Worldwide
Financial News
Paulson Clashes With Congress, Warns Against Using Bailout as a `Panacea' Treasury Secretary Henry Paulson rejected using the government's financial-rescue program as a ``panacea'' for economic difficulties, clashing with lawmakers who want the funds to help beleaguered homeowners.
U.S. Producer Prices Plunge 2.8%, Most on Record, as Global Demand Shrinks Prices paid to U.S. producers plunged in October by the most on record as the faltering global economy caused demand for commodities to dry up.
Stocks in U.S. Retreat; S&P 500 Index Falls Below Lowest Close Since 2003 U.S. stocks slid, sending benchmark indexes below their lowest closing level since 2003, on a record slump in homebuilder confidence and growing concern banks will report more losses.
Home Prices Tumble in 80% of U.S. Cities as Foreclosures Drive Down Values Home prices fell in four out of every five U.S. cities in the third quarter, a record spurred by distressed foreclosure sales across the country.
Berkshire Credit Risk on AAA-Rated Debt Soars in Sign of Investor Anxiety The cost of protecting against default by Warren Buffett's AAA-rated Berkshire Hathaway Inc. has almost tripled in two months, a sign of just how skittish investors have become amid the global financial crisis.
Falcone's Harbinger Capital Faces Potential $200 Million Loss on Navistar Harbinger Capital Partners, the New York-based hedge-fund firm run by Philip Falcone, has almost $200 million in potential losses on bets that Navistar International Corp.’s stock price would rise.
Billionaire Adolf Merckle Said to Need as Much as $1.4 Billion in Capital Germany’s billionaire Merckle family, stung by losses on Volkswagen AG shares, needs as much as 1.1 billion euros ($1.4 billion) in financing to avert insolvency of its investment company, four people familiar with the situation said.
Australia & New Zealand
Financial News
Rio Tinto Receives European Union Statement of Objections to BHP Takeover Rio Tinto Group, the world’s second- largest iron ore exporter, received the European Union’s statement of objections to BHP Billiton Ltd.’s $62 billion hostile offer.
Australia's 2008 Sugar Crop May Fall 10% on Flooding, High Fertilizer Cost Sugar production in Australia, the world's third-largest exporter of the sweetener, may be 10 percent smaller than last year as wet weather and reduced use of fertilizers lowered the sweetener's content in sugar cane, an industry group said.
Macquarie Profit Declines 43%; Shares Gain After Earnings Beat Estimates Macquarie Group Ltd., Australia's biggest securities firm, posted a smaller-than-expected drop in profit and said earnings may withstand the credit crunch, sending the shares to their biggest gain in two months.
Australia's Reserve Bank Saw Benefit of Moving Quickly to `Neutral' Rate The Australian central bank's interest rate cut this month was to move ``monetary policy quickly to a neutral position,'' policy makers said, stoking speculation they'll reduce borrowing costs again in two weeks.
Oil Falls a Third Day on Speculation U.S. Supplies Rose, Demand Dropped Crude oil fell to the lowest in almost 22 months on forecasts that a report will show U.S. oil supplies increased for an eighth week as a recession erodes global demand.
Australia Bond Risk Will Rise on Delay of U.S. Rescue, Deutsche Bank Says Australia’s benchmark measure for corporate bond risk will probably rise on concern delays in execution of the U.S. financial rescue plan will slow improvement in the world’s biggest economy, according to Deutsche Bank AG.
Gold Falls a Second Day as Global Economy's Decline Damps Inflation Risk Gold fell for the second straight day on speculation that the slumping global economy will reduce demand for commodities, eroding the appeal of the precious metal as a hedge against inflation. Platinum gained.
BHP Profit Forecast Cut 31% by Macquarie on Commodity Prices, Production BHP Billiton Ltd., the world's largest mining company, had its 2009 profit forecast reduced 31 percent by Macquarie Group Ltd. because of declines in commodity prices and cuts to production.
Stocks
Americas
U.S. Stocks Retreat, Indexes Falls Below Lowest Closing Levels Since 2003 U.S. stocks slid, sending benchmark indexes below their lowest closing level since 2003, on a record slump in homebuilder confidence and growing concern banks will report more losses.
Bed Bath & Beyond, Citigroup, Research In Motion, Saks: U.S. Equity Movers The following companies are having unusual price changes in U.S. trading. Stock symbols are in parentheses, and share prices are as of 1:45 p.m. in New York.
Brazilian Stocks Fall, Led by Banks, Retailers, Steelmakers; Bolsa Drops Brazilian stocks fell for a third day, led by banks and steelmakers, on concern the slowing economy will reduce demand for everything from car loans to commodities.
Canadian Stocks Decline, Led by Transcanada, Enbridge, as Oil Rally Fades Canadian stocks fell a third day, erasing an earlier gain, after a rally in crude-oil prices faded. Pipeline companies and utilities led the drop.
S&P 500 Failure to Rebound From `Retest' Points to New Lows, Charts Show The Standard & Poor's 500 Index is poised to extend this year's 42 percent drop after a rally from last week's five-year low lasted just one day, say analysts who study charts of trading patterns and prices to forecast changes in stocks.
Europe
European Stocks Advance, Led by Alcatel-Lucent; Total, Shell Shares Climb European stocks rose as higher oil prices lifted energy producers and better-than-expected earnings from Hewlett-Packard Co. and Home Depot Inc. eased concern the recession will snuff out profits.
U.K.'s FTSE 100 Index Rises, Led by Energy Companies; BP and Shell Advance U.K. stocks rose, led by energy companies, after oil rallied and a bigger-than-expected decline in inflation bolstered speculation the Bank of England will cut interest rates to revive economic growth.
Persian Gulf Shares Fall on Economic Concern, Oil; Abu Dhabi's Index Gain Persian Gulf shares declined, as global markets retreated on economic concern and Citigroup Inc. said Dubai is the most vulnerable in the region to the global slowdown. Abu Dhabi's measure advanced.
Russia's 30 Trading Suspensions Hand `Weapon' to London, Micex CEO Says More than 30 trading halts at the Micex Stock Exchange in the past two months have driven Russian equities trading to competitors such as the London Stock Exchange, Chief Executive Officer Alexei Rybnikov said.
Asia
Asian Stocks Slump for Second Day as Job Losses Mount; Banks Lead Decline Asian stocks fell for a second day, led by financial and technology companies, on heightening concern that the global recession is worsening.
Japan Shares Drop on Developer Earnings Concern; Mitsubishi Estate Slumps Japan's stocks fell, led by developers and insurance companies, on concern the slowing economy will reduce property demand and push up securities losses on company balance sheets.
Indonesian Stocks Fall Most in Three Weeks as Rupiah Slumps to 10-Year Low Indonesia's key stock index dropped the most in three weeks led by financial companies after the rupiah slumped to a 10-year low, stoking inflation and reducing the prospect of lower borrowing costs.
Malaysian Exchange Sees `Tough' Market in 2009 as Trading Slumps, CEO Says Bursa Malaysia Bhd., operator of the nation’s stock exchange, said the slump in trading volumes will continue into next year as the global economic recession deepens.
Bonds
Americas
Treasury 2-Year Note Yields Drop to 5-Year Low as Producer Prices Plunge Treasury two-year note yields dropped to the lowest in five years after a government report showed prices paid to U.S. producers plunged in October by the most on record as weakening global growth caused demand for commodities to dry up.
American Express Delinquencies Rise to Record as U.S. Unemployment Rises American Express Co. had its highest monthly increase in credit-card delinquencies on record in October as jobless claims rose, according to FBR Capital Markets.
China Overtakes Japan as Largest Owner of Treasuries as Demand Increases China surpassed Japan in September to become the biggest foreign holder of U.S. Treasuries, as foreign investors sought the relative safety of government debt as stocks plunged 9.1 percent that month.
Two Commercial Mortgages May Default As Economy Swoons, Credit Suisse Says Borrowers on two commercial mortgages that were bundled with other real estate debt and sold as bonds are about to default, according to Credit Suisse Group AG.
Europe
European Two-year Government Note Yield Holds Near Lowest Level Since 2005 European two-year government notes were little changed, with the yield near the lowest level in more than three years as European Central Bank member Gertrude Tumpel-Gugerell predicted a ``sharp slowdown'' in economic growth.
Bank Bond Risk Increases to One-Month High as TARP Hurts Mortgage Assets The cost of protecting bank bonds from default rose to the highest in almost a month as prices of mortgage-linked securities tumble following Treasury Secretary Henry Paulson's changes to the Troubled Asset Relief Program.
Asia
Japan's 30-Year Bonds Drop Most This Month on Concern Supply Will Increase Japanese 30-year bonds fell by the most this month on speculation the government will issue additional debt to help finance economic stimulus measures.
Asian Nations to Boost Sales of Local Bonds, Asian Development Bank Says Asian governments will increase sales of local-currency bonds to raise money for their economic- stimulus packages as overseas funding dries up, the Asian Development Bank said.
Corporate, Government Bond Risk Rises on Recession Concerns, Bank Job Cuts The cost of protecting corporate and government bonds in Japan and Asia rose in thin trade on concerns that more countries will suffer economic recession and as banks cut jobs.
Australia Bond Risk to Increase on U.S. Bank Rescue Delay, Deutsche Says Australia’s benchmark measure for corporate bond risk will probably rise on concern delays in execution of the U.S. financial rescue plan will slow improvement in the world’s biggest economy, according to Deutsche Bank AG.
Commodities
Crude Oil Futures Fall on Speculation U.S. Supplies Rose, Demand Dropped Crude oil fell to the lowest in almost 22 months on forecasts that a report will show U.S. oil supplies increased for an eighth week as a recession erodes global demand.
Gold Falls for Second Day as Slow Economy Damps Inflation; Platinum Gains Gold fell for the second straight day on speculation that the slumping global economy will reduce demand for commodities, eroding the appeal of the precious metal as a hedge against inflation. Platinum gained.
Aluminum Extends Drop to Three-Year Low as Weak Demand Bolsters Stockpiles Aluminum declined for a third consecutive day in London, trading at its lowest in three years, as inventories jumped on weaker demand.
Sugar Falls in New York as Global Recession Hurts Demand, Dollar Climbs Sugar fell on speculation a global recession is hurting demand and as a strengthening dollar increased the cost of commodities for importers.
Platinum Jewelry Demand to Climb in Asia Next Year, Johnson Matthey Says Platinum demand for jewelry in China and Japan, the two largest consumers, will probably rise next year regardless of a global recession after prices fell from a record and as metal recycling declines, Johnson Matthey Plc said.
Currencies
Dollar Rises Against Euro as Investors Take Refuge in U.S. Government Debt The dollar rose against the euro as stocks retreated below their lowest closing levels since 2003, increasing demand for the safety of U.S. government debt.
Brazilian, Korean Reserves Failed as `Shock Absorber,' Merrill Lynch Says Foreign reserves have failed as a financial ``shock absorber'' during the global credit crunch, casting doubt on the practice of using holdings to protect currencies, according to Merrill Lynch & Co.
Americas
Brazil's Real Falls for 2nd Day on Bets Recession Will Sap Foreign Demand Brazil's real fell for a second day on speculation that a global recession will reduce demand for local export products and financial assets.
Chilean Peso Declines on Risk Aversion, Copper: Latin America Currencies Chile's peso declined for a second day as copper prices fell and investor aversion to higher- yielding assets increased on concern a global recession may deepen.
Nafta Overhaul May Be Delayed by Obama as Economy, China Trade Loom Larger Barack Obama, who threatened during the presidential campaign to withdraw from the North American Free Trade Agreement unless he could renegotiate it, may delay reworking the accord as he focuses on the U.S. economic crisis.
Europe
Pound's `Significant' Drop Isn't Yet a Crisis, Ex-Chancellor Lamont Says Former Chancellor of the Exchequer Norman Lamont said the pound's drop will help the British economy as long as it doesn't turn into a ``run'' on the currency.
Shekel Proves Harder Currency as Fischer Economy Defies Global Unraveling Leah and Dov Yaakoby got a surprise wedding gift when their landlord offered a month's free rent to renew the lease on an apartment in the suburbs of Haifa in northern Israel.
Nordic Currencies: Swedish Krona Falls to Record as Global Equities Drop Sweden's krona dropped to a record against the euro as global stock losses sapped demand for higher-yielding currencies.
Asia
Australian Dollar Drops on RBA Minutes, Stocks; New Zealand Dollar Weakens The Australian and New Zealand dollars fell as equities declined and the Reserve Bank of Australia said its recent interventions to buy the currency weren't ``designed to defend any particular level.''
Asian Currencies Drop, Led by Rupiah and Won, as Global Funds Cut Holdings Asian currencies declined, led by Indonesia's rupiah and South Korea's won, on concern a global recession will damp demand for emerging-market assets.
Singapore May Seek to Let Currency Decline to Combat Recession, UBS Says Singapore may change its exchange- rate policy in April to favor a weakening currency after exports last month slumped the most in six years, according to UBS AG.
Emerging Markets
Chidambaram Says India's Economic Growth to `Bounce Back' to 9% Next Year India's economy will ``bounce back'' to 9 percent growth next year as local demand holds up amid a global recession, Finance Minister Palaniappan Chidambaram said.
Brazilian Retail Sales Rise 9.4% in September, Beating Economist Forecasts Brazil's retail sales rose more than economists forecast in September, a sign that consumer demand in Latin America's biggest economy remained resilient as the global credit crisis began to deepen.
Chinese Manufacturers May Suffer as Lenders Channel Money to Public Works China's small manufacturers are likely to be starved of cash even after the government directed banks to increase lending as part of its 4 trillion yuan ($586 billion) plan to buoy the economy.
Lonmin to Close Platinum Mines, Cut Jobs, Halt Expansions as Prices Slump Lonmin Plc, the world's third-largest platinum producer, will cut at least 50,000 ounces of annual output, halt expansion and reduce the workforce at its London headquarters after the metal plunged 64 percent.
Russia's 30 Trading Suspensions Hand `Weapon' to London, Micex Chief Says More than 30 trading halts at the Micex Stock Exchange in the past two months have driven Russian equities trading to competitors such as the London Stock Exchange, Chief Executive Officer Alexei Rybnikov said.
Belarus May Conclude Talks on IMF Loan This Week, Premier Sidorsky Says Belarus expects to conclude loan negotiations with the International Monetary Fund by the end of this week and plans to invest in the ``real sector'' of the economy, Prime Minister Sergei Sidorsky said.
Sugar Prices Will Rise as Credit Crunch Slows Brazil Output, Ometto Says Sugar prices will rise next year as a credit shortage drives some mills out of business and reduces output, the head of the world’s second-biggest cane processor said.
Energy
Crude Oil Futures Fall on Speculation U.S. Supplies Rose, Demand Dropped Crude oil fell to the lowest in almost 22 months on forecasts that a report will show U.S. oil supplies increased for an eighth week as a recession erodes global demand.
British Energy Reports a Second-Quarter Loss on Nuclear Reactor Shutdowns British Energy Group Plc, the U.K. power producer being bought by Electricite de France SA for 12.5 billion pounds ($18.8 billion), reported a second-quarter loss following reactor halts and said output may rise in 2009.
European Proposal for $14 Billion Clean-Coal Venture Fails to Win Backers A European proposal to spend 11 billion euros ($14 billion) testing how to pump greenhouse gases underground is itself getting buried.
Hijacked Saudi Tanker Anchored Off Somalia Coast; Rescue Attempt Unlikely The Saudi Arabian supertanker seized by pirates was anchored off the Somali coast as its owners prepared to negotiate for the vessel's release and analysts said the chances of a military response are slim.
Oil Supertanker Hijacking May Spur Increased Security, Alternative Routes The hijacking of a Saudi Arabian supertanker off the east coast of Africa may spur oil and shipping companies to step up security and use alternative routes, delaying cargoes to Europe and the U.S., analysts said.
Mol Reports First Quarterly Loss Since 2003 on Falling Oil Price, Currency Mol Nyrt., Hungary's largest oil refiner, reported a quarterly loss for the first time since 2003 after falling crude prices lowered the value of its inventories, prompting the company to cut costs.
Angola Oil Exports to Fall 6.4% in January in Line With OPEC Reduction Angola will reduce daily crude shipments by 6.4 percent in January as Africa's second-biggest producer complies with OPEC cuts.
Japan Power Exchange Trades First UN Carbon-Emiss