Links: 2008-10-29 [delicious]

• Beware the unwinding of the yen carry trade – FT

  Worse than Japan again becoming the source of almost free money, is the chance of an even more risky dollar carry trade, writes David Pilling

• Cracks appearing in Vancouver’s condo boom – National Post

  Holly Wood’s first hint that something was “smelling fishy” in Vancouver’s champagne-infused construction market came several weeks ago, when she discovered that the presentation centre for the city’s most glamorous project was strangely closed.

• More Thoughts on the Merits of Mark-to-Market – Deal Book

  Chuck Maimbourg, director of the accounting policy at KeyBank, a large regional bank, disclosed at the Securities and Exchange Commission’s roundtable on mark-to-market accounting on Wednesday that the accounting standard was the primary reason why KeyBank walked away from acquiring a rival.

• New IMF fund for emerging markets – BBC News

  The IMF unveils a new $100bn emergency kitty to help emerging market economies cope with the global financial crisis.

• Treasury, FDIC Said to Craft Plan to Curb Foreclosure – Bloomberg

  Oct. 29 (Bloomberg) — The U.S. Treasury and the Federal Deposit Insurance Corp. are considering a plan that may provide about $500 billion in government guarantees for troubled mortgages, according to people familiar with the matter.

• Fed Creates Swaps With South Korea, Brazil, Mexico – Bloomberg

  Oct. 29 (Bloomberg) — The Federal Reserve agreed to provide $30 billion each to the central banks of Brazil, Mexico, South Korea and Singapore, expanding its effort to unfreeze money markets to emerging nations for the first time.

• U.S. Stocks Decline as Fed Fails to Ease Concern About Economy – Bloomberg

  Oct. 29 (Bloomberg) — U.S. stocks dropped as the Standard & Poor’s 500 Index lost a 3.1 percent rally in the final 12 minutes of trading on concern that the Federal Reserve’s sixth interest- rate cut this year isn’t enough to rescue the economy.

• Fed Cuts Rate to 1% to Avert Prolonged Recession – Bloomberg

  Oct. 29 (Bloomberg) — The Federal Reserve cut its benchmark interest rate by half a percentage point to 1 percent, matching a half-century low, in an effort to avert the worst U.S. economic downturn in the postwar era.

• Dollar Drops Most Since 1998 as Fed Cuts Rate by Half-Point – Bloomberg

  Oct. 29 (Bloomberg) — The dollar fell the most since 1998 against the currencies of six major U.S. trading partners as the Federal Reserve cut the target lending rate to a level matching a half-century low, saying risks to the economy remain.

• Bair says FDIC’s powers could extend to insurers – Reuters

  WASHINGTON (Reuters) – The Federal Deposit Insurance Corp’s powers could be expanded if Congress decides to shift insurance companies from state regulation to federal regulation, FDIC Chairman Sheila Bair said on Wednesday.

• Morgan Stanley gathering deposits, eyes bank deals – Reuters

  NEW YORK (Reuters) – Morgan Stanley, eager to secure more stable sources of funding in volatile times, said on Wednesday its brokerage division sold $3 billion in certificates of deposit during the past week as part of its broader plan to build up deposits.

• Sumitomo Mitsui First-Half Profit Falls on Bad Lo
  ans – Bloomberg

  Oct. 29 (Bloomberg) — Sumitomo Mitsui Financial Group Inc., Japan’s third-biggest bank by revenue, reported a 50 percent slump in first-half profit and cut its full-year forecast as bad debt costs rose.

• Icelandic-owned airline bankrupt – BBC News

  The Icelandic-owned Sterling Airways says it will file for bankruptcy, leaving up to 700 passengers stranded at London’s Gatwick airport.

• Hedge funds make £18bn loss on VW – BBC News

  Hedge funds lose £18bn betting on Volkswagen shares falling after the shares rise 348% in two days.

• Global Stocks, U.S. Futures Climb; Banks, Mining Shares Rally – Bloomberg

  Oct. 29 (Bloomberg) — Stocks gained in Europe and Asia for a second day and U.S. index futures rose as falling credit costs spurred a rally in financial shares, while higher commodity prices pushed up oil and metals producers.

• HRE taps bailout fund for €15bn – FT

  Hypo Real Estate has become the first private sector group to ask for help from Germany’s €500bn financial sector bailout fund, saying it needs €15bn of liquidity help for short-term requirements.

• BBVA defies gloom with earnings growth – FT

  BBVA, the Spanish bank, saw a 4 per cent rise in quarterly underlying profit as its conservative strategy has so far been vindicated by the damage to its rivals from the global financial crisis

• Soros Sees Pared Down Hedge Fund Industry – Deal Book

  As hedge funds continue to be hit with deepening losses and mass redemptions, many industry observers are wondering what the formerly high-flying industry will look like after the shake-out. George Soros gave his take on Tuesday: The billionaire investor said he believes that the current financial turmoil will leave the industry a third of its […]

• British Leader Calls for Larger I.M.F. Bailout Fund – Deal Book

  Prime Minister Gordon Brown of Britain called Tuesday for China and the Persian Gulf states to put up more money to help the International Monetary Fund deal with the fallout of the credit crisis. The appeal of Mr. Brown grabbed the spotlight ahead of a meeting on Tuesday with President Nicolas Sarkozy of France.

• Lazard’s 3rd-Quarter Profits Fall 34% – Deal Book

  Lazard said on Wednesday that its third-quarter profit fell 34 percent, as the market turmoil and the collapse of Lehman Brothers struck at the investment bank’s businesses. Lazard reported $54.8 million in net income.

• Archos 5 – PC Pro

  This truly is the most fully featured personal media player we’ve ever come across and it isn’t much more expensive than a 32GB iPod touch.

• World oil output declining faster than thought – Telegraph

  Output from the world’s oilfields is declining faster than previously thought it has been claimed.

• Dow jumps 889 points – MSN

  The blue chips enjoy their second-biggest point gain ever as energy and metals stocks rebound. But traders worry the rally won’t hold. Consumer confidence plunges, and home prices are still tumbling. Boeing’s shares jump after a strike settlement.

• Hungary gets $25.1 bn rescue package – FT

  The IMF is granting a $15.7bn loan programme, while Brussels stands ready with $8.1bn in financing and the World Bank another $1.3bn to help Hungary boost confidence in its economy

• Consumer group opposes Google, Yahoo partnership – Reuters

  WASHINGTON (Reuters) – U.S. Public Interest Group, a consumer organization, is opposing Google’s (GOOG.O: Quote, Profile, Research, Stock Buzz) plan to share advertising with rival Yahoo (YHOO.O: Quote, Profile, Research, Stock Buzz), saying it could…

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