Governments to buy bank stakes; stocks soar
NEW YORK (Reuters) - Governments around the world bet hundreds of billions of dollars to rescue failing banks on Monday, sending world stocks soaring and giving Wall Street its biggest one-day gain ever. Britain, Germany, France and other European countries pledged more than 1 trillion euros ($1.36 trillion) for bank guarantees and equity stakes.
Manulife expects C$250 million charge on credit losses
TORONTO (Reuters) - Manulife Financial Corp, Canada's largest insurer, said on Monday it expects credit losses related to the global financial crisis to reduce earnings by about C$250 million in the third quarter. Manulife's shares, trading in New York on a market holiday in Canada, jumped about 10 percent, as government efforts to pump funds into banks triggered a rally on Wall Street after the global stock markets suffered their biggest weekly decline ever.
Global stocks post records on Europe rescue plans
NEW YORK (Reuters) - Global stocks surged to record single-day gains on Monday, bouncing off 5-year lows, while oil prices rose, after governments in Europe took bold steps to quell the global financial crisis and avert a deep recession. The Dow soared more than 900 points, its largest point gain ever. All three major U.S. stock indexes jumped more than 11 percent, while a benchmark European index surged a record 10 percent.
Morgan Stanley shares soar as MUFG deal closes
NEW YORK (Reuters) - Morgan Stanley
Automakers could return to Congress for help
WASHINGTON (Reuters) - U.S. automakers could turn to Congress after the November election to try to expedite $25 billion in government-backed loans, which Detroit manufacturers consider crucial to reversing their steep downward spiral. The prospect of an economic stimulus bill moving before year's end or in early January could provide an opening for General Motors Corp
Oil jumps 4 percent, bank plan spurs global rally
NEW YORK (Reuters) - Oil prices rose more than 4 percent on Monday as global markets rallied after governments launched bailout schemes to shore up banks. Britain, Germany, France, Italy and other European governments all announced rescue packages to stave off the global financial crisis, while U.S. Treasury Secretary Henry Paulson said Washington was developing plans to buy equity in financial institutions.
European nations unveil crucial bank rescues
BERLIN/PARIS (Reuters) - Germany, France and Britain announced massive financial rescues on Monday as governments across Europe stepped in to shield banks and restore confidence in the face of the worst financial crisis in nearly 80 years. German Chancellor Angela Merkel presented a rescue package that will provide 400 billion euros ($543.4 billion) in bank guarantees and a further 100 billion euros in state funds to recapitalize banks.
Election? What election?
TORONTO (Reuters) - (Reuters) - Bay Street, riveted by the sight of plunging markets and economies teetering on the edge of recession, has been paying precious little attention to the campaign leading to Canada's general election on Tuesday. "I don't think investors are really at all focused on the fact there is a Canadian election and what any potential policy change that may bring," said George Vasic, equity strategist at UBS Securities Canada. "Concerns are far greater than that in terms of the global financial crisis."
Exploring the worst-case scenario
WASHINGTON (Reuters) - The global economy is drawing closer to a dangerous downward spiral and time may be running out for world leaders to find a way to stop it before it inflicts lasting damage. Economists are beginning to warn of a depression-like cycle where an inability to obtain credit stalls growth, triggering more defaults and still tighter lending terms. Governments have unveiled one unprecedented move after another in the past three weeks to boost confidence and get banks back in business, yet so far nothing has been able to arrest the fall.
Sarkozy, Merkel prepare European crisis plan
COLOMBEY-LES-DEUX-EGLISES, France (Reuters) - French President Nicolas Sarkozy and German Chancellor Angela Merkel paved the way on Saturday for European measures to tackle the global financial crisis but revealed little about their plans. Sarkozy, whose country holds the rotating six-month presidency of the European Union, has called an emergency meeting on Sunday of the 15 countries that have the euro as their currency, with a view to taking steps to stop the rot.
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