BP oil drilling rig in the Gulf of Mexico

Bloomberg News commented today that equities slid worldwide after valuations for the pan-European  Dow Jones Stoxx 600 and the MSCI Asia Pacific Index reached the most expensive levels in six years relative to earnings.

The Shanghai Composite closed down 6.7% Monday.

Fed makes $14bn profit.

The FT reports today that the Federal Reserve has made a $14bn profit on loan programmes that have provided hundreds of billions of dollars in liquidity to the financial system since the start of the crisis two years ago, according to Fed officials.

The internal estimate is based on the difference between the fees and interest on the lending facilities and the interest the Fed would have earned had it invested the funds in three-month Treasury bills.

The central bank earned about $19bn in income from charging interest and fees to financial institutions and investors that tapped the new facilities to obtain much-needed funds during the turmoil. The interest the Fed would have earned by investing the same amount in T-bills was an estimated $5bn, leaving a $14bn gain since August 2007.

Richard Egan and EMC

The Boston Globe reports that Richard J. Egan, the billionaire entrepreneur who co-founded data storage provider EMC Corp. and served as US ambassador to Ireland, died of a self-inflicted gunshot wound Friday, according to a law enforcement officer with knowledge of the investigation.

Egan, 73, who died in his Boston home, was diagnosed with stage IV lung cancer in May, according to a statement from his family. He also had diabetes, emphysema, and high blood pressure. Relatives weren't available for comment yesterday.

The Globe says, one of the leading high-tech entrepreneurs in Massachusetts and nationally, Egan kept a low public profile. EMC, the Hopkinton company he cofounded in 1979, has grown to a technology giant with about 40,000 employees worldwide. It was the highest-performing stock on the New York Stock Exchange during the 1990s tech boom.

After he retired as EMC's chairman in 2001, Egan, long a prominent Republican fund-raiser, served as American ambassador to Ireland for 15 months under President George W. Bush.

EMC and its offshoot VMware have plants near Ballincollig, west of Cork City.

Japan's desire for change:

Disney to acquire Marvel comics

Disney announced today that it is to acquire Marvel Entertainment in a $4 billion deal.

Disney will acquire 5,000 Marvel characters, including such popular figures such as "Spider-Man," "Iron Man" and the "X-Men."

Disney and Marvel said Marvel stockholders will receive a total of $30 per share in cash plus approximately 0.745 Disney shares for each Marvel share they own.

Chicago area manufacturing activity

Manufacturing activity in the Chicago area rose more than forecast in August.

The Institute for Supply Management-Chicago said today its business barometer increased to 50, the highest level since September, from 43.4 in July. A reading of 50 is the dividing line between contraction and expansion.

US markets

US market measures fell Monday after the wobble in Beijing.

The Dow Jones Industrial Average has fallen 89 points, or 0.93%  at 9,455.

The Nasdaq is off 1.22% and the S&P 500 has dipped 1.15%.

Live US Indices

In Europe, the Dow Jones Stoxx 600 fell 0.7% Monday.

Most Western European markets fell.

London was closed for a public holiday.

Deflation slows as Eurozone annual inflation rises to -0.2% in August 2009

Minister for Finance Brian Lenihan said today that the success of the planned 'bad bank" NAMA  - -the National Asset Management Agency - - is not based on any assumption of a return to the recent "bubble" prices for property. He said the Government may take majority stakes in Irish banks covered by the Government guarantee scheme if they need additional capital after loans are transferred to NAMA. He also said there will be a “risk-sharing mechanism” with the banks.

Lenihan says NAMA valuation will not be based on "bubble" prices; “risk-sharing mechanism” with the banks planned

Average Irish national house prices dropped 12.5% in year to July; down 23% from February 2007 peak but likely further to fall

Central Bank says Irish residential mortgage lending outstanding fell in July for the fourth straight month; Total private sector credit dipped again

In Dublin, the ISEQ is off 0.61%.

AIB is down 5%; BoI 8%; Elan has skid almost 5%.

INM has risen 4%.

European Benchmarks

Irish Share Prices

Euribor Rates

Oil

On the New York Mercantile Exchange, oil for October delivery is trading at $69.62 down $3.12 from Friday's close. In London, Brent crude  for October delivery is trading at $69.13 a barrel.

The fall in the Shanghai Composite Index earlier Monday, by almost 7%, has stoked fears about the fragility of the recovery of China's economy.

Currencies 

The euro is trading at $1.4343 and at £0.8807.

For live currency updates, check the right-hand column of the Finfacts home page.  The dollar traded at a record low $1.6038 per euro on July 15, 2008.