no worry, our Ah Gong has what they need to be saved.
On Mon, 17 Mar 2008 04:24:45 -0700 (PDT), "KANGAROOISTAN = the land of
kangaroos" <kangarooistan@[EMAIL PROTECTED]
> wrote:
>Markets slump on banking worries
>
>Investor confidence has been hit by Bear Stearns' problems
>
>European and Asian stock markets have fallen heavily in reaction to
>the emergency bail-out of US investment bank Bear Stearns over the
>weekend.
>
>London's FTSE 100 index was down 2.5%, in Paris the Cac 40 slumped
>2.6% and Frankfurt's Dax fell 3.4%.
>
>European bank shares have been hit. Societe Generale fell 8%,
>Commerzbank was down 7.5% and HBOS declined by 9%.
>
>Asian stocks also fell, with Tokyo's Nikkei average closing 3.7% lower
>and Hong Kong's Hang Seng slumping 5.2%.
>
>In Mumbai, the Sen*** was also down 6.3%.
>
>Nervous investors
>
>Investors are worried that the collapse of one of Wall Street's
>biggest names is a sign that the the credit crunch is getting worse,
>and lending might seize up.
>
>Central banks have been trying restore some confidence to the
>financial system.
>
>The Bank of England on Monday made an extra =A35bn ($10bn) available for
>banks to borrow.
>
>And on Sunday, the US Federal Reserve reduced its discount rate - the
>interest rate at which banks lend to each other - from 3.5% to 3.25%
>and offered to buy up the assets of other troubled banks.
>
>The Fed is expected to lower its general interest rates on Tuesday by
>up to 1%.
>
>Bear Stearns
>
>Investors' confidence has been hit by the problems at Bear Stearns.
>
>The investment bank was forced to seek emergency funding from the US
>Federal Reserve last week and was sold over the weekend to JP Morgan
>Chase for a tiny fraction of its earlier value.
>
>The bank got into trouble when other banks refused to lend it money
>over fears that it had too many bad debts due to the sub-prime
>mortgage crisis.
>
>The Fed has agreed to take over up to $30bn of Bear Stearns' assets,
>removing the risk for JP Morgan.
>
>The quick sale failed to calm investors' nerves who, this week, will
>receive earnings announcements from other big US investment banks,
>including Lehman Brothers, Goldman Sachs and Morgan Stanley.
>
>"There is persistent credit uncertainty. Market players have been
>repeatedly let down which shows the sub-prime mortgage problems are so
>deep-rooted," said Atsuji Ohara, global strategist at ****nko
>Securities in Tokyo.
>
>"Just buying an investment bank does not solve the problem," he added.
>
>Dollar woes
>
>Worries about the credit crisis and the health of the banking industry
>also undermined the dollar.
>
>It fell to 95.72 yen, its lowest level in more than 12 years. The euro
>hit a record against the dollar, buying $1.5903.
>
>The weak dollar boosted commodities, with oil rising to another
>record, light sweet crude traded at $111.80 before falling back.
>
>The dollar is also falling because of the expectation that the US Fed
>will cut interest rates further, making it less attractive to hold
>dollars as opposed to other currencies.
>
>http://news.bbc.co.uk/2/hi/business/7300017.stm
|
