Asian Markets Tumble on Recession Fears
Associated Press
Transcript
Asian stocks took a beating Thursday with Tokyo's Nikkei plunging more than 11 percent that's just a day after Wall Street took another dive the second largest Point loss ever Japan it's still exists supplement for our country it means that we are still depending on the global economy I suppose a business cycle in South Korea the main index dropped nine and a quarter percent every other key index was deep in the red with Hong Kong off 6.2 percent Australia down 6.7 percent and Singapore losing 7.3 percent fears about the world economy have overtaken initial relief that the markets breathed at the start of the week that's when governments around the world unveiled a series of Bank rescue packages Brian Thomas the Associated Press
Dow Looks to Bounce Back After Huge Slide
Associated Press
Transcript
markets are likely to bounce around a bit today as Wall Street opens to a mixed bag of news first the good news is unemployment numbers are down the labor department reports that the weekly jobless claims have declined part of that could be because of the fading impact of the September hurricanes but either way around investors are happy to see those numbers we're also going to see a whole bunch of third quarter earnings amongst the banks City Group maril Lynch City group's earnings actually already came out this morning a $2.8 billion loss it was not pretty they also announced they're going to have to cut another 11,000 jobs investors are watching all of these economic reports very carefully now rather than just watching day-to-day trading the Dow tanked yesterday again another more than 700 points overnight we also saw Japan's nikay markets also tank 11% so investors are very wary of whether or not we're going to see this volatility keep on going in the markets or if whether or not we're going to Plateau either way around investors know that we are going to have some Shaky Ground in the month's maybe even years ahead in New York Bonnie ghost the Associated Press
Money Minute: Merrill, GM, Nike
Associated Press
Transcript
EP money minute meil Lynch's losses are widening the bank took more than 122 billion in charges and write Downs tied to the sale of mortgage Investments and Fallout from the credit crisis the struggles don't end there Revenue in the company's wealth management division long considered the bank strength declined as well overall Merill which has agreed to be acquired by Bank of America lost more than $5 billion or $558 a share during the third quarter General Motors will lay off another ,600 workers at three factories in the coming months the indefinite layoffs affect 700 workers at GM's Pontiac Michigan pickup truck plant another 500 workers at the Detroit ham traic assembly plant and 400 others at a sports car plant in Wilmington Delaware and Nike is putting its foot down when it comes to Walmart the apparel maker has filed a lawsuit alleging the retailer is selling shoes that infringe on its patented shocks Footwear the shoes have a spring-like device in the heel Nike alleges Walmarts are the say I'm Mark Hammer with ap money
Stocks Shoot Higher As Volatility Continues
Associated Press
Transcript
[Applause] it's a crazy crazy Market it's so out of control you know the liquidity is like gone I I think that there's no way to tell which way this Market's going to go and how long this is going to take Traders on the stock exchange floor wouldn't even venture to guess where the markets will turn next I would be prepared for a lot of volatility uh volumes that are anywhere from light to stream to match the volatility another 50 for sale 30% of the volume after the second largest Point drop in history on Wednesday investors anxiously watched the markets to see how they would respond to more news about weekly unemployment numbers and third quarter earnings the Dow seasa between positive and negative territory throughout the day before closing with a gain of 401 points at 8,979 the S&P 500 Index closed up 39 at 946 while the NASDAQ closed up 89 at 1,718 most Traders and analysts agree that the dips and Dives that we're seeing here on the trading floor is not just about the Frozen credit markets or Bad Mortgages when you add in unemployment consumer spending inflation it points to more fundamental problems in our economy stock market doesn't like it because they're worried about recession they're not worried about inflation right now and what these numbers indicate is we're in recession CPI numbers this morning that were um as expected and we had jobless CES that were a little bit better than expected although the trend in jobless numbers the moving averages is still not particularly Stellar uh I think really we're seeing here an absence of buyers people still not ready to commit to the market and it's likely to stay that way as long as recession is on the tip of many economists tongues in New York Bonnie go the Associated Press
Your Money: Getting a Handle on the Market
Associated Press
Transcript
[Music] in the last few months we've all become increasingly accepting of triple digit swings in the Dow but in the last couple weeks the Steep declines have really kind of made us a little bit more nervous than perhaps we we were in the past to Triple digit swings um and we've been talking quite a bit about Market volatility and there actually is a measure of Market volatility it's something called the CBOE volatility index uh CBOE refers to the Chicago Board options exchange and it's commonly referred to as the vix vix if you plug that ticker into a financial website you can kind of see that it's it's spiked recently as you would expect given the the Steep decline in the market lately and what the vix is it's a measure of options trading and options are um an agreement to buy a stock at a set price and this measures the anticipated volatility on the standard and pores 500 in the next 30 days so if you take a look at the the vix chart you'll see that it's again it's spiked as you would expect um so when you see discussions of volatility you may want to plug vix into the into your search engine and just sort of get a sense as to where we stand historically right now it's off the charts but when things start to settle down a little it may be an interesting measure for you to keep an eye on
What question would you ask the presidential candidates?
C-SPAN
Transcript
Hi, I'm Cody Goodman. I'm here from Union University in Jackson, Tennessee. I was a delegate to the Democratic Convention this summer, and I'd like to ask Barack Obama what specifically he would do for college students as far as at least tuition. Tuition is still going up, and student loans, what he would do about making those more accessible, especially for us thinking about grad school. With this credit crisis, it looks like it's going to be hard to maybe even get a loan, and that's what I'd ask him.
Couric's Financial Notebook
CBS
Transcript
foreign caused the Dow to plunge 380 points within minutes of the opening bell but the buyers came out late in the day to snap up Bargains and the Dow sword closing up 400 points the price of oil continued to slide finishing today below 70 dollars a barrel that's less than half its all-time high falling oil prices turned out to be bad news for Southwest Airlines which announced today it lost 120 million dollars in the third quarter its first loss in 17 years the reason it locked in its fuel prices months ago when oil was on the way up and there's good news for retirees the government announced today Social Security benefits for 55 million Americans will go up nearly 6 percent in January for the average retiree that's an increase of 63 dollars to 1 153 dollars a month the hike is pegged to inflation which is running at the highest rate since 1982.
Dow surges 400 on credit thaw; Citigroup loses $3B
CBS
Transcript
signs the credit freeze is cracking and inflation is easing helped the market soar into positive territory a key interest rate fell today indicating banks are more willing to lend money that and some bargain hunting pushed the dow up just over 400 points the nasdaq gained 89. despite the positive day investors continue to spot signs of recession one of them production at america's factories fell nearly three percent in one month it's the biggest drop in almost 34 years also more than 460 000 americans filed claims for unemployment benefits this week that's down from last week but the number has now been above 400 000 for 13 straight weeks and that's considered an indication of recession the financial meltdown continues to hammer american banks citigroup lost almost three billion dollars in the third quarter the company recently cut 11 000 jobs and merrill lynch lost over 5 billion 3 billion more than the same time last year both companies were crushed by bad mortgages and today interest rates on home mortgages shot up the average rate on a 30-year fixed loan is 6.46 percent up half a point it's the largest weekly increase in more than 20 years while the rate on a 15-year fixed mortgage rose to 6.14 that's your money watch log on to cbsnews.com for more on wall street i'm alexis christopher
No Market Bottom In Sight
CBS
Transcript
it's a question of read them and weep this morning world markets which had been up earlier in the week were once again in free fall in japan the index was down by eleven percent in australia by about seven percent markets in europe which had opened up about five percent down later made up some ground but nobody knows where the bottom is this is bad news chasing itself around the world if there was any hope that world markets could decouple from american declines the numbers from sydney to singapore to beijing tell a different story after wall street's drop yesterday the fall in tokyo was the biggest in 20 years japan's prime minister tara asso said investors were concerned the massive u.s bailout package was still too small insufficient he called it what's worse the losses are no longer simply the result of falls in bank and finance stocks the decline is now spreading to other companies particularly those involved in natural resources where demand is falling in anticipation of a world this is dire and i have to say that being down another five percent this morning losing over 200 points in the first 20 minutes trading is very very disappearing for everybody it's now a question of really that the banking rescue act has come too late it should have happened a year ago we've covered that ground it was the abrogation of responsibility in the united states and the united kingdom to actually investigate how dire the problem was after bear stands has got us into this mess and unfortunately we are staring vertically into recession it has arrived all of the money poured into banks around the world by governments has so far not paid off the whole point was to try to free up credit but the indexes used by banks to loan to each other and to industry have barely budged mark phillips cbs news london
Africa, Middle East expectations
CNN
Transcript
Hi, I'm Christian Purefoy in Lagos, Nigeria, where most people here haven't seen the presidential debates, and your average Nigerian hasn't yet been affected by the global economic crisis. However, this is the most populous black nation in the world. There's an estimated 150 million people here in Nigeria, and they've been following the U.S. presidential race as avidly as the rest of the world. And everyone here is throwing their support behind the one man they think can help the world's problems, Obama. I'm Robin Kono in Johannesburg in South Africa. Now, the global slump has severely affected emerging market currencies, and the South African rand is no different. Take a look at this. This 10 rand note now only buys you one U.S. dollar. Just a few weeks ago, it was seven rand to the dollar. Now, this obviously has long-term implications for South Africa's growth, in particular, the widening trade deficit. South Africa imports more than it exports. But the weak rand is good news for tourists visiting this country, because, of course, the weak rand means that their trip to South Africa just got a whole lot more cheaper. I'm Anthony Mills in Beirut, where some people fear that if Barack Obama is elected president, he may make good on a pledge to engage Syria and Iran, thereby reversing political gains made when he's elected president. The U.S. and the United States have been working together for nearly a decade to help force Syria end an almost 30-year military occupation of Lebanon. They believe that John McCain, if elected president, would be more likely to safeguard Lebanon's independence. On the other hand, you have those Lebanese who regard as biased in favor of Israel the United States' approach to the Middle East in general. They welcome the approach of Barack Obama and his pledge to engage Syria and Iran, and their fear is that John McCain would fuel the fires of further confrontation. The U.S. and the United States have been working together for a long time to help the U.S. and Iran to make sure that Syria and Iran are safe. The U.S. and the United States have been working together for a long time to help the U.S. and Iran to make sure that Syria and Iran are safe. The U.S. and the United States have been working together for a long time to help the U.S. and Iran to make sure that Syria and Iran are safe. The U.S. and the United States have been working together for a long time to help the U.S. and Iran to make sure that Syria and Iran are safe. The U.S. and the United States have been working together for a long time to help the U.S. and Iran to make sure that Syria and Iran are safe. The U.S. and the United States have been working together for a long time to help the U.S. and Iran to make sure that Syria and Iran are safe. The U.S. and the United States have been working together for a long time to help the U.S. and Iran are safe. The U.S. and the United States have been working together for a long time to help the U.S. and Iran
Argentine farming sector suffering
CNN
Transcript
It's early and chilly at the Liniers Cattle Market in Buenos Aires, but the cows are already on the auction block. Each week, 40,000 cows make their way through this sprawling market, one of the biggest of its kind anywhere. Argentina is the planet's fourth largest beef exporter, world famous for its tasty steaks and chops. But since the global economic crisis hit, foreign demand for Argentine beef has dropped, and farmers are taking a 10 to 15 percent hit. The Russians stopped buying. In Europe, they stopped with the purchase, and, well, that thing hits us very hard. Here in the land of gauchos, beef is king. Argentines consume more than any other nation, 145 pounds per person annually. Argentina's steaks are so succulent because these cows are grass-fed on the plains of the Pampas, but many Argentine ranchers are now feeling pressure to plant their fields with more profitable crops. Wheat, corn, and soy fields have replaced many Argentine pastures. Recent record high prices for these commodities helped fuel five straight years of production. The Argentine ranchers are now in a position to be the best in the world. They're the best in the world. Argentina's knees in this time of global crisis is to really open up our export markets so we can keep Argentine farmers working, he says. Adding to the fray is the relatively new practice of raising Argentine cows in feedlots, as U.S. farmers do. Foodies contend this takes away the natural taste that makes Argentine beef so special. Farmers are conflicted between revenue and tradition. But right now, they say they'll take anything they can get. The contracts for 2009 are arriving and we can't get any money committed. Because which country right now can say what they'll be able to pay next year, this farmer asks. Regardless, Argentina remains an agricultural power player. But it's yet to be seen if this breadbasket nation's farming fortunes will grow or graze. Reporting for CNN, I'm Brian Burns in Buenos Aires. For more information, visit www.cab.org.
Asia markets dive
CNN
Transcript
Again, we saw last week, it was 9.6%, but almost as if that was a vacation compared to this. Yeah, we're going to have to dust off our history books and try to figure out what today means as far as records. At this point, what we know is that it is a very tough day. We're not imagining that there are many happy faces leaving the Tokyo Stock Exchange. And think about this. Tuesday, there was a rally. It's been virtually erased. What this shows us is how emotional this market is, how it does not have much stability, and how it can easily react to any sort of figures or any sort of governmental news. What analysts say widely happened in Japan today is that investors reacted to the U.S. retail sales figures from September that were just released overnight. Those figures were worse than expected, and that really does touch on a very sensitive spot here in Japan. The U.S. is a very sensitive market. The U.S. is a very sensitive market. The U.S. ! The U.S. is a very sensitive market. The U.S. is a very sensitive market.! The U.S. is a very sensitive market. The U.S. is a very sensitive market. The U.S. is a very sensitive market. The U.S. is a very sensitive market. The U.S. is a very sensitive market. The U.S. is a very sensitive market. The U.S. is a very sensitive market. The U.S. is a very sensitive market. The U.S. is a very sensitive market. The U.S. is a very sensitive market. The U.S. is a very sensitive market. The U.S. is a very sensitive market. The U.S. is a very sensitive market. The U.S. is a very sensitive market. The U.S. is a very sensitive market. The U.S. is a very sensitive market. The U.S. is a very sensitive market. The U.S. is a very sensitive market. The U.S. is a very sensitive market. The U.S. is a very sensitive market. The U.S. is a very sensitive market. The U.S. is a very sensitive market. The U.S. is a very sensitive market. The U.S. is a very sensitive market. The U.S. is a very sensitive market. The U.S. is a very sensitive market. The U.S. is a very sensitive market. The U.S. is a very sensitive market. The U.S. is a very sensitive market. The U.S. is a very sensitive market. The U.S. is a very sensitive market. The U.S. is a very sensitive market. The U.S. is a very sensitive market. The U.S. is a very sensitive market. The U.S. is a very sensitive market. The U.S. is a very sensitive market. The U.S. is a very sensitive market. The U.S. is a very sensitive market. The U.S. is a very sensitive market. The U.S. is a very sensitive market. The U
Financial juggling act
CNN
Transcript
When we see numbers like this, two trillion pounds, nearly four trillion dollars being dundied about, we're justified in asking where is the money coming from if we're all supposed to be broke? The answer is of course from governments because governments have the power to tax, to print and to ultimately borrow vast sums. The money circulates round the government's coffers. On the other side of the equation of course, the lonely banks looking a little threadbare with their assets. So the government has to step in and lend money to the banks. But now of course the amount of money is also starting to get a bit short in supply. So government, as the lender of last resort, the ultimate borrower calls in by lending out. From consumers, from pension funds, the government uses short term treasury bills, bonds, all sorts of money market operations to get everything moving once again. And this is how it should work from government to banks to consumers, back to banks to government. Round and round it goes. This is what will happen if the bailout actually works. Of course if it goes wrong, it's a failure. We end up with systemic collapse of the financial system and if that happens, there really is nothing else for it. We have to pick up the pieces and yes, lend to the government so that once again the whole thing starts up all over again.
Germany fears recession
CNN
Transcript
Generally, here in Germany, the fear of recession is very big. Of course, we know that Germany is the world's largest exporting nation, so if there's going to be a big global economic downturn, it's going to hit Germany especially hard, and people here are very much afraid of that. And that sort of mirrored in early morning trading today on the DAX this morning, where we're seeing a lot of the banks taking a hit again, but also some of the big industrials taking a hit as well. You're seeing Chrysler, Daimler, sorry, down very sharply. You're also seeing MAN down very sharply. So certainly there is a very, very large fear that this global economic financial crisis will also hit the real economy here in Germany. And the German leading economic think tanks issued data only two days ago saying that they believe Germany will either face a very steep economic downturn or maybe even a recession. They said that a recession could be very, very likely later today. We are expecting further economic data from the German government, and that is probably also going to be pretty bleak. So many people here in Germany do fear that this financial crisis will hit the German economy especially hard, this country being such a large exporting nation. Fred, just to ask you the question that right now, let's put it in layman's terms here, without any of the, you know, the pretty big economic crisis that's going on in Germany, what are the concerns that you have about the economic situation? Well, I think that the economic situation is going to be very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very, very
Hotels handling changing times
CNN
Transcript
Everything you need to set up a hotel is right here. From bathrooms to bedrooms, and all rooms in between. If hotels cut back spending, these suppliers will be the first to feel the effects. And so far they're noticing small changes. A lot of people are cutting down on the amount of amenities they're putting in. So instead of four bottles, they usually put just the soap and the shampoo and the lotion. So basically instead of offering a shampoo, conditioner, body wash and lotion, you might just offer the shampoo and the lotion. In simple terms, everyone in the food chain is affected. With 4,000 hotels under his control, Andy Coslett is well qualified to talk about what is happening in the industry. We seem to be quite resilient. The industry seems to be bucking the trends. Pretty much around the world, including here in the States. We've got occupancy levels which are down a bit, but rates per room is actually compensating for that. The object, wherever you are, is make sure you have an offering for every sector of the market. For us, we're well positioned because we have many more hotels in that mid-scale cluster than we do at the top. People are making choices to try and get their executives into the mid-scale. And we can manage that transfer for them. So we don't necessarily have to drop our rate. Other hotels are also doing well. Other hotel groups, like Marriott, describe conditions as unusually challenging. And that's something with which these owners in Chicago agree. Occupancy rates are down. And it looks like the rates are going down a little bit, too. Are you worried that, you know, as things, as we go into the next stage of this financial crisis, are you worried? To be honest, no, I'm not worried. I'm not. Because I know we have great products. We have great, excellent service. We have great hotels. And I'm not worried because I know that it's going to turn around. Fewer guests at lower rates with lower yields. It's a triple whammy. Surely it's impossible to face these facts and still give customers what they want. Customers know when they're being chiseled. And if you start cutting corners and turning the lights off early, people see that and they note it. They want to know that even if times are getting tougher, you're going to respect their needs and what they like. People are trying to move executives down in flight class. They're trying to make sure that they're flying in the right cabin, what cabin they're flying in on the planes, and probably in terms of the standard of hotel and the class of hotel that they're staying in. And I think people are making that choice. The choice they're not making is not to travel. So the business people are still traveling. And we can see that in our numbers and they're still coming through the front doors. Hotels are very different from airlines. While the planes are being hammered by oil prices, in the hotel world, there's a downturn. But business is still steady. CNN Los Angeles.
Stocks Fall on Retail Report
VOA News
Transcript
volatility returned to Wall Street after disappointing retail sales last month reminded investors that the United States is either in a recession or moving toward one despite a big rally earlier this week the Dow Jones Industrial Average closed nearly 8% lower on Wednesday some people are worried I'm obviously still concerned I think everyone is um it was promising this week that the stock market did have a surge um but I think it's still a very uncertain time just the unemployment and additional bad news still to come is in my opinion is going to make us stay in a recession for a good couple of years yet the government report shows overall spending fell to its lowest level in 3 years marking the third month in a row that retail sales have declined consumer spending is an important indicator because it accounts for 2third of economic activity in the United States we have taken Extraordinary Measures because these are extraordinary Circ circumstances President Bush tried once again to reassure Americans that the US economy will recover he said recent measures from the $700 billion emergency rescue plan to interest rate cuts and government stakes in private banks will need time to work these are Extraordinary Measures no question about it and uh but they're well thought out they are necessary and I'm confident in the long run this economy will come back despite assurances from Mr buch and world leaders European indexes from London to Frankfurt fell about 7% on Wednesday while Asian markets were mixed but Market volatility should eventually subside says Economist Fred bergston there'll be ups and downs in the markets day today but I think we're now headed in the right direction also heading in the right direction at least for consumers is a continuing drop in oil prices energy analyst Andrew leow says gasoline prices in the US have already fallen more than $1 a gallon since July I expect gasoline prices to fall to $3 a gallon by Thanksgiving and they could fall even further by the end of the year so the consumer is in for lower gas prices for at least the next 6 to n months some airlines are also planning to reduce fuel sech charges analysts say that could mean lower ticket prices for consumers as the holiday season approaches milar Sega vaa news
Politic protest invades Wall Street
Al Jazeera English
Transcript
[Music] presidential politics invading Wall Street tear down this wall before the American people do it independent candidate Ralph nater a self-described anti-corporate crusader whose name will be on the ballots in most States on November the 4th Nat wants the bush administration's $250 billion Bank bailout scrapped and replaced with a tax on share buying you know we pay sales tax in the stores to buy appliances Furniture clothing but here in wal Street they can buy billions of dollars of derivatives not pay any sales tax that's an easy that that deals with the fairness issue Ralph nater's anti-bank bailout protest took place in the shadow of America's first President George Washington and over the road from the New York Stock Exchange itself where it's also Dawning on investors that the bailout scheme may not be all that effective while US Treasury secretary Henry pson appeared to come close to apologizing for the financial crisis on Thursday he told a major US TV network he regrets past mistakes we're not proud of all the mistakes that were made by many different people different parties uh failures of our regulatory system failures of Market discipline that got us here at the closing bell at the New York Stock Exchange the main index the DOW Industrials closed up 4 and a half% after another choppy day poor industrial production data the worst for more than 30 years rattled investors a leading index of factory activity fell to an 18-year low fueling worries that even if recent moves to pump liquidity into financial markets begins to ease the credit crunch recessionary fears remain that one day after retail sales showed their biggest drop in 3 years on the streets around Wall Street people listening to the Ralph nater rally were extremely nervous about the future of their jobs and homes millions of foreclosures for one thing where people you know signed on to something that they thought they were going to be able to have and continue the American dream and then they lose their house because the interest rate varies or whatever these guys took some major risks they took some major gambles and now they're being bailed out by taxpayers dollars the government's willing to bail out corporations but they're not willing to bail out people I mean the people in this country have suffered for a long time back at Ralph nater's rally a giant inflatable Pig had turned up being used to illustrate how people's savings may be safer in a piggy bank rather than than a real one a joke of course but one that hit a little too close to home here at the center of capitalist America John terret Al jazer New York
Global economic solutions
CNN
Transcript
Very much so. I think they're very much on the right track. Reliquifying the money markets, getting short-term lending going again, getting the interbank market going, and recapitalizing the banks. Those are two interdependent things. Those are the main points, and I think they've delivered. They've delivered. In terms of the global financial architecture, people are talking about a new international monetary fund come World Bank set of architecture, a new financial architecture. Do you think we need that? Was the old architecture faulty? Well, I think it's fair to say that the IMF has not played very much of a role in trying to stop the denouement that we've seen over the past several months. So that we do, I think, need a new constitution, in a sense, for the IMF, a new determination, and probably new rules. I think it's fair to say that the IMF has not played a role in trying to stop the denouement that we've seen over the past several months. So that we do, I think, need a new constitution, a new regulation, and a new financial structure. a new financial structure. There is a feeling that we have a globalized world, and in a globalized world, you need globalized regulation. Do you agree? I think that globalization, cross-border financial integration, definitely calls out for more cross-border regulation. Better cross-border regulation, but in particular, coordinated cross-border regulation. We have situations in which you have banks that are regulated by their home countries that have huge activities abroad. And if there is a problem with those banks, they're going to have to go back to the banks that are regulated by their home And if there is a problem with those banks, they're going to have to go back to the banks that are regulated by their home countries. And if there is a problem with those banks, we don't know how that's going to be resolved. And we shouldn't be getting into problems with banks, of course. And how do you stop them? Well, you need to know what their activities are beyond their borders. We are clearly in a recession, or we'll soon find that we have been in a recession for a little while in the UK, in Spain, other European countries, and probably also the United States. How widespread and how long do you think that recession is likely to be? I think it's too early to... It's too early to call a recession, actually, maybe in the US, maybe in the UK, certainly very early to call it in the Euro area. We have a Euro area business cycle dating committee run by the Center for Economic Policy Research, and we are not going to move until we get a lot more data. The European economies, I think one has to remember this, that the European economies have typically shown a much smoother growth path over a long period of time than the US. If there's a big US recession, then we're going to have to move. And if there's a big US recession, then we're going to have to move. And if there's a big US recession, then we're going to have to move. And if there's a big US recession, then we're going to have to move. And if there's a big US recession, then we're going to have to move. And if there's a big US recession, then we're going to have to move. And if there's a big US recession, then we're going to have to move. And if there's a big US recession, US recession, then we're going to have to move. And if there's a big US recession, then we're going to have to move. And if there's a big US recession, then we're going to have to move. And if there's a big US recession, then we're going to have to move. And if there's then we're going to have to move. And if there's a big US recession, then we're going to have to move. And if there's a big US recession, then we're going to have to move. And if there's a big US recession, then we're going to have to move. And if there's a big US recession, then we're going to have to move. And if there's a big US recession, then we're going to have to move. And if there's a big US recession, then we're going to have to move.
Markets slow to respond
CNN
Transcript
Yn ystod y cyfnod, mae'r faterion yn cael eu cymryd yn dda. Mae'r faterion yn cael eu cymryd yn dda. Wel, rwy'n credu bod ddau peth yn digwydd yma. Yn gyntaf, mae Armageddon wedi cael ei gyflawni. Felly, rydym yn gweld cyfyngiad mewn y marchnadaethau credid lle mae arian yn cael ei gael gan fanylion a chyfrifoldebau cymorth. Felly, mewn ystod hwn, mae pethau wedi cyflawni'n well. Y peth dau sy'n digwydd yw bod y marchnadau yn gofyn i'r ffaith bod y cyfnod economaidd yn dal i ddod o hyd i'r ffaith, ac mae'n mynd i fod yn ddifrifol iawn. Felly, mae'r cyfnod oedd yn cael ei gyflawni, ond mae'n ddigon anodd i'w ddod. Dyna'r rheswm pam mae'r marchnadau yn dal i ddod yn ystod hwn. Rydych yn dweud bod y ffyrdd yn cyflawni'n gilydd, ond mae'r cyfrifoldebau, y cyfrifoldebau Lybor, y cyfrifoldebau ffymus, yr un ffordd rydyn ni i gyd yn dod yn ffamiliad â nhw o ran y cyfres hwn, sy'n ystod y cyfnod ar yr ydych yn gysylltu â'i gilydd, mae hynny'n dal i fod yn ddigon anodd, er bod pob cyfrifoldebau rydym wedi'u gweld, pob un o'r cyfnodau sy'n cymryd cynnwys cyfrifol y ffyrdd, pam nad ydynt yn gysylltu? Wel, yn gyntaf, mae yna lefelau o ymwybodol o ymwybodolrwydd risg, ymwybodolrwydd risg. Mae pobl wedi mynd drwy sylw sylweddol, ac mae'n mynd i gymryd amser i'w gael dros hynny, i ddechrau ymddiriedu â'i gilydd eto. Felly, nid yw'r ymdrech yn dda iawn i'r cyflwyniad. Y peth ail yw bod y bancau yn cael llawer o rhesymau da i fod yn ofalus am y ffordd y maen nhw'n ei ddod o hyd. Mae'r rhan fwyaf ohonynt yn cael y cyfrifoldebau sy'n ymwneud â'r cyflwyniad, y sbarch o'r holl fes hwn, yn seilio ar eu llythyr cyfrifol. Mae'r Swyddion wedi ceisio cymryd hynny heddiw. Ond mae hynny'n parhau i ddatrys arnynt. Yn ail, fel y dywedais, mae'r cyfnod economaidd ddim yn cael ei ddod o hyd. Felly mae llawer mwy o llosiau yn dod ar weithrediadau cyfrifol, cartrefi, cyllid auto, yn ogystal â ffwrddiaethau mae'r bancau yn eu gorfod. Felly, gofyn i'r bancau gyda'r newid newydd o gyfrifoldebau ble mae'r asetau maen nhw'n eu cael, i ddynnu â llosiau i ddod, a i wneud llennau mwy, yw gofyn am llawer o'r llennau cyflwyniadau sydd wedi'u gweld yn ystod hyn. Gadewch i ni ddod i'r ffwrdd llennau Cymru, oherwydd mae'n ddiddorol. Mae'n debyg iawn, mae'n hybried, mewn gwirionedd, o'r modelau Cymru a'r Ewropeaidd. Mae'n debyg eu bod wedi cyfuno'r dau ac wedi dod â'r hyn a ddod â nhw. Ie, mae'n ddiddorol bod cyfnod o ddod o hyd yn y sefydliad hon. Mae gennych chi ymdrin o ysbrydoliadau llennau cyfrifoldebau sy'n digwydd. Mae'r Swyddfeydd wedi gwarchod a ddysgu'n eithaf effeithiol. Felly, yr hyn sydd gennym ni yn Ysbrydoliadau Cymru yw cyfrifoldebau wedi cael eu cyfrifoldebau yn dda, yn rhan oherwydd eu bod yn cyfrifoldebau'n cynyddu cyfrifoldebau yn llawer yn gynharach yn y flwyddyn. Mae gennym ni syniad cyfrifoldebau pech, lle mae UBS wedi llwyddo'r holl beth ddiddorol sydd wedi bod yn llwyddo'i llennau cyfrifoldebau i mewn i ddynion gwahanol. Ac mae gennym ni'r hymddygiad gan Lywodraeth y Swyddfeydd o ddiogelu eu cyfrifoldebau. Felly mae hynny'n edrych fel bod nhw'n cyfrifoldebau'r rhan fwyaf o'r llefydd yn dda. Ac mae'n debyg bod adnoddau i'w dysgu yno ar lefelau fel Britannia, a ddod o hyd i'r blaen gyda cynllun cyfathrebu, ond wedi cael ychydig o ffynnau, yn enwedig y syniad yma o'r ffynnau.
Oil prices head south
CNN
Transcript
It's a slump. Oil hitting its lowest level for 15 months, Brent crude at just $68 a barrel. US light hovering at around $70 a barrel. It makes consumers happy as they see lower prices at the pump, but producers are concerned. It's a very political commodity that can be influenced by what goes on in the Middle East, what goes on with regards to terrorism, etc. And what you're seeing, I think, is that when you get to that sort of level, people start to worry about just how low can you let the oil price go. That's what's bothering OPEC. Just three months ago, prices were about double what they are now at a record $147 a barrel. With prices sliding, OPEC is trying to figure out what will happen next. Right now, the prices are sinking because of growing fears global demand is going to slip further as the world economy goes into recession. OPEC's just cut its estimates. OPEC is an ultimate for growth in demand for oil this year and in 2009 because of what it calls dramatically worsening financial market conditions and a sudden easing in demand from normally big consumer countries like the US. And last week, the International Energy Agency, which advises 28 nations, lowered its projection for global oil demand next year by 0.5%. So, will the price go lower still? Well, that's what OPEC's looking at now. So, if the OPEC basket is below $70, my guess is they want to sit around about $80. Saudi would be happy perhaps with $80, but others perhaps want to see it nearer $100. So, we are there already. They are very concerned. But let's keep this current low point in perspective. Oil prices have risen steadily over the last decade. In September 2000, oil hit a 10-year high, $38 a barrel, partly due to tensions in the Middle East. In summer 2006, it moved towards $80 a barrel. Now, that's around its current level. Oil crossed the $100 mark briefly on January 2nd. This year, the pinnacle, well, that's July 11th of this year. Oil surged to a new record, $147 a barrel, following an increase in tensions between the West and Iran. Predictions were that it would hit $200. Now, that's a far cry from where we're at today. Later this month, OPEC's due to hold a meeting to discuss the impact the financial crisis is having on oil prices. Some members have called for a cut in production to raise prices. Now, that'll be a blessing. For those producers, but not for you and me. Sasha Herriman, CNN, London.