Falling confidence in Greece's economic policies and ability to pay its debts have seen Greek shares slump 6%.The decline came after the Fitch credit rating agency cut Greece's rating to a 10-year low. Greek bond prices also fell as a result. Fitch's move underscores the fact that Greece's debt is the most expensive to service in the eurozone. The European Commission urged the Greek government to take "more measures" to reduce its deficit. Greece has the highest debt of the 16-member eurozone - forecast at 125% of gross domestic product next year.
Falling confidence in Greece's economic policies and ability to pay its debts have seen Greek shares slump 6%.
The decline came after the Fitch credit rating agency cut Greece's rating to a 10-year low. Greek bond prices also fell as a result.
Fitch's move underscores the fact that Greece's debt is the most expensive to service in the eurozone.
The European Commission urged the Greek government to take "more measures" to reduce its deficit.
Greece has the highest debt of the 16-member eurozone - forecast at 125% of gross domestic product next year.
Japan has agreed a 7.2 trillion yen ($81bn; £48bn) stimulus plan designed to prevent the country's economy from slipping back into recession.Japan's economy grew for the second straight quarter between July and September, but the return of deflation has sparked fears growth could stall. The strong yen is also holding back Japanese exporters. The stimulus was due to be announced last Friday but was delayed after disagreements over its size. This is the first major economic stimulus announcement by the newly elected Democratic Party of Japan.
Japan has agreed a 7.2 trillion yen ($81bn; £48bn) stimulus plan designed to prevent the country's economy from slipping back into recession.
Japan's economy grew for the second straight quarter between July and September, but the return of deflation has sparked fears growth could stall.
The strong yen is also holding back Japanese exporters.
The stimulus was due to be announced last Friday but was delayed after disagreements over its size.
This is the first major economic stimulus announcement by the newly elected Democratic Party of Japan.
House prices have risen for the fifth month in a row, says the Halifax, one of the UK's biggest mortgage lenders.Its latest survey says prices went up by 1.4% in November, pushing the cost of the average UK home to £167,664. Although that is still 1.6% lower than a year ago, prices are now 4.2% up since the start of the year. The Halifax also predicted that house prices were likely to be flat over the course of 2010 if more homes were put up for sale.
House prices have risen for the fifth month in a row, says the Halifax, one of the UK's biggest mortgage lenders.
Its latest survey says prices went up by 1.4% in November, pushing the cost of the average UK home to £167,664.
Although that is still 1.6% lower than a year ago, prices are now 4.2% up since the start of the year.
The Halifax also predicted that house prices were likely to be flat over the course of 2010 if more homes were put up for sale.
Dubai's stock market has fallen for the second consecutive day on continuing fears about leading companies' ability to repay debts.The main Dubai Financial Market index fell 6.1%, after closing down almost 6% on Monday. Two weeks ago, Dubai World asked for a six-month delay on debt repayments. Credit agencies have since downgraded many leading Dubai companies. On Tuesday, credit agency Moody's downgraded six state-owned companies.
Dubai's stock market has fallen for the second consecutive day on continuing fears about leading companies' ability to repay debts.
The main Dubai Financial Market index fell 6.1%, after closing down almost 6% on Monday.
Two weeks ago, Dubai World asked for a six-month delay on debt repayments. Credit agencies have since downgraded many leading Dubai companies.
On Tuesday, credit agency Moody's downgraded six state-owned companies.
Share prices on Dubai's stock market have fallen to their lowest level in almost a year, a day after the country's investment arm lost a New York luxury hotel in a foreclosure auction. The Dubai Financial Market fell 6.54 per cent in early trading on Wednesday, while the securities exchange in neighbouring Abu Dhabi fell 2.41 per cent. Istithmar World, Dubai's investment company, said on Wednesday that the restructuring of Dubai World, its parent company, was not connected to its loss of the W Hotel in Manhattan in an auction on Tuesday
Share prices on Dubai's stock market have fallen to their lowest level in almost a year, a day after the country's investment arm lost a New York luxury hotel in a foreclosure auction.
The Dubai Financial Market fell 6.54 per cent in early trading on Wednesday, while the securities exchange in neighbouring Abu Dhabi fell 2.41 per cent.
Istithmar World, Dubai's investment company, said on Wednesday that the restructuring of Dubai World, its parent company, was not connected to its loss of the W Hotel in Manhattan in an auction on Tuesday
Five senior executives at American International Group told the bailed-out insurer last week they may quit if their compensation was cut significantly by the U.S. pay czar, the Wall Street Journal reported.The five senior AIG executives indicated on December 1, in written notices, that they were prepared to leave by year-end, the paper reported, citing unnamed sources. Two of them changed their minds over the weekend, the paper added.
Five senior executives at American International Group told the bailed-out insurer last week they may quit if their compensation was cut significantly by the U.S. pay czar, the Wall Street Journal reported.
The five senior AIG executives indicated on December 1, in written notices, that they were prepared to leave by year-end, the paper reported, citing unnamed sources. Two of them changed their minds over the weekend, the paper added.
Bob Diamond, president of Barclays, said any plans for a windfall tax on bank bonuses in the Pre-Budget Report tomorrow would be against the remuneration principles agreed at the G20.
UAL Corp.'s United Airlines has placed a much-awaited order to buy 25 aircraft from European aerospace group EADS and another 25 from US aircraft manufacturer Boeing Co., FRANCE 24 learned on Tuesday. Reporting from the southern French city of Toulouse, where EADS subsidiary, Airbus, is headquartered, FRANCE 24's Chris Bockman said that Airbus would make about $6 billion out of the deal for the 25 A350 long-haul jetliners. The Chicago-based aviation company also placed a matching order with its rival Boeing for its 787 aircraft, according to industry sources.
Reporting from the southern French city of Toulouse, where EADS subsidiary, Airbus, is headquartered, FRANCE 24's Chris Bockman said that Airbus would make about $6 billion out of the deal for the 25 A350 long-haul jetliners. The Chicago-based aviation company also placed a matching order with its rival Boeing for its 787 aircraft, according to industry sources.
Increasingly, leading bankers repeat versions of the argument made recently by E. Gerald Corrigan in his Dolan Lecture at Fairfield University. Corrigan, former President of the New York Fed and a senior executive at Goldman Sachs for more than a decade, makes three main points. 1. "Large Integrated Financial Groups" - at or around their current size - offer unique functions that cannot otherwise be provided. The economy needs these Groups. 2. Breaking up such Groups would be extremely complex and almost certainly very disruptive. 3. An "Enhanced Resolution Authority" can mitigate the problems that are likely to occur in the future, when one or more Group fails. These assertions are all completely wrong. Gerry Corrigan's first claim (p.4), that Large Groups are indispensable, is completely at odds with the data. The current size of our biggest financial firms is a recent phenomenon. In 1998, when Corrigan already worked there, Goldman Sachs was roughly ¼ of its current size and was regarded a top international investment bank. .... Corrigan's second claim, that breaking up banks would be hard to do, is based on assessing a "straw man" proposal - that the government dictate the microstructure of any bank downsizing. But no one serious has put forward such an idea. .... Corrigan's final claim, that an Enhanced Resolution Authority can deal with the manifest problems of Too Big To Fail, is simply wishful thinking. It is a fantasy to think that any national Resolution Authority would make a difference. All banking experts, when pressed, agree that you need to have a cross-border Resolution Authority in order to deal with the failure of a Large International Integrated Financial Group. Show me the G20 process in place or any other international initiative that can achieve this faster than in 20 years. (I made this point recently to leading financial officials; one of the most influential people present said, in effect, "it will never happen".)
1. "Large Integrated Financial Groups" - at or around their current size - offer unique functions that cannot otherwise be provided. The economy needs these Groups. 2. Breaking up such Groups would be extremely complex and almost certainly very disruptive. 3. An "Enhanced Resolution Authority" can mitigate the problems that are likely to occur in the future, when one or more Group fails.
These assertions are all completely wrong.
Gerry Corrigan's first claim (p.4), that Large Groups are indispensable, is completely at odds with the data. The current size of our biggest financial firms is a recent phenomenon. In 1998, when Corrigan already worked there, Goldman Sachs was roughly ¼ of its current size and was regarded a top international investment bank.
....
Corrigan's second claim, that breaking up banks would be hard to do, is based on assessing a "straw man" proposal - that the government dictate the microstructure of any bank downsizing. But no one serious has put forward such an idea.
Corrigan's final claim, that an Enhanced Resolution Authority can deal with the manifest problems of Too Big To Fail, is simply wishful thinking.
It is a fantasy to think that any national Resolution Authority would make a difference. All banking experts, when pressed, agree that you need to have a cross-border Resolution Authority in order to deal with the failure of a Large International Integrated Financial Group. Show me the G20 process in place or any other international initiative that can achieve this faster than in 20 years. (I made this point recently to leading financial officials; one of the most influential people present said, in effect, "it will never happen".)
Is anyone taking this seriously?
The owner of Ralphs Grocery Co. is paying the price for helping to launch Southern California's supermarket price wars. Kroger Co., the largest U.S. grocer, said Tuesday that it would take a $1.05-billion write-down in the value of Ralphs because the division is contending with cautious consumers, rampant unemployment in the chain's core market and the slumping value of the real estate where its stores are located. Kroger, based in Cincinnati, also cut its full-year profit forecast and reported a third-quarter loss of $874.9 million, or $1.35 a share, compared with a profit of $237.7 million, or 36 cents, a year earlier. Sales inched up nearly 1% to $17.7 billion. Kroger shares fell $2.72, or 12%, to close at $20.13 on Tuesday. "The [economic] environment is a new game. I have never seen anything like this, said David Dillon, Kroger's chief executive. Ralphs, which has slashed prices during the year, setting off stiff competition with regional rivals Vons and Albertsons, has seen its profit margins squeezed.
Kroger Co., the largest U.S. grocer, said Tuesday that it would take a $1.05-billion write-down in the value of Ralphs because the division is contending with cautious consumers, rampant unemployment in the chain's core market and the slumping value of the real estate where its stores are located.
Kroger, based in Cincinnati, also cut its full-year profit forecast and reported a third-quarter loss of $874.9 million, or $1.35 a share, compared with a profit of $237.7 million, or 36 cents, a year earlier. Sales inched up nearly 1% to $17.7 billion. Kroger shares fell $2.72, or 12%, to close at $20.13 on Tuesday. "The [economic] environment is a new game. I have never seen anything like this, said David Dillon, Kroger's chief executive.
Ralphs, which has slashed prices during the year, setting off stiff competition with regional rivals Vons and Albertsons, has seen its profit margins squeezed.
WASHINGTON -- Forget too big to fail. In the eyes of federal regulators, many Wall Street firms are too big to punish. During the past three years, some of the nation's largest financial firms have been accused by the government of cheating or misleading clients and ripping off tens of thousands of consumers of their investments. Despite these findings, these financial giants got, sometimes repeatedly, special exemptions from the Securities and Exchange Commission that have saved them from a regulatory death penalty that could have decimated their lucrative mutual fund businesses. Among the more than a dozen firms that have gotten these SEC get-out-of-jail cards since January 2007 are some of Wall Street's biggest, including Bank of America, Citigroup and American International Group. SEC rules permit corporate lawbreakers to apply for what are known as Section 9(c) waivers from one of the agency's harshest penalties -- effectively shuttering the violator's mutual fund operations -- but regulators never rejected any of these firms' applications. While the firms were punished in other ways, they were spared from what some claimed would be "severe and irreparable hardships." In fact, the last time the SEC's staff could recall a waiver being turned down was 1978. The SEC declined to comment in detail on its decisions, however.
Despite these findings, these financial giants got, sometimes repeatedly, special exemptions from the Securities and Exchange Commission that have saved them from a regulatory death penalty that could have decimated their lucrative mutual fund businesses.
Among the more than a dozen firms that have gotten these SEC get-out-of-jail cards since January 2007 are some of Wall Street's biggest, including Bank of America, Citigroup and American International Group.
SEC rules permit corporate lawbreakers to apply for what are known as Section 9(c) waivers from one of the agency's harshest penalties -- effectively shuttering the violator's mutual fund operations -- but regulators never rejected any of these firms' applications. While the firms were punished in other ways, they were spared from what some claimed would be "severe and irreparable hardships." In fact, the last time the SEC's staff could recall a waiver being turned down was 1978. The SEC declined to comment in detail on its decisions, however.
