Archives for June 2008

June 2008 - Page 4 of 13 - Money Morning - Only the News You Can Profit From

Bunge Buys Out Corn Products for $4.4 Billion

By Jason SimpkinsAssociate Editor Bunge Ltd. (BG), fertilizer and oilseed producer, said it will buy Corn Products International Inc. (CPO) for $4.4 billion, or $56 a share, a 31% premium to its Friday closing price. The purchase will help Bunge expand its product line to include Corn Products' starches, syrups and sweeteners. The deal will […]

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“Frankenfoods” Gain Greater Acceptance as Food Prices Skyrocket

By Jason Simpkins Associate Editor For more than a decade, European policymakers have spurned genetically modified crops, but these so-called Frankenfoods are beginning to look more and more appetizing in the wake of food shortages and soaring prices. Only 21% of Europeans are willing to eat genetically engineered food, according to a survey by the […]

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MBIA on the Hook for $7.4 Billion After Moody’s Downgrade

By Jennifer Yousfi Managing Editor After a recent credit-rating downgrade, MBIA Inc. (MBI) must come up with $2.9 billion in possible termination payments, as well as an additional $4.5 billion in collateral to stabilize guaranteed investment contracts (GICs). Many investment contracts have minimum collateral requirements that go into effect in the event of a credit-rating […]

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Moody's Joins Other Rating Agencies in Downgrade of Ambac, MBIA

By Jennifer Yousfi Managing Editor Moody's Investors Service on Friday downgraded the debt rating of key bond insurers MBIA Inc. (MBI) and Ambac Financial Group Inc. (ABK), increasing expectations that more write-downs are in the offing for the U.S. financial-services sector, which has already written off nearly $400 billion in losses. Moody's Investors Service, subsidiary […]

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All Eyes Will be on the Fed as Investors Look for Signals on Both Inflation and Interest Rates

By William Patalon IIIExecutive EditorMoney Morning/The Money Map Report The U.S. Federal Reserve will be in the spotlight again this week – and not because of those speaking engagements that seem to help whipsaw investor emotions. Tomorrow (Tuesday) and Wednesday, central bank Chairman Ben S. Bernanke will meet with his fellow policymakers on the interest-rate […]

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Fed Policymakers Look to Juggle Inflation, Stagnation

By Jennifer Yousfi Managing Editor The U.S. Federal Reserve faces a tough challenge as it kicks off a two-day policymaking meeting tomorrow (Tuesday): It probably needs to start raising interest rates to prop up the U.S. dollar and offset a major escalation in inflationary pressures; but the economy needs low interest rates if it's to […]

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Mexico Joins the Global Battle Against Inflation with Surprise Rate Cut

By Jason SimpkinsAssociate Editor Mexico's central bank unexpectedly raised its benchmark interest rate by a quarter percentage point to 7.75% Friday, warning that the rate of inflation may exceed its previous forecast. "The recent inflation dynamic is worrying," Banco de Mexico's five-member board said in a statement. "The balance of risks for inflation has worsened." […]

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