SubscribeDaily Futures Commentary FINANCIALS 030209
Monday, March 2, 2009
OVERVIEW
Over the week-end the U.S. government gave AIG another $30 billion after the insurance giant posted the largest corporate loss in history. The money is expected to be used to reduce debt. The government also lowered the interest rate on borrowed funds. AIG tried to make it clear that the insurance businesses are sound but a hedge fund unit that is part of the company is mostly responsible for the loss because of risky investments.
Overseas, HSBC, one of Europe’s biggest banks, announced they are basically pulling out of the United States after a poor performance by their U.S. consumer loan division. They also announced the need for $18 billion which they intend to raise through a rights offering. The dividend by the company was also cut as the firm’s annual loss was almost half of its prior year’s profit.
Financials: Treasury Bonds are trading higher as flight-to-quality buying returns.
Equities: The liquidation continues led by the banking sector.
Currencies: More money is flooding into the safety of the U.S. Dollar.
Energies: Global economic contraction means less demand for crude oil. …
Read More …
Loading ...
