| Stock market drops $147bn in 18 days
A bad attack of nerves about a possible US recession and its effects on demand for Australian commodities has wiped off $147billion in value in just 18days. In the wake of a 300-point drubbing on Wall Street, the local market opened sharply lower, with the All Ordinaries Index sagging 176 points, or 2 per cent, in the first half hour. By the close, however, the late BHP-Rio rumour had closed the gap by two thirds to 57.6 points. The S&P/ASX200 index closed down 48.8 points at 5747.3. Solid speculation that BHP would up its bid by 32 per cent as soon as today drove a strong turnaround in investor sentiment. BHP Billiton is pushing the mega-merger with an unofficial offer of a three-for-one share deal that could create a combined entity worth $400 billion.
Stocks Advance, Led by Techs
Stocks closed higher Wednesday after reversing an earlier drop. Technology issues were among the session's best performers, aided by a strong earnings report from Hewlett-Packard (HPQ). Financial stocks rose later in the day, as minutes from Federal Reserve January policy meetings apparently supported hopes for further interest rate cuts. Stocks tied to precious metals and oil got a lift from gains in commodities futures, as crude oil topped the $100 mark once again to close at a new record. Investors also digested reports showing worsening inflation risks and only slight improvement in the housing market. On Wednesday, the Dow Jones industrial average finished higher by 90.04 points, or 0.73%, at 12,427.26. The broader S&P 500 index added 11.25 points, or 0.83%, to end at 1,360.03.
Hi Javed
It shows how the Central Bank no longer controls rates. Which of course is not a bad thing. It is rate manipulation that lands us in bubbles and inflation. b) Then the column tries to find out the type of monetary regime we are in. At the moment it is more towards a harder peg to the dollar. But the column shows that in the past the peg loosens somewhat from April onwards and eventually backfires on us. c) The final part relates to foreign borrowing. Is foreign borrowing good bad or ugly? We have now gone beyond the original sin. We can borrow abroad in our own currency. Actually this is a big thing. There is no special value attached to 'foreign exchange'. That 'foreign exchange' is more valuable than rupees is a bit of a false concept born out of living with loose monetary policy - that means money printing- for six decades.
Nevada: Best and worst place to live
Economic development officials are very aggressively working to encourage businesses to relocate to Nevada," said Karen Kerrigan, CEO and president of the Small Business & Entrepreneurship Council, a nonprofit group in Washington, D.C. "Economic development officials are very aggressively working to encourage businesses to relocate to Nevada. (But) Nevada may face problems accommodating its growing population, especially given the increasing scarcity of water and other resources."
environment
The best and worst environmental work are also exemplified in Nevada:
First the good: In 2007, Nevada was recognized by the U.S. Environmental Protection Agency for its work making enforcement of the Clean Air Act a "top priority."
"(Nevada took) legal action against two Las Vegas-area power plants for air emissions violations," an EPA report released in October said.
Time: 15:29 NYT
US stock markets shut trading into the rest of the week, but currency markets remain open, punishing the dollar further. The euro also strengthened on dismal data reported on US industrial production and consumer sentiment.
9/17-18. Euro joins the European currencies and the yen in giving the dollar a harsh drubbing (EUR/USD gained 2.5% to a 6-month high at 92.33 cents) after US stocks reopened following the September 11 attacks. The Dow plunged by 684 points or 7%, its worst decline on record, while NASDAQ tumbled by 6.8% or 115 points to 1579 as markets sold off in reaction to the prior weeks' terrorist attacks. Concerted interest rate cuts by the Fed, ECB and BoE had no noticeable impact on US equities or the currency.
22. 9/20-21
The single currency loses a cent and a half after Germany's August Ifo survey hits a 5-year low of 89.5 from the previous 89.8.
Tech merger possibilities buoy stocks; energy heats up
Stocks edged higher Monday, as investors overlooked fresh worries in financial stocks and focused on merger prospects among technology companies.
Energy stocks were big winners, as oil prices moved higher in futures trading.
The Dow Jones industrial average added 57.88 points, to 12,240.01. International Business Machines and Boeing were the biggest contributors to the gain among the 30 Dow industrials.
.
US interest rates cut by another 0.5%
The US Federal Reserve has cut interest rates for the second time in eight days in an effort to stimulate the flagging US economy. The Fed cut the rate by 0.5% this evening. On Tuesday of last week the US Federal Reserve bank dramatically slashed rates by 0.75%. .
Fed Takes Aim at Deceptive Home Lending Practices
Real estate agents' signs line a Birmingham, Mich., street in this Feb. 21, 2007 file photo. Battered by a declining manufacturing base, stagnant population growth and low demand for housing, Michigan and Ohio rank No. 1 and 2 on mortgage finance company Fannie Mae's list of states with the largest credit losses through Sept. 30. (AP Photo/Carlos Osorio, file) (Carlos Osorio - AP) .
Stock market drops $147bn in 18 days
A bad attack of nerves about a possible US recession and its effects on demand for Australian commodities has wiped off $147billion in value in just 18days. In the wake of a 300-point drubbing on Wall Street, the local market opened sharply lower, with the All Ordinaries Index sagging 176 points, or 2 per cent, in the first half hour. By the close, however, the late BHP-Rio rumour had closed the gap by two thirds to 57.6 points. The S&P/ASX200 index closed down 48.8 points at 5747.3. Solid speculation that BHP would up its bid by 32 per cent as soon as today drove a strong turnaround in investor sentiment. BHP Billiton is pushing the mega-merger with an unofficial offer of a three-for-one share deal that could create a combined entity worth $400 billion.
|
