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November 6, 2008
by Peter Charalambous
The London interbank offered rate (Libor) for three months loans has fallen to a five month low to 2.51 percent from 4.82 in October as a result of credit markets struggling following the biggest fall on record.
The rate that banks charge each other to borrow dollars is still higher than the US Federal Reserve’s target rate, however compared to prior the credit ...
November 4, 2008
by Peter Charalambous
With the effects of the credit crunch still looming large, a survey conducted by the US Federal Reserve yesterday revealed that more US banks have now tightened their lending standards for businesses.
The last survey in July indicated that 60 percent of banks had tightened their lending standards, but this has increased by a further 25 percent in the latest survey.
All respondents of ...
November 3, 2008
by Peter Charalambous
For a second time since August this year, Standard & Poor’s (S&P) has cut Argentina’s debt ratings following increased concern that the financial crisis will affect their commodity exports and result in defaulted payments.
The foreign debt rating has been lowered to B- from B and comparatively it is six grades lower than Lebanon for investment.
Many analysts have described it as a financial disaster ...
by Peter Charalambous
Following the $700 billion bailout announced last month, US Treasury Secretary, Henry Paulson, has announced that the Treasury has new plans to finance purchases as part of a $250 billion program to cash into financial companies in order to increase the credit available to businesses.
Last week, the Treasury agreed to take stakes in nine firms including banking giants Citigroup ...
October 27, 2008
by Peter Charalambous
Following record foreclosure rates in the US in the aftermath of the sub prime mortgage
crisis, home purchases of existing homes increased by 5.5 percent last month.
Due to the high foreclosure rate, prices have declined and this has aided the stabilisation of the market despite the crisis in the financial markets.
Foreclosed homes accounted for 35 and 40 per cent of September’s total ...
October 24, 2008
by Peter Charalambous
Following the 700 billion dollar bailout announced earlier this month, US Treasury Secretary, Henry Paulson, has announced the Treasury’s new plans to finance purchases as part of a $250 billion program to cash into financial companies in order to increase the credit available to businesses.
Last week, the Treasury agreed to take stakes in nine firms including banking giants Citigroup ...
October 21, 2008
by Peter Charalambous
Governor Mark Carney have announced today that the Bank of Canada will be cutting the interest rates for overnight loans between commercial banks to 2.25 percent. However, the cut is smaller than economists had predicted, meaning that it is quite likely that the bank may need to act again.
Since the coordinated move of widespread cuts, the Bank of Canada is the ...
October 20, 2008
by Elaine Frei
European equities markets were higher Monday on higher oil prices, positive earnings reports and on an expected Dutch rescue of ING (EuronextAMS: INGA; NYSE: ING), in which the government will buy non-voting shares of the bank and insurance group and appoint two members to ING’s board of directors.
In London, the FTSE 100 added 5.41 percent to 4,282.67 while ...
October 17, 2008
by Peter Charalambous
The US economy takes another battering after the latest stats reveal that US housebuilder confidence is at an all time low, as a recent report has shown that consumer sentiment is at its lowest ebb for four months through to October.
The National Association of Home Builders/Wells Fargo index fell three points to 14 in October which represents a new ...
October 16, 2008
by Peter Charalambous
Following the recent stability in the cost of living in the US, more good news follows in the form of reduced unemployment figures as initial jobless claims have declined by 16,000 to 461,000 in the last month.
The latest figures indicate the pessimism in the country as the estimates for jobless claims ranged from 445,000 to 500,000, however most economists had predicted a reduction ...
by Peter Charalambous
In the month of September, US consumer prices remained static, even as the cost of living has soared over the past 12 months.
With rising inflation and the fear of the credit crunch, both consumer and business confidence has fallen. However last month was a real milestone as the decrease in the cost of fuel costs, new car prices and airline fares indicated ...
October 12, 2008
by Peter Charalambous
With US stocks down for the 7th straight day and the Dow below 9,000 on Friday, it is clear to say that there is a world financial crisis, and the latest response is that the G7 have planned to meet in Washington for crisis talks to provide united action.
Prime Minister Gordon Brown has called for a world response ...
October 7, 2008
by Peter Charalambous
The US Federal Reserve will take further action today as they plan to provide as much as $900 billion in cash loans in order to break the chain of the credit clog that has threatened the economy.
The action taken will have an affect on financial institutions, which are moving money to lend to each other, as well as individuals and businesses ...
October 1, 2008
by Peter Charalambous
Economists are suggesting that the US is staring at the longest recession in 25 years and that will be despite the decision before congress taking forward the $700 billion rescue plan put forward by Treasury Secretary, Henry Paulson.
The Standard & Poor's 500 index plunged 8.8 percent yesterday, which represents the biggest fall since 1987.
Chief economist at Moody's Investors Service John ...
July 22, 2008
by Peter Charalambous
The Canadian dollar has strengthened for the second consecutive week following the central bank’s announcement that there have been improved trade reports and manufacturing orders.
Also, sales have exceeded forecasts resulting in the dollar advancing against 11 of the 16 most-traded currencies, rising 0.3 percent against its US counterpart since July 11.
Although the loonie was strong against the US dollar, ...
July 18, 2008
by Peter Charalambous
The Bank of Canada has left key interest rates unchanged this week as the country is now set to cut its economic growth outlook as economists had previously predicted.
As well as the fact that there is further difficultly due to the aftershock the economy has suffered following the downturn of the US economy and it is the high dollar that is ...
July 14, 2008
by Peter Charalambous
US consumer confidence is at the lowest level in 28 years as spending has slowed in a period where credit availability and the affects of the federal tax rebates are reducing.
Consumers are still concerned about rising energy and food prices as well as job layoffs and the future of the economy still remains bleak.
The pessimism in the economy ...
June 25, 2008
by Kay Murchie
As property prices and consumer confidence in the US continue to fall, it is expected that the Federal Reserve will keep interest rates at 2% this week.
Consumer confidence in the US is at its lowest level since 1992 due to plummeting home values and rocketing oil prices.
Reports show that the consumers’ view of the economic future has never been ...
June 17, 2008
by Peter Charalambous
Global inflation concerns are mounting and so finance ministers from the Group of Eight nations have made a continued warning that surging food and fuel prices are threatening the global economy, amid the current uncertain economic climate which was debated at Osaka, Japan.
The meeting is set to cover a range of current issues such as the troubled financial markets and global warming.
With ...
June 16, 2008
by Peter Charalambous
According to the foreclosure-monitoring company, RealtyTrac, US foreclosure filings have continued to rise in May, indicating a 48% rise from a year ago. This means that one in every 483 households received a foreclosure filing last month.
That is highest rate since the Irvine, a report back in January 2005, and represents the 29th consecutive month of increased filings.
The ...
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