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SPECIAL FOCUS - MARKET CRISIS
by Fran on Mon Jan 21st, 2008 at 11:13:22 PM EST
With autofran I can not position this section further up - so could you please uprate it, so that it moves up. thanks!
by Fran on Mon Jan 21st, 2008 at 11:14:15 PM EST
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Crash! Biggest fall in shares since September 11 - Independent Online Edition > Business News

t was the day that the fear factor took over. From Asia to South America, share prices tumbled yesterday as the world's investors gambled that a US recession was now inevitable. In London, the City endured its darkest day since the nadir of 9/11. What Alan Greenspan once called the "irrational exuberance" of traders gambling on rising asset values has gone. In its place, a deep-rooted pessimism has taken hold.

In a single session, a massive £84bn was wiped off the value of Britain's biggest companies, as the FTSE 100 index plummeted by 5.5 per cent, closing 323.5 points lower at 5578.2. Last week the index dipped beneath the 6,000 mark for the first time since the credit crunch began in August. It was the eighth consecutive day of losses. Since Christmas Eve, the FTSE has dropped by almost 1,000 points and last night analysts were predicting further falls.

While President George Bush has authorised an economic rescue package to address the US sub-prime crisis, market experts believe the plan has come too late. And no one believes the world's other major economies will remain unscathed as America plunges into an economic downturn. For the world's biggest companies, recession in an export market as vital as the US can only spell trouble.

by Fran on Mon Jan 21st, 2008 at 11:15:34 PM EST
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Pretty clear now that a US recession cannot be just shrugged off by China or the rest of the world.

Looks pretty ugly our there.

by HiD on Tue Jan 22nd, 2008 at 12:40:41 AM EST
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If you owe China a billion dollars, it's your problem.  If you owe China a brazillion dollars, it's China's problem.

We all bleed the same color.
by budr on Tue Jan 22nd, 2008 at 10:41:28 AM EST
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there was a speical programme on Radio4 this morning. It was strange how the analysis seemed pretty accurate on what had gone wrong and why. However, it was equally disconcerting to hear City brokers and analysts speaking confidently about how the Far East will bail them all out and how there are plenty of other markets gagging for investiment and "don't worry, the markets won't tolerate strict regulation so we'll all be back on the gracy train tomorrow".

keep to the Fen Causeway
by Helen (lareinagal at yahoo dot co dot uk) on Tue Jan 22nd, 2008 at 11:46:42 AM EST
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Let's not forget that when someone says "the markets will like this or hate that", what it expresses is the will of the wealthy. One dollar, one vote. Welcome back to censitary voting.

Un roi sans divertissement est un homme plein de misŤres
by linca (antonin POINT lucas AROBASE gmail.com) on Tue Jan 22nd, 2008 at 12:08:08 PM EST
[ Parent ]
Asian markets continue plunge - CNN.com

HONG KONG, China (CNN) -- Japan's Nikkei index plunged below 13,000 for the first time in more than two years Tuesday as global markets tumbled on fears that a U.S. economic slowdown will lead to a global recession.

Tokyo investors are worried about how a possible U.S. recession could hurt exporters' profits.

After dropping more than 3 percent on Monday, the Nikkei fell nearly 5 percent on opening Tuesday. Across the Korea Strait in South Korea, Seoul's KRX 100 index was down about 4 percent.

Hong Kong's Hang Seng index, which fell 5.5 percent on Monday -- its largest percentage drop since the September 2001 terrorist attacks on the United States -- fell another 5 percent in opening trading on Tuesday.

Shares in India's Sensex fell nearly 11 percent -- a four-month low -- on Monday.

The Australian Securities Exchange was down nearly 5 percent, and the Singapore stock exchange was down about 3.7 percent in early trading.

Europe's main three indices, the FT-100 in London, the CAC 40 in Paris and the DAX in Frankfurt fell between 5 and 7 percent on Monda

by Fran on Mon Jan 21st, 2008 at 11:16:12 PM EST
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Tokyo just closed at -752.89 or -5.7%.

I am beginning to enjoy watching clever American and Brit bankers panic. Even talks are the same; e.g., "soft landing v. hard landing" is exactly what we tirelessly debated 15 years ago.

When you feel that the market hit the bottom and can't go any further down, it will plunge again, and again and....

I will become a patissier, God willing.

by tuasfait on Tue Jan 22nd, 2008 at 01:32:17 AM EST
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Hong Kong is down 9 % now.

Peak oil is not an energy crisis. It is a liquid fuel crisis.
by Starvid on Tue Jan 22nd, 2008 at 01:40:08 AM EST
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I heard two different idiots on French public radio this morning suggest it was a good time to buy "to the sound of cannon".
by afew (afew(a in a circle)eurotrib_dot_com) on Tue Jan 22nd, 2008 at 02:10:25 AM EST
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or when blood splashes over the walls?
by Xavier in Paris on Tue Jan 22nd, 2008 at 02:38:47 AM EST
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I thought that noise was the thud of brokers impacting upon pavement.

The fact is that what we're experiencing right now is a top-down disaster. -Paul Krugman
by dvx (dvx.clt št gmail dotcom) on Tue Jan 22nd, 2008 at 04:10:20 AM EST
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Humor is getting a bit grim around here but I love it!

They tried to assimilate me. They failed.
by THE Twank (yatta blah blah @ blah.com) on Tue Jan 22nd, 2008 at 01:51:11 PM EST
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Ah-ha, speculators have black monday.
by FarEasterner on Tue Jan 22nd, 2008 at 08:01:14 AM EST
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EU Officials Call for Calm as Stock Markets Plunge | Business | Deutsche Welle | 21.01.2008
Top European finance officials stressed on Monday, Jan. 21, that their economies remained solid as global stock markets plunged on concerns about a risk of recession in the United States.

"The excess of volatility of the markets is not good news," EU Economic and Monetary Affairs Commissioner Joaquin Almunia said as he arrived for a meeting of euro zone finance ministers due to focus on financial sector stability.

 

"I hope they will become more quiet because at least in Europe the fundamentals of our economies are sound," Almunia added. "It seems that the markets are considering the possibility of a more pronounced slowdown, even a recession in the US."

 

Global stock markets skidded deep into the red as US President George W. Bush's tax plans to revive the world's largest economy left investors disappointed.


by Fran on Mon Jan 21st, 2008 at 11:18:53 PM EST
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World markets plunge on US recession fears - Times Online

More than £77 billion was wiped off the value of Britain's stock market yesterday in its biggest one-day percentage loss since September 11, 2001. Shares across the world plunged over fears that the threatened US recession will undermine the global economy.

London's leading shares tumbled by 5.5 per cent in brutal market conditions, with the FTSE 100 index losing more than 323 points, its steepest points fall on record, to end the day at 5,578.2.

George Soros, the billionaire investor who prompted Britain's withdrawal from the European exchange-rate mechanism on Black Wednesday in 1992, said the situation was "much more serious than any financial crisis since the end of the war". Investors were "drowning in a sea of red," said Henk Potts, an equity strategist at Barclays Stockbrokers.

The losses in London and across Europe came as global markets remained fearful that President Bush's plans for tax cuts to stave off a US recession would not give a big enough boost to growth. Warnings from two leading US banks that the losses from America's sub-prime home loans crisis were spreading to China triggered a sell-off of shares in Asia, which quickly rippled around the world.

[Murdoch Alert]
by Fran on Tue Jan 22nd, 2008 at 12:06:33 AM EST
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Seen in the figaro in France, from french COFACE chairman (state based company specialised in export risk insurance)

«Pas de récession aux États-Unis cette année»

No recession in US this year

Aujourd'hui, nous constatons une augmentation lente des défauts de paiements, ce qui devrait, selon nous, amputer la croissance mondiale de 0,3 à 0,4 point de base. Nous ne croyons pas au scénario d'un recul du produit intérieur brut (PIB) pendant deux trimestres consécutifs, qui constitue la règle pour qualifier une récession.

Today, we can see a slow increase in US companies failure to pay debts, which could lead to a decrease around 0,3 to 0,4 GNP points. We do not believe to the two quarters long GNP decrease, which is how is qualified a recession.

I beg your pardon for the translation, which is a bit awkward, but I'm just posting this before going to a meeting, and it ma have been a bit quick.

by Xavier in Paris on Tue Jan 22nd, 2008 at 02:48:16 AM EST
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Grr, I'm going to be asleep for the NYSE's bloodbath this morning.

you are the media you consume.

by MillMan (millguy at gmail) on Tue Jan 22nd, 2008 at 03:12:19 AM EST
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