123jump.com Staff
14 Jul, 2008
New York City
U.S. Treasury Secretary Paulson asked Congress an authority to take a stake in the two troubled mortgage lending agencies Fannie Mae and Freddie Mac. The Secretary also wants to increase lending limits of two agencies and the Fed will open its discount window to lenders. Freddie Mac sold $3 billion in short term debt with higher than average interest from investors. The stocks of two companies remain volatile and investors fear a further decline in their values in the near future.
123jump.com Staff
14 Jul, 2008
New York City
The largest euro zone bank Santander offered to purchase Alliance & Leicester for 317 pence per share. The deal values the company at 1.26 billion pounds and includes an interim dividend of 18 pence to shareholders. Santander returned to purchase the troubled UK lender at a lower price after three months as credit market weakness have persisted and A&L trades at nearly 50% lower price. The deal is fraught with risks at UK economy slows down and credit market remain jittery.
123jump.com Staff
11 Jul, 2008
New York City
Stocks in Japan continue to decline as investors worry that the growing crisis in the U.S. financial system may dampen exports. The ongoing credit market crisis in the U.S. may require bailout of the two mortgage agencies Fannie Mae and Freddie Mac. The two mortgage lenders collectively hold $5.2 trillion in debt and the U.S. government debt totals $9.3 trillion. Exporters, banks, realtors and retailers closed lower. J Front Retailing fell 5% after it forecasted annual income rise of 19%.
123jump.com Staff
11 Jul, 2008
New York City
Stocks in London declined as investors worried that U.S. financial system crisis is likely to spread further and may require government bailout of two largest mortgage lending agencies. Fannie Mae and Freddie Mac dropped to 2-decade low and dragged with them stocks of banks in the U.S. and UK. The stocks of lenders including HSBC, Barclays, HBOS and Royal Bank of Scotland declined more than 20% in the last nine months of trading.
123jump.com Staff
11 Jul, 2008
New York City
Investors increasingly fear that credit markets are likely to weaken further and government sponsored mortgage agencies may have to be bailed out by the U.S. government at the expense of shareholders. Fannie and Freddie dropped to 2-decade lows. The ongoing turmoil in the U.S. financial system is increasingly viewed by global investors as the primary driver for the global economic slowdown. In addition rising military threat from Israel is driving the crude oil to record high.
123jump.com Staff
11 Jul, 2008
New York City
U.S. stocks fell sharply after investors feared worsening financial health of two government sponsored mortgage lenders Fannie and Freddie. Both lenders dropped as much as 40%. Lehman Brothers dropped 15% to a 9-year low. Anheuser Busch and InBev NV have entered in merger talks and InBev has lifted its offer price to $70 per share. Retailers, consumer driven stocks and transportation stocks fell sharply.
123jump.com Staff
11 Jul, 2008
New York City
U.S. stocks fell sharply on a sharp rise in crude oil prices and continued weakness in financial stocks. Rising tensions in the Mideast lifted crude oil futures to a record high. Fannie Mae Plunged 30% and Freddie Mac dropped 40% on the speculation that the government bailout plan may include shareholders. Citigroup sold its German consumer finance business to Credit Mutuel Group of France for 4.9 billion euros or $7.6 billion.
123jump.com Staff
10 Jul, 2008
New York City
European markets closed sharply lower as investors faced falling corporate sales and profit. Hypermarket retailer Carrefour reported smaller than expected rise in sales and plans to curtail its remodeling in France and accelerate expansion in Brazil. Clay tile and brick maker Wienerberger estimated decline in sales and operating profit. UK retailers Burberry and Kingfisher dropped on negative comments from Goldman Sachs. UK left its key lending rate unchanged.
123jump.com Staff
10 Jul, 2008
New York City
Dow Chemical offer to buy Rohm & Haas at 75% premium lifted U.S. market averages but financial stocks continued drift lower. The comments from the former Fed President took another toll on Fannie Mae and Freddie Mac as both declined to near 15-year lows. European markets closed lower on the weakness in financial stocks. Rising tensions in the Middle East lifted crude oil $5 a barrel.
123jump.com Staff
10 Jul, 2008
New York City
Japan wholesale prices rose at a faster pace in June than in May on rising fuel and energy prices. The price index rose 5.6% in the month. The index rose sharpest in nearly three decades. Tokyo stocks rose marginally after BNP Paribas SA agreed to purchase 30 billion yen convertible bonds from realtor Urban Corp. The deal lifted the real estate developers. Financial stocks rebounded after speculators returned to the sector.
123jump.com Staff
10 Jul, 2008
New York City
UK home prices fell 6.1% in June from a year ago and fell 2% from May. Home prices declined to 15-year low on tighter credit, falling disposable income and stagnant wages. Separately, FTSE 100 index dropped 2.2% as investors worried that record fuel prices and falling home values will drag economy in recession. In addition, the Bank of England left its key lending rate unchanged at 5%. Retailers fell after Goldman Sachs lowered outlook on leading retailers.
123jump.com Staff
10 Jul, 2008
New York City
U.S. market averages scaled higher on the back of deal between two large chemical companies. Dow offered $15.3 billion to Rohm & Haas in all cash deal. Financial stocks declined again on comments from former Fed President Poole that questioned financial health of two government chartered agencies Fannie and Freddie. Freddie Mac plunged 19% and Fannie plummeted 11%. Lehman lost 8% to 80% loss from its peak in 2005.
123jump.com Staff
10 Jul, 2008
New York City
Dow Chemical agreed to pay 74% premium to acquire specialty chemical maker Rohm & Haas valued at $18.8 billion. Berkshire Hathaway will invest $3 billion and Kuwait Investment Authority will purchase $1 billion of convertible preferred securities. The rest of the deal will be funded with debt arranged by Merrill, Citigroup and Morgan Stanley. Rohm & Haas will operate as an independent division with sale of $13 billion after the merger.
123jump.com Staff
09 Jul, 2008
New York City
Banks drove U.K. stocks higher after JP Morgan Chase said losses in the credit market are expected to ease. Bradford & Bingley climbed 27% on speculation that it is a takeover target. London Stock Exchange Group climbed after reporting sales above estimates. Barclays advanced 5.1% to 293.25 pence, while Royal Bank of Scotland increased 4%.
123jump.com Staff
09 Jul, 2008
New York City
The BSE Sensex closed up 4.60% from the previous day''s close. Market breadth was positive with 2130 stocks advancing versus 529 stocks that dropped. On the BSE, the mid-cap index rose 2.91%, the small-cap index added 3.46% and BSE 500 surged 4.24%. Realty, power and banking stocks led the rally. Reliance Industries rose 5.1% to 2,079.95 rupees after signing an agreement with Peru''s Perupetro to jointly explore for oil and gas in the Andean country.
