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Overnight Market News – October 13, 2009

admin — Tue, 13 Oct 2009 12:11:21 +0000

American International Group (AIG) Inc Agrees to Sell Taiwan Life Insurance Unit to Investor Group Led by Primus Financial Holdings Ltd for USD 2.15B
Bank of America Corp to Waive Attorney-Client Privilege and Turn Over Merill Lynch & Co Legal Advice Documentation to New York Attorney General
Vanda Pharmaceuticals Inc to Partner with Novartis AG to Develop and Market its Schizophrenia Drug in a Deal Worth up to USD 465mm
Germany’s Investor Confidence Index Unexpectedly Falls to 56 Points in October from 57.5 Points in September, First Decline in Three Months
Royal Bank of Scotland Group PLC Says Seventy Employees or About One-Third of its Staff at the Singapore Office of its Private Bank Have Stepped Down
Crude Oil Stands at USD 73.27 per Barrel
Ethanol Stands at USD 1.96 per Gallon
Natural Gas Stands at USD 4.88 per British Thermal Unit (Btu)
Gold Stands at USD 1,056.70 per Troy Ounce
Dow Jones Industrial Average Rises 20.86 Points (0.21%)
London FTSE Index Falls 15.98 Points (-0.31%)
Japan Nikkei Index Rises 60.17 Points (0.60%)
Hong Kong Hang Seng Index Rises 168.01 Points (0.79%)
Brazil Bovespa Index Rises 311.14 Points (0.49%)

More Ratings Cuts For AIG

admin — Sat, 12 Sep 2009 16:56:35 +0000

American International Group (AIG) Inc. has had its ratings cut left, right and center after its recent rally. AIG, which recently closed above US$50 for the first time after plunging to a low of US$7 in March 2009 (from over US$400 back in September, 2008), was slammed with back-to-back downgrades this week.

Yesterday, Wells Fargo & Co. cut AIG’s ratings to “underperform” from “perform”, saying it has “virtually no book value” and the stock price is overvalued. Earlier this week, Credit Suisse acted similarly, downgrading the insurer to “underperform” from “perform”.

American International Group Seems Back On Track

admin — Sat, 08 Aug 2009 19:31:51 +0000

After surviving a tough few years, American International Group (AIG) seems to be back on the right track. The U.S. insurer reported second quarter net income of US$1.82B or US$2.30 per share, its first profit following six back-to-back quarterly losses.

The results are a stark improvement from the net loss of US$5.36B or an adjusted US$41.13 per share reported a year ago. Adjusted earnings came in at US$2.57 per share, trumping analysts’ estimates by US$1.50! AIG shares surged 66% in the week through Thursday on hopes of a return to profitability.

Overnight Market News – July 9, 2009

admin — Thu, 09 Jul 2009 12:26:02 +0000

Bank of England Holds Benchmark Interest Rate at 0.5% for Fourth Consecutive Month
American International Group Inc (AIG) Revives Talks with Rival MetLife Inc Over Sale of American Life Insurance Co (Alico)
China’s Passenger Car Vehicle Sales Jump 48% to 873k Units in June from May on More Government Stimulus Spending, Biggest Increase Since February 2006
Costco Wholesale Corp Reports 6% Decline in Same-Store Sales Open at Least a Year in June from May, in Line with Market Expectations
Australia’s Unemployment Rate Hits Six Year HI of 5.8% in June Up from 5.7% in May, Beating Analysts’ Forecast of 5.9%
Crude Oil Stands at USD 61.26 per Barrel
Ethanol Stands at USD 1.58 per Gallon
Natural Gas Stands at USD 3.43 per British Thermal Unit (Btu)
Gold Stands at USD 915.20 per Troy Ounce
Dow Jones Industrial Average Rises 14.81 Points (0.18%)
London FTSE Index Rises 29.63 Points (0.72%)
Japan Nikkei Index Falls 129.69 Points (-1.38%)
Hong Kong Hang Seng Index Rises 69.52 Points (0.39%)
Brazil Bovespa Index Falls 279.15 Points (-0.56%)

Overnight Market News – June 25, 2009

admin — Thu, 25 Jun 2009 13:04:47 +0000

AIG Announces Divestment of 2 Life Insurance Units to Reduce Debt to Federal Reserve Bank of New York by USD 25B, Units Positioned for IPOs
IMF Sees Ireland’s Economy Contracting 13.5% Between 2008 and 2010, Irish Banks Likely to Face Losses of Up to EUR 35B Through 2010
BP Plc Appoints Ericsson CEO Carl-Henric Svanberg as New Chairman, to Take Office in 2010
Nike Inc Beats Estimates with Fiscal Fourth Quarter Profit of USD 0.99 per share (Excluding One-Off Items) vs Earnings per Share of USD 0.98 (yoy)
Swedish Clothing Retailer Hennes & Mauritz AB (H&M) Reports 6.4% Increase in Second Quarter Profit to USD 534mm on 23% Jump in Sales
Crude Oil Stands at USD 68.67 per Barrel
Ethanol Stands at USD 1.77 per Gallon
Natural Gas Stands at USD 3.76 per British Thermal Unit (Btu)
Gold Stands at USD 934.10 per Troy Ounce
Dow Jones Industrial Average Falls 23.05 Points (-0.28%)
London FTSE Index Falls 20.24 Points (-0.47%)
Japan Nikkei Index Rises 205.76 Points (2.15%)
Hong Kong Hang Seng Index Rises 382.88 Points (2.14%)
Brazil Bovespa Index Falls 141.46 Points (-0.28%)

Overnight Market News – June 18, 2009

admin — Thu, 18 Jun 2009 11:50:20 +0000

World Bank Upgrades China’s 2009 Growth Forecast to 7.2%, Says Stimulus Sufficient
AIG Chooses Deutsche Bank, Morgan Stanley as Joint Coordinators for USD 4B IPO of Asian Life Insurance Unit
British Chamber of Commerce Sees 3.8% Contraction in UK Economy This Year, Separate Report Shows Retail Sales Fell 0.6% in May Over April
Swiss National Bank Leaves Key Interest Rate Unchanged at 0.25%, Will Continue “Firm Action” to Prevent Appreciation of Franc
China Eastern Airlines to Purchase 20 Airbus A320s For USD 1.45B, Still in Talks to Merge with Rival Shanghai Airlines
Recreation-Vehicle Maker Winnebago Industries Inc Reports USD 8.6mm Third Quarter Loss on Weak Sales
Crude Oil Stands at USD 71.03 per Barrel
Ethanol Stands at USD 1.81 per Gallon
Natural Gas Stands at USD 4.25 per British Thermal Unit (Btu)
Gold Stands at USD 935.40 per Troy Ounce
Dow Jones Industrial Average Falls 7.49 Points (-0.09%)
London FTSE Index Falls 2.10 Points (-0.05%)
Japan Nikkei Index Falls 137.13 Points (-1.39%)
Hong Kong Hang Seng Index Falls 307.94 Points (-1.70%)
Brazil Bovespa Index Falls 159.94 Points (-0.31%)

Financial News Summary – May 18, 2009

admin — Tue, 19 May 2009 06:35:47 +0000

- AIG Plans IPO for Asian Subsidiary
- Lowe’s Companies, Inc Profits Exceed Estimates
- Volkswagen Suspends Porsche Talks stating “the atmosphere is not a constructive one”

Overnight Market News – May 18, 2009

admin — Mon, 18 May 2009 12:44:09 +0000

AIG to Seek Asian Subsidiary IPO, Could Raise Over USD 4B
Japan’s AAA Foreign Currency Debt Rating Cut to Aa2 by Moody’s
Volkswagen Stops Tie-up Talks with Porsche as Not Ready for Merger
Europe’s Largest Papermaker, Stora Enso Oyj and Chile’s Celulosa Arauco y Constitucion SA to Purchase USD 344mm of Uruguayan Forest
Second-Biggest Home Improvement Retailer, Lowe’s Record’s 21.58% Decline in Profit to USD 476mm in Q01 Ended May 1, 2009
Indian Stocks Jump 17% on Elections
Crude Oil Stands at USD 57.38 per Barrel
Ethanol Stands at USD 1.78 per Gallon
Natural Gas Stands at USD 4.10 per British Thermal Unit (Btu)
Dow Jones Industrial Average Falls 62.68 Points (-0.75%)
London FTSE Index Rises 40.00 Points (0.92%)
Japan Nikkei Index Falls 226.33 Points (-2.44%)
Hong Kong Hang Seng Index Rises 232.21 Points (1.38%)
Brazil Bovespa Index Falls 438.81 Points (-0.89%)

Ben Bernanke Wanted To Sue AIG To Stop Its Bonus Payments

admin — Tue, 24 Mar 2009 22:09:32 +0000

Federal Reserve Chairman Ben Bernanke told Congressional lawmakers today, that he tried to prevent American International Group (AIG) from paying out lavish bonuses, and even asked that the company be sued to halt the payments … but that he was advised against it.

At a tense House Financial Services Committee hearing this morning, Bernanke told lawmakers that he found it “highly inappropriate” for the bailed-out insurer to pay $165 million in bonuses to the very division that was “the primary source of AIG’s collapse.”

He said he was told that the payments could not be stopped because of contractual obligations, and that he was also warned that legal action (which he wanted to pursue) could end up awarding the same employees more money in punitive damages.

“I then asked that suit be filed to prevent the payments,” Bernanke said. “Legal staff counseled against this action on the grounds that Connecticut law provides for substantial punitive damages if the suit would fail. Legal action does have the perverse effect of doubling or tripling the financial benefits to the (employees).“