MarketS DailY - Sep 30
US Markets:DOW
NASDAQ
NASDAQ
Asia at 9 AM:
NIKKEI 11,199.02 -544.59 -4.64%
HANG SENG 17,282.26 -598.42 -3.35%
Gold: $907.80+ 1.50% +$13.40
Crude : $95.89–0.50%–$0.48
News Today:
* The US House of Representatives voted 228-205 and rejected the $700 billion bail out plan to rescue the financial industry.
* DOW plunges 777 points, its biggest single day point loss in history. S&P stocks lose market cap of $ 1Trillion in the crash.
* US volatility index closes above 45, highest in history.
* Oil sinks more than $10.
* AIG, Morgan Stanley, Wachovia and others FIIs would sell some of the Indian assets. Keep an eye on their holdings.
* Japan's Nikkei hits 3 year low as nation fears it will slip into recession.
* Rupee hits a 3 year low of 47 against dollar.
Details of the US Bail out plan
The legislation gives power to Treasury secretary Hank Paulson to buy troubled financial assets and mortgages. Troubled Asset Relief Fund (TARF) has been established which will lend the money in 3 stages. Treasury will first get $250 billion, with an additional $100 billion immediately accessible. Congress would have the option of blocking or allowing the final installment of $350 billion after assessing the future course of developments in the Financial markets.
The plan allows Government to take over troubled assets in return for a stake in the company, in an expectation that the company will render profits in long run and there by protecting Tax payers money. In case of net loss even after 5 years, the president will have to submit a legislative proposal to seek reimbursement from the financial institutions that participated.
The plan also offers Insurance cover to protect tax payers. Financial institutions that want to participate would essentially pay the government a fee and, in return, the government would insure their assets against any future losses.
The plan allows Government to take over troubled assets in return for a stake in the company, in an expectation that the company will render profits in long run and there by protecting Tax payers money. In case of net loss even after 5 years, the president will have to submit a legislative proposal to seek reimbursement from the financial institutions that participated.
The plan also offers Insurance cover to protect tax payers. Financial institutions that want to participate would essentially pay the government a fee and, in return, the government would insure their assets against any future losses.
MarketS DailY - Sep 29
US Markets:
Asia at 9 AM:
NIKKEI 11,949.83 +56.67 +0.48%
HANG SENG 18,307.88 -374.21 -2.00%
SGX NIFTY : 3990 -5
Gold: $871.10 –1.43% –$12.60
Crude : $105.83 –0.99% –$1.06
News Today:
* US Lawmakers release plan of historic bailout of its Financial system.
* The plan gives US Treasury secretary tremendous powers to handle vast amounts of money.
* European financial giant Fortis partially nationalized. Three governments pour $16.4 billion into the bank.
* After Infosys, HCL makes a counter bid for U.K.'s Axon.
* According to economic think-tank NCAER, The confidence of India Inc in the country's business environment has dropped sharply.
Whats the $700 billion bail out package all about , Read More : Click here
DOW NASDAQ
Asia at 9 AM:
NIKKEI 11,949.83 +56.67 +0.48%
HANG SENG 18,307.88 -374.21 -2.00%
Gold: $871.10 –1.43% –$12.60
Crude : $105.83 –0.99% –$1.06
News Today:
* US Lawmakers release plan of historic bailout of its Financial system.
* The plan gives US Treasury secretary tremendous powers to handle vast amounts of money.
* European financial giant Fortis partially nationalized. Three governments pour $16.4 billion into the bank.
* After Infosys, HCL makes a counter bid for U.K.'s Axon.
* According to economic think-tank NCAER, The confidence of India Inc in the country's business environment has dropped sharply.
Whats the $700 billion bail out package all about , Read More : Click here
Weekly Snapshot - Sep 29 , 2008
Market views and reviews:
Nifty closed below 4000 for the week, first time since may. Markets slipped last week on the lack of clarity of the bail out package in US. Indo US nuke deal gets approval from the US House of Representatives, next stop will be the senate approval which is expected week. A positive sign for the markets. Indian markets will take cues from the fundamental developments happening in the Wall street. The bail out package would trigger a rally in markets. Inflation remained unchanged at 12.14%.
World market views :
Dow was largely range bound waiting for a positive outcome on the bail out plan. Its understood that the US senate has agreed on some sort of agreement over the package and is expected to be finalized soon.
The bail out package will put pressure on US dollar and is expected to weaken against major currencies. Weaker dollar could trigger another rally in commodities like Oil and Gold.
Washington Mutual was taken over by JpMorgan, In the biggest bank failure in US history.
US Economic events :
Tuesday, September 30, 2008 : Redbook Retail Sales Index.
Wednesday, October 1, 2008 : Sep ADP Employment Report.
Thursday, October 2, 2008 : Initial Jobless Claims.
Friday, October 3, 2008 : Sep Nonfarm Payrolls , Unemployment Rate:
Whats the $700 billion bail out package all about , Read More : Click here
Nifty closed below 4000 for the week, first time since may. Markets slipped last week on the lack of clarity of the bail out package in US. Indo US nuke deal gets approval from the US House of Representatives, next stop will be the senate approval which is expected week. A positive sign for the markets. Indian markets will take cues from the fundamental developments happening in the Wall street. The bail out package would trigger a rally in markets. Inflation remained unchanged at 12.14%.
World market views :
Dow was largely range bound waiting for a positive outcome on the bail out plan. Its understood that the US senate has agreed on some sort of agreement over the package and is expected to be finalized soon.
The bail out package will put pressure on US dollar and is expected to weaken against major currencies. Weaker dollar could trigger another rally in commodities like Oil and Gold.
Washington Mutual was taken over by JpMorgan, In the biggest bank failure in US history.
US Economic events :
Tuesday, September 30, 2008 : Redbook Retail Sales Index.
Wednesday, October 1, 2008 : Sep ADP Employment Report.
Thursday, October 2, 2008 : Initial Jobless Claims.
Friday, October 3, 2008 : Sep Nonfarm Payrolls , Unemployment Rate:
Whats the $700 billion bail out package all about , Read More : Click here
MarketS DailY - Sep 26
US Markets:
Asia at 9 AM:
NIKKEI 11,969.24 -37.29 -0.31%
HANG SENG 18,669.91 -264.52 -1.40%
SGX NIFTY : 4100 -50
Gold: 878.90 +0.19% +$1.70
Crude : $106.2 –1.22% –$1.32
News Today:
* In the biggest bank failure in US history, JPMorgan Chase will acquire Washington Mutual.
* The $700 billion bail out is still under negotiation in the US congress.
* US New home sales falls to 17-year low.
* HSBC Bank to cut 1,100 jobs worldwide.
* US Investment and commercial banks had borrowed a total of $218 billion from the Federal Reserve as of Wednesday.
* Japanese inflation stuck at 10-year high
* RBI report says PSU banks in India are more profitable compared to its peers in private banks.
* Indian Inflation came at 12.14 unchanged against previous week.
Performance of Key Asian Indexes
% change in 1 month & 1 year
Nikkei 225 Japan 11,983.34 –6.22% –27.09%
Hang Seng 18,658.01 -11.39% –29.41%
Shanghai 2,282.56 –2.87% –57.24%
DOW
NASDAQ
NASDAQ
Asia at 9 AM:
NIKKEI 11,969.24 -37.29 -0.31%
HANG SENG 18,669.91 -264.52 -1.40%
Gold: 878.90 +0.19% +$1.70
Crude : $106.2 –1.22% –$1.32
News Today:
* In the biggest bank failure in US history, JPMorgan Chase will acquire Washington Mutual.
* The $700 billion bail out is still under negotiation in the US congress.
* US New home sales falls to 17-year low.
* HSBC Bank to cut 1,100 jobs worldwide.
* US Investment and commercial banks had borrowed a total of $218 billion from the Federal Reserve as of Wednesday.
* Japanese inflation stuck at 10-year high
* RBI report says PSU banks in India are more profitable compared to its peers in private banks.
* Indian Inflation came at 12.14 unchanged against previous week.
Performance of Key Asian Indexes
% change in 1 month & 1 year
Nikkei 225 Japan 11,983.34 –6.22% –27.09%
Hang Seng 18,658.01 -11.39% –29.41%
Shanghai 2,282.56 –2.87% –57.24%
MarketS DailY - Sep 25
US Markets:
NASDAQ
Asia at 9 AM:
NIKKEI 12,019.73 -95.30 -0.79%
HANG SENG 19,171.94 +209.95 +1.11%
SGX NIFTY : 4160 -30
Gold: $888.40 –0.19% –$1.70
Crude : $105.83 +0.09% +$0.10
News Today:
* US President George Bush issued a warning that they are in the midst of a financial crisis and failing to act quickly will put them in a deep recession.
* Legendary Investor Warren buffet has said the bail out is the only option left and is necessary at this point of time.
* Warren Buffett said on Wednesday his Berkshire Hathaway Inc insurance and investment company would consider buying some units from American International Group Inc.
* Vedanta Group drops rejig plans citing market conditions and investors feedback.
* China tells its banks to stop lending to US financial Firms.
* Anil Ambani files a defamation case against his brother Mukesh Ambani for a comment he made in Newyork times magazine.
DOW
NASDAQ
NIKKEI 12,019.73 -95.30 -0.79%
HANG SENG 19,171.94 +209.95 +1.11%
Gold: $888.40 –0.19% –$1.70
Crude : $105.83 +0.09% +$0.10
News Today:
* US President George Bush issued a warning that they are in the midst of a financial crisis and failing to act quickly will put them in a deep recession.
* Legendary Investor Warren buffet has said the bail out is the only option left and is necessary at this point of time.
* Warren Buffett said on Wednesday his Berkshire Hathaway Inc insurance and investment company would consider buying some units from American International Group Inc.
* Vedanta Group drops rejig plans citing market conditions and investors feedback.
* China tells its banks to stop lending to US financial Firms.
* Anil Ambani files a defamation case against his brother Mukesh Ambani for a comment he made in Newyork times magazine.
The $700 billion US Bailout Plan - Explained
Dubbed as the Mother of all bail outs, Hank Paulson wants $700 billion of taxpayer’s money to buy up bad debt and ‘rescue’ the markets. These are uncharted measures, no one knows how it would pan out.
The bail out involves massive proportions of money, $700 billion is equivalent of $2,000 for every man, woman child in the United States roughly the same amount of money spent on Iraq war. It seems the bail out could even cost as much as $1 Trillion.
Hank Paulson and Bernanke believe the bail out is absolutely necessary to shore up the falling economy. They say the bad debits taken over by government will begin to give profits over a long run. They feel the risk of not acting will be higher than risk of the bail out and has urged the US Senate to push forward the plan as quickly as possible.
The rescue plan will put enormous pressure on the Dollar and in turn may trigger a rally in commodities especially gold and crude. When executed undoubtedly it will be the biggest clean up act in the history of world markets.
The bail out involves massive proportions of money, $700 billion is equivalent of $2,000 for every man, woman child in the United States roughly the same amount of money spent on Iraq war. It seems the bail out could even cost as much as $1 Trillion.
Hank Paulson and Bernanke believe the bail out is absolutely necessary to shore up the falling economy. They say the bad debits taken over by government will begin to give profits over a long run. They feel the risk of not acting will be higher than risk of the bail out and has urged the US Senate to push forward the plan as quickly as possible.
The rescue plan will put enormous pressure on the Dollar and in turn may trigger a rally in commodities especially gold and crude. When executed undoubtedly it will be the biggest clean up act in the history of world markets.
MarketS DailY - Sep 24
US Markets:
NIKKEI 11,950.40 –140.19 –1.16%
Gold: $883.50 –0.34% –$3.00
Crude :$107.02 +0.38% +$0.41
News Today:
* Warren Buffet is buying $5 billion of preferred stock in Goldman sachs.
* The FBI is investigating financial institutions whose collapse helped trigger the government's $700 billion bailout plan.
* US FED chairman Bernanke and Treasury secretary Hank Paulson testified before the US congress about the $700 billion bail out package.
* US Law makers raised concerns on the bail out package and is yet to clear it.
DOW
NASDAQ
Asia at 9 AM:NIKKEI 11,950.40 –140.19 –1.16%
HANG SENG 19,142.74 +269.89 +1.37%
SGX NIFTY : 4170 +23
Gold: $883.50 –0.34% –$3.00
Crude :$107.02 +0.38% +$0.41
News Today:
* Warren Buffet is buying $5 billion of preferred stock in Goldman sachs.
* The FBI is investigating financial institutions whose collapse helped trigger the government's $700 billion bailout plan.
* US FED chairman Bernanke and Treasury secretary Hank Paulson testified before the US congress about the $700 billion bail out package.
* US Law makers raised concerns on the bail out package and is yet to clear it.
MarketS DailY - Sep 23
US Markets:
Asia at 9 AM:
NIKKEI : Markets Closed on holiday
HANG SENG 19,080.72 -551.48 -2.85%
SGX NIFTY : 4156 -63
Gold: $897.00 –0.79% –$7.10
Crude Oil : $108.95–9.90%–$11.97
News Today:
* Oil prices posted the biggest one-day dollar gain ever Monday, The October contract surged in afternoon trading, reaching as high as $130.00 - a more than $25 gain Before settling at $120.
* Dow lost 373 points on spiking oil and unclear bailout plan.
* The $1 Trillion bail out plan proposed in US could weigh heavily on the Dollar, crude oil and gold are already on a rally. With more weakness in dollar we may see another round of bull run in commodities.
* Japanese firm Nomura takes over Lehman's asian operations.
* Microsoft Corp approved a plan to buy back up to $40 billion of its shares.
* Rupee regains some if its losses as dollar weakens on US worries.
* as of September 19
DOW
NASDAQAsia at 9 AM:
NIKKEI : Markets Closed on holiday
HANG SENG 19,080.72 -551.48 -2.85%
Gold: $897.00 –0.79% –$7.10
Crude Oil : $108.95–9.90%–$11.97
News Today:
* Oil prices posted the biggest one-day dollar gain ever Monday, The October contract surged in afternoon trading, reaching as high as $130.00 - a more than $25 gain Before settling at $120.
* Dow lost 373 points on spiking oil and unclear bailout plan.
* The $1 Trillion bail out plan proposed in US could weigh heavily on the Dollar, crude oil and gold are already on a rally. With more weakness in dollar we may see another round of bull run in commodities.
* Japanese firm Nomura takes over Lehman's asian operations.
* Microsoft Corp approved a plan to buy back up to $40 billion of its shares.
* Rupee regains some if its losses as dollar weakens on US worries.
| 2008 IN THE EMERGING MARKETS Best-performing markets | |
| Kuwait's KSE Price Index | 5% |
| Chile's IPSA index | -12% |
| South Africa's All-Share index | -12% |
| Worst-performing markets | |
| China's Shanghai Composite | -61% |
| Vietnam's VN Index | -53% |
| Russia's RTS index | -43% |
* as of September 19
MarketS DailY - Sep 22
US Markets:
DOW
NASDAQ
Asia at 9 AM:
NIKKEI 12,144.19 +223.33 +1.87%
HANG SENG 19,242.89 -84.84 -0.44%
SGX NIFTY : 4315 +34
Gold: 872 +7.30 +1.75%
Silver: 1266 +18.40 +1.48%
News Today:
* US investment banks Goldman sachs and Morgan Stanley will become bank holding companies and will receive new US government credit, The Era of investment Banking ends with this.
* US Treasury Secretary Hank asked lawmakers to act quickly on a rescue plan for U.S. markets. The proposed plan was a $700 billion package to move bad assets from companies balance sheets to Governments holdings.
* Rescuing the US financial system could cost the government as much as $1 trillion of Tax payers money.
* After UK and US ban short selling, Australia and Taiwan follow suit.
* Oil prices inch up to $105.
* RIL announces production from KG basin, targets 40% of oil refining in Indian markets in next 18 months. A big boost to unlock valuations.
* US slow down hits Job street in India , New Job offers form satyam and wipro were 35-50% lower and TCS, Infosys cuts recruitment's by 14-12%.
* Rupee becomes the second worst performing currency against Dollar in Asia.
DOW
NASDAQ
Asia at 9 AM:
NIKKEI 12,144.19 +223.33 +1.87%
HANG SENG 19,242.89 -84.84 -0.44%
SGX NIFTY : 4315 +34
Gold: 872 +7.30 +1.75%
Silver: 1266 +18.40 +1.48%
News Today:
* US investment banks Goldman sachs and Morgan Stanley will become bank holding companies and will receive new US government credit, The Era of investment Banking ends with this.
* US Treasury Secretary Hank asked lawmakers to act quickly on a rescue plan for U.S. markets. The proposed plan was a $700 billion package to move bad assets from companies balance sheets to Governments holdings.
* Rescuing the US financial system could cost the government as much as $1 trillion of Tax payers money.
* After UK and US ban short selling, Australia and Taiwan follow suit.
* Oil prices inch up to $105.
* RIL announces production from KG basin, targets 40% of oil refining in Indian markets in next 18 months. A big boost to unlock valuations.
* US slow down hits Job street in India , New Job offers form satyam and wipro were 35-50% lower and TCS, Infosys cuts recruitment's by 14-12%.
* Rupee becomes the second worst performing currency against Dollar in Asia.
Weekly Snapshot - Sep 22,2008
Market views and reviews :
A week of packed action in markets. Nifty made a new low for the year and gave an impressive pullback to 4200 levels. The strain in the global financial system clearly put pressure on Indian markets, Rupee weakened as low as 47 against the Dollar. In coming days global events and developments will guide the markets. Nifty is expected to be range bound between 4000-4500 levels. Inflation was at 12.14%.
World market views :
Dow had a roller coaster ride last week. Lehman brothers filed for bankruptcy as it was not able to raise capital to keep the business running. AIG the largest insurer in the world had to be bailed out by the FED.
The combined effort of major central bankers in the world relieved stress from the markets all over the world. They injected huge amount of liquidity into the system to avoid credit crunch.
US Treasury has proposed a $700 billion plan to bail out the crumbling financial system.
Morgan Stanley is in talks with China Investment Corp and Wachovia for a possible merger.
Oil gained 15% in 3 days, largest 3 day gain in last 20 years.
U.S. Economic Events:
Wednesday, September 24, 2008 : Aug Existing Home Sales
Thursday, September 25, 2008 : Initial Jobless Claims.
Friday, September 26, 2008 : 2Q Final GDP
A week of packed action in markets. Nifty made a new low for the year and gave an impressive pullback to 4200 levels. The strain in the global financial system clearly put pressure on Indian markets, Rupee weakened as low as 47 against the Dollar. In coming days global events and developments will guide the markets. Nifty is expected to be range bound between 4000-4500 levels. Inflation was at 12.14%.
World market views :
Dow had a roller coaster ride last week. Lehman brothers filed for bankruptcy as it was not able to raise capital to keep the business running. AIG the largest insurer in the world had to be bailed out by the FED.
The combined effort of major central bankers in the world relieved stress from the markets all over the world. They injected huge amount of liquidity into the system to avoid credit crunch.
US Treasury has proposed a $700 billion plan to bail out the crumbling financial system.
Morgan Stanley is in talks with China Investment Corp and Wachovia for a possible merger.
Oil gained 15% in 3 days, largest 3 day gain in last 20 years.
U.S. Economic Events:
Wednesday, September 24, 2008 : Aug Existing Home Sales
Thursday, September 25, 2008 : Initial Jobless Claims.
Friday, September 26, 2008 : 2Q Final GDP
MarketS DailY - Sep 19
US Markets:
Asia at 9 AM:
NIKKEI +374.48 +3.26%
HANG SENG +1,045.90 +5.93%
SGX NIFTY : 4248 +197
Gold: 848.4 -48.30 -5.38
Silver: 1204 -66.50 -7.07%
News Today:
* Wild rally in US markets as top guns announced plans to boost the trouble economy,Paulson, Bernanke brief lawmakers on broad program to stem credit crunch.
* Stocks in Shanghai up rallies 10% after government stepeed in to rescue the markets
* Morgan Stanley is in talks for a possible merger with a large bank or raising capital from abroad.
* Crude remains below $100/ barrel.
* Inflation Numbers first week of September came at 12.14% Vs 12.10%.
* Indian banks are in better shape than global peers says FM.
* ICICI bank management says exposure to foreign banks is relatively small, assures investors and customers that it is in safe grounds.
* Realty sector is feeling the heat of the melt down, some prominent players are struggling to raise funds as borrowing costs hit peaks. Unitech , Orbit corp , DLF , Jp Ass all stocks have fallen between 50-70% from their highs.
* Morgan Stanley is seen selling its indian portfolio. Keep an eye on their holdings.
DOW
NASDAQ
Asia at 9 AM:
NIKKEI +374.48 +3.26%
HANG SENG +1,045.90 +5.93%
Gold: 848.4 -48.30 -5.38
Silver: 1204 -66.50 -7.07%
News Today:
* Wild rally in US markets as top guns announced plans to boost the trouble economy,Paulson, Bernanke brief lawmakers on broad program to stem credit crunch.
* Stocks in Shanghai up rallies 10% after government stepeed in to rescue the markets
* Morgan Stanley is in talks for a possible merger with a large bank or raising capital from abroad.
* Crude remains below $100/ barrel.
* Inflation Numbers first week of September came at 12.14% Vs 12.10%.
* Indian banks are in better shape than global peers says FM.
* ICICI bank management says exposure to foreign banks is relatively small, assures investors and customers that it is in safe grounds.
* Realty sector is feeling the heat of the melt down, some prominent players are struggling to raise funds as borrowing costs hit peaks. Unitech , Orbit corp , DLF , Jp Ass all stocks have fallen between 50-70% from their highs.
* Morgan Stanley is seen selling its indian portfolio. Keep an eye on their holdings.
Whats next in Global Financial Crisis ??
With Lehman gone bust and Meryl lynch running for covers under Bank of America. All eyes turn to the lone standing Investment banking giants Morgan Stanley and Goldman Sachs.
Goldman Sachs is under lesser threat as it outperformed its peers. The bank made $11.6 billion last year and has not posted a loss during the credit crisis. Morgan Stanley has also performed well, but has suffered more write-downs and had a loss of $3.6 billion in the fourth quarter of last year.
What could pose a threat to these companies is the fall in share prices due to increases pessimism prevailing in wall street. As shares tumble 20-30% every day borrowing costs increase and credit ratings tumble. A possible downgrade of stock by rating agencies like S&P or Moody's will put the company in troubled waters.
Morgan stanley is already in talks with Wachovia and Citi for a possible takeover. A collapse of these giants will cause too much of a strain to financial markets that could see it go knees down.
Goldman Sachs is under lesser threat as it outperformed its peers. The bank made $11.6 billion last year and has not posted a loss during the credit crisis. Morgan Stanley has also performed well, but has suffered more write-downs and had a loss of $3.6 billion in the fourth quarter of last year.
What could pose a threat to these companies is the fall in share prices due to increases pessimism prevailing in wall street. As shares tumble 20-30% every day borrowing costs increase and credit ratings tumble. A possible downgrade of stock by rating agencies like S&P or Moody's will put the company in troubled waters.
Morgan stanley is already in talks with Wachovia and Citi for a possible takeover. A collapse of these giants will cause too much of a strain to financial markets that could see it go knees down.
MarketS DailY - Sep 18
US Markets:
Asia at 9 AM:
NIKKEI 11,386.65 -363.14 -3.09%
HANG SENG 16,722.46 -914.73 -5.00%
SGX NIFTY : 3,841.0 -152.0
Gold: 865.4 +14.90 +1.75%
Silver: 1220 +52.50 +4.50%
News Today:
* Another bad day for Wall street. DOW tanks 450 points as the Financial strains weigh on Markets.
* All the world central bankers are vigil, injecting liquidity into the markets. BOJ ( Bank of Japan pumps $14 billion into the markets, a total of $67 billion in 3 days.
* US housing starts is at a 17 year low.
* US market regulators enact a new law banning naked selling of listed companies.
* US Government has spent $900 billion so far to take over failing companies.
* Oil inches up as US oil inventory slips for 2nd week in a row.Goldman Sachs cuts its 3 month price target of Crude Oil to $115 from $149.
* "The worst is yet to come" -Jeffrey Gundlach, An influential investment strategist
* Rupee gained as RBI intervened to stop the fall in the rupee against dollar.
* US Gold prices posts its biggest one day gain ever.
DOW
NASDAQ
Asia at 9 AM:
NIKKEI 11,386.65 -363.14 -3.09%
HANG SENG 16,722.46 -914.73 -5.00%
Gold: 865.4 +14.90 +1.75%
Silver: 1220 +52.50 +4.50%
News Today:
* Another bad day for Wall street. DOW tanks 450 points as the Financial strains weigh on Markets.
* All the world central bankers are vigil, injecting liquidity into the markets. BOJ ( Bank of Japan pumps $14 billion into the markets, a total of $67 billion in 3 days.
* US housing starts is at a 17 year low.
* US market regulators enact a new law banning naked selling of listed companies.
* US Government has spent $900 billion so far to take over failing companies.
* Oil inches up as US oil inventory slips for 2nd week in a row.Goldman Sachs cuts its 3 month price target of Crude Oil to $115 from $149.
* "The worst is yet to come" -Jeffrey Gundlach, An influential investment strategist
* Rupee gained as RBI intervened to stop the fall in the rupee against dollar.
* US Gold prices posts its biggest one day gain ever.
AIG - How big is it ? How was it bailed out ?
AIG ( American International Group) is the largest insurer in US, with assets worth more than $1Trillion. Employs more than 1 lakh people worldwide and has a wide spread presence around all the nations of the world in about 130 countries. A fall out of a company with such wider global presence will cause enormous strain to the global financial stability. No wonder FED came to the rescue.
AIG has so far reported $15 billion in losses in last 4 quarters. After the brewing trouble in AIG , the company was looking to raise funds to keep its operations running. In the process it was downgraded in its credit ratings by major rating agencies like S&P. With AIG in the brink of filing bankruptcy, FED has arranged for a bridge loan of $85 billion yesterday in exchange for a stake in the company that could reach 80%. The deal comes with the provision that AIG will have to sell off businesses to raise capital and repay the debt. It's likely to have to sell any number of insurance units around the world.
In India It has a JV with the TATA group, namely TATA-AIG insurance venture. Officials of AIG India reportedly said that the Indian operations are running smooth and are in no strain as of now and the employees and investors in AIG are safe.
AIG has so far reported $15 billion in losses in last 4 quarters. After the brewing trouble in AIG , the company was looking to raise funds to keep its operations running. In the process it was downgraded in its credit ratings by major rating agencies like S&P. With AIG in the brink of filing bankruptcy, FED has arranged for a bridge loan of $85 billion yesterday in exchange for a stake in the company that could reach 80%. The deal comes with the provision that AIG will have to sell off businesses to raise capital and repay the debt. It's likely to have to sell any number of insurance units around the world.
In India It has a JV with the TATA group, namely TATA-AIG insurance venture. Officials of AIG India reportedly said that the Indian operations are running smooth and are in no strain as of now and the employees and investors in AIG are safe.
MarketS DailY - Sep 16
US Markets:
NASDAQ
Asia at 9 AM:
NIKKEI 11,641.07 -573.69 -4.70%
HANG SENG 18,282.41 -1,070.49 -5.53%
SGX NIFTY : 3,928.0 -122.0
Gold: 780.8 -6.90 -0.88%
Silver: 1,084 -29 -2.60%
News Today:
* Wall Street sees worst day in 7 years since 9/11 attacks , with Dow down 504 points.
* All world markets are trading in deep red.
* Event to watch out for will be the FED meet tonight. Rate cuts are expected.
* Another Company to join in Lehman's list could be AIG. AIG, the largest insurance company in US. Some of the stocks they own MindTree, NIIT Tech, AIA Engineering, IPCA Labs, Unity Infra, Sun Pharma, Federal Bank, Bharti Shipyard, Kolte Patil, Indo Tech and Gokaldas Exports.
* Fed asks Goldman and JPMorgan Chase to raise $70 billion for AIG survival
* Crude Oil settles at $94 levels.
* US Industrial Out put sees steepest drop since Katrina.
* Rupee weakened further to $46 levels. FII money being pulled out of markets.
* Indian Banks say the US crisis will not affect domestic proceedings, although sentiments will be affected.
DOW
NASDAQ
Asia at 9 AM:
NIKKEI 11,641.07 -573.69 -4.70%
HANG SENG 18,282.41 -1,070.49 -5.53%
Gold: 780.8 -6.90 -0.88%
Silver: 1,084 -29 -2.60%
News Today:
* Wall Street sees worst day in 7 years since 9/11 attacks , with Dow down 504 points.
* All world markets are trading in deep red.
* Event to watch out for will be the FED meet tonight. Rate cuts are expected.
* Another Company to join in Lehman's list could be AIG. AIG, the largest insurance company in US. Some of the stocks they own MindTree, NIIT Tech, AIA Engineering, IPCA Labs, Unity Infra, Sun Pharma, Federal Bank, Bharti Shipyard, Kolte Patil, Indo Tech and Gokaldas Exports.
* Fed asks Goldman and JPMorgan Chase to raise $70 billion for AIG survival
* Crude Oil settles at $94 levels.
* US Industrial Out put sees steepest drop since Katrina.
* Rupee weakened further to $46 levels. FII money being pulled out of markets.
* Indian Banks say the US crisis will not affect domestic proceedings, although sentiments will be affected.
After Lehman whos next ?
The storm across wall street just got stronger, With American financial institutions in a deeper trouble than ever, More and more names spring up in who's next list of troubled financial's.
Late Sunday the 94-year-old Merrill Lynch agreed to sell itself to Bank of America Corp for $50 billion. At $50 billion, Merrill is being sold at about two-thirds of its value of one year ago and half its all-time peak value of early 2007,The deal values Merrill at $29 a share.
The other scrambler is AIG( American International Group) which has run out funds to even last for few more days. It has seeked $40 billion bridge loan from FED. With credit rating agencies like Standard & Poor's put AIG's ratings on CreditWatch with negative implications,and warning to downgrade the stock if it doesnt raise capital soon enough, seems like wall street should be prepared for another saga similar to Lehman.
Late Sunday the 94-year-old Merrill Lynch agreed to sell itself to Bank of America Corp for $50 billion. At $50 billion, Merrill is being sold at about two-thirds of its value of one year ago and half its all-time peak value of early 2007,The deal values Merrill at $29 a share.
The other scrambler is AIG( American International Group) which has run out funds to even last for few more days. It has seeked $40 billion bridge loan from FED. With credit rating agencies like Standard & Poor's put AIG's ratings on CreditWatch with negative implications,and warning to downgrade the stock if it doesnt raise capital soon enough, seems like wall street should be prepared for another saga similar to Lehman.
MarketS DailY - Sep 15
US Markets:
DOW
11.72
-0.10%
11,421.99
NASDAQ
3.05
+0.14%
2,261.27
Asia at 9 AM:
Markets in Tokyo, Shanghai, Hong Kong and Seoul closed for holiday.
SGX NIFTY : 4082, -134.20
Gold: 786.2 +21.70 +2.84% +9.53%
Silver: 1,117.5 +38.00 +3.52% -10.91%
News Today:
* Serial blasts rock Delhi on Saturday evening, May we pray for peace.
* Investment banking giant Lehman is on the verge of filing bankruptcy as take over talks end inconclusively.
* Bank of America and Meryl lynch are in talks of merger.
* Crude slipped below $100/barrel as hurricane Ike caused less than expected damages to oil production.
* Former FED Chief Greenspan says financial institutions may fail
* Satyam Computers to axe 4,500 employees.
* At 21000, HDIL was at 1500. Now you are getting - DLF + HDIL + Unitech + Godrej = All five stocks in one pack at Rs. 1500. A bumper festival thanks to FIIs - A forwarded message.
*CLSA has said - Infosys is likely to miss its US$ revenue guidance for both the Sep quarter and the full year FY2009.
* AIG plans to sell $20b of assets, UBS may write down $5b more in H2.
DOW
11.72
-0.10%
11,421.99
NASDAQ
3.05
+0.14%
2,261.27
Asia at 9 AM:
Markets in Tokyo, Shanghai, Hong Kong and Seoul closed for holiday.
SGX NIFTY : 4082, -134.20
Gold: 786.2 +21.70 +2.84% +9.53%
Silver: 1,117.5 +38.00 +3.52% -10.91%
News Today:
* Serial blasts rock Delhi on Saturday evening, May we pray for peace.
* Investment banking giant Lehman is on the verge of filing bankruptcy as take over talks end inconclusively.
* Bank of America and Meryl lynch are in talks of merger.
* Crude slipped below $100/barrel as hurricane Ike caused less than expected damages to oil production.
* Former FED Chief Greenspan says financial institutions may fail
* Satyam Computers to axe 4,500 employees.
* At 21000, HDIL was at 1500. Now you are getting - DLF + HDIL + Unitech + Godrej = All five stocks in one pack at Rs. 1500. A bumper festival thanks to FIIs - A forwarded message.
*CLSA has said - Infosys is likely to miss its US$ revenue guidance for both the Sep quarter and the full year FY2009.
* AIG plans to sell $20b of assets, UBS may write down $5b more in H2.
Weekly Snapshot - Sep 15,2008
Market views and reviews :
The Rupee weakness weighed on markets last week, with RIL not supporting the index nifty slipped to 4200 levels. Reliance makes a 52 week low, clearly not a good sign for market strength. Infosys has raised concerns about meeting its guidance in coming quarters due to the weakness in rupee.,IT stocks reacted negatively to the news. Inflation cools further to 12.10%. The Serial blasts in delhi would come in as a sentiment dampener to the markets.
World market views :
DOW was range bound last week, Trouble increses for Lehman as its future plans become murky. Wall street will keep a close eye on the developments around lehman.
Events to watch out for this week will be FED meet on Tuesday, Goldman sachs and Morgan stanley results. Interest rate Futures show a 17% chance borrowing costs will be cut by a quarter percentage point at this FED meet.
Crude oil falls to $100 levels. Gold also fell significantly last week.
US stocks are likely to take cues from FED meet and results of major financials and lehman's fate.
U.S. Economic Events:
Monday, September 15, 2008 : Aug Industrial Production.
Tuesday, September 16, 2008 : Consumer Price Index , Retail Sales,FOMC Meeting; Fed funds interest rate decision.
Thursday, September 18, 2008 : Initial Jobless Claims.
The Rupee weakness weighed on markets last week, with RIL not supporting the index nifty slipped to 4200 levels. Reliance makes a 52 week low, clearly not a good sign for market strength. Infosys has raised concerns about meeting its guidance in coming quarters due to the weakness in rupee.,IT stocks reacted negatively to the news. Inflation cools further to 12.10%. The Serial blasts in delhi would come in as a sentiment dampener to the markets.
World market views :
DOW was range bound last week, Trouble increses for Lehman as its future plans become murky. Wall street will keep a close eye on the developments around lehman.
Events to watch out for this week will be FED meet on Tuesday, Goldman sachs and Morgan stanley results. Interest rate Futures show a 17% chance borrowing costs will be cut by a quarter percentage point at this FED meet.
Crude oil falls to $100 levels. Gold also fell significantly last week.
US stocks are likely to take cues from FED meet and results of major financials and lehman's fate.
U.S. Economic Events:
Monday, September 15, 2008 : Aug Industrial Production.
Tuesday, September 16, 2008 : Consumer Price Index , Retail Sales,FOMC Meeting; Fed funds interest rate decision.
Thursday, September 18, 2008 : Initial Jobless Claims.
MarketS DailY - Sep 12
US Markets:
DOW
164.79
+1.46%
11,433.71
NASDAQ
29.52
+1.32%
2,258.22
Asia at 9 AM:
NIKKEI 12,232.99 +130.49 +1.08%
HANG SENG 19,452.77 +64.05 +0.32%
News Today:
*Asian stocks recover on news of Lehman's takeover. Lehman shares fell 42% in wall street ( Read our Special story on Lehman below)
* Inflation came at 12.10% vs 12.34% as oil prices cooled, Prime ministers Eco advisor council said they don't expect Further monetary tightening from RBI.
* IIP nos are in focus today
* Index heavy weight Reliance is very weak and not supporting the markets, as oil cools off concerns are that Oil refining companies will lose margins and is clearly weighing on RIL
* China industrial output growth eases to 12.8%
* Euro Trades Near One-Year Low against Dollar , Rupee weakens further breaching 45.60 Mark.
*Bank of Korea holds key interest rate steady at 5.25%.
*Crude oil slips toward $100 per barrel.
* Gold up from 11-month low, physical buying supports recovery.
2008 - EMERGING MARKETS PERFORMANCE
Best-performing markets:
Kuwait's KSE Price Index 8%
Chile's IPSA index -9%
South Africa's All-Share index -12%
Worst-performing markets
China's Shanghai Composite -58%
Vietnam's VN Index -41%
Greece's ASE index -39%
DOW
164.79
+1.46%
11,433.71
NASDAQ
29.52
+1.32%
2,258.22
Asia at 9 AM:
NIKKEI 12,232.99 +130.49 +1.08%
HANG SENG 19,452.77 +64.05 +0.32%
News Today:
*Asian stocks recover on news of Lehman's takeover. Lehman shares fell 42% in wall street ( Read our Special story on Lehman below)
* Inflation came at 12.10% vs 12.34% as oil prices cooled, Prime ministers Eco advisor council said they don't expect Further monetary tightening from RBI.
* IIP nos are in focus today
* Index heavy weight Reliance is very weak and not supporting the markets, as oil cools off concerns are that Oil refining companies will lose margins and is clearly weighing on RIL
* China industrial output growth eases to 12.8%
* Euro Trades Near One-Year Low against Dollar , Rupee weakens further breaching 45.60 Mark.
*Bank of Korea holds key interest rate steady at 5.25%.
*Crude oil slips toward $100 per barrel.
* Gold up from 11-month low, physical buying supports recovery.
2008 - EMERGING MARKETS PERFORMANCE
Best-performing markets:
Kuwait's KSE Price Index 8%
Chile's IPSA index -9%
South Africa's All-Share index -12%
Worst-performing markets
China's Shanghai Composite -58%
Vietnam's VN Index -41%
Greece's ASE index -39%
The Lehman Saga
Lehman the 4th biggest brokerage in US is news for some time for all wrong reasons. Wall street butchered the Lehman shares since last few weeks. Yesterday (Sep 10) Lehman posted a loss of $4 billion. Since the beginning of the credit crisis an year ago Lehman and other global financial-services firms have reported more than $500 billion in losses. Many experts believe that the figure could go as high as $1 Trillion. Starting january , 11 U.S. commercial banks have failed. In July, regulators shut down IndyMac Bank.
Not long ago the all famous Bear Sterns went bust,the firm had to be bailed out by J.P. Morgan Chase. Seems Lehman will follow the Bear Sterns way. One respite for Lehman is that it can borrow funds through a special window created by FED to help ailing financial firms.
Lehman is looking to raise Funds by selling its assets. Popular rating agency Moody's has said that it will probably downgrade the stock. Potential acquirers for Lehman could be Nomura securities and Goldman Sacchs.
Lehman's Equity Holding in India:
Anant Raj Inds. Ltd. 1.82 5362500
Champagne Indage Ltd. 1.55 236574
Consolidated Construction Consortium Ltd. 1.36 503000
Development Credit Bank Ltd. 3.04 5301900
Edelweiss Capital Ltd. 1.8 1350000
Emkay Global Financial Services Ltd. 4.05 982134
Godawari Power & Ispat Ltd. 1.47 413832
Golden Tobacco Ltd. 1.7 300000
I O L Netcom Ltd. 1.46 400000
I V R C L Infrastructures & Projects Ltd. 1.2 1600000
K P I T Cummins Infosystems Ltd. 1.11 862823
Opto Circuits (India) Ltd. 0.64 600000
Orbit Corporation Ltd. 4.82 1750000
Pioneer Embroideries Ltd. 3.23 394356
Prajay Engineers Syndicate Ltd. 1.15 457701
Prithvi Information Solutions Ltd. 2.63 476160
Spice Communications Ltd. 1.33 9203339
Spice Mobiles Ltd. 4.41 3289474
West Coast Paper Mills Ltd. 4.36 2500065
Not long ago the all famous Bear Sterns went bust,the firm had to be bailed out by J.P. Morgan Chase. Seems Lehman will follow the Bear Sterns way. One respite for Lehman is that it can borrow funds through a special window created by FED to help ailing financial firms.
Lehman is looking to raise Funds by selling its assets. Popular rating agency Moody's has said that it will probably downgrade the stock. Potential acquirers for Lehman could be Nomura securities and Goldman Sacchs.
Lehman's Equity Holding in India:
Anant Raj Inds. Ltd. 1.82 5362500
Champagne Indage Ltd. 1.55 236574
Consolidated Construction Consortium Ltd. 1.36 503000
Development Credit Bank Ltd. 3.04 5301900
Edelweiss Capital Ltd. 1.8 1350000
Emkay Global Financial Services Ltd. 4.05 982134
Godawari Power & Ispat Ltd. 1.47 413832
Golden Tobacco Ltd. 1.7 300000
I O L Netcom Ltd. 1.46 400000
I V R C L Infrastructures & Projects Ltd. 1.2 1600000
K P I T Cummins Infosystems Ltd. 1.11 862823
Opto Circuits (India) Ltd. 0.64 600000
Orbit Corporation Ltd. 4.82 1750000
Pioneer Embroideries Ltd. 3.23 394356
Prajay Engineers Syndicate Ltd. 1.15 457701
Prithvi Information Solutions Ltd. 2.63 476160
Spice Communications Ltd. 1.33 9203339
Spice Mobiles Ltd. 4.41 3289474
West Coast Paper Mills Ltd. 4.36 2500065
MarketS DailY - Sep 11
US Markets:
DOW
38.19
+0.34%
11,268.92
NASDAQ
18.89
+0.85%
2,228.70
Asia at 9 AM:
NIKKEI - 12,201.89 -144.74 -1.17%
HANG SENG - 19,552.28 -447.50 -2.18%
* Rupee breaches 45 market hits a 2 year low agianst dollar
* US dollar hits 1-yr high vs euro
* Gold drops as dollar hits year high
* Reliance is facing selling pressure which is weighing on the Index.
* Two Events to watch out for are Inflation and IIP nos.
*New Zealand's central bank orders 0.5% cut in key interest rate to 7.5%
* Troubled brokerage Lehman posts $4 billion loss.
* India slips to 122nd spot in Doing Business index, lower than Pakistan and Bangladesh.
* Oil prices continues to fall as it falls to a 4 month low.
* Indian Crude basket traded below $100/ barrel for the first time since April
* The 9/11 Terrorist attacks on WTO in US : Today Marks Seven years.
DOW
38.19
+0.34%
11,268.92
NASDAQ
18.89
+0.85%
2,228.70
Asia at 9 AM:
NIKKEI - 12,201.89 -144.74 -1.17%
HANG SENG - 19,552.28 -447.50 -2.18%
* Rupee breaches 45 market hits a 2 year low agianst dollar
* US dollar hits 1-yr high vs euro
* Gold drops as dollar hits year high
* Reliance is facing selling pressure which is weighing on the Index.
* Two Events to watch out for are Inflation and IIP nos.
*New Zealand's central bank orders 0.5% cut in key interest rate to 7.5%
* Troubled brokerage Lehman posts $4 billion loss.
* India slips to 122nd spot in Doing Business index, lower than Pakistan and Bangladesh.
* Oil prices continues to fall as it falls to a 4 month low.
* Indian Crude basket traded below $100/ barrel for the first time since April
* The 9/11 Terrorist attacks on WTO in US : Today Marks Seven years.
