NEW YORK (CNNMoney.com) -- Stocks retreated Tuesday, led by financial, retail and transportation shares as investors bailed out of a variety of stocks after the recent retreat.
The Dow Jones industrial average (INDU) slumped 240 points or 2.7%. The Standard & Poor's 500 (SPX) index lost 2.3% and the Nasdaq composite (COMP) lost 1.6%. Stocks had been on both sides of unchanged through the session as investors digested the day's batch of negative corporate news and kept an eye on the latest news on a potential automaker loan package. But stocks turned decidedly negative in the afternoon. An agreement on a loan package for the auto industry had been expected late Monday. But lawmakers were still debating the details Tuesday, with a package now expected later today or Wednesday. The back-and-forth was perhaps causing some of the stock weakness Tuesday, with investors eager to see a resolution, said Ron Kiddoo, chief investment officer at Cozad Asset Management.
Thursday, December 11, 2008
N.Z. seeks explorers for Raukumara, Northland Basins
New Zealand’s government is seeking exploration proposals for 66,000 square kilometers (25,500 square miles) of ocean off the east coast and Northland peninsula of the country’s North Island.The government is offering two exploration permits over the Raukumara basin northeast of East Cape and six blocks west of the Northland peninsula, Energy Minister Gerry Brownlee said in a statement on Wednesday. The two regions have considerable potential for oil and gas and have already attracted interest from domestic and international explorers, he said. New Zealand government scientists have been studying the country’s deepwater basins as part of a campaign to lure global explorers and expand the nation’s oil and gas output beyond the Taranaki region. Deep sediments and on and offshore oil seeps make Raukumara one of New Zealand’s “most prospective” frontier basins, according to GNS Science geologists.
Ex-officer faults mortgage giants for ‘orgy’ of nonprime loans
Fannie Mae and Freddie Mac engaged in “an orgy of junk mortgage development” that turned the two mortgage-finance giants into vast repositories of subprime and similarly risky loans, a former Fannie executive testified on Tuesday.
The mortgage development, which began in 2005 and lasted until at least last year, happened as senior executives at the two government-sponsored enterprises ignored repeated warnings from internal risk officers that they were delving too deeply into dangerous territory, according to internal documents released at a Congressional hearing in Washington. The two companies have been taken over by the government.
The mortgage development, which began in 2005 and lasted until at least last year, happened as senior executives at the two government-sponsored enterprises ignored repeated warnings from internal risk officers that they were delving too deeply into dangerous territory, according to internal documents released at a Congressional hearing in Washington. The two companies have been taken over by the government.
VW asks for state guarantees for financial services unit
FRANKFURT (AFP) -- Volkswagen said Tuesday it had sought loan guarantees for its financial services unit as part of government aid for the banking sector, the first German automaker to ask for such help.
""We have filed two requests,"" one for the financial services division itself and another for the Volkswagen bank that is a sub-unit of the division, a VW spokesman told AFP. He declined to give the amount requested and the date the request was made. ""It is a question of obtaining public guarantees. It is not a request for recapitalization,"" the spokesman said. VW had said several weeks ago that is was considering such a move after encountering problems with refinancing for its auto credit operations. The German government's bank support plan provides a total of 480 billion euros (620 billion dollars) in aid, with the vast majority representing guarantees for loans. Berlin is also ready to inject cash into troubled German banks in exchange for stakes in them, but relatively few banks have applied for the cash.
""We have filed two requests,"" one for the financial services division itself and another for the Volkswagen bank that is a sub-unit of the division, a VW spokesman told AFP. He declined to give the amount requested and the date the request was made. ""It is a question of obtaining public guarantees. It is not a request for recapitalization,"" the spokesman said. VW had said several weeks ago that is was considering such a move after encountering problems with refinancing for its auto credit operations. The German government's bank support plan provides a total of 480 billion euros (620 billion dollars) in aid, with the vast majority representing guarantees for loans. Berlin is also ready to inject cash into troubled German banks in exchange for stakes in them, but relatively few banks have applied for the cash.
Tuesday, December 9, 2008
Middle East airlines could see losses mounting to $200m in 2009
Geneva: Airlines in the Middle East will see their losses double to $200 million (Dh735 million) in 2009 as the global aviation industry faces falling revenues due to the economic slowdown, the International Air Transport Association (IATA) said yesterday.
The Geneva-based industry group said the challenge for the region will be to match capacity to demand as fleets expand and traffic slows, particularly for long-haul connections.
It said the global aviation industry will lose $2.5 billion in 2009 on top of the $5 billion it is forecast to lose this year.
The sharp fall in fuel prices, which could have placed the industry in a positive financial position, will be offset by the excessive loss of revenues.
This fall in revenues will be the highest the industry has suffered in 50 years
The Geneva-based industry group said the challenge for the region will be to match capacity to demand as fleets expand and traffic slows, particularly for long-haul connections.
It said the global aviation industry will lose $2.5 billion in 2009 on top of the $5 billion it is forecast to lose this year.
The sharp fall in fuel prices, which could have placed the industry in a positive financial position, will be offset by the excessive loss of revenues.
This fall in revenues will be the highest the industry has suffered in 50 years
Gulf remittances could decline 9%
Dubai: Remittances from the Gulf Cooperation Council (GCC) countries are expected to fall nine per cent next year compared to an increase of 38 per cent in 2008, according to a report by the World Bank.
Money from the GCC accounted for 63 per cent of total foreign remittances received by Bangladesh this year, and the percentage was 52 per cent for Pakistan.
UAE-based money transfer companies told Gulf News they expect a slowdown in funds being sent by expatriate workers to their home countries, but ruled out a dramatic reduction.
A combination of falling oil prices and the impact of the global financial crisis on the GCC economies is expected to hit the labour market.
Money from the GCC accounted for 63 per cent of total foreign remittances received by Bangladesh this year, and the percentage was 52 per cent for Pakistan.
UAE-based money transfer companies told Gulf News they expect a slowdown in funds being sent by expatriate workers to their home countries, but ruled out a dramatic reduction.
A combination of falling oil prices and the impact of the global financial crisis on the GCC economies is expected to hit the labour market.
China wants to put $10b in Brazil oil: official
BRASILIA (AP) — China wants to loan Brazil’s state oil company $10 billion to help develop massive new oil fields in deep water off the coast of Rio de Janeiro, Brazil’s top energy official said in comments published Monday.
Mines and Energy Minister Edison Lobao also told the Folha de S. Paulo newspaper that the United Arab Emirates has offered to finance field development, but he did not specify a price tag. Lobao said Chinese officials contacted his ministry to propose a loan and Petrobras then negotiated directly with the Chinese. He gave no details on the status of talks, and any deal would have to be approved by his ministry. Petrobras, in an e-mailed statement to The Associated Press, didn’t confirm a China deal, but said the company has historically searched for “varied sources of financing” and that recent deals will be included in its new investment plan, expected in the coming weeks
Mines and Energy Minister Edison Lobao also told the Folha de S. Paulo newspaper that the United Arab Emirates has offered to finance field development, but he did not specify a price tag. Lobao said Chinese officials contacted his ministry to propose a loan and Petrobras then negotiated directly with the Chinese. He gave no details on the status of talks, and any deal would have to be approved by his ministry. Petrobras, in an e-mailed statement to The Associated Press, didn’t confirm a China deal, but said the company has historically searched for “varied sources of financing” and that recent deals will be included in its new investment plan, expected in the coming weeks
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