| Bernanke Faces His First Big Financial Test
WASHINGTON -- Turmoil in financial markets amid deepening concern about a credit squeeze is leading investors increasingly to expect the Federal Reserve to cut interest rates. But many economists question if the central bank will -- and should -- act. Some economists, such as Maria Fiorini Ramirez, who runs her own economic consulting firm in New York, say the Fed should cut rates to help restore confidence in a financial system quivering amid the subprime mortgage mess. "In times of crisis, you need someone to stand up and say, ... 'We'll do what is needed,'" she says. But others argue that the problems in the financial markets are not spilling over into the broad economy. And with Fed Chairman Ben Bernanke and his colleagues continuing to focus on bringing down inflation, a rate cut now doesn't make sense, they argue.
Magna Entertainment Corp. announces results for the second quarter ended June 30, 2007, Strategic Review of Assets and ...
AURORA, ON, Aug. 9 /PRNewswire-FirstCall/ - Magna Entertainment Corp. ("MEC") (NASDAQ: MECA; TSX: MEC.A) today reported its financial results for the second quarter ended June 30, 2007. ------------------------------------------------------------------------- Three Months Ended Six Months Ended June 30, June 30, --------------------- --------------------- 2007 2006 2007 2006 ---------- ---------- ---------- ---------- (unaudited) Revenues(i) $ 203,063 $ 179,716 $ 487,237 $ 457,242 Earnings before interest, taxes, depreciation and amortization ("EBITDA")(i) $ 3,459 $ 1,295 $ 27,675 $ 26,295 Net income (loss) Loss from continuing operations $ (23,437) $ (27,331) $ (20,968) $ (24,983) Income from discontinued operations(ii) - 993 - 857 ------------------------------------------------------------------------- Net loss $ (23,437) $ (26,338) $ (20,968) $ (24,126) ------------------------------------------------------------------------- Diluted earnings (loss) per share Continuing operations $ (0.22) $ (0.26) $ (0.19) $ (0.23) Discontinued operations(ii) - 0.01 - 0.01 ------------------------------------------------------------------------- Total diluted loss per share $ (0.22) $ (0.25) $ (0.19) $ (0.22) ------------------------------------------------------------------------- (i) Revenues and EBITDA for all periods presented are from continuing operations only.
Fed leaves key interest rate unchanged; concerns about inflation play into decision
WASHINGTON — The Federal Reserve chose not to lower a key interest rate Tuesday as worries about inflation trumped concerns about turbulent financial markets. Chairman Ben Bernanke and his colleagues voted unanimously to keep the target for the federal funds rate, the interest that banks charge one another, at 5.25 percent, where it has been for more than a year. .
Manulife Financial Corporation reports record second quarter earnings of $1.1 billion
Manulife Financial Corporation today reported record shareholders' net income of $1,102 million, an increase of 15 per cent over the second quarter of last year. Fully diluted earnings per share were $0.71, up 18 per cent from one year ago. As well, adjusted return on common shareholders' equity(1) was 18.5 per cent, an increase of 220 basis points. Second quarter premiums and deposits rose to $16 billion, an increase of five per cent over last year when considered on a constant currency basis. Growth was a result of continued strong sales and growth in recurring premiums and deposits. "The second quarter was a solid one for our Company," said Dominic D'Alessandro, President and Chief Executive Officer of Manulife Financial. "Our businesses continued to deliver strong earnings and sales growth and our return on equity hit a post-merger record.
Interest rates unchanged in RBI's new credit policy
That should be good news for those paying back home loans in particular or is it? "I think the home loan and credit rates should not be affected. The RBI has done a fabulous balancing act," said CMD of Bank of Baroda Anil Khandelwal. The good news is on the interest rates front as the RBI has refrained from increasing interest rates two times in a row with the Bank rate remaining at 6 per cent, the repo rate at 7.75 per cent and the reverse repo rate untouched at 7 per cent. But the Cash Reserve Ratio (CRR) has been increased by 50 basis points to 7 per cent. .
Private banks hope to cut home loan rates
High liquidity and inflation remaining below 5 per cent for six weeks in a row have raised banks' hopes for a cut in home loan rates after the credit policy review on July 31. But it is unlikely to be broad-based cut with public sector banks preferring to remain away from slashing rates. Private banks, which effected severe hikes over the last few months, however, may slash them. The Reserve Bank of India (RBI), however, is not likely to signal reversal of upward trend in interest rates in the upcoming credit policy review on July 31, according to experts. The reversal in benchmark interest rates like reverse repo rate and repo rate could be seen only by the year-end, they say. “Public sector banks have been quite considerate of home loan borrowers. We did not hike rates twice when private banks did so.
Home loan standards tightened
Washington — A majority of the nation's banks have tightened lending standards on subprime mortgages, the Federal Reserve said Monday in a survey that provided further evidence of the spreading problems in mortgage lending. The Fed said it found that 56.3 percent of banks responding to a survey reported they had tightened their lending standards for subprime mortgages, loans offered to borrowers with weak credit histories. The survey found 40.5 percent of banks responding said they had tightened loan standards for so-called nontraditional mortgages. The Fed defines this category as adjustable-rate loans with multiple payment options, interest-only mortgages and products referred to as Alt-A loans that offer such features as limited verification of incomes. The Fed survey found that even on prime loans, which offer traditional payment options such as 30-year mortgages to borrowers with strong credit histories, 14.3 percent of the banks responding said they had tightened their lending standards "somewhat." The Fed's latest quarterly survey of bank loan officers found them responding to growing troubles in subprime mortgage lending.
Fed leaves key interest rate unchanged
The Federal Reserve left a key interest rate unchanged on Tuesday as worries about inflation trumped concerns about turbulent financial markets. Fed Chairman Ben Bernanke and his colleagues voted unanimously to keep their target for the federal funds rate, the interest that banks charge each other, at 5.25 percent, where it has been for more than a year. The Fed decision came after a volatile couple of weeks on Wall Street as investors have been beset by troubles in global credit markets stemming from a sharp rise in defaults on subprime mortgages. In a brief statement, the Fed acknowledged the turbulence and said the downside risks to the economy had "increased somewhat." But the Fed continued to state that the predominant risk remained that inflation "will fail to moderate as expected." Many analysts believe the Fed will remain on hold through the rest of this year, preferring to watch and make sure that inflation moderates back to an acceptable level.
|
