Merrill Lynch; UBS; BNP Paribas; Centex
Overnight... Asia: Hong Kong Hang Seng -2.6%; Japan Nikkei 225 -1%; China CSI -1%; Korea Kospi -3%; India Bensex -1.8%; Australia ASX -1.7%.
Europe: France CAC -1.7%; Germany DAX -0.3%; UK FTSE -0.9%... Reporting in line... Kellogg, Kraft, Merck topping. After the bell, Amazon, Pulte, Starbucks.
After the securities led to a record $24 billion loss... Merrill Lynch, worlds largest brokerage,
was the biggest underwriter of CDOs from 2004 through 2006, today...
announcing plans to exit the business of underwriting CDO collateralized debt obligations and other structured credit products.
On a $14 billion write down...UBS, Europe's largest bank by assets,
had a record Q4 net loss of $11.4 billion, and its first ever annual loss of $2 billion.
Jeremy Sigee, Citigroup analyst comments on what will be a common theme in 2008:
"Value declines have extended beyond just subprime-related exposures,
to new areas, for which we do not yet have disclosure on exposure size.
The recently bolstered capital base remains vulnerable to further erosion."
After $871 million of credit costs.. BNP Paribas, France's largest bank,
reported a 42% decline in Q4 profit. BNP took $670 million in provisions linked to a rise in counterparty risk for bond insurers.
Florian Esterer, at Swisscanto Asset Management in Zurich comments on what is already a common theme in risk mitigation:
"Risk management must have been non-existent as they seem to find massive exposure in all sorts of pockets."
After it reported a loss of nearly $1 billion in Q3... Centex, #2 US homebuilder, with shares shedding 9.1%,
reported a $975.2 million Q3 loss as revenue -30%; new orders -10%; average price -11%; backlog -36%; backlog value -47%.
Centex wrote down $554 million in land and property values in the quarter and has cut more than 40% of its workforce
Europe: France CAC -1.7%; Germany DAX -0.3%; UK FTSE -0.9%... Reporting in line... Kellogg, Kraft, Merck topping. After the bell, Amazon, Pulte, Starbucks.
After the securities led to a record $24 billion loss... Merrill Lynch, worlds largest brokerage,
was the biggest underwriter of CDOs from 2004 through 2006, today...
announcing plans to exit the business of underwriting CDO collateralized debt obligations and other structured credit products.
On a $14 billion write down...UBS, Europe's largest bank by assets,
had a record Q4 net loss of $11.4 billion, and its first ever annual loss of $2 billion.
Jeremy Sigee, Citigroup analyst comments on what will be a common theme in 2008:
"Value declines have extended beyond just subprime-related exposures,
to new areas, for which we do not yet have disclosure on exposure size.
The recently bolstered capital base remains vulnerable to further erosion."
After $871 million of credit costs.. BNP Paribas, France's largest bank,
reported a 42% decline in Q4 profit. BNP took $670 million in provisions linked to a rise in counterparty risk for bond insurers.
Florian Esterer, at Swisscanto Asset Management in Zurich comments on what is already a common theme in risk mitigation:
"Risk management must have been non-existent as they seem to find massive exposure in all sorts of pockets."
After it reported a loss of nearly $1 billion in Q3... Centex, #2 US homebuilder, with shares shedding 9.1%,
reported a $975.2 million Q3 loss as revenue -30%; new orders -10%; average price -11%; backlog -36%; backlog value -47%.
Centex wrote down $554 million in land and property values in the quarter and has cut more than 40% of its workforce
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