From CPN’s Morning Newsletter–Market Gyrations Continue as Recession Fears Mount
- Oct 16, 2008
As CPN reported exclusively in our Daily News REport Morning Edition(subscribe here), after the stock market continued its recent roller coaster ride yesterday–the Dow Jones index lost a massive 733 points just days after gaining a record 976 points on Monday–all eyes will be watching today. Global government largesse hasn’t helped much so far. European stocks are now taking their lead–down over 3 percent so for this A.M.–from Asia’s 11.5 percent overnight selloff. According to the folks on CNBC oil is heading to 60, the 2008 chart is starting to look like 1929’s, and the Dow could tank another 27 percent from the big bailout bounce before bottoming, which one quant called for next week.With all that dough flowing, anyone want to buy financials? Merrill Lynch has revealed a $5.1 billion loss, or $5.56 a share, for the third quarter–from CDO and real estate writedowns. Citigroup Inc.’s third-quarter net loss was $2.8 billion, or 60 cents a share, vs. year-ago earnings of 44 cents. Switzerland is the last major banking center to move to bailout mode. It just gave UBS AG $59.2 billion. The Bank of England will ease its approach to lending to financial institutions, opening a discount facility window on Oct. 20. This will let bankers trade assets, including illiquid ones, for U.K. bonds. Finally, New York Attorney General Andrew M. Cuomo is mad as hell–he sent a letter to AIG telling them to halt “unwarranted and outrageous expenditures.” If they don’t, and also get back some of the payouts made so far, he may go legal on them. AIG will “fully cooperate.” Speaking of insurance, how about unemployment? The pros now call for today’s 6.1 percent jobless rate to top 7 percent soon–and crash 8 percent during 2009.If you would like to partake of our Upcoming News digest with your morning coffee, please subscribe to ourDaily News REport Morning Edition.