Stocks losses approached 1 percent off the opening bell on Monday as summer apathy increased, threatening to snuff out the rally of the past three months. A June buyer's strike received more fuel after the World Bank cut its 2009 forecasts for most economies. "We see a very difficult 2009...Unemployment problems are going to continue to linger," said Angel Gurria, the head of the Organization for Economic Cooperation and Development. Read and listen to what the experts had to say...
Worse Stock Correction Coming
“We are going to get a correction worse that what we have seen—quite a bit worse actually,” said Robin Griffiths from Cazenove Capital when taking a technical look at the stock market. “The markets have come up in a V-shape, anticipating the economy will do the same, but the “V” is in the stock market, not the economy,” he said.
Oil, Rates May Stifle Recovery
The price of oil, which is rising too fast, and long-term interest rates that are beginning to creep up are likely to suppress a budding recovery, said Nouriel Roubini of RGE Monitor. He said the recession is going to last through the end of the year for U.S., Europe and Japan and expects a “W-shaped” recovery.
Economy Still in Ill Health
The economy has avoided the worst of the possible outcomes from the credit crisis, but is still not in very good health, said Olivier Blanchard of IMF. “We still have negative growth in the first quarter and we think we’re going to return to zero-growth towards the end of the year,” he said, saying it will take a long time to return to normal growth.
World Bank Sees Most Economies in Deeper Slump
Fed to Keep Rates ‘Easy’
The Federal Reserve will likely keep monetary policy "easy" well into 2010 and until we're sure we're out of deep recession, said Benjamin Pace of Deutsche Bank Private Wealth Management. He said the markets have become a “little too rosy” and we’re going to be reminded that this economy is contracting.
Behind Oil’s Slide
Crude oil is continuing its slide this week, but the commodity is up more than 50 percent so far this year said John Hofmeister of Citizens for Affordable Energy. “I think we’ve passed the top for now—the underlying demand is not there,” he said, saying the expectation of economic growth drove oil past $65.
Mortgage Rates Will Delay Housing Recovery
Buyers are stepping up the bidding pace due to higher interest rate fears, said Dolly Lenz of Prudential Douglas Elliman. Mortgage bankers are seeing almost 25 percent weekly uptick in new applications, she said but if mortgage rates continue to go up, will see pullback in purchases and refinancing.
Your Very Own Portable Bank
Approximately 25.6 million people currently use the mobile banking function through cell phones and it is projected that the number will increase to almost 113 million by 2013. Lisa Stanton of Monitise Americas said mobile banking is growing in popularity and more banks in the U.S. are offering mobile banking options for their customers.
CNBC's Companies in the News:
- Apple Sells More Than 1 Million iPhones
- ChemChina Taps JPMorgan for Dow Chemical Unit Bid
- FTC Requests More Info from Merck, Schering-Plough