Neverending Bank Losses, Volatile Stocks

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Author: 123jump.com Staff
123jump.com
Last Update: 4:59 PM EST February 15 2008

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U.S. stocks traded in a tight range. UBS analyst revised his estimate from total loan losses to $350 billion from $150 billion on higher losses from assset backed securities, commercal mortgage securities, leveraged loans, and credit card loans. Import price index in January rose 1.7% sparking worries that inflation may be on the rise. General business condition index for New York region manufacturers declined as reported by the NY Fed, worst reading in three years.

Rio warns of coal delivery delays

The world''s third- biggest mining company, Rio Tinto Group today indicated that it may miss coal deliveries from its Hail Creek mine in Queensland due to heavy rains, adding to supply disruptions in Australia, the biggest exporter, according to a report on Bloomberg and AAP.

Rio Tinto''s coal unit spokeswoman, Alison Smith told reporters by phone that Blair Athol and Kestrel mines, which were also affected by the rains, should meet their supply commitments.

At least six Queensland coal suppliers have expressed caution on production due to the rains that affected the Bowen Basin in January. Spot prices for power-station coal and the type used in steelmaking have shot to a record as a result.

Spot prices for coal used in steelmaking have jumped to $270 a ton almost triple the annual contract price, while the power-station coal spot price climbed to $150.

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