Europe Recovers after Credit Suisse Writedown - Trader Talk with Bob Pisani - CNBC.com
European markets have recovered in the past two hours after a rough start.
Credit Suisse roiled the markets early, as it announced $2.85 billion in writedowns, just a few days after posting relatively strong fourth-quarter profit. They will be cutting bonuses and much of that writedown will be covered by tax credits. Still, it will wipe $1 billion off of profits from the first quarter. Remarkably, they say they will still be profitable.
Credit Suisse
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In the U.S., futures have been rallying for the past couple hours. Traders note a combination of factors: 1) Europe holding up fine yesterday, and recovering from a brief dip this morning, 2) U.S. markets held up Friday and didn’t break in the face of bad consumer confidence, 3) further signs of bond market weakness, 4) Wal-Mart Stores
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Finally, there may be a small boost from Cuban dictator Fidel Castro stepping down, but the two most obvious beneficiaries -- Carnival
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Elsewhere:
1) Wal-Mart was in-line at $1.02. Outlook in line with expectations $0.70-$0.74 vs. expectations of $0.74. Up 2 percent pre-open.
2) Ambac
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3) The chief executive of the nation's largest bond insurer, MBIA
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CNBC's David Faber said he had spoken with Brown and that Mr. Brown was optimistic that a deal might happen in next two weeks with New York State Insurance Commissioner Eric R. Dinallo.
4) Conagra
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5) Iron ore prices still going up: Vale announced a 65 percent increase in 2008 iron ore prices, which could add $10 billion to the company's bottom line. No wonder the Chinese are opposed to consolidation in this business. They also plan to sweeten their bid for Xstrata.
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