Markets are selling over very hard as we break key support levels.
We are going to be teach people how this works going forward in our SMF Economic Club you can sign up now by sending an email to info@stockmarketfunding.com or by calling us today at 702-685-0772 we will be happy to update you so that you can start planning your futures moving forward.
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WSJ reports rampant speculation on bank nationalization gained momentum in the bond market, sending the cost of protecting senior bank debt to record levels as sinking shares of financial institutions heightened concerns about their viability.
While Citigroup (C) and Bank of America (BAC) featured prominently in the speculation, investors said the concerns were more broadly based about the financial system as a whole.
Uncertainty over what nationalization would look like if the government decided to intervene in the still-troubled financial sector drove the selling of stocks and bonds and buying of credit protection.
The cost of protecting senior debt of Citi, Bank of America and Wells Fargo (WFC) rose to record levels. Meanwhile, bank hybrid debt has plummeted this week, as investors worry these securities, which blend features of both stocks and bonds, could be wiped out if there's a government intervention.
Bank of America and Citigroup hybrids have dropped more than 10 cents on the dollar to around 20 cents on the dollar.
Risk premiums on 10-year senior bank bonds across the board have widened about 60 basis points for the past two weeks, according to a bond investor.
A bond trader said bank senior bonds were trading between 20 to 50 basis points wider on the week, but other market participants noted that these bonds have been thinly traded.
Prepare yourself for the "New Economy"
We have told investors and traders worldwide what it would take the start the rally and this here has to stop and bottom out for the markets to look forward as they have no clarity and therefore the selling keeps up.
We are going to be teach people how this works going forward in our SMF Economic Club you can sign up now by sending an email to info@stockmarketfunding.com or by calling us today at 702-685-0772 we will be happy to update you so that you can start planning your futures moving forward.
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At Oppenheimer's Vail Semi Summit, firm's meetings with semi cap equip companies (LRCX, TER) suggest that rock-bottom service levels in Q1 (Mar) have made it a hair-trigger for top-line stabilization in Q2 (Jun), as foundry utilization rates recover.
As a follow-up to their upgrade of VRGY (on 02/11 @ $8.31) as a potential inventory replenishment trade, they also have identified LRCX as a potential beneficiary.
They say potential, as foundry wafer start forecasts have been known to fall victim to the macro shrink-ray in this environment.
owever, recent checks consistently suggest foundry (TSMC) utilization rate recovery of +12%-20% Q/Q in Q2, with wafer orders led by QCOM, MediaTek, even NVDA. Given this, firm would be inclined to turn more constructive on KLAC, too, but for us, KLAC's outsized dependence on INTC for hitting its rev guidance in the Mar qtr is the rub. Given this divide between KLAC/LRCX (LRCX has zero INTC risk), firm would sell KLAC for LRCX.
Prepare yourself for the "New Economy"
We have told investors and traders worldwide what it would take the start the rally and this here has to stop and bottom out for the markets to look forward as they have no clarity and therefore the selling keeps up.
We are going to be teach people how this works going forward in our SMF Economic Club you can sign up now by sending an email to info@stockmarketfunding.com or by calling us today at 702-685-0772 we will be happy to update you so that you can start planning your futures moving forward.
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Reuters.com reports the co's loss-making carmaker Saab Automobile on Friday sought legal protection from creditors to allow it to restructure and seek new funding for continued production. Saab made a loss of about 3 billion Swedish crowns ($340.1 million) in 2008, according to documents filed by the company with a Swedish court. It expects a similar loss this year, blaming falling demand, aging products, excess capacity and high costs. "We explored and will continue to explore all available options for funding and/or selling Saab, and it was determined a formal reorganization would be the best way to create a truly independent entity that is ready for investment," Saab Managing Director Jan-Ake Jonsson said in a statement. Saab said its reorganization plans included concentrating production and that it would seek funding from public and private sources during the reorganization process. In its court filing, Saab said GM has said it "would not fund further the projected losses of the company (Saab)," but would provide liquidity for the company to pursue a reorganization.
Prepare yourself for the "New Economy"
We have told investors and traders worldwide what it would take the start the rally and this here has to stop and bottom out for the markets to look forward as they have no clarity and therefore the selling keeps up.
We are going to be teach people how this works going forward in our SMF Economic Club you can sign up now by sending an email to info@stockmarketfunding.com or by calling us today at 702-685-0772 we will be happy to update you so that you can start planning your futures moving forward.
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WSJ reports Chinese companies plan to purchase a total of $2.23 billion worth of products and services on a buying spree to the U.K., a person familiar with the situation said Friday.
The trip is part of a European shopping tour as Beijing looks to boost overseas investments and take advantage of tumbling asset values in hard-hit Western economies.
The tour, organized by China's Ministry of Commerce and scheduled to take place later this month, will also include Germany, Switzerland and Spain.
While China has often used such investments to ease pressure from the West on various political issues, the trip also reflects a broader government strategy to bargain-hunt for key natural resources and high-technology goods through direct purchases or equity deals amid the wreckage of a deep global recession.
Prepare yourself for the "New Economy"
We have told investors and traders worldwide what it would take the start the rally and this here has to stop and bottom out for the markets to look forward as they have no clarity and therefore the selling keeps up.
We are going to be teach people how this works going forward in our SMF Economic Club you can sign up now by sending an email to info@stockmarketfunding.com or by calling us today at 702-685-0772 we will be happy to update you so that you can start planning your futures moving forward.
FREE Sign Up www.stockmarketfunding.com let SMF explain to you what this mean for YOU how you can take advantage of this.
The Wall Street Journal reports Anglo American (AAUK) Friday reported a 29% fall in net profit for 2008 and said it would cut 11% of its work force and suspend its share buyback and dividend in the face of a poor economic outlook marked by "unprecedented" uncertainty.
The miner said it is reducing headcount by 19,000 workers, or 11% of its work force of 170,000. It also outlined cuts in capital spending and production.
Anglo American Chief Executive Cynthia Carroll said the co was taking the steps to preserve cash so it could emerge from the downturn in a position to resume growth, though she acknowledged that the co had little visibility on when that might be. "It's a very uncertain time," Ms. Carroll said in a conference call with reporters.
The cost-cutting moves came as Anglo American said net profit declined to $5.22 bln in 2008 from $7.3 bln in 2007. The co's base metals division was the biggest drag on profit amid lower prices and sales, coupled with rising costs.
Revenue was down 7.6% to $32.96 bln from $35.67 bln, in part reflecting the disposal of the co's Mondi packaging business and reduction of its stake in gold miner AngloGold Ashanti (AU) in 2007.
Prepare yourself for the "New Economy"