Fed to make another rate cut? by Corina Ciubotaru

On Wall Street, every little event in the global economy has an impact. A few days ago, a storm hit one of Mexico's oil refineries and suddenly crude oil prices went over $93, giving oil companies like ExxonMobil and Alcoa Inc a boost of stock value; Alcoa rose $1.08, while ExxonMobil rose $1.40. Gold prices are the biggest in 27 years and the Fed is considering another cut in the tax rate, by a quarter-percentage point to buy more time in dealing with the shaken economy. Meanwhile, 300 of the Standard&Poor's index companies posted an average 4.9 percent decline in profit while the index itself rose by 0.37 percent to 1,540.98; Nasdaq composite rose 0.47 percent to 2,817.44 and the Dow Jones industrial average rose 0.46 percent to 13,870.26. Other stocks were lowered as consumer confidence showed a massive decrease and hit a two-year low. The Fed has also been pushing money into the economy lately, with $17 billion being brought in temporary reserves on Tuesday, to help the entire economy get over these times of trouble. The rate is its biggest weapon but since the last one brought only slight changes, it's become even more careful in regard to when the new cut will occur. Nobody is now sure how the overall economy will react to the Fed's decision, whichever it may be. In other parts of the stock market, the biggest news is that Merrill Lynch chief executive Stan O'Neal is about to quit after the company had i''s worst ever third quarter.

related story: http://news.yahoo.com/s/ap/20071029/ap_on_bi_st_ma_re/wall_street;_ylt=AvYctfNbO0mDzxOCLEi__8Cs0NUE

by Corina Ciubotaru for PocketNews (http://pocketnews.tv)

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Bank of America stopped offering wholesale mortgages by Nina Gotzmannova

The crisis of U. S. economy and housing market has another victim. Bank of America, the nation’s second largest bank, decided to stop one of their services, offering wholesale mortgages trough brokers. Seven hundred people will lose their jobs in January. The bank decided to offer only mortgager straight to customers. They have 2,200 loan offices across the country, so they won’t need that much brokers as before anymore. The real estate division of Bank of America employs about 13,000 people and 7,000 independent brokers. The number 700 may not seem as high or disturbing, but considering the overall bad situation, those brokers are only people and most probably have loan on their own. If they lose their jobs, they would be less able to pay for the mortgage and everyone know, how it is hard to find a job during a crisis. Just take a look at all the poor workers in 1930s, when crisis affected United States and people were committing suicides because of it. But those 700 people are not the only ones who will remain unemployed. Bank of America decided to do a radical job reduction. After third quarter, when they noticed a significant loss in their earnings, they made a decision to cut 3,000 jobs. Fortunately those affected brokers, who will lose their jobs in beginning of 2008, can be saved. The bank offers them an opportunity to apply for open positions within the company and most probably they will be preferred. But if the earnings of Bank of America will still be slumping, the future for 203,425 employees wouldn’t be bright…

related story: http://news.yahoo.com/s/ap/20071025/ap_on_bi_ge/bank_of_america_mortgage;_ylt=ArmRTZMVbr8FKNKyCA9hzhqs0NUE

by Nina Gotzmannova for PocketNews (http://pocketnews.tv)

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Black month. by Barbie Kunkelova

Charles Stanley's economist and strategist Edward Menashy confessed to the public about his concerns about the recent world's stock exchange numbers. His fear might be caused also by the fact that today is October 23rd, that means still a month that usually brings market crisis along. Since the first market crash in the US in 1819 when bank failures, unemployment, foreclosures and decrease in manufacturing and agriculture, there have been far too many crashes. Majority of them happened in autumn. Black Friday of 1869 & in September. The Wall Street crash of 1929 & Black Thursday, Black Tuesday, both were in October. Black Monday of 1987, which was also just an "ordinary" October day. Black Wednesday of 1992 & September. 9/11/2001 crash & obviously, also hit the markets (especially the tourism-oriented parts) in September. 2002's October is also famous for a downturn. To sum it up, Septembers and Octobers are a threat for all businessmen, with the exception of the suppliers of Halloween items. Menashy says the only solution is to keep faith and wait for the Christmas season. And that is why Tesco's windows are full of sparkly Christmas trees and chains in mid-October. This year's autumn is no different. According to Reuters, the FTSE (Financial Times Stock Exchange) index fell down by 68.6 points to 6,459.3 on Monday, October 22nd. It reached its lowest level since October 1st. Major US, Asian and European indexes fell. In UK, miners were the standout losers, oil prices increased rapidly throughout the whole world and last, but not least, banks on the FTSE list lost many points. Some had to join bigger banks in order to rescue the customers with short-term liquidity problems with US Federal Reserve money. Well, what else is there during such times than hoping for better days?

related story: http://uk.news.yahoo.com/rtrs/20071022/tuk-uk-markets-britain-stocks-fa6b408_9.html

by Barbie Kunkelova for PocketNews (http://pocketnews.tv)

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Chinese financial sector will cooperate with United States by Nina Gotzmannova

Nothing can surprise more than an unexpected financial operation of great worth. One of them is recently announced cooperation and co-investment of U. S. company Bear Stearns Cos. and Chinese Citic Securities Co. Citic is controlled by Chinese government, and despite this "imperialistic invasion" is China still communistic country. What reminds one of the rules of communism & not to trust any of the capitalistic countries… Bear Sterns is one of the largest global investment banks and securities trading firms in the world. Citic is Chinese investment company and these two financial giant decided to join together. They will invest a whole $ 1 billion in each other and make some business in China together. This is the first time U. S. company made such a big investment with a Chinese firm together. The result of their cooperation is to bring some new financial products and services to Chinese market. China has fast developing economy and this step may be for them really important. But there may be another reason why Bear Stearns decided for this alliance. In the third quarter they noticed a 62 percent crash of their earnings. But Chinese financial sector had faced some difficulties in the past. After being not able to solve it by themselves Chinese officials allows U. S. bankers to step into the financial market and connect U. S. banks with Chinese ones. Sometimes is the capitalistic country not an evil enemy, who tries to destroy the wonderful communistic economy, and sometimes are the financial intentions more important than the official state philosophy…

related story: http://news.yahoo.com/s/ap/20071022/ap_on_bi_ge/bear_stearns_partnership;_ylt=At5P3XJQXZzrpE14fDAGOWqs0NUE

by Nina Gotzmannova for PocketNews (http://pocketnews.tv)

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Economy crisis is still in U. S. by Nina Gotzmannova

The dream of millions of people in the world is not that real as in their dreams. For thousands of future green card holders or other immigrants may United States symbolize their paradise. They save money, starve and hope behind the ocean they will find good work, success, love or happyness. But the ‘American Dream' in not there anymore. Economy crisis is still in the country and worry analytiscs, managers and shareholders. After the housing market crisis in the beginning in 2007 is the economy constatnly unstabile. The problem is causing several factors. One of them is that dollad is crushing. For example, in Czech Republic is on its historically lowest rate & Czechs pay 18.99 Czech koruna for $ 1. In comparison in October 2006 $ 1 was for 22.23 Czech koruna. Dollar also fell to a new low against the euro. Another factor is that the prices for oil are higher and bank sector is reportin some problems too. That all is reflecting the Dow Jones Industrial Average. Only in 9 October rose to record high 14,164.53 points, the record high in its history, but this positive situation didn't take long. On Thursday the Dow fell 3.58 to 13,888.96. between the two dates is only ten days gap. People who wants to move into U. S. should rather reconsider their decision. Maybe it is better to leave United States for some time alone. They have to battle with the crisis, set new rules for the subprime mortgages and housing loans and deal with all the problems by themselves. Then the situation would be favourable for all those dreaming their ‘American Dream'.

related story: http://news.yahoo.com/s/ap/20071018/ap_on_bi_st_ma_re/wall_street;_ylt=AunMc0Pn0_38fCOm.Kz9Phis0NUE

by Nina Gotzmannova for PocketNews (http://pocketnews.tv)

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US second largest bank losses by Claudia Sonea

US economy is trembling due to the housing slump, oil record prices and the weakening of the dollar. In the dawn of the G-7 meeting many have great expectations that new rate cuts will take place in order to accelerate the slow rhythm of the economy. However, the situation is far from being over, the second largest bank in US, Bank of America Corp. reported a 32 percent profit drop in the third quarter. The CEO Kenneth Lewis blamed his bank's problems and traders' mistakes for the record losses. As it is, some businesses and infrastructure will be eliminated. Charlotte-based bank reported that profits declined from $5.42 billion to 3.7 billion, therefore the bank's revenue fell to 16.3 dollars. It's not only that it did not fulfilled expectations, but also was way below the expected earnings of $1.06 per share on revenue of $18.3 billion reveals a poll made by Thomson Financial. Built under CEO Hugh McColl Jr, Bank of America's goal is to expand as much as it can and in consequence the bank acquired in 2004 FleetBoston Financial, in 2006 credit card issuer MBNA Corp, while this year in July the new acquisition was management company U.S. Trust Corp and in October it took over LaSalle Bank Corp. The bank spent $247 million for leveraged loans and other financing commitments, and suffered a $607 million trading loss. Provided that Lewis assured for a careful analysis and a clarification in the weeks ahead, the company might regain the record losses. Furthermore, according to Friedman, Billings, Ramsey & Co. analyst Gary Townsend the bank's expense controls are solid and a slight expansion in net interest margin is positive and wealth-management revenue increased 24 percent to $2.2 billion. Other banks have reported losses too: New York's Citigroup Inc. and JPMorgan Chase & Co, The Bank of New York Mellon Corp, Capital One Financial Corp, etc. There is a problem widely spread nowadays in US. Where everything is heading….stay connected!

related story: http://news.yahoo.com/s/ap/20071018/ap_on_bi_ge/earns_banks;_ylt=AsU6Ddlj6Vnf_4Pkxys3X7Ks0NUE

by Claudia Sonea for PocketNews (http://pocketnews.tv)

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The dollar is sliping again by Claudia Sonea

The last few months of problems that hit US has caused an increasing weakinning of the dollar against most currencies, especially in front of the euro that hit record highs. Therefore the G-7 is expected to take some measures in order to help slowing economy. However, most traders think that the G7 finance ministers and central bankers in Washington meeting will not change too many things. Group of Seven denotes the meeting of the finance ministers from the group of seven industrialized nations of the world formed by the United States, Japan, Germany, France, Britain, Italy and Canada. There is another group more important called G 8 and refers to the meeting of eight state presidents, the seven from G7 to which Russia is added. They meet every year to discuss economic policy. The US situation is presenting pretty bad, euro valuing a record of 1,430 dollars. Also it fell against Japanese currency. Ernest-Antoine Seilliere, head of the European employers association BusinessEurope appeals to political intervention in order to stop euro's further growing. Industrial leaders say that despite exports problem can amplify. According to Manufacturers Alliance/MAPI a soft dollar is one of the risks for global economy. From the up-coming meeting of G-7 analysts have little expectations. Mitul Kotecha, an economist with Calyon stated that are big chances that after the meeting the dollars to resume its weak course. Also David Rodriguez at Forex Capital Markets stated that traders have no expectation from G-7, but he adds that any reference to the Japanese yen or the US dollar could benefit them. The biggest problem that draws back the dollar is the housing slump and it's getting worst everyday due to the sub-prime home loan segment. Will there be a change or the dollar will continue to slip? Surf on and stay intouch to see where everything is heading.

related story: http://uk.news.yahoo.com/afp/20071018/tbs-forex-us-8cc5291_1.html

by Claudia Sonea for PocketNews (http://pocketnews.tv)

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Poor Americans remain poor by Nina Gotzmannova

Almost 50 million Americans, who are receiving monthly checks from Social Security, will be a little bit disappointed next year. Unlike other years, the increase of the sum they will see on their checks will be the smallest in four years. The cost-of-living income will increase only 2.3 percent in 2008. In 2007 it was 3.3 percent, in 2006 4.1 percent. The Social Security and Supplemental Security Income benefits increase automatically each year. The jump is based on the rise of CPI-W from the third quarter of the prior year, from July to September. But although the aid will rise only 2.3 percent, the real cost of living has increased more. The consumers will have to pay more for heating their homes in winter, because the price of oil is higher than ever. Food and medical care are more expensive too. And energy, food and medical care are the things that elderly and disabled people, those who need the help of Social Security at most, need to buy first. In the next year Social Security will have to deal with another problem. Its name is ‘baby boomers'. The strong generation of people born after war in years 1946 to 1964 will become eligible for the Social Security benefits in 2008. And the amount of them is incredible 78 million people. The pension program will suffer from overpopulating, because for the next twenty years will 10,000 people every day ask for Social Security benefits. So now is it a problem for U. S. government to solve, where to find these money for so many people and provide in nice and pleasant green old age.

related story: http://news.yahoo.com/s/ap/20071017/ap_on_go_ca_st_pe/social_security;_ylt=AgccyHvoLdf.48tWeSkLnles0NUE

by Nina Gotzmannova for PocketNews (http://pocketnews.tv)

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Countrywide is still in a difficult situation by Corina Ciubotaru

The SEC, America's top authority when it comes to financial market control, has recently begun an inquiry in the business of Angelo Mozilo, CEO of Countrywide Financial, the country's largest mortgage lender. As part of a larger investigation concerning several bosses in the mortgage business, SEC wants to find out how Mr. Mozilo sold stock during the hottest times of the mortgage crisis. Apparently, he has sold more than $130 million in Countrywide stock and news of this enraged the North Carolina state treasurer Richard Moore, who wrote a complaint to Christopher Cox, the chairman of SEC about the matter. Mr. Moore, a Countrywide shareholder, is asking Mr. Cox to begin investigating Mozilo's summer moves on the stock market. The SEC is also reviewing a rule that allows executives to carry out pre-arranged trades as long as they don't possess inside information. In the mortgage crisis, Countrywide Financial was almost bankrupt at one point, but managed to recover after receiving $2 billion in equity investment from Bank of America and $12 billion in investments from its other banks. More recently it announced layoffs of 20 percent or 12,000 jobs due to mortgage defaults and foreclosures, which are expected to cost the company $125 million to $150 million dollars in restructuring charges. Last month, Countrywide cut 4,935 jobs and now hopes to make $57 million of the charges in the quarter ended September 30th. Mortgage funding for September fell 44 percent from a year ago and the company's shares also fell to $17.35 on Wednesday. Its shares fell a total of 57 percent this year.

related story: http://news.yahoo.com/s/ap/20071017/ap_on_bi_ge/sec_countrywide_ceo;_ylt=Ao_M0.oUcTbz8T3mNXKsu3us0NUE

by Corina Ciubotaru for PocketNews (http://pocketnews.tv)

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Fed"s survey by Claudia Sonea

There have been a lot of changes in the US economy this year and the stock market was constantly sliding from record highs to record losses. The main reasons were housing slump, growing oil prices to above $88 and the dollar's downfall in front of euro. Federal Reserve has the power to change things and put a balance, after 16 August things have brighten a little bit for investors and the stock market is not that volatile. However there is still expected a new rate cut. Fed's Chairman, Ben Bernanke, keeps making statements. After the one made in New York, Monday night, now a new report was released to the press on Wednesday. Still, the report was a breath of fresh air, revealing that despite house problems and credit tightening the economy continued to expand, on a slower rhythm, but it did. The main piece of advice was that companies and people spend and invest at a sufficient pace in order to not disturb the economy. The survey made by Fed and presented, revealed some particular things. First of all, contacts in the industry don't have a good forecast for the future of US economy, while real-estate contacts think housing market will not change any time sooner. Furthermore, firm contacts believe that credit tightening and slowing construction might slow their activity, but keeps an optimistic perspective for the time been. Bernanke said that economy's performance is until now reasonably good and the implications of the credit crunch on the broader economy are still uncertain. Provided that the Fed's next meeting will be on 30-31 October, analysts have different opinions. Some think that due to the government report on the job market that is not that troubled and the retailers make decent sales, the rate will not be changed. Others think that it will make another rate cut in order to accelerate economy's growth. After Fed's survey, many incline to believe the first category. So, employment climate is good, although in some regions its growth has stopped. The Labor Department shows that the unemployment rate rise was balanced by a solid increase in salary. This improved the worst housing crisis in 16 years. However, it is still difficult to acquire a car, a house or anything else due to the credit tightening. Many lenders applied tighten lending standards, especially for real estates. Many people were unable to pay their mortgage or to sell their homes; therefore a new-home construction fell 10.2 percent in September, according to the Commerce Department. On the inflation Fed's survey showed higher prices for food, energy and raw materials. Even though, retailers tried to limit the passing of increased costs to customer, Labor Department revealed a 0.3 percent rise in consumer prices. The information, collected before October 5, for the survey was provided by the Fed's 12 regional banks. Don't go away…it's far from being over.

related story: http://news.yahoo.com/s/ap/20071017/ap_on_bi_go_ec_fi/fed_economy;_ylt=Aj92AnNxqt65GDEyxaBr9_is0NUE

by Claudia Sonea for PocketNews (http://pocketnews.tv)

PocketNews is a new real-time news broadcaster delivering the latest and hottest news right to your pocket ! With global clients who want to be kept up to date, PocketNews is everyone's way of keeping in touch with the World.

Uncomfortable comfort. by Barbie Kunkelova

Oil price reached a new record since the year 1981 & per barrel you'll pay only $89, how ridiculous! In 1981, the oil exports were cut by Iran and so the price of oil hit an unbelievable dollar amount back in those days. This news will also translate into higher prices of gasoline, which also upsets me as a driver living in a capital city. Even though I only drive a Skoda Fabia which "eats" around six liters per kilometer. Therefore I bite my lip every time I get stuck in a traffic jam & which happens every morning. More precisely & twice every morning, for I live in a tiny town behind Raca. I remember my astonishment at the price of gas after the summer season ended & thanks to declined demand typical for the end of summer driving season. But this is very likely to change in upcoming days due to higher oil costs. Also the recently growing negative relationship between Turkey and Iraq are not helping us drivers. Turkey would love to invade northern Iraq & the part famous by its inhabitants & Kurds & and its biggest treasure & oil. Turkish excuse is, however, the desire to get rid of Kurds. But people are capable of worse things than lying when it comes to owning more oil. I wonder if also the low value of the US dollar (business world hates uncertainty) or the violence in Nigeria (another producer of oil) are another reasons that cause us this oil trouble. But no matter what happens in future, there still will be a large demand for oil and gas. Because one of them means power and the second one the comfort of driving. And we love both, don't we?

related story: http://news.yahoo.com/s/ap/20071017/ap_on_bi_st_ma_re/wall_street;_ylt=AhLIF5g9PJVICOrClHpVMKes0NUE

by Barbie Kunkelova for PocketNews (http://pocketnews.tv)

PocketNews is a new real-time news broadcaster delivering the latest and hottest news right to your pocket ! With global clients who want to be kept up to date, PocketNews is everyone's way of keeping in touch with the World.

Fed is giving the chills by Claudia Sonea

This summer was terrible for the stock market that went through its worst period of ups and downs and plenty of instability. However, after August 16 when the Fed cut the discount rate situation has been improved and stock's prices were pushed higher and will continue to be pushed until the end of the year, according to Edward Yardeni, an economist who runs Yardeni Research in Great Neck, N.Y. Therefore Fed has a very influent role and that is why no one was surprised that after Federal Reserve Chairman Ben Bernanke's press release on Monday in New York, Wall Street had losses again. Investors were sobered up by the Bernanke who reinforced the concerns that summer's credit tightness might persist into the winter. Furthermore, Hugh Johnson, chief investment officer of Johnson Illington Advisors reveals that the combination between slumping housing market and higher oil prices is lethal. His declarations being supported by the fact that crude oil prices reached a record above $88 a barrel and the National Association of Home Builders' index that tracks developers' expectations of future home sales got to the lowest point since January 1985. As it is, more banks, like Wells Fargo & Co., KeyCorp, Midwest regional bank and U.S. Bancorp, give disappointing results, among which Citigroup Inc. reported a steep third-quarter profit decline and announced plans with other banks to create a fund that will help the credit markets. Like usual Dow Jones' stock prices fell 0.51 percent to 13,912.94, Standard & Poor's 500 index 0.66 percent, to 1,538.53, the Nasdaq composite index slide 0.58 percent to 2,763.91, also the Russell 2000 Index of smaller companies fell 6.01, or 0.72 percent. Still after Intel and Yahoo.com posted third-quarter results better-than-expected, the stocks gained in the after-market trading. So, Yahoo after falling $1.17 to $26.69 during the regular session, gained in the after-hours trading earnings of 11 cents a share- more than the 8 cents predicted by analysts; while Intel had a penny ahead of forecasts, closing at 31 cents a share. Due to the investors that sell stock for quick money, bonds prices have risen, but gold price has risen too and the dollar rose against other currencies. Inflation is another problem revealed by Bernanke on Monday. Not the core one- food and energy- which is mild, but the oil prices who reached record highs surpassing $88. However, financial and housing-related stocks fell and retailers fell too. What will happen next? Stay connected, because there are more exciting news to come.

related story: http://news.yahoo.com/s/ap/20071016/ap_on_bi_st_ma_re/wall_street;_ylt=AuevnQ3LCOnLtiAa1X7ZlyOs0NUE

by Claudia Sonea for PocketNews (http://pocketnews.tv)

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New statement about Northern Rock crisis today by Nina Gotzmannova

His name may be sweet, but his message definitely not. Alistair Darling, the Chancellor of the Exchequer, will deliver his statement about Northern Rock crisis to the House of Commons today. But the customers still may feel safe. The government will extend its financial guarantee over the savings of Northern Rock customers. The crisis began in September this year, when Northern Rock, one of the top five mortgage lenders in United Kingdom, asked the Bank of England for support. Although they were not in real troubles, they just had some liquidity problems, the customers panicked. The clients of Northern Rock began to withdraw their savings from their accounts. They were even able to wait several hours in a long queue to get their money home. But the customers shouldn't be so worried. On 17 September, when the clients withdraw almost £2, good news came. The British government and the Bank of England announced they would guarantee all the savings in the bank. Recently the Treasury, which is overseen by Alistair Darling, confirmed that it would extend the guarantee over all deposits made, because first it was guaranteed only moves until 19 September are safe. It means all new accounts will be safe too. The last ones who should be worried are the local sport clubs. Northern Rock is a proud sponsor of local football club Newcastle Union, local rugby union club Newcastle Falcons, local basketball club Newcastle Eagles and several more sport undertakings. The famous English loyalty and passion for sport may be enough guarantees for the clubs to get their money and represent their sponsor.

related story: http://uk.news.yahoo.com/epolitix/20071010/tpl-darling-set-for-northern-rock-statem-0a1c1a1_1.html

by Nina Gotzmannova for PocketNews (http://pocketnews.tv)

PocketNews is a new real-time news broadcaster delivering the latest and hottest news right to your pocket ! With global clients who want to be kept up to date, PocketNews is everyone's way of keeping in touch with the World.

China has 106 billionaires, the wealthiest is a female by Nina Gotzmannova

Everyone knows China has some population issues and it's facing problems what to do with so many people. But the growth of new Chinese babies is not the only growth in the country. The number of wealthiest people has increased up to seven times this year. Hurun Report, a Shanghai magazine, has published the list of wealthiest people on Wednesday. When it was first published nine years ago, there were only 50 people; each of them had at least six million dollars. This year there is 800 people ant the "poorest" one has 105 million dollars. China has 106 billionaires, compared to 15 last year. The net worth of the richest one 130 billion yuan, what makes $ 17.3 billion. And the richest one is a female. Yuan Huiyan is 26-year old female, graduate of Ohio State University and a property developer. Yuan is a daughter of Yeung Kwok Keung, the co-founder of a well known property development firm Country Garden Holdings. Her father transferred his shareholdings to Yuan in 2005. But her life and even her face was a secret for a long time. For the first time when her face was revealed to the public was in April 2007, on her wedding day, when the wedding pictures of her and her new husband spread over the internet. Two days before the Hurun magazine published its list, US magazine Forbes published similar list and also put Huiyan to the first place. Forbes estimated her wealth to only $16 billion.

related story: http://uk.news.yahoo.com/afp/20071010/tod-china-wealth-business-billionaires-h-575248e_1.html

by Nina Gotzmannova for PocketNews (http://pocketnews.tv)

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Stock market again in danger by Claudia Sonea

Since mid-August when the housing slump and the credit crunch, despite Fed's rate cut, stock market has passed through very troubled times. Now, again after big gains at the beginning of the session, traders had lost big time, especially in the technology area due to the news that Wall Street will lower its sales expectations for Baidu.com, the leading Chinese search engine that can search websites, audio files, and images. Also, the statement of ECB governing council member Axel Weber, that the rising inflation in the euro zone might impose a change in policy action, made traders restless because of the threat that European growth might slow and in the US inflation could prevent the Federal reserve to make another rate cut. However, many investors are betting on this reduction due to the announcement that the target federal funds rate was reduced with half a percentage point on 18 September as a response to the tightening credit. Kelmoore Strategy Funds portfolio manager Matt Kelmon revealed that Baidu.com lowered revenues was a hard hit to the stock market that was on the waves in the past few days. Furthermore all the stocks with gains are having great losses right now. Like always, Dow Jones is the first one hit and from a new trading high of 14,198.10 got to 14,015.12. The Standard & Poor's 500 index fell to 1,554.41 from 1,576.09, while the Nasdaq composite index lost 39.41 to 2,772.20. Gold and oil prices rose again intensifying investors' worries about the inflation. However, the weakening of dollar in front of the euro made exports more competitive abroad and despite the rising and dropping of the stock prices still there were significant rising like that of Dow Jones that gained more than it lost every time. Wal-Mart, one of the 30 stocks that make up the Dow industrials, increased the third year profit forecast even if sales rose less than it was expected, but still rose. Good news overseas stock markets are dealing with gains; stocks in Europe rose: Britain's FTSE 100 rose 1.38 percent, Germany's DAX index advanced 0.59 percent, and France's CAC-40 rose 0.42 percent and Japan's Nikkei stock average closed up 1.64 percent after a rating agency upgraded the country's debt. Don't go yet investing your money, you might be penniless at the end of the day.

related story: http://news.yahoo.com/s/ap/20071011/ap_on_bi_st_ma_re/wall_street;_ylt=AjYxlDWUhOGTta_9e7M7N.Ks0NUE

by Claudia Sonea for PocketNews (http://pocketnews.tv)

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Countrywide Financial crisis looks serious by Nina Gotzmannova

Countrywide Financial Corp. announced on Thursday really unpleasant news. The nation's largest mortgage lender has some fundings problems. Their mortgage fundings for last month fell 44 percent comparing with a year ago. The company offers two types of mortgages. First one is mortgage loans, packing for sale to large investors. They are called mortgage backed securities, they are paid for longer time and the monthly payment can be easily changed, so it's not predictable the monthly cash flow. The second type, non-conforming mortgages, must be sold in the secondary market to private investors. In August 2007 secondary market stopped the sales of most of these second type loans. It was a big bang for Countrywide, because at this time the company had issued about a fifth of all mortgages in United States. Countrywide was at potential bankruptcy risk. As a result of the collapse of the secondary market Countrywide is firing people, almost 5000 people lost their jobs and another 7000 is waiting for their final day at work. According to analysts the company may fire even more people, up to 40 percent, which mean another 12,000 people. In stock market is the situation almost the same. On Thursday the shares of the company fell 52 cents, which is almost 3 percents. The company was founded in 1969 and its revenue in 2006 was more than $ 13 billion. The company has been described as the "23,000% stock", because from 1982 to 2003 Countrywide delivered investors a 23.000% return. The happy days are probably over…

related story: http://news.yahoo.com/s/ap/20071011/ap_on_bi_ge/countrywide_mortgages;_ylt=AvMsCjJ9YKXeBSHg7W4hb3Ss0NUE

by Nina Gotzmannova for PocketNews (http://pocketnews.tv)

PocketNews is a new real-time news broadcaster delivering the latest and hottest news right to your pocket ! With global clients who want to be kept up to date, PocketNews is everyone's way of keeping in touch with the World.

Britain holds the power by Claudia Sonea

After the turbulences through which the American stock market went due to the housing slump, in a BBC television interview finance minister Alistair Darling said on Sunday that the UK growth will not be that affected. Indeed the housing issue has spread all over the world and the IMF (International Monetary Fund) will have to lower the expectation for growth. According to him, Britain is in a much better position to face the credit crunch than any other countries and gave as an example the survival of the 1929 crash of the American stock market. However he did not offered any specific dates in regarding his pre-budget report for the next year he has to deliver on Tuesday to the Parliament. For the time been the Treasury predicts a growth of 2.5 to 3 percent for the next year. Northern Rock a victim of the credit crunch is the first bank run for a century and Darling says that despite all this, their economy is still strong and capable to overcome the difficulties. Moreover he added that he will not promise anything that he can't fulfill, referring to the inheritance tax that the Conservatives wants to change so no one can bequeath less than one million from takes. Alistair accuses the Conservatives of extravagant promises that can't be fulfilled like the increase of inheritance tax threshold and exempt most first-time home buyers from property tax. That brought them a boost in the opinion polls and making Prime Minister Brown to rethink his decision of elections next month. To counter-attack this move, Darling invests a lot in health service and a cut in home tax purchases and inherited wealth. Furthermore, an unpopular loophole that allowed equity bosses to pay lower taxes will be closed down. Is everything politic propaganda, or is it true? Stay connected and find out.

related story: http://uk.news.yahoo.com/rtrs/20071007/tpl-uk-britain-budget-c31991c_2.html

by Claudia Sonea for PocketNews (http://pocketnews.tv)

PocketNews is a new real-time news broadcaster delivering the latest and hottest news right to your pocket ! With global clients who want to be kept up to date, PocketNews is everyone's way of keeping in touch with the World.

Dow Jones on its record high by Nina Gotzmannova

Whether you are an economist, investor, owner of a company or just simple Joe Doe with no interest in things such as stocks or shares, you can join the party Wall Street Throws. Just on Monday the fourth quarter begins and there is a new record. With index on 14,087.55 Dow Jones industrial average rises to record high. Index broke its former record from July this year. The Dow rose 1,38 percent to record close. Also the blue chip index rose as high as 14,115.51, breaking the record from July too. But there are more facts that indicate the market is back to its normal earning level, as it was before the slump in third quarter. One of them is that Nokia revealed an $ 8.1 billion offer to buy Navteq Corp., a company known for making navigation software. So it seems the companies are not afraid to make big decisions and the financial market is stabile for a while. Also Citigroup, the world largest company and the primary dealer in US Treasury securities, mostly considered a barometer for the banking industry, gave real numbers about its damage. So the predictions of the worst what can happen are already known and no one can expect anything worse. The future can brings only better things. Dow Jones industrial average is the oldest continuing U. S. market index, created in nineteenth century. It contains of 30 largest and most known public companies in the United States. When it starts, the index was 40.94. For the first time it has closed over 5,000 was in 1995, in 1997 it has reached the magical number 10,000.

related story: http://news.yahoo.com/s/ap/20071001/ap_on_bi_st_ma_re/wall_street;_ylt=ApmAGEboAYPDpJp__lc4Pk.s0NUE

by Nina Gotzmannova for PocketNews (http://pocketnews.tv)

PocketNews is a new real-time news broadcaster delivering the latest and hottest news right to your pocket ! With global clients who want to be kept up to date, PocketNews is everyone's way of keeping in touch with the World.