Jan. 18-2008 Market Update

[Sapiens]

Asian shares recover ground after panic selling

http://afp.google.com/article/ALeqM5...wh_CXdR85O2jiA

TOKYO (AFP) — Asian shares recovered ground Friday from panic selling as investors pinned their hopes on swift measures to boost the ailing US economy set to be unveiled by President George W. Bush.

The president was due to announce later Friday "short-term, temporary measures" to stimulate the economy, said White House spokesman Tony Fratto, amid fears the US is heading for a recession.

The Tokyo Stock Exchange's benchmark Nikkei-225 index ended up 0.56 percent or 77.84 points at 13,861.29 in anticipation of the measures, staging a dramatic late turnaround after tumbling 2.81 percent in the morning.

Hong Kong was down 1.22 percent but was off its lows while losses in mainland China were limited with the Shanghai Composite index down 0.31 percent.

Other bourses also trimmed or reversed their falls, with Seoul closing up 0.6 percent, Sydney down 0.8 percent and Taipei up 1.02 percent in late bargain-hunting. Singapore was 0.38 percent lower.

Ben Bernanke, chairman of the US Federal Reserve, on Thursday backed the idea of a temporary US stimulus package and talked of the need for swift action.

...

[Sapiens]

AP Executive Morning Briefing

AP Executive Morning Briefing
http://ap.google.com/article/ALeqM5j...kYAzgD8U88A901

AP Executive Morning Briefing
20 minutes ago

The top business news from The Associated Press for the morning of Friday, Jan. 18, 2008:

Bush to Lay Out Economic Stimulus Ideas

WASHINGTON (AP) — President Bush is putting together his first public call for an emergency fiscal stimulus bill while negotiations on Capitol Hill focus on rebates for taxpayers and other steps to jump-start the sagging economy. Bush planned to lay out his position Friday, but he wasn't expected to go into specifics. Press secretary Dana Perino said Bush would demand that any package be effective, simple and temporary — mirroring calls by Democratic lawmakers for a "timely, targeted and temporary" stimulus measure.

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Asian Markets Mostly Recover From Plunge

TOKYO (AP) — Asian markets mostly recovered from early plunges Friday on hopes that President Bush will propose measures to keep the U.S. economy from sliding into a recession. Investors snapped up shares that had been beaten down in recent days. In Tokyo, the region's biggest market, the benchmark Nikkei 225 stock index rose 0.6 percent to 13,861.29, reversing an opening 3 percent plunge in the wake of an overnight drop on Wall Street.

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Analysis: Tax Rebates May Spur Economy

WASHINGTON (AP) — With the economy's prospects growing bleaker seemingly by the day, politicians in both parties have rallied around the three Ts, the mantra that any stimulus package needs to be timely, targeted and temporary. One might add the three Bs as well — the ability to deliver the biggest bang for the buck. In that regard, tax rebates have quickly risen to the top of a list that also includes extended unemployment benefits and a boost in food stamp payments.

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Industry Turmoil Slams Washington Mutual

SEATTLE (AP) — Turmoil in the mortgage and credit markets in the second half of 2007 decimated Washington Mutual Inc.'s fourth-quarter performance and dragged the country's largest savings and loan into the red for the year. WaMu had been preparing Wall Street for the hit, caused by the plummeting value of its mortgage portfolio and the growing number of people who can't repay their debts, since December.

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Upbeat AMD Report Pleases Investors

SAN FRANCISCO (AP) — Considering the devastating two years Advanced Micro Devices Inc. has endured, investors braced themselves for more bad news in the fourth quarter after rival Intel Corp. disappointed Wall Street with lackluster results. The slowdown they feared didn't materialize.

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IBM's Forecasts Strong Earnings

BOSTON (AP) — International Business Machines Corp. told Wall Street to raise its 2008 estimates Thursday, further boosting a stock that was already buoyed by strong fourth-quarter earnings. IBM's chief financial officer, Mark Loughridge, said earnings would be between $8.20 and $8.30 per share in 2008. Coming into Thursday, analysts polled by Thomson Financial were expecting $7.94 per share in 2008.

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London Exchange Opens Beijing Office

BEIJING (AP) — The London Stock Exchange opened a Beijing office Friday, stepping up its rivalry with U.S. markets to attract listings by fast-growing Chinese companies expanding abroad. The opening of the office came as British Prime Minister Gordon Brown was making a visit to Beijing.

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Merrill Lynch Posts Steep Loss

NEW YORK (AP) — John Thain, presiding over his first set of earnings on Thursday as the new leader of Merrill Lynch & Co., cleared the decks with some $15 billion of subprime mortgage related write-downs that led to the largest quarterly loss since the brokerage was founded 94 years ago. And, while it was among the most aggressive moves on Wall Street to deal with bad bets on subprime mortgages, Thain's still not ready to say the worst of the credit crisis is over.

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French Say 'Fire Me' and Sarkozy Listens

PARIS (AP) — Mariam, a 28-year-old employee at a retail chain in France, went to great lengths to get fired. She knew she wouldn't be eligible for unemployment payments if she simply quit. Mariam asked her company flat-out to fire her, but she was turned down. Then she simply stopped showing up for work. Her wish was granted at last — she was fired, went on the dole and found a new job six months later. Soon, such convoluted yet surprisingly common schemes may be a thing of the past. An unusual new proposal, prompted by President Nicolas Sarkozy's push for a more flexible labor market, would allow employees to get unemployment payments even if they quit.

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NYSE Snaps Up Amex, Ending Long Rivalry

NEW YORK (AP) — The New York Stock Exchange on Thursday agreed to buy the American Stock Exchange, ending a once intense rivalry that began in colonial times when brokers traded in outdoor markets. Both exchanges have battled for corporate listings and bragging rights since the early 1900s, with their trading floors just a short walk away from one another in Lower Manhattan. Newspapers around the country all listed the stock swings on the nation's two dominant markets, until investors began paying more attention in the 1990s to technology issues on the upstart Nasdaq Stock Market.

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Gold Prices

LONDON (AP) — Gold bullion opened Friday at a bid price of $877.20 a troy ounce, down from $886.10 late Thursday.

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Japan Markets

TOKYO (AP) — Japanese stocks recovered from an early plunge Friday as investors scooped up shares that have been beaten down in recent days. The benchmark Nikkei 225 stock index rose 77.84 points, or 0.57 percent, to close at 13,861.29 on the Tokyo Stock Exchange. The index broke a four-day losing streak Thursday, when it jumped 2.07 percent.

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Dollar-Yen

TOKYO (AP) — The dollar was slightly lower Friday in Asia on continuing worries about a possible U.S. recession. The dollar was trading at 106.96 yen midafternoon, edging down from 107.00 yen late Thursday in New York.

A service of The Associated Press. Copyright 2008 All rights reserved.

Yen at 106.96!

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