From Staff Reports U.S. stocks experienced their biggest rally in five years yesterday (Wednesday), as browbeaten investors seized on Federal Reserve Vice Chairman David Kohn's suggestion that another rate cut could be in the offing. The Dow Jones Industrial Average soared 331 points, or 2.56%, to close at 13,289.45 yesterday. Combined with a 213-point rally […]
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U.S. Economy
Three Ways to Profit Safely and Avoid the Money Market Fund Meltdown
By Martin Hutchinson Contributing Editor Last week, a $5 billion money market fund run by General Electric Co. (GE), the GEAM Cash Trust Enhanced Trust, offered its non-GE investors a new price of 96 cents on the dollar – and encouraged them to cash out. This should have been bigger news than it was [Although […]
Citigroup’s CEO Prince Opts to Retire; Robert Rubin Steps in as Chairman
From Staff Reports The leadership crisis at Citigroup Inc. (C) finally reached climax proportions late yesterday (Sunday) after the bank announced that embattled Chief Executive Officer Charles O. "Chuck" Prince III would retire. Former Treasury Secretary Robert E. Rubin – chairman of the executive committee and a member of the board of directors – will […]
U.S. Economic Growth Accelerates in Turbulent Third Quarter
By Jason Simpkins Associate Editor A report from the Commerce Department Wednesday showed the U.S. economy is holding up well against the housing slump and credit crunch. The economy expanded by 3.9% in the third quarter, which included a period when mortgage and borrowing costs were at six-year highs. Analysts had only expected a growth […]
U.S. Tops List of World's Most Competitive Economies
By Mike Caggeso Associate Editor The United States regained the top spot as the world's most competitive economy, moving from sixth place to oust Switzerland, according to an extensive and influential survey by the World Economic Forum. Rounding out the top ten: Switzerland took second, followed by Denmark, Sweden, Germany, Finland, Singapore, Japan, United Kingdom […]
O'Neal Finally Out at Merrill Lynch
By Jason SimpkinsAnd William Patalon IIIMoney Morning Editors Just days after reporting the biggest quarterly loss in its history, Merrill Lynch & Co Inc. (MER) yesterday (Tuesday) forced out Chairman and Chief Executive E. Stanley "Stan" O'Neal, ending days of speculation about the embattled executive's fate. The New York-based Merrill has, in recent weeks, […]
Global Investing Roundup
UBS Takes Credit Hit; Commodity Prices Dampen China Earnings; Bancolumbia Income Up 45%; HSBC Sells Credit Cards; Morgan Stanley Buys Japanese Beer… Swiss banking giant UBS AG (UBS) said yesterday (Tuesday) that it experienced a third-quarter net loss of $712 million, due in large part to difficulties in the U.S. mortgage securities markets. Most of […]
DP World's IPO May Trigger Billions in Investments of State-Controlled Companies
By Mike Caggeso Associate Editor After years of amassing a diverse portfolio, Dubai's state-controlled holding company, Dubai World, is planning a Nov. 4 initial public offering of one of its subsidiaries, DP World, the world's fourth-largest port operator. The IPO would sell 20% of DP World's equity and list on the Dubai International Financial Exchange, […]
Why This "Bernanke Put" Could Make for the Scariest Halloween Ever
By Keith Fitz-GeraldContributing Editor The markets are clearly counting on the "Bernanke Put," which is how market insiders refer to the Federal Funds rate cut nearly everyone is hoping for today (Wednesday). I have to say that I'm dumbfounded. I simply can't understand why investors believe that another rate cut will somehow bail out the […]
Could Goldman Sachs Explode? How to Dodge the Ongoing Mortgage Mess
By Martin Hutchinson Director of Global Investing Research The $8.4 billion write-down announced by Merrill Lynch & Co. Inc. (MER) last week was just the latest in a series of similar revelations by Bank of America Corp. (BAC), Citigroup Inc. (C), The Bear Stearns Cos. (BSC) and Lehman Brothers Holdings Inc. (LEH). And it underscores […]