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G-20 Faces Regulation Debate
The Group of 20 nations will take steps toward curtailing bank secrecy and imposing greater regulation of hedge funds, G-20 officials said Thursday. But key disagreements remain on questions of tougher regulation of financial markets, and many details in all areas will be deferred to the future.
U.S. Stocks Gain, Extend Global Rally; Treasuries, Dollar Fall
U.S. stocks rallied, extending a global advance, as accounting regulators approved a rule change that may boost bank profits and world leaders neared agreement on measures to fight the recession. Oil rose the most in three weeks, while the dollar and Treasuries fell. Citigroup Inc. (NYSE:C), Bank of America Corp. (NYSE:BAC) and Wells Fargo & Co. (NYSE:WFC) gained at least 7 percent as the Financial Accounting Standards Board voted to relax so-called fair-value rules.
Oil Prices Climb Above $50 a Barrel as Stock Markets Rally
Crude-oil futures bounced back above the psychologically significant $50-a-barrel mark Thursday on buying fueled by a weaker dollar and strong world stock markets. Light, sweet crude for May delivery was recently up $3.32, or 6.9%, at $51.71 a barrel on the New York Mercantile Exchange, rising above $50 for the first time since Monday. In early trading it reached $52.36 a barrel.
FASB poised to move to more mark-to-market flexibility
Responding to pressure applied by lawmakers on Capitol Hill, the Financial Accounting Standards Board on Thursday agreed with agency staff proposals to give auditors more flexibility in valuing illiquid mortgage assets that may have long-term value. Banks complain they can’t sell certain assets because of a lack of a market, but that the assets are not distressed and have strong cash flow.
Now, Obama ‘Owns’ General Motors
In firing the CEO of General Motors (NYSE:GM) this week and suggesting bankruptcy may be the best course for that company and Chrysler, President Barack Obama demonstrated forcefully that the Administration will go only so far to rescue even the country’s most important icons. But the move, which experts are comparing with a variety of similarly dramatic decisions by his predecessors, is fraught with political risk—and risk for his economic program generally.
European Central Bank cuts key rate to new low
The European Central Bank, confronting a recession and barely a flicker of inflation, on Thursday reduced its key interest rate to 1.25%, a fresh record low but a smaller-than-expected cut that stunned markets. Most economists had expected a half-point cut to 1%. ECB President Jean-Claude Trichet said the decision was taken by “consensus” — meaning that not all the governing council members supported the move. He added that the key refi rate may go lower than 1.25%.
Mortgage Rates in U.S. Decline to Record Low of 4.78%
Fixed mortgage rates in the U.S. fell to a record low for the second consecutive week, signaling that Federal Reserve Chairman Ben Bernanke’s effort to spur the housing market is gaining traction. The 30-year rate dropped to 4.78 percent from 4.85 percent a week earlier, Freddie Mac said today in a statement. The rate is the lowest in Freddie Mac’s records dating to 1971.
RIM Launches BlackBerry App Store
Research In Motion Ltd. (NASDAQ:RIMM) opened its online store for BlackBerry applications as it looks to tap a market for cellphone software made popular by Apple Inc. (NASDAQ:AAPL) and the iPhone. RIM is getting into an area increasingly crowded with high-profile companies, including Microsoft Corp. (NASDAQ:MSFT) and Nokia Corp. (NYSE:NOK) It is part of a larger push by the Canadian company to appeal to more consumers.
Are Smartphones on Cisco’s Wish List?
On Mar. 31, Cisco (NASDAQ:CSCO) was awarded a patent for managing time delays in relaying video wirelessly to consumer electronics devices. The same day, it received a patent for a network-connected phone able to stream video. Many of Cisco’s recently filed patents mention a personal digital assistant as a device that could potentially use the innovations described.
Airbus Says Deliveries May Fall 15% Next Year, Touching Bottom
Airbus SAS, the world’s biggest planemaker, anticipates that deliveries may drop as much as 15 percent next year in a worst-case scenario before picking up again in 2011, the company’s chief salesman told analysts. A target of 483 deliveries this year should still be achieved, John Leahy, who is also chief operating officer, said today in a presentation to analysts, according to two people present at the briefing in Broughton, north Wales.
Qwest seeking sale of long-haul network: WSJ
Qwest Communications International Inc. (NYSE:Q) is considering a sale of its long-haul voice and data network, according to a media report Wednesday. The online edition of The Wall Street Journal, citing unnamed sources, reported that Qwest is in the early stages of seeking a buyer for the network, which could fetch roughly $2 billion to $3 billion.
