Wall Street was up, then down and finally ended the day's agony flat and unattractive. Volume was a tad higher than usual, but the bulls won the tug-a-war today as investors await the Fed rate decision. WTI crude prices remained steady as did the US dollar.
(Reuters) - Verizon Communications Inc disappointed Wall Street on Tuesday by reporting a smaller-than-expected subscriber gain for its main wireless business, while its CEO gave few details about plans to increase revenue from its planned purchase of Yahoo Inc's internet assets.
NEW YORK (Reuters) - Goldman Sachs Group Inc was sued on Tuesday by a major shareholder of a Malaysian bank it once advised, and which accused the Wall Street bank of fraudulently shortchanging it in a merger to curry favor with that country's prime minister.
SAN FRANCISCO (Reuters) - The U.S. Federal Reserve is expected to keep interest rates unchanged this week, deferring any possible increase until September or December, as policymakers hold out for more evidence of a pickup in inflation.
SEOUL (Reuters) - At last February's Super Bowl, Hyundai Motor hired 'X-Men' movie star Ryan Reynolds for an ad plugging the new version of its Elantra sedan. Not in the script: a slide in first-half sales of the South Korean automaker's U.S. mainstay.
WASHINGTON (Reuters) - New York state's attorney general on Tuesday said his office will not comply with a subpoena issued by U.S. congressmen for details on its probe of whether Exxon Mobil misled investors on climate change risks, saying it interferes with the state's "sovereign" interests.
BRUSSELS (Reuters) - The European Commission will launch an arbitration procedure to resolve a dispute between Norwegian Air Shuttle and U.S. regulators over the budget carrier's wish to fly to the United States from Ireland, two sources said.
As we noted over the weekend, Italy's bank stress test the result of which is due out on Friday, is a "near-term stress event", and one which Italy's most troubled bank, Monte dei Paschi di Siena, is expected to fail. It is Monte Paschi's massive non-performing debt load that is also the reason why over the past month Italy's Prime Minister Matteo Renzi has been desperately spinning Brexit as a catalyst event which would get Germany's blessing to enact a taxpayer-funded, public, bailout of not just the world's oldest, and Italy's third largest, bank but also of the entire Italian banking sector. Alas that has not panned out as expected, and Italy never got Germany's - or Dijsselbloem's - permission to launch another TARP.
Which explains why moments ago the FT reported that Italy was last night "racing to secure a privately backed bailout of Monte dei Paschi di Siena, the most exposed of the country's troubled lenders, including a plan to raise 5 billion of fresh capital so as to avert nationalisation, according to bankers and European officials."
As a reminder, Monte Paschi has been bailed out by the state twice has raised over 8 billion of capital in the past two years, money which it quickly burned through, and as of this moment it has a market cap of just over 800 million. In other words, all else equal, the Sienna bank is looking at dilution of nearly 90%. Which would be a concern if the stock wasn't already trading as if it was insolvent, and if it hadn't been halted already over the past two days despite a recent short-selling ban which did absolutely nothing to the bank's long-term prospects.
This article by David Haggith was first published on The Great Recession Blog.
The crude oil price rally has been completely crushed, though I'll admit I was wrong when I predicted crude oil prices would plummet in March or April as the perfect storm developed against oil prices. Instead, they rallied. In spite of that, I continued to believe my error was in timing and not in fact — not in the fact that a another harsh fall in oil pr ...
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