federal reserve, financial crisis, financial markets, financial sector, investors, new york
Confirming speculation that the Federal Reserve may cut interest rates before their next official meeting scheduled for 28-29 October, it was announced Wednesday that rates would be cut by 50 basis points to 1.50 percent. While welcoming the news, investors remain wary about the effect this will have on U.S. stock markets and the economy. In what has been termed as a “coordinated emergency rate cut”, similar interest rate cuts were made in the U.K., China, Canada, Switzerland and Sweden, as well as by the European Central Bank.
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dow jones, european union, federal reserve, financial institutions, nasdaq, us markets
Despite assurances from the U.S. Federal Reserve that measures are to be implemented immediately to make funds available to financial institutions, the U.S. stock markets took a battering for the second day in a row on Tuesday. The general outlook seems to be that whatever measures are taken at this stage, it may be “too little, too late”. The Dow Jones industrial average dropped 508 points, or 5.1 percent, to close at its lowest point since the end of September 2003, while the Standard & Poor’s 500...
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financial sector, global markets, treasury, us economy
Before the day even began, stock market players knew that Monday was going to present enormous challenges. With unanswered questions as to how the $700 billion financial sector bailout plan would be put into action, and how quickly the economy would see any benefit from it, Monday proved to be a rocky road for U.S. markets, and global markets did not fare any better. News of European financial institutions Hypo Real Estate AG and Fortis NV having to be rescued, only served to make a bad situation worse, as did...
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analysts, credit markets, financial sector, goldman sachs, investors
Following almost two weeks of intense debate, the revised $700 billion financial sector bailout plan was passed by the U.S. House of Representatives, with President George W. Bush signing the bill into law on Friday. With unanswered questions regarding the implementation of the plan and many questioning its potential effectiveness, analysts are doubtful that the plan’s approval will lift the cloud of pessimism hanging over the stock markets, at least in the short term.
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europe, european union, financial crisis, financial sector
President of France, Nicolas Sarkozy, is set to host a European financial summit in Paris this coming weekend in an effort to agree to a united European Union response to the financial crisis the U.S. is currently experiencing, which is impacting on global markets. The summit will be attended by financial leaders of France, Italy, Germany and Britain, as well as European Central Bank Governor Jean-Claude Trichet, European Commission President Jose Manuel Barroso and Eurogroup Chairman Jean-Claude Juncker.
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fdic, financial institutions, financial sector, investors, retirement funds, treasury, us markets
Following more than three hours of floor debate on Wednesday night, the Senate passed a revised version of the controversial $700 billion financial sector bailout plan, by a vote of 74 to 25. Both Presidential candidates, Senator John McCain and Senator Barack Obama, voted in favor of the plan that the House of Representatives must approve before it can be put into action. It is anticipated that the House will vote on Friday and proponents of the plan are optimistic that the vote will go their way.
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bailout, dow jones, financial institutions, financial sector
While global financial markets continued to fluctuate on Tuesday, U.S. markets rose substantially, gaining back roughly half of Monday’s enormous losses. Analysts believe that this rebound is due in part to expectations that, before the end of the week, Congress will push through a revised bailout plan. These expectations were strengthened when both Presidential candidates made it clear that they are in favor of the U.S. government’s efforts to rescue the financial sector, while President Bush confirmed that Monday’s defeat was by no means the end of the...
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