Ship of Fools: Citigroup; Mexico Raises; UK Record Deficit
Mexican consumer prices rose 5.26% in June,
so the central bank raised its benchmark interest rate for the second straight month, raising 25 bps to 8%.
The U.K. budget deficit ballooned to the widest since records started in 1946. The shortfall was $49 billion in the three months through June.
Net debt stood at 38.3% of GDP in June, up from 37.3% a year earlier and the highest since July 1999. Including the liabilities of Northern Rock...
the mortgage lender taken into temporary state ownership in February after its funding dried up, debt was 44.2% of GDP.
The quarterly deficit was at least the worst since the aftermath of World War II, when the country,
its resources depleted by the six-year military effort, was forced to borrow $4.34 billion from the U.S. to stave off bankruptcy.
Headline reads.. Citigroup's $2.5 billion loss soothes investors... under the sheets, the largest US bank, posted its third consecutive quarterly loss,
-$2.5 billion as revenue -29% on $11.7 billion of write-downs and credit losses tied to deteriorating capital markets and a slumping economy.
Citigroup's investment bank lost $2.04 billion, while consumer banking suffered a $700 million loss.
Credit card profit declined 56% to $467 million, and wealth management profit fell 21% to $405 million.
The Nattering One muses... Great news? Soothing isn't it? Lets just run down all of this weeks soothing news...
Google & Microsoft missed and lowered guidance;
losses; Merrill Lynch -$4.65 billion; CIT Group -$2 billion; MGIC -$97 million; Continental -$3 million; Delta -$1 billion; American -$1.4 billion;
Profit declines JPMorgan -53%, Wells -23%... and now Citigroup have lost -$2 billion.
Without exception posting either a multi billion dollar loss, a substantial decline in profit,
or failing to make the number and disappointing with lowered forward guidance.
Yet, investors are "soothed" because the losses or declines are not as large as anticipated and financials advance 10% this week.
We have three words for you: SHIP OF FOOLS and this is one horror cruise you will want to miss out on.
so the central bank raised its benchmark interest rate for the second straight month, raising 25 bps to 8%.
The U.K. budget deficit ballooned to the widest since records started in 1946. The shortfall was $49 billion in the three months through June.
Net debt stood at 38.3% of GDP in June, up from 37.3% a year earlier and the highest since July 1999. Including the liabilities of Northern Rock...
the mortgage lender taken into temporary state ownership in February after its funding dried up, debt was 44.2% of GDP.
The quarterly deficit was at least the worst since the aftermath of World War II, when the country,
its resources depleted by the six-year military effort, was forced to borrow $4.34 billion from the U.S. to stave off bankruptcy.
Headline reads.. Citigroup's $2.5 billion loss soothes investors... under the sheets, the largest US bank, posted its third consecutive quarterly loss,
-$2.5 billion as revenue -29% on $11.7 billion of write-downs and credit losses tied to deteriorating capital markets and a slumping economy.
Citigroup's investment bank lost $2.04 billion, while consumer banking suffered a $700 million loss.
Credit card profit declined 56% to $467 million, and wealth management profit fell 21% to $405 million.
The Nattering One muses... Great news? Soothing isn't it? Lets just run down all of this weeks soothing news...
Google & Microsoft missed and lowered guidance;
losses; Merrill Lynch -$4.65 billion; CIT Group -$2 billion; MGIC -$97 million; Continental -$3 million; Delta -$1 billion; American -$1.4 billion;
Profit declines JPMorgan -53%, Wells -23%... and now Citigroup have lost -$2 billion.
Without exception posting either a multi billion dollar loss, a substantial decline in profit,
or failing to make the number and disappointing with lowered forward guidance.
Yet, investors are "soothed" because the losses or declines are not as large as anticipated and financials advance 10% this week.
We have three words for you: SHIP OF FOOLS and this is one horror cruise you will want to miss out on.
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