Guest ChasNemo Posted January 21, 2008 Share Posted January 21, 2008 On Jan 21, 1:11�pm, SrRojo <drj2...@concentric.net> wrote: > http://www.nytimes.com/2008/01/21/business/22stox-web.html?hp > > The New York Times > > January 21, 2008 > > Stocks Plunge in Europe and Asia on U.S. Recession Fear > > --"No they dint!"--L'il Jak > > By DAVID JOLLY and HEATHER TIMMONS > > PARIS -- Global stock markets plunged on Monday as fears spread that > the turmoil in United States mortgage markets is spreading. Indexes in > Europe fell as much as 7 percent after a huge sell-off in Asia. > > --"No they dint!"--L'il Jak > > "There's something approaching panic in the market," Holger > Schmieding, the chief European economist at Bank of America in London, > said by telephone. "There's been a reassessment in the market of the > U.S. economic outlook, with most people now thinking that there will > be a recession," and investors are starting to reconsider the idea > that the rest of the world "will remain aloof from U.S. problems." > > --"Nuh their ain't!--L'il Jak > > The selling began in Sydney, with Australian stocks falling nearly 3 > percent for an 11th consecutive decline. Major markets in Asia > followed suit, with the benchmark Nikkei 225-stock average in Tokyo > falling 3.9 percent, the Hang Seng in Hong Kong falling 5.5 percent > and the benchmark mainland Chinese index falling more than 5 percent. > > --"No they dint!"--L'il Jak > > European shares were on track for their biggest decline in more than > four and a half years as United States recession fears rattled > investors. At the close, the Dow Jones Euro Stoxx 50 was down 7.3 > percent. The CAC 40 index in Paris was down 6.8 percent, having fallen > more than 7 percent at one point. The Dax 30 in Frankfurt was down 7.1 > percent, and the FTSE 100 in London was down 5.5 percent. > > --"No they dint!"--L'il Jak > > Stocks followed suit when markets opened in the Western Hemisphere. > Canadian stocks were down 4.5 percent at midday, and a key market > index in Brazil was off 6.6 percent. > > --"No they dint!"--L'il Jak > > United States markets are closed on Monday in observance of Martin > Luther King's Birthday. But trading Monday in stock index futures, > while light and not always a reliable indicator, pointed to a > substantial decline on Wall Street. Futures in the Dow Jones > industrial average were down 520 points, or more than 4 percent. > > --"No thay ain't!"--L'il Jak > > Stocks received no lift on Friday despite an announcement that the > Bush administration would seek a stimulus package of as much as $145 > billion. > > --"Yah they did!"--L'il Jak > > Market participants said that meant investors were convinced that an > American recession is looming, and economists and strategists said the > effect would span the globe. > > --"No they dint!"--L'il Jak > > No matter how many bridges, roads and power plants China builds, or > new cars India sells, a downturn in the United States will batter > Asian economies, they said. > > --"No they dint!"--L'il Jak > > Investors in Asia have been in a state of denial about the possibility > of a recession in the United States, said Adrian Mowat, chief > strategist for JPMorgan in Asia. But now, he said, "there's no debate > about it." > > --"No thay ain't!"--L'il Jak > > Instead, he said investors were asking "how long and how deep" the > recession might be. > > --"No they dint!"--L'il Jak > > In recent months, some emerging market investors have preached the > idea that fast-growing areas like most of Asia have "decoupled" from > developed markets, meaning the economies of the two groups no longer > move in tandem. The investing adage "When the United States sneezes, > Asia catches a cold" no longer applies, the proponents of decoupling > argue. > > --"No they dint!"--L'il Jak > > But a recent slump in emerging markets, capped by Monday's slide, > means investor sentiment is changing. > > --"No thay ain't!"--L'il Jak > > Mr. Mowat said it did not matter whether global markets were separated > by geography or asset class because "we trade together in > corrections." > > --"No hee dint!"--L'il Jak > > Deborah Schuller, a regional credit officer for Moody's Investor > Service in Asia, said, "If the United States consumer quits buying > things, it is going to hurt" Asian economies. > > --"No she dint!"--L'il Jak > > Most rated corporations in Asia will be able to withstand nine months > of United States recession, but if hard times in America stretched to > 12 months or more, there could be serious problems, she said. > > --"No it ain't!"--L'il Jak > > Worries about the Chinese economy are also giving investors in Asia > heartburn. > > --"No it ain't!"--L'il Jak > > The country's private property market is in the midst of a shakeout, > and scores of small developers have gone out of business. Meanwhile, > fears of inflation have been looming for months. Shanghai's composite > index closed down 5.1 percent at 4,914.44. The Hang Seng's 5.5 percent > fall was the biggest fall since the Sept. 11, 2001, terrorist attacks > in the United States. The Hong Kong index fell more than 5 percent > last Wednesday. > > --"No it ain't!"--L'il Jak > > The decline in Japanese stocks took the market to the lowest levels in > more than two years on concerns that a United States recession could > be accompanied by a local one. The Nikkei is now down more than 13 > percent in January. > > --"No it dint!"--L'il Jak > > The Japanese Finance Ministry said Monday that growth was slowing in > five of Japan's economic regions, which have been hit by stagnant > housing investment and the poor employment. > > --"No he dint!"--L'il Jak > > The Bombay Stock Exchange's Sensex index plummeted 7.4 percent and > suffered its biggest-ever point loss of 1,353 to close at 17,605.35. > > --"No it dint!"--L'il Jak > > Hardest hit were some of the most valued Indian companies, including > Reliance Communications, Tata Steel and Reliance Industries. > > --"Nuh it aint!"--L'il Jak > > There may be more downturns in store for Asia, particularly as banks > report the fallout from their investments in the United States > mortgage market. > > --"No they aint!"--L'il Jak > > �Companies "have not announced their year-end numbers yet," Schuller, > of Moody's, said, and if they are holding subprime assets, they may > need to write-off their value, she said. "They are going to be taking > these 25 to 30 percent haircuts we're seeing on Wall Street," she > said. "I think it is going to shock people." > > --"Yah they did!"--L'il Jak > > David Jolly reported from Paris and Heather Timmons from New Delhi. > Tim Johnston contributed reporting from Sydney, and Martin Foster from > Tokyo. > > --Nuh thay dint!"--L'il, Jak > > --"Huh? Nuh unnastayn!"--L'il Jak "THEE EKONMY IZ REEL HELTHY, DONCHAKNOW!! HEEHEE......." --L'il Jak Quote Link to comment Share on other sites More sharing options...
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