Category
Credit
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Chinese Inflation Continues Unabated, Reported at 6.2% for September
By Jason Simpkins Staff Writer China had a 6.2% inflation rate for September, and can expect inflation to continue at that high rate for “a few months,” – despite renewed efforts to hold down the general level of prices – the National Development and Reform Commission, China’s top agency for economic planning, has reported. The [...]
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Banks Create Fund to Help to Fight Woeful Credit Market
From staff reports Three of the United States' biggest banks – Citigroup Inc. (C), Bank of America Corp. (BAC) and J.P. Morgan Chase & Co. (JPM)- announced yesterday (Monday) that they agreed to start a fund to enhance the liquidity of asset backed commercial paper (ABCP) and medium-term notes by structured investment vehicles (SIVs). The [...]
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The Three Pathways to Profit as Investors Make it All About Earnings
By William Patalon III, MBA Managing Editor Money Morning/The Money Map Report In the weeks to come, it will be all about earnings. Stock prices soared to a new record high a week ago today (Monday), on a newfound belief that the subprime mortgage mess was contained. We predicted that belief would be short-lived, and [...]
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Citigroup and UBS Brace For Losses, but Dow Jones Sets Record Above 14,000
By Jason Simpkins Staff Writer On a day that two huge banks took major profit hits because of the subprime market crisis, stocks soared to record highs yesterday (Monday) on the belief that the worst of the ensuing credit crisis had passed. Citigroup (C) and UBS AG (UBS), the largest banks in the United States [...]
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Warren Buffett and Berkshire Hathaway Rumored as Bear Stearns Investors
From Staff Reports Bear Stearns Cos. Inc. (BSC) shares jumped almost 7.5% yesterday (Wednesday) after the New York Times reported that the investment bank is in talks to sell a minority stake to investors including Warren Buffett. The firm is in "serious" talks with several outside investors and could sell as much as 20% of [...]
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Will Fed Rate Cuts Have an Inflationary Impact?
When Federal Reserve policymakers announced the half-a-point cut in interest rates last Tuesday, I was almost at a loss for words. As all of you know, I had projected reduction of 25 basis points, and by the time Tuesday’s meeting of the central bank’s Federal Open Market Committee (FOMC) rolled around, the market supported my [...]
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How to Play Today's FOMC Meeting
By Martin Hutchinson Director of Global Investing Research Wall Street has firmly got it into its tiny overpaid noggin that the Fed Chairman Ben S. Bernanke and the central bank's Federal Open Market Committee will slash interest rates today. I'm not so sure. Whatever Bernanke & Co. does will indicate the medium-term future of Federal [...]
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Euro Debt Market Faces 'Pivotal' Test With $140 Billion Maturing
From Staff Reports Companies in Europe face a situation in which they need to refinance nearly $140 billion worth of commercial by the end of next week, according to Deutsche Bank AG, Germany's biggest bank. This will increase corporate borrowing costs. According to Bloomberg News, Deutsche Bank Credit Strategist Jim Reid wrote in a research [...]
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Billionaire's Plans for Macau Casino Resort Stung by Global Credit Crunch
By William Patalon III Managing Editor The Money Map Report Even billionaires aren’t immune to the subprime-mortgage crisis and the accompanying global credit crunch. Only a week after the Las Vegas Sands Corp. opened its luxurious Venetian Macao hotel and resort just off the China coast, the Macau casino plans of Australian billionaire media mogul [...]
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Canada's Unchanged Interest Rate Signals its Concern for U.S. Credit Crunch
By Mike Caggeso Staff writer The Bank of Canada announced Wednesday that it will keep its target for its overnight lending rate at 4.5%, and indicated that previous hints at a rate increase are economically rational, but premature. The economy of our northern neighbor is growing at a faster clip than expected. Its total and [...]
