Asia Markets Close Up, Reversing Trend
Associated Press
Transcript
it's good news from major stock markets in Asia Japan's Nik closed up 6.4% Tuesday the N weakened a bit encouraging traders to buy exporters like Toyota in South Korea the major index jumped more than 5 a half% for the day the biggest rate cut ever by that country's Central Bank is credited with a domestic investor buying spree a strong afternoon surge of 133% drove Hong Kong hang sang hire closing up more than 14% by the closing bell so there may be some hope that the mark the the markets Relentless decline will stop and the uh and and the Hong Kong market can stabilize at a certain level and even in Shanghai stocks turned positive in the afternoon the higher closes follow days of bad news and falling stocks many analysts say investors are bargain hunting as stocks hit their lowest points in years Judy boa the Associated Press
Stocks Surge As Investors Hunt for Bargains
Associated Press
Transcript
volatility strikes again but this time investors welcome the Wild Ride On Wall Street Markets skyrocketed in the last 30 minutes of trading Tuesday up nearly 900 points the way I look at it is there were an awful lot of bargain hunters who just thought that today was the day to push share prices higher the Dow Jones closed up 889 points at 9,65 while the S&P 500 Index Rose about 11% with the Dow closing up 92 points at 94 1 the NASDAQ also closed up 143 points at 1,649 as astounding as the last hour jump was many are scratching their heads wondering what happened one reason that they were looking to be fairly optimistic is ahead of tomorrow's FC meeting at which they expect the FED to cut interest rates by another 50 basis points economists aren't drawing too much out of today's market spurt they're more focused on the long term more sobering news came out Tuesday indicating consumer confidence idence is at an all-time low while home prices show their worst decline since August of last year home prices are declining S&P forecast that home prices probably won't stop declining until the first half of 2009 investors now turned their attention to tomorrow's interest rate cut they hope the fed's action will have a lasting impact lately since the FED started cutting it really hasn't done much it's been overshadowed by either the credit markets which are loosening up by the way or the recession and recession seems to be expanding whether it's a half point or quarter point cut that decision will be announced at the conclusion of the fed's two-day meeting in New York Bonnie goch the Associated Press
Your Money: Surviving the Bear Market
Associated Press
Transcript
will the present financial situation affect my uh my pension which is operated by New York State Pension Association well you ask the question that's on everyone's mind will my investments recover and first let's understand where we're at we're in a bare Market which is generally defined as a prolonged period where stock prices have declined 20% or more there have been 10 such periods since the 19 30s um and right now we're actually uh we've seen stocks decline 40% since last October so it is much more pronounced than the typical bare Market generally bare markets are able to recover their losses relatively quickly uh a number of them have recovered their value in as little as 2 years but when the losses have amounted to 30% or more it definitely takes longer uh the bare Market of the 70s took 7 and a half years to recover for instance you want to make sure that your portfolio has a proper asset allocation meaning that your stock exposure is appropriately limited and that you're not taking on too much risk
900 Point Wall Street Rally
CBS
Transcript
it was just another surreal day on wall street a day that started with a key measure of consumer confidence hitting an all-time low and ended with a nearly 900 point rally on the dow the index breaking back through 9 000. we've had some pretty bad news and the consumer confidence was pretty grim this morning so i'm amazed that it was able to be shaken off as well as it was the markets also shrugged off more bad housing numbers which revealed the average price of a home in the country's 10 biggest cities has fallen nearly 18 percent over the past year but wall street may have been looking forward to the federal reserve which is expected to cut interest rates tomorrow once again most of the move came in the final hour of trading and the sudden surge lifted blue chips like walmart which was up 11 percent boeing up 15 percent and gm up 14 when the closing bell rang the dow had its second biggest point gain ever but we have to see if it sticks you know we've had so much volatility in these markets the last few weeks that i think i mean we saw a 900 point move up the other day and we lost that all again so let's let's see what happens i'm not going to put too much stock in today and that's a widespread sentiment on the street in other words beware it may only be a bear market bounce the rally added a trillion dollars in value to the wilshere 5000 index but it's still down 37 percent for the year the climb back is going to be a long one so this was a really good day but is it a turnaround or are you saying anthony basically they're going to be plenty of ups and downs in our future well i think that's true but the suspicious part of this rally is that there was no major headline really to propel it now if this carries over and we see a few days of sustained gains that would suggest the buyers are back and the rally is for real that said we don't want to diminish a 10 gain on the dow nothing to sneeze at all right absolutely anthony thank you so much
Economic Purgatory
CBS
Transcript
well here it is the end of the line if the Federal Reserve cuts the interest rate down to 1% that's it we've done all we could I'm so sorry Miss Liberty your country's economy is dead okay so it's not that bad most of the stuff we've already done just needs some time to kick in the FED started buying commercial paper yesterday the banks are still getting their loans and the rest of that bailout money is floating around [Music] [Applause] somewhere meanwhile the regular Joe's are moving from Main Street to foreclosure drive so the question is will we survive long enough to see the end of this crisis I know I know I'm being all doom and gloomy but people are hurting here September foreclosures were up 21% from last year Corporate America is hemorrhaging employees and consumer confidence is at an all-time low so no jobs equals no money to pay the mortgage and a big chunk of those people couldn't pay off their loans when they had jobs I'd say we're drowning in Creek yes I get it people are getting laid off because companies are having a hard time if the government can help the top maybe the top might be able to help the middle and so on but that strategy has always been tricky Coca-Cola and MC are dependent on people to buy their stuff if Americans don't have the money to buy their propia MC is isn't going to have enough to pay its workers it's one tough cycle bcle bicc but help could be on the way there's been some Buzz lately about the government tackling the mortgage crisis now that they're done rescuing the top maybe they figure it's time to give Jo the plumber some help you betcha the FDIC has a program for indac that's working pretty well oh and that little unemployment problem hey maybe casari could hire a few extra hands to help spread that bailout wealth around hey what it's an idea so the US was first to arrive at the crisis party maybe we'll be the first to leave but while Americans are waiting for that fashionable exit things are still uncertain call me impatient call me stubborn but we all know how quickly foreclosure Drive could turn into homeless shelter Road
Dow surges 900 on Fed rate-cut hopes; consumer confidence 40-year low
CBS
Transcript
a major rally lifted the stock market in the final hour of trading the Federal Reserve will announce its decision on interest rates Wednesday and Wall Street is banking on a half-point drop the anticipation sent stocks through the roof the Dow Jones Industrial Average gained nearly 900 points its second biggest Point gain ever the NASDAQ was up more than 140 the markets are hoping lower rates will boost the economy and make Americans feel better about the Outlook especially since consumer confidence dropped the month to the lowest level in more than 40 years that doesn't bode well for spending which is the leading driver for economic growth If the Fed does cut rates the question is whether it will bring a spark to the housing market home values dropped by another 16% in August according to a closely watched housing index that's the biggest decline on record and another struggling industry could be next in line for a government bailout the White House says the big three automakers might be eligible for a piece of the $700 billion rescue fund GM has already asked for 10 billion to help fund a future merger with Chrysler at the New York Stock Exchange I'm Alexis christopherus
The Future Of Wall Street
CBS
Transcript
This morning, some good news. Finally, Dow futures are up about 300 points. Most stock markets in Asia closed higher. Tokyo's Nikk index gained about 6%. Stocks in Hong Kong jumped over 14%. That's the biggest percentage gain there in 11 years. Yesterday, the Dow lost another 200 points, closing at its lowest level in 5 and 1/2 years. And we are joined now by Sanford Wild, former chairman and CEO of Croup to talk about the economy. Sandy, good morning. Morning, Harry. Is this roller coaster, is this going to be over anytime soon? Because the the hanging, which we were just talking about, it lost its greatest percentage points the day on Monday. It went up to its greatest percentage points today. When does this end? I think we're going through obviously a very volatile period where people are being forced out of the markets because of margin calls. Hedge fund liquidations are creating even more selling pressure. But I think that we've seen something unique happen and that is a Democratic Congress agreeing with a Republican president that has like eight days more to be in office to come together on a plan that I think makes sense. And I would think a year from now we'll see things being a lot better. What what about things like we've seen this uh contraction in all of these businesses especially over the last year it's only starting to steamroller General Motors Chrysler all these the big three auto companies in serious trouble unemployment on the rise. How bad does it get before it gets better? Well, I think we've set in motion a whole series of events that is going to make the economy really, really bad over the short term. I think we're going to see the biggest drop that we've seen in GDP. I think we're going to see unemployment go up to about 9%. But I think that our government in connection with the governments around the world and all over the world acting in concert will put in place the opening up of the markets again. And I think we'll see things uh looking better uh a year after the election. a year after the election, this whole thing with the bailout, hundreds of billions of dollars going into banks, going into Wall Street, did the Federal Reserve and did the government get there late? And did they do this too hastily? I think we got there late, but I don't think by the time we did get to do it, we didn't have much time. So, I think we had to act fast. I think by injecting money into the banking system, those banks can leverage that 10 times that money so that the government can get a lot more bang for the buck. I think that they're going to get their money back. I think the taxpayers are going to be fine in the end in the end. But in the short term on Main Street, people are sitting there. Where does it when is the relief going to come? That all this money has showered into Wall Street. When does it start raining on Main Street? Well, we've seen like 10 or 11 trillion dollars disappear from the markets, which has affected pension funds. It's affected 401ks. It's affected all people, but I think we have the market's now gone down that much. I think we've we're in the process of building a base. And I think that they'll see these things beginning to have a good effect on the economy in in six or eight months. And this whole bailout has made a lot of people crazy. Not the least of which is they're reading now. some of these folks on Wall Street are still going to collect their half billion or three million or million dollar bonuses. I don't think very many not very no I I think you're seeing and I think the leadership of the comp the banks and the Wall Street firms should really they don't deserve bonuses this year. This was not a good year for shareholders. They believe in pay for performance and performance wasn't there and they should act accordingly and they should act accordingly. Sandy, so much thanks so much for being with us this morning. We really appreciate it. My pleasure. Thank you. [Music]
Oil Prices Drop to 17-Month Low
VOA News
Transcript
oil prices fell to less than 62 dollars a barrel on monday as investors continued to worry about a global economic slowdown u.s light crude hit a 17-month low and london's brent crude fell below sixty dollars a barrel prices continued their slide despite a pledge by members of opec to cut production by more than five percent or 1.5 million barrels a day opec president shakhib says the group will consider further production cuts by the end of the year if demand does not pick up halil said at an emergency opec meeting on friday there is an oversupply of oil if your buyers are not going to be able to get letter of credits from your the banks they're not going to be able to to even buy the crude oil prices have fallen by more than half since hitting a record high of more than 147 dollars a barrel in july analysts say investors fear a global economic recession will further slash demand for energy anthony grisanti is president of grz energy in new york so really it's all about demand at this point and without any demand i could see oil washing out back down to the 50 level where we started this from two years ago in another sign that the global financial crisis is spreading to oil rich states kuwait suspended trading in one of the country's largest financial institutions gulf bank on sunday the bank has been hit with losses from risky financial instruments called derivatives later hong fincher voa news
Stocks Tumble on Global Recession Fears
VOA News
Transcript
in markets around the world stock prices fell like dominoes in Japan the Nik index fell to a 5 and 1 half year low down 10% after Electronics giant Sony cut its profit forecast in half in South Korea The Benchmark index dropped below 1,000 points for the first time in 3 years and it didn't take long for European markets to follow suit London's footsie index plunged nearly 10% Friday after a new report showed the British economy shrank for the first time since 1992 treasury secretary Alistair darling was quick to respond I'm determined we'll do everything we can to support the economy and also to ensure that we have sound public finances so yes it's going to be difficult yes it's going to be tough but we will get through it German and French markets reported similar drops while Russian stock exchanges suspended trading altogether by the time fears of a global recession reached the United States da Futures had already fallen more than 500 points triggering a temporary freeze on trades standard and por chief analyst Sam stovel explains well the there are limits on the Futures as well as limits on actual trading uh they're called circuit breakers mainly to in a sense stop investors from becoming Their Own Worst Enemy by engaging in a a cascading Panic around the world the common denominator Was Fear oil fell sharply trading near $63 a barrel despite the decision by OPEC members to cut oil production next month by 1.5 million barrels per day energy Trader Anthony granti says Global demand for oil is down sharply the reason why we're going down is demand is completely dried up and not only in the US but really all over the world I mean you have lower economic growth in China lower economic growth in India certainly no growth in this country uh and in the European Union unless demand picks up some analysts predict oil prices could sink further to $50 a barrel sville says the signs are clear we certainly believe that we are already in recession here in the United States and think that the recession will last uh until May of 2009 but there are signs of Hope us home resales Rose more than 5% last month as falling prices attracted more buyers economists say severe problems in the US housing market led to the big losses that sparked the global financial crisis M arga vaa news
Banks Get Money, White House Says Start Lending
Associated Press
Transcript
the federal government Tuesday began pumping billions of dollars into US Banks Treasury Department under secretary Tony Ryan says this comes after a weekend of deal making we've signed fin final agreements with the initial nine major financial institutions that hold 50% of all us deposits and over this past weekend we directed our custodian to deliver the capital to these institutions and that process is starting today the government will purchase $125 billion in US Bank stocks over the coming days it's an investment not an expenditure institutions such as City group and Wells Fargo are each getting $25 billion other firms like Goldman Sachs and Merill Lynch will each get 10 billion do the idea is to get credit flowing again with hopes of stabilizing the economy and fighting off a protracted recession this money comes from the $700 billion economic bailout package passed by Congress and signed by President Bush earlier this month this program is aimed at healthy Banks and provides attractive terms to encourage lending according to the treasury another injection of capital to a second round of banks is also in the works more than $35 billion will be divided up among Regional Banks like PNC Capital One and Northern Trust as the country's biggest banks become partially nationalized the government is hoping they will have no hesitation in lending that money back into the economy an essential step for the plan to work standard and pors analysts Sam stoval says it's not a sure thing I don't really think there's any way that you can really guarantee that these banks will be lending this money uh certainly they are going to use the money to shore up their own balance sheets and some of the money uh will be used for Lending this so according to the CEOs of many of the banks that were recently interviewed in the financial media uh but obviously the government itself will be keeping tabs on the money that is Lent to these Banks over the next several weeks the treasury is expected to use billions more of the bailout money to start buying up bad subprime mortgage loans from banks in a bid to Usher the return of a stable economy Ted shaffrey the Associated Press New York
A Lifetime On Wall Street
CBS
Transcript
with his newspaper tucked under his arm Seth glicken housee reported for work today just as he has for nearly 34 of a century good morning all at 94 he's still the chief investment officer of glicken house and Company I'm glad we're having an up day for a change and while this financial crisis is often compared to the depression I started my first company in 1938 clickhouse actually worked on Wall Street during the Depression the pessimism was very thick at that point people were nervous as hell he graduated Harvard with honors in economics in 1934 but what really brought the depression home to him was when his father an insurance dealer had to lay off one of his two employees and at that point my father for the first time in my life that I ever seen started cry he was so upset what's the secret to surviving a recession like this well chosen stocks gck house has made a fortune by choosing well as business week reported in 1959 after making an $8 million killing he quit the street to go to medical school so the medical thing just didn't work out it didn't work out and I came back to Wall Street and started this again in the decade after the 1987 crash his company was the top ranked money manager in the country with gains of more than 500% now he sees opportunity again I'm still not comfortable with all the volatility right but do I feel that there's going to be great proos money made in the years and how at 94 he has no intention of retiring I love the challenge and I think that's what's kept me alive and has kept me at the point where I'm now approaching middle age after a Lifetime on the street Seth glicken housee has learned it never pays to panic being bullish is really called for at this time Anthony Mason CBS News New York
The Oldest Stockbroker
CBS
Transcript
how would you describe the atmosphere on Wall Street in the depression I frankly well let me give you the picture they really didn't believe that a Great Depression was going to come they had no very little inkling and many of the professional traders and the people in Wall Street felt the 1929 break was over it was very severe and they got trapped in the break that took place in 1331 1931 that's that's what hurt the Wall Streeters right they didn't anticipate such a great recession how depression and frankly neither did Herbert Hoover or Andrew Mellon who did very little to stimulate the economy one day my dad came home he Adams Insurance Brokers business and he told me he had a fire one of his two or three employees and I said well he'll get a job somewhere else Modi somewhat naively and know this made an older man who isn't very capable and it's going to be very tough for him because there's such impending and actual unemployment and at that point my father for the first time in my life everything started crying he was so upset that he had to fire that man but he just didn't have the income to keep paying to employees and they had to keep one that is that how is that how you really understood what was going on so then I got an inkling does what we're going through now remind you in anyway of them the contrast is what then Herbert Hoover and Andrew Mellon did very little whereas here the Republicans jumped in and have done a brilliant job of trying to cope with things and shore up the economy taking care of the credit squeeze of the banks and here you have Pelosi who's proposing a work program to get after the end of structure right infrastructure yes question you would you've been doing this a long time you've seen a lot of recessions and you've seen a lot of bull markets and bear markets do you still need this you need to stress at your age oh that's a wonderful question the thing that keeps me young is coming down here and managing money for my clients and for the firm and I love the challenge and I love the stress involved and I think that's what's kept me alive and kept me at the point where I'm now approaching middle-age so with at the age of 94 that's so when the Dow goes down 700 points in a day you don't go that's it I'm out of here no I certainly don't say that's it I'm out of here it has an impact on me I won't say that I'm as cheerful as I would be if it were up 700 boy