Best of the Week
Most Popular
1. Gold vs Cash in a Financial Crisis - Richard_Mills
2.Current Stock Market Rally Similarities To 1999 - Chris_Vermeulen
3.America See You On The Dark Side Of The Moon - Part2 - James_Quinn
4.Stock Market Trend Forecast Outlook for 2020 - Nadeem_Walayat
5.Who Said Stock Market Traders and Investor are Emotional Right Now? - Chris_Vermeulen
6.Gold Upswing and Lessons from Gold Tops - P_Radomski_CFA
7.Economic Tribulation is Coming, and Here is Why - Michael_Pento
8.What to Expect in Our Next Recession/Depression? - Raymond_Matison
9.The Fed Celebrates While Americans Drown in Financial Despair - John_Mauldin
10.Hi-yo Silver Away! - Richard_Mills
Last 7 days
Stock Market Deviation from Overall Outlook for 2020 - 22nd Feb 20
The Shanghai Composite and Coronavirus: A Revealing Perspective - 22nd Feb 20
Baltic Dry, Copper, Oil, Tech and China Continue Call for Stock Market Crash Soon - 22nd Feb 20
Gold Warning – This is Not a Buying Opportunity - 22nd Feb 20
Is The Technology Sector FANG Stocks Setting Up For A Market Crash? - 22nd Feb 20
Coronavirus China Infection Statistics Analysis, Probability Forecasts 1/2 Million Infected - 21st Feb 20
Is Crude Oil Firmly on the Upswing Now? - 20th Feb 20
What Can Stop the Stocks Bull – Or At Least, Make It Pause? - 20th Feb 20
Trump and Economic News That Drive Gold, Not Just Coronavirus - 20th Feb 20
Coronavirus COVID19 UK Infection Prevention, Boosting Immune Systems, Birmingham, Sheffield - 20th Feb 20
Silver’s Valuable Insights Into the Upcoming PMs Rally - 20th Feb 20
Coronavirus Coming Storm Act Now to Protect Yourselves and Family to Survive COVID-19 Pandemic - 19th Feb 20
Future Silver Prices Will Shock People, and They’ll Kick Themselves for Not Buying Under $20… - 19th Feb 20
What Alexis Kennedy Learned from Launching Cultist Simulator - 19th Feb 20
Stock Market Potential Short-term top - 18th Feb 20
Coronavirus Fourth Turning - No One Gets Out Of Here Alive! - 18th Feb 20
The Stocks Hit Worst From the Coronavirus - 18th Feb 20
Tips on Pest Control: How to Prevent Pests and Rodents - 18th Feb 20
Buying a Custom Built Gaming PC From Overclockers.co.uk - 1. Delivery and Unboxing - 17th Feb 20
BAIDU (BIDU) Illustrates Why You Should NOT Invest in Chinese Stocks - 17th Feb 20
Financial Markets News Report: February 17, 2020 - February 21, 2020 - 17th Feb 20
NVIDIA (NVDA) GPU King For AI Mega-trend Tech Stocks Investing 2020 - 17th Feb 20
Stock Market Bubble - No One Gets Out Of Here Alive! - 17th Feb 20
British Pound GBP Trend Forecast 2020 - 16th Feb 20
SAMSUNG AI Mega-trend Tech Stocks Investing 2020 - 16th Feb 20
Ignore the Polls, the Markets Have Already Told You Who Wins in 2020 - 16th Feb 20
UK Coronavirus COVID-19 Pandemic WARNING! Sheffield, Manchester, Birmingham Outbreaks Probable - 16th Feb 20
iShares Nasdaq Biotechnology ETF IBB AI Mega-trend Tech Stocks Investing 2020 - 15th Feb 20
Gold Stocks Still Stalled - 15th Feb 20
Is The Technology Stocks Sector Setting Up For A Crash? - 15th Feb 20
UK Calm Before Corona Virus Storm - Infections Forecast into End March 2020 - 15th Feb 20
The Growing Weaponization of Space - 14th Feb 20
Will the 2020s Be Good or Bad for the Gold Market? - 14th Feb 20
Predictive Modeling Suggests Gold Price Will Break Above $1650 Within 15~30 Days - 14th Feb 20
UK Coronavirus COVID-19 Infections and Deaths Trend Forecast 2020 - 14th Feb 20
Coronavirus, Powell and Gold - 14th Feb 20
How the Corona Virus is Affecting Global Stock Markets - 14th Feb 20
British Pound GBP Trend and Elliott Wave Analysis - 13th Feb 20
Owning and Driving a Land Rover Discovery Sport in 2020 - 2 YEAR Review - 13th Feb 20
Shipping Rates Plunge, Commodities and Stocks May Follow - 13th Feb 20
Powell says Fed will aggressively use QE to fight next recession - 13th Feb 20
PALLADIUM - THIS Is What a Run on the Bank for Precious Metals Looks Like… - 13th Feb 20
Bitcoin: "Is it too late to get in?" Get Answers Now - 13th Feb 20
China Coronavirus Infections Soar by 1/3rd to 60,000, Deaths Jump to 1,367 - 13th Feb 20
Crude Oil Price Action – Like a Coiled Spring Already? - 13th Feb 20

Market Oracle FREE Newsletter

Nadeem Walayat Financial Markets Analysiis and Trend Forecasts

Déjà Vu As Banking Stocks Drag Indices Lower

Stock-Markets / Financial Markets 2009 Feb 16, 2009 - 07:11 AM GMT

By: PaddyPowerTrader

Stock-Markets Best Financial Markets Analysis ArticleStocks ended on a sour note Friday and down 5% for last week. One wonders where they might have ended if not for the giant stimulus package and the son of TARP? Markets had been fantasising that the Obama administration's big bang would at last put equities on the road to redemption but we remain no closer and there seems no rabbit left to pull. Financials were again caught in the cross wires as Lloyds share price plummeted on renewed nationalisation fears following revelations of a £10bn loss at basket case HBoS.


Today's Market Moving News

  • All U.S. financial markets are closed today for the President's Day public holiday.
  • The grim economic news continued overnight with the release of the weakest Japanese GDP growth figure since 1974 (with a bigger than expected 3.3% contraction, which gives a scary annualised –12.7%!) A truly catastrophic number which shows the scale and global reach of the crisis.
  • And staying with economic growth or the lack of it. The UK's CBI has cut its GDP forecast for 2009 to –3.3%. ECB council member, Germany's Jurgen Stark, has suggested that both growth and inflation forecasts for the Eurozone would be revised (lower) next month.
  • Hugo “Che” Chavez took a step closer to becoming President (dictator) for life of South America's biggest oil producing country after winning a referendum abolishing fixed term limits for elected officials.
  • Not the kind of ill informed guff one wants to read on a Monday morning but the Times is reporting that Ireland “could default on debt.”
  • Four more US banks with assets of more than $1bn were closed at the tail end of last week. This brings the running total to 13 thus far this year. The number and scale of these closures is putting serious stress on the FDIC (deposit insurance fund) as it shrinks rapidly and will soon need a bailout of it own.
  • The Daily Telegraph's harbinger of doom Ambrose Evans Pritchard writes today that the unfolding debt drama in Russia, Ukraine and the EU states of Eastern Europe has reached an acute danger point. He warns that, if mishandled, the situation could be big enough to shatter the fragile banking systems of Western Europe and precipitate a further down leg in the global crisis.
  • Good to see someone thinks stocks are a buy .

Nothing Meaningful From G7 Meeting
The G7 communique was the usual watered down claptrap crowing on about a “severe” global downturn and the need to refrain from protectionist measures. From a market point of view it was very soft. The calls for the Chinese to revalue the Yuan upwards were reduced and concerns over Yen volatility dropped. Unsurprisingly there was no mention of the British pound's weakness. Overall there is little to dissuade one from the view of general Dollar and Yen strength and Sterling weakness.

Equities

  • UK bank RBS is planning to shed as many as 10-20k jobs as it prepares to announce losses of up to £30bn.
  • The building materials group, CRH, is considering a €1 billion rights issue . CRH's key advantage, vis-à-vis their key competitors Cemex and Lafarge, is that they have a third of the debt. A cash pile now would enable them to get some assets for the long term at knock down prices from forced sellers leaving them well positioned for the upswing.
  • Talks between EBS and IL&P are ongoing with the possibility of the life business being spun off and the government taking some higher quality assets of IL&P's books to reduce their loan-to-deposits ratio and address some of their funding issues.
  • Good news for Fyffes with some positive developments on the EU banana tariffs possibly being lowered. Brokers estimate the change hinted at by the Ecuadorian foreign minister could be worth €20mln+ a year to Fyffes.
  • Drinks firm C&C has announced a rearrangement of the deck chairs with a new marketing director being appointed and the belated introduction of a pear flavoured cider to rival that of Kopparberg.
  • Dana Petroleum has announced the acquisition of Bow Valley Energy (a North Sea oil specialist) with support from Bank of Scotland who have extended them a new three year Revolving Credit Facility of up to $400m.

No Love For Bankers

And Finally… The Daily Bailout Song

Disclosures = None

By The Mole
PaddyPowerTrader.com

The Mole is a man in the know. I don’t trade for a living, but instead work for a well-known Irish institution, heading a desk that regularly trades over €100 million a day. I aim to provide top quality, up-to-date and relevant market news and data, so that traders can make more informed decisions”.

© 2009 Copyright PaddyPowerTrader - All Rights Reserved
Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

PaddyPowerTrader Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules