Takeaways for Today (11/07/2007)
Prospect of $100 oil turning into reality
As oil approached $100 a barrel yesterday, the key question was whether fundamentals or financial flows were driving the price higher.
If the main force is financial flows, the price could be inflated artificially and it could fall sharply once hedge fund take profits. In other words, the current price rally would be unlikely to inflict lasting damage on the world economy.
Energy bulls the charge as supplies fall
Oil’s seemingly inexorable march to $100 a barrel stumbled Wednesday with the release of the latest US weekly inventories data.
Silver rose 1.2 per cent to $15.56 a troy ounce after hitting a 27-year high at $16.19 on Wednesday but profit-taking pulled platinum down 1.2 per cent to $1,456 after reaching a record $1,482 earlier in the session.
Uranium prices jumped by 6 per cent to $90 a pound for the week ending November 5 following news of two major production delays.
Coffee prices remain in focus amid concern about a supply squeeze.Liffe November robusta futures dipped $10 to $2,425 a tonne, while the December contract slipped $20 to $1,950 a tonne.
Gold surges amid flight to security
Gold rose within five dollars of its record of $850 a troy ounce on Wednesday, leading a rally for other precious metals with platinum continuing on its record breaking run, hitting $1,482 a troy ounce and silver reaching a 27-year high.
Wall Street sinks as credit fears rise
Stocks tumbled on Wednesday as a probe of the home loan industry by New York's attorney general drew in the country's biggest mortgage finance companies and Washington Mutual Inc warned the housing downturn would extend well into next year.
MorganStanley Reveals $3.7 billion Subprime Hit
The drumbeat of subprime losses continued on Wall Street on Wednesday. After the closing bell, Morgan Stanley said it had suffered $3.7 billion in losses over the last two months on its portfolio of mortgage-related investments.
Cisco profit up, but shares dip on outlook
Network equipment maker Cisco Systems Inc (CSCO.O: Quote, Profile, Research) posted a 37 percent rise in quarterly profit on solid demand from telecoms carriers, but its shares fell 9 percent on concerns about its outlook amid U.S. economic weakness.
GM Turnaround shown off-track
General Motors Corp.'s $38.96 billion third-quarter net loss underscores a tough reality for the auto maker: Despite two years of restructuring, it can't seem to keep its turnaround on track.
What's more, the Detroit auto maker is giving little indication its performance will improve in the near term.
Amex says reaches deal with Visa
American Express (AXP.N: Quote, Profile, Research) on Wednesday said it had reached a settlement with Visa, removing Visa from a lawsuit American Express had filed against rivals for anti-competitive practices.
Under the agreement, Visa will pay a maximum of $2.5 billion, American Express said.
Rupert Murdoch's News Corp (NWSa.N: Quote, Profile, Research) said on Wednesday its quarterly operating profit rose 23 percent on strong box office sales of "The Simpsons" and a rise in Fox News ad sales and affiliate revenue.
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Labels: Takeaways for Today
This entry was posted by David Choi, on
Wednesday, November 7, 2007.
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