Global shares tumble on US fears

[malaise]

http://news.bbc.co.uk/2/hi/business/7199552.stm
<snip>
Global stock markets have tumbled, with European indexes heading for their worst day in four years, amid growing fears of a recession in the US.

London's FTSE 100 index fell 3.6% to 5685.2, in Paris the Cac-40 fell 6.7%, and Frankfurt's Dax dropped 5.4%.

Tokyo's Nikkei 225 index slid by 3.9% to its lowest close since October 2005, while India's Sensex shed 7.4%.

Investors have taken little comfort from emergency measures proposed by President George W Bush on Friday.

"It's another horrible day," said Francis Lun of Fulbright Securities in Hong Kong.

"Today it's because of disappointment that the US stimulus is too little, too late and investors feel it won't help the economy recover."

[Ghost Dog]

1. Thanks very much malaise reporting from Jamaica! k&r.

Exactly what we were predicting in the SMW thread on Friday.

[malaise]

2. Give thanks that today is a holiday in the US n/t

[spanone]

3. yes, we're lucky the markets are closed today. the world has little confidence in juniors bailout

[Ghost Dog]

4. Bank of China shares fall sharply on worries of subprime losses

Mon Jan 21, 2:06 AM ET
HONG KONG (AFP) - Shares in Bank of China (BOC) fell sharply Monday on reports it might post lower profits or even a loss when announcing 2007 results in April, due to writedowns on struggling subprime investments.

The bank may announce a significant writedown on its 7.95 billion US dollars of investments in securities linked to US subprime mortgages, the South China Morning Post reported Monday, citing unnamed mainland banking sources.

Senior banking regulators have already warned the mainland leadership that BOC, as well as the Industrial and Commercial Bank of China and China Construction Bank, would have to make provisions for all their subprime-linked assets, the report added.

BOC spokesman Wang Zhaowen declined comment on the report.

Hong Kong-listed shares in BOC fell 4.7 percent in morning trade Monday on the report. At the end of the session, shares were off 0.17 dollars at 3.43.

/... http://news.yahoo.com/s/afp/20080121/bs_afp/chinahongkongbankingcompanyearnings_080121060533;_ylt=AvAubBzim6t7GMbXpQCSmHOmOrgF

[Ghost Dog]

5. Investors lose over $300 bn in six days (India)

DU Thread: http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=102x3149246

[Ghost Dog]

6. FTSE skids 5 percent on recession fears

Mon Jan 21, 2008 1:28pm GMT
LONDON (Reuters) - The top share index dived more than 5 percent on Monday, on track for its biggest daily drop since the September 11 2001 attacks in the United States, as stocks around the globe tumbled on fears a U.S. recession is looming.

By 12:14 p.m. the FTSE 100 skidded 312 points or 5.3 percent to 5,589.7, hitting its lowest since June 2006. The index has shed more than 13 percent since the start of the year as mounting recession fears have pummelled financial markets around the globe.

Equities across Europe suffered severe falls, with the pan-European FTSEurofirst index down more than 5 percent, also on track for its biggest daily percentage loss since 2001.

Last week President George W. Bush called for package of tax cuts and other measures of around $140 billion (72 billion pounds) to $150 billion to shore up the U.S. economy, battered by the subprime mortgage crisis and subsequent credit crunch.

But widespread doubts over the effectiveness of such action sent U.S. stocks reeling on Friday to close out the worst week for the S&P 500 in five years, while Tokyo's Nikkei shed 3.9 percent on Thursday.

/... http://uk.reuters.com/article/topNews/idUKL2124397120080121

[dkf]

7. By the time Dems are in charge it will be too late.

Obama and Clinton need to take up legislation NOW.

And plain old fiscal stimulus won't cut it, witness the disappointment in the Bush stimulus plan.

Damn we need a genius to figure this out. Show your stuff people!

[Ghost Dog]

9. So can anyone tell me, in a nutshell, what strategies

Clinton and Obama and Edwards are offering in the face of this global economic situation?

[brokensymmetry]

15. You optimist.

We don't have that long. It is too late today.
It was too late 6 months ago - and maybe longer.

This is going to get nasty. Very nasty.

[harun]

18. I agree, B*sh will try to keep things afloat long enough

to blame the Democrats but it is way too late.

[Ghost Dog]

8. Shares suffer biggest fall since September 11 2001

The FTSE 100 on Monday suffered its biggest one-day fall since the attacks on the World Trade Centre more than six years ago as fears about the prospects for the global economy took hold.

In a tumultuous session, the index was down as much as 5.7 per cent to 5,571.0 as dealers capitulated following sharp falls on Asian markets overnight.

This is equal to the 5.7 per cent fall on September 11 2001. "The acrid smell of fears hangs over the City. I've never seen fear like this," said David Buik, strategist at Cantor Index.

The FTSE 100 was down 251 points, or 4.2 per cent at 5,568.0 in afternoon trade.

The downturn in equities began in Asia as investors were left underwhelmed by US President George W. Bush's package of measures aimed at stimulating the US economy. Hong Kong's Hang Seng index tumbled 5.5 per cent and the Nikkei 225 in Japan closed down 3.9 per cent.

After sharp early falls, the FTSE 100's slide accelerated as the session wore on amid even more violent slides in Europe.

Martin Slaney, head of derivatives at GFT Global Markets, said "A gloomy concoction of poor economic and corporate news, plus a growing acceptance that the sub-prime fall-out has much further to go, has created the highly distressed conditions for a global sell-off in equities. "

"The latest rumour is that the Bank of China may write off as much as $1 billion in sub-prime related losses have added to the negativity. China is seen as playing a major supporting role this year for Western economies, so any signs that Chinese bank stocks could also be caught up in the sub-prime mess are a serious concern for the markets".

Both the Dax in Germany and the CAC-40 in France were trading more than 7 per cent lower - also the biggest falls since September 2001.

The slide in the CAC-40 took the fall in the index to more than 20 per cent from its June high - the definition of a bear market.

As investors shunned risk, the European iTraxx Crossover index, a closely watched measure of risk appetite, continued its rise into unchartered territory, jumping 33 basis points to 480 basis points.

This means it now costs EU480,000 annually to insure EU10m of mostly junk-rated corporate debt against default over five years.

/... http://news.yahoo.com/s/ft/20080121/bs_ft/fto012120080905091232

edited for emphasis...

[flashl]

10. Help is on the way ...

DU Post - Vampire convention kicks off next week in Davos!

... the world's most powerful executives, financiers and politicians will be searching for answers to the global credit meltdown when they gather for their annual retreat next week in the Swiss Alps.

...

"I think there will be a high level debate on whether the 'originate and distribute' model now prevalent in financial markets is sustainable," said Howard Davies, director of the London School of Economics and Political Science.

Don't worry, they are going to repackage/redefine the meltdown to make it feel better. :sarcasm:

[Ghost Dog]

11. Let's rec this thread

[flashl]

12. Done. n/t

[jimshoes]

13. I hope someone currently running

for the Office of President of the United States lays this economic meltdown squarely at the feet of his his most detestable stupidity, george w bush. With some blame being laid upon the lap of deadeye dick the deplorable cheney and the most dishonorable donald h.(hellspawn) rumsfeld for his part in delivering the US to the jackals that bleed us dry daily.

[malaise]

14. Don't forget to include

his octogenarian Alan Greenspan.

[Ganja Ninja]

16. The fruit of America's conservative revolution.

This is what happens when you let the fox guard the hen house.

[harun]

17. When there is no separation of Corporation and State the system

destroys itself.

[DemReadingDU]

19. afternoon kick

[Elspeth]

20. kick (See London headlines)

Kick

[Ghost Dog]

21. Find fresh analysis from The Economist magazine here:

http://www.economist.com/daily/news/displaystory.cfm?story_id=10555699&top_story=1

--> And find what seems to have become the main thread for comment on this topic (a sort of surrogate SMW?) here: http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=102x3149187#3149766