Archive for the ‘DOW’ Category

Stocks fall on belief global recession is at hand

October 24, 2008

Wall Street has ended the week with another sharp loss, joining stock markets around the world that fell on the growing belief that a punishing economic recession is at hand.

It was a dramatic day on the Street, with the Dow Jones industrials falling more than 500 points soon after trading began, and, following the pattern of recent sessions, recovering ground only to fall sharply again. The blue chips ended the day down 312 points at the 8,378 level, while all the major indexes fell more than 3 percent.

Grim news from big global companies including Sony and Daimler, coming after disappointing outlooks from some big U.S. corporations, has investors believing there will be a long and deep global recession. The selling also came from hedge funds that had to unwind positions to pay back debts.

By TIM PARADIS, AP Business Writer


AP

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/wall_street;_ylt=AlOjuzzp7Mg_YNmhDJGmChes0NUE

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Gordon Brown’s New Rules for Our Global Economy

October 17, 2008

By Gordon Brown
The Washington Post
Friday, October 17, 2008; Page A25

This is a defining moment for the world economy.

We are living through the first financial crisis of this new global age. And the decisions we make will affect us over not just the next few weeks but for years to come.

The global problems we face require global solutions. At the end of World War II, American and European visionaries built a new international economic order and formed the International Monetary Fund, the World Bank and a world trade body. They acted because they knew that peace and prosperity were indivisible. They knew that for prosperity to be sustained, it had to be shared. Such was the impact of what they did for their day and age that Secretary of State Dean Acheson spoke of being “present at the creation.”

British Prime Minister Gordon Brown listens to questions after ... 
British Prime Minister Gordon Brown listens to questions after an EU summit in Brussels, Thursday Oct. 16, 2008. European Union leaders have agreed to stick to ambitious plans to cut greenhouse gases by 20 percent by 2020, but divisions over how to share out the cuts have been widened by fears over the impact of the financial crisis.(AP Photo/Yves Logghe)

Today, the same sort of visionary internationalism is needed to resolve the crises and challenges of a different age. And the greatest of global challenges demands of us the boldest of global cooperation.

The old postwar international financial institutions are out of date. They have to be rebuilt for a wholly new era in which there is global, not national, competition and open, not closed, economies. International flows of capital are so big they can overwhelm individual governments. And trust, the most precious asset of all, has been eroded.

When President Bush met with the Group of Seven finance ministers last weekend, they agreed that we all had to deal with not only the issue of liquidity in the banking system but also the capitalization and funding of banks. It was clear that national action alone would not have been sufficient. We knew we had to send a clear and unambiguous message to the markets that governments across the world were prepared to act in a coordinated manner and do whatever was necessary to stabilize the system and address the fundamental problems.

Confidence about the future is vital to building confidence for today. We must deal with more than the symptoms of the current crisis. We have to tackle the root causes. So the next stage is to rebuild our fractured international financial system.

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http://www.washingtonpost.com/w
p-dyn/content/article/2008/10/16
/AR2008101603179.html?hpid=opinionsbox1

London’s FTSE 100 falls sharply on recession fears

October 16, 2008

Shares prices in FTSE 100 in London opened down sharply as fears of recession gripped markets worldwide.

By Alistair Osborne and Edmund Conway
The Telegraph (UK)

With Japanese shares suffering their biggest loss in two decades, investors were in no mood to hold stocks and within minutes of the start the FTSE 100 index of leading shares fell 236 points – or 5.8pc – to 3840.

Miners, travel companies and retailers were among the biggest fallers as markets focussed on an economic slowdown. TUI Travel slid 18.8pc, platinum miner Lonmin 17pc and plumbing group Wolseley 13pc.

Markets have been spooked the effect of a slowdown on trade as America reported worse-than-expected US retail sales, unemployment rocketed in Britain and increasing evidence of falling demand from China’s once booming economy.

Tokyo’s Nikkei 225 index plunged 11.41pc to close at 8458, as growing fears of a global recession hammered world markets.

South Korea, whose export-driven economy is in crisis, with the won in freefall and Standard & Poor’s saying it might cut credit ratings for the country’s leading banks, saw the Kospi index fall 9.4pc in the afternoon, heading for its worst day ever.

Hong Kong’s Hang Seng index was down 7.6pc, with mainland Chinese firms exposed to falling commodity prices worst hit. Australia’s benchmark S&P/ASX 200 fell 6.7pc and New Zealand’s NZX-50 4.8pc to 2,765, its lowest level since September 2004.

Sentiment is grim. “Don’t stand in front of the freight train,” said Sonray Capital Markets chief economist Clifford Bennett in Tokyo. “This is clearly a panic with further to go. The equity market game has fundamentally changed.”

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http://www.telegraph.co.uk/finance/markets/
3207907/Financial-crisis-FTSE-100-falls-sharply-
on-recession-fears.html

U.S. Must Confront Possibility of Long, Deep Recession

October 16, 2008

By ADAM GELLER, AP National Writer 

NEW YORK – The U.S. has not endured a deep and prolonged recession in more than a quarter century — enough time for many Americans to forget what one feels like.

But unlike the last two relatively short recessions, this one could be much longer and more severe, potentially bringing with it anxiety and job losses not seen in many years.

“In thinking about recessions, people will naturally think back to the last couple” in the early 1990s and in 2001, said Paul Ashworth, senior U.S. economist at Capital Economics in Toronto. “What they should be looking back at is further.”

That requires dredging up memories of the economic slides in the 1970s, when an Arab oil embargo starved the nation of energy, and the early 1980s, when unemployment and inflation soared.

The last recession — coinciding with the collapse of the tech stock bubble and the terrorist attacks of 2001 — lasted just eight months. It was known more for the slow “jobless” recovery that followed than for the depth of the downturn.

Many economists agree that the nation won’t be so fortunate this time.

“I don’t think we can escape damage to the real economy,” former Federal Reserve Chairman Paul Volcker said this week in Singapore. “I think we almost inevitably face a considerable recession.”

The Fed’s current chairman, Ben Bernanke, delivered a more measured, but similarly grave assessment to economists, saying the recent financial turmoil “may well lengthen the period of weak economic performance and further increase the risks to growth.”

The signs of stress are starting to show: The U.S. has lost 760,000 jobs since late last year, and retail sales in September plunged 1.2 percent, the largest drop in three years.

Every recession is driven by its own dynamic and psychology. The current slump started with the collapse in the housing market and got worse with sharp restrictions on credit that pressured consumer spending and businesses.

That is a different environment from 1973, when an oil crisis was the culprit, squeezing U.S. businesses and consumers. In the early 1980s, raging inflation and high interest rates took their toll.

Both periods saw millions of Americans out of work. In 1975, the unemployment rate peaked at 9 percent. In 1982, it jumped to 10.8 percent.

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http://news.yahoo.com/s/ap/20
081015/ap_on_bi_ge/meltdown_
recession;_ylt=AtgNO7MiepobjPABCppxQ_qs0NUE

Stock Market Dives 733 or 8% on Fears of U.S. Recession; Second Biggest Drop Ever

October 15, 2008

I’m no economist but apparently I am smarter than the current Fed Chairman Ben Bernanke and President Bush.  They still have not acknowledged the recession we are in now….even after former fed Charman paul Volcker said we were in a recession yesterday.

DA!

We can all read and think and I stated categorically last March 8, 2008, that the United States was in a recession.  I made this statement after mulling over the facts starting around September 2007.  Turns out I was fully seven months ahead of former Fed Charman Paul Volcker who made the declaration yesterday.

Go figure!

By Matt Egan
Fox Business

Fears the U.S. will sink into a recession slammed Wall Street on Wednesday, sending the Dow plunging 700 points lower and below the 9000 threshold.

An ugly report on retail sales served as a wake-up call for the markets, reminding Wall Street that even as the ailing credit markets appear to have improved, the economy is still in a precarious state. 

Today’s Market

According to preliminary calculations, the Dow Jones Industrial Average lost 758.80 points, or 8.15%, to 8552.03, the broader S&P 500 dropped 92.11 points, or 9.23%, to 905.90 and the Nasdaq Composite lost 150.68 points, or 8.47%, to 1628.33. The consumer-friendly FOX 50 fell 64.93 points, or 8.68%, to 683.27.

The economic pessimism kept the pressure on the markets on Wednesday as the major indexes ended at session lows, never even peeking into positive territory. The selloff add to modest losses from Tuesday, combining to erase more than half Monday’s record 936-point surge on the Dow. 

“There’s still a little bit of gloom and doom in front of us,” said Michael Mainwald, head trader at LEK Securities. “Until some of these government-sponsored rescue plans work their way into the [financial] system, we’re going to have these 3% to 5% moves either way.”

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http://www.foxbusiness.com/story/markets/futures
-decline-earnings-return-prominance/

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U.S. Secretary of Treasury Henry Paulson (R) listens as Federal ... 
Above U.S. Secretary of Treasury Henry Paulson (R) listens as Federal Reserve Chairman Ben Bernanke (L) talks about financial markets, fear of recession and the Market Stability Initiative in the Cash Room of the Treasury Department in Washington, October 14, 2008.
REUTERS/Larry Downing (UNITED STATES)

I’m no economist but I can read and think and I stated categorically last March 8, 2008, that the United States was in a recession.  I made this statement after mulling over the facts starting around September 2007.  Turns out I was fully seven months ahead of former Fed Charman Paul Volcker who made the brilliant deduction today, October 14, 2008, that the U.S. was in a recession.  The current Fed Chairman Ben Bernanke and President Bush have still not acknowledged the recession we are in now.

Read the rest:
https://johnibii.wordpress.com:80/2008/10/14/obama-
really-believes-in-wealth-redistribution-money-goes-
from-those-who-earned-to-those-who-didnt/

**************************

By TIM PARADIS, AP Business Writer

NEW YORK – Investors agonizing over a faltering economy sent the stock market plunging all over again Wednesday after two disheartening reports convinced Wall Street that a recession, if not already here, is inevitable. The market’s despair — fed by a stream of disheartening economic data — propelled the Dow Jones industrials down 733 points to their second-largest point loss ever, and the major indexes all lost at least 7 percent.

Traders work on the floor of the New York Stock Exchange, October ... 
Traders work on the floor of the New York Stock Exchange, October 15, 2008. U.S. stocks slid at the open on Wednesday as investors worried that efforts to ease the credit crisis would not avert a recession, overshadowing solid profits from Coca-Cola Co , a bellwether for consumer spending.REUTERS/Brendan McDermid (UNITED STATES)

The slide meant that the Dow, which lost 76 points on Tuesday, has given back all but 126 points of its record 936-point gain of Monday, which came on optimism about the banking system in response to the government’s plans to invest up to $250 billion in financial institutions.

Wednesday’s selloff began after the government’s report that retail sales plunged in September by 1.2 percent — almost double the 0.7 percent drop analysts expected — made it clear that consumers are reluctant to spend amid a shaky economy and a punishing stock market.

The Commerce Department report was sobering because consumer spending accounts for more than two-thirds of U.S. economic activity. The reading came as Wall Street was refocusing its attention on the faltering economy following stepped up government efforts to revive the stagnant lending markets.

Then, during the afternoon, the release of the Beige Book, the assessment of business conditions from the Federal Reserve, added to investors’ angst….

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http://news.yahoo.com/s/ap/20081015/ap_on_bi_st_ma_re/
wall_street;_ylt=AigXgb9565eUtw4z5BSaNZys0NUE

Asian, International Stocks Slip as Global Recession Fears Rise

October 15, 2008

By Kevin Plumberg

HONG KONG (Reuters) – Most Asian stock markets fell 1-3 percent while gold rose on Wednesday on investor worries of lower corporate earnings in a weakening global economy, even as money markets continued to heal gradually.

Major European share markets were expected to open as much as 2 percent down , according to financial bookmakers, after the FTSEurofirst 300 index rose nearly 14 percent in the last two days.

A stock trader negotiates in the iBovespa future index pit in ... 
A stock trader negotiates in the iBovespa future index pit in Sao Paulo, Brazil. Across the world, leading central banks have slashed interest rates in a coordinated effort to bring calm to global financial markets, amid dire warnings of economic pain ahead.(AFP/Mauricio Lima)

Oil prices were not far from a 12-month low hit on Friday while the yen and U.S. Treasuries climbed, reflecting fears the damage that the financial crisis inflicted on the global economy is still working its way through the system.

Quarterly reports have begun to trickle in, with JPMorgan Chase & Co and Merrill Lynch set to post their results this week. Investors will be focused on the outlook and whether most expectations for a rebound in 2009 will have to be reined in.

“While the financial system crisis appears to be heading in a positive direction, the economy appears to be increasingly bad, and this is raising worries about company earnings. We still don’t know how much these might be hit,” said Hiroaki Osakabe, a fund manager at Chibagin Asset Management in Tokyo.

The MSCI index of Asia-Pacific stocks outside of Japan fell 2.2 percent and is down 12.5 percent so far in October.

Hong Kong’s Hang Seng index…

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http://news.yahoo.com/s/nm/20081015/ts_nm/us_mar
kets_global;_ylt=Ap9Ao2IQwtYON9r_wAfVKNas0NUE