Australia & New Zealand
Financial News
G-20 Calls for `Broader Policy Response' to Stave Off Deep Global Downturn Leaders from the biggest developed and emerging nations agreed more must be done to shore up a global economy sliding into recession, and laid out regulatory proposals to prevent a recurrence of the financial crisis.
Rio Tinto Delays Investor Briefings to Study Effect of Financial Crisis Rio Tinto Group, trying to prevent a $65 billion hostile takeover by BHP Billiton Ltd., delayed investor meetings scheduled for this month in Sydney and London so it can weigh the effects of the global financial crisis.
Australia, New Zealand Dollars Set for Weekly Drop on Risk Outlook, Stocks The Australian and New Zealand dollars headed for a weekly decline against the U.S. currency as global stocks were set for a weekly loss, prompting investors to sell the nations' higher-yielding assets.
Babcock's Fight for Survival Hinges on `Extremely Difficult' Asset Sales Babcock & Brown Ltd.'s fight to avoid becoming Australia's next victim of the credit crisis may depend on convincing bankers that it can sell assets in a market where others have failed.
Rakon Shares Plunge as Profit Slumps 66% on Decline in GPS Component Sales Rakon Ltd., maker of half the crystal oscillators used in the world's global positioning systems, had its biggest fall in Wellington trading after global sales slowed and first-half profit plunged 66 percent.
Bond Risk Falls in Asia-Pacific After Stock Rally in the U.S., Swaps Show The cost of protecting investors in corporate and government bonds in Asia-Pacific region against default declined after U.S. stocks rallied the most in two weeks.
ANZ Bank Will Cut More Than 500 Jobs Because of the Global Credit Crisis Australia & New Zealand Banking Group Ltd., the nation's fourth-largest bank, said it will cut more than 500 jobs to cushion the company from the impact of the global credit crisis.
Australia Stocks: Anvil, Asciano, Austal, BHP, Incitec, Kagara, Woodside The S&P/ASX 200 Index rose 50.80 points, or 1.4 percent, to 3,748.10 at the close in Sydney, paring its weekly decline to 7.5 percent. The broader All Ordinaries Index advanced 53.60 points, or 1.5 percent, to 3,726, while the futures index expiring in December gained 0.5 percent to 3,772.
Worldwide
Financial News
G-20 Calls for `Broader Policy Response' to Stave Off Deep Global Downturn Leaders from the biggest developed and emerging nations agreed more must be done to shore up a global economy sliding into recession, and laid out regulatory proposals to prevent a recurrence of the financial crisis.
Pakistan Agrees to $7.6 Billion IMF Loan to Avoid Default, Build Reserves Pakistan reached an agreement in principle with the International Monetary Fund on a $7.6 billion loan package aimed at preventing the nation from defaulting on foreign debt and restoring investor confidence.
Obama Urges Congress to Extend Jobless Benefits as Part of New Rescue Plan President-elect Barack Obama urged Congress to extend unemployment benefits as part of a ``down payment'' on a U.S. economic rescue plan as world leaders meet in Washington today to fight the global recession.
Pelosi Says Automakers Must Restructure to Ensure `Viability' in Long Term House Speaker Nancy Pelosi said U.S. automobile manufacturers need to restructure ``to ensure their long-term economic viability,'' and the head of the United Auto Workers said the government must provide aid before President- elect Barack Obama takes office on Jan. 20.
Hu Tells Leaders Chinese Economic Growth Will Help Spur a Global Recovery Chinese President Hu Jintao, speaking to leaders from the Group of 20 nations in Washington, said China can help alleviate the impact of the financial crisis and slowing global growth by stoking its own economy.
King Abdullah Pledges `Stability' in Oil Markets, More Government Spending Saudi Arabia will help alleviate global financial stress by maintaining stable oil markets and boost its own economy by funding infrastructure projects, King Abdullah said in Washington.
Canada's Harper May Propose Another Stimulus Package, Run Budget Deficit Canadian Prime Minister Stephen Harper said he is considering a proposal for an additional economic stimulus package that may generate the country's first budget deficit in more than a decade.
Bonds
Americas
U.S. Treasuries Gain for Second Week After Paulson Modifies Rescue Package Treasuries rose for a second straight week, with two-year note yields touching the lowest in five years, as economic growth worsened and Treasury Secretary Henry Paulson changed the terms of the financial-rescue plan.
Two-Year U.S Note Yield to Drop Below 1% on Risk Aversion, Barclays Says Two-year Treasury note yields will fall below 1 percent as risk aversion increases going into the end of the year, according to Barclays Capital Inc.
Textron, AEP, Honda Ask Fed to Lower the Bar for Its Commercial Paper Fund A group of companies including Textron Inc., Nissan Motor Co. and American Electric Power Co. is pressing the Federal Reserve to expand purchases of commercial paper to include them.
Credit-Default-Swap Clearinghouse to Be Running by Dec. 31 as Pact Reached U.S. regulators said at least one clearinghouse for the $33 trillion credit-default swap market will be running by year-end after they agreed on a plan to regulate the entities.
Europe
Europe Government Notes Have Eighth Weekly Gain as Region Enters Recession European two-year notes posted an eighth weekly gain after a government report showed the region's economy slipped into its first recession in 15 years amid the worst financial crisis since the Great Depression.
Spain May Restrict Bank Bond Guarantee to Euro-Denominated Debt This Year Spanish banks may be limited to euro- denominated debt if they apply to sell bonds guaranteed by the government this year.
G-20 Calls for `Broader Policy Response' to Stave Off Deep Global Downturn Leaders from the biggest developed and emerging nations agreed more must be done to shore up a global economy sliding into recession, and laid out regulatory proposals to prevent a recurrence of the financial crisis.
Iberdrola, BMW Lead Jump in European Corporate Bond Sales to 11-Week High Iberdrola SA, Spain's biggest power company, and German car maker Bayerische Motoren Werke AG showed this week that Europe's corporate bond market is open for some borrowers, provided they're willing to pay.
Asia
Japan's Five-Year Notes Complete Weekly Gain as Recession Concerns Deepen Japan's five-year notes completed a weekly gain as speculation the global economic slump is deepening boosted demand for government debt.
Bond Risk Falls in Asia-Pacific After U.S. Stock Rally, Default Swaps Show The cost of protecting Asia-Pacific bonds against default declined after U.S. stocks rallied the most in two weeks.
Malaysia's Bonds Extend Gains on Interest-Rate Cut Bets; Ringgit Weakens Malaysian government bonds rose for a second week on speculation the central bank will cut borrowing costs to spur economic growth. The ringgit declined.
Pakistan Agrees to $7.6 Billion IMF Loan to Avoid Default, Build Reserves Pakistan reached an agreement in principle with the International Monetary Fund on a $7.6 billion loan package aimed at preventing the nation from defaulting on foreign debt and restoring investor confidence.
Commodities
Oil Heads for Second Weekly Drop as Global Economic Slump Cuts Fuel Demand Crude oil fell more than $1 a barrel, and gasoline tumbled, as the global economic slowdown cut demand in the largest energy-consuming countries.
Gold, Silver Futures Rally on Inflation Expectations; Platinum Advances Gold rose the most in eight weeks on speculation that central banks will add more liquidity to unfreeze credit markets, spurring inflation and boosting the appeal of the precious metal. Silver and platinum also gained.
Copper May Fall Next Week as China's Slowdown Curbs Demand, Survey Shows Copper may drop next week as slowing growth curbs demand in China, the world's largest buyer of the metal used in cars and homes.
Corn, Soybeans Rise as U.S. Farmers Withhold Newly Harvested Inventories Corn and soybeans rose on speculation that U.S. farmers, the world's biggest growers and exporters, are withholding newly harvested supplies after prices tumbled to one-year lows.
Hog Futures Decline as Consumers May Pick Chicken Over Pork; Cattle Drop Hog prices fell the most in two weeks on speculation that U.S. consumers may shift to chicken from pork after the poultry price tumbled. Cattle futures dropped, erasing an earlier gain.
Cotton Rallies as Dollar Slump, Lowest Price in 6 Years May Attract Buyers Cotton climbed, posting its first weekly gain in almost a month, as the dollar fell and on speculation that the lowest prices in six years will attract some buyers.
Currencies
Yen Gains for Second Week as Drop in Stocks Reduces Appeal of Carry Trade The yen rose against the euro and the dollar for a second week as falling stock market prices prompted speculation investors will sell higher-yielding assets and pay back low-cost loans in Japan's currency.
Emerging Market Currencies Hit by $1 Trillion `Hurricane': Chart of Day Emerging markets may experience about $1 trillion in investor outflows, or about a fifth of the total capital invested in the sector between 2003 and 2007, as risk appetite implodes during the worst financial crisis in decades, according to the Royal Bank of Scotland Group Plc.
Americas
G-20 Leaders May Agree on Stimulus, Smooth Over Differences on Regulation Leaders from the biggest developed and emerging nations agreed more must be done to shore up a global economy sliding into recession, and laid out regulatory proposals to prevent a recurrence of the financial crisis.
Canadian Dollar Depreciates on Concern Global Economic Slump Will Deepen Canada's currency depreciated as commodity prices dropped in the face of renewed pessimism over global economic growth.
Brazil's Real Rises as Stock Gains Boost Demand for Emerging-Market Assets Brazil's real rose for the first time this week as gains in European and Asian stocks after a U.S. rally stoked appetite for emerging-market assets.
Europe
Brown Says U.K. Conservatives Must Be `Responsible' in Commenting on Pound British Prime Minister Gordon Brown urged the opposition Conservative Party to be ``responsible'' in commenting on currencies after it warned the government runs the risk of triggering a ``collapse'' in the pound.
Ukraine's Hryvnia May Fall 4 Percent by Year-End on IMF Demands, ING Says Ukraine's hryvnia may weaken almost 4 percent against the dollar by year-end as the International Monetary Fund urges the country's central bank to ease its support of the currency, according to ING Groep NV.
Ruble Posts Biggest Weekly Decline Against Currency Basket Since Sept. 5 The ruble dropped the most this week for more than two months after Russia's central bank let the currency weaken against its dollar-euro basket amid an exodus of foreign capital.
Asia
Pakistan Agrees to $7.6 Billion IMF Loan to Avoid Default, Build Reserves Pakistan reached an agreement in principle with the International Monetary Fund on a $7.6 billion loan package aimed at preventing the nation from defaulting on foreign debt and restoring investor confidence.
Asian Currencies: Rupiah Leads Weekly Losses on New Currency Restrictions Indonesia's rupiah slumped this week, touching the lowest level since 2001, on concern restrictions on currency purchases will deter investors from buying the nation's assets. South Korea's won posted its second weekly loss.
Malaysia Ringgit Rises on Stock Gains, Central Bank Looking to Spur Growth Malaysia's ringgit rose, snapping a three-day loss, on speculation global investors are buying back the nation's stocks encouraged by signs the central bank is looking to spur economic growth. Government bonds gained.
Emerging Markets
G-20 Calls for `Broader Policy Response' to Stave Off Deep Global Downturn Leaders from the biggest developed and emerging nations agreed more must be done to shore up a global economy sliding into recession, and laid out regulatory proposals to prevent a recurrence of the financial crisis.
Pakistan Agrees to $7.6 Billion IMF Loan to Avoid Default, Build Reserves Pakistan reached an agreement in principle with the International Monetary Fund on a $7.6 billion loan package aimed at preventing the nation from defaulting on foreign debt and restoring investor confidence.
Ecuador's Correa Says He Won't Make Payments on Debt Deemed `Illegitimate' Ecuadorean president Rafael Correa said he'll suspend payments on foreign debt he deems ``illegitimate'' should an upcoming report find there is legal basis to do so.
Group of 20 Says It Seeks Breakthrough on Doha Trade Round by End of Year The Group of 20 said they will seek a deal by the end of the year on concluding the seven-year Doha round of global trade talks.
King Abdullah Pledges `Stability' in Oil Markets, More Government Spending Saudi Arabia will help alleviate global financial stress by maintaining stable oil markets and boost its own economy by funding infrastructure projects, King Abdullah said in Washington.
China Should Buy Gold to Diversify Foreign-Exchange Reserves, Group Says China, the second-biggest overseas holder of U.S. Treasuries, should increase its bullion holding to diversify its reserves because the dollar may decline, the country's gold association said.
IMF's War Chest, Surveillance Role Expand to Tackle Global Economic Crisis The International Monetary Fund, struggling a year ago with less relevance and revenue, emerged from Group of 20 talks with more money to lend and a mandate to step up its monitoring of a global financial system in crisis.
Energy
Crude Oil Declines More Than $1 as Global Economic Slowdown Reduces Demand Crude oil fell more than $1 a barrel, and gasoline tumbled, as the global economic slowdown cut demand in the largest energy-consuming countries.
Barclays Expands Commodities Team to 300, Expects `Bull Cycle' to Resume Barclays Capital expanded its commodities team by about a third to more than 300 people this year, anticipating a resumption of the ``bull cycle'' in raw materials.
Pemex May Issue First External Oil Exploration Contract by End of 2009 Petroleos Mexicanos may award the company's first external oil production and exploration contract by the end of next year, as it targets producers such as Exxon Mobil Corp., Royal Dutch Shell Plc and Chevron Corp.
Conergy Plans $507 Million Share Sale to Repay Loans That Sapped Earnings Conergy AG, Germany's second-largest solar company, is seeking to raise 399.3 million euros ($506.5 million) selling new shares to pay off loans that have sapped earnings this year.
OPEC Is `Very Likely' to Recommend Oil Production Cut, Iran's Khatibi Says OPEC, the supplier of 40 percent of the world's oil, is ``very likely'' to recommend a further cut in production this month to halt a slide in prices, Iran said.
Nymex Gasoline Futures Drop as Economic Slowdown Crimps Demand for Fuels Gasoline futures fell for the third time in four days as the global economic slowdown cut demand in the largest energy-consuming countries.
Imperial Oil Shuts Sarnia Refinery's Main Boiler for Unplanned Maintenance Imperial Oil Ltd., Canada's largest refiner, shut a boiler for unscheduled maintenance at its Sarnia, Ontario, refinery.
Gazprom Says It Has No Interest in Buying a 20 Percent Holding in Repsol OAO Gazprom, the world's largest gas company, said it's not interested in buying 20 percent of Spanish energy company Repsol YPF SA.
OPEC's Slowing Investment May Cause Disruptions in Energy Supply, IEA Says The International Energy Agency warned that slower investment in new oil projects by OPEC member countries in the aftermath of the global economic slowdown may cause an energy-supply crunch in the next two decades.
Barclay Capital's Kantor Says Oil Is `Overshooting' on Downside: Video Larry Kantor, head of research at Barclays Capital Inc., talks with Bloomberg's Paul Gordon from Singapore about his investment strategy for U.S. stocks and corporate bonds, and the outlook for the dollar and crude oil prices. (Source: Bloomberg)
BNP's Nabarro Says He Likes Telecoms, Pharmaceuticals, Oil, Gas: Video Willem-Mark Nabarro, head of European equities at Exane BNP Paribas Ltd., talks with Bloomberg's Catherine Yang from Singapore about the outlook for this weekend's Group of 20 nations summit in Washington, and Nabarro's investment strategy. (Source: Bloomberg)
U.S. Automakers Need an Emergency Bankruptcy: Commentary by David Pauly A federal welfare package for the U.S. auto industry's Little 3 is inevitable.
Nymex Gasoline Futures Drop as Economic Slowdown Crimps Demand for Fuels Gasoline futures fell for the third time in four days as the global economic slowdown cut demand in the largest energy-consuming countries.
Imperial Oil Shuts Sarnia Refinery's Main Boiler for Unplanned Maintenance Imperial Oil Ltd., Canada's largest refiner, shut a boiler for unscheduled maintenance at its Sarnia, Ontario, refinery.
Gazprom Says It Has No Interest in Buying a 20 Percent Holding in Repsol OAO Gazprom, the world's largest gas company, said it's not interested in buying 20 percent of Spanish energy company Repsol YPF SA.
OPEC's Slowing Investment May Cause Disruptions in Energy Supply, IEA Says The International Energy Agency warned that slower investment in new oil projects by OPEC member countries in the aftermath of the global economic slowdown may cause an energy-supply crunch in the next two decades.
Funds
Carlyle Says Novolipetsk Drops $3.5 Billion Buyout of Its Steelmaking Unit The Carlyle Group, the world's second-largest private-equity firm, said OAO Novolipetsk Steel has terminated an agreement to buy its John Maneely Co. steelmaking unit for about $3.53 billion.
Heebner Sells Energy Holdings, Purchases Shares of Citigroup, Wells Fargo Kenneth Heebner, the fund manager who beat all peers last year by buying energy stocks and selling financials, reversed course in the third quarter, snapping up Citigroup Inc., Wells Fargo & Co. and Bank of America Corp.
Fidelity to Cut 1,700 Jobs in First Quarter After Firing 1,300 Last Week Fidelity Investments, the world’s largest mutual-fund manager, will eliminate about 1,700 jobs in the first three months of 2009, adding to dismissals that started this week as it confronts an eroding asset base.
Apollo's Realogy May Default on Loans, Offers to Exchange Debt at Discount Realogy Corp., owner of the Century 21 and Coldwell Banker brands, is at risk of violating the terms of its bank loans and is offering to exchange about $1.1 billion of bonds at a discount for new debt.
Lehman Asks U.S. Judge to Approve Accord for Access to European Assets Lehman Brothers Holdings Inc. and its European insolvency administrators reached an agreement that will let the U.S. firm manage billions of dollars in idled trading positions, removing a key obstacle in Lehman's record bankruptcy.
New Star, RAB Capital Shrink to Cope With Accelerating Client Defections New Star Asset Management Group Ltd. and RAB Capital Plc, U.K. firms that went public on the backs of star money managers, are shrinking because of client defections.
Schwab, Ameritrade Handle Record Trades as Investors Ditch Money Managers Charles Schwab Corp., TD Ameritrade Holding Corp. and E*Trade Financial Corp., the largest publicly traded U.S. online brokers, are handling more trades after mutual fund withdrawals reached a record one year into the bear market.
Reserve Primary Money Fund Leaves Investors at Odds Over Liquidation Plan Two months after seizing up, Reserve Primary Fund hasn't disclosed how it will divvy up as much as $785 million in losses among investors. Its decision will test rules for pricing money-market funds, outrage one of two groups of investors and almost certainly be challenged in court.
Shareholders Pay Price as Barclays, UniCredit Raise Capital Like `Casinos' Shareholder rights in Europe may be the next casualty of the global financial crisis.
Venture Capitalists Have Flashbacks to 2001 as Institutions Dump Stakes Universities and pension managers are dumping their holdings in venture-capital funds, depressing values by as much as 50 percent as the financial crisis extends to private companies.
Municipal Bonds
Philadelphia Leads Cities Seeking Treasury Funds as Crisis Widens Deficits Philadelphia, Atlanta and Phoenix are asking the U.S. Treasury Department for part of the $700 billion financial rescue package to help them finance construction projects and pay bills.
Assured Guaranty to Buy Dexia's Financial Security Unit for $722 Million Assured Guaranty Ltd., the bond insurer backed by billionaire Wilbur Ross, agreed to acquire