Europe Gains, DAX recedes
The DAX was alone across major indices overnight -128.62, led down largely by the volatility in VW while the rest of Europe saw gains led largely by financials. Additionally, it would appear that the FTSE is looking across the pond for a rate cut, after posting modest gains (5.1%).
Nikkei goes activist
The Nikkei rose 7.7% overnight on rumors that BOJ would be posting a rate cut at Friday's meeting. Gains are of course welcome in the Nikkei, which after a rough month of trading somewhat resembles a hooker trapped in a snow storm.
Porsche to sell part of VW
Porsche reports that it will "sell 5 per cent of VW to try to avoid "further market distortions" that had threatened the survival of some hedge funds." It appears that the Frankfurt exchange will be adjusting the weighed value of VW from 27% to 10% to limit future exposure/volatility.
Wall St Leaders Say New, Not More, Regulation Needed
Adventures in patently obvious statements:
"One thing is clear within firms and externally: no one knew just how leveraged these firms were," Mr. Pitt said, observing that chief executives announced write-downs within weeks of denying they had an exposure problem.
US Futures down
After yesterday's rise, the second biggest in DJI history, it looks like we could be off to a slow start this morning. We've got earning reports from a slew of food and household staples manufactures, not to mention the Wachovia wunderkind, Prudential. Other highlights of the day include: the possible Federal Reserves rate cute, durable goods numbers for September are down 1.2%, and The Mortgage Bankers Association is going to release their data on lending figures.
FT has an article by George Soros that addresses such scintillating topics as the asymmetric effects of the current credit crunch, and possible IMF resolve to help periphery countries through the turmoil.
In Chicago, Trump Hits Headwinds
Caption Contest Wednesday: