“Citigroup Inc. (C), the lender whose credit rating was cut by Moody’s Investors Service to the lowest since its 1998 creation, led Wall Street banks in dismissing downgrades and urged investors to seek alternative analyses.
Moody’s two-grade cut of Citigroup’s ratings was unwarranted, arbitrary and failed to recognize the lender’s financial strength, the New York-based bank said in a statement. Investors shouldn’t rely on “opaque” credit ratings, it said.”
Comments »“The Australian and New Zealand dollars climbed as U.S. reports next week may show slowing new home sales and weakening confidence, boosting speculation the Federal Reserve will add measures to support the economy.
The so-called Aussie strengthened versus most of its 16 major peers this week after Fed Chairman Ben S. Bernanke said he may consider a third round of asset purchases, or quantitative easing, after a two-day central bank meeting this week. Gains in both South Pacific currencies were tempered as Asian stocks extended a global equity rout and after Moody’s Investors Service lowered the ratings for 15 banks, including Credit Suisse Group AG and Morgan Stanley.
“There are some prospects the Fed will embark on QE3 somewhere in the later part of the year,” said Lee Wai Tuck, a currency strategist at Forecast Pte in Singapore. “There will still be interest to buy the Aussie and the kiwi on dips, but they’re still a sell on rallies.”
Comments »“European (SXXP) stocks fell for a second day as German business confidence declined to its lowest level in more than two years. U.S. index futures advanced, while Asian shares dropped.
Volkswagen AG (VOW) slid 2.2 percent, Bayerische Motoren Werke AG (BMW) slipped 1.6 percent and Porsche Automobil Holding SE (PAH3) lost 2.2 percent as Handelsblatt newspaper reported rebates on new cars rose in June. Michael Page International Plc, Solvay SA and Royal Vopak (VPK) NV dropped after analysts downgraded the stocks. Bankia SA led gains among Spanish lenders.”
Comments »“Asian stocks fell, with the regional benchmark index headed for a one-week low, as raw-material suppliers dropped after commodities entered a bear market and reports on U.S. home sales and manufacturing missed estimates.
BHP Billiton Ltd. (BHP), the world’s biggest mining company, slipped 2.1 percent in Sydney. Samsung Electronics Co., the largest mobile-phone maker by sales, fell 3.7 percent in Seoul. Mitsubishi UFJ Financial Group Inc., Japan’s No. 1 lender, lost 1.1 percent in Tokyo after 15 global banks were downgraded by Moody’s Investors Service.
The MSCI Asia Pacific Index (MXAP) fell 1.2 percent to 114.18 as of 7:21 p.m. in Tokyo, heading for its lowest close since June 15. About three shares declined for each that rose in the gauge, which is erasing this week’s advance. More than $5 trillion has been wiped from global equities since a March peak amid slowing economic growth in the U.S. and China, and a spreadingEuropean debt crisis that pushed Spain’s borrowing costs to a record.”
Comments »Morgan Stanley issues statement on Moody’s two-notch downgrade, ‘the ratings still do not fully reflect the key strategic actions we have taken’ (13.96 -0.24)
Co issued the following statement in reaction the Moody’s two-notch downgrade:
“While Moody’s revised ratings are better than its initial guidance of up to three notches, we believe the ratings still do not fully reflect the key strategic actions we have taken in recent years. However, their acknowledgment of our long-term partnership with MUFG as well as our industry-leading capital and liquidity highlight some of the transformative steps we have taken. With our de-risked balance sheet, stable sources of funding, diverse business mix and strong leadership team, we are well positioned to deliver for clients and shareholders.”
Comments »http://www.youtube.com/watch?v=Dlc9pPeS2Q0
12,572.44-251.95(-1.96%)
1,325.46-30.23(-2.23%)
2,859.09-71.36(-2.44%)
Comments »(Reuters) – Greece’s new government promised on Thursday to renegotiate the terms of the country’s bailout without endangering its future in the euro, responding to intense pressure to ease mounting social tensions but also risking a showdown with European powers.
The three-party coalition called for changes to the deal that is helping Greece avoid bankruptcy after the announcement of an 18-member cabinet dominated by the conservative New Democracy party of Prime Minister Antonis Samaras.
READ THE REST HERE AT REUTERS.COM
Comments »U.S. Supreme Court rules against SEIU Local 1000 in fee case
The U.S. Supreme Court has ruled that SEIU Local 1000 didn’t appropriately notify members and fair-share payers when it temporarily raised fees in 2005 and 2006.
The 7-2 decision released by the high court this morning in Knox v. SEIU Local 1000 means that unions must give nonmembers an immediate chance to opt out of unexpected fee increases or special assessments required of workers in closed-shop workplaces, such at California’s state government.
The court said that Dianne Knox and other nonmembers represented by Local 1000 didn’t receive the legally required notice in advance of a $12 million assessment the 93,000-state employee union charged them to raise money for the union’s political fund.
READ THE REST HERE AT THE SACRAMENTO BEE
Comments »(Reuters) – The S&P 500 index fell more than 2 percent late on Thursday as data raised worries about global growth and a bearish note on the markets from Goldman Sachs added to the weak tone.
READ THE REST HERE AT REUTERS.COM
chessNwine commentary: Consider this an open forum. Do you think Goldman is trying to trap retail traders? Chime in below.
Comments »via BreakingNews.com
via CNBC.com
Moody’s could downgrade the debt ratings of as many as 15 global investment banks after the closing bell today, a move that would cost the banks billions of dollars in extra collateral.
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In February, Moody’s announced it would review the ratings of 17 global investment banks and has already downgradedMacquarie and Nomura. In the U.S., the companies that are most likely to be affected by today’s action: Bank of America [BAC 7.845 
-0.295 (-3.62%) 
], Citigroup [C 28.01 -0.85 (-2.95%) ], Goldman Sachs [GS 94.31 -2.24 (-2.32%) ], JPMorgan[JPM 35.68 -0.77 (-2.11%) ] and Morgan Stanley [MS 13.9969 -0.2031 (-1.43%) ]. Royal Bank of Canada and nine European banks, includingDeutsche Bank [DB 35.70 -1.06 (-2.88%) ], BNP Paribas and Credit Suisse[CS 18.62 -0.69 (-3.57%) ] are also on the list.
The current credit actions are part of a comprehensive review of the overall global banking system by Moody’s. In the middle of last month Moody’s downgraded Italian, Spanish, German and Austrian bank credit ratings. The U.S. banks with global capital markets capabilities have had an open dialogue with the ratings company, in an effort to soften the severity of the downgrades.
Comments »(Reuters) – Spain’s medium-term borrowing costs spiraled to a euro-era record on Thursday and independent auditors said Spanish banks may need up to 62 billion euros ($78 billion) in extra capital, to be filled mostly by a euro zone bailout.
Euro zone finance ministers met in Luxembourg to discuss how to channel up to 100 billion euros ($126 billion) in rescue aid to Spanish lenders weighed down by bad debts from a burst property bubble.
Many in the markets see the package as a mere prelude to a full program for the Spanish state, which Madrid vehemently denies it will need.
“We have already started working on the design of the aid with the Commission, the European Central Bank and the International Monetary Fund,” Spanish Economy Minister Luis de Guindos told reporters as he arrived for the talks. “We will present the request in the next few days.”
READ THE REST HERE AT REUTERS.COM
Comments »Leading Indicators: Prior 0.1%, Market Expects 0, Actual 0.3%
Existing Home Sales: Prior 4.62 Million, Market Expects 4.56 Million, Actual 4.55 milllion
Comments »Leading up to and after the FOMC meeting gold and old got hit. The downtrend continues today. Gold is below $1600 and WTI is about to break $80
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