Its cold here in Toronto...time to fly south.
I will be taking some time to enjoy some Mexican Hospitality.
I will check in periodically, but will return Dec 18th.
Take care of PDP+BWR In my short absence
I will be taking some time to enjoy some Mexican Hospitality.
I will check in periodically, but will return Dec 18th.
Take care of PDP+BWR In my short absence
Pre-Fed expectations firm futures
RTGAM
Stock-index futures are upbeat Monday ahead of a likely interest rate cut tomorrow, even though Swiss bank UBS took whopping writedown on subprime mortgage holdings. But in a move reminiscent of Citigroup, UBS got back on track with a big capital injection from Singapore and an unidentified Middle Eastern investor.
"The amazing reaction to UBS' announcement today indicates investors switched to a more positive view," Oliver Hagen, a fund manager with LGT Capital Management, told Bloomberg, referring to UBS shares gaining in Europe. "The strength of financial stocks might support the market in general."
Indeed, Citigroup, Bank of America, Wells Fargo and JP Morgan Chase all advanced overseas, sending European markets into positive territory. Separately, Barron's magazine says JP Morgan in a better position to withstand credit-market turmoil because it can count on revenue from non-banking sources.
Investors, though, are eagerly anticipating an interest rate decision in the U.S. on Tuesday, although the market is divided over whether the Federal Reserve will lower rates by a quarter of a percentage point or a half.
At 7:30 a.m. EST, Dow Jones industrial futures are up 28 points, with S&P 500 futures adding 1.4 points and Nasdaq 100 futures up 2.75 points.
In corporate news, the Toronto and Montreal stock exchanges could unveil a merger as early as Monday, reflecting ongoing consolidation globally.
Blackstone Group might be planning a bid to acquire Rio Tinto Ltd., leading a consortium that would include China's sovereign wealth fund, according to a published report in Britain.
And Japanese drug maker Eisai is buying MGI Pharma for $3.9-billion (U.S.) in a move aimed at boosting its cancer drug business and sustaining sales growth.
In the economic pipeline is a report on pending U.S. home sales in October at 10 a.m. EST.
Copyright 2001 The Globe and Mail