From CPN’s Morning Newsletter–Libor at 1.67 Percent, a 4-Year Low
- Oct 17, 2008
As CPN reported exclusively in our Daily News REport Morning Edition(subscribe here), first comes the good news: the global bailout appears to be loosening banks’ purse-strings, to each other at least. The London interbank offered rate, or Libor, is at a four-year low of 1.67 percent, says the British Bankers’ Association.That’s all for the good, at least so far. Housing? The National Association of Home Builders/Wells Fargo index of builder confidence fell to a record low of 14, down three from September, reports Bloomberg News. Ahead of today’s Commerce Department report on starts, a Bloomberg survey of economists put the range from 840,000 to 935,000 units and a building-permit pace down 2 percent to 840,0000. Then Reuters/University of Michigan preliminary estimate of October consumer sentiment, ahead of its release this morning, puts it at 65 vs. end-September’s 70. These are “steep declines,” according to an AP report.To boost volatility today: almost 80 million options are due to expire. To cover these, expect much hedging. Dow Jones Industrial Average futures are now at 8918. Adding to the economic zeitgeist President Bush is slated to explain the details of government efforts so far at the U.S. Chamber of Commerce D.C. headquarters. The White House has indicated that no new plans will be unveiled and that the goal is to inspire greater confidence in a public battered by massive losses in net work and housing values. If you would like to partake of our Upcoming News digest with your morning coffee, please subscribe to ourDaily News REport Morning Edition.