Hartmut Issel from UBS Wealth Management says the contrarian trade is one of the bank's technical overweight positions. » Read More
Sometimes weekend newspaper pickups go nowhere and sometimes you hit pay dirt. This morning, putting together "Squawk Box Europe", the team debated the merits of a story carried by the Swiss weekly the Sonntagszeitung. It said UBS management held an unscheduled board meeting at the weekend and could announce more sizeable writedowns.
Futures lower this morning on pressure from the financials. The UBS headline for the bank analyst report this morning tells the story: lower earnings ahead. They are adjusting their 2008 earnings expectations for many banks and brokers.
Fed Pres Donald Kohn moved futures 5 points up at 8 am ET by saying that if tighter credit conditions made credit more expensive and discouraged spending, it "would require offsetting policy action." This seems to imply more rate cuts, whether of the fed funds type or the discount rate.
Shares in Swiss-based bank UBS tumbled temporarily on Tuesday on renewed fears the group may have to make more hefty writedowns for exposure to assets hit by the subprime crisis.
The floor of the NYSE is buzzing with nervousness and excitement. Specialist firm Van der Moolen has announced they are exiting the business; rumors that other big specialist firms will exit are rampant. Is this it? Will the fabled NYSE floor survive?
Several financial institutions have been telling investors that subprime losses may not be as big as feared. Yet many wonder if it's all just wishful thinking.
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.
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.
Plus, Cramer answers questions about Oceaneering International, Lululemon and UBS.Investing can be confusing. Luckily, Cramer has mapped out some road rules for all you Home Gamers trying to navigate the jungle that is Wall Street. Think of it as "Mad Money 101" –- some fundamental advice to keep in mind as you play the market. Whether you're a first time investor or a seasoned financier, it's always good to remember the basics.
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.
UBS reported a bigger-than-expected third-quarter pretax loss of 726 million Swiss francs ($624.8 million) on Tuesday, but said it expected to turn in a group profit in the last quarter.
Markets dealing with several issues this morning. 1) The S&P/Case Shiller Home Price Index August fell 4.4% year over year. This is the biggest decline since the series began 6 years ago. The index is a composite that tracks twenty U.S. cities.
Here are my morning thoughts: Markets: The entire Street is expecting a 25 basis point cut in the Fed funds rate, and at least that much in the discount rate. A small but vocal minority believe that a 50 basis point cut is more appropriate, given the evidence of a slower economy and the recent return of a choppier credit market.
Stocks closed broadly higher as expectations of a Fed rate cut offset concerns about the dollar hitting new lows and oil reaching new highs.
The latest warning by UBS that it may face more writedowns, as well as last week's announcement by Merrill Lynch that it would have to write down $8.4 billion, show that the weakness in the financial sector is set to continue, analysts told CNBC Monday.
A flood of economics and earnings reports will quickly dominate the week; already there are a few companies sounding familiar themes. 1) Subprime bleeds into the current quarter for financials. UBS saying their third-quarter loss would be in line with the lowered guidance they gave earlier this month.
Ahead of the Fed, stocks are holding onto higher ground as oil breaks another record and the dollar flounders. But the high interest story on Wall Street is the behind-the-scenes intrigue at Merrill Lynch as its board struggles to orchestrate the departure and replacement of Merrill Lynch CEO Stan O'Neal.
Piper Jaffray, an investment bank focused on midsized companies, on Wednesday said third-quarter operating profit fell 49 percent, hurt by turmoil in credit markets.
Citigroup said third-quarter profit fell 57 percent, hurt by losses and writedowns for subprime and leveraged loans, fixed-income trading and weakness in its consumer business.