- 123jump.com Staff
- 17 Jan, 2008
- New York City
Large losses at banks and talks of downgrade of bond insurance companies and inadequate response from the Whitehouse to the ongoing credit market turmoil left most investors nervous. The coming recession in the economy is already felt in the earnings of banks and other companies. Merrill Lynch reported revenue decline of 66% to $11 billion in 2007 and reported a loss of $12.8 billion compared to profit of $9.8 billion in 2006.
- 123jump.com Staff
- 17 Jan, 2008
- New York City
Ambac plunged 51% and MBIA lost 33% of its value in the morning trading after investors worried that companies may need to raise capital soon. The declines in subprime mortgage markets are only accelerating and with that exposure of these companies. Ambac has now lost nearly 85% of its value in six months of trading. The PMI Group and MBIA fell in sympathy as well.
- 123jump.com Staff
- 17 Jan, 2008
- New York City
Hong Kong stocks rebounded after four days losses. Hang Seng Index added 2.7% or 664.13 or 25,114.98. China asked banks to increase the reserve ratio to 15% from 14.5% effetive of January 25. HSBC rebounded after declining for six days in a row. Mobile phone operator China Mobile jumped 3.4% to HK$122.5, while China Life edged up 6.1% to HK$35.5.
- 123jump.com Staff
- 17 Jan, 2008
- New York City
U.S. stocks came under pressure at the opening after Merrill Lynch reported a sharply higher sub-prime related losses and new home construction and completion fell in December. Merrill reported a loss of $10.73 per share or $8.6 billion from continuing operations in the fourth quarter a reversal from a profit of $7.1 billion a year ago. Proforma book value declined to $30.30 from $41.35 at the end of December including the investments received by the end of the year.
- 123jump.com Staff
- 17 Jan, 2008
- New York City
Stocks in India fell for the fourth day in a row. Ssensex index declined 0.8% or 167.30 to 19,700.82. Reliance Industries fell 3% after it reported 162% rise in net income on 23% rise in net sales. Reliance Energy fell 2.4% to 2,212 after it reported proft rise of 50% on 1.8% rise in sales. TCS fell 2.3% after it posted 7% increase in profit.
- 123jump.com Staff
- 17 Jan, 2008
- New York City
Stocks in Japan rebounded after four days of decline. Nikkei 225 index increased 2% or 278.94 to 13,783 and Topix index added 27.21 to 1,329.58. property stocks rallied on the hopes that housing industry will rebound in January. Exporters advanced after yen fell to 105.90. Sony Corporation rose 2.72%, Toyota Motor soared 3%, and Honda Motor Corporation climbed 3.90%. Retail stocks declined after the Bank of Japan said that the consumer sentiment is on the decline.
- 123jump.com Staff
- 16 Jan, 2008
- New York City
European markets closed lower on falling oil and gold prices and worries related to the economic slow-down in the U.S. Inflation in Germany rose at 2.3% in 2007, above the target rate of 2% set by ECB. Euro area annual inflation was 3.1% in December 2007, unchanged compared with November. The Bank of France estimated that economic growth slowed down in the fourth quarter. French government ordered Total to pay civil fines for the sinking of oil tanker Erika in 1999.
- 123jump.com Staff
- 16 Jan, 2008
- New York City
Economic assessment from twelve regions reported in the so called Beige Report suggested that economy continued to grow at a slower pace. Holiday sales in general were disappointing and demand for automobiles was weak. Nonfinancial sectors reported robust demand. Market averages rallied after the report but at close three popular averages fell. Ambac, the bond insurer, plunged 34% after it cut its dividend and revealed a plan to raise $1 billion.
- 123jump.com Staff
- 16 Jan, 2008
- New York City
UK stocks fell after local real estate community estimated that housing markets was at its weakest in the last fifteen years. FTSE 100 index fell 1.4% or 82 to close at 5,942. Retailers rose after employment report from ONS suggested strength in certain age groups. Of the FTSE 100 index stocks, British Land led the gainers with a rise of 4% and Antofagasta led the decliners with a fall of 6.8%. Weak commodities and oil prices dragged miners, energy, and resources stocks.
- 123jump.com Staff
- 16 Jan, 2008
- New York City
Ambac Financial group, bond insurace group, fell 33% after it lowered its dividend. The company plans to issue stocks and other securities to raise $1 billion. The bond insurance group also replaced its chief executive. Investors worry that may have to raise more capital in he future as Ambac insured bonds worth $555 billion of bonds may deteriorate in value. Ambac stock has lost nearly 90% of its value in the last six months and has fallen from a peak of $96 to $13 in the period.
- 123jump.com Staff
- 16 Jan, 2008
- New York City
U.S. stocks fell in the morning hours after JP Morgan reported $1.3 billion and Wells Fargo reported $2.61 billion of losses. Intel revenue rose 10.5% in the fourth quarter but the stock fell 12%. BEA Systems and Oracle agreed to merge after Oracle lifted its offer. December CPI rose 0.3% and 4.1% in the year 2007. Hong Kong, Indonesia, and Japan markets fell more than 3%. Dollar fell to a record low against euro.
- 123jump.com Staff
- 16 Jan, 2008
- New York City
Hong Kong stock index, Hang Seng suffered its worst one-day decline in the last six years on the back of a fall in the U.S. indexes. Hang Seng index fell 5.4% or 1,386.93 to 24,450.85. Financials, property developers, and shipping companies fell in the session. Asian markets fell across the region with Hong Kong and Indonesia falling more than 5%, Japan declining 3.4%, and Korea and India losing more than 2%.
- 123jump.com Staff
- 16 Jan, 2008
- New York City
Tokyo stocks declined, tracking losses in the U.S. and European markets. Nikkei 225 plunged 3.35% or 468.12 to 13,504.51, while the broader Topix Index slid 47.83 to 1,302.37. In a barrage of economic news market sentiment soured on weak domestic economy and weaker global investment setiment. Machinery orders fell 5.9% in November, domestic corporate goods price index rose 2.6% in December, and export price index fell 1.8%. Preliminary November trade surplus rose to 9.32 trillion yen.
- 123jump.com Staff
- 15 Jan, 2008
- New York City
Financial markets across Europe fell on the global slowdown as U.S. markets fell. Uk, Norway, and Spain fell more than 3%. France, Germany, and Switzerland declined more than 2%. Hypo Real Estate fell 35% after it revealed losses in subprime lending in the U.S. Commerzbank dropped 8$ and TUI fell 6%. Total S.A. said that fourth quarter profit rose 32% on higher refining margin of $30.10 ton. Accor revenue in 2007 rose 6% to 8.12 billion euros.
- 123jump.com Staff
- 15 Jan, 2008
- New York City
U.S. stocks fell sharply as investors grew nervous of the impending slow-down in the economy. The growing perception that the ongoing housing market correction will eventually slow-down the economy. Citigroup reported 70% decline in revenue and a loss of $9.8 billion on $18.1 billion write down related to subprime and consumer lending. Merrill and Citigroup are in deals to secure $21 billion in investments from investors in Singapore, Japan, Korea, and Middle East. Intel earnings jumped 51%.