business headlines
Stocks slump worldwide
The FTSE 100 bucked the trend, opening little changed after markets in Asia and the US slumped overnight. After the S&P fell over six per cent in New York on a slew of poor corporate earnings, Asia reacted with drops across the board. Worst affected were Hong Kong, where the Hang Seng fell nearly five per cent and Australia, which mirrored weak commodity prices, with the S&P/ASX index falling over four per cent. Worry over Argentina's possible default on debt also weighed on emerging markets.
Why share markets panic 
The banking collapse is all your fault
Sterling in huge sell-off
The pound fell to a five-year low against the dollar yesterday, in its worst week since it was "ejected" from the European Exchange Rate Mechanism, reported the Independent. It was sold "heavily", falling to $1.62 at one point in reaction to comments from the Prime Minister and Bank of England Governor which indicated that the UK is nearing recession. Analysts expect further interest rate cuts as a result, which will make sterling unattractive to investors. The pound is now down around 20 per cent versus the dollar since its peak in summer 2007.
Cash was king - now gold is God
Crisis hits Eastern Europe
Hungary has raised interest rates by three per cent in a desperate attempt to support its currency peg against the euro, a move which signals the problems in Eastern Europe, said the Daily Telegraph. The crisis "echoes the final days" of the Exchange Rate Mechanism in 1992, when Britain raised rates to defend its currency, with little success. Analysts are doubtful that Hungary's action will succeed and suggest it is more likely to result in a devaluation in the forint. Hedge funds are expected to try to "pick off" other European states in similar positions.
What happens when a Western economy dies
Credit crunch bail-outs are a threat to democracy
Pakistan goes to IMF
Pakistan has been forced to go cap in hand to the International Monetary Fund as the country desperately tries to raise $4bn in 30 days to save its economy, reported the Times. Its central bank governor, Shamshad Akhtar, last night travelled to Dubai to hold talks with IMF representatives designed to bail the country out as its foreign reserves "plummet". Pakistan has suffered in recent months from a combination of terror attacks, high oil and food prices and the locking up of global credit markets. It may need up to $15bn over two years.
Musharraf's departure leaves West a bleak option
Wachovia suffers $24bn loss
US bank Wachovia reported the biggest loss of any bank since the credit crunch started, reported the Guardian. The $24bn loss in the three months to the end of September is more than the total price being paid by Wells Fargo for the bank, after winning its battle with Citigroup for ownership of its rival. Wachovia ran into trouble as a result of problems in its mortgage business, but "its housing woes are far from over" with it forecasting a further $26.1bn in mortgage-related losses next year.
Lehman collapse exposes Wall Street's moral bankruptcy
The next sub-prime mortgage crisis
Sony slashes forecasts
Japanese electronics giant Sony has "slashed" its profit forecasts and is at risk of making losses this year after currency problems, said the Financial Times. The company is now expecting to make less than half the ¥470bn operating profit for this year that it forecast in July, as a result of "unfavourable" exchange rates and the weak global economy. Sony's problems indicate that the rest of the Japanese electronics industry is struggling as the yen strengthens against other global currencies, in particular the euro.
Japan's return from financial oblivion
...in brief..................
Barnsley bows to takeover and BBC loses on pensions
Barnsley Building Society was forced yesterday by the financial problems in Iceland to bow to takeover by rival Yorkshire Building Society. It had lost around £10m as a result of deposits with Icelandic banks and approached Yorkshire with approval from the FSA…………
RBS: a failure made in Scotland
Credit Suisse reported its second quarterly loss of the year after writing down loans, said Bloomberg.com. The third quarter loss was $1.08bn, compared to a similar profit last year. So far the bank has not joined Swiss rival UBS in applying for government funding…………
AIG rescue and the Goldman Sachs connection
DSG International, owner of Currys and PC World, announced a seven per cent fall in like-for-like sales in the UK and Ireland. The group's computing arm saw sales fall by 11 per cent in the 24 weeks to October 18th. It has sounded out rival Media Markt over a possible purchase…………
Rio Tinto shares collapsed by 16.3 per cent in Australian trade, the company's biggest intra-day fall, after a denial by the miner that it was in talks with rival BHP Billiton about a takeover. The drop also came after commodity prices suffered prolonged weakness............
Gyrations in the cost of energy have forced power company Electricity 4 Business into administration. The company supplies electricity to 40,000 small to mid-sized enterprises across the UK. Its accountant failed to find a buyer for the company yesterday, resulting in the loss of most of its 140 jobs…………
It has emerged that the BBC is one of the biggest victims of the turmoil in world stock markets. Up to £1bn is thought to have been wiped off the value of its pension fund in less than four months and has sent the broadcaster scrambling to reduce its exposure to equities…………
City hacks are as much to blame as the bankers
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