 |
|
No to anti business regulation
|
I believe so called Obama plan is against the basic American values such as economic liberties and the way of doing business based on the free will.If the banks take excess risks,let them perish next time.I do not understand the necessity of building anti-business regulations.Meanwhile,I support Bernanke's re election as an economist.
With profit taking,even in Europe the effects of so called Obama plan has been realized. European stocks this past week fell by the most in almost three months after U.S. President Barack Obama called for a limit on risk-taking by banks and concern mounted that China will take measures to stem economic growth.
Barclays Plc, Societe Generale SA and Bank of Ireland Plc led a gauge of bank stocks to a five-month low as Obama proposed that the size and trading activities of financial institutions should be limited. Rio Tinto Plc and Antofagasta Plc both sank more than 8 percent as copper slid for a second week.
The Dow Jones Stoxx 600 Index erased all of its gains for the year this past week, dropping 2.6 percent to 249.91, the sharpest weekly retreat since October. Even so, the benchmark is still up 58 percent since March, driven by record-low interest rates, about $12 trillion committed by governments worldwide and optimism about economic growth and corporate profits.
Equity markets have climbed far higher than many expected and a bout of profit-taking is due.Obama’s proposals “have really jolted the equity markets. Their implementation may not see the light of day but they might continue to affect sentiment towards banks.
Stocks also fluctuated as more than 60 companies in the Standard & Poor’s 500 Index reported fourth-quarter results this week in the U.S. Some of the biggest banks including Citigroup Inc., Bank of America Corp., Morgan Stanley and Goldman Sachs Group Inc. posted results.
National benchmark indexes fell in all 18 western European markets. The U.K.’s FTSE 100 retreated 2.8 percent, while Germany’s DAX fell 3.1 percent and France’s CAC 40 slid 3.4 percent.
Bank shares tumbled 6.2 percent to the lowest since August last year, amid concern Obama’s plans to rein in banks will hurt earnings. The proposed reforms include a ban on financial institutions running proprietary trading operations or investing in hedge funds and private equity funds.
Barclays, the U.K.’s second-biggest bank, and France’s Societe Generale both sank 13 percent. Credit Suisse Group AG, Switzerland’s biggest bank by market value, declined 9.5 percent.
Basic-resource stocks this week lost 5.5 percent amid fears China, the world’s largest user of industrial metals, may raise interest rates. Reports showed Chinese inflation accelerated to a more-than-forecast 1.9 percent in December and gross domestic product climbed 10.7 percent, the fastest pace since 2007.
Rio Tinto, the world’s third-largest mining company, sank 8.1 percent, as did Antofagasta, the owner of copper mines in Chile. Kazakhmys Plc, Kazakhstan’s biggest copper producer, retreated 8.2 percent.
Drug stocks were among just two industry groups to rise this past week, along with food and beverage shares. The gauge gained 0.9 percent as investors speculated Obama’s plan for health-care overhaul in the U.S. will be derailed after the Democrats lost a key Senate seat.
|
| Tarih
: 1/24/2010 |
|
|
View
All |
|
|
|
|
 |
|
Untitled Document
| |
 |
| |
 |
Copyright
© 2006 Mert TOKER All Rights Reserved. |
|
|
