Market update: credit crisis might continue as regulations appear
SEC to demand liquidity disclosures
US regulators will soon force Wall Street banks to divulge more details about their capital and liquidity. the requiement seeks to avert a repeat of the sudden collapse of Bear Stearns in March. The new disclosure would be “in terms that the market can readily understand and digest”, said the Security and Exchange Comission.
European Central Bank (ECB) and Bank of England leave rates steady
Although Europe is dealing with an inflation problem, and a higher rate would definetly help them to combat this problem, the central banks decided to leave rates unchanged amid signs of slower economic growth ahead. Most analysts expected this decision.
Regulator of US commodities sees no price manipulation
The US regulatory body for futures markets said commodity prices are not a result of market manipulation. Instead, the high prices for oil, food grains and other are because of reasons including the dollar´s falling value, growing demand from developing nations and biofuel mandates.
India is top emerging market for private equity
Although many investors believe that China and Brazil are the most promising emerging markets, the Emerging Market Private Equity Association said that the $7.4 billion invested in India last year topped by far the $2.1 billion that went to China or the $3.2 billion to Brazil. Russia, the other member of the BRIC group (Brazil, Russia, India and China), attracted only $924 million.
What will Americans do with the tax rabates?
According to a survey by Reuters, 45% of Americans plan to pay down debt, and 25% will put the money into savings. That means that US consumers will be cautious about spending the arriving tax rebate checks that were meant to stimulate the economy.
Toyota stock analysis
Toyota Motor Corp. (stock ticker: TM) said that their 1Q profits fell 28% to 316.8 billion yen, or $3 billion dollars. The decline was greater than anticipated by analysts. Toyota, Honda and Mazda all predict falling profits this year as the value of North American sales are overwhelmed by the yen´s gains against the weaker dollar.
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