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Banks and Autos Drag European Stocks
Apr 21, 5:56 PM EDT |
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| The Bank of England announced a plan to exchange mortgage bonds with the UK government bonds to improve financial liquidity. |
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| ECB President Trichet in its annual report 2007 said that the ongoing fiancial market is likely to persist as banks remain weary of lending each other. Banks in Europe and the U.S. are still heavily leveraged and are likely to suffer widening losses from the current U.S. credit market crisis. European stock markets fell as oil traded near record level. Autos and financials fell. Renault, Nestle, and Casino Guichard reported quarterly sales. |
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More Banks Raise Capital, Oil Above $117
Apr 21, 5:01 PM EDT |
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| Banks continue to suffer from rising losses and write downs. National City raised $7 billion, Citigroup is likely to sell bonds of $5 billion. |
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| Bank of America earnings plunged 76% on mounting subprime and mortgage losses and it provisioned $6 billion to cover asset write downs. Citigroup plans to sell at least $5 billion of securities to bolster its captial base. National City, the tenth largest U.S. bank cut its dividend to 1 cent from 21 cents and reported a quarterly loss. The embattled bank also sold stock at 40% discount to raise $7 billion. |
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BoE £50 B Plan, UK Stocks Fall
Apr 21, 1:46 PM EDT |
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| The Bank of England offered to exchange treasury bills for mortgage loans and hoped the measure will improve liquidity in the financial system. |
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| The Bank of England unveiled a plan to exchange £50 billion of high quality mortgage loans with UK Treasury bills for a period between one and three years. Private economists said that the plan may not be adequate. In London trading FTSE 100 stocks fell 0.06% to 6,053.00. ITV led the gainers in the index with a rise of 6% and Admiral Group of 4.5%. Hammerson led decliners in the index with a loss of 5% followed by 4% loss in British Air. |
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U.S. Stocks Struggle, National City Plunges
Apr 21, 4:41 PM EDT |
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| National City announced a plan to raise $7 billion and cut its annual dividend to 1 cent from 21 cents. |
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| U.S. stocks fell after Bank of America earnings plunged 76% and reported a provision of $6 billion for loan losses. National City, Ohio based lender nearly eliminated its dividend and raised $7 billion at $5 per share, 40% from its stock price on Friday. Arch Coal jumped 5% after it reported surging earnings and revenues on rising coal prices. Sears Holdings fell after Bank of America declined to renew its credit line. |
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RBI Hike CRR by 0.5%
Apr 21, 11:51 AM EDT |
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| Reserve Bank in India announced a steep hike in cash reserve requirements for banks to stem the rising liquidity and fight the surging inflation. |
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| Stocks in India rallied in sympathy with regional gains. Sensex in Mumbai trading rose 1.6% to 16,739. The Reserve Bank of India ahead of its annual fiscal policy review announced 0.5% increase in cash reserve ratio in an effort to cool the inflation. Wholesale and consumer price inflation indexes have been rising rapidly and are now running near twice the target rate set by the government. Titagarh wagon, new issue, was the most active on BSE trading. |
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Bank of America Earnings Plunge 77%
Apr 21, 4:39 PM EDT |
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| Bank of America kept its dividend at 64 cents per quarter but reported sharp decline in earnings. Non-performing assets nearly doubled. |
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| Bank of America earnings in the first quarter declined 76% to $1.21 billion from $5.26 billion on revenue decline of 6% to $17.30 billion. The bank provisioned $6.01 billion compared to $4.78 billion a year ago on rising trading losses and growing non-performing assets. Nonperforming assets were $7.83 billion, or 0.90 percent, of total loans, leases and foreclosed properties at quarter-end compared to $5.95 billion, or 0.68%, at December 31, 2007 and $2.06 billion, or 0.29%, at the end of Q1. |
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Ping An, Refiners Lift HK Stocks
Apr 21, 4:38 PM EDT |
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| Talks of China reimbursing oil refiners to fund curent losses lifted select oil stocks. Ping An rose on private placement with banks. |
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| Ping An is reported to have scrapped its plan to sell stock in public offering and instead sell them a private placement through banks. Ping An rose 5%. Sinopec estimated first quarter profit is likely to fall 50% from a year ago on rising crude oil cost. Separately, China is expected to reimburse refiners taxes on crude oil import and significant losses from the price ceiling. Chinese refiners are required to sell petrol at a price fixed by the government. In addition COSCO jumped 7%. |
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Nikkei Index in Tokyo Rises
Apr 21, 4:37 PM EDT |
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| Stocks in Tokyo edged higher after a string of positive earnings from seveal U.S. companies. Weak yen also lifted Honda and other exporters. |
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| Stocks in Tokyo edged higher on growing speculation that U.S. subprime loan losses may remain at current levels. Strong earnings from Caterpillar lifted stocks of Kubota and Komatsu. Honda led gainers in the Nikkei 225 index with a surge of 8% followed by a rise of 7% in NEC. Chip maker, NEC reported better than expected operating profit in 2007. |
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