- 123jump.com Staff
- 15 Jul, 2008
- New York City
The Bank of Japan left its key rate unchanged at 0.5%. The central bank cited rising inflation pressure and weak economy. Financial institutions in Japan estimated exposure to debt issued by Fannie and Freddie of $44 billion. Sumitomo Realty led the decliners in Nikkei 225 index with a loss of 6.5% followed by declines in Sumitomo Mitsui, Tokyu Land Corp, and Mitsubishi UFJ Financial Group.
- 123jump.com Staff
- 15 Jul, 2008
- New York City
U.S. stocks recovered from the lows of the day as tech stocks edged to the positive territory. Nasdaq recovered from the loss of 1% but Dow and S&P 500 indexes continue to trade near loss of 0.4%. Kimberly Clark dropped more than 5% after it released premiminary results and lowered annual earnigs outlook. Citigroup, Fannie Mae, Freddie Mac and Bank of America fell to their new lows.
- 123jump.com Staff
- 15 Jul, 2008
- New York City
Benchmark index in Mumbai fell nearly 5% as global markets sold off. Expectations of higher inflation, impending confidence vote in parliament and net outflow of foreign investors kept stocks falling. Banks and realty stocks led the decliners. Banks are trading at one year low on the expectations of rising inflation and slowing economic growth. Latest data on industrial production lowered expectations of economic growth.
- 123jump.com Staff
- 15 Jul, 2008
- New York City
Unhappy investors are increasingly distrustful of the U.S. government bailout plan of Fannie and Freddie that includes bond holders and excludes stock holders. Fannie and Freddie dipped to another low with a loss of more than 20% today and dragged stocks of banks and financial companies. Citigroup, SunTrust, Wachovia and Bank of America declined to their new lows not seen at least in the last ten years. General Motors cut its dividend.
- 123jump.com Staff
- 14 Jul, 2008
- New York City
The rescue plan proposed for two troubled lenders by the U.S. Treasury and Fed underwhelmed investors. The bail out plan is expected to excude shareholders. Fearful investors sold regional and large bank stocks. Of the S&P 500 index stocks, top fifteen decliners were banks with a los between 36% and 11%. Citigroup, AIG, Merrill Lynch and Wachovia were among the leading decliners. Washington Mutual, the worst decliner in the S&P 500 index said after the close it has $40 billion liquidity.
- 123jump.com Staff
- 14 Jul, 2008
- New York City
Anheuser-Busch, the century old family controlled beer brewer agreed to a hostile offer of $70 per share or $52 billion from InBev NV. The newly merged company will not only have the largest market share in the U.S. but also will have largest worldwide revenue, surpassing SABMiller sales. The all-cash offer was agreed on Sunday and investment stake controlled by Warren Buffet expects to make $770 million in capital gains.
- 123jump.com Staff
- 14 Jul, 2008
- New York City
U.S. stocks traded lower as financial stocks declined. Zions Bancorp, SunTrust, Bank of America and Comercia fell after Goldman Sachs lowered the outlook for the banks. Lehman Brothers, Merrill Lynch and Citigroup fell more than 5% after Fannie and Freddie rescue plan failed to impress investors. Yahoo dropped after it rejected another overture from Carl Ichan and Microsoft. Apple gained after it sold more than one million iPhone 3G version in the first three days of launch.
- 123jump.com Staff
- 14 Jul, 2008
- New York City
U.S. Treasury Secretary Paulson asked Congress an authority to take a stake in the two troubled mortgage lending agencies Fannie Mae and Freddie Mac. The Secretary also wants to increase lending limits of two agencies and the Fed will open its discount window to lenders. Freddie Mac sold $3 billion in short term debt with higher than average interest from investors. The stocks of two companies remain volatile and investors fear a further decline in their values in the near future.
- 123jump.com Staff
- 14 Jul, 2008
- New York City
The largest euro zone bank Santander offered to purchase Alliance & Leicester for 317 pence per share. The deal values the company at 1.26 billion pounds and includes an interim dividend of 18 pence to shareholders. Santander returned to purchase the troubled UK lender at a lower price after three months as credit market weakness have persisted and A&L trades at nearly 50% lower price. The deal is fraught with risks at UK economy slows down and credit market remain jittery.
- 123jump.com Staff
- 11 Jul, 2008
- New York City
Stocks in Japan continue to decline as investors worry that the growing crisis in the U.S. financial system may dampen exports. The ongoing credit market crisis in the U.S. may require bailout of the two mortgage agencies Fannie Mae and Freddie Mac. The two mortgage lenders collectively hold $5.2 trillion in debt and the U.S. government debt totals $9.3 trillion. Exporters, banks, realtors and retailers closed lower. J Front Retailing fell 5% after it forecasted annual income rise of 19%.
- 123jump.com Staff
- 11 Jul, 2008
- New York City
Stocks in London declined as investors worried that U.S. financial system crisis is likely to spread further and may require government bailout of two largest mortgage lending agencies. Fannie Mae and Freddie Mac dropped to 2-decade low and dragged with them stocks of banks in the U.S. and UK. The stocks of lenders including HSBC, Barclays, HBOS and Royal Bank of Scotland declined more than 20% in the last nine months of trading.
- 123jump.com Staff
- 11 Jul, 2008
- New York City
Investors increasingly fear that credit markets are likely to weaken further and government sponsored mortgage agencies may have to be bailed out by the U.S. government at the expense of shareholders. Fannie and Freddie dropped to 2-decade lows. The ongoing turmoil in the U.S. financial system is increasingly viewed by global investors as the primary driver for the global economic slowdown. In addition rising military threat from Israel is driving the crude oil to record high.
- 123jump.com Staff
- 11 Jul, 2008
- New York City
U.S. stocks fell sharply after investors feared worsening financial health of two government sponsored mortgage lenders Fannie and Freddie. Both lenders dropped as much as 40%. Lehman Brothers dropped 15% to a 9-year low. Anheuser Busch and InBev NV have entered in merger talks and InBev has lifted its offer price to $70 per share. Retailers, consumer driven stocks and transportation stocks fell sharply.
- 123jump.com Staff
- 11 Jul, 2008
- New York City
U.S. stocks fell sharply on a sharp rise in crude oil prices and continued weakness in financial stocks. Rising tensions in the Mideast lifted crude oil futures to a record high. Fannie Mae Plunged 30% and Freddie Mac dropped 40% on the speculation that the government bailout plan may include shareholders. Citigroup sold its German consumer finance business to Credit Mutuel Group of France for 4.9 billion euros or $7.6 billion.
- 123jump.com Staff
- 10 Jul, 2008
- New York City
European markets closed sharply lower as investors faced falling corporate sales and profit. Hypermarket retailer Carrefour reported smaller than expected rise in sales and plans to curtail its remodeling in France and accelerate expansion in Brazil. Clay tile and brick maker Wienerberger estimated decline in sales and operating profit. UK retailers Burberry and Kingfisher dropped on negative comments from Goldman Sachs. UK left its key lending rate unchanged.