| Bernanke Lifting Curtains at Fed
Federal Reserve Chairman Ben Bernanke moved Wednesday to break down even further the aura of secrecy that historically has enshrouded the institution that sets interest rates, taking steps to keep Main Street and Wall Street more closely wired to decisions that can make or break lives and businesses. In the job since February 2006, Bernanke said in his announcement that the time has come for the Fed to tell the country four times a year — not twice — what its projections are for the health of the economy. And when it gives that forecast, it will say what it thinks the business environment will be for the following three years — not two. These forecasts — a kind of Fed report card to consumers and businesses — will state the expected pace of economic growth, the anticipated unemployment rate and whatever policymakers can divine about inflation.
(AFX UK Focus) 2007-11-19 17:15 GMT: Euroshares close lower; STOXX 50 Index at three-month low on credit fears UPDATE
(Updating with full story) LONDON (Thomson Financial) - Europe's leading exchanges ended sharply lower, with the Dow Jones STOXX 50 Index falling to its worst level in three months, after Swiss Re stoked credit concerns by booking a larger-than-expected writedown related to its sub-prime exposure. A slide on Wall Street on similar credit fears further undermined sentiment in Europe. The Dow Jones STOXX 50 was down 67.23 points or 1.8 pct to 3,592.79 while the DJ STOXX 600 dropped 8.02 points, or 2.2 pct to 354.70. The decline is "indicative of the mood in New York and over here that we have yet to see the worst of the financial crisis," said David Buik, a partner with BGC Partners. "There are more skeletons in the cupboard and quite frankly it's a question of confidence having gone out of the window." Over in the US, stocks traded sharply lower at the close of European markets after Goldman Sachs downgraded its peers on credit concerns and home improvement retailer Lowe's Cos cut its guidance because of the flagging housing market.
Credit concerns roil stock markets; National Bank writes down $575M
TORONTO - Stock markets were in the red Monday morning as investors digested more bad news connected with the contracting U.S. housing sector and securitized mortgage loans that have gone bad. Toronto's S&P/TSX composite index fell 58.72 points to 13,471.64 after losing over two per cent last week. The junior TSX Venture Exchange was off 2.88 points to 2,934.32. The Canadian dollar was down 0.65 of a cent to 102.04 after Bank of Canada governor David Dodge raised the possibility of an interest rate cut during the weekend. Speaking in South Africa, Dodge said there is less optimism than there was a month ago "that the financial market problems would resolve themselves" and that "global financial turbulence that we are experiencing is now going to be more prolonged ...
Shocker on the Street
Practically everyone assumed Larry Fink was in like Flynn. News reports had circulated saying Merrill Lynch (MER ) had picked the BlackRock (BLK ) chief to succeed Stanley O'Neal, who was forced out on Oct. 30 in the wake of stupendous subprime losses. The announcement was expected any moment, and then it came on Nov. 14—only the job went to John Thain, head of NYSE Euronext (NYX ). Sources say Fink got the word the way most of us did, over the wires. As for Thain, who was expected to take over Citigroup (C ) in the wake of Charles Prince's fall, the former Goldman Sachs (GS ) technocrat apparently preferred to tackle the cleanup at Merrill rather than at sprawling Citi.
By Harry Maurer & Cristina Linblad
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Business Expo to feature more than 70 booths
More than 70 booths will showcase a wide variety of area business services during the 2007 Business Expo Thursday in the Southeastern University Center arena.The Hammond Chamber of Commerce and the Southeast Louisiana Business Center at Southeastern Louisiana University will host the event, which will be sponsored by Wal-Mart Distribution, from noon to 6:30 p.m.“This allows the exhibitors to showcase there business and services," Expo Chairwoman Stacie Richardson said. “It allows for those businesses to network and gain contacts."The Expo will open with a luncheon sponsored by Entergy and featuring Rich Mauti, former wide receiver for the New Orleans Saints. Mauti is the owner of Mauti/Meredith Properties in Mandeville and president of Rich Mauti Enterprises. Lunch seating is sold out, but stadium seating is available for $5 through the Hammond Chamber.
Abundance of holiday thanks, good wishes to pass on to helpers
Dear Readers: There's a framed black-and-white photo on The Fixer's desk of a young Pete Townshend pounding on his guitar as only the famous Who frontman could do. As a rule, The Fixer doesn't accept gifts -- it's enough just to know that we helped. But that photo -- a thank-you gift from reader Rob Hirsh, who knew of The Fixer's special love for that band -- was an exception. That Pete T. photo reminds The Fixer that while we joke that it's easy to fight when it's other people's money, we're grateful to have been able to make a difference in some readers' lives. For Rob, we got the proper marker for his father's grave. For another reader, it was a clean credit report … or the end to a used car nightmare … or heat for a home in winter. While this job can be exhausting, it's also exhilarating.
These 6 fees can be swatted away
Doesn't it feel like every time you make a transaction - rent a car, use a credit card, invest in a mutual fund - some fee you didn't expect and don't understand claims more of your money? It's hard not to feel cheated. What are those fees for, anyway? Are they justified? And most important, is there a way to avoid them? .
Sub-prime saga hits Japan's banks
THREE leading Japanese banks have become the latest victims of the US sub-prime woes, which are proving more trouble to the country's financial sector than initially expected. Mitsubishi UFJ Financial Group (MUFG) is expected to take a writedown on its sub-prime exposure of up to six times its initial forecast of Y5 billion ($47 million). Japan's largest banking group is likely to be forced to write down its sub-prime exposure by Y20-30 billion as of the end of September. "There is a strong possibility (MUFG's sub-prime write-down) will increase," an MUFG representative said. Sumitomo Trust, a large trust bank, revised its net profits forecast down by 31 per cent as a result of additional provisions against its exposure to non-banks and losses related to the sub-prime mortgage sector.
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