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Markets News Afternoon: European Systemic Risk Board hold first meeting; US initial weekly jobless claims dip 37,000; Morgan Stanley reports 35% rise in Q4 2010 earnings
By Finfacts Team
Jan 20, 2011 - 2:59 PM
Taoiseach Brian Cowen announcing the date for the General Election in the Dáil today: March 11, 2011.
Irish General Election: Taoiseach Brian Cowen today announced that a general election
will be held on March 11th.
In a statement to the Dáil this afternoon, the
Taoiseach reassigned the portfolios left vacant by the resignation of six
ministers in recent days as it was clear that he could not command majorities to
appoint new ministers.
Minster for Enterprise, Trade and Innovation Batt
O’Keeffe today resigned and it appears that he will not seek reelection to the
Dáil, while Mary Harney, Dermot Ahern, Noel Dempsey and Tony Killeen gave their
letters of resignation to the Taoiseach late last night.
Micheál Martin, the former foreign minister,
resigned on Tuesday night following his failed challenge to Cowen's leadership
of Fianna Fáil.
European Systemic Risk Board: The European Systemic Risk Board, Europe's body to foresee
systemic risk that would avoid a repeat of the financial crisis, held its first
meeting in Frankfurt today.
The meeting led to a number of decisions on the
set-up and functioning of the Board:
The ESRB rules of procedure were
established. They will be made available in the next days on the ESRB
website and will be published in the Official Journal of the European Union
in the course of February.
Marek Belka, Governor of the Narodowy Bank
Polski; Mario Draghi, Governor of the Banca d’Italia; Athanasios Orphanides,
Governor of the Central Bank of Cyprus; Axel Weber, President of the
Deutsche Bundesbank; were elected members of the Steering Committee for
Stefan Ingves, Governor of the Sveriges
Riksbank was elected Chair of the Advisory Technical Committee for three
Mandates for the Advisory Scientific
Committee and the Advisory Technical Committee were adopted and will be
published on the ESRB website.
The General Board decided to approve the
procedures to select the members of the Advisory Scientific Committee and to
publish a call for expressions of interest for membership of the Committee.
The call will be posted on the ESRB website in the next days and will be
published in the Official Journal of the European Union in early February.
Candidates will have three weeks to apply after publication in the Official
The ESRB is an independent EU body responsible
for the macro-prudential oversight of the financial system within the Union. The
ESRB is located in Frankfurt and its secretariat is provided by the European
The chair of the ESRB is the President of the
European Central Bank, Jean-Claude Trichet. The first Vice-Chair of the
ESRB is Mervyn King, Governor of the Bank of England. He was elected by
the members of the General Council of the ECB on December 16, 2010 for five
years. The second Vice-Chair of the ESRB will be the Chair of the Joint
Committee of the European Supervisory Authorities.
If the ESRB is not satisfied that action is not
taken in response to warnings, it has the option of going public with its fears
and leaving the rest to the persuasive powers of financial markets.
US initial jobless claims fell more than expected last week and showed their biggest decline since February, with CNBC's Steve Liesman:
US Weekly Jobless Claims:
In the week ending Jan. 15th, the seasonally adjusted initial jobless benefit
claims was 404,000, a decrease of 37,000 from the previous week's revised figure
of 441,000. The 4-week moving average was 411,750, a decrease of 4,000 from the
previous week's revised average of 415,750.
The Department of Labour said the number
for seasonally adjusted insured unemployment during the week ending Jan. 8 was
3,861,000, a decrease of 26,000 from the preceding week's revised level of
3,887,000. The 4-week moving average was 4,006,250, a decrease of 52,250 from
the preceding week's revised average of 4,058,500.
US Existing-home sales rose sharply in
December, when sales increased for the fifth time in the past six months,
according to the National Association of Realtors.
Existing-home sales, which are completed transactions that include
single-family, townhomes, condominiums and co-ops, rose 12.3% to a seasonally
adjusted annual rate of 5.28m in December from an upwardly revised 4.70m in
November, but remain 2.9% below the 5.44m pace in December 2009.
Lawrence Yun, NAR chief economist, said sales are on an uptrend. “December
was a good finish to 2010, when sales fluctuate more than normal. The pattern
over the past six months is clearly showing a recovery,” he said. “The
December pace is near the volume we’re expecting for 2011, so the market is
getting much closer to an adequate, sustainable level. The recovery will likely
continue as job growth gains momentum and rising rents encourage more renters
into ownership while exceptional affordability conditions remain.”
The national median existing-home price for all housing types was $168,800 in
December, which is 1.0% below December 2009. Distressed/foreclosure/bank
forced sales rose to a 36% market share in December from 33% in November, and
32% in December 2009.
“The modest rise in distressed sales, which typically are discounted 10 to 15
percent relative to traditional homes, dampened the median price in December,
but the flat price trend continues,” Yun said.
"When we look at businesses overall, we see them holding up relatively well," Charlotte Hogg, MD for UK & Ireland at Experian told CNBC. A potential rate hike as early as May could cause a rise in delinquency rates, she added:
US investment bank, Morgan Stanley, today reported a 35% increase in
fourth-quarter earnings on record revenue from its brokerage, the world’s
biggest. Fixed-income trading revenue was the lowest since the fourth quarter of
Net income climbed to $836m, or 41 cents a share, from $617m, or 29 cents, a
year earlier. Earnings from continuing operations, excluding a 17-cent gain on
the sale of a stake in China International Capital Corp. and a tax gain of about
6 cents, were 20 cents a share.
In New York Thursday, the
Dow is down 60 points or 0.51% to 11,765.
S&P 500 is down 0.58% and the Nasdaq is off 0.83%.
pan-European Dow Jones Stoxx 600 has dipped 0.89% Thursday.
Dublin the ISEQ declined 1.16%.
which accounts for about 27% of the Dublin market's capitalisation, is up 1.26%;
Elan is off 3.19%; BoI is down 1.96%; Ryanair fell 6.59% and Aer Lingus dipped
charge for printing a boarding pass has encountered turbulence and declared
illegal by a Spanish judge. Dan Miró, a lawyer who specialises in fighting
airlines on behalf of passengers, brought the case against Ryanair after he was
charged €40 for a boarding pass at Girona airport near Barcelona last year.