Thursday, November 29, 2007

Today's Headlines

- Bank of England policy maker David Blanchflower said the UK’s benchmark interest rates should “come down now” as growth is poised to slow.
- The subprime crisis that’s caused so much trauma for hedge funds and investment banks has brought only good news for John Paulson. He’s the manager of more than $7 billion in hedge fund money keyed to mortgage credit.

- Treasury Secretary Henry Paulson met with mortgage companies including Wells Fargo(WFC) as regulators press the biggest lenders to change terms of existing subprime home loans before they default.
- The LCDX index, a benchmark of investor confidence in the US leveraged loan market, reached a three-week high on speculation that a Federal Reserve rate cut next month will buoy the market for the rest of the year.
- Goldman Sachs(GS) advised investors to sell gold on expectations turmoil in financial markets will ease and a slump in the dollar will slow. Gold may decline 15-20% next year, Goldman Chief Economist Jim O’Neill said.
- Oil rose $4/bbl. this morning after an explosion cut Canadian oil shipments through Enbridge Inc. pipelines that supply US refiners. However, the commodity plunged into the afternoon on US dollar strength and is $.41/bbl. higher on the day.
- Trex Co.(TWP), the maker of composite decking and fencing materials, posted its biggest gain in NY trading after the company raised forecasts for year-end sales.
- Holiday spending at US retailers climbed 6.5% to $20 billion over the Thanksgiving, according to ShopperTrak RCT Corp.

Wall Street Journal:
- E*Trade Financial(ETFC) said it is getting a $2.55 billion cash infusion from Citadel Investment Group, in a bid to restore confidence and liquidity in the discount brokerage sector.
- Credit Crunch Doesn’t Slow Small Business Growth.
- Venture investments in American clean technology firms reach a new high.
- Skeptic abound, but Hank Paulson says a breakthrough is near that could rescue troubled homeowners.

Washington Post:
- Bill Clinton’s Claim of Opposing Iraq War From Outset Disputed.

Agencia Estado:
- The US may eliminate trade restrictions on Brazilian ethanol by 2009, citing US Representative Gregory Meeks.

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