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SG Rights at 39% Discount, Banks Fall
Feb 11, 5:19 PM EST |
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| European markets declined after investors sold bank and insurance companies stocks. AIG revised its subprime loss 400% to $5.9 billion. |
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| Societe Generale priced its rights offering at a discount of 39%, more than expected, as investors braced for more losses in the financial sector. SG fell 4% after the issue of rights. Stocks in the sector fell after a comment from the German Finance Minister indicated that subprime loan losses could reach $400 billion. UBS and Commerzbank droped 3% and Aviva fell 4%. IKB Deutsche Bank fell 22% on the worries that bank will report more losses. Russia reported trade surplus declined by 5%. |
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Late Rally in Stocks; Gold, Oil Rise
Feb 11, 9:49 PM EST |
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| Metal prices closed higher as copper and gold increased. China forecasted more storms in the next 10 days signaling more copper disruption problems. |
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| U.S. stocks rallied in the late afternoon after a steady rise in metals, oil and gas, precious metals prices. Nasdaq led the three poplular indexes with a rise of 0.6%. Oil climed 2% as Delaware based Valero refinery was closed for a power failure. Chevron and Bank of America were added to Do Jones Industrial Average. AIG tumbled 12% after it revised its estimate of losses to $5.9 billion from $1.1 billion and said that it can not value the losses in December 2007. |
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AIG Down 12% on Revised Loss of $5.9 Billion
Feb 11, 3:23 PM EST |
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| AIG sharply increases its loss in a portfolio of swaps in securities linked to credit defaults as it changes its method of calculations. |
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| American International Group Inc reported that it may lose $5.96 billion in a portfolio of credit default swaps on securities based on home loans which earlier was estimated to have a loss of only $1.604 billion. AIG stock fell 12%. PriceWaterhouseCoopers also said that there is a material weakness in the internal controls at valuing these securities, which prompted Fitch, rating agency to put the insurer on a possible downgrade from its current AA rating. |
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UK Trade Deficit, Producer Prices Up
Feb 11, 2:21 PM EST |
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| copper price for the future month trading rose 2% on the expectations of lower supply from China as storms disrupt production. |
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| December month deficit in goods and services increased to £4.8 billion and for the year jumped 10% to £51 billion. Separately, ONS also reported today that output price annual inflation for all manufactured products jumped 5.7% the most since 1991, while input price annual inflation rose to 19.1%, the most in 12 years, from 12.2% in January. |
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Chevron, Bank of America Added to Dow
Feb 11, 1:52 PM EST |
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| With the rising importance of energy and financial services, Chevron and Bank of America will replace Honeywell and Altria in Dow Jones Index.. |
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| U.S. stocks traded in a tight range after the European banks declared more losses related to subprime and leveraged loans. Dow Jones replaced Altria and Honeywell from the index with Chevron and Bank of America. The index has been rebalanced for the first time after three years since its last change when three out of thirty components were replaced. |
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Yahoo Rejects $45 billion Offer from Microsoft
Feb 11, 12:41 PM EST |
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| Yahoo formally rejects $45 billion offer from Microsoft as it evaluates its options to stay independent and negotiates higher offer from Microsoft. |
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| Yahoo rejected $45 billion offer form Microsoft and held out for a better deal from Microsoft in the abscence of competing bid. Yahoo is looking for at least $50 billion or $34 per share. Yahoo is also looking for its to stay independent and may consider outsourcing its search business to Google and acquire portal AOL online ad business. Yahoo edges higher and Microsoft falls after the formal deal rejection. |
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India Down 5%, Reliance Power Drops 17%
Feb 11, 10:00 AM EST |
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| Reliance Power fell 77 rupees from its initial public offer price of 450 rupees on the first day of trading. |
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| Stocks in Mumbai trading closed sharply lower after similar declines across Asia and 17% fall in Reliance Power stock on the first day of trading. The meeting of finance ministers from wealthy nations lowered its outlook for the global economic growth. The ministers also raised their estimate of sub prime losses by ten times to $400 billion in the banking system from their earlier estimate only four months ago. |
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Asian Markets Fall on G7 Worries
Feb 11, 8:50 AM EST |
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| Financial markets in Asia dropped after a gloomier outlook from the G7 ministers. The statement noted that world economic growth is slowing. |
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| Financial markets in Asia fell sharply after a gloomy statement from the G7 Finance Ministers meeting in Tokyo. The dim view of the world economic outlook kept investors in Asia worried. India, Australia, and Hong Kong fell sharply. Banks in Hong Kong fell after Goldman Sachs lowered target prices. Hong Kong fell 3.6%, India lost nearly 5%, and Australia declined 2%. G7 ministers raised their estimate sub prime loan losses ten times to $400 billion from its earlier estimate in October 2007. |
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