a loss of $3.31 billion, or $20.64 a share, versus net of $75 million, or 62 cents a share, a year ago, as it books unrealized market-value losses and financing-related charges.

 

06/11/08

 

Beige Book Finds US Economy 'Generally Weak' - Fed's Beige Book report says the U.S. economy remained weak through May as consumers were "pinched" by rising food and energy prices and labor markets softened. Report supports expectations that policymakers will hold interest rates steady when they meet June 24-25, as they balance signs of rising inflation with weak growth.

 

Oil Ends Above $136 On Inventory Data - Oil closes at $136.41 a barrel, off from an intraday high of $138.80, seizing on a larger-than-expected draw in oil inventories even as more signs of sinking U.S. demand emerge. Inventories fall by 4.6 million barrels with analysts expecting a 900,000-barrel decline, and the 23.6 million barrel decline in oil stocks over the last four weeks is the biggest such drop in 23 years.

 

US Stocks Fall On Weakness In Financials, Transports - Stocks resume their slide, with financial shares leading the way lower amid lingering uncertainty over the credit crunch and rising expectations of a Federal Reserve rate hike to fight inflation. Higher crude oil also weighing on stocks.

 

US Posts $165.93B Budget Deficit In May - Tax rebates offered to spur a faltering U.S. economy help widen the federal government deficit to $165.93 billion in May, which is 145% larger than the deficit of $67.70 billion in the year-ago month.

 

06/11/08

 

Markets Pound Financials As Fears Grow - Financial markets' focus on banks and brokers intensifies as worries over financial institutions resurface with the approaching quarter-end reporting season starting in earnest for a number of large brokers. Lehman and WaMu fall 7%.

 

Alcoa Falls On Earnings Warnings - Shares of aluminum giant Alcoa falls 5% after the company warns earnings will be clipped by fuel shortages at its Australia operations. The stock also reacted to a downgrade by JPMorgan Chase.

SEC To Float New Rules For Rating Firms - SEC votes to propose tightening rules for credit-rating firms, calling for restrictions to attack conflicts of interest and expanded disclosure. Cites a general lack of understanding about the risks of mortgage-back securities for the proposal.

 

ECB's Stark Says Inflation 'Clearly Above' Stability - Juergen Stark, member of the European Central Bank's Executive Board, says inflation in the euro area is above the central bank's comfort level, adding the institution will act to keep price pressures in check.

 

Burlington Shares Fall On UBS Comments - Shares of Burlington Northern Santa Fe fall 5% after an analyst at UBS says Wall Street expectations for the second quarter aren't factoring in higher fuel costs and puts a short-term sell rating on the company.

 

Zandi Says Average American In Recession - Mark Zandi, chief economist at Moody's Economy.com, says the average American household is experiencing a recession, as the declining job market is limiting wage increases while food and fuel costs continue to rise.

 

Bullard Says Fed Right On Interest Rate Policy - St. Louis Fed Chief James Bullard says the current interest rate policy is appropriately calibrated now to deal with stagnating economic growth and inflationary pressures.

 

Treasury's Steel Says To Share Responsibility - Treasury Undersecretary Robert Steel says responsibility for the current financial crisis must be shared among the regulators, issuers and investors who all fed into the market's exuberance before its unraveling last summer.

 

Kohn Urges Patience In Coping With Oil Prices - Federal Reserve Vice Chairman Donald Kohn urges patience in dealing with higher oil prices, saying the best policy response is to allow "some" short-term rise in both inflation and unemployment rather than aim for "more extreme" outcomes.

 

GM Europe Sees 'Profound' Hit From Oil - GM Europe President Carl-Peter Forster says the well-documented weakness in GM's North American market is also being felt in Western Europe, as production costs soar and the sales rate threatens to sink to multi-decade lows.

 

Kroszner Urges Simpler Credit-Product Disclosures - Federal Reserve Governor Kroszner continues to campaign for clearer, simpler credit-product disclosures, stressing the importance of providing consumers with concise, understandable information about such products.

 

06/05/08

 

US Jobless Rate Jump Takes Fed Hikes Off Table - U.S. unemployment rate posts its sharpest one-month increase in 22 years last month, rising to 5.5%, suggesting U.S. consumers already facing a housing slump and soaring gasoline prices now confront growing pressure from a weakening jobs market. Non-farm payrolls decline by 49,000. Data should take financial-market expectations of Fed rate hikes as soon as this fall off the table.

 

US Stocks Plunge As Unemployment, Oil Prices Rise - Stocks fall as unemployment rates show the sharpest one-month increase in 22 years last month along with a surge in oil prices. Unemployment was broad-based, including manufacturing, construction, retail trade and business. Dow drops nearly 230 points.

 

Oil Surges Above $134 As Dollar Weakens - Oil spikes to $134 a barrel as the dollar continues to fall after the U.S. unemployment rate posts its sharpest one-month increase in 22 years in May. Meanwhile, demand concerns linger after the IEA cautioned that global oil demand growth remains uncertain amid a slowdown in some countries.

 

European Shares Close Lower - European stocks fall due to the rising price of crude oil and dreadful unemployment figures from the U.S. London sheds 1.5%, while Frankfurt slips 2%.

 

Morgan Stanley Sees Oil Driven To $150 By July 4 - Strong demand from Asia will cause a short-term spike in oil prices to $150 a barrel by July 4, Morgan Stanley analyst Ole Slorer says. Forecast echoes that made by Goldman Sachs analyst Argun Murti, who says it is increasingly likely oil could spike as high as $200.

 

Intel Faces Formal FTC Antitrust Probe – Federal Trade Commission opens a formal investigation of Intel, amid deepening antitrust woes for the world's largest computer chip maker. Rival AMD has long been lobbying an FTC probe, saying Intel uses tactics to thwart any competition.

 

AIG Investigated Over Swaps Accounting - SEC is investigating whether insurer American International Group overstated the value of contracts linked to subprime mortgages, according to people familiar with the matter. AIG falls 3%.

 

S&P Says Many Entities At Risk Of Downgrade - Standard & Poor's says the number of entities at risk of having their ratings cut hit a new record in May as a "material slowdown" in housing and consumer activity amid still-tightening lending conditions continue to erode credit quality.

 

Kroszner Says Credit Remains Tight - Fed Governor Kroszner says that while markets have perked up this spring season, investors are still cautious about the economic outlook. Says Fed is still learning lessons from the financial market turmoil.

 

06/04/08

 

MBIA, Ambac Face Cut By Moody's - Following months of debate about their AAA ratings, Moody's says it will likely cut insurance-unit ratings of MBIA and Ambac because of their credit profiles and constrained new business prospects. Ambac falls 18%; MBIA sheds 17%.

 

US Service Sector Slows As Price Gains Alarm- ISM's non-manufacturing index moves to 51.7 in May amid fresh worries about inflation and hiring. Separately, non-farm business productivity increases at a 2.6% annualized rate in 1Q, while a report shows private sector jobs rose by 40,000 in May.

 

RAM Re Loses AAA Rating From S&P - Standard & Poor's pulls its highest rating from the reinsurance operations of Ram Holdings, citing projected losses tied to the meltdown in the subprime-mortgage markets. RAM Re is cut to AA from AAA. Shares fall 3%.

 

06/03/08

 

US Auto Woes Deepen; GM Sales Tumble 28% - U.S. auto industry's slump deepens in May, as sales of pickups and sport-utility vehicles fall amid another surge in gasoline prices, with GM posting a 28% drop and Ford Motor a 16% decrease. Toyota reports a 4.3% decline, though it is its closest ever in eclipsing GM's monthly sales. Separately, GM announces plans to close four North American plants, while outlining efforts to introduce more fuel-efficient cars and engines.

 

Lehman Says Cash Holdings Rise As Rumors Swirl - Lehman Brothers shares close down nearly 10% as investors worry about dilution from a potential capital increase, and as the firm disputes rumors that it had borrowed from the Federal Reserve.

 

US Stocks Fall; Lehman Revives Credit Fears - Banks and lenders drag down U.S. stocks again as fears about capital needs drive shares of Lehman Brothers to levels not seen since the depths of the credit crisis. Dow Jones Industrial Average falls 101 points.

 

Bernanke Puts Strong Dollar On Radar Screen - Fed Chairman Bernanke puts U.S. currency squarely on the Fed's radar screen, saying its slide against other currencies has led to an "unwelcome" rise in U.S. inflation and may be a factor in inflation expectations.

 

US Factory Orders Surge On Higher Prices - U.S. factory goods orders surge in 1.1% in April after rising 1.5% in March, but an analyst says higher prices drove the surprisingly strong gain. Economists expected factory goods to rise a mere 0.1%.

 

Bankruptcies Climb Amid Credit Squeeze, Declining Revenue - Depressed consumer spending and the global credit crunch created a double-edged sword that drove more than 5,000 businesses into bankruptcy in May, marking a 25% increase since the start of the year.

 

S&P Cuts Liz Claiborne To Junk Status - Standard & Poor's cuts its debt ratings on Liz Claiborne into junk status, citing the company's weaker-than-expected credit measures and substantially higher leverage. Company's relatively new business model a factor in downgrade.

 

Toll Brothers Posts Fiscal 2Q Loss - Luxury-home builder turns to a loss amid continued write-downs from housing crunch. Company also calls on Congress to create tax incentives to spur home buying. Executives say Toll expects as few as 4,800 home deliveries this year.

 

S&P Cites Reassessment For Ratings Cuts - A day after it rattled investors' confidence with downgrades of three large investment banks, Standard & Poor's tells analysts its ratings actions were driven by both a reassessment of the companies as well as recent events.

 

06/02/08

 

S&P Cuts Ratings On Lehman, Merrill, Morgan Stanley - S&P cuts the counterparty credit ratings one notch at the trio of investment banks amid what credit analyst Tanya Azarchs says reflects "prospects of continued weakness in the investment banking business and the potential for more write-offs." Lehman's stock falls 7%; Merrill and Morgan Stanley are off 3%.

 

US Stocks Fall Sharply On Financials, ISM Data - U.S. stocks fall sharply with financial firms dragging on the market following warnings from British lender Bradford & Bingley and management changes for Wachovia and Washington Mutual. The Dow Jones Industrial Average is down about 200 points. Also, ISM index shows that U.S. manufacturing activity contracted in May, with price pressures again intensifying.

 

Wachovia Ousts CEO Thompson - Board ousts Chief Executive Ken Thompson, replacing him on an interim basis with Chairman Lanty Smith, nearly a month after Wachovia shifted Thompson out of the chairman role. Shares fall 3%.

 

Oil Jumps As Natural Gas Spurs Heating Oil Rally - Crude oil futures reverse its losses and climbs 1.1% toward $129 a barrel, pulled higher by a rally in heating oil prices as the new front-month July contract gets off to a strong start following last week's losses by the expiring June contract.

 

Bradford & Bingley Restructures Rights Issue - Shares in U.K. lender Bradford & Bingley slump 25% after it warns on its prospects for 2008 and confirms it has restructured its planned rights issue to include the sale of a 23% stake to U.S. investment firm TPG Capital.

 

05/29/08

 

Sears Swings To Surprise 1Q Loss; Revenue Falls 5.8% - Department-store chain posts a net loss of $56 million, or 43¢ a share, compared with prior-year net income of $223 million. The quarters included per-share gains of 10¢ and 30¢, respectively. Revenue drops to $11.07 billion as its bet on an economic upswing fails to materialize. Wall Street expected EPS of 15¢ on $11.41 billion in revenue. Shares fall 3%.

 

US 1Q GDP Growth Revised Up To 0.9% - Gross domestic product rises at a seasonally adjusted 0.9% annual rate from January through March, showing growth wasn't as weak as first thought because of a better trade balance and stronger business spending.

 

US Bank Profits Plunge 45.7% in 1Q - FDIC reports banks reported net income of $19.3 billion for the first three months of 2008, with more than half of all FDIC-insured firms reporting lower profit as they continue to set aside billions to cover delinquent loans that grew across most categories.

 

GM Plans More Cost-Cutting Measures - U.S. auto maker is preparing to announce further restructuring measures aimed at reducing costs and conserving cash amid a deep downturn in U.S. truck sales. Move would follow rival Ford's decision to shave 2,000 salaried jobs.

 

30-Year Fixed Mortgage At 11-Week High - Inflation jitters push the 30-year fixed-rate mortgage average to an 11-week high, says Freddie Mac. The 30-year fixed-rate mortgage average is 6.08% with an average 0.6 point for the week ending May 29, versus 6.42% a year earlier.

 

US Home Sales Climb, But Analysts Don't See Bottom - New home sales rise for first time in six months during April, but the level of demand doesn't meet expectations and analysts don't see a bottom yet. Sales increase 3.3% to a seasonally adjusted annual rate of 526,000. Meanwhile, a closely watched gauge of U.S. home prices shows prices falling 14% in 1Q. The Conference Board's consumer confidence index falls a fifth straight month in May to 57.2, down from 62.8 in April.

 

US Retail Gasoline Up 14.6¢ In Week - Energy Information Administration says the national average retail price of regular gasoline jumps 14.6 cents, or 3.9%, to a record $3.937 a gallon in week ended Monday, the Memorial Day start to the peak-demand driving season.

 

US April Existing Home Sales Fall 1% - Home resales fall to a 4.89 million annual rate, a 1.0% decrease from March's revised 4.94 million annual pace. The April resales level is slightly above Wall Street expectations of a 4.86 million sales rate. The median home price is $202,300 in April, down 8.0% from $219,900 in April 2007.

 

Oil Back Above $133 On Supply Concerns - Crude oil futures rise more than $2 a barrel as traders take advantage of yesterday's dip and begin squaring away their positions ahead of a three-day weekend in the U.S., as well as a public holiday in the U.K.

05/23/08

 

Pimco's Chief Piles Into Mortgage Debt - Bill Gross, the manager of the world's biggest bond fund, switches gears to make a big bet on mortgage debt, almost tripling his holding of it to more than 60% of the fund, the Financial Times reports.

 

Fannie, Freddie Bulk Up Investment Portfolio - Mortgage giants commit to add $74.2 billion of mortgage bonds to investment portfolios in April, a clear indication that these agencies plan to spend at least a sizable chunk of their additional capital in buying mortgage-backed securities.

 

Dell Raised, Sun Micro Cut By Morgan Stanley - Dell hiked to overweight from equal-weight; while it cuts Sun Microsystems to underweight from equal-weight as analysts say accelerated volume growth at low-end of the server market isn't priced into stocks. Dell up 2%; Sun slips 4%.

 

Number Of Defaults Already Exceed 2007 Total - Number of defaults in the global bond market so far in 2008 has already exceeded the total number which occurred during the whole of 2007, a sign that the global economic downturn is starting to bite, ratings agency Standard & Poor's.

 

5/22/08

 

Ford Scraps '09 Profit Expectation; Trims Output - Auto maker, responding to troubling U.S. sales trends and high commodity prices, no longer believes that it will be profitable in 2009 and will instead post break-even results for the year as it reduces production of more profitable SUVs and trucks and boosts output of lower margin automobiles. Shares fall 8%.

 

US Home Prices Fall 1.7% In 1Q - U.S. home prices fall 1.7% in the first quarter, according to data from the Office of Federal Housing Enterprise Oversight. Over the past year, prices decrease 3.1%, the largest year-over-year drop in the history of the index.

 

Oil Reaches $135 A Barrel On Supply Uncertainty - Oil futures reach a new intraday record price of $135.09 before turning lower as the IEA is in the process of lowering its forecast for long-term world oil supply. Nymex crude is now trading down nearly $2 at around $131 a barrel, but is up 39% so far yr to date.

 

US Stocks Tick Up After Big Declines - After showing serious cracks in the previous two days, the stock market enjoys a slight resurgence as investors welcome an unexpected drop in unemployment claims and a break from crude oil's record run.

 

Moody's Drops Again As Ratings Error Probed - Shares in the ratings agency plunge 9% as the firm struggles with the fallout of a report that a computer error led to higher-than-justified ratings on complex securities that Moody's later failed to adjust.

 

Non-OPEC Output Decline Cited For Prices - Falling production in non-OPEC countries such as Russia have contributed to the spectacular rise in global oil prices, Algeria's Energy Minister and OPEC President Chakib Khelil says.

 

Home-Loan Delinquencies Rise In April - Standard & Poor's says delinquencies of home-related loans continue to climb in April, as the ratings agency says the 2007 issuance year continues to be the worst-performing vintage in terms of cumulative losses.

 

05/21/08

 

FOMC Minutes Signal No More Rate Cuts - Federal Reserve appears to shut the door to the possibility of further interest rate cuts, saying in April meeting minutes that the last rate cut was a "close call," and that many officials think future reductions are unlikely even if the economy contracts. Officials also say that while the chances that the economy might be "severely disrupted" had lessened, risks remain skewed to the downside from "bleak" housing and weak labor markets.

 

Oil Surges To Top $133 A Barrel - Nymex crude pushes to a record above $133 a barrel after government data show U.S. crude stockpiles slumped by 5.3 million barrels versus an expected build of 500,000. Brent crude, gasoline and heating oil prices also hit records.

 

US Stocks Plunge On Fed Minutes, Oil - Losses mount for U.S. stocks and the Dow Jones Industrial Average is down about 200 points after the Federal Reserve appears to shut the door on further interest rate cuts, and oil prices top $133 a barrel.

 

Economist Says US Must Address Housing Woes - Warning that the effects of continually declining home values could be severe, Harvard University economist Martin Feldstein urges policy makers to take immediate action to address the housing and credit crises.

 

05/20/08

 

US Stocks Slide On Inflation Data, Oil -Profit declines for Home Depot and Target damp consumer stocks, while increased inflationary concerns drive financials and the rest of the market lower. The Dow Jones Industrial Average slides about 200 points.

 

Oil Settles At Record Above $129 A Barrel - Crude and petroleum products settle at fresh highs ahead of tomorrow's supply data. A market realignment suggests entrenched higher long-term prices and oilman T. Boone Pickens says he expects prices to continue to rise, perhaps to $150 barrel this year.

 

Home Depot Net Drops, Sees More Risk -Home-improvement retailer's CEO sees "more risks than opportunities" through 2008 amid "relatively weak demand" for its core, non-seasonal products. Home Depot posts 1Q net income of $356 million, or 21¢ a share. Shares fall 5%.

 

US April Core Inflation Rise Causes Worry - U.S. wholesale prices climb a modest 0.2% in April, given relief by subdued food and energy costs, but the core rate of inflation rises 0.4%, twice the rate expected on Wall Street.

 

Business, First-Class Air Travel Falls - Number of people flying business or first class globally fell sharply in March, according to International Air Transport Association. Premium traffic fell 3.9% in March compared with a year ago, the largest monthly drop since 2003.

 

Greenspan Sees Commodity Fundamentals - Former Fed chairman says the rapid rise in world oil and food prices is in part the result of speculation in international financial markets but also based on fundamental factors, such as a greater demand for protein rich foods in the developing world.

 

Target 1Q Net Dips 7.5%, Closes Receivables Deal - Retailer reports a 7.5% drop in net income to $602 million, or 74¢ a share, and closes its credit-card deal with JPMorgan Chase as it sees softer-than-expected sales amid a tough retail environment. Analysts expected EPS of 71¢.

 

Home Depot, Citigroup Tighten Card Terms - Home Depot and Citigroup have tightened lending standards and raised interest rates for some users of their co-branded credit card as rising late payments and defaults pinch the home-improvement retailer's profits, CFO Carol Tome says.

 

Dimon Says Bear Stearns Purchase 'Very Risky' - In brief remarks to shareholders at JPMorgan's annual meeting, Chief Executive Jamie Dimon reiterates his mantra that his bank's pending purchase of Bear Stearns will be very complicated and is far from complete.

 

05/15/08

 

US Data Show Weak Manufacturing, Labor Sectors - Jobless claims rise by 6,000 to 371,000 after seasonal adjustments in the week to May 10. Industrial production falls 0.7%, following revised lower 0.2% climb in March. Lastly, manufacturing activity in New York state deteriorates slightly in May, with the general business conditions index falling to -3.23.

 

Blackstone Swings To 1Q Loss Amid Revenue Plunge - Private-equity giant, which went public last June, reports a net loss of $251 million, or 97¢ a share, compared with net income of $1.13 billion a year earlier. Results included $940 million in charges. Revenue plunges 94% to $68.5 million.

 

05/14/08

 

Freddie Mac Posts 1Q Loss, To Raise $5.5B In Capital - Mortgage giant posts third-straight quarterly loss and says it would raise another $5.5 billion in capital by selling stock, as it continues to expand despite mounting mortgage delinquencies. Upon completion of its capital-raising efforts, its regulator will lower the excess-capital cushion on Freddie to 15% from 20%, with another cut to 10% after other steps are taken. Freddie says it won't cut dividend. Shares rise 5%.

 

Slowing US Economy Eases Pressure On Inflation - U.S. consumer prices are contained in April, rising a modest 0.2% and only 0.1% excluding food and energy. Results are further evidence the economic slowdown is easing even after sharp gains in food and energy prices.

 

Morgan Stanley Lays Off Senior Analysts - Investment bank says it will eliminate another 1,500 jobs throughout the company, bringing the total number of cuts since last June to 4,500, or just under 10% of the company's 47,000 employees.

 

JPMorgan Sees $9B In 2Q Charges - JPMorgan boosts the projected charges it will record as part of its Bear Stearns acquisition to $9 billion, plus or minus $1 billion. Impact will be offset by the capital on the brokerage's balance sheet, which stood at $11.5 billion Feb. 29.

 

Greenspan Sees Housing's Bottom Next Year - Former Fed Chairman Alan Greenspan says U.S. home prices are likely to reach a bottom by early next year when the market absorbs a buildup in inventories, clearing the way for a conclusion of the credit crisis sometime next year.

 

US Foreclosure Filings Continue To Surge - Foreclosure filings for April jump 65% from a year earlier and 4% from March, as credit woes and tumbling home values hit homeowners. The foreclosure filings on 243,353 properties last month is the highest since RealtyTrac began issuing its reports in January 2005. \

 

US Mortgage Applications Rise 2.9% - Mortgage application filings rise 2.9% last week from the prior week, driven by increased interest among homeowners seeking refinancings. Applications to buy homes dips 0.7% on a week-to-week basis, while refinancing applications rise 6.5%.

 

05/13/08

 

Bernanke Sees Better Market Conditions - Fed chairman says recent liquidity measures have led to improved market conditions, but warns that conditions "are still far from normal" and pledges to increase the size of the Fed's term auction facility if needed.

 

Fresh Ratings Battle For MBIA, Ambac - Bond insurers MBIA and Ambac Financial get back in the hot seat as Moody's Investors Service says mounting losses are raising fresh questions about whether they deserve their key AAA insurer ratings.

 

US Stocks Down As Wal-Mart, HP Decline - Investors weigh merits of a newly signed acquisition by Hewlett-Packard and look at new developments in one that had been on life support -- Microsoft's offer for Yahoo. Meanwhile Wal-Mart gives a more sobering outlook.

 

Retail Sales Suggest US Avoiding Recession - U.S. retail sales decrease by 0.2%, as expected in April, more evidence that the economy is avoiding recession albeit with growth still very weak. A separate report shows U.S. import prices up sharply for a second-straight month.

 

Electronic Arts 4Q Loss Widens - Videogame publisher loses $94 million, or 30¢ a share, while revenue surges 84% to $1.13 billion. Executives expect profit for first half of fiscal 2009 to be "significantly lower than current consensus expectations." Shares fall 3% late.

 

Applied Materials 2Q Net Falls 26% - Chip making equipment manufacturer posts net income of $302.5 million, or 22¢ a share. Adjusted EPS comes to 26¢. Revenue falls 15% to $2.15 billion. Analysts expected EPS of 22¢ on revenue of $2.13 billion.

 

Toll Brothers Sees No End To Downturn - CEO Robert Toll says the housing market is improving in some areas of the country though "there is no indication that the end [of the downturn] is in sight." Earlier, Toll Brothers reported a 30% drop in home-building revenue.

 

Oil Prices Rise On Heating Oil Surge - Nymex crude surges to a new intraday record of $126.98 a barrel following a spike in heating oil and concerns about Iranian output. Heating oil prices are skyrocketing thanks to strong demand from Europe and Asia for distillates.

 

Morgan Stanley CFO Sees Market Stress Ahead - CFO Colm Kelleher says it will take "at least several more quarters" to remove uncertainty about further credit losses, asset sales and loan extensions to clients. "It is unclear to us what is going to lie ahead," he tells investors.

 

Yahoo Falls 21% After Microsoft Ends Bid - Yahoo shares plunge 21% in pre-market trading, removing about $8.7 billion in market value, as Wall Street resets the Internet company's worth after Microsoft withdraws its acquisition offer. Microsoft shares rise 5% as many analysts said the software giant was prudent in not raising its offer further.

 

US Futures Slip As Microsoft Pulls Yahoo Offer - U.S. stock futures tick lower, with shares of Yahoo down by 21% in premarket trading after Microsoft withdrew its offer for the Internet portal. Also, the dollar is down against rivals and oil futures are higher.

 

Wall Street, Lenders Face Subprime Scrutiny - Federal prosecutors step up scrutiny of players in the subprime-mortgage crisis, with a focus on Wall Street firms and mortgage lenders. Group will look into potential crimes ranging from mortgage fraud by brokers to securities fraud, insider trading and accounting fraud.

04/24/08

 

US Factory Downturn Deepens - Demand for big-ticket items in the U.S. unexpectedly declines for a third-straight month in March, suggesting the economic downturn continues to plague the factory sector. A separate report shows a surprising drop in first-time claims for unemployment insurance.

 

US New Home Sales Slide To 17-Year Low - U.S. new-home sales slump 8.5% in March to a seasonally adjusted annual rate of 526,000, their lowest level since October 1991. Meanwhile, the supply of homes for sale soars to nearly a three-decade high, suggesting little prospect of any near-term turnaround.

 

Microsoft Net Slips 11% After EU Fine - Microsoft fiscal 3Q earnings slip to $4.39 billion, or 47¢ a share, on a charge related to a European Commission fine and lower sales in its two biggest divisions. Sales are flat at $14.45 billion. Earnings from its client division, which makes its Windows operating system, fell 26%, and its business division, which includes Office software, sees a 7.7% profit decline. Shares fall 4% following the report.

 

American Express 1Q Net Down 6% -Net income falls 6% to $991 million, or 85¢ a share, as the company, which is facing a souring U.S. economy, boosted its loan loss provision by 48%. Company beats analysts' estimate, and shares rise 4% late.

04/23/08

 

Ambac Posts Loss On CDO, Investment Losses - Bond insurer loses $1.66 billion, or $11.69 a share, in 1Q on another $1.73 billion in collateralized-debt-obligation losses and $1.04 billion in loss provisions as returns continue to be weighed down by the credit crunch. Shares drop 19%.

 

Weekly Mortgage Applications Fell 14.2% - Mortgage Bankers Association says mortgage applications filed last week decreased a seasonally adjusted 14.2% from the week before and the volume of applications was down 3.2% from the same week in 2007.

 

Starbucks Cuts Views, Citing Weak Economy - Coffee retailer projects lower fiscal 2Q profit and cuts its FY-earnings forecast citing "the sharp weakness in the US consumer environment." Shares fall 10%.

 

Sam's Club Says Limiting Customer Rice Purchases - Membership warehouse division of Wal-Mart Stores is limiting how much rice U.S. customers can buy because of what it calls "recent supply and demand trends." Broader chain of Wal-Mart stores has no plans to limit food purchases.

 

Another Form Of Risky Debt Haunts Banks - Banks have minimized exposure to high-risk corporate debt by hacking away at the once overwhelming backlog of leveraged buyout debt. Yet just recently, other struggling companies have started to turn to their lines of credit for help, leaving banks exposed to junk debt in another - perhaps even riskier - form.

04/22/08

 

Oil Hits Record $119 On Supply Woes, Dollar Weakness - Nymex crude rises above $119 a barrel on continued supply threats in Nigeria, a potential strike by workers at the 196,000 barrel-a-day Grangemouth refinery in the U.K., and the dollar's struggles against the euro.

 

US Stocks Down As High Oil Hits Airlines - With oil prices setting more record highs and another major bank confirming a capital infusion, consumer, financial and especially airline stocks help drag the market lower.

 

RBS To Sell $24B In Stock To Raise Capital  - Royal Bank of Scotland is seeking a $24 billion rights issue, and disposal talks for its RBS Insurance and other smaller assets are well advanced. Moves will replace some of the capital-depletion suffered through its buy of ABN Amro assets, as well as from value deterioration of mortgage and other securities. Shares fall 4%.

 

Richmond Fed Output Activity Contracts - The Federal Reserve Bank of Richmond says economic activity in the area contracts in April to 0 versus 6 in March as growth in factory shipments and new orders tapers off and factory employment continues to decline.

 

US Used-Home Sales Fall 2% In March - Existing-home sales decline to a 4.93 million annual rate, a 2.0% decrease from February's unrevised 5.03 million annual pace. Result is in line with expectations. The median home price drops 7.7% to $200,700 from a year ago.

 

Morgan Stanley Lowers Upfront Signing Pay - Morgan Stanley, a key participant in arms race to sign top-producing financial advisors, has signaled it wants to cool the race down a bit. Top recruits will now receive 120% of their prior year's production, down from 140% previously.

 

04/18/08

 

Citi's Write-Downs Drive Loss, Sees 9K More Job Cuts - Bank reports a 1Q net loss of $5.11 billion, or $1.02 a share, and says it plans to cut 9,000 more jobs in the 2Q. Results include more than $13 billion in write-downs and credit costs on subprime-related exposures, leveraged loans, Alt-A mortgages and commercial real estate. Revenue plunges 48% to $13.22 billion, which beats the expected figure of $12.77 billion. Fitch cuts bank's credit rating one notch to AA-. Shares gain 9% in pre-market trading.

 

3-Month Dollar Libor Continues To Jump - The closely-watched three-month U.S. dollar London Interbank Offered Rate climbs nine basis points to 2.9075%, hitting its highest level in almost six weeks. The rate has now risen 17.4 basis points over the past two days on concerns that banks may have given misleadingly low quotes for the rates.

 

Capital One 1Q Net Down 19% -Net income falls to $548.5 million, or $1.47 a share, on pressures in company's U.S. credit-card, local-banking and auto-loan businesses. EPS from continuing operations rises to $1.70. Analysts expected earnings of $1.45 a share.

 

AT&T plans to cut 4,600 jobs mostly at management level -

 

04/15/08

 

JPMorgan 1Q Net Cut In Half On Markdowns, Beats Street - Bank's net income falls to $2.37 billion, or 68¢ a share, as its total revenue falls 9% to $17.9 billion. Wall Street expected earnings of 64¢ a share on revenue of $17.4 billion. Bank adds $2.5 billion to its allowance for credit losses, and says its investment banking unit marked down $2.6 billion of assets. Firm sees difficult market conditions continuing. Shares gain 2% early.

 

US Housing Starts Slide 11.9% - Housing starts drop to a 947,000 annual rate in March, the lowest since March 1991, after falling a revised 0.7% in February to 1.075 million. Economists expected a 6.1% drop. Building permits drop 5.8% to a 927,000 annual rate.

 

US CPI Up 0.3% In March On Oil Prices - U.S. consumer prices rebound in March on the back of rising oil prices, a sign of growing concern for Fed policy makers in the midst of an easing cycle aimed at calming troubled financial markets. Core inflation, which excludes food and energy, posts a 0.2% gain.

 

Oil Prices Near $114 On Dollar, Supply Threats - Nymex May crude rises to $113.93 a barrel on a weaker dollar and disrupted oil exports from Mexico. Front-month May RBOB reaches a new all-time high of $2.8715, while Brent crude rises to new high of $112.08 a barrel.

 

04/16/08

 

Wells Fargo 1Q Net Falls 11% On Credit Losses - Bank posts net income of $2 billion, or 60¢ a share, as it reports $326 million in mortgage-related write-downs and nearly triples its credit-loss provision. Analysts expected EPS of 57¢. Shares gain 6% in pre-market trading.

 

04/14/08

 

Wachovia To Raise $7B In Capital, Posts 1Q Loss - Wachovia says it will raise $7 billion in fresh capital by selling common and preferred stock -- $3.5 billion of each -- and will save another $2 billion a year by cutting its dividend 41%. The bank posts a 1Q net loss of $350 million caused by $2 billion in "market-disruption" losses and sinking credit quality. Shares slide 10%.

 

Summers Says US Is Likely In Recession - Former Treasury Secretary Lawrence Summers says the U.S. economy is likely contracting and that "there is a very large amount of pain left to be felt" in the real economy.

 

Volcker Warns Against Inflation Complacency  - Former Fed Chief Paul Volcker warns policy makers not to lose sight of their fundamental mission to keep inflation under control. He also says that when the dollar was at its peak, it was "too high and overvalued."

 

Citigroup Deal Signals Private Equity Risk  - Plans by several private equity companies to take on some $12 billion of Citigroup's debt portfolio forms part of a growing trend among banks aimed at clearing a leveraged loan logjam, but it may prove to be a risky business say experts.

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