Thursday, September 3rd, 2009
China’s state-owned enterprises may unilaterally terminate commodities contracts as they try to cut massive losses from financial derivatives, an industry source told Caijing on August 28.
According to the source, China’s State-owned Assets Supervision and Administration Commission (SASAC) has sent notice to six foreign financial institutions informing them that several state-owned enterprise will reserve the right to default on commodities contracts signed with those institutions.
Most investment banks may “just swallow” any losses arising from canceled contracts, the executive said, adding that any losses are usually made up for with compensating trades.
Source: Caijing.com.cn
Posted in Asia, China, FYI, Goldman Sachs, Government, Investment, Markets, Merrill Lynch, Morgan Stanley, US, banking, commodities, economy, energy, finance, oil, opinion, worldwide | No Comments »
Tuesday, August 11th, 2009
“Chinese stock and property markets have bubbled up again. It was fueled by bank lending and inflation fear. I think that Chinese stocks and properties are 50-100% overvalued. The odds are that both will adjust in the fourth quarter. However, both might flare up again sometime next year. Fluctuating within a long bubble could be the dominant trend for the foreseeable future. The bursting will happen when the US dollar becomes strong again. The catalyst could be serious inflation that forces the Fed to raise interest rate.” - Andy Xie, former Morgan Stanley Analyst
Source: Ritholtz.com, my1510.CN
Posted in Asia, China, Investment, Markets, economy, finance, opinion | No Comments »
Friday, July 24th, 2009
The composite second-quarter earnings for companies in the Standard & Poor’s 500 Index are expected to drop 31% from a year earlier, compared with a decline of 35% predicted last week.
Declines are expected in nine of the 10 sectors in the S&P 500 Index from a year earlier. The health-care sector is the only one expecting an increase in earnings, of 2%.
Source: WSJ
Posted in Construction, FYI, General, Healthcare, Investment, Manufacturing, Markets, News, Services, US, banking, economy, finance | No Comments »
Thursday, July 9th, 2009
More than half of potential homebuyers say they’re still not prepared to jump into the market, and fear of losing their jobs is the No. 1 reason, a new poll shows.
Source: CNBC, AP
~News submitted by upthecreek
Posted in Markets, US, housing, real estate, unemployment | No Comments »
Tuesday, July 7th, 2009
After more than three months of greed, fear is returning to global financial markets. Amid growing nervousness about the economy’s prospects, the Dow Jones Industrial Average fell 161.27 points, or 1.94%, on Tuesday, to 8163.60, its lowest close since April 28. It still is up almost 25% since beginning a sharp rebound from a 12-year low on March 9, but it had been up as much as 34% a month ago.
Source: WSJ
Posted in Markets, US, economy | No Comments »
