Due to a technical problem on Wednesday Jan
16, we are upgrading the news management system by a Canadian
software company, which will be
completed in coming days.
It has taken longer than
anticipated. That is one of the drawbacks of outsourcing. C'est
la vie - even Google News updating falls behind at times!
News Headlines to Jan 16 2008
Today's News Links
Click for Monday's stories and links from Jan 17 2008
Markets News Monday:
Stocks fall sharply in Europe and Asia-Pacific on US recession fears
On Friday in New York, worries about consumer spending and the
financial health of bond insurers overshadowed announcements in
Washington on an economic stimulus plan.
The top indexes incurred a fourth day of losses with the Dow Jones Industrial Average off 59.91 points, or 0.5%,
at 12099.30 despite positive earnings news from IBM and General
Reports said that bond insurer MBIA may have to assume some of the risks it had previously
offloaded onto a company called Channel Reinsurance, because two other companies said
their stakes in ChannelRe are now worthless. MBIA shares dropped 7.3%
on Friday after a 51% plunge on Thursday.
The Standard &
Poor's 500 fell 0.6%, or 8.06 points, to 1325.19. The Nasdaq Composite
Index lost 0.3%, or 6.88 points, at 2340.02.
The three major indexes lost least 4% with the S&P 500 losing 5.4%, its worst weekly loss
since July 2002.
The Wall Street Journal says
today that US has suffered recessions only twice in the past quarter
century and both were short and mild. There are good reasons to fear
that the looming recession, if it arrives, could be worse.
Housing is in the midst of its worst downturn since at least
the 1970s. That has led to a meltdown in the mortgage market; with financial
firms struggling to make sense of their losses, they are making it harder for
even credit-worthy borrowers to get loans. The combination of heavy debt loads,
still-high energy and food prices and a weakening job market has households
tightening their belts. Consumer spending, long a bulwark of the economy, is
The Journal says that sets the stage for something more severe
than the 2001 recession, which spanned just eight months, says Merrill Lynch
economist David Rosenberg. During that slump, in which gross domestic product
declined a slight 0.4%, quarterly consumer spending slowed but never contracted
-- the first time that happened during a recession since the 1940s.
The eight-month recession that ended in early 1991, when a
housing downturn and credit problems sapped the economy, is a better guide. From
its peak to its trough, GDP shrank 1.3%, and consumer spending slipped.
Dr. Peter Morici -
CTV (Canadian TV)
Interview on Stimulus Package: The Stimulus Package, Alone, Won't Do
Dr. Morici's remarks follows President Bush's comments. It is about
2:30 into the segments.
NPR (National Public Radio)
Interview on Gold Prices
stocks fell sharply Monday on continuing worries about the US economy.
Japan's benchmark index
fell almost 4% while the Hong Kong sunk 5.5%.
Japan's Nikkei 225 fell 3.86% to
close at 13325.94. Hong Kong's Hang Seng Index finished 5.5% lower at 23818.86.
In China, the
Shanghai Composite index lost 5.1%
The Australian share market fell for an 11th consecutive day,
the longest losing streak in 26 years, heavily impacted by plunges in
financial stocks. The S&P/ASX 200 index closed down 2.9%, or 166.9
points, at 5580.4. The index has dropped 18.6% from its record high 6851.5 in
European stocks have fallen shraply Monday with the Dow Jones 600
down over 2% the measure has fallen 20% and the Germany's DAX
off over 3%. In
Dublin, the ISEQ has also fallen more than 3%.
National benchmarks - Europe
Irish Share Prices
AIB Daily Report
Bank of Ireland Daily Report
The euro is trading at
$1.4501 and at £0.7435.
The euro fell after
Dutch Central Bank Governor and ECB Governing Council member, said
that Eurozone economic growth had fallen faster than
policymakers had expected.
currency updates, check the right-hand
column of the
Finfacts home page.
Crude oil for February
delivery is trading on the
Mercantile Exchange (Nymex)
at $89.50 per barrel - $1.07, or 1.2% from Friday. In London, Brent is
trading on the
International Commodities Exchange at $88.59 down 90 cents.
The oil price has been
under pressure because of recession fears.
The spot price of gold
is at $872.60 per ounce, down $7.90 since Friday.