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    Obama to speak out; Republicans rage

    Markets remained stable on Thursday as investors await President Obama’s speech on job proposals detailing plans of boosting employment before a joint session of Congress. President Obama is said to put forward a jobs package of an estimated $300bn amid US voter frustration over the country’s 9.1 percent unemployment. The plan will outline measures to help create jobs swiftly, and improve wages for middle class households, while simultaneously trimming the deficit in the budget. It is expected to centre on schemes that encourage the hiring of workers for smaller businesses, an extension of a payroll tax cut for workers, and infrastructure...
    On September 8, 2011 / By
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    Saab files for bankruptcy protection

    Swedish car manufacturer Saab on Wednesday filed for bankruptcy protection from creditors amid mounting debt and production stoppages in a last minute attempt to save the brand. The filing at the Swedish court includes its subsidiaries Saab Powertrain and Saab Tools but excludes overseas subsidiaries and Saab Parts. The car maker signed a financing agreement with Chinese companies Youngman Automotive and Pang Da Automobile Trade but the deals still await regulatory authorisation. Saab Chairman and CEO, Victor Muller, said: “We have concluded that a voluntary reorganisation process will provide us with the necessary time, protection and stab...
    On September 7, 2011 / By
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    Labor Day welcomes volatility amid growth fears

    European and Asian stocks slumped on Labor Day after US growth fears hit the markets late on Friday following weak employment data that showed the US economy had added no jobs at all in August. Stocks in Europe on Monday traded lower on the news with the FTSE 100 down 1.7 percent to 5,201, the Dax 30 dropping 2.6 percent and the CAC 40 index in France decreasing by 2.4 percent. Earlier Asian markets showed unease with the Asia Pacific Index dropping 2.7 percent, the Hang Seng Index down 2.95 percent to 19,616, and the Nikkei 225 down 1.86 percent. Attention will now focus on President Obama’s speech on Thursday which is expected to outline ...
    On September 5, 2011 / By
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    Lawsuits over mortgage debt rattle bank shares

    European banking shares on Friday dropped sharply in anticipation of US jobs data and a published report that the Federal Housing Finance agency is planning to file a lawsuit against “more than a dozen” banks over alleged misrepresentation in mortgage backed securities. Alleged targets of the planned lawsuit are said to include JP Morgan Chase, Deutsche Bank, Goldman Sachs, and Bank of America. Although none of the targets have been officially been confirmed, the report said the suits were expected to be filed by Tuesday. In early trading financial institutions shares slid following the news. Markets observed a 3.7 percent drop for Deutsc...
    On September 2, 2011 / By
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    Asian manufacturing heralds jittery September start

    As increasing prices continue to aggravate Asia’s governments moving into September, manufacturing activity slowed in August within Japan, Taiwan and South Korea, according to data released on Thursday. Investors in the US worried ahead of Labor Day – America’s annual holiday to welcome in September – that it would have adverse affects across the water. South Korea fell for the first time since 2008 to 49.7 from 51.3 in July, presenting a jittering start to September. Taiwan dropped to 45.2 from 46.1 a month earlier. China saw a minor increase in production; however Japan’s growth dropped to 51.9, a three month low. The results publ...
    On September 1, 2011 / By
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    Rosneft ExxonMobil buddy up; Daryl Hannah arrested

    Russia’s Prime Minister Vladimir Putin late on Tuesday announced an agreement between US oil conglomerate ExxonMobil and Russia’s Rosneft to explore the country’s oil-rich Arctic continental shelf. The deal replaces a comparable but failed agreement with BP that differs in that Exxon offers Rosneft assets in Texas and in the Gulf of Mexico in exchange for access to untapped hydrocarbon deposits in the Russian Arctic. “This project promises to be highly interesting and ambitious. Today’s event is sure to receive a positive reaction from the world energy markets; Exxon’s exploration of Russia’s strategic continental and deep water...
    On August 31, 2011 / By
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    BofA sells Construction stake to raise $8.3bn

    Bank of America late on Monday announced it is to sell around half of its ten percent stake in China Construction Bank to a group of investors in an effort to increase capital and shed assets.  The sale of around 13.1 billion shares is expected to generate an estimated $8.3bn in cash proceeds and an after tax gain on sale of around $3.3bn, the bank stated. The US’s largest lender by assets said in a statement: “The current proposed Basel III standards place restrictions on capital that represents ownership in financial institutions above ten percent. The sale of CCB shares announced today would put Bank of America’s ownership in CCB b...
    On August 30, 2011 / By
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    Markets lower ahead of Bernanke speech and Germany rumours

    Markets showed signs of caution and the dollar declined against its counterparts as traders await a speech by Federal Reserve Chairman Ben Bernanke which is expected to show a slowing US economy. Following Japan’s downgrade on Wednesday wild rumours emerged that Germany could face a credit rating cut and unnerved German markets in early trading on Friday. The FTSE 100 dropped 0.9 percent to 5,087.94 and the German Dax slumped 106.15 points to 5474.45, while the dollar fell to $1.4429 per Euro compared to $1.4379 in New York the day before. ...
    On August 26, 2011 / By
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    Greek exposure affects Credit Agricole profits

    Credit Agricole, France’s third largest bank by market value, published in its 2Q11 net profit results on Thursday a 10.6 percent decrease at €339m compared to €379m in the same period last year. The decline was mainly attributed to a pre-tax impairment on its Greek bond exposure of €202m, the bank said in a statement. In Paris trading the lender had dropped around 30 percent in August over the threat the sovereign debt crisis could affect its 960 Italian branches....
    On August 25, 2011 / By
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    Markets vague as Moody’s downgrades Japan

    ?Asian highs were short-lived on Wednesday when regional markets failed to hold on to Tuesday’s gains after sentiment dampened following Moody’s decision to downgrade Japan’s credit rating to Aa3.? The ratings agency said that the nuclear accident coupled with the earthquake disaster had aggravated its economy and deferred Japan’s recovery.?The Nikkei 225 and Hang Seng experienced the biggest losses, with 1.02 percent to 8,644 and 2.10 percent to 19,461, respectively. In the US the Dow gained 2.97 percent while Nasdaq climbed 4.29 percent....
    On August 24, 2011 / By