Despite sagging global growth, soaring oil prices and the threat of renewed turmoil hanging over share markets, Europe appears to have managed so far to weather the storm unleashed by the upheaval in the United States housing market and fears of a major world economic slump.
Central banks on both sides of the Atlantic are in talks about the feasibility of mass purchases of mortgage-backed securities in a bid to solve the global credit crisis, the Financial Times said on Saturday. The newspaper, without citing sources, said the talks were at an early stage and part of a broader exchange on how to battle the turmoil in financial markets,
Global stocks fell and the dollar tumbled on Monday as a fire sale of Bear Stearns and an emergency Federal Reserve cut of a key lending rate sparked fears that a worldwide credit crisis will claim more casualties. European shares sank more than 3%, following a sell-off in Asia where Japan’s leading indexes shed more than 3,5%.
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/ 13 February 2008
South African stocks were slightly lower at midday on Wednesday as heavily weighted miners continue to falter on falling metal prices, while other investors refrained from making any large moves ahead of Wall Street opening. At midday, the broader all-share index had was off 0,18% at 28 533,810.
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/ 21 January 2008
Britain set a two-week deadline for a private-sector rescue of Northern Rock on Monday, as it confirmed plans to convert its billions of pounds of loans to the stricken bank into bonds in a bid to smooth a deal. The financing package will tie the government to Northern Rock, Britain’s biggest casualty of the global credit crunch, for years to come.
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/ 10 January 2008
The JSE was under pressure by midday on Thursday as investors were uncertain about the outcome for European markets ahead of the European Central Bank and Bank of England interest-rate decisions later in the day. By noon, the broader all-share index had pulled back 0,49%. The gold-mining index gave up 1,12%, while resources were a slight 0,01% in the red.
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/ 4 December 2007
Resource heavyweights Anglo American and BHP Billiton continued to weigh on the JSE in midday trade on Tuesday, with the all-share pulling back almost half a percent from its earlier levels. By midday, the JSE all-share index dropped 0,69% as resources gave up 0,96%. The gold-mining index shed 0,12% but the platinum-mining index improved 0,42%. Industrials lost 0,53%.
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/ 26 November 2007
A consortium led by Richard Branson’s Virgin Group has been picked as the preferred bidder to rescue Northern Rock and plans to repay £11-billion (,6-billion) quickly to the Bank of England. Half the cash will come from the consortium and half will be raised through a rights issue at 25 pence per share.
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/ 14 November 2007
Shareholders in ailing British bank Northern Rock could be left with nothing and the Bank of England could still be funding the lender in three years. A briefing memorandum sent to potential buyers of Northern Rock by its advisers showed it could still owe as much as £5,9-billion to the Bank of England in 2010.
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/ 7 November 2007
The euro soared to another record high against the sagging dollar on Wednesday, climbing above ,47 for the first time, while the British pound reached ,10. The 13-nation euro hit ,4730 in afternoon European trading before slipping back to ,4682 — still well above the ,4554 it bought in New York late on Tuesday.
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/ 19 October 2007
Britain’s Northern Rock on Friday announced the resignation of chairperson Matt Ridley following a turbulent period at the crisis-hit bank. He will be succeeded by Bryan Sanderson, a former chairperson at British-based emerging markets bank Standard Chartered and healthcare firm Bupa, the company said in a statement.
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/ 15 October 2007
Northern Rock’s bosses face their toughest grilling since the British bank was engulfed in a funding crisis a month ago when lawmakers quiz them on Tuesday on their strategy and assessment of risk. Northern Rock CEO Adam Applegarth faces a Treasury Committee panel that last month accused the Bank of England of being asleep at the wheel during the crisis.
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/ 12 October 2007
Britain’s Virgin Group, controlled by entrepreneur Richard Branson, is in talks to take over troubled bank Northern Rock, a person familiar with the matter said on Friday. The group could lead a consortium including Middle East and United States investors that would inject cash in exchange for a controlling stake.
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/ 25 September 2007
The euro resumed its record-setting run against the dollar on Tuesday, climbing to ,4153 after a pair of economic reports painted a dismal picture for United States consumers and the ailing home sales market. The strength of the euro drew concern, with Spain’s finance minister warning of problems.
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/ 19 September 2007
The Bank of England announced on Wednesday that it will inject £10-billion into longer-term money markets next week amid the ongoing global credit squeeze. Until now, the British central bank has refrained from pumping cash into the three-month money markets.
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/ 18 September 2007
The JSE’s all-share index came out of the morose state it was in earlier, edging up into positive territory by midday on Tuesday driven by the turnaround in the United Kingdom’s FTSE 100. Shortly before midday, the FTSE 100 was at 6 224,10 points, 0,67% better than Monday’s close as the Bank of England added liquidity to the United Kingdom market,
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/ 17 September 2007
Thousands of customers queued to withdraw savings from embattled British bank Northern Rock on Monday and its shares plunged again, heightening pressure for a sale of the business or its assets. Britain’s fifth-biggest mortgage lender said there was no need for investors or customers to panic
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/ 17 September 2007
The JSE was sharply lower at midday on Monday as rekindled credit fears continued to spill over on to world markets. The JSE opened in negative territory and weakened further during the morning session on last week’s news that the United Kingdom’s fifth largest mortgage lender, Northern Rock, used the Bank of England as a lender of last resort.
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/ 15 September 2007
Worried customers were expected to keep withdrawing savings en masse on Saturday from embattled British bank Northern Rock after the Bank of England bailed out the lender. Customers formed lengthy queues outside branches on Friday after Britain’s fifth-biggest home-loan provider said it was facing severe difficulties raising cash to cover its liabilities.
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/ 14 September 2007
Shares in British bank Northern Rock plunged by a quarter on Friday as clients rushed to withdraw their savings following an emergency bail-out of the lender by the Bank of England. The central bank came to the rescue of Britain’s fifth-biggest home-loan provider, which is facing severe difficulties raising cash on money markets amid the ongoing global credit squeeze.
United States President George Bush will outline reforms on Friday to help struggling subprime mortgage borrowers and his central bank chief will deliver a speech which will be pored over for hints of a looming rate cut. Federal Reserve chairperson Ben Bernanke speaks on ”Housing and Monetary Policy” at around 2pm GMT.