European stock markets plummeted further on Tuesday following a sharp rise in Chinese inflation, adding to woes over debt contagion across the eurozone and fears of another US recession. Market volatility reached its peak when Britain’s FTSE 100 index, which traded 20 percent below its February peak of 6091 points, plunged officially into bear territory…
As European markets opened on Monday yields on Spanish and Italian bonds saw a sharp fall to 83 and 79 basis points respectively following an intervention by the European Central Bank. The ECB backed up its promise to expand its purchases of sovereign debt to support Madrid and Rome by entering into European bond markets…
President Obama has announced that senior Republican and Democrat party members have agreed a proposal to limit US debt by $2.4bn in order to avoid deault or downgrading from the nation’s triple A rating. Making the announcement on Sunday, Obama said the agreement will cut spending by about $1trn over the next decade. Votes in…
A pledged asset mortgage is nothing more than a non-purpose securities-backed loan or credit line used to facilitate a real estate transaction. The securities asset can be used as the collateral alone, or in combination with the real property. When used in combination, we call it “pledged asset combo” or “asset integrated” financing.There are several…
Swiss banking group Credit Suisse on Thursday announced a 2Q11 net earnings drop of 52 percent year-on-year to SFr768m amid weak trading activity and currency exchange effects of the Swiss franc. The group’s wealth management division reported a pre-tax profit of SFr843m, down four per cent from 2Q10 due to “challenging” market conditions, a statement…
Interestingly few Financial Planners have a Real Estate License and even fewer Stock Brokers possess one so why would Charles Schwab’s minions recommend that a client buy a vineyard (real estate) when neither its Brokers nor Financial Planners have a real estate license to represent real estate legally and earn a commission?And why did Charles…
Swiss bank UBS said on Tuesday it plans major job cuts to reduce costs of up to $2.5bn over the next two to three years. The announcement came as it reported a 49 percent 2Q11 decrease in net profit to CHF1.01bn from CHF2bn during the same period in 2010. Group revenues were down 14 percent…
Moody’s Investors Service on Monday cut Greece’s sovereign debt by three notches to Ca from Caa1, warning the second bailout of Greece is likely to result in a default and weaken the credit ratings of the stronger European nations. The rating agency warned in a statement that it is inevitable that Greece will be deemed…
European heads of state at the emergency summit in Brussels agreed late on Thursday a new €109bn bailout package for Greece. The deal includes a reduced interest rate of 3.5 percent and a time extension to between 15 and 30 years from the previous 7.5 years. “The new programme is designed, notably through lower interest…
The president of the European Commission, José Manuel Durão Barroso, warned ahead of Thursday’s Euro area summit that “nobody should be under any illusion because the situation is very serious.” Barroso urged European leaders to “show the ethics of European responsibility.” In a statement he outlined the key issues to be dealt with at the…
