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Berlusconi Returns, Banks Fall Again
Apr 14, 5:11 PM EDT |
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| Germany cut its 2008 growth estimate to 1.6% from 2.2% on the ongoing credit market turbulence. |
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| European markets fell across the region on new worries related to the banking sector. Wachovia Corp, the fourth largest bank in the U.S., reported $2 billion in asset write down and forced to raise $7 billion. Banks in Germany, France, and UK fell. Royal Philips reported earnings of 219 million euros, lower than expectations. Volkswagen first quarter sales increased 7% on sharp rise in sales in China and Brazil. Berlusconi leads in the race to be the next Prime Minister. |
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Banks Fall, Oil Complex Rises
Apr 14, 4:26 PM EDT |
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| Banks fell sharply after Wachovia reported stock sale at $24 per share and cut its dividend by 41%. Oil complex stocks rose on record oil prices. |
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| Wachovia Corp reported quarterly loss in the first quarter, wrote down its assets by $2 billion, cut its dividend by 41% and will raise $7 billion in fresh capital. The news sent market averages and banking sector stocks lower. In the commodities market, sugar, crude oil and gasoline increased, lifting stocks in the energy sector. Petrobras, in Brazil, surged on an oil field find. Berlusconi returned to govern Italy, for the third time. |
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Virgin Blue Plunges 22%, Stocks Down 2%
Apr 14, 3:44 PM EDT |
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| Toll Holdings fell 5% after it withdrew its plan to sell its controlling stake in Virgin Blue. Virgin plunged 22% |
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| ANZ launches an internal inquiry to review its securities lending business and its relationship with the collapsed Opes prime broker.
Virgin Blue plunged 22% to a record low after its controlling shareholder Toll Holdings Ltd decided not to sell its stake on lack of investor interest. Virgin Blue last week slashed its net income forecast to less than $140 million for the year ending in June 30, down from $216 million a year earlier. Of the ASX 200 index stocks, Toll Holdings Ltd led decliners. |
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UK Producer Price Rises, Stocks Down
Apr 14, 4:15 PM EDT |
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| Sharp rise in producer price index in March left investors worried that inflation in the country may be rising at a faster pace than estimated. |
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| The ONS reported that the output price index for domestic sales of manufactured products rose 6.2% in the year to March, compared with the rise of 5.9% in the year to February. The rising prices at producer level dragged stocks sharply lower. FTSE 100 index stocks fell 1.08% or 63.9 to 5,831.60. Whitbread led advancers in the FTSE 100 index shares with a rise of 2.4% followed by increases in SABMiller of 1.7% and in HBOS of 1.2%. Friends Provident and Carphone Warehouse led decliners. |
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China Forex Reserve and Inflation Up
Apr 14, 4:13 PM EDT |
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| China reported foreign exchange reserve at the end of first quarter jumped 40% to $1.7 trillion from a year ago. Inflation remains high. |
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| China''s foreign currency reserves jumped to $1.68 trillion at the end of the first quarter, 40% rise from a year ago. The sharp rise in foreign reserves is fueling inflation and attracting speculative capital to China. Investors have to come to believe that China will have to strengthen its currency against dollar and increase interest rate to slow down economic expansion. In Hong Kong trading the Hang Seng Index fell 3.47% or 856.59 at 23,811.20. |
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Wachovia Loss Sends Stocks Lower
Apr 14, 12:43 PM EDT |
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| Wachovia reported $350 million loss and prepared to raise $7 billion to replenish its capital base. |
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| U.S. stocks edged lower after Wachovia cut its dividend by 41% and proposed to raise as much as $7 billion through convertible preferred stock offering. Wachovia also reported a loss in the first quarter and asset write down of $2 billion. UK media reports suggested that Citigroup is likely to write down assets of $12 billion and Merrill Lynch of $3 billion. Blockbuster proposed $1 billion in cash buyout for Circuit City. |
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Japan and Asia Stocks Decline
Apr 14, 4:11 PM EDT |
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| Stocks in Japan and Asia fell after gloomy near term forecast from policy leaders of wealthy nations. |
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| Stocks in Japan and Asia fell after the release of world economic outlook from a meeting of policy makers at the IMF and World Bank. The gloomy near term outlook added to the rising loss estimates at Citigroup and Merrill Lynch. Media reports in the UK suggested that two financial firms are likely to report losses in the quarter and a write-down of $15 billion. Nikkei 225 index in Tokyo fell 3% and Topix declined 2.5%. |
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