RTM Chow - Thursday August 9 [Archive]

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Realist

08-09-2007, 08:39 AM

Good Morning GIM,

We are starting off red this morning. Apparently a bank in europe is having problems with its subprime investments . . . . Surprise . . . . Surprise.

The futures are down here. Gold and Silver are down as well . . . .

Realist

08-09-2007, 08:40 AM

The Dollar is up today (so far)

Realist

08-09-2007, 08:42 AM

They were selling the 30 Year Bond yesterday. And when the price goes down, the yield goes up. We are now back over 5% on the 30 Year (5.02% to be more precise) . . .

Realist

08-09-2007, 08:44 AM

Gold Falls Most in Two Weeks as Dollar Gains; Silver Also Drops

By Danielle Rossingh

Aug. 9 (Bloomberg) -- Gold fell the most in two weeks in London as oil prices dropped and the dollar strengthened against the euro, diminishing the metal's appeal as an alternative investment and inflation hedge. Silver also declined.

Crude oil dropped for a second day after a U.S. Energy Department report yesterday showed signs that gasoline demand may have peaked for the year. Gold and oil tend to trade in tandem, as higher energy prices boost the metal's appeal as a hedge against inflation.

Bullion surged to a 26-year high of $730.40 in May last year as energy prices soared. The metal is also viewed by some investors as a store of value. It gained 23 percent last year as the dollar weakened 11 percent against the euro.

``Oil is down, and the dollar has rallied a bit from yesterday,'' James Moore, an analyst with London-based TheBullionDesk.com, said today by telephone. ``It's the summer months, so there also isn't a lot of physical buying going on. That will return in September and will provide a solid base for gold to go higher.''

Gold for immediate delivery in London fell as much as $7.30, or 1.1 percent, to $667.50 an ounce. A close at that price would be the biggest one-day drop since July 26. It traded at $668.70 as of 11:26 a.m. local time. Silver declined 12 cents, or 0.9 percent, to $12.995 an ounce.

A stronger dollar ``is probably what generated some of the selling,'' Frederic Panizzutti, senior vice president at MKS Finance, one of Switzerland's four precious-metals refiners, said by telephone from Geneva today.

`Erratic Trading'

``There is a general lack of volume due to the holidays'' in Europe and the U.S., Panizzutti said. ``It's difficult to find liquidity in the market. Trading will remain erratic.''

Bullion also fell after the Bank of Spain sold about 800,000 ounces of gold, or about 25 metric tons, during July.

The Madrid-based bank's gold reserves were 9.1 million ounces at the end of July, compared with 9.9 million ounces at the end of June, its Web site showed yesterday. The bank didn't provide information on the price at which it sold the metal.

European central banks probably have ``about 100 tons'' of gold left to sell before the Central Bank Gold Agreement expires next month, Moore said. Under the agreement, central banks are allowed to sell as much as 500 tons of bullion a year.

European bank sales this year have ``curbed rallies rather than pushed prices lower,'' Moore said.

To contact the reporter on this story: Danielle Rossingh in London at drossingh@bloomberg.net (drossingh@bloomberg.net) .

Last Updated: August 9, 2007 06:37 EDT

http://www.bloomberg.com/apps/news?pid=20601012&sid=a18.FMh0Z_3c&refer=commodities

FoundingFathers

08-09-2007, 08:52 AM

don't worry, it's contained...

European Stocks, U.S. Futures Decline; BNP, Citigroup Fall

By Sarah Thompson

The Frankfurt Stock Exchange Aug. 9 (Bloomberg) -- European stocks and U.S. index futures dropped after BNP Paribas SA, France's biggest bank, halted withdrawals from investment funds because it can't ``fairly'' value their holdings.

BNP fell the most in four months. Commerzbank AG, which reported better-than-expected earnings today, and Deutsche Bank AG also declined. Citigroup Inc., the largest U.S. bank, and JPMorgan Chase & Co., the third-biggest, fell in Europe.

Europe's Dow Jones Stoxx 600 Index retreated 1.5 percent to 375.19 at 12:01 p.m. in London, while Standard & Poor's 500 Index futures expiring in September lost 16.7 to 1,487.2. Stocks dropped around the world last month on concern the debacle in the U.S. mortgage market will hurt economic growth, slow takeovers and reduce the value of investments.

``Investors will remain wary until it becomes clear whether the problems in the credit markets, which have hit a number of companies such as BNP, have real economic consequences,'' said Richard Scott, who helps oversee about $1 billion at Iimia Investment Group in Exeter, England. ``The more prevalent the problems in the credit market become, the greater the chance is of an economic fall-out that would lead to a more sustained decline in equity markets.''

The risk of owning corporate bonds in the U.S. and Europe rose today, according to traders of credit-default swaps. The yield on the U.S. 10-year note dropped 6 basis points, or 0.06 percentage point, to 4.81 percent, according to bond broker Cantor Fitzgerald LP. The yen gained against all of the 16 most- active currencies as traders to pared riskier investments funded by borrowing the currency.

`Drop Their Guard'

National benchmarks dropped in all 18 western European markets. The U.K.'s FTSE 100 slid 1 percent and Germany's DAX decreased 1.4 percent. France's CAC 40 lost 1.5 percent. The Stoxx 50 lost 0.9 percent, while the Euro Stoxx 50, a measure for the euro region, fell 1.2 percent.

``The news from BNP illustrates that market participants can never drop their guard,'' said Stephen Pope, head of equity research at Cantor Fitzgerald in London. ``Sentiment in the banking sector is going to be hit hard.''

BNP slid 3.2 percent to 82.7 euros, the biggest decline since March 24. The bank will temporarily suspend the calculation of net value for the funds, and halt redemptions and new investments. The funds affected are called Parvest Dynamic ABS, BNP Paribas ABS Euribor and BNP Paribas ABS Eonia.

``The complete absence of liquidity in certain market segments of the U.S. securitization market has made it impossible to value certain assets fairly regardless of their quality or credit rating,'' the Paris-based company said in an e-mailed statement today.

Fine-Tuning Operation

The European Central Bank said it will launch a fine-tuning operation today to add liquidity after demand for cash in the European money market drove interest rates higher.

NIBC Holding NV, a Dutch investment bank owned by a group including J.C. Flowers & Co., said it lost at least 137 million euros ($189 million) on U.S. subprime mortgage investments this year. The bank isn't publicly traded.

Commerzbank dropped 4.4 percent to 29.94 euros even as the bank said second-quarter profit more than doubled on a gain from the sale of its Jupiter fund unit. Deutsche Bank, Germany's biggest bank, fell 2.8 percent to 99.72 euros.

Citigroup declined 45 cents to $49.04 in Germany. JPMorgan fell 42 cents to $46.09.

Nobel Biocare Holding AG tumbled 8.4 percent to 339.25 Swiss francs, the most since October 2003 after the world's largest maker of dental implants reduced its sales forecast for the year.

International Power, Orkla

International Power Plc dropped 4.2 percent to 430.5 pence. The owner of electricity plants on four continents said first- half profit fell after it committed to prices for future output below actual rates.

Orkla ASA tumbled 9.8 percent to 99.4 . Profit before interest, tax and amortization was 1.19 billion kroner ($206 million) in the second quarter, missing estimates of 1.4 billion kroner, as raw material prices weighed on the company's food and solar-energy units.

OMX AB jumped 5.8 percent to 229.5 kronor. The Dubai stock exchange said it started a process to acquire at least 25 percent of the Nordic exchange operator that agreed to a 25.1 billion- krona ($3.7 billion) takeover from Nasdaq Stock Market Inc.

Rheinmetall AG dropped 2.9 percent to 59.25 euros after Goldman, Sachs & Co. removed the German maker of car parts and military equipment from its ``conviction buy'' list.

Assa Abloy AB slumped 5.6 percent to 140 kronor. The world's biggest lockmaker said second-quarter net income more than doubled to 820 million kronor. Sales climbed 8.3 percent to 8.33 billion kronor. Analysts had expected net income of 855 million kronor on sales of 8.39 billion kronor.

Standard Life Plc, the best-performing U.K. life-insurance stock this year, retreated 4 percent to 327.5 after Cazenove cut its recommendation on the stock to ``in-line'' from ``outperform.'' The shares have risen 11 percent this year.

To contact the reporters on this story: Sarah Thompson in London at sthompson17@bloomberg.net

fasTTcar

08-09-2007, 09:46 AM

Aug. 9 (Bloomberg) -- The European Central Bank loaned an unprecedented 94.8 billion euros ($130.2 billion) after demand for cash in the European money markets drove interest rates higher.

A reluctance to lend money after concern over U.S. subprime mortgage losses roiled credit markets pushed overnight euro rates to as high as 4.7 percent today, compared with the ECB's benchmark refinancing rate of 4 percent. The rate for borrowing dollars overnight jumped to 5.86 percent from 5.35 percent yesterday.

Borrowing rates are rising on concern banks face growing losses on investments linked to U.S. mortgages. BNP Paribas, France's biggest bank, today halted withdrawals from three investment funds, saying a lack of liquidity meant it couldn't ``fairly'' value the holdings.

``No one really knows how big the current credit problems are,'' said Charles Diebel, head of European rate strategy at Nomura International Plc in London in a note e-mailed after the ECB announced its liquidity-providing operation. ``This is undermining confidence in the system as a whole and hence the reaction this morning.''

In a statement today, the ECB said it was providing emergency funds ``to assure orderly conditions in the euro money market.'' It allotted 100 percent of the 49 bids at a fixed rate of 4 percent.

It was the first operation of this type since the attacks of Sept. 11. A day after the attacks, the bank allocated 69.3 billion euros, followed on the Sept. 13 by a 40.5 billion euro award.

BNP joined Bear Stearns Cos. and Union Investment Management GmbH in stopping fund redemptions. Dutch investment bank NIBC Holding NV said today that it lost at least 137 million euros ($188) on U.S. subprime investments this year.

``Every bank is being suspected now, so no one is willing to lend money to anyone,'' said Ina Steinke, a money-market trader at NordLB in Hannover.

To contact the reporters on this story: Christian Vits in Frankfurt at cvits@bloomberg.net ; Gabi Thesing in Frankfurt at gthesing@bloomberg.net .
Last Updated: August 9, 2007 08:32 EDT

http://www.bloomberg.com/apps/news?pid=20601087&sid=a8PM3DfGxMnU&refer=home

momopanda

08-09-2007, 09:52 AM

<BIG class=pr>AP</BIG>
BNP Paribas Freezes 3 Securities Funds
Thursday August 9, 7:24 am ET <TABLE height=4 cellSpacing=0 cellPadding=0 border=0><TBODY><TR><TD height=4></TD></TR></TBODY></TABLE>BNP Paribas Freezes 3 Asset-Backed Securities Funds Amid Subprime Market Problems
PARIS (AP) -- BNP Paribas SA, France's largest bank by market value, announced Thursday that one of its units was suspending three of its asset-backed securities funds, saying it could not value them accurately because of problems in the U.S. subprime mortgage market.
<TABLE cellSpacing=4 cellPadding=4 align=left border=0><TBODY><TR><TD><TABLE class=ad_slug_table cellSpacing=0 cellPadding=0 border=0><TBODY><TR><TD align=middle><NOSCRIPT></NOSCRIPT>
</TD></TR></TBODY></TABLE><SCRIPT language=javascript>if(window.yzq_d==null)window.yzq_d=new Object();window.yzq_d['i9yzD9ibyhI-']='&U=13bo42ejj%2fN%3di9yzD9ibyhI-%2fC%3d593995.11127456.11694856.1414694%2fD%3dLREC %2fB%3d4592313';</SCRIPT><NOSCRIPT></NOSCRIPT></TD></TR></TBODY></TABLE>The announcement by BNP Paribas Investment Partners sent further shock waves through an already sensitive money market.
The bank said it was suspending three funds worth a total of euro2 billion ($2.75 billion): Parvest Dynamic ABS, BNP Paribas ABS Euribor and BNP Paribas ABS Eonia. All funds combined at BNP Paribas Investment Partners are worth more than euro350 billion ($482.79 billion).
"The complete evaporation of liquidity in certain market segments of the U.S. securitization market has made it impossible to value certain assets fairly regardless of their quality or credit rating," BNP Paribas said in a statement.
"The situation is such that it is no longer possible to value fairly the underlying U.S. ABS assets in the three above-mentioned funds" and "therefore unable to calculate a reliable net asset value, NAV, for the funds," the company said.
Defaults on subprime loans, or those made to people with poor credit, have climbed sharply in recent months and have triggered concern about the impact on credit markets worldwide. BNP's announcement sent European stock markets lower and stirred concerns that problems among subprime borrowers would further roil markets.
"Who knows where the subprime story is going to pop up again," said Adam Cole of RBC Capital Markets.
BNP Paribas shares dropped 3 percent to euro82.81 ($114.23) Thursday in an overall weaker Paris market.
When the bank posted second-quarter results last week, Chief Executive Baudouin Prot said it would be virtually untouched by the plummeting valuation of some subprime mortgage portfolios in the U.S. because it has little exposure to that market.
BNP's actions come amid a panic period and the prices of assets remain volatile, said Celent analyst Cubillas Ding.
"Securitized assets that have underpinnings in the U.S. subprime market may now be difficult to put a price tag on given market sentiment -- as there is still lingering uncertainty whether the meltdown has greater knock-on effects down the line," he said.
But he also warned against following a "herd mentality."
Germany's financial watchdog, BaFin, said Thursday it has yet to see any firm reason to examine the extent of that nation's banks' exposure to the U.S. subprime market.
This week WestLB Mellon Asset Management, the asset management joint venture of German state bank WestLB AG and The Bank of New York Mellon Corp., suspended redemptions from its asset-backed securities ABS Fund, which is part of the West LB Mellon Compass Fund.
WestLB AG denied speculation on Thursday that it is facing a fund liquidity problem.
Other companies, including Union Investment Asset Management, a German mutual fund manager, and Frankfurt Trust, a unit of BHF-Bank, have also halted redemptions.

Scorpio

08-09-2007, 09:59 AM

All I can say about gold and silver is simple,

this trading range is getting old.

platinumdude

08-09-2007, 10:02 AM

Don't worry soon it will be back to $666.

fasTTcar

08-09-2007, 10:30 AM

Stocks Facing Major Decline After Fed Adds Reserves to System (http://www.cnbc.com/id/20185535)

U.S. stock index futures extended losses after the Federal Reserve added $12 billion in temporary reserves to the banking system following indications that the subprime mortgage fallout has spread to three hedge funds in Europe.
"The investors are like deer in the headlights," said David Dietz, chief investment strategist at Point View Financial Services.

Mcluken

08-09-2007, 10:34 AM

http://hf-implode.com/
Watch this number grow.:shocked_ma:

The Argent Dragon

08-09-2007, 10:38 AM

All I can say about gold and silver is simple,

this trading range is getting old.

Amen, brother bear.........let's get a breakout......the stagnation is sooo boring. :bear_angry:

+Plus, I really hate to dig up that 'ole GOLD is $666 again thread. :banghead:

The Argent Dragon

08-09-2007, 10:39 AM

BASE METALS down as well this AM.......

<TABLE cellSpacing=0 cellPadding=0 width=180 align=center bgColor=#ffffff border=0><TBODY><TR align=middle><TD class=marketopen align=middle>SPOT PRICE IS OPEN</TD></TR><TR align=middle><TD class=smallT align=right>Price: US$/lb </TD></TR></TBODY></TABLE><TABLE cellSpacing=0 cellPadding=0 width=180 align=center bgColor=#ffffff border=0 dwcopytype="CopyTableRow"><TBODY><TR align=right><TD align=middle background=/images/line_horiz.jpg colSpan=2>http://www.kitcometals.com/images/line_horiz.jpg</TD></TR><TR class=spot><TD class=menuB style="COLOR: #003399">Copper</TD><TD class=marketstime align=right>August 09,09:28</TD></TR></TBODY></TABLE><TABLE cellSpacing=0 cellPadding=0 width=180 align=center bgColor=#ffffff border=0 dwcopytype="CopyTableRow"><TBODY><TR class=spot><TD bgColor=#f1f1f1>Bid/Ask</TD><TD align=middle bgColor=#f1f1f1>3.5728</TD><TD align=middle bgColor=#f1f1f1>-</TD><TD align=middle bgColor=#f1f1f1>3.5819</TD></TR><TR class=spot><TD>Change</TD><TD style="COLOR: red" align=middle>-0.0446</TD><TD align=middle></TD><TD style="COLOR: red" align=middle>-1.23%</TD></TR><TR class=spot><TD bgColor=#f1f1f1>Low/High</TD><TD align=middle bgColor=#f1f1f1>3.5524</TD><TD align=middle bgColor=#f1f1f1>-</TD><TD align=middle bgColor=#f1f1f1>3.6423</TD></TR><TR align=right><TD class=menuB colSpan=4>http://www.kitcometals.com/images/arrow.jpgCharts (http://www.kitcometals.com/charts/Copper.html)</TD></TR></TBODY></TABLE><TABLE cellSpacing=0 cellPadding=0 width=180 align=center bgColor=#ffffff border=0 dwcopytype="CopyTableRow"><TBODY><TR align=right><TD align=middle background=/images/line_horiz.jpg colSpan=2>http://www.kitcometals.com/images/line_horiz.jpg</TD></TR><TR class=spot><TD class=menuB style="COLOR: #003399">Nickel</TD><TD class=marketstime align=right>August 09,08:49</TD></TR></TBODY></TABLE><TABLE cellSpacing=0 cellPadding=0 width=180 align=center bgColor=#ffffff border=0 dwcopytype="CopyTableRow"><TBODY><TR class=spot><TD bgColor=#f1f1f1>Bid/Ask</TD><TD align=middle bgColor=#f1f1f1>12.1903</TD><TD align=middle bgColor=#f1f1f1>-</TD><TD align=middle bgColor=#f1f1f1>12.2583</TD></TR><TR class=spot><TD>Change</TD><TD style="COLOR: red" align=middle>-0.9949</TD><TD align=middle></TD><TD style="COLOR: red" align=middle>-7.55%</TD></TR><TR class=spot><TD bgColor=#f1f1f1>Low/High</TD><TD align=middle bgColor=#f1f1f1>12.1903</TD><TD align=middle bgColor=#f1f1f1>-</TD><TD align=middle bgColor=#f1f1f1>13.2759</TD></TR><TR align=right><TD class=menuB colSpan=4>http://www.kitcometals.com/images/arrow.jpgCharts (http://www.kitcometals.com/charts/Nickel.html)</TD></TR></TBODY></TABLE><TABLE cellSpacing=0 cellPadding=0 width=180 align=center bgColor=#ffffff border=0 dwcopytype="CopyTableRow"><TBODY><TR align=right><TD align=middle background=/images/line_horiz.jpg colSpan=2>http://www.kitcometals.com/images/line_horiz.jpg</TD></TR><TR class=spot><TD class=menuB style="COLOR: #003399">Aluminum</TD><TD class=marketstime align=right>August 09,09:28</TD></TR></TBODY></TABLE><TABLE cellSpacing=0 cellPadding=0 width=180 align=center bgColor=#ffffff border=0 dwcopytype="CopyTableRow"><TBODY><TR class=spot><TD bgColor=#f1f1f1>Bid/Ask</TD><TD align=middle bgColor=#f1f1f1>1.1878</TD><TD align=middle bgColor=#f1f1f1>-</TD><TD align=middle bgColor=#f1f1f1>1.1901</TD></TR><TR class=spot><TD>Change</TD><TD style="COLOR: red" align=middle>-0.0021</TD><TD align=middle></TD><TD style="COLOR: red" align=middle>-0.18%</TD></TR><TR class=spot><TD bgColor=#f1f1f1>Low/High</TD><TD align=middle bgColor=#f1f1f1>1.1672</TD><TD align=middle bgColor=#f1f1f1>-</TD><TD align=middle bgColor=#f1f1f1>1.1958</TD></TR><TR align=right><TD class=menuB colSpan=4>http://www.kitcometals.com/images/arrow.jpgCharts (http://www.kitcometals.com/charts/Aluminum.html)</TD></TR></TBODY></TABLE><TABLE cellSpacing=0 cellPadding=0 width=180 align=center bgColor=#ffffff border=0 dwcopytype="CopyTableRow"><TBODY><TR align=right><TD align=middle background=/images/line_horiz.jpg colSpan=2>http://www.kitcometals.com/images/line_horiz.jpg</TD></TR><TR class=spot><TD class=menuB style="COLOR: #003399">Zinc</TD><TD class=marketstime align=right>August 09,08:29</TD></TR></TBODY></TABLE><TABLE cellSpacing=0 cellPadding=0 width=180 align=center bgColor=#ffffff border=0 dwcopytype="CopyTableRow"><TBODY><TR class=spot><TD bgColor=#f1f1f1>Bid/Ask</TD><TD align=middle bgColor=#f1f1f1>1.5433</TD><TD align=middle bgColor=#f1f1f1>-</TD><TD align=middle bgColor=#f1f1f1>1.5479</TD></TR><TR class=spot><TD>Change</TD><TD style="COLOR: red" align=middle>-0.0431</TD><TD align=middle></TD><TD style="COLOR: red" align=middle>-2.72%</TD></TR><TR class=spot><TD bgColor=#f1f1f1>Low/High</TD><TD align=middle bgColor=#f1f1f1>1.5411</TD><TD align=middle bgColor=#f1f1f1>-</TD><TD align=middle bgColor=#f1f1f1>1.5887</TD></TR><TR align=right><TD class=menuB colSpan=4>http://www.kitcometals.com/images/arrow.jpgCharts (http://www.kitcometals.com/charts/Zinc.html)</TD></TR></TBODY></TABLE><TABLE cellSpacing=0 cellPadding=0 width=180 align=center bgColor=#ffffff border=0 dwcopytype="CopyTableRow"><TBODY><TR align=right><TD align=middle background=/images/line_horiz.jpg colSpan=2>http://www.kitcometals.com/images/line_horiz.jpg</TD></TR><TR class=spot><TD class=menuB style="COLOR: #003399">Lead</TD><TD class=marketstime align=right>August 09,09:28</TD></TR></TBODY></TABLE><TABLE cellSpacing=0 cellPadding=0 width=180 align=center bgColor=#ffffff border=0 dwcopytype="CopyTableRow"><TBODY><TR class=spot><TD bgColor=#f1f1f1>Bid/Ask</TD><TD align=middle bgColor=#f1f1f1>1.3415</TD><TD align=middle bgColor=#f1f1f1>-</TD><TD align=middle bgColor=#f1f1f1>1.3506</TD></TR><TR class=spot><TD>Change</TD><TD style="COLOR: red" align=middle>-0.0612</TD><TD align=middle></TD><TD style="COLOR: red" align=middle>-4.37%</TD></TR><TR class=spot><TD bgColor=#f1f1f1>Low/High</TD><TD align=middle bgColor=#f1f1f1>1.3279</TD><TD align=middle bgColor=#f1f1f1>-</TD><TD align=middle bgColor=#f1f1f1>1.4118</TD></TR><TR align=right><TD class=menuB colSpan=4>http://www.kitcometals.com/images/arrow.jpgCharts (http://www.kitcometals.com/charts/Lead.html)</TD></TR></TBODY></TABLE>

The Argent Dragon

08-09-2007, 10:59 AM

Subprime woes hit BNP Paribas

French bank suspends three funds, says current conditions make it impossible to value their assets.

August 9 2007: 8:33 AM EDT


PARIS (Reuters) -- France's biggest listed bank, BNP Paribas, froze €1.6 billion ($2.2 billion) worth of funds Thursday, citing the U.S. subprime mortgage sector woes that have rattled financial markets worldwide.

The frozen funds amount to less than 0.5 percent of funds under management for the eurozone's second biggest bank by value, but later in the day a separate European fund valued at €750 million was frozen too, and a Dutch bank pulled its planned new listing after suffering subprime losses.

This latest subprime fallout came as Germany's Bundesbank held a meeting of those involved in the rescue of Europe's highest profile subprime victim yet, lender IKB and as the European Central Bank said it stood ready to act if needed to ensure smooth functioning of markets.

BNP Paribas said it was barring investors from redeeming cash from the funds.

"The complete evaporation of liquidity in certain market segments of the U.S. securitization market has made it impossible to value certain assets fairly, regardless of their quality or credit rating," it said in a statement.
"... BNP Paribas Investment Partners has decided to temporarily suspend the calculation of the net asset value as well as subscriptions/redemptions, in strict compliance with regulations, for these funds," it added.

BNP Paribas said the three funds had declined rapidly in size in the past few weeks to €1.593 billion ($2.19 billion) Aug. 7, down from €2.075 billion July 27. The bank has €326 billion of assets under management.
Most of the decline was due to investors pulling out of the funds, said Alain Papiasse, head of asset management and services at BNP Paribas.
"There are competitors who have announced they are closing funds but we are not at all in that same pattern," he said, adding the funds mainly held investment grade assets.

BNP Paribas Investment Partners said the funds affected were Parvest Dynamic ABS, BNP Paribas ABS Euribor and BNP Paribas ABS Eonia funds.
Valuation of the funds would resume as soon as liquidity returned to the market and, in the continued absence of liquidity, additional information on the envisaged measures would be given to investors within a month, the firm said.

The ECB said it planned a quick liquidity-providing tender at 4 percent to bring some calm to money markets, which a treasurer at a Greek bank said might be related to investment funds needing liquidity to meet redemption requests.

More >> http://money.cnn.com/2007/08/09/news/international/bnp_subprime.reut/index.htm?postversion=2007080908

The Argent Dragon

08-09-2007, 11:02 AM

Jobless claims rise more than expected

Number of new claims increases by 7,000 to 316,000 in the second straight weekly hike; four-week moving average inches higher.

August 9 2007: 9:02 AM EDT


WASHINGTON (Reuters) -- The number of U.S. workers applying for jobless benefits rose by 7,000 last week to a level slightly higher than expected but still underscoring steady labor market conditions, government data released Thursday showed.

Initial claims for state unemployment insurance benefits increased for a second straight week to a seasonally adjusted 316,000 in the week ended Aug. 4, from an upwardly revised 309,000 the prior week, the Labor Department said.

http://money.cnn.com/2007/08/09/news/economy/bc.usa.economy.jobless.reut/index.htm?postversion=2007080909

The Argent Dragon

08-09-2007, 11:08 AM

Home Depot shares dive; lead sector meltdown

By Jennifer Waters
Last Update: 9:53 AM ET Aug 9, 2007

<LABEL class=StoryContent id=StoryContent_Content>CHICAGO (MarketWatch) -- Shares of Home Depot Inc. led the sharp march south among the retail sector's components in early trading Thursday. The S&P Retail Index ($RLX (http://www.marketwatch.com/quotes/$rlx) :
s&p retail index-rlx
News (http://www.marketwatch.com/tools/quotes/news.asp?symb=$RLX), chart (http://www.marketwatch.com/tools/quotes/intchart.asp?symb=$RLX), profile (http://www.marketwatch.com/tools/quotes/profile.asp?symb=$RLX), more (http://www.marketwatch.com/quotes/$rlx)
Last: 477.59-10.33-2.12%

<IMG class=pixelTracking height=1 width=1 border=0>$RLX (http://www.marketwatch.com/tools/quotes/quotes.asp?symb=$RLX)477.59, -10.33, -2.1%) dropped 2.1% at the open to 477.85, pulled down primarily by weak sales numbers in July and an overall market flight to quality. Shares of Home Depot (HD (http://www.marketwatch.com/quotes/hd) :
Home Depot, Inc
News (http://www.marketwatch.com/tools/quotes/news.asp?symb=HD), chart (http://www.marketwatch.com/tools/quotes/intchart.asp?symb=HD), profile (http://www.marketwatch.com/tools/quotes/profile.asp?symb=HD), more (http://www.marketwatch.com/quotes/hd)
Last: 35.36-2.44-6.46%

<IMG class=pixelTracking height=1 width=1 border=0>HD (http://www.marketwatch.com/tools/quotes/quotes.asp?symb=HD)35.36, -2.44, -6.5%) sunk 6% to $35.54 after the home-improvement giant said it was likely that the sale price of HD Supply would be lower than initially announced. http://i.mktw.net/mw3/News/greendot.gif</LABEL>

DBcooper

08-09-2007, 11:09 AM

Gotta love those revisions,by the way i dont care if my gf has her heli license after last night i thought i was gonna puke,only second time ever for me being in one.

DBcooper

08-09-2007, 11:18 AM

Impac CEO: No bids for Alt-A

Joseph Tomkinson, head of Impac Mortgage Holdings in Irvine, said his company had to abandon Alt-A loans, which has been its focus since its founding in 1995, because there is no market for the loans right now.

“Right now there is no bid for it,” Tomkinson said. “There should be a bid, but there is no bid. People are taking a breather to see where the market is going. You have a market that is just panicking.”

Impac will switch gears dramatically and try and sell loans to Fannie Mae and Freddie Mac. It used to sell a lot of loans to Fannie but stopped amid intense competition, Tomkinson said. The REIT has to go back to Fannie and Freddie because they’re the only ones buying, he said.

DBcooper

08-09-2007, 11:25 AM

Aug. 9 (Bloomberg) — The British Bankers Association said the overnight lending rate that banks charge each other to borrow in dollars rose to 5.86 percent today from 5.35 percent.
The so-called London interbank offered rate in dollars is the highest since the start of 2001.
The benchmark borrowing rate is rising on concern banks face growing losses on investments linked to U.S. mortgages. The European Central Bank said today it is “closely monitoring the situation and stands ready to act to assure orderly conditions in the euro money market.'’
“Liquidity in the market has completely dried up as investors aren’t recycling their money back because of subprime concerns,'’ said Saher Bin Jung, a trader on the commercial paper desk at Commerzbank AG. “Levels have shot up dramatically since yesterday as issuers are trying to entice investors back.'’
Bank of America Corp. and UBS AG said their overnight borrowing costs rose 65 basis points to 6.00 percentage points. Royal Bank of Canada said its costs rose to 6.00 percentage points from 5.37 percentage points. Barclays also said it needs to pay 6.00 percentage points to borrow overnight in dollars, up from 5.38 percentage points yesterday.
http://www.bloomberg.com/apps/news?pid=20601087&sid=ay9vr2nEIjuI&refer=home (http://www.bloomberg.com/apps/news?pid=20601087&sid=ay9vr2nEIjuI&refer=home)

DBcooper

08-09-2007, 11:28 AM

Canadian companies feeling pinch of U.S. mortgage defaults
“The U.S. credit crunch is hurting Canadian companies trying to arrange debt financing and will put a brake on the fast pace of mergers and acquisitions seen so far this year, market watchers say.
Credit markets have tightened dramatically over the last two months as mounting defaults in the U.S. mortgage sector have sent shock waves through global markets. Frightened by the mortgage-market troubles, investors have fled riskier assets.
Canadian companies, including Quebecor Inc. and CanWest Global Communications Inc., have shelved plans for high-yield debt issues in the U.S. because of the turbulence.
Even Canadian firms with superior credit ratings are putting off bond issues until things calm down, said Marc-Andre Gaudreau, vice-president for corporate bonds at Natcan Investment Management Inc. “There’s been an important increase in the cost of financing for companies,” Gaudreau said.
The Wall Street Journal reported this week that U.S. corporate bond issuance was down 77 per cent in July compared to June….”
Edmonton Journal
Aug 9, 2007
http://tinyurl.com/36czzd (http://tinyurl.com/36czzd)

The Argent Dragon

08-09-2007, 12:53 PM

Subprime problems spread (http://money.cnn.com/2007/08/09/news/economy/bc.aig.subprime.reut/index.htm?postversion=2007080911)
11:20am: AIG sees uptick in defaults in more credit categories. European investors feel the pain too. (more (http://money.cnn.com/2007/08/09/news/economy/bc.aig.subprime.reut/index.htm?postversion=2007080911))

Mortgage defaults growing

World's largest insurer, in a presentation on subprime exposure, says total delinquencies in its real estate portfolio at 2.5 percent.

August 9 2007: 11:20 AM EDT

NEW YORK (CNNMoney.com) -- Another rough day on the subprime front. AIG, the world's largest insurer and one of the biggest mortgage lenders, said residential mortgage delinquencies and defaults are becoming more common among borrowers in the category just above subprime.

France's biggest listed bank, BNP Paribas, froze $2.2 billion worth of funds (http://money.cnn.com/2007/08/09/news/international/bnp_subprime.reut/index.htm?postversion=2007080910), citing subprime woes. And the European Central Bank felt it had to inject $130.5 billion (http://money.cnn.com/2007/08/09/news/international/bc.ecb.quickrefi.result2.reut/index.htm?postversion=2007080910) into euro-zone money markets to help calm jittery markets.

http://money.cnn.com/2007/08/09/news/economy/bc.aig.subprime.reut/index.htm?postversion=2007080911

The Argent Dragon

08-09-2007, 03:01 PM

<TABLE cellSpacing=1 cellPadding=0 width=540 align=center border=0><TBODY><TR align=middle bgColor=#f3f3e4><TD noWrap bgColor=#000000></TD><TD align=left> GOLD (http://www.kitco.com/charts/livegoldnewyork.html)
</TD><TD>08/09/2007
</TD><TD>13:30
</TD><TD>660.80
</TD><TD>662.30
</TD><TD>-14.00
</TD><TD>-2.07%
</TD><TD>659.50
</TD><TD>667.80
</TD></TR><TR align=middle bgColor=#f3f3e4><TD bgColor=#000000>http://www.kitco.com/images/graph_down.gif (http://www.kitco.com/charts/livesilver.html#ny)</TD><TD align=left> SILVER (http://www.kitco.com/charts/livesilver.html#ny)
</TD><TD>08/09/2007
</TD><TD>13:20
</TD><TD>12.67
</TD><TD>12.72
</TD><TD>-0.44
</TD><TD bgColor=#f3f3e4>-3.36%
</TD><TD>12.66
</TD><TD>12.96
</TD></TR></TBODY></TABLE>

Metals are getting slammed ! ......thanks to Ben Bernanke....he knows NOTHING !

THIS IS NOT A TIME FOR BEING DOVISH.....HE NEEDS TO RAISE THE RATE AND STOP THE INSANITY

HE HAS NO IDEA HOW BAD IT IS OUT HERE.....HE HAS NO IDEA !!!

:favorites21: :508:

Keef

08-09-2007, 03:10 PM

hahaha, if cramer steps up to protect us PM investors, I'm leavin the country NOW. I think that's one of the signs of the end times.

PatColo

08-09-2007, 03:16 PM

One of my chart resources has gone kaput. I used to look at real time, one-minute intraday charts of stocks at http://www.bigcharts.com/custom/datek-com/datek-rt2.asp but it has been dead all week. I miss it. I can get RT quotes, and presumably charts (never bothered to look for them) with my brokerage, but don't care to log in there unless I'm looking to trade. And yahoo etc gives 20 min delayed quotes/charts.

Anyone know of another free place to grab real time quotes & charts?

fasTTcar

08-09-2007, 03:31 PM

<table border="0" cellpadding="3" cellspacing="0" width="189"><tbody><tr><td>QUOTE OF THE DAY </td></tr></tbody></table><table bgcolor="#ffffff" border="0" cellpadding="5" cellspacing="0" width="189"><tbody><tr><td bgcolor="#ffffff">'We are not quite at the panic stage yet, but this is beyond jitters.'
— Martin Slaney, GFT Global</td></tr></tbody></table>

The Argent Dragon

08-09-2007, 04:44 PM

Dog Days of Summer ?

Stock selloff speeds up (http://money.cnn.com/2007/08/09/markets/markets_0300/index.htm?postversion=2007080915)
3:07pm: Major gauges hit session lows as investors bail on credit fears at home and abroad; bond prices surge in 'flight-to-quality' move. (more (http://money.cnn.com/2007/08/09/markets/markets_0300/index.htm?postversion=2007080915)) <TABLE cellSpacing=0 cellPadding=0 border=0><TBODY><TR vAlign=top><TD>• Treasury keeping eye on edgy markets (http://money.cnn.com/2007/08/09/markets/bc.usa.treasury.markets.reut/index.htm?postversion=2007080911)

</TD></TR><TR vAlign=top><TD>• Bonds spike on subprime turmoil (http://money.cnn.com/2007/08/09/markets/bondcenter/bond/index.htm?postversion=2007080913)

</TD></TR></TBODY></TABLE>

Headline : http://money.cnn.com/

Keef

08-09-2007, 04:49 PM

Stay calm, it takes a little while for that recent liquidity injection to hit the main vein. It will be ok in a few days for a few days...

skirnir

08-09-2007, 04:52 PM

Curtman

08-09-2007, 05:02 PM

Stay calm, it takes a little while for that recent liquidity injection to hit the main vein. It will be ok in a few days for a few days...

Thats right. For a few days also is right.

RichG

08-09-2007, 05:18 PM

Busy day.....:smokin:

http://www.reuters.com/article/marketsNews/idUKL0922638220070809?rpc=44&sp=true

Gold sinks on liquidity fears
Thu Aug 9, 2007 4:06PM EDT
By Frank Tang and Atul Prakash

NEW YORK/LONDON (Reuters) - Gold ended down more than 2 percent at a one-week low in New York on Thursday as concern over liquidity flared in credit markets and as the unwinding of yen-carry trades led to a sharp surge in the dollar.

"A lot of investment funds are in trouble nowadays and if this continues, they would reduce a lot of risk positions, including gold, in their effort to generate some dollars," said Michael Kempinski, senior precious metals trader at Commerzbank.

"Physical demand is not strong anymore. There is a risk of downside movement in gold," he added.

Spot gold <XAU=> at 3:34 p.m. EDT was down at $661.80/662.60 compared with $674.20/675.00 in New York late on Wednesday. Earlier it hit a session low of $659.50.

Most-active gold for December delivery (GCZ7: Quote, Profile, Research) on the COMEX division of the New York Mercantile Exchange settled down $13.50, or 2 percent, at $672.80 an ounce, after touching a low of $669.80, which marked the weakest level since July 27.

Stocks and credit markets weakened while the yen and safe-haven bonds surged after BNP Paribas (BNPP.PA: Quote, Profile, Research) suspended three funds hit by problems in the risky U.S. mortgage sector, triggering a new wave of risk aversion.

The French bank said it has suspended the funds as problems in U.S. subprime mortgages and diminishing liquidity are preventing it from calculating their value.

"People are selling gold to raise dollars. It's a classic risk-aversion trade," said John Reade, head of metals strategy at UBS Investment Bank.

"We continue to expect elevated volatility across broad asset markets and while investor positioning in gold and silver is relatively low, any quick increase in risk reduction could see both metals move lower," he added.

U.S. stocks were sharply lower in afternoon trading in New York, with both the broad-based Standard and Poor's 500 Index (.SPX: Quote, Profile, Research) and the Dow Jones industrial average (.DJI: Quote, Profile, Research) down 2.5 percent.

In a bid to help calm markets shaken by credit problems, the European Central Bank injected 94.841 billion euros into euro-zone money markets on Thursday.

Following ECB's announcement, the U.S. Federal Reserve said it added $12 billion of temporary reserves to the banking system through 14-day repurchase agreements.

CARRY TRADE UNWINDS AGAIN

In previous sell-offs this year, spot gold and gold futures were sold heavily as investors opted for liquidity when they unwound risky bets such as yen-carry trades -- the borrowing of the lower-interest yen to buy higher-interest currencies.

"The liquidity crunch in the market today is certainly leading to some liquidations across the board in the commodities market," said David Meger, metals analyst at Alaron Trading in Chicago.

Meger also cited the unwinding of the yen-carry trades for gold's sharp losses. The yen soared on Thursday as global credit worries prompted investors to reduce their exposure to risky trades financed in the Japanese currency.

In official gold sales, a spokesman for European Monetary Affairs Commissioner said that only the European Central Bank can decide whether Italy can sell gold reserves held by the Bank of Italy to lower the country's public debt.

Italy's parliament passed a motion last week requiring the government to look into the possibility of selling gold to reduce debt, the largest in the euro zone in absolute terms. Italy is the world's fifth largest holder of gold.

Platinum slipped to $1,268, the lowest since July 30 on news that South Africa's National Union of Mineworkers (NUM) had reached a wage settlement with Anglo Platinum (AMSJ.J: Quote, Profile, Research), the world's biggest platinum miner.

Spot platinum <XPT=> was last quoted at $1,269/1,273, down from $1,284/1,288 late on Wednesday in the U.S. market, while silver <XAG=> was at $12.63/12.68 an ounce versus $13.10/13.15. Palladium <XPD=> slipped to $359/362 from its previous close of $361/365 an ounce.