Good and bad news this morning. Good news: CPI in line with expectations. --More relief on the subprime front. UBS said they do not expect a major write-down of subprime-related exposures.
Barclays, Britain's third-biggest bank, unveiled a 1.3 billion pound ($2.7 billion) writedown on its exposure to credit market problems on Thursday, less than was feared.
European benchmark stock indexes are expected to open mostly down on Thursday in a session likely to be dominated by French earnings and key inflation data for the United States and the euro zone that could dictate the central banks' next move.
Banks worldwide may lose as much as $400 billion from subprime mortgages, as at least one in four of the risky home loans go into default, analysts said on Monday.
Here's what I see this Monday morning:1) U.S. dollar finally showing some strength on weakness overseas, Hong Kong at a 6 week low, about 12% from historic high. 2) Jitters in tech land. All those momentum traders piling into techs in the last couple months are nervous.
Europe's biggest bank HSBC is this week expected to unveil a further big hit from its exposure to the U.S. mortgage crisis.
British bank Barclays categorically denied rumors it was about to announce a $10 billion writedown and see its top management quit, after such market talk sent its shares tumbling over 9 percent.
Leading European bank stocks tumbled on Friday as worries mounted that the U.S. subprime crisis has taken a sharp turn for the worse and will force another round of hefty writedowns of bank exposures.
Shares in British bank Barclays fell heavily in morning trade Friday and were among the biggest losers in Europe on market talk of funding worries and concern that Britain's third-biggest bank was guiding down numbers.
Banks and other financial institutions have expressed interest in providing more than $60 billion towards a super-sized fund aimed at bailing out structured investment vehicles, The Wall Street Journal reported on Sunday.
A manager at Royal Bank of Scotland will replace ABN Amro CEO Rijkman Groenink as the RBS-led consortium buying the Dutch bank in the industry's largest takeover took the first step in the process of carving it up.
A Royal Bank of Scotland-led trio of banks said its offer to buy ABN Amro had beenaccepted by around 86% of the Dutch bank's shareholders, paving the way for the consortium to clinch the $101.6 billion acquisition, the biggest banking takeover ever.
Investors representing 85% of shares in ABN AMRO have accepted a 70-billion-euro ($99 billion) bid for the Dutch bank from a consortium led by Royal Bank of Scotland, the Financial Times said.
Royal Bank of Scotland has effectively completed the financing for its part of the ABN Amro takeover, raising 5 billion euros ($7 billion) in the biggest fundraising of its type on record.
A group led by Royal Bank of Scotland has doubled its stake in ABN Amro to more than 8%, cutting the cost of its takeover bid for the bank by about 1%, the Financial Times reported on Wednesday.
The U.K.'s top banks are mulling borrowing funds from the Bank of England's 10 billion pounds ($20 billion) facility to remove the stigma attached to it and restore confidence in the banking system, the Financial Times reported Friday.
Belgium's Fortis, one of three banks bidding as part of a consortium to buy ABN Amro Holding, released details of a 13.2 billion euros ($18.4 billion) share issue Friday to raise cash to fund its part of the takeover.
British bank Barclays' bid for ABN Amro, one of two offers for the Dutch bank, is too low to be recommended to shareholders, ABN's chief executive said on Thursday.
Barclays stood by the value of its takeover bid for ABN Amro Friday, saying the rival consortium led by Royal Bank of Scotland, which submitted a higher offer, could find it difficult to raise funds in the tight lending conditions, Reuters reported.
Barclays Private Equity, the private equity arm of U.K. bank Barclays, raised 2.4 billion euros ($3.3 billion) for its third European fund, with the level of commitment from investors exceeding expectations, the bank said in a statement.