- 123jump.com Staff
- 17 Sep, 2008
- New York City
The Bank of Japan left its key rate unchaged at 0.5% and added liquidity to the system. Nikkei 225 rose 1.21% or 140.07 to 11,749.79, and the broader Topix Index advanced 0.4% or 3.86 to 1,121.43. The U.S. Fed bailed out AIG after it offered emergency loan of $85 billion. The bailout, a temporary measure failed to boost investors sentiment. In Tokyo trading banks and real estate companies declined. Commodities prices fell on a weakness in base metals.
- 123jump.com Staff
- 17 Sep, 2008
- New York City
The U.S. benchmark indexes fell more than 4% as investors sell on worries of broadening financial crisis and the nature of response from regulators and politicians. The latest AIG bailout appears adhoc and piecemeal and the U.S. regulators lack a coordinated strategy to deal with systemic failure that has a real potential of dragging the U.S. into a long period of economic malaise. Precious metals surged as investors feared more poor response from the central bankers.
- 123jump.com Staff
- 17 Sep, 2008
- New York City
Stocks in Mumbai, India declined 1.9% as financial stocks in the region declined in the wake of broadening U.S. financial crisis. ICICI Bank dropped 4.8% after it disclosed $25 million exposure to Lehman Brothers, the bankrupt investment banker. Sterlite Industries fell 8.9% to 435.25 rupees and Reliance Industries declined 3% to 1,864.70 rupees. Rupee traded to 9-year low as it reached near 47 to a dollar.
- 123jump.com Staff
- 17 Sep, 2008
- New York City
Financial and mining stocks in UK plunged as world markets decline for third day this week. The ongoing widening U.S. financial crisis has unnerved major European and Asian investors. The U.S. financial system weakness has spread from brokers to banks to insurance companies. The BoE along with other central bankers took measures to improve liquidity, but measures fell short of calming investors. UK unemployment rate rose in three months to September.
- 123jump.com Staff
- 17 Sep, 2008
- New York City
Banks, brokerage houses, insurance companies and credit card processors fell sharply after the U.S. bailout of AIG failed to improve liquidity in the interbank loan markets. Dow, Nasdaq, Russell 200 and S&P 500 plunged as much as 5% before rebounding to a loss of more than 3%. Banks plunged more than 8% and Goldman Sachs and Morgan Stanley declined more than 20%. Crude oil fell but gold surged as investors lose their confidence in central bankers.
- 123jump.com Staff
- 16 Sep, 2008
- New York City
European markets closed lower after banks in the region dropped and ECB in coordination with Swiss National Bank and the U.S. Fed added liquidity to the system. Barclays, after the close may have reached an accord to buy Lehman capital markets operations in the U.S. AIG downgrade dragged UBS down 17% and HBOS by 21%. Xstrata dropped 7% after copper and other metals fell more than 3%. Energy companies in the region dropped after crude oil futures fell 3%.
- 123jump.com Staff
- 16 Sep, 2008
- New York City
U.S. stocks traded volatile as AIG plunged 75% in the morning and recovered to close down 21%. The giant insurance company debt was downgraded by several rating agencies but optimism ran high in the late afternoon that Fed emergency package may be released soon. Investors around the world sold stocks of financial institutions after Lehman filed bankruptcy. Goldman Sachs earnings dropped 70%. Mexico dropped 4% and European markets fell.
- 123jump.com Staff
- 16 Sep, 2008
- New York City
Stocks in Australia dropped as banks around the world declined after Lehman Brothers filed for bankruptcy protection and AIG faced liquidity issues and sought $75 billion in emergency funding. The news of two large financial meltdown rattled investors aroud the globe. Lehman Brothers owes A$400 million to Australian banks. Babcock & Brown led decliners in the index stocks with a plunge of 48%. Commodity stocks also slipped as crude oil prices declined 5.4%.
- 123jump.com Staff
- 16 Sep, 2008
- New York City
Stocks in Asia and in Japan fell as banks plunged after Lehman Brothers filed bankruptcy protection, Merrill Lynch was sold to Bank of America and AIG faced liquidity crunch. The U.S. financial crisis continues to deepen as more companies are ensnared. AIG, the largest insurance company may need to raise $75 billion in emergency funding, which increasingly looks unlikely. Seven banks in Japan have combined exposure of $1.6 billion to the failed investment banker Lehman Brothers.
- 123jump.com Staff
- 16 Sep, 2008
- New York City
Several ratings agencies lowered their ratings and views of credit derivative counterparty risk level for AIG. Investors quickly reacted to the downgrades and sold AIG stock. AIG plunged 42% as the lowered ratings willl only force th battered insurer to raise additional $11 billion. AIG has been in contact with the Fed to raise emergency loan after the company and private investors failed to agree on terms.
- 123jump.com Staff
- 16 Sep, 2008
- New York City
Banks around the world fell as investors sell stocks in Asia and Europe. The prospect of AIG bankruptcy filing swirled the borderless global markets and banks in Japan, China, Hong Kong, Korea, India and in UK dropped. Japanese and Korean banks plunged as several banks in the region have nearly $1.5 billion in loan exposure to Lehman Brothers. Metals and crude oil futures fell to six-month lows in New York trading.
- 123jump.com Staff
- 16 Sep, 2008
- New York City
U.S. financial crisis deepened as Lehman Brothers filed for bankruptcy protection, AIG faces a severe credit test and liquidity crunch and Merrill Lynch was forced to sell the company to Bank of America. The Fed and the U.S. Treasury are finally sending clear signals to global markets and allowed Lehman to fall. Once unthinkable, talks of AIG bankruptcy intensifed ahead of the Fed rate decision tomorrow. AIG may need to raise as much as $75 billion in the short term.
- 123jump.com Staff
- 15 Sep, 2008
- New York City
European markets participated in a global sell-off as the U.S. financial crisis broadens. Lenders, brokerage houses and other financial companies declined in Europe and UK. Lehman Brothers after seeking bankruptcy protection in the U.S. was forced out from energy and commodities tradig in London. Separately, BASF agreed to acquire Ciba for Sfr 3.45 billion.
- 123jump.com Staff
- 15 Sep, 2008
- New York City
Stocks in Australia fell after Lehman Brothers decided to seek bankruptcy protection. The news rattled markets in Australia and few other markets that were open in Asia. Lehman Brothers, struggling for months to find a buyer finally was forced to seek protection as a deal with Korean bank unraveled. Australia suspends Lehman from the exchange membership.
- 123jump.com Staff
- 15 Sep, 2008
- New York City
The financial regulator FSA in Japan ordered Lehman to retain assets at least equal to debt in the country. Separately, three banks in Japan have bank debt exposure of at least $750 million to Lehman. Over the weekend Lehman said that it intends to file for bankruptcy protection which was followed with a filing on Monday morning. Markets in Japan, China and Korea were closed.