Currencies markets plunge. Money fled from emerging currencies into dollars and yens. The Dow was initially down almost 450pts (-5%) but managed to rally to a loss of 312.30 for the day. The Dow is at 8,378.95, a loss of 3.59%.
The bad news started early Friday in Tokyo and Seoul, where big companies like Toyota, Sony and Samsung disappointed investors with their earnings.
Oil prices fell 5 percent, to $64.15. OPEC announced that it was cutting output. Some countries in OPEC like Saudi Arabia can live with this decline, into the $55-60 range, but others like Venezuela need a lot more. Chavez needs at least $100 a barrel. Tough times ahead for those countries. Honestly, Canada’s production isn’t that great, but lower oil prices are a wake-up call for those countries relying on the $145 a barrel from July 2008.
Insurers are lining up to get a piece of the bailout money.
Citadel hedge fund in trouble. With a loss $180 billion in the last three months in the hedge fund market, Citadel is having a hard time explaining their financial health.
A possible merger between Chrysler and GM hinges on federal aid.
Brokers are leaving big investment companies, even as Morgan Stanley and UBS are trying to recruit them.
Iceland wants more tourists. They say that prices are 50% lower than last year, but I just checked for a return flight from Toronto to Iceland and it was $5,300 during the holidays. At $530, I would have considered it. My guess is that they are trying to milk money, but they need to cut it further than that to attract customers. Actually, departing from Quebec, the lowest fare for that flight I could find was $905CAD for a 30-hour flight. (A 12-hour flight via Air Canada was $1162) Varying your departure dates will net you a steep saving. You can get a $813 flight a few days before. Thinking about this, you might be able to find even cheaper.
* * * * *
Relevant Posts (check out the finance category for more)
- Daily Financial Crisis Recap 10.10.08
- Daily Financial Crisis Recap 11.10.08
- Daily Financial Crisis Recap 12.10.08
- Daily Financial Crisis Recap 13.10.08
- Late Daily Financial Crisis Recap 13.10.08
- Daily Financial Crisis Recap 14.10.08
- Daily Financial Crisis Recap 15.10.08
- Daily Financial Crisis Recap 16.10.08
- Daily Financial Crisis Recap 17.10.08
- Daily Financial Crisis Recap 19.10.08
- Daily Financial Crisis Recap 21.10.08
- Daily Financial Crisis Recap End of Day 21.10.08
- Daily Financial Crisis Recap 22.10.08
- Daily Financial Crisis Recap 23.10.08
I'm 
1 Response to “Daily Financial Crisis Recap 25.10.08”