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IDS World Markets Fri 2nd November 07


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t?s=%5EAORD

 

 

That's one helluva bad tick on the USD chart! :lol:

 

Yesterday a record high and today it's SQUISH. All Ords -1.8% with all sectors red. Materials is down the most, -2.9% followed by IT, -2.7%. Utilities is down the least, -0.2%.

 

Big miners being dumped but the juniors aren't showing much damage at all. BHP -3.3%, RIO -3.9% and in the golds, Newcrest -2.3%, Lihir -3.9% and Newmont -0.6%.

 

Oils down but not looking too bearish: Woodside -0.9%, Santos -3.2% and Caltex -3.2%.

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The Next Worry: Bond Insurers

 

An exotic form of bond insurance could be the next hidden hazard to blow up in the global credit minefield. An obscure company called ACA Capital might spark the explosion.

 

Now the crisis is spreading from Wall Street?which has taken $35 billion in subprime-related write-downs and lost more than $220 billion in stock value?to a less well known corner of the financial world, that of the bond insurers. These firms sell insurance to banks and other major investors for bonds backed by mortgages and the complicated investments that hold the bonds, known as collateralized debt obligations (CDOs). The policies are designed to protect investors in case the securities default. As CDOs grew into a trillion-dollar business, bond policies (called credit default swaps) became a lucrative source of revenue for companies such as American International Group (AIG), MBIA (MBI), and Ambac Financial Group (ABK).

 

A New York company with less than $500 million in annual revenue, ACA has just $326 million in BASE capital. The company claims it has $1 billion in capital it could use for potential payouts if the CDOs it insures go bad. Yet it has sold coverage worth nearly $16 billion, with most policies written for CDOs created in the past couple of years. Those are especially problematic vintages because lending standards grew so lax in 2006 and 2007.

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w?s=%5EAORD

 

 

All Ords went thunk today, closing -1.9%. Interestingly, in my little group of penny dreadfuls one closed up and the others flat so I'm beginning to think the funds are day trading with all the recent volatility in the bluechips. Losses were heavy in the sectors: Materials -3.3%, Property Trusts -2.3% and Healthcare -2.2%. There was one green sector, Telecomms +1.6% (thanks to the heavily weighted Telstra).

 

BHP and RIO took a right beating, -4.1% and -3.5% respectively. Golds not quite so badly off, Newmont -0.4%, Newcrest -2.4% and Lihir -3%.

 

Oils down to varying degrees: Woodside -0.8%, Santos -4.1% and Caltex flat.

 

Asia red across the board: Taiwan -3.3%, Honkers -2.7% and Nikkers -1.8%.

 

 

Over to UK/Europe:

 

t?s=%5EFTSE

 

t?s=^GDAXI

 

t?s=^FCHI

 

http://finance.yahoo.com/intlindices?e=europe

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Yaryman,

 

In response to your MTM post #97 last evening...

 

IMHO, as long as Bush appointees are heading the key agencies, odds are such SEC inquiries will be suppressed and stonewalled.

 

That said, just think.... what a delicious opportunity for a shrewd Democratic political contender to seize upon the issue of Republican insider trading/corruption/coverup issues?

 

Such could develop some very long legs should a Dem politico effectively and tenaciously exploit this golden (pun intended) opportunity.

 

Joe6Pack bristles at the deluge of news items in the media touting the mind-boggling riches enjoyed by Wall Street firms and their top management.

 

In addition, there certainly must exist envy and resentment to Goldman's dominance and singular success among it's stumbling competition on The Street...

 

I wonder if more than a few bankers (in the other investment houses) wouldn't take much quiet pleasure in the spectacle of the exposure and excoriation of Goldman malfeasants (if indicted and convicted) by a vigorous and thorough SEC investigation. :ph34r:

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Barclays Falls on Speculation It Asked BOE for Funds

 

Nov. 2 (Bloomberg) -- Barclays Plc fell the most in almost three months in London trading on speculation that it approached the Bank of England for emergency funding.

 

The shares fell as much as 8.7 percent before trading down 6 percent at 537.5 pence at 10:45 a.m. Barclays spokesman Alistair Smith in London and a spokesman for the central bank declined to comment. The Bank of England said in its daily report on money-market operations that it made no emergency loans to banks at its penalty rate yesterday.

 

 

barc.l

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U.K. Wage Growth Slows to 13-Month Low

 

Nov. 2 (Bloomberg) -- U.K. wage negotiators agreed on the smallest salary increases since September 2006 in the quarter through October as employers gave minimum pay raises to their lowest-earning workers, Incomes Data Services said.

 

The median pay settlement fell to 3.2 percent from 3.4 percent in the three months through September, the researcher said in an e-mailed statement today. The reading is based on 65 settlements covering about 1.5 million workers. About three- quarters of agreements in ``lower-paying'' industries, such as retail and non-profit, were at or below 3 percent.

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Somehow, even though it was written by 7:00PM the WSE Pro market update never got posted last night. It's up there now.

 

But, more importantly, apparently nobody noticed! I didn't get a single email about it.

 

Bearish.

 

 

:lol: :lol: :lol:

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