All Posts Tagged With: "Rbs"
Fear of Bank Failures Mean No Fed Rate Hikes
Claims that the worst of the financial crisis is over have been rubbished by ex-IMF Chief Economist , who yesterday warned that a major U.S. bank is likely to collapse within months.
Money Morning’s William Patalon III says dire warnings like this are becoming more frequent. And the slump in shares for Fannie Mae (FNM) and Freddie Mac (FRE) this week is generating more fear among investors.
William says the financial meltdown will keep the Fed from raising interest rates anytime soon. But at a time when inflation is accelerating, this will create more problems down the line…
Dollar Surges vs. Euro- Poor Outlook for European Economy
In currency news, the dollar continued its gains against the euro. Late Thursday, the euro was trading at $1.5413 vs. $1.5473 on Wednesday.
And Then There’s This…Thursday, August 7th, 2008
Both gold and silver had smallish rallies starting with the open of Globex trading in the Far East on Wednesday. However, all was for naught, because part of the price gains were sold off on the Comex open…and the rest once London had closed for the day.
Turbulent Credit Markets and Inflation Undermine Attempts by Paulson and Bernanke to Bolster Investor Confidence
Both U.S. Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben S. Bernanke were called to the carpet yesterday (Tuesday) to explain to Congress how continued turbulence in U.S. credit markets will affect the economy in coming months.
A ‘Systematic Crash’ in US Banking Now a Distinct Possibility
Editor’s Note: John Williams at ShadowStats.com warns that major foreign dollar holders could be about to dump the dollar. Meanwhile, a systematic crash in the threadbare US banking system is a distinct possibility thanks to the $391 billion in losses already suffered by US banks as a result of mortgage-related writedowns. All this, says The Mogambo Guru, means good news for gold and silver and a potential meltdown for US stocks, bonds and, of course, the dollar…
ECB’s Tough Stance on Inflation Hurts European Stocks
European stocks were gutted yesterday (Thursday) as banks took heavy losses in the face of more hawkish inflation comments from European Central Bank (ECB) President Jean-Claude Trichet that put pressure on already struggling financials.
The Dow Jones Stoxx 600 closed down 2.6% to 288.48, the worst finish for the Eurozone index since October 2005.
The FTSEurofirst 300 had a 2.5% drop, to close at 1,197.02 points, its largest one-day percentage drop since mid-March, Reuters reported.
Barclays To Raise $8.9 Billion With Help From Sovereign Wealth Funds
Starving for capital and hell-bent on retaining its handsome dividend, Barclays PLC (ADR: BCS) plans to raise $8.9 billion (4.5 billion pounds) by selling shares to investment banks and sovereign wealth funds around the world.
As much as 1.58 million shares will be sold to existing investors China Investment Bank and Singapore’s Temasek Holdings Pte. Ltd., as well as new investors Japan’s Sumitomo Mitsui Banking Corp., Qatar Investment Authority and Challenger - a fund that represents “the beneficial interests” of Qatar’s royal family.
Fed Holds Rates Steady, Keeps Options Open
Citing the risk of high inflation, the U.S. Federal Reserve voted to hold the Federal Funds rate steady at 2.0% yesterday (Wednesday).
“Although downside risks to growth remain, they appear to have diminished somewhat, and the upside risks to inflation and inflation expectations have increased,” the accompanying Federal Open Market Committee (FOMC) statement read.
How Likely Is a Fed Rate Hike?
The Fed’s policy meeting looms large today. And it looks likely that, with the inflation cat out of the bag, that the feds will hold off on more rate cuts.
In fact, every one of the 101 economists surveyed by Bloomberg said that they thought the Fed would leave rates unchanged.
Money Morning’s Jennifer Yousfi examines why the likelihood of further rate cuts has fallen in recent days…
Moody’s Downgrades Renew Financial Concerns
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 of Moody’s Corp. (MCO), downgraded MBIA to A2 from Aaa, and Ambac from Aaa to Aa. The downgrade caused MBIA shares to shed more than 13% of their value, with an 86-cent decline to close at $5.59 on Friday. Ambac shares fared a bit better, gaining 2 cents to close at $2.05.
Moody’s downgrades follow similar reductions from Standard & Poor’s and Fitch Ratings Inc.
Latest News
- Global Investing Roundups Thursday, August 28th, 20083:16pm CDT
- Dow’s (DJI) Earnings Slump Will Lead to More Inflationary Policies3:10pm CDT
- Chrysler Considers Sale of Gas-Guzzling Viper1:10pm CDT
- Look Deeper Into Housing Numbers And You Will See A Different Picture1:04pm CDT
- Bank Failures Could Mean 79% Gains on XLF December 20 Puts9:32am CDT
- Vangard Wellington (VLEX) Is a Great Bear Market Play7:29am CDT
- Why AIG (AIG) Is a Bargain and Ford (F) Is Not6:36am CDT
- Resource Stock Roundup Wednesday August 27, 20084:24pm CDT
- Base Metals Plummet, Weakness in Europe Suggests Recession is Spreading2:58pm CDT
- Dollar Strengthens, Weak German Data Send Euro Lower2:47pm CDT
- Crude Rises, threat of Hurricane Gustav to Gulf Facilities Drives Market2:41pm CDT
- Gold Erases Big Early Losses, Posts Small Gain2:20pm CDT
- Fed Signals Rate Hike for Next Move, But Timing Uncertain12:24pm CDT
- 2 ETFs and 4 Mining Stocks to Profit from $1,500 Gold11:34am CDT
- Byron King Says Commodities in a Short-Term Correction9:55am CDT
- Global Investing Roundups Wednesday, August 27th, 20089:53am CDT
- Crude Oil Up to $117 on Hurricane Fears7:44am CDT
- FDIC May Borrow Money from Treasury to Cover Bank Failures7:17am CDT
- Buy Fannie and Freddie Debt Now at Record Yield Spreads7:09am CDT