Tuesday, September 16, 2008

Investors watch out for key US events Tuesday

Investors around the world will be watching out for some key events that will unfold over Tuesday and Wednesday in the world's largest economy the US.
A key question haunting the mind of investors is: what kind of third quarter earnings will the world's largest investment bank Goldman Sachs report Tuesday followed by the world's second largest investment bank Morgan Stanley reporting Wednesday.
After the fourth largest investment bank Lehman Bros filed for Chapter 11 bankruptcy Monday and the third largest investment bank Merrill Lynch agreed to be bought over by Bank of America, many are wondering if the independent securities firm model is on its last legs.
Just six months back another such firm Bear Sterns had gone under and was bought out by JPMorgan-Chase.
"These two may be all right now but who knows two months down the line what they will report," said Naresh Pachisia, managing director of eastern India's largest distributor of financial products, the Kolkata-based SKP Securities Ltd.
Even Lehman Bros and Merrill Lynch had sent out comforting letters to its customers days before reporting huge and unbearable losses, he said.So far, the two firms have been relatively unscathed by the credit crisis, compared with their virtually defunct brethren, and analysts expect Goldman to record a profit of $1.73 a share, or about $680.0 million. Shares of the firm slumped $16.57, or 10.8 percent, to $137.64 Monday. Morgan Stanley was off $5.04, or 13.5 percent, to $32.19.
The second key event will be the meeting of the US central bank the Federal Reserve's policy makers Tuesday. The are expected to announce a 25 to 50 basis points cut in the short-term interest rate."Given the current situation, they have no choice but to inject liquidity in the system," said Jagannadham Thunuguntla, the equity head of a Delhi-based securities firm Nexgen Capitals Ltd.A break in oil prices has given the central bank some breathing room. Crude slumped $5.47, to settle at $95.71, Monday, its first close below $100.00 since March 4, and its lowest finish since February 15. The drop in oil and other commodities have eased worries of runaway inflation, and investors will be looking out for Consumer Price Index data to be released Tuesday by the US Labour Department.
The third event to watch out for is whether American International Group (AIG) manages to raise needed capital in an effort to avoid what could be a crippling downgrade to its credit ratings. New York's insurance regulator and Governor David Paterson has given approval to AIG to borrow up to $20.0 billion from its subsidiaries in order to sustain operations, but that is less than half of the $40.0 billion to $50.0 billion that it seems to need.
According to TradeTheNews.com, the Fed is unlikely to provide a bridge loan AIG asked for, and the government has asked Goldman and JPMorgan Chase to provide a lending facility to the insurer to the tune of $75.0 billion. Shares of AIG shed more than half their value Monday, losing $7.38, or 60.8 percent, to $4.76.
Finally, investors will be looking out for the ailing US housing market, which has been a huge factor in the collapse of firms like Lehman.The US home builders lobby, the National Association of Home Builders is due to report its monthly housing index Tuesday afternoon.
Thus, investors around the world will have their radars firmly fixed on the US over Tuesday and Wednesday.

21 comments:

Anonymous said...

Thank you for the good writeup. It in fact was a amusement account it.

Look advanced to far added agreeable from you! By the way, how could
we communicate?

Feel free to surf to my web site ... totally free dating website

Anonymous said...

Hi there, You've done a fantastic job. I�ll definitely digg it and personally recommend to my friends. I'm confident
they'll be benefited from this website.

my page - facebook of sex

Anonymous said...

Thank you for the auspicious writeup. It in fact was a amusement account it.
Look advanced to far added agreeable from you!

However, how can we communicate?

Stop by my blog post ... facebook of sex

Anonymous said...

Useful information. Lucky me I discovered your
site by chance, and I am shocked why this accident did not happened in advance!
I bookmarked it.

Visit my page: http://www.cafulcurasc.com.ar/

Anonymous said...

I am curious to find out what blog system you happen
to be using? I'm experiencing some small security issues with my latest blog and I'd like to
find something more safeguarded. Do you have any suggestions?


Feel free to surf to my website - free internet dating site

Anonymous said...

You must participate in a contest for top-of-the-line blogs on the web.
I'll recommend this website!

my web site online personals

Anonymous said...

I�ve read a few just right stuff here. Definitely price bookmarking for revisiting.
I wonder how so much attempt you put to make the sort of magnificent informative web site.


Also visit my web blog :: 100 free date sites online

Anonymous said...

I do like the way you have presented this particular challenge plus it really does offer us a lot of fodder
for thought. Nonetheless, coming from everything that I have experienced,
I really wish as other remarks pack on that people today keep on issue and in no way start upon a tirade of some other news of the day.
Still, thank you for this exceptional point and whilst I do
not concur with this in totality, I regard your point
of view.

Feel free to visit my web blog: adult singles

Anonymous said...

Hey there this is kinda of off topic but I was wanting to know if blogs
use WYSIWYG editors or if you have to manually code with HTML.
I'm starting a blog soon but have no coding knowledge so I wanted to get advice from someone with experience. Any help would be greatly appreciated!

Feel free to surf to my blog post dating over 40

Anonymous said...

Hey would you mind letting me know which hosting company you're utilizing? I've loaded your blog in 3 completely different browsers and I must say this blog loads
a lot faster then most. Can you suggest a good web hosting provider at a honest price?
Kudos, I appreciate it!

Stop by my page: face book of sex

Anonymous said...

Hi there, just became aware of your blog through Google, and found that it's really informative. I am going to watch out for brussels. I�ll appreciate if you continue this in future. A lot of people will be benefited from your writing. Cheers!

My blog local dating sites

Anonymous said...

What i don't realize is actually how you're no longer really much more smartly-favored than you might be now.

You're very intelligent. You know thus considerably in the case of this matter, made me in my view consider it from so many numerous angles. Its like women and men aren't interested until it is one thing to accomplish with Woman
gaga! Your own stuffs outstanding. At all times maintain it up!


Also visit my webpage: http://www.gloriouslinks.com/Entertainment/404-not-found-740

Anonymous said...

Thanks for your recommendations on this blog. Just one thing I want to say is the fact that purchasing electronic devices items on the
Internet is not something new. Actually, in the past ten years alone, the marketplace for online
electronic products has grown considerably. Today, you will discover practically
any kind of electronic tool and devices on the Internet, ranging from cameras along with camcorders to computer spare parts and video gaming consoles.



Here is my webpage :: facebook of sex

Anonymous said...

Just wish to say your article is as astonishing.
The clearness in your post is just great and i can assume you're an expert on this subject. Well with your permission let me to grab your RSS feed to keep up to date with forthcoming post. Thanks a million and please keep up the enjoyable work.

Here is my weblog: prking.co.uk

Anonymous said...

Good website! I really love how it is easy on my eyes and the data are well written.
I'm wondering how I could be notified whenever a new post has been made. I have subscribed to your RSS which must do the trick! Have a great day!

Also visit my blog :: maskaonline.xitti.com

Anonymous said...

Greetings from Los angeles! I'm bored to tears at work so I decided to check out your blog on my iphone during lunch break. I enjoy the information you provide here and can't wait
to take a look when I get home. I'm shocked at how quick your blog loaded on my mobile .. I'm not even using WIFI, just 3G .
. Anyhow, awesome blog!

my site: facebookofsex

Anonymous said...

You can certainly see your skills in the work you write. The world hopes for more passionate writers like you who are not
afraid to say how they believe. Always follow your heart.

Feel free to surf to my weblog - dating for you

Anonymous said...

Please let me know if you're looking for a author for your weblog. You have some really great posts and I feel I would be a good asset. If you ever want to take some of the load off, I'd absolutely love to write some content for your blog in exchange for a link back to mine.
Please send me an email if interested. Cheers!

Feel free to visit my web-site husvagnswiki.com

Anonymous said...

I was suggested this blog by my cousin. I'm not sure whether this post is written by him as nobody else know such detailed about my trouble. You are incredible! Thanks!

my web blog; facebook sex

Anonymous said...

Thanks for the concepts you are revealing on this blog.
Another thing I would like to say is that getting hold of some copies of your
credit report in order to check accuracy of each and every detail would be the first step you have
to conduct in credit improvement. You are looking to cleanse your it profile from harmful details flaws that spoil your credit score.


Feel free to visit my homepage; skype sex

Anonymous said...

I have observed in the world of today, video games are definitely the
latest phenomenon with kids of all ages. Periodically it may be unattainable to drag
your son or daughter away from the video games. If you want the very best of both worlds,
there are lots of educational games for kids. Interesting post.


my blog ... facebook of sex