WASHINGTON (AP) -- President Bush said Wednesday that lawmakers risk a cascade of wiped-out retirement savings, rising home foreclosures, lost jobs and closed businesses if they fail to act on a massive financial rescue plan. "Our entire economy is in danger," he said.
"Without immediate action by Congress, American could slip into a financial panic and a distressing scenario would unfold," Bush said in a 12-minute prime-time address delivered from the White House East Room that he hoped would help rescue his tough-sell bailout package. "Ultimately, our country could experience a long and painful recession."
Said Bush: "We must not let this happen."
The unprecedented $700 billion bailout, which the Bush administration asked Congress last weekend to approve before it adjourns, is meeting with deep skepticism, especially from conservatives in Bush's own Republican Party who are revolting at the high price tag and massive private-sector intervention by government. Though there is general agreement that something must be done to address the spiraling economic problems, Bush has been forced to accept changes almost daily, based on demands from the right and left.
Seeking to explain himself to conservatives, Bush stressed he was reluctant to put taxpayer money on the line to help businesses that had made bad decisions and that the rescue is not aimed at saving individual companies. He tried to address some of the major complaints from Democrats by promising that CEOs of failed companies won't be rewarded, while warning he would draw the line at regulations he determined would hamper economic growth.
"With the situation becoming more precarious by the day, I faced a choice: to step in with dramatic government action or to stand back and allow the irresponsible actions by some to undermine the financial security of all," Bush said.
The president turned himself into an economics professor for much of the address, tracing the origins of the problem back a decade.
But while generally acknowledging risky and poorly thought-out financial decisions at many levels of society, Bush never assigned blame to any specific entity, such as his administration, the quasi-independent mortgage giants Fannie Mae and Freddie Mac or the Wall Street firms that built rising profits on increasingly speculative mortgage-backed securities. Instead, he spoke in terms of investment banks that "found themselves saddled with" the toxic assets the government is now proposing to buy and banks that "found themselves" with questionable balance sheets.
Intensive, personal lobbying of lawmakers is not usually Bush's style as president, unlike some predecessors. He does not often make calls or twist arms on behalf of a legislative priority.
But with the nation facing the biggest financial meltdown in decades, Bush took the unusual step of asking Democrat Barack Obama and Republican John McCain, one of whom will inherit the financial mess in four months, and key congressional leaders of both parties to a White House meeting on Thursday to work on a compromise.
Obama spokesman Bill Burton said the senator would attend the meeting scheduled for the afternoon, and senior McCain advisers said he would, too. The plans of the other invitees were unknown. The White House said that the idea for the joint meeting was McCain's and that aides went about setting it up after Bush and McCain spoke Wednesday afternoon.
In another move welcome at the White House, Obama and McCain issued a joint statement using their own dire language to urge lawmakers to act. The two candidates -- bitterly fighting each other for the White House but coming together over this issue -- said the situation offers a chance for politicians to prove Washington's worth.
"The plan that has been submitted to Congress by the Bush administration is flawed, but the effort to protect the American economy must not fail," they said. "This is a time to rise above politics for the good of the country. We cannot risk an economic catastrophe."
However, the Oval Office rivals were not putting politics aside entirely. McCain asked Obama to agree to delay their first debate, scheduled for Friday, while Obama said it should go ahead.
White House and administration officials have warned repeatedly in recent days of a coming "financial calamity."
But that has not closed the deal, which for many recalls previous warnings of grave threats from Bush -- such as before the Iraq war -- that did not materialize. So Bush's goal with his speech, his first prime-time address in 377 days, was to frame the debate in layman's terms to show the depths of the crisis, explain how it affects the people's daily lives and inspire the public to demand action from Washington.
He said that more banks could fail, the stock market could plummet and erase retirement accounts, businesses could find it hard to get credit and be forced to close, wiping out jobs for millions of Americans.
He ended on a positive note, predicting lawmakers would "rise to the occasion" and that the nation's economy will overcome "a moment of great challenge."
With so many crises hitting the United States at once, the presidential race has taken a back seat and so has Bush's involvement in politics. Bush canceled a campaign trip to Florida on Wednesday to deal with the problem, the third time in a week that he has scrapped his attendance at out-of-town fundraisers, either because of the market turmoil or Hurricane Ike.
The economic crisis also is almost certain to overshadow the rest of Bush's four months left in office and could hugely impact his legacy. It has been assumed that the long-term view of Bush's presidency was to be shaped largely by Iraq, Hurricane Katrina and the Sept. 11, 2001, attacks. Now, the dire economic problems and the aftermath of the government's attempted solution will certainly be added to that list.
Showing posts with label Global outlook. Show all posts
Showing posts with label Global outlook. Show all posts
Thursday, September 25, 2008
Wednesday, September 24, 2008
US Stocks extend fall as Street weighs bailout plan
NEW YORK (AP) -- Financial markets extended their declines Tuesday as investors worried that lawmakers were beginning to doubt the necessity of a broad government bailout for financial institutions as a way to revive ailing credit markets.
Top economic officials updating Congress about efforts to work out a $700 billion financial rescue plan faced a greater degree of second-guessing from lawmakers than some investors had expected. The Dow Jones industrials, which had been higher for the first half of the session ended at the lows of the day, tacking a 161-point loss onto a steep drop from Monday.
Still, trading appeared more orderly than Monday, when investors rushed into hard assets like oil and gold. Meanwhile, demand remained high for 3-month Treasury bills, considered the safest short-term financial asset, while the dollar regained some ground after being hard hit Monday.
After days of intense gyrations in financial markets, investors are anxious about whether the plan to absorb bad mortgages and other risky assets will help steer the economy onto more solid footing -- and also about resistance to the plan in Congress.
Treasury Secretary Henry Paulson, Federal Reserve Chairman Ben Bernanke and Securities and Exchange Commission Chairman Christopher Cox testified before lawmakers, who are working alongside others in the Bush administration to complete the details of the bailout.
Traders grew nervous, and sent the stock market lower, as the officials faced questions about whether the government's planned response was appropriate. Sen. Chuck Schumer, D-N.Y., for example, asked whether $150 billion might be adequate to get the program started if investors were told more money could be added if necessary.
The market remains uncertain about how long it will take for the bailout plans to take effect, and assuming they do, how effective they will be.
"There's skepticism about whether the $700 billion number is the right number," said Jim Herrick, manager and director of equity trading at Baird & Co.
Bernanke told the Senate Banking Committee Congress risks triggering a recession if it doesn't act on the plan. He said inaction could leave a range of businesses unable to borrow the money while consumers could find it impossible to finance big purchases like cars and homes.
While financial markets showed uneasiness as investors listened to the testimony, there wasn't the level of fear and volatility that dominated Monday's trading.
Demand for short-term Treasurys remained high. The yield on the 3-month T-bill fell to 0.79 percent from 0.88 percent on Monday; last week, it was around zero after investors flooded money into T-bills as the credit markets seized up. That spurred government officials to propose a debt buyout plan.
The yield on the benchmark 10-year Treasury note, which trades opposite its price, fell to 3.80 percent from 3.85 percent late Monday.
The dollar, whose decline Monday drove some of the frenetic trading in other markets, regained some of its lost ground against the euro, while gold prices declined after starting the week with a big advance.
The Dow fell 161.52, or 1.47 percent, to 10,854.17 after having risen more than 125 points in the early going and then falling by more than 180. With Monday's 370-point decline, the blue chips are down 534 points, or 4.69 percent, for the week.
Broader stock indicators also fell Tuesday. The Standard & Poor's 500 index fell 18.87, or 1.56 percent, to 1,188.22, and the Nasdaq composite index fell 25.67, or 1.18 percent, to 2,153.34.
Investors also were watching oil prices after anxiety over the government bailout and a huge short-covering rally pushed crude to the biggest one-day gain.
Light, sweet crude for November delivery fell $2.76 to settle at $106.61 on the New York Mercantile Exchange. The October contract, which expired Monday, surged as much as $25.45 to $130 before falling back to settle at $120.92, an advance of $16.37. While that gain was due to technical market dynamics, the price of oil has moved higher over the past week amid increasing concerns about the U.S. financial system.
"We're going to see this volatility for a while even after this package passes because I think we're still facing a fundamental slowdown in the economy worldwide which is going to have some impact on earnings," said J. Stephen Lauck, chief executive and portfolio manager at Ashfield Capital Partners.
Financial stocks finished mixed as some investors worried that the government's plan could prove inadequate to save some banks. Should the government pay too little for assets some banks might be forced to book ruinous write-offs and risk going under.
Bank of America Corp. fell 85 cents, or 2.5 percent, to $33.30, while Washington Mutual Inc. fell 13 cents, or 3.9 percent, to $3.20.
Some energy names lost ground as oil declined. Occidental Petroleum Corp. fell $4.08, or 5 percent, to $77.16 and XTO Energy Inc. declined $1.14, or 2.2 percent, to $51.30.
In addition, some industrial stocks slid as investors worried about the well-being of the global economy. Aluminum maker Alcoa Inc. fell $1.21, or 4.5 percent, to $25.59. Seed company Monsanto Co. fell $4.85, or 4.2 percent, to $112.14.
Some technology stocks advanced as investors looked for areas outside the financial, energy and industrial sectors. Computer chip maker Intel Corp. rose 13 cents to $18.63, while Sprint Nextel Corp. rose 27 cents, or 4.2 percent, to $6.77.
Declining issues outnumbered advancers by about 5 to 2 on the New York Stock Exchange, where consolidated volume came to 5.11 billion shares, compared with 5.22 billion traded Monday.
The Russell 2000 index of smaller companies fell 11.25, or 1.56 percent, to 709.19.
Overseas, Britain's FTSE 100 fell 1.91 percent, Germany's DAX index slid 0.64 percent, and France's CAC-40 fell 1.98 percent. Japanese financial markets were closed Tuesday for a national holiday.
Top economic officials updating Congress about efforts to work out a $700 billion financial rescue plan faced a greater degree of second-guessing from lawmakers than some investors had expected. The Dow Jones industrials, which had been higher for the first half of the session ended at the lows of the day, tacking a 161-point loss onto a steep drop from Monday.
Still, trading appeared more orderly than Monday, when investors rushed into hard assets like oil and gold. Meanwhile, demand remained high for 3-month Treasury bills, considered the safest short-term financial asset, while the dollar regained some ground after being hard hit Monday.
After days of intense gyrations in financial markets, investors are anxious about whether the plan to absorb bad mortgages and other risky assets will help steer the economy onto more solid footing -- and also about resistance to the plan in Congress.
Treasury Secretary Henry Paulson, Federal Reserve Chairman Ben Bernanke and Securities and Exchange Commission Chairman Christopher Cox testified before lawmakers, who are working alongside others in the Bush administration to complete the details of the bailout.
Traders grew nervous, and sent the stock market lower, as the officials faced questions about whether the government's planned response was appropriate. Sen. Chuck Schumer, D-N.Y., for example, asked whether $150 billion might be adequate to get the program started if investors were told more money could be added if necessary.
The market remains uncertain about how long it will take for the bailout plans to take effect, and assuming they do, how effective they will be.
"There's skepticism about whether the $700 billion number is the right number," said Jim Herrick, manager and director of equity trading at Baird & Co.
Bernanke told the Senate Banking Committee Congress risks triggering a recession if it doesn't act on the plan. He said inaction could leave a range of businesses unable to borrow the money while consumers could find it impossible to finance big purchases like cars and homes.
While financial markets showed uneasiness as investors listened to the testimony, there wasn't the level of fear and volatility that dominated Monday's trading.
Demand for short-term Treasurys remained high. The yield on the 3-month T-bill fell to 0.79 percent from 0.88 percent on Monday; last week, it was around zero after investors flooded money into T-bills as the credit markets seized up. That spurred government officials to propose a debt buyout plan.
The yield on the benchmark 10-year Treasury note, which trades opposite its price, fell to 3.80 percent from 3.85 percent late Monday.
The dollar, whose decline Monday drove some of the frenetic trading in other markets, regained some of its lost ground against the euro, while gold prices declined after starting the week with a big advance.
The Dow fell 161.52, or 1.47 percent, to 10,854.17 after having risen more than 125 points in the early going and then falling by more than 180. With Monday's 370-point decline, the blue chips are down 534 points, or 4.69 percent, for the week.
Broader stock indicators also fell Tuesday. The Standard & Poor's 500 index fell 18.87, or 1.56 percent, to 1,188.22, and the Nasdaq composite index fell 25.67, or 1.18 percent, to 2,153.34.
Investors also were watching oil prices after anxiety over the government bailout and a huge short-covering rally pushed crude to the biggest one-day gain.
Light, sweet crude for November delivery fell $2.76 to settle at $106.61 on the New York Mercantile Exchange. The October contract, which expired Monday, surged as much as $25.45 to $130 before falling back to settle at $120.92, an advance of $16.37. While that gain was due to technical market dynamics, the price of oil has moved higher over the past week amid increasing concerns about the U.S. financial system.
"We're going to see this volatility for a while even after this package passes because I think we're still facing a fundamental slowdown in the economy worldwide which is going to have some impact on earnings," said J. Stephen Lauck, chief executive and portfolio manager at Ashfield Capital Partners.
Financial stocks finished mixed as some investors worried that the government's plan could prove inadequate to save some banks. Should the government pay too little for assets some banks might be forced to book ruinous write-offs and risk going under.
Bank of America Corp. fell 85 cents, or 2.5 percent, to $33.30, while Washington Mutual Inc. fell 13 cents, or 3.9 percent, to $3.20.
Some energy names lost ground as oil declined. Occidental Petroleum Corp. fell $4.08, or 5 percent, to $77.16 and XTO Energy Inc. declined $1.14, or 2.2 percent, to $51.30.
In addition, some industrial stocks slid as investors worried about the well-being of the global economy. Aluminum maker Alcoa Inc. fell $1.21, or 4.5 percent, to $25.59. Seed company Monsanto Co. fell $4.85, or 4.2 percent, to $112.14.
Some technology stocks advanced as investors looked for areas outside the financial, energy and industrial sectors. Computer chip maker Intel Corp. rose 13 cents to $18.63, while Sprint Nextel Corp. rose 27 cents, or 4.2 percent, to $6.77.
Declining issues outnumbered advancers by about 5 to 2 on the New York Stock Exchange, where consolidated volume came to 5.11 billion shares, compared with 5.22 billion traded Monday.
The Russell 2000 index of smaller companies fell 11.25, or 1.56 percent, to 709.19.
Overseas, Britain's FTSE 100 fell 1.91 percent, Germany's DAX index slid 0.64 percent, and France's CAC-40 fell 1.98 percent. Japanese financial markets were closed Tuesday for a national holiday.
Tuesday, September 16, 2008
Nifty cracks below 4,000 on global financial turmoil
Key benchmark indices slumped for the sixth day in a row today, 16
September 2008, mirroring mayhem in global markets triggered by
fears of the state of the US financial system after Lehman Brothers
filed for bankruptcy, insurer AIG struggled for survival and
Merrill Lynch was sold to Bank of America. Nifty cracked below
4,000 in opening trade.
Ranbaxy Laboratories slumped over 5%. Index heavyweight Reliance
Industries hit a 52-week low of Rs 1800 in early trade. Banking
pivotals saw divergent trend.
US markets collapsed on Monday, 15 September 2008 falling the most
since 11 September 2001 as investors worried about the impact of
the latest twists in the credit crisis on the economy and the
outlook for profits. The Dow Jones Industrial Average plunged
504.48 points, or 4.42%, to 10,917.51, the Nasdaq Composite index
dropped 81.36 points, or 3.60%, to 2,179.91 and the Standard &
Poor's 500 index fell 59 points, or 4.71% to 1,192.70.
Asian markets were trading weak today, 16 September 2008 as fears
of a global financial crisis gripped investors across Asia. Key
benchmark indices in China, Japan, Hong Kong, Taiwan, Singapore,
and South Korea were down by between 2.07% and 5.95%.
At 10:21 IST, the BSE 30-share Sensex was down 254.13 points or
1.85% to 13,280.34. The Sensex opened with a downward gap of 479.54
at 13,051.73, which is also its day's low so far. At the day's high
of 13,291.10 hit in early trade, the Sensex lost 240.17 points.
The S&P CNX Nifty tumbled 76.55 points or 1.88% to 3,996.35.
The market breadth was weak on BSE with 1273 shares declining as
compared to just 246 that rose. 27 remained unchanged.
The total turnover on BSE amounted to Rs 506 crore by 10:30 IST
Among the 30-member Sensex pack, 28 suffered losses.
Ranbaxy Laboratories, India's top drug maker by sales slumped 5.46%
to Rs 396.25 and was the top loser from Sensex pack. The stock has
been on sustained downtrend ever since the Japanese drug maker
Daiichi Sankyo's open offer to acquire an additional 20% stake at
Rs 737 a share in the company ended on 4 September 2008.
India's largest private sector firm in terms of market
capitalization and oil refiner Reliance Industries fell 1.12% to Rs
1863 on 1.74 lakh shares. The stock hit a 52-week low of Rs 1800 in
intra-day trade. Reliance Industries reportedly paid 5% higher
advance tax at Rs 680 crore in Q2 September 2008 over Q2 September
2007.
IT pivotals tumbled due to heavy selling on reports that hedging
positions taken by the companies are improper with rupee falling to
two-year low against the dollar. India's fourth largest software
services exporter Satyam Computer Services slumped 4.66% to Rs 351
and was the worst hit among the IT pivotals.
Banking pivotals saw divergent trned. India's largest private
sector bank in terms of net profit ICICI Bank slipped 3.19% to Rs
606.90. India's second largest private sector bank in terms of net
profit HDFC Bank slipped 1.42% to Rs 1190.
However India's largest state run bank in terms of net assets State
Bank of India rose 0.33% to Rs 1493.80, on reports the bank paid
50% higher advance tax to Rs 1560 crore in Q2 September 2008 over
Q2 September 2007. It was the top gainer from Sensex pack.
Bharti Airtel (down 4.51% to Rs 730.90), DLF (down 4.90% to Rs
411), and Jaiprakash Associates (down 3.63% to Rs 141.95), edged
lower from the Sensex pack.
Infosys (up 0.04% to Rs 1575), and Mahindra & Mahindra (up 0.29% to
Rs 538.50), edged higher from Sensex pack.
Meanwhile, crude oil prices plunged to a seven-month low as turmoil
in the US financial system heightened concerns energy demand may
slow. US light crude for October 2008 delivery fell $3.02 to $92.69
a barrel yesterday, 15 September 2008.
Back home, bears ruled the roost on the bourses for the fifth
consecutive day yesterday, 15 September 2008 as key benchmark
indices posted substantial losses after US investment bank Lehman
Brothers filed for bankruptcy protection. The BSE 30-share Sensex
lost 469.54 or 3.35% at 13,531.27 and the S&P CNX Nifty lost 155.55
points or 3.68%, to settle at 4072.90 on that day.
Foreign institutional investors (FIIs) were net equity sellers
worth Rs 763.02 crore while mutual funds bought shares worth Rs
1328.14 crore on Monday, 15 September 2008, according to
provisional data on NSE. FIIs were net buyers of Rs 1156.23 crore
in the futures & options segment on that day.
September 2008, mirroring mayhem in global markets triggered by
fears of the state of the US financial system after Lehman Brothers
filed for bankruptcy, insurer AIG struggled for survival and
Merrill Lynch was sold to Bank of America. Nifty cracked below
4,000 in opening trade.
Ranbaxy Laboratories slumped over 5%. Index heavyweight Reliance
Industries hit a 52-week low of Rs 1800 in early trade. Banking
pivotals saw divergent trend.
US markets collapsed on Monday, 15 September 2008 falling the most
since 11 September 2001 as investors worried about the impact of
the latest twists in the credit crisis on the economy and the
outlook for profits. The Dow Jones Industrial Average plunged
504.48 points, or 4.42%, to 10,917.51, the Nasdaq Composite index
dropped 81.36 points, or 3.60%, to 2,179.91 and the Standard &
Poor's 500 index fell 59 points, or 4.71% to 1,192.70.
Asian markets were trading weak today, 16 September 2008 as fears
of a global financial crisis gripped investors across Asia. Key
benchmark indices in China, Japan, Hong Kong, Taiwan, Singapore,
and South Korea were down by between 2.07% and 5.95%.
At 10:21 IST, the BSE 30-share Sensex was down 254.13 points or
1.85% to 13,280.34. The Sensex opened with a downward gap of 479.54
at 13,051.73, which is also its day's low so far. At the day's high
of 13,291.10 hit in early trade, the Sensex lost 240.17 points.
The S&P CNX Nifty tumbled 76.55 points or 1.88% to 3,996.35.
The market breadth was weak on BSE with 1273 shares declining as
compared to just 246 that rose. 27 remained unchanged.
The total turnover on BSE amounted to Rs 506 crore by 10:30 IST
Among the 30-member Sensex pack, 28 suffered losses.
Ranbaxy Laboratories, India's top drug maker by sales slumped 5.46%
to Rs 396.25 and was the top loser from Sensex pack. The stock has
been on sustained downtrend ever since the Japanese drug maker
Daiichi Sankyo's open offer to acquire an additional 20% stake at
Rs 737 a share in the company ended on 4 September 2008.
India's largest private sector firm in terms of market
capitalization and oil refiner Reliance Industries fell 1.12% to Rs
1863 on 1.74 lakh shares. The stock hit a 52-week low of Rs 1800 in
intra-day trade. Reliance Industries reportedly paid 5% higher
advance tax at Rs 680 crore in Q2 September 2008 over Q2 September
2007.
IT pivotals tumbled due to heavy selling on reports that hedging
positions taken by the companies are improper with rupee falling to
two-year low against the dollar. India's fourth largest software
services exporter Satyam Computer Services slumped 4.66% to Rs 351
and was the worst hit among the IT pivotals.
Banking pivotals saw divergent trned. India's largest private
sector bank in terms of net profit ICICI Bank slipped 3.19% to Rs
606.90. India's second largest private sector bank in terms of net
profit HDFC Bank slipped 1.42% to Rs 1190.
However India's largest state run bank in terms of net assets State
Bank of India rose 0.33% to Rs 1493.80, on reports the bank paid
50% higher advance tax to Rs 1560 crore in Q2 September 2008 over
Q2 September 2007. It was the top gainer from Sensex pack.
Bharti Airtel (down 4.51% to Rs 730.90), DLF (down 4.90% to Rs
411), and Jaiprakash Associates (down 3.63% to Rs 141.95), edged
lower from the Sensex pack.
Infosys (up 0.04% to Rs 1575), and Mahindra & Mahindra (up 0.29% to
Rs 538.50), edged higher from Sensex pack.
Meanwhile, crude oil prices plunged to a seven-month low as turmoil
in the US financial system heightened concerns energy demand may
slow. US light crude for October 2008 delivery fell $3.02 to $92.69
a barrel yesterday, 15 September 2008.
Back home, bears ruled the roost on the bourses for the fifth
consecutive day yesterday, 15 September 2008 as key benchmark
indices posted substantial losses after US investment bank Lehman
Brothers filed for bankruptcy protection. The BSE 30-share Sensex
lost 469.54 or 3.35% at 13,531.27 and the S&P CNX Nifty lost 155.55
points or 3.68%, to settle at 4072.90 on that day.
Foreign institutional investors (FIIs) were net equity sellers
worth Rs 763.02 crore while mutual funds bought shares worth Rs
1328.14 crore on Monday, 15 September 2008, according to
provisional data on NSE. FIIs were net buyers of Rs 1156.23 crore
in the futures & options segment on that day.
Friday, March 14, 2008
Further bad news for market - US retail sales report- gold hits high
Wall Street Heads for Sharply Lower Opening on Global Worries About Health of US Economy
Ahead of the opening in the U.S., Dow futures were down 145 points, or 1.2 percent, at 11,979, while Standard & Poor's 500 futures were down 21.30, or 1.63 percent, at 1,288.10 and Nasdaq 100 futures fell 20.00, or 1.15 percent, to 1,714.75.
The government said retail sales fell by a worse-than-expected 0.6 percent in February, rather than showing the 0.2 percent gain Wall Street had expected
The spike in gold prices -- hitting $1,000 an ounce for the first time in electronic trading Thursday, according to Dow Jones Newswires -- underscores investors' nervousness as investing in the precious metal is often regarded as a defensive move. Gold prices recently changed hands up $15.60 at $996.10 an ounce.
Meanwhile Thursday, the dollar hit a 12-year low against the Japanese yen and also fell to another new low against the euro, which rose to $1.56 for the first time. And oil prices, whose relentless ascent have fed inflation worries, continued to rise.
The dollar's slide is of particular concern because it is helping to send commodities prices including oil to greater highs -- in turn feeding the growth of inflation
A pullback among consumers worried about jobs, falling home prices or rising energy costs could hasten the economy's slowdown.
Ahead of the opening in the U.S., Dow futures were down 145 points, or 1.2 percent, at 11,979, while Standard & Poor's 500 futures were down 21.30, or 1.63 percent, at 1,288.10 and Nasdaq 100 futures fell 20.00, or 1.15 percent, to 1,714.75.
The government said retail sales fell by a worse-than-expected 0.6 percent in February, rather than showing the 0.2 percent gain Wall Street had expected
The spike in gold prices -- hitting $1,000 an ounce for the first time in electronic trading Thursday, according to Dow Jones Newswires -- underscores investors' nervousness as investing in the precious metal is often regarded as a defensive move. Gold prices recently changed hands up $15.60 at $996.10 an ounce.
Meanwhile Thursday, the dollar hit a 12-year low against the Japanese yen and also fell to another new low against the euro, which rose to $1.56 for the first time. And oil prices, whose relentless ascent have fed inflation worries, continued to rise.
The dollar's slide is of particular concern because it is helping to send commodities prices including oil to greater highs -- in turn feeding the growth of inflation
A pullback among consumers worried about jobs, falling home prices or rising energy costs could hasten the economy's slowdown.
Thursday, March 13, 2008
Market View@8.45AM IST 13th March
All global cues negative, Yesterday also some profit booking brought down the Indian market. This trend likely to continue today also. You can see gap down opening, NSE may be down by more than 50 points .. U may see this correction will lead to bearish trend today.. Let us see what happens..
US MARKET closing
Dow 12,110.24 -46.57 -0.38%
Nasdaq 2,243.87 -11.89 -0.53%
S&P 500 1,308.77 -11.88 -0.90%
Asian Market @8.45AM
Nikkei 225 12,600.05 -261.08 -2.03%
Hang Seng 22,892.49 -530.27 -2.26%
Straits Times 2,882.86 -35.08 -1.20%
US MARKET closing
Dow 12,110.24 -46.57 -0.38%
Nasdaq 2,243.87 -11.89 -0.53%
S&P 500 1,308.77 -11.88 -0.90%
Asian Market @8.45AM
Nikkei 225 12,600.05 -261.08 -2.03%
Hang Seng 22,892.49 -530.27 -2.26%
Straits Times 2,882.86 -35.08 -1.20%
Sunday, March 9, 2008
IDFC to buy StanChart India MF biz
Mumbai, March 7 Infrastructure Development Finance Co Ltd (IDFC) has emerged winner for taking over Stan Chart’s mutual fund business in India.
Standard Chartered PLC has agreed to sell Standard Chartered Trustee Company Pvt Ltd and Standard Chartered Asset Management Co, which handles its mutual fund manufacturing business in India, to IDFC for a total cash consideration of $205 million (over Rs 820 crore). The consideration is before deductions for local taxes and deal expenses.
UBS pull out
IDFC will thus be paying about 70 per cent more that what UBS Global Asset Management, a leading international asset management company, had agreed to pay for the acquisition last year. UBS had struck the deal for acquiring Stan Chart’s mutual fund business in India for $120 million in January 2007.
However, the transaction, which was to be wrapped up by the second half of 2007, did not materialise, with UBS pulling out of the proposed acquisition after the sale and purchase agreement expired in December last. The deal did not get the required regulatory approvals.
Sources following the deal with IDFC say that the infrastructure finance company was not the highest bidder, but what tilted the balance in its favour was the company’s network in India and its experience in providing financial services.
Standard Chartered said in a statement that the transaction with IDFC does not include its mutual fund distribution business, which it will continue to pursue.
Wider strategy
Mr Jaspal Bindra, Chief Executive Officer, Asia, Standard Chartered, said: “IDFC is a well-respected financial services company and we are delighted to have reached an agreement with them for the sale of this business. Standard Chartered will remain a distributor of asset management products in India.”
Mr Rajiv Lall, Managing Director and Chief Executive Officer of IDFC, added: “We are pleased to acquire a quality asset management platform. This is in line with our wider strategy of broadening our footprint in the asset management business and diversifying our fee-based revenue streams.”
Mr Deepak Parekh, HDFC Chairman, clarified that he will not be in the IDFC mutual fund board.
Core businesses
IDFC’s existing businesses include project finance, principal investments, asset management (for third party funds), investment banking, institutional broking and advisory services. As on December 31, 2007, IDFC’s shareholders included the Government of India (20 per cent), foreign investors 49 per cent and public/others 31 per cent. IDFC’s market capitalisation is about $5.8 billion.
The transaction, which is subject to certain regulatory approvals, is expected to be completed in the second quarter of 2008.
Standard Chartered PLC has agreed to sell Standard Chartered Trustee Company Pvt Ltd and Standard Chartered Asset Management Co, which handles its mutual fund manufacturing business in India, to IDFC for a total cash consideration of $205 million (over Rs 820 crore). The consideration is before deductions for local taxes and deal expenses.
UBS pull out
IDFC will thus be paying about 70 per cent more that what UBS Global Asset Management, a leading international asset management company, had agreed to pay for the acquisition last year. UBS had struck the deal for acquiring Stan Chart’s mutual fund business in India for $120 million in January 2007.
However, the transaction, which was to be wrapped up by the second half of 2007, did not materialise, with UBS pulling out of the proposed acquisition after the sale and purchase agreement expired in December last. The deal did not get the required regulatory approvals.
Sources following the deal with IDFC say that the infrastructure finance company was not the highest bidder, but what tilted the balance in its favour was the company’s network in India and its experience in providing financial services.
Standard Chartered said in a statement that the transaction with IDFC does not include its mutual fund distribution business, which it will continue to pursue.
Wider strategy
Mr Jaspal Bindra, Chief Executive Officer, Asia, Standard Chartered, said: “IDFC is a well-respected financial services company and we are delighted to have reached an agreement with them for the sale of this business. Standard Chartered will remain a distributor of asset management products in India.”
Mr Rajiv Lall, Managing Director and Chief Executive Officer of IDFC, added: “We are pleased to acquire a quality asset management platform. This is in line with our wider strategy of broadening our footprint in the asset management business and diversifying our fee-based revenue streams.”
Mr Deepak Parekh, HDFC Chairman, clarified that he will not be in the IDFC mutual fund board.
Core businesses
IDFC’s existing businesses include project finance, principal investments, asset management (for third party funds), investment banking, institutional broking and advisory services. As on December 31, 2007, IDFC’s shareholders included the Government of India (20 per cent), foreign investors 49 per cent and public/others 31 per cent. IDFC’s market capitalisation is about $5.8 billion.
The transaction, which is subject to certain regulatory approvals, is expected to be completed in the second quarter of 2008.
Tuesday, March 4, 2008
Global outlook@8:00AM
Us Market ends flat after the volatile trade
Dow 12,258.90 -7.49 -0.06%
Nasdaq 2,258.60 -12.88 -0.57%
S&P 500 1,331.34 +0.71 +0.05%
Asain Market also volatile but trading in +ve
Nikkei 225 13,086.66 +94.48 +0.73%
Hang Seng 23,713.01 +128.04 +0.54%
Straits Times 2,931.95 +5.40 +0.18%
Dow 12,258.90 -7.49 -0.06%
Nasdaq 2,258.60 -12.88 -0.57%
S&P 500 1,331.34 +0.71 +0.05%
Asain Market also volatile but trading in +ve
Nikkei 225 13,086.66 +94.48 +0.73%
Hang Seng 23,713.01 +128.04 +0.54%
Straits Times 2,931.95 +5.40 +0.18%
US & Europe Markets are in RED
More -ve news.. US Markets open in Red
Dow 12,219.25 -47.14 -0.38%
Nasdaq 2,266.87 -4.61 -0.20%
S&P 500 1,326.68 -3.95 -0.30%
Europe market trading in red
FTSE 100 5,826.00 -58.30 -0.99%
DAX 6,658.33 -89.80 -1.33%
CAC 40 4,722.10 -68.56 -1.43%
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