Central banks unite to save the markets
Friday capped a week of losses on global equity markets with the FTSE shedding nearly 9% while the Dow Jones fell 128 points.
This morning news is emerging of the outcome of talks over the weekend between world leaders to restore health in financial markets.
In the UK it has been announced the government will inject up to £37bn into banks in a move that will leave the government with sizeable stakes in some banks. The action raises levels of tier 1 capital in the latest attempt to restore confidence.
It has emerged from the weekend's meeting of Eurozone leaders in Paris that interbank lending will be guaranteed until the end of 2009 with UK Prime Minister Gordon Brown stressing the importance of "co-ordinated intervention" to restore confidence.
Brother Brown has urged European neighbours to follow the UK model of intervention whereby the government will take stakes in banks. The G7 finance ministers also unveiled a five point plan to revive markets while Australia, New Zealand and UAE have guaranteed all bank deposits and Norway and Portugal announced plans to aid bank financing.
Markets have reacted positively to the news with Australian markets rising 5.6% and the Hang Seng up 3.2% overnight. The FTSE, German and French markets all opened in positive territory this morning though Japanese and American markets are closed for public holidays.
It is likely today that individual EU nations will announce their plans within the framework agreed over the weekend while in the UK Producer Price Index data will be released, with an expected 0.4% month on month fall and 8.8% reduction year on year.
The contents of this blog are for information purposes only. It is not intended as a recommendation to trade or a solicitation for funds. The Wise Money Blog cannot be held responsible for any loss or damages arising from any action taken following consideration of this information.
This morning news is emerging of the outcome of talks over the weekend between world leaders to restore health in financial markets.
In the UK it has been announced the government will inject up to £37bn into banks in a move that will leave the government with sizeable stakes in some banks. The action raises levels of tier 1 capital in the latest attempt to restore confidence.
It has emerged from the weekend's meeting of Eurozone leaders in Paris that interbank lending will be guaranteed until the end of 2009 with UK Prime Minister Gordon Brown stressing the importance of "co-ordinated intervention" to restore confidence.
Brother Brown has urged European neighbours to follow the UK model of intervention whereby the government will take stakes in banks. The G7 finance ministers also unveiled a five point plan to revive markets while Australia, New Zealand and UAE have guaranteed all bank deposits and Norway and Portugal announced plans to aid bank financing.
Markets have reacted positively to the news with Australian markets rising 5.6% and the Hang Seng up 3.2% overnight. The FTSE, German and French markets all opened in positive territory this morning though Japanese and American markets are closed for public holidays.
It is likely today that individual EU nations will announce their plans within the framework agreed over the weekend while in the UK Producer Price Index data will be released, with an expected 0.4% month on month fall and 8.8% reduction year on year.
The contents of this blog are for information purposes only. It is not intended as a recommendation to trade or a solicitation for funds. The Wise Money Blog cannot be held responsible for any loss or damages arising from any action taken following consideration of this information.
Labels: Bank of England, Bank of Japan, banks nationalisation, FED, wise money
posted by Wise Money @ 9:31 AM
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