Bloomberg:
The cost of borrowing dollars for three months in London fell, capping the first monthly decline since May, after central banks provided cash and cut interest rates to unlock the supply of credit. The London interbank offered rate, or Libor, for such loans slid 16 basis points to 3.03 percent today, the 15th consecutive drop, according to the British Bankers' Association. The overnight rate decreased 32 basis points to an all-time low of 0.41 percent, down from almost 6.88 percent on Sept. 30. ``The situation in the money markets has improved after all the actions by central banks,'' said Patrick Jacq, a senior fixed- income strategist in Paris at BNP Paribas SA. ``Given the point that we were at and where we are now, it seems the worst might be behind us.''
- The European Central Bank has embarked on the fastest round of interest-rate cuts in its history as the financial crisis threatens to cripple the economy, a survey of economists shows. The Frankfurt-based ECB will slash its benchmark rate to 2.5 percent by April, according to the median of 28 forecasts in the Bloomberg News survey. That would see the rate drop 1.75 percentage points from its 4.25 percent peak in six months, outpacing the ECB's last easing cycle between May 2001 and June 2003.
- Interest rates on U.S. commercial paper fell to about the lowest in four years after the Federal Reserve said it absorbed more than 9 percent of the market. Interest rates on the highest-ranked 30-day commercial paper dropped 39 basis points to 2.02 percent, about the lowest in four years, according to yields offered by companies and compiled by Bloomberg. Yields on overnight and seven-day paper fell to the lowest levels in at least 13 years, Bloomberg data show. The U.S. commercial paper market expanded for the first time in seven weeks as the Fed purchased $145.7 billion of 90-day paper from companies including American Express Co. and General Electric Co., part of its efforts to free up lending. Commercial paper sales seized up after Lehman Brothers Holdings Inc. filed for bankruptcy on Sept. 15, prompting investors to seek safety. The program has ``worked extremely well,'' said Randy Harrison, managing director and co-head of short-term products at New York-based Citigroup Inc.
- Investors withdrew a record $70.7 billion from US Redemptions by individual investors and institutions jumped 26% from the previous high of $56 billion in September.
- Mark Fleming, chief economist at First American CoreLogic, says FDIC plan may stem foreclosures. (video)
- JPMorgan Chase & Co.(JPM), the largest U.S. bank by market value, plans to modify terms on $110 billion of mortgages and forgo foreclosure proceedings on all real-estate loans while the changes are implemented in the next 90 days. The offer extends to customers of Washington Mutual Inc., the savings and loan JPMorgan agreed to buy last month, the New York-based bank said today in a statement. Loan modifications may include interest-rate or principal reductions. The bank said it will establish 24 regional counseling centers to provide face-to- face help in areas with high delinquency rates.
- Commodities headed for their worst month since at least 1956 on concern that a slump in global economic growth will sap demand for raw materials. The Reuters/Jefferies CRB Index of 19 raw materials has plunged 24 percent this month, the steepest decline in at least a half-century. Crude oil is set for a record monthly drop, copper its biggest retreat in two decades and gold its worst performance in 25 years.
- Gold futures fell, heading for the biggest monthly plunge in 28 years, as the dollar climbed, reducing the appeal of the precious metal as an alternative investment. This month, the price has dropped 17 percent, the most since March 1980. Gold may fall to $620 should the dollar strengthen to $1.20 against the euro, said Joel Crane, a metals strategist at Deutsche Bank AG in New York. ``Cash is just more predictable than gold now,'' he said.
- Russia's ruble had its biggest monthly decline in 9 1/2 years against the dollar as the global credit crunch reduced demand for emerging-market assets. Investors took $72 billion out of Russia in October, according to BNP Paribas SA, sending the Micex Index 30 percent lower and pushing the yield on the 30-year government bond to a seven-year high. A decline in oil spurred banks such as Citigroup Inc. to predict the ruble will be devalued.
- The Federal Reserve Bank of New York said it's ``hopeful'' that one or more credit-default swap clearinghouses will begin guaranteeing trades in November or December as it pushes dealers to reduce market risks.
Wall Street Journal:
- The NYSE is easing its rules on specialists to allow them to place orders for 30 minutes after the closing bell in a bid to curb violent last-minute price swings, citing a regulatory filing.
- ECB, BoE Must Loosen Monetary Policy to Aid Recovery
- Firms have been paring down a massive inventory of credit-default swap holdings as regulators continue a push for a central clearinghouse for the often-opaque market. Data released Friday by the International Swaps and Derivatives Association showed that credit default swap contracts tied to around $25 trillion in debt have been torn up in the year to date.
NY Times:
Walt Disney(DIS) is focusing on its nascent Fairies business to drive growth
- Google(GOOG) Ads Will Be More Prominent.
Dallas Morning News:
- Hedge fund operator and oil prognosticator T. Boone Pickens liquidated one of his hedge funds last month as the stock markets plunged. The Dallas billionaire converted his energy equity fund to cash and offered investors the opportunity to withdraw their money early. The fund started with $2 billion and could be down to around $400 million to $500 million after withdrawals, according to someone familiar with the fund. The fund was down 60 percent this year after heady gains in previous years. Mr. Pickens' commodity fund has lost 84 percent of its value this year.
AP:
- AP poll: 1 in 7 voters still persuadable
International Herald Tribune:
- Dozens of hedge funds have told investors that they cannot get their money back right now as managers try to limit a wave of redemptions to safeguard all their clients' investments - as well as their own futures. Only a few months ago, hundreds of the world's estimated 9,000 hedge fund managers made it tough for wealthy investors to put money into their funds by requiring minimum investments of $1 million or more and charging heavy fees. Now managers are making it hard for investors to get out.
Globe and Mail:
He’s the first call on The Street. He can raise $40 million in two minutes. And now hedge-fund superstar Rohit Sehgal is afraid to open his e-mail.
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