Yen Set for Biggest Gains in 10 Years as Carry Trade Evaporates
The yen headed for its biggest weekly gain in a decade against the dollar as the global stock- market rout caused investors to sell higher-yielding assets funded with the Japanese currency.
Global crisis claims Japan insurer, markets panic
Government ministers played down the risk of contagion from the collapse of an unlisted, small insurer in Japan, which has been a safe haven in a global crisis that has destroyed banks across the United States and Europe.
Morgan Stanley Under Pressure on Mitsubishi Worries
Shares of Morgan Stanley have lost nearly half their value in the last three days, on worries Mitsubishi UFJ may back out of injecting the much-needed capital.
Iceland, in Financial Collapse, Is Likely to Need I.M.F. Help
Such a move, which would make this small island nation the first sovereign state to fall victim to the credit squeeze that began last year, would require it to accept harsh measures to restore fiscal and monetary stability.
Citi Ends Wachovia Talks but Sees Court Settlement
Citigroup said it’s ended negotiations with Wells Fargo in their fight to acquire Wachovia—but Citigroup’s effort to grab some assets of Wachovia may not be over just yet.
Russia approves $86bn bank rescue
Russia’s lower house of parliament, the Duma, has approved a raft of measures worth $86bn (£51bn) to assist banks hit by the credit freeze.
Singapore slides into recession
The south-east Asian country’s economy contracted by 6.3% in the third quarter, on an annualised seasonally adjusted basis, having shrunk by 5.7% in the second quarter of 2008. This forced the government to cut its growth forecast for this year from 4%-5% to 3%. Analysts had expected a small rise in GDP.
IEA Cuts World Oil Demand Forecast on Weak Economy
The International Energy Agency (IEA) on Friday cut its oil demand growth forecast for 2008 to the lowest rate in 15 years, citing economic weakness and “a spiralling liquidity crisis”.
