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/ 22 May 2008

Oil races above $135, stocks and bonds shudder

Record high oil prices at a barrel deepened worries about inflation on Thursday and weighed on some Asian stocks although Japanese shares ended slightly higher, as dealers trimmed their bets on further weakness. The dollar trudged higher against the euro after earlier hitting a one-month low after the Federal Reserve slashed its United States 2008 growth forecast

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/ 15 May 2008

IMF chief says worst of financial crisis is over

The worst of the financial-sector crisis is over, although the impact on the broader economy will likely drag on in coming months, International Monetary Fund (IMF) managing director Dominique Strauss-Kahn said on Thursday. "There are good reasons to believe that the largest part of disclosure in financial institutions has been done," he said.

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/ 4 April 2008

Bank chief blames rumours for Bear’s collapse

The head of the crisis-hit investment bank Bear Stearns has blamed short sellers and market manipulators for spreading negative financial rumours to induce a collapse of the 85-year-old Wall Street institution. Bear’s chief executive, Alan Schwartz, told the senate’s finance committee in Washington that his firm had been as well-capitalised as its rivals.

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/ 26 March 2008

More than 20 000 Wall Street jobs at risk

More than 20 000 people are forecast to lose their jobs on Wall Street as the credit crunch bites into business at financial institutions over the next two years. New York’s Independent Budget Office, a non-partisan agency which scrutinises the city’s finances, estimates that profits on Wall Street fell by 80% during 2007 to ,2-billion — the lowest level since 1994.

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/ 24 March 2008

Oil prices drop amid US economic concerns

Oil prices slipped more than a barrel on Monday as traders worried that the flagging United States economy would cause oil demand to soften. Oil’s sharp decline started last week. Crude futures started plunging after the US Federal Reserve-backed sale of Bear Stearns to JPMorgan Chase created fears of deeper economic problems.

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/ 22 March 2008

Central banks in mortgage crisis talks

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,

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/ 19 March 2008

Fed delivers large US rate cut, markets rally

The Federal Reserve slashed United States interest rates by a hefty three-quarters of a percentage point on Tuesday, giving a lift to stock markets already jubilant over stronger-than-expected investment bank earnings. Trying to avert a deep recession and financial market meltdown, the central bank cut less than many traders had expected but left the door open to additional reductions.

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/ 17 March 2008

Bank woes, money squeeze batter stocks, dollar

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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/ 17 March 2008

JP Morgan to buy Bear, Fed opens lending to Wall Street

JP Morgan Chase set a deal to buy stricken rival Bear Stearns for a rock-bottom price, while the United States Federal Reserve expanded lending to securities firms for the first time since the Great Depression to prop up the financial system. The shock news, the biggest sign yet of how devastating the credit crisis is for Wall Street, slammed the US dollar to a record low against the euro,

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/ 15 March 2008

Credit-crunch woes claim fifth-biggest US bank

The global credit crunch claimed its biggest victim yet on Friday when the United States Federal Reserve orchestrated an emergency bail-out for Bear Stearns after a cash crisis prompted a run on the US’s fifth-biggest investment bank. President George Bush sought to calm fears of a deep recession in the world’s biggest economy.

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/ 30 January 2008

Crisis inflicts fresh wounds, UBS cut deepest

Fresh write-offs at big European and Japanese banks on Wednesday drove investors’ attention firmly back onto the credit crunch after days gazing at Société Générale’s stunning losses, which it blames on a junior trader. With the Federal Reserve expected to cut interest rates for the second week running, Swiss bank UBS illuminated the depth of the crisis.

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/ 17 December 2007

Stocks slide as US rate-cut hopes fade

World stock markets slumped on Monday on worries that resurgent United States inflation would reduce the chances of further US interest rate cuts to shield the economy from a credit crunch, dealers said. European and Asian shares sank into the red with losses of up to 3,5% as investors took their cue from Wall Street’s sell-off on Friday.

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/ 1 October 2007

World credit crunch claims another victim

UBS AG, the world’s largest wealth manager, unveiled $3,4-billion in losses, has swept out senior managers and slashed jobs in one of the biggest casualties yet of the worldwide credit crunch. UBS said on Monday it will write down a net four billion Swiss francs ($3,42-billion) in its fixed-income portfolio and elsewhere.

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/ 19 September 2007

Lehman takes $700m hit from credit crunch

The Wall Street investment bank Lehman Brothers has revealed that the global credit crunch knocked -million off its revenue over the summer as mortgage-backed securities plummeted in value. Lehman blamed an ”extremely difficult environment” in global financial markets for a 3% drop in its third-quarter profits to -billion.