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Trading Now

Monday, October 5, 2009


Asian stocks slip after volatile session
Asian-Pacific stock markets mostly were lower Monday after poor employment data in the U.S. soured sentiment about economic recovery. Japan's Nikkei 225 and Australia's S&P/ASX 200 dropped 0.6%, while South Korea's Kospi Composite lost 2.3%. Hong Kong's Hang Seng gained 0.3%, Taiwan's Taiex added 0.4% and New Zealand's NZX 50slid 0.3%. The Wall Street Journal (05 Oct.)

*Noooo REALLY? I remember when Merrill (former) Lynch kept reported loss after quarterly loss, if all the banks just came clean things could go back to normal. Well, its all normal alright isn't it?
Report: Treasury, Fed played down losses at bailout banks
The Federal Reserve and the U.S. Treasury played down losses at banks that received a bailout last year, according to a report by Neil Barofsky, the Treasury's special inspector general for the Troubled Asset Relief Program. According to the report, officials said the banks were "healthy," and when they turned out to be troubled, the public lost faith in the program. "Government officials should be particularly careful, even in time of crisis, of describing their actions (and the rationales for such actions) in an accurate manner," Barofsky said. Reuters (05 Oct.)

*ya think????
Analysts fear decline in retail sales in September
A decline in retail sales last month could indicate consumer behavior during the crucial holiday period, according to the International Council of Shopping Centers. Negative figures would foreshadow poor holiday sales, analysts said in separate reports, predicting either flat sales or a 1% decline at the end of the year. September sales reports are expected this week in the U.S. "'Recovery' doesn't mean that you recover. It just means you turn the corner." said Mike Niemira, chief economist for the International Council of Shopping Centers. The Wall Street Journal (05 Oct.)

*I'm sorry but there just aren't enough parties around the world that can clean up the mess that these institutions hold. They are all kidding themselves
3 more funds to buy troubled assets through PPIP
Three more funds will be allowed to buy troubled assets with U.S. government support through the Public-Private Investment Program, the Treasury is expected to announce. Nine funds have been raised by private investment funds. The Treasury hopes to see about $40 billion in troubled assets sold under the program, with the amount scaled back from the original $1 trillion objective. Reuters (05 Oct.)

*back to doom and gloom?
Market recovery is too rapid, set to wane, Roubini says
Rebound of the financial market has been too rapid, out of sync with the slower recovery of the real economy, said New York University economist Nouriel Roubini. "Markets have gone up too much, too soon, too fast," he said. "I see the risk of a correction, especially when the markets now realize that the recovery is not rapid and V-shaped, but more like U- shaped. That might be in the fourth quarter or the first quarter of next year." Bloomberg (05 Oct.)

*GS is a part of this consortium
U.S. consortium reportedly seeking to buy Volvo
A consortium in the U.S., led by former Ford Motor director Michael Dingman and veteran automotive executive Shamel Rushwin, is negotiating to buy Volvo from Ford, sources told Financial Times. The consortium is competing with China's Geely Automotive, which announced last month its intention to buy Volvo. The consortium is reportedly seeking support from Swedish investors, showing its intent to keep Volvo in the country. Reuters (05 Oct.)

*wars have been started over less
China will not revalue yuan, central bank official says
China intends to maintain its exchange rate policy, excluding revaluation for the near future, central bank official Yi Gang said. The International Monetary Fund said the yuan is undervalued. The Chinese government is in the process of reforming its exchange rate system to allow the yuan to move more flexibly, officials said, but there will be no action that would push up the yuan's value against other major currencies. China Daily (Beijing) (05 Oct.)

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