Posts Tagged ‘financial’
In its latest world economic outlook report, the International Monetary Fund (IMF) says that if the financial crisis continues, the economic downturn in many countries will worsen. The report comes before IMF-World Bank meeting in the US this week.
The signs of a marked slowdown in growth are quite obvious in the global economy and there is a dire need to develop a decisive policy to restore financial confidence.
According to the report, the turmoil that is confined to the financial sector now is likely to spread. It estimates that the financial losses from the credit crisis will be around $1.4 trillion while in an earlier estimate the amount of financial losses was around $1 trillion. Read the rest of this entry
President George W Bush says that the rescue plan will be passed by the legislators soon, as they will surely rise to the occasion in the current financial crisis. However, he admits that there is disagreement because the proposal is quite big.
According to Senate Majority Leader Harry Reid, who is a Democrat, “lawmakers will stay in session until a deal is reached.”
However, rebel Republicans are still unhappy on buying mortgage-backed assets from US banks.
Some positive signs were seen later on Friday Nancy Pelosi said that some progress was made on the bill. Read the rest of this entry
General Electric (GE) has decreased its earning forecasts considering recent unrest in the financial markets. Now the 3rdQ profits are expected 43-48 cents per share while they were 50-54 per share in a previous forecast.
The company also decreases its earning forecast for the full-year to $19.5bn-$21bn that were $22bn-$23bn in the earlier prediction.
According to the company, many other steps are also being taken to boost its fund and it also includes suspension of its funds.
It has also been stated that the company may leave its dividend at $1.24 per share till the end of next year. It is happening first time that the company has not raised the payout since 1970. Read the rest of this entry
US investment guru Warren Buffett owned company Berkshire Hathaway buys $5bn worth shares of Goldman Sachs.
MR Buffet, who is considered the world’s most famous investor, believes that Goldman Sachs is an exceptional institution.
Like many other major US financial institutions that are in serious financial crisis these days Goldman Sachs had to change its status from an investment bank this week. Gold Sachs stated that the deal would help to strengthen its finances.
Berkshire Hathaway will buy $ 5bn worth preferred stock by bearing a 10% annual interest rate. Read the rest of this entry
To tackle the worst financial crisis of the decades, US Treasury Secretary Henry Paulson urges Congress to quickly pass a $700bn package.
According to the plan a fund will be set up to buy back much of the bad debt that financial institutions and banks around the world hold.
In an Interview with US television, Paulson called that financial market turmoil a “humbling experience”. He also urges other countries to have similar plans to build up confidence again.
“I am not going to bet against the long-term fundamentals of this country and its people.” Read the rest of this entry
