tag:blogger.com,1999:blog-35521280083817938352011-11-27T15:22:11.616-08:00"When Americans sneeze,the whole world catches cold". A more pronounced correction in the US economy is likely to have a repercussion on the rest of the world. Albeit the fact that the global economy has come to stand on stronger structural pillars, the growth trajectory is still highly dependent on the US economy.<br/> This blog brings in all economical facts under one umbrella. This is where you need to be in, if you are a short term or a trader in derivatives market.Srivatsanhttp://www.blogger.com/profile/04730377166213941197noreply@blogger.comBlogger2481100tag:blogger.com,1999:blog-3552128008381793835.post-78390272748647913512008-04-18T10:03:00.001-07:002008-04-18T10:06:01.183-07:00

U.S. stocks rose for a fourth day, poised for the best week since February, after companies from Citigroup Inc. to Google Inc. to Caterpillar Inc. reported results that exceeded analysts' estimates.The market, battered last week by General Electric Co.'s disappointing results, rallied today after Citigroup's loss was less than the most pessimistic projections and profits at Google and Caterpillar

Srivatsanhttp://www.blogger.com/profile/04730377166213941197noreply@blogger.com4tag:blogger.com,1999:blog-3552128008381793835.post-10854301666550401132008-04-16T10:55:00.000-07:002008-04-16T10:57:08.467-07:00

Google is sitting squarely in a troubling three-month slowing trend, and only some deft moves can spare the search giant from an apparent first-quarter shortfall.ComScore numbers once again confirmed that people are searching less and clicking on advertisements at a much slower rate as the economy tanks and consumer spending pulls back. In March, Google’s paid clicks grew 2.7% over year-ago

Srivatsanhttp://www.blogger.com/profile/04730377166213941197noreply@blogger.com0tag:blogger.com,1999:blog-3552128008381793835.post-90714350047151732772008-04-16T10:47:00.000-07:002008-04-16T10:49:39.054-07:00

JPMorgan Chase & Co., the third- biggest U.S. bank, said the credit-market crisis is almost over after it reported a 50 percent drop in first-quarter profit on $5.1 billion of writedowns and provisions.JPMorgan rose as much as 5.4 percent in New York trading as the losses from home-equity loans, financing for leveraged buyouts and subprime mortgages were smaller than analysts predicted and

Srivatsanhttp://www.blogger.com/profile/04730377166213941197noreply@blogger.com0tag:blogger.com,1999:blog-3552128008381793835.post-44318033829638721752008-04-15T10:21:00.000-07:002008-04-15T10:22:30.194-07:00

Richard Fuld, chief executive officer of Lehman Brothers Holdings Inc., told shareholders the worst is behind us in the credit-market contraction that has cost the biggest banks and brokerages $245 billion so far.Fuld, speaking at the annual shareholders meeting of his New York-based firm, said the current environment remains challenging.The comments echo those of Lloyd Blankfein, chief executive

Srivatsanhttp://www.blogger.com/profile/04730377166213941197noreply@blogger.com0tag:blogger.com,1999:blog-3552128008381793835.post-85808703139124466102008-04-15T10:18:00.000-07:002008-04-15T10:20:06.178-07:00

Crude oil and gasoline rose to records as investors purchased commodities because their returns have outpaced stocks, bonds and other financial instruments.Oil climbed to $113.93 a barrel in New York, the highest since futures began trading in 1983. Rising global demand for raw materials and a weakening dollar have led to record prices this year for commodities including corn, rice and gold.

Srivatsanhttp://www.blogger.com/profile/04730377166213941197noreply@blogger.com0tag:blogger.com,1999:blog-3552128008381793835.post-24728816962242554512008-04-11T21:16:00.000-07:002008-04-11T21:20:05.602-07:00

U.S. stocks tumbled the most in three weeks after General Electric Co. stunned investors by reporting a decline in profit and consumer confidence fell to the lowest level since the early days of Ronald Reagan's presidency.GE, the world's biggest maker of power-plant turbines, jet engines and locomotives, dropped the most in 20 years after first-quarter earnings slumped 12 percent because of

Srivatsanhttp://www.blogger.com/profile/04730377166213941197noreply@blogger.com0tag:blogger.com,1999:blog-3552128008381793835.post-59327892179282101022008-04-09T18:19:00.000-07:002008-04-09T18:28:29.397-07:00

Oil was little changed in New York after touching a record $112.21 a barrel yesterday following an unexpected decline in U.S. crude supplies.The 3.1 million-barrel drop in crude-oil stockpiles reported by the Energy Department sent the price up as much as 3.4 percent yesterday. Gasoline futures jumped as much as 2.6 percent to their highest ever. At the pump, U.S. consumers are paying a record

Srivatsanhttp://www.blogger.com/profile/04730377166213941197noreply@blogger.com1tag:blogger.com,1999:blog-3552128008381793835.post-26600239002146810212008-04-09T18:17:00.000-07:002008-04-09T18:19:46.618-07:00

Japan's stocks fell after crude oil surged to a record and Wall Street firms reported owning more securities that are difficult to value, renewing concern financial companies will increase writedowns.Sumitomo Trust & Banking Co., Japan's fifth-largest listed bank, slipped 1.6 percent, while Daiwa Securities Group Inc., the nation's second-largest brokerage, fell 1.9 percent.There's growing

Srivatsanhttp://www.blogger.com/profile/04730377166213941197noreply@blogger.com0tag:blogger.com,1999:blog-3552128008381793835.post-53904325619696123762008-04-08T19:29:00.000-07:002008-04-08T19:34:39.997-07:00

Citigroup Inc. is in talks to sell $12 billion of loans at a loss to Apollo Management LP, Blackstone Group LP and TPG Inc. as part of an effort to shrink the bank's balance sheet, a person briefed on the matter said.A sale to the private equity firms would shield the bank from further declines in the value of the debt, said the person, who declined to be identified because the negotiations are

Srivatsanhttp://www.blogger.com/profile/04730377166213941197noreply@blogger.com0tag:blogger.com,1999:blog-3552128008381793835.post-43535364306300739912008-04-07T18:52:00.000-07:002008-04-07T18:53:57.299-07:00

Former Federal Reserve Chairman Alan Greenspan said the current credit crisis is the worst in at least 50 years.The current credit crisis is the most wrenching in the last half century and possibly more, Greenspan told a conference in Tokyo today via satellite from Washington.Greenspan's remarks echo the assessments of economists including those at the International Monetary Fund, and may add to

Srivatsanhttp://www.blogger.com/profile/04730377166213941197noreply@blogger.com0tag:blogger.com,1999:blog-3552128008381793835.post-49023030440200908862008-04-07T16:43:00.000-07:002008-04-07T16:46:32.865-07:00

Stocks ended mixed Monday, as investors welcomed news that Washington Mutual could see a $5 billion investment, but showed caution ahead of the quarterly earnings period, due to get underway after the close.The Dow Jones industrial average and the broader Standard & Poor's 500 index both gained a few points. The Nasdaq composite lost 0.3%.The major gauges struggled higher through the morning as

Srivatsanhttp://www.blogger.com/profile/04730377166213941197noreply@blogger.com0tag:blogger.com,1999:blog-3552128008381793835.post-9438208583555848932008-04-06T18:03:00.000-07:002008-04-06T18:04:19.407-07:00

Asian stocks fell for a second day, led by banks on speculation profits will be eroded by losses in subprime mortgage-related investments.Mitsubishi UFJ Financial Group Inc. dropped after the Nikkei English News said Japan's six major banks may report a 40 percent drop in combined profit. Australia & New Zealand Banking Group Ltd. declined after saying it expects to set aside A$975 million ($898

Srivatsanhttp://www.blogger.com/profile/04730377166213941197noreply@blogger.com0tag:blogger.com,1999:blog-3552128008381793835.post-40015876553704117092008-04-05T17:22:00.000-07:002008-04-05T17:24:03.083-07:00

The jump in March bankruptcy filings is another indication the U.S. economy is in recession, led by states where the housing boom turned to bust.The more than 90,000 bankruptcy filings in March were the highest since insolvency laws became more restrictive in October 2005, according to statistics compiled from court records by Jupiter eSources LLC. At a daily rate, filings in March were 30

Srivatsanhttp://www.blogger.com/profile/04730377166213941197noreply@blogger.com0tag:blogger.com,1999:blog-3552128008381793835.post-76011508140283875242008-04-04T15:12:00.000-07:002008-04-04T15:13:48.893-07:00

Yahoo shares fell 6% in after-market trading Friday after Reuters reported Microsoft is “evaluating” its $42 billion offer for the Internet company. The news agency cited a person familiar with the matter. The comments, which suggest Microsoft is considering walking away should Yahoo fail to agree to terms, come on the heels of reports that executives at the two tech titans met this week but

Srivatsanhttp://www.blogger.com/profile/04730377166213941197noreply@blogger.com0tag:blogger.com,1999:blog-3552128008381793835.post-54570522110025219832008-04-04T15:10:00.000-07:002008-04-04T15:11:24.283-07:00

Employers in the U.S. cut the most workers in five years last month, signaling that the economic contraction is deepening and that the Federal Reserve will continue to lower interest rates.Payrolls shrank by 80,000, more than forecast and the third monthly decline, the Labor Department said today in Washington. The jobless rate rose to 5.1 percent, the highest level since September 2005, from 4.8

Srivatsanhttp://www.blogger.com/profile/04730377166213941197noreply@blogger.com0tag:blogger.com,1999:blog-3552128008381793835.post-170827161085242172008-04-02T18:54:00.000-07:002008-04-02T18:57:04.379-07:00

Federal Reserve Chairman Ben S. Bernanke acknowledged for the first time that a U.S. recession is possible because homebuilding, employment and consumer spending will deteriorate.It now appears likely that real gross domestic product will not grow much, if at all, over the first half of 2008 and could even contract slightly, Bernanke told Congress's Joint Economic Committee today. He also said

Srivatsanhttp://www.blogger.com/profile/04730377166213941197noreply@blogger.com0tag:blogger.com,1999:blog-3552128008381793835.post-33666783124917718482008-03-31T17:33:00.000-07:002008-03-31T17:34:49.970-07:00

Dollar bulls are in retreat after the currency's biggest quarterly drop against the euro since 2004 and the largest slump in almost a decade versus the yen.The dollar will likely gain 1.6 percent to $1.55 per euro and remain little changed near 100 yen by the end of June, according to the median estimate of 40 analysts and economists surveyed by Bloomberg. At the start of 2008, they expected the

Srivatsanhttp://www.blogger.com/profile/04730377166213941197noreply@blogger.com0tag:blogger.com,1999:blog-3552128008381793835.post-59657794803239976382008-03-30T05:50:00.000-07:002008-03-30T05:52:23.215-07:00

Delta Air Lines Inc., Continental Airlines Inc. and Northwest Airlines Corp. began flights into London Heathrow airport today as a new Open Skies treaty expands trans-Atlantic air travel.The European Union-U.S. accord ends a lock on flights between the U.S. and Heathrow for British Airways Plc, Virgin Atlantic Airways Ltd., United Air Lines Inc. and American Airlines under a 1977 agreement. The

Srivatsanhttp://www.blogger.com/profile/04730377166213941197noreply@blogger.com0tag:blogger.com,1999:blog-3552128008381793835.post-9313068415042243842008-03-24T16:16:00.000-07:002008-03-24T16:18:07.667-07:00

Japan's Nikkei 225 Stock Average futures advanced after sales of existing homes in the U.S. unexpectedly rose, boosting confidence consumption in the biggest market for Japanese manufactures will weather an economic slowdown.U.S.-traded receipts of Canon Inc., the world's biggest digital-camera maker, climbed 1.8 percent from the closing share price in Tokyo yesterday. Komatsu Ltd., the world's

Srivatsanhttp://www.blogger.com/profile/04730377166213941197noreply@blogger.com0tag:blogger.com,1999:blog-3552128008381793835.post-74425354846205954682008-03-24T16:14:00.000-07:002008-03-24T16:16:29.678-07:00

U.S. stocks rallied to the highest level this month as JPMorgan Chase & Co.'s increased bid for Bear Stearns Cos. and a gain in home sales boosted speculation the economy will recover from $200 billion in credit losses.Bear Stearns, which almost collapsed before the Federal Reserve helped broker a takeover, nearly doubled after JPMorgan raised its offer to about $10 a share from $2.52. Tiffany &

Srivatsanhttp://www.blogger.com/profile/04730377166213941197noreply@blogger.com0tag:blogger.com,1999:blog-3552128008381793835.post-78767922657348932442008-03-20T18:24:00.000-07:002008-03-20T18:27:24.172-07:00

Citigroup Inc. will cut 2,000 more trading and investment-banking jobs as the collapse of the subprime mortgage market puts the biggest U.S. bank on track for its second-straight quarterly loss.The reductions are in addition to about 4,000 disclosed in January, a person familiar with the plan said. They add up to about 10 percent of the staff in Citigroup's securities division, said the person,

Srivatsanhttp://www.blogger.com/profile/04730377166213941197noreply@blogger.com0tag:blogger.com,1999:blog-3552128008381793835.post-24965230899120787642008-03-20T18:20:00.000-07:002008-03-20T18:24:09.308-07:00

Commodities plunged, capping the biggest weekly drop in five decades, on speculation that slower global growth will curb demand for energy, metals and grains.The Reuters/Jefferies CRB Index of 19 commodities tumbled 8.3 percent this week, marking the steepest drop since at least 1956. After reaching records this week, gold plummeted as much as $129 an ounce and crude oil tumbled more than $13 a

Srivatsanhttp://www.blogger.com/profile/04730377166213941197noreply@blogger.com0tag:blogger.com,1999:blog-3552128008381793835.post-77946617006513659472008-03-18T18:10:00.000-07:002008-03-18T21:20:46.378-07:00

U.S. stocks rallied the most in five years as earnings from Lehman Brothers Holdings Inc. and Goldman Sachs Group Inc. allayed concern investment banks are collapsing and the Federal Reserve cut its benchmark rate.Lehman, the fourth-biggest securities firm, had its steepest advance ever and helped lead financial stocks to their biggest gain since 2000. Goldman, the largest securities firm,

Srivatsanhttp://www.blogger.com/profile/04730377166213941197noreply@blogger.com0tag:blogger.com,1999:blog-3552128008381793835.post-73417308296988345382008-03-16T18:10:00.000-07:002008-03-16T18:32:01.185-07:00

The dollar fell below 97 yen for the first time in 12 years after the Federal Reserve cut its discount rate and financed a bailout of Bear Stearns Cos. by JPMorgan Chase & Co.The dollar also dropped to a record low against the euro and the Swiss franc after the Daily Telegraph said yesterday Goldman Sachs Group Inc. will reveal $3 billion in writedowns when it releases quarterly earnings tomorrow

Srivatsanhttp://www.blogger.com/profile/04730377166213941197noreply@blogger.com0tag:blogger.com,1999:blog-3552128008381793835.post-16114672387003875122008-03-16T18:08:00.000-07:002008-03-16T18:10:00.967-07:00

JPMorgan completes deal to acquire foundering Wall Street brokerage and stave off wider chaos in financial markets.JPMorgan Chase & Co. said Sunday that it would acquire troubled Wall Street firm Bear Stearns amid deepening fears that Bear's demise could have sent shockwaves across the already shaky financial markets.The deal values Bear Stearns at $236 million, or just $2 a share - shares had

Srivatsanhttp://www.blogger.com/profile/04730377166213941197noreply@blogger.com0tag:blogger.com,1999:blog-3552128008381793835.post-21411843623635054292008-03-16T15:52:00.000-07:002008-03-16T15:53:49.113-07:00

JPMorgan nearing completion of deal to acquire foundering Wall Street brokerage Bear Stearns, Wall Street Journal reports.JPMorgan Chase & Co. was reportedly close Sunday to acquiring troubled Wall Street firm Bear Stearns as fears deepened that Bear's demise could send shockwaves across the already shaky financial markets.The Wall Street Journal cited unnamed sources who said the parties were

Srivatsanhttp://www.blogger.com/profile/04730377166213941197noreply@blogger.com0tag:blogger.com,1999:blog-3552128008381793835.post-71751991873056436092008-03-16T15:42:00.000-07:002008-03-16T15:47:27.881-07:00

The dollar fell to a 12-year low against the yen on speculation more banks will report credit- market losses after JPMorgan Chase & Co. and the New York Federal Reserve bailed out Bear Stearns Cos.The U.S. currency also traded near a record low against the euro as traders speculated the Fed will slash interest rates one percentage point this week to avert a recession. The dollar set record lows

Srivatsanhttp://www.blogger.com/profile/04730377166213941197noreply@blogger.com0tag:blogger.com,1999:blog-3552128008381793835.post-35239135351424621122008-03-15T07:10:00.000-07:002008-03-15T07:21:30.962-07:00

Bear Stearns Cos.'s 85 years as an independent Wall Street firm may be coming to an end as JPMorgan Chase & Co. considers buying the crippled company.Teetering on the brink of collapse from a lack of cash, New York-based Bear Stearns got emergency funding yesterday from the Federal Reserve and JPMorgan in the largest government bailout of a U.S. securities firm. The move failed to avert a crisis

Srivatsanhttp://www.blogger.com/profile/04730377166213941197noreply@blogger.com0tag:blogger.com,1999:blog-3552128008381793835.post-15784018080578480112008-03-13T22:45:00.000-07:002008-03-13T22:46:54.217-07:00

The yen rose against the dollar, approaching a 12-year high as Asian stocks fell, prompting investors to pare investments in higher-yielding currencies funded with loans from Japan.The currency advanced the most against the Australian and New Zealand dollars, favorites of the so-called carry trade. Bear Stearns Cos. yesterday fell to a five-year low on concern the company lacks sufficient access

Srivatsanhttp://www.blogger.com/profile/04730377166213941197noreply@blogger.com0tag:blogger.com,1999:blog-3552128008381793835.post-28884261890269215772008-03-12T20:52:00.000-07:002008-03-12T20:53:24.371-07:00

Asian stocks fell for the first time in three days, on concern demand for the region's exports will slow as crude oil above $110 a barrel threatens to dent consumer spending worldwide.Toyota Motor Corp., which gets 92 percent of its sales outside of Asia, dropped in Tokyo as the dollar slumped to the lowest against the yen since 1995. Mitsubishi UFJ Financial Group Inc. led declines among banks.

Srivatsanhttp://www.blogger.com/profile/04730377166213941197noreply@blogger.com0tag:blogger.com,1999:blog-3552128008381793835.post-77235015376386130862008-03-12T19:17:00.000-07:002008-03-12T19:19:09.135-07:00

The dollar fell to the lowest since 1995 against the yen on speculation U.S. retail sales growth slowed, adding to evidence the economy is entering a recession.The currency also slid to a record low against the euro as brokerages including ABN Amro Holdings NV and Westpac Banking Corp. said Arab nations in the Middle East may consider ending their fixed exchange rates and selling U.S. assets. The

Srivatsanhttp://www.blogger.com/profile/04730377166213941197noreply@blogger.com0tag:blogger.com,1999:blog-3552128008381793835.post-40699169861127720092008-03-12T03:44:00.000-07:002008-03-12T03:47:08.502-07:00

U.S. stocks rallied the most in five years after the Federal Reserve said it will pump $200 billion into the financial system to shore up banks battered by mortgage- related losses.Citigroup Inc., Bank of America Corp. and Fannie Mae led the Standard & Poor's 500 Financials Index to its biggest gain in eight years on expectations the Fed's move will spur lending. Washington Mutual Inc. climbed

Srivatsanhttp://www.blogger.com/profile/04730377166213941197noreply@blogger.com0tag:blogger.com,1999:blog-3552128008381793835.post-43687254489212837412008-03-10T17:46:00.000-07:002008-03-10T17:50:13.606-07:00

U.S. stocks fell for a third day to the lowest level since 2006, led by a plunge in financial shares, on speculation earnings estimates will prove to be too high as the economy slows and credit losses spread.The decline in banks steepened as Bear Stearns Cos. tumbled the most since 1987 on concern the brokerage was facing financial difficulties, even after former Chief Executive Officer Alan Ace

Srivatsanhttp://www.blogger.com/profile/04730377166213941197noreply@blogger.com0tag:blogger.com,1999:blog-3552128008381793835.post-66128490560932534762008-03-10T17:44:00.000-07:002008-03-10T17:45:58.855-07:00

Lehman Brothers Holdings Inc., the largest underwriter of mortgage-backed bonds, is eliminating 5 percent of its workforce as credit markets remain frozen and the U.S. economy slows, a person briefed on the plan said.The cuts will affect all divisions and regions, according to the person, who declined to be identified because the New York-based firm hasn't announced the reductions. Based on

Srivatsanhttp://www.blogger.com/profile/04730377166213941197noreply@blogger.com0tag:blogger.com,1999:blog-3552128008381793835.post-62687415947097906652008-03-09T19:50:00.000-07:002008-03-09T19:52:13.965-07:00

Asian stocks fell to a seven-week low, led by mining companies and automakers, after unexpected job losses in the U.S. last month heightened concern the world's largest economy is in recession.Toyota Motor Corp., Japan's largest automaker, retreated after the yen climbed to an eight-year high on speculation the U.S. Federal Reserve will further cut interest rates. BHP Billiton Ltd., the world's

Srivatsanhttp://www.blogger.com/profile/04730377166213941197noreply@blogger.com0tag:blogger.com,1999:blog-3552128008381793835.post-22279073269907249932008-03-09T13:14:00.000-07:002008-03-09T13:17:46.087-07:00

The average price of regular gasoline at the pump in the U.S. rose 9 cents in the past two weeks to a record $3.20 a gallon, according to oil industry analyst Trilby Lundberg's survey of 7,000 filling stations nationwide.Gasoline futures rose to $2.6943 a gallon on the New York Mercantile Exchange on March 7, the highest closing price for a contract closest to delivery since the reformulated fuel

Srivatsanhttp://www.blogger.com/profile/04730377166213941197noreply@blogger.com0tag:blogger.com,1999:blog-3552128008381793835.post-10041848287516070162008-03-07T14:02:00.000-08:002008-03-07T14:05:28.520-08:00

The investment bank's chief U.S. economist says the country is in a 'short' recession that started in January.The U.S. economy is two months into a recession, according to a research note released Friday by JPMorgan Chase & Co.JPMorgan anticipates the current recession remaining short, unless there is an "abrupt change in corporate behavior."In a short recession, the bottom occurs at about five

Srivatsanhttp://www.blogger.com/profile/04730377166213941197noreply@blogger.com0tag:blogger.com,1999:blog-3552128008381793835.post-10298800603856813862008-03-07T12:59:00.000-08:002008-03-07T13:09:35.662-08:00

Economists, once so dismissive of pricey crude's economic impact, say it's going to hurt.Five months ago many economists said high oil prices wouldn't hurt the economy - now they're eating their words.Back in October, when oil prices were near $90 a barrel and the economy was still humming along economists said high oil prices shouldn't cut into economic growth. The economy used oil more

Srivatsanhttp://www.blogger.com/profile/04730377166213941197noreply@blogger.com0tag:blogger.com,1999:blog-3552128008381793835.post-56596923283101281582008-03-07T12:53:00.000-08:002008-03-07T12:57:25.934-08:00

U.S. consumer borrowing rose in January as Americans doubled their credit-card debt from a month earlier, Federal Reserve statistics showed.Consumer credit increased by $6.9 billion for the month to $2.52 trillion, the Fed said today in Washington. In December, credit gained $3.7 billion, less than a previously reported increase of $4.5 billion. The report doesn't cover borrowing secured by real

Srivatsanhttp://www.blogger.com/profile/04730377166213941197noreply@blogger.com0tag:blogger.com,1999:blog-3552128008381793835.post-13866004163684915622008-03-07T12:47:00.000-08:002008-03-07T12:53:50.768-08:00

The Federal Reserve moved to add as much as $200 billion to the banking system over the next month to offset a deepening credit crisis that may have already pushed the U.S. economy into a recession.The central bank raised to $50 billion each from $30 billion the amount intended for auctions of funds on March 10 and March 24. The Fed also said in a statement in Washington today that it will make

Srivatsanhttp://www.blogger.com/profile/04730377166213941197noreply@blogger.com0tag:blogger.com,1999:blog-3552128008381793835.post-23669557099559044782008-03-06T15:28:00.000-08:002008-03-06T15:46:30.076-08:00

Riding the surging price of Berkshire Hathaway stock, legendary investor Warren Buffett’s fortune swelled to $62 billion, up from $10 billion a year ago, making him the world’s richest person, according to Forbes’ annual list of billionaires. He has overtaken software czar Bill Gates ($58 billion) as well as Mexican tycoon Carlos Slim Helu ($60 billion). Gates is up $2 billion from a year ago,

Srivatsanhttp://www.blogger.com/profile/04730377166213941197noreply@blogger.com0tag:blogger.com,1999:blog-3552128008381793835.post-82562968049471399742008-03-06T15:26:00.000-08:002008-03-06T15:28:10.052-08:00

U.S. stocks fell to an 18-month low, led by banks, after home foreclosures climbed to a record and loan defaults by Thornburg Mortgage Inc. and a Carlyle Group bond fund spurred concern that credit losses are deepening.Citigroup Inc., Bank of America Corp. and JPMorgan Chase & Co. led financial shares to the lowest level since May 2003. Retailers J.C. Penney Co. and Gap Inc. fell on sales that

Srivatsanhttp://www.blogger.com/profile/04730377166213941197noreply@blogger.com0tag:blogger.com,1999:blog-3552128008381793835.post-41511860629108113792008-03-05T19:39:00.000-08:002008-03-05T19:40:51.132-08:00

The US has seen an economic slowdown across all regions since January, a US Federal Reserve report says.The Central Bank's so-called Beige Book report said housing, manufacturing and retail activity had all cooled since the start of the year.The report also cited rising materials and energy prices, highlighting the challenge of inflation.The report is seen to indicate overall economic conditions

Srivatsanhttp://www.blogger.com/profile/04730377166213941197noreply@blogger.com0tag:blogger.com,1999:blog-3552128008381793835.post-82088531686031532212008-03-05T19:19:00.000-08:002008-03-05T19:20:57.923-08:00

Crude oil traded near a record $104.95 a barrel in New York after U.S. fuel inventories dropped and OPEC refrained from raising production.The Organization of Petroleum Exporting Countries agreed to maintain output targets at a meeting yesterday in Vienna. U.S. inventories fell for the first time in eight weeks, the Energy Department said.Those factors encouraged buying here in Asia, extending

Srivatsanhttp://www.blogger.com/profile/04730377166213941197noreply@blogger.com0tag:blogger.com,1999:blog-3552128008381793835.post-22423651418832280102008-03-04T19:11:00.000-08:002008-03-04T19:12:16.355-08:00

Asian stocks fell for a fifth day, as crude oil's retreat from a record sent oil companies lower and Japanese steelmakers dropped after the country's capital spending slumped for a third straight quarter.Santos Ltd., Australia's No. 3 oil and gas explorer, led energy shares lower. Nippon Steel Corp., the world's second- biggest steelmaker, dropped in Tokyo on concern the government will have to

Srivatsanhttp://www.blogger.com/profile/04730377166213941197noreply@blogger.com0tag:blogger.com,1999:blog-3552128008381793835.post-44583211310301244112008-03-04T06:32:00.000-08:002008-03-04T19:09:28.633-08:00

U.S. stock-index futures fell after Intel Corp. said lower chip prices will hurt earnings and a Merrill Lynch & Co. analyst predicted Citigroup Inc. may report $18 billion in first-quarter credit writedowns.Intel, the world's largest computer-chip maker, dropped after cutting its profitability forecast because of an industry glut of flash-memory. Citigroup retreated on Merrill's forecast for a

Srivatsanhttp://www.blogger.com/profile/04730377166213941197noreply@blogger.com0tag:blogger.com,1999:blog-3552128008381793835.post-31816868958495744542008-03-04T06:24:00.000-08:002008-03-04T06:31:56.738-08:00

The dollar fell for a sixth straight day against the yen and traded near a record low versus the euro as traders increased bets that the Federal Reserve will lower interest rates by 0.75 percentage point this month.The U.S. Dollar Index, which compares the currency with those of six trading partners, dropped as futures showed a 74 percent likelihood the Fed will reduce rates to 2.25 percent. Last

Srivatsanhttp://www.blogger.com/profile/04730377166213941197noreply@blogger.com0tag:blogger.com,1999:blog-3552128008381793835.post-64633539312000332342008-03-01T10:28:00.000-08:002008-03-01T10:29:58.473-08:00

He chides investors who expect their portfolios to see double-digit growth, and says Berkshire's success has been so great that it is unlikely to see "outsized gains" in the future.Berkshire Hathaway had another excellent year in 2007, posting an 11% gain in net worth, CEO Warren Buffett said in Friday's annual report to shareholders. Berkshire has grown its per-share book value by a remarkable

Srivatsanhttp://www.blogger.com/profile/04730377166213941197noreply@blogger.com0tag:blogger.com,1999:blog-3552128008381793835.post-52061948576822078562008-02-28T19:07:00.000-08:002008-02-28T19:28:28.015-08:00

The insurer says 'significant, rapid declines' in the value of mortgage backed investments contributed to the loss.American International Group says it swung to a hefty loss for the fourth quarter as bad credit hurt the insurer's investment portfolio.The New York-based insurer said Thursday it posted a loss of $5.29 billion, or $2.08 per share, in the fourth quarter, compared with profit of $3.44

Srivatsanhttp://www.blogger.com/profile/04730377166213941197noreply@blogger.com0tag:blogger.com,1999:blog-3552128008381793835.post-33565811848918199062008-02-28T09:04:00.000-08:002008-02-28T09:05:59.845-08:00

U.S. stocks dropped for a second day after the economy grew less than forecast, jobless claims jumped and Federal Reserve Chairman Ben S. Bernanke said some smaller banks will probably collapse.JPMorgan Chase & Co. led financial shares to their first drop in five days after Goldman Sachs Group Inc. and Merrill Lynch & Co. cut their profit estimates. The Standard & Poor's 500 Financials Index

Srivatsanhttp://www.blogger.com/profile/04730377166213941197noreply@blogger.com0tag:blogger.com,1999:blog-3552128008381793835.post-70558808045189409312008-02-27T09:16:00.000-08:002008-02-27T09:17:45.869-08:00

U.S. stocks rose for a fourth day after Federal Reserve Chairman Ben S. Bernanke said policy makers will act quickly to boost growth and regulators allowed Fannie Mae and Freddie Mac to buy more mortgages.Fannie Mae and Freddie Mac, the biggest sources of financing for U.S. home loans, rallied and led the market's rebound after the government removed restrictions on the size of their portfolios.

Srivatsanhttp://www.blogger.com/profile/04730377166213941197noreply@blogger.com0tag:blogger.com,1999:blog-3552128008381793835.post-38185322761726826472008-02-27T09:10:00.000-08:002008-02-27T09:14:53.506-08:00

Federal Reserve Chairman Ben S. Bernanke signaled the U.S. central bank is prepared to lower interest rates again even amid signs of accelerating inflation.The Federal Open Market Committee will be carefully evaluating incoming information bearing on the economic outlook and will act in a timely manner as needed to support growth and to provide adequate insurance against downside risks, Bernanke

Srivatsanhttp://www.blogger.com/profile/04730377166213941197noreply@blogger.com0tag:blogger.com,1999:blog-3552128008381793835.post-71319230079188302662008-02-23T06:08:00.000-08:002008-02-23T06:11:03.007-08:00

Federal Reserve Bank of Dallas President Richard W. Fisher said that the U.S. will probably see slower economic growth rather than a deeper downturn.The most likely scenario is that the U.S. will avoid a prolonged period of negative economic growth, Fisher said during an interview today before a speech in Fort Worth, Texas, without mentioning the term recession. He also said he's hearing

Srivatsanhttp://www.blogger.com/profile/04730377166213941197noreply@blogger.com0tag:blogger.com,1999:blog-3552128008381793835.post-87010616849708029632008-02-23T06:03:00.000-08:002008-02-23T06:06:15.441-08:00

U.S. stocks rallied in the final 30 minutes of trading, helping the market post its second straight weekly gain, as speculation bond insurer Ambac Financial Group Inc. may be rescued overcame concern bank earnings will falter.American International Group Inc. and JPMorgan Chase & Co. led the Dow Jones Industrial Average's 243-point turnaround. Ambac, which guarantees more than $500 billion in

Srivatsanhttp://www.blogger.com/profile/04730377166213941197noreply@blogger.com0tag:blogger.com,1999:blog-3552128008381793835.post-33470938723488256682008-02-23T05:56:00.000-08:002008-02-23T06:02:11.293-08:00

HDFC Bank Ltd., India's third- biggest by market value, agreed to acquire Centurion Bank of Punjab Ltd. in the nation's biggest banking takeover as it seeks to extend its reach and become more competitive.The boards of both banks will meet on Feb. 25 to set the share-swap ratio, and on Feb. 28 to consider the merger, the lenders said in a joint statement in Mumbai today. Centurion is worth $2.6

Srivatsanhttp://www.blogger.com/profile/04730377166213941197noreply@blogger.com0tag:blogger.com,1999:blog-3552128008381793835.post-11383886329030739622008-02-20T06:48:00.000-08:002008-02-20T06:49:52.489-08:00

The cost of protecting corporate bonds from default soared to a record as investors purchased credit-default swaps to hedge against mounting losses in the $2 trillion market for collateralized debt obligations.The market is full of rumors of unwinding of CDOs, and the price action suggests that people believe the rumors, said Peter Duenas-Brckovitch, head of European credit trading at Lehman

Srivatsanhttp://www.blogger.com/profile/04730377166213941197noreply@blogger.com0tag:blogger.com,1999:blog-3552128008381793835.post-42190438640555795332008-02-20T06:46:00.000-08:002008-02-20T06:48:00.279-08:00

Volume of applications dropped more than 22% as most interest rates increased sharply, MBA's weekly survey says.Mortgage application volume tumbled 22.6% during the week ending Feb. 15 as most interest rates moved higher, according to the Mortgage Bankers Association's weekly application survey.The MBA's mortgage application index fell to 822.8 for the week, from 1,063.5 during the previous

Srivatsanhttp://www.blogger.com/profile/04730377166213941197noreply@blogger.com0tag:blogger.com,1999:blog-3552128008381793835.post-2001340451864030882008-02-20T06:44:00.000-08:002008-02-20T06:46:44.544-08:00

Consumer prices in the U.S. rose more than forecast in January, indicating that the faltering economy hasn't alleviated inflation pressures.The 0.4 percent increase in the cost of living matched the gain in December, the Labor Department said today in Washington. Excluding food and energy, prices rose 0.3 percent, after a 0.2 percent climb a month earlier, leading the so-called core rate to the

Srivatsanhttp://www.blogger.com/profile/04730377166213941197noreply@blogger.com0tag:blogger.com,1999:blog-3552128008381793835.post-69755419708379591362008-02-14T08:07:00.000-08:002008-02-14T08:12:20.553-08:00

U.S. Stocks Drop, Led by Banks and Tech Companies; Intel FallsU.S. stocks fell for the first time this week after analysts said Intel Corp. may be hurt by slower computer sales and Federal Reserve Chairman Ben S. Bernanke warned that tighter credit will restrain growth.Intel, the world's largest chipmaker, slumped the most in eight days. Merrill Lynch & Co. and Goldman Sachs Group Inc. led

Srivatsanhttp://www.blogger.com/profile/04730377166213941197noreply@blogger.com0tag:blogger.com,1999:blog-3552128008381793835.post-73691969541641038232008-02-14T08:05:00.000-08:002008-02-14T08:07:16.336-08:00

Treasury secretary and Fed chairman say rate cuts and rebates should keep economy out of downturn.Treasury Secretary Henry Paulson, left, and Fed Chairman Ben Bernanke believe the U.S. will avoid a recession.Federal Reserve Chairman Ben Bernanke and Treasury Secretary Hank Paulson both acknowledged problems in the U.S. economy on Thursday, but both said they believe the nation will avoid falling

Srivatsanhttp://www.blogger.com/profile/04730377166213941197noreply@blogger.com0tag:blogger.com,1999:blog-3552128008381793835.post-7702768798840302052008-02-14T08:01:00.000-08:002008-02-14T08:04:17.223-08:00

Oil up on market gains, supply worries, as Venezuela continues to battle with Exxon Mobil.Oil prices extended their modest rise Thursday, supported by Wall Street's overnight gains and threats to U.S. oil supplies.Wall Street rallied Wednesday after the U.S. Commerce Department said retail sales rose unexpectedly last month. Energy investors often view the equity market as a barometer of economic

Srivatsanhttp://www.blogger.com/profile/04730377166213941197noreply@blogger.com0tag:blogger.com,1999:blog-3552128008381793835.post-55409797727550314842008-02-12T09:34:00.000-08:002008-02-12T09:37:36.199-08:00

American International Group Inc. Chief Executive Officer Martin Sullivan may find his job at stake after an accounting lapse led to a bigger-than-forecast drop in the value of the company's holdings.AIG rebounded in New York trading today after saying losses from so called credit-default swaps will not be material. The company fell the most in two decades yesterday after disclosing the contracts

Srivatsanhttp://www.blogger.com/profile/04730377166213941197noreply@blogger.com0tag:blogger.com,1999:blog-3552128008381793835.post-80753452898240039062008-02-10T03:35:00.000-08:002008-02-10T03:37:23.643-08:00

Yahoo! Inc., the Internet company that has failed to crack Google Inc.'s dominance of Web search, plans to reject a $44.6 billion takeover bid from Microsoft Corp., a person familiar with the situation said.The board spent a week reviewing the $31-per-share unsolicited offer before deciding it was too low, and directors are likely to reject it tomorrow, said the person, who declined to be

Srivatsanhttp://www.blogger.com/profile/04730377166213941197noreply@blogger.com0tag:blogger.com,1999:blog-3552128008381793835.post-85386931516186336162008-02-09T03:05:00.000-08:002008-02-09T03:08:10.165-08:00

The Group of Seven nations said the U.S. economy may slow further and erode global growth, while stopping short of proposing specific measures in response.Downside risks still persist, which include further deterioration of the U.S. residential housing markets, tighter credit conditions and heightened inflation expectations in some countries, a statement by G-7 finance ministers and central

Srivatsanhttp://www.blogger.com/profile/04730377166213941197noreply@blogger.com0tag:blogger.com,1999:blog-3552128008381793835.post-77357409996226015502008-02-07T09:47:00.001-08:002008-02-07T10:11:25.621-08:00

Sales at U.S. retailers languished in January as discounts failed to lure consumers concerned that a recession is coming. Macy's Inc. and Nordstrom Inc. reported declines, while the gain at Wal-Mart Stores Inc. was less than analysts estimated.Sales at stores open at least a year rose 0.5 percent at Wal-Mart as winter storms discouraged shoppers in the Midwest and fewer customers redeemed gift

Srivatsanhttp://www.blogger.com/profile/04730377166213941197noreply@blogger.com0tag:blogger.com,1999:blog-3552128008381793835.post-23683375293370796592008-02-05T10:31:00.000-08:002008-02-05T10:35:49.706-08:00

U.S. stocks tumbled the most in three weeks after service industries fell to the lowest levels since 2001, reinforcing speculation the economy has tipped into a recession.Exxon Mobil Corp., General Electric Co. and AT&T Inc. led declines in New York trading, and all 10 industry groups in the Standard & Poor's 500 Index retreated, after the Institute for Supply Management's index unexpectedly

Srivatsanhttp://www.blogger.com/profile/04730377166213941197noreply@blogger.com0tag:blogger.com,1999:blog-3552128008381793835.post-37809299393449597722008-02-04T09:43:00.000-08:002008-02-04T09:49:26.034-08:00

Microsoft Corp., the world's largest software maker, will probably borrow money for the first time to finance its proposed $44.6 billion takeover of Yahoo! Inc., Chief Financial Officer Chris Liddell said.The company will use available cash and stock to pay part of the $31 a share it has offered for Yahoo, Liddell told analysts today at a conference in New York. Microsoft will raise the rest by

Srivatsanhttp://www.blogger.com/profile/04730377166213941197noreply@blogger.com0tag:blogger.com,1999:blog-3552128008381793835.post-35048069220652159012008-02-04T09:39:00.000-08:002008-02-04T09:41:06.103-08:00

U.S. stocks declined, paring the biggest weekly gain in five years, after analysts advised selling Wells Fargo & Co. and Wachovia Corp. on concern a recession will increase personal defaults and reduce consumer spending.Wells Fargo and Wachovia, the fourth- and fifth-largest U.S. banks, dropped the most in two weeks as Merrill Lynch & Co. told investors they are overpriced. American Express Co.,

Srivatsanhttp://www.blogger.com/profile/04730377166213941197noreply@blogger.com0tag:blogger.com,1999:blog-3552128008381793835.post-32312851634408619542008-02-01T08:33:00.000-08:002008-02-01T08:38:16.819-08:00

The U.S. unexpectedly lost jobs for the first time in more than four years, increasing the odds the economy will fall into a recession and making it likely the Federal Reserve will cut interest rates another half point next month.Payrolls fell by 17,000 in January after an 82,000 gain in December that was larger than initially reported, the Labor Department said today in Washington. None of the

Srivatsanhttp://www.blogger.com/profile/04730377166213941197noreply@blogger.com0tag:blogger.com,1999:blog-3552128008381793835.post-39877611772264172422008-02-01T08:29:00.000-08:002008-02-01T08:32:45.613-08:00

World's largest software maker Microsoft today offered to acquire leading internet firm Yahoo! Inc for about $44.6 billion with an aim to leverage its position in the online services market.Bill Gates-founded Microsoft today said its $31 per share offer values Yahoo! at about $44.6 billion in cash and stock.The takeover bid for Yahoo comes amid a below-expected fourth quarter performance and

Srivatsanhttp://www.blogger.com/profile/04730377166213941197noreply@blogger.com0tag:blogger.com,1999:blog-3552128008381793835.post-26148802052531699952008-01-30T16:51:00.000-08:002008-01-30T16:53:33.093-08:00

The Federal Reserve lowered its benchmark interest rate by half a point to 3 percent, the second cut in nine days, and indicated its willingness to do so again to prevent a U.S. recession.Downside risks to growth remain, the Federal Open Market Committee said in a statement after meeting today in Washington. In a reference to the volatility of the past five months, the Fed added that financial

Srivatsanhttp://www.blogger.com/profile/04730377166213941197noreply@blogger.com0tag:blogger.com,1999:blog-3552128008381793835.post-48745820813348485102008-01-30T07:40:00.001-08:002008-01-30T07:52:29.692-08:00

Gross domestic product slowed to a 0.6% growth rate in the fourth quarter, raising both recession fears and hope for another deep Fed cut.The economy grew at a much slower pace in the last three months of the year, according to a government report Wednesday that came in well below Wall Street expectations.The report raised fears of a recession and hopes for another significant interest rate cut

Srivatsanhttp://www.blogger.com/profile/04730377166213941197noreply@blogger.com0tag:blogger.com,1999:blog-3552128008381793835.post-61319565188796539532008-01-29T21:22:00.000-08:002008-01-29T21:25:56.931-08:00

CEO Jerry Yang says company faces 'headwinds' this year. Struggling search engine plans 1,000 job cuts in February. Stock sinks on weak 2008 sales guidance.Search engine Yahoo announced it would lay off 1,000 employees by mid-February, even as it reported fourth quarter earnings Tuesday that beat expectations.During the company's conference call with analysts, chief executive Jerry Yang warned

Srivatsanhttp://www.blogger.com/profile/04730377166213941197noreply@blogger.com0tag:blogger.com,1999:blog-3552128008381793835.post-76066440048289927752008-01-28T08:42:00.000-08:002008-01-28T08:45:20.690-08:00

The U.S. economy may already be in recession; other countries might not be far behind.Japan, Britain, Spain and Singapore, which together represent about 12 percent of the world economy, are vulnerable as fallout from the U.S. worsens their economic weakness. Even emerging markets, including China, are likely to suffer as exports to the U.S. wane.The result: Global growth may decelerate close to

Srivatsanhttp://www.blogger.com/profile/04730377166213941197noreply@blogger.com0tag:blogger.com,1999:blog-3552128008381793835.post-71770315195861868682008-01-26T08:07:00.000-08:002008-01-26T08:16:55.442-08:00

U.S. stocks dropped for the first time in three days, led by financial companies, on concern banks will be saddled with more credit-market losses and the Federal Reserve won't cut interest rates enough to stimulate growth.JPMorgan Chase & Co. and Citigroup Inc. led banks lower after an analyst said Fortis, Belgium's biggest financial services company, faces additional writedowns from mortgage-

Srivatsanhttp://www.blogger.com/profile/04730377166213941197noreply@blogger.com0tag:blogger.com,1999:blog-3552128008381793835.post-54638067430815694932008-01-22T07:43:00.000-08:002008-01-22T07:48:37.921-08:00

Bank of America Corp. and Wachovia Corp., the second- and fourth-largest U.S. banks, said earnings plummeted after more than a combined $6.9 billion of market writedowns.Bank of America's fourth-quarter profit dropped 95 percent to $268 million, while net income at Wachovia was almost wiped out, plunging 98 percent to $51 million. Bank of America declined 5.5 percent in early New York trading to

Srivatsanhttp://www.blogger.com/profile/04730377166213941197noreply@blogger.com0tag:blogger.com,1999:blog-3552128008381793835.post-21362197855752179332008-01-22T07:31:00.000-08:002008-01-22T07:42:15.332-08:00

The Federal Reserve lowered its benchmark interest rate in an emergency move for the first time since 2001 after stock markets tumbled from Hong Kong to London and the U.S. economy showed increasing signs that it's headed into a recession.The central bank cut the target overnight lending rate to 3.5 percent from 4.25 percent, the Federal Open Market Committee said in a statement in Washington.

Srivatsanhttp://www.blogger.com/profile/04730377166213941197noreply@blogger.com0tag:blogger.com,1999:blog-3552128008381793835.post-41154952275914255652008-01-17T19:02:00.000-08:002008-01-17T19:04:39.689-08:00

The dollar headed for a weekly loss against the yen before a private report that economists say will show U.S. consumer confidence fell to the lowest in more than two years.The U.S. currency may decline for a fourth week against the Swiss franc after Federal Reserve Chairman Ben S. Bernanke said yesterday the bank is ready to take substantive additional action to help the economy, fueling

Srivatsanhttp://www.blogger.com/profile/04730377166213941197noreply@blogger.com0tag:blogger.com,1999:blog-3552128008381793835.post-17145541733810676452008-01-17T10:42:00.000-08:002008-01-17T10:43:34.562-08:00

Merrill Lynch & Co., the biggest U.S. brokerage, reported a record loss after $16.7 billion of writedowns on assets infected by subprime mortgages.The fourth-quarter net loss of $9.83 billion, or $12.01 a share, compared with earnings of $2.35 billion, or $2.41, a year earlier, the New York-based firm said today in a statement. Merrill fell 8 percent in New York trading, the biggest decline since

Srivatsanhttp://www.blogger.com/profile/04730377166213941197noreply@blogger.com0tag:blogger.com,1999:blog-3552128008381793835.post-60253973093698652802008-01-16T08:50:00.000-08:002008-01-16T09:03:05.748-08:00

Sun Microsystems Inc. has agreed to buy open-source software maker MySQL AB for $1 billion, beefing up the server maker's database offerings with a company whose technology is used by some of the world's biggest Web sites.Santa Clara-based Sun, in separate announcements before the market opened, said its second quarter revenue would narrowly exceed Wall Street estimates. It also said profit would

Srivatsanhttp://www.blogger.com/profile/04730377166213941197noreply@blogger.com0tag:blogger.com,1999:blog-3552128008381793835.post-89972108351497935642008-01-16T08:44:00.000-08:002008-01-16T08:50:12.331-08:00

JPMorgan Chase & Co., the third- biggest U.S. bank, said profit dropped 34 percent on subprime- mortgage writedowns and higher provisions for future loan defaults.Fourth-quarter net income declined to $2.97 billion, or 86 cents a share, from $4.53 billion, or $1.26, a year earlier, the New York-based bank said today in a statement. JPMorgan rose as much as 6.8 percent in New York trading as the

Srivatsanhttp://www.blogger.com/profile/04730377166213941197noreply@blogger.com0tag:blogger.com,1999:blog-3552128008381793835.post-13662157707090224402008-01-16T08:40:00.000-08:002008-01-16T08:43:57.494-08:00

Oracle Corp., the world's third- biggest software maker, agreed to buy BEA Systems Inc. for $8.5 billion in cash after a three-month fight, capitulating to the board's demands for a higher price.BEA investors will receive $19.38 a share, 24 percent more than yesterday's close, Oracle said today in a statement. BEA, the maker of software that lets programs share information, rejected an

Srivatsanhttp://www.blogger.com/profile/04730377166213941197noreply@blogger.com0tag:blogger.com,1999:blog-3552128008381793835.post-28523237315859060972008-01-15T07:55:00.000-08:002008-01-15T07:58:09.710-08:00

The U.S. stock market resumed its January swoon after Citigroup Inc. reported a record loss, retail sales unexpectedly dropped and falling oil prices dragged down energy shares.Citigroup, the largest U.S. bank, declined the most since November in New York Stock Exchange trading after cutting its dividend by 41 percent because of rising home-loan defaults. Exxon Mobil Corp., the biggest U.S. oil

Srivatsanhttp://www.blogger.com/profile/04730377166213941197noreply@blogger.com0tag:blogger.com,1999:blog-3552128008381793835.post-23967841565819755532008-01-15T07:53:00.000-08:002008-01-15T07:55:16.393-08:00

Citigroup Inc. posted the biggest loss in the U.S. bank's 196-year history as surging defaults on home loans forced it to write down the value of subprime-mortgage investments by $18 billion.The fourth-quarter net loss of $9.83 billion, or $1.99 a share, compared with a profit of $5.1 billion, or $1.03, a year earlier, the largest U.S. bank said today in a statement. New York-based Citigroup also

Srivatsanhttp://www.blogger.com/profile/04730377166213941197noreply@blogger.com1tag:blogger.com,1999:blog-3552128008381793835.post-43864363480685430082008-01-13T01:30:00.000-08:002008-01-13T01:32:38.580-08:00

An investment of even 1 percent from Saudi Prince Alwaleed could signal confidence in the struggling bank, says The Wall Street Journal.Saudi billionaire-Prince Alwaleed bin Talal and a team of Chinese investors may ride to embattled Citigroup's rescue, according to a report from The Wall Street Journal.Chinese investors, including China Development Bank, will reportedly contribute around $2

Srivatsanhttp://www.blogger.com/profile/04730377166213941197noreply@blogger.com0tag:blogger.com,1999:blog-3552128008381793835.post-20171492408271796572008-01-13T01:01:00.000-08:002008-01-13T01:04:34.533-08:00

China plans to better coordinate fiscal and monetary policies in 2008 to reduce its trade surplus and mop up excessive liquidity, Vice Finance Minister Li Yong said today.This year's fiscal policy will focus on structural adjustments and help essentially solve the problem of excess liquidity, Li said at a conference in Beijing. Monetary policies should focus on quantitative controls to win more

Srivatsanhttp://www.blogger.com/profile/04730377166213941197noreply@blogger.com0tag:blogger.com,1999:blog-3552128008381793835.post-20741573956405802902008-01-11T21:17:00.001-08:002008-01-11T21:21:38.222-08:00

Countrywide Financial may have found a white knight in Bank of America, but the mortgage lender was forced to put itself on the auction block for a steep discount.On Friday, Bank of America confirmed that it will buy Countrywide Financial for $4.1 billion, delivering a much-needed lifeline to the embattled mortgage lender. But the deal, which values Countrywide's shares at $7.07 a share, well

Srivatsanhttp://www.blogger.com/profile/04730377166213941197noreply@blogger.com0tag:blogger.com,1999:blog-3552128008381793835.post-90478750555660601902008-01-11T21:00:00.000-08:002008-01-11T21:04:40.192-08:00

U.S. government bond ratings should remain stable thanks to modest federal debt levels, the credit rating agency says.Despite the subprime mortgage crisis and the rising risk of a recession, a recession isn't likely under current conditions, credit ratings agency Moody's said in a report Friday.The diversity of the U.S. economy and the global role of the dollar continue to support U.S. government

Srivatsanhttp://www.blogger.com/profile/04730377166213941197noreply@blogger.com0tag:blogger.com,1999:blog-3552128008381793835.post-43651588698766970622008-01-11T20:43:00.000-08:002008-01-11T21:00:00.038-08:00

Gold prices break new record as weak dollar, fears of recession fuel demand for safe-haven investments.Gold futures rose above $900 an ounce for the first time Friday, as high oil prices, a weak dollar and fears of a U.S. recession led uneasy investors to keep buying the precious metal.An ounce of gold for February delivery on the New York Mercantile Exchange jumped $6.50 to $900.1 in morning

Srivatsanhttp://www.blogger.com/profile/04730377166213941197noreply@blogger.com0tag:blogger.com,1999:blog-3552128008381793835.post-79763871421302609282008-01-11T20:33:00.000-08:002008-01-11T20:36:34.617-08:00

Federal Reserve officials signaled they've shifted their stance in favor of taking out greater insurance against the growing risk of recession.Fed Governor Frederic Mishkin said today that policy makers must be ready to abandon inertia and act decisively in cases of major financial disruptions. Philadelphia Fed Bank President Charles Plosser, whom economists consider to be the toughest on

Srivatsanhttp://www.blogger.com/profile/04730377166213941197noreply@blogger.com0tag:blogger.com,1999:blog-3552128008381793835.post-77972282637191439972008-01-11T20:20:00.000-08:002008-01-11T20:31:51.513-08:00

Asian stocks fell to the lowest in more than three months, led by Toyota Motor Corp. and Samsung Electronics Co., on concern the effects of a U.S. housing slump will spread and slow growth globally.Nintendo Co. dropped 5.4 percent this week after U.S. hiring slowed in December and unemployment increased to a two- year high. Taiwan Semiconductor Manufacturing Co. had its worst week in more than

Srivatsanhttp://www.blogger.com/profile/04730377166213941197noreply@blogger.com0tag:blogger.com,1999:blog-3552128008381793835.post-34314741882188332762008-01-09T09:46:00.000-08:002008-01-09T09:48:45.891-08:00

Nation's largest home lender says December loan fundings increased 1%; stock bounces after tanking in previous session on bankruptcy rumors.Countrywide Financial Corp., the nation's largest mortgage lender, said Wednesday its December loan fundings rose 1 percent from November and were ahead of internal forecasts.The stock, which lost nearly a third of its value on Tuesday amid rumors of

Srivatsanhttp://www.blogger.com/profile/04730377166213941197noreply@blogger.com0tag:blogger.com,1999:blog-3552128008381793835.post-27234153529938424232008-01-09T09:44:00.000-08:002008-01-09T09:46:13.678-08:00

Online brokerage sells $3 billion in mortgage-backed investments, exits institutional trading business after shares hit all-time low.Troubled discount brokerage E-Trade Financial Corp. said Wednesday it sold about $3 billion of mortgage-backed securities and municipal bonds in addition to the November sale of its $3 billion asset-backed securities portfolio.The sale is part of a restructuring

Srivatsanhttp://www.blogger.com/profile/04730377166213941197noreply@blogger.com0tag:blogger.com,1999:blog-3552128008381793835.post-32318906216341619492008-01-09T09:39:00.000-08:002008-01-09T09:43:49.465-08:00

Recession isn't just a market buzz anymore. It is rearing its ugly head in the U.S. after a six-year hiatus, and will prompt the Federal Reserve to cut rates to 2.50%, according to Goldman Sachs & Co. (GS), the world's most profitable security firm.Goldman's U.S. economic team said in a research note Wednesday that they switched to an "outright recession call" as the housing slump and credit

Srivatsanhttp://www.blogger.com/profile/04730377166213941197noreply@blogger.com0tag:blogger.com,1999:blog-3552128008381793835.post-45988352356134884912008-01-08T09:09:00.000-08:002008-01-08T09:29:55.420-08:00

Harvard economist Martin Feldstein says more tax relief, deeper Fed rate cuts needed if U.S. is to avoid recession.Martin Feldstein, the Harvard economist credited with being one of the fathers of the Bush administration tax cuts, says the U.S. economy is now likely to slip into a recession, and that avoiding one will take a new round of tax cuts and interest rate cuts from the Federal

Srivatsanhttp://www.blogger.com/profile/04730377166213941197noreply@blogger.com0tag:blogger.com,1999:blog-3552128008381793835.post-41456145545237667612008-01-08T09:05:00.000-08:002008-01-08T09:09:22.793-08:00

Gold advanced to a record and energy, metals and agricultural commodities rose as the dollar weakened and investors bought raw materials as a hedge against inflation.Gold, copper and nickel are off to the best start since at least 1980. Crude oil gained, after reaching a record $100 last week, before a U.S. report that may show inventories fell for an eighth week. Corn climbed to an 11-year high

Srivatsanhttp://www.blogger.com/profile/04730377166213941197noreply@blogger.com0tag:blogger.com,1999:blog-3552128008381793835.post-51764756087227402602008-01-08T09:02:00.000-08:002008-01-08T09:05:03.902-08:00

U.S. stocks dropped, led by financial shares, after pending home sales declined more than economists forecast and concern increased that credit for banks will dry up.The Standard & Poor's 500 Index slipped 0.47 to 1,415.71 as of 11:43 a.m. in New York, erasing a 14-point advance after Countrywide Financial Corp. plunged the most since 1987. The Dow Jones Industrial Average fell 22.76, or 0.2

Srivatsanhttp://www.blogger.com/profile/04730377166213941197noreply@blogger.com0tag:blogger.com,1999:blog-3552128008381793835.post-32748564536527815552008-01-08T08:59:00.000-08:002008-01-08T09:01:49.898-08:00

The number of Americans signing contracts to buy previously owned homes fell more than forecast in November, signaling further deterioration in housing.The National Association of Realtors' index of pending home sales decreased 2.6 percent to 87.6, following a 3.7 percent gain in October that was larger than previously estimated, the group said today in Washington.The figures underscore Treasury

Srivatsanhttp://www.blogger.com/profile/04730377166213941197noreply@blogger.com0tag:blogger.com,1999:blog-3552128008381793835.post-89102478145491279992008-01-06T05:28:00.000-08:002008-01-06T05:29:48.030-08:00

Analysts say that many banks, including maybe even Citigroup, could be forced to slash their dividends in 2008.The first week of 2008 was chaotic on Wall Street, and economists struggle to make sense of it all.With credit markets continuing their downward spiral, investors could see their dividends disappearing in 2008.Dividend cuts or suspensions will continue to pick up among financial services

Srivatsanhttp://www.blogger.com/profile/04730377166213941197noreply@blogger.com0tag:blogger.com,1999:blog-3552128008381793835.post-4247050127185938402008-01-05T22:07:00.000-08:002008-01-05T22:09:50.856-08:00

OPEC, the producer of more than 40 percent of the world's oil, is supplying the international market with enough crude and can't be blamed for record prices, the group's new president, Chakib Khelil, said.There is enough oil in the market, Khelil, the Algerian oil minister who took over OPEC's rotating presidency for 2008, told reporters today in Algiers. It's the problems in Nigeria, in Pakistan

Srivatsanhttp://www.blogger.com/profile/04730377166213941197noreply@blogger.com0