Treasury Signals It Can Invest in Banks

October 8, 2008 07:00 PM
 
Snapshot of news and events for today

 

Quick links

* Financial markets

* Ag futures

* USDA reports this week

* NWS forecast

* Major media

* Ag media

* Political humorists



Financial markets Major world indicators

Japanese trading...

  • The 225-issue Nikkei Stock Average fell 45.83 points, or 0.5 percent, to 9,157.49, a five-year low. 

  • The dollar bought 101.08 yen from 99.14.

Wednesday's U.S. Markets...

  • The Dow Jones Industrial Average lost 189 points, or 2 percent, to close at 9,258 -- its sixth straight day of losses and down 14.6 percent for the month. The Nasdaq Composite Index fell 14.55 points, or 0.83 percent, to 1,740.33.
  • The 10-year Treasury note fell 1 3/32, to 103, while the yield rose to 3.64 percent from 3.50 percent. The 30-year bond was down 21/32 points at 107 16/32 to yield 4.062 percent, up from 4.026 percent Tuesday.

  • The dollar traded at 99.84 yen from 101.32 yen, while the euro was at $1.3667 from $1.3615 late Tuesday.

Ag futures Yesterday's action and
overnight indicators

What happened yesterday...


  • Corn: Futures faced selling pressure throughout the morning, but rallied as soybeans and meal firmed in afternoon trade to post a high-range close.
  • Soybeans: Futures traded mixed in early trade, but then gained upward momentum and closed 36 1/2 to 38 3/4 cents higher.

  • Wheat: Futures saw two-sided trade, but favored a firmer tone and closed mostly around 4 cents higher at all three exchanges.
  • Cotton: Futures settled mixed following a choppy session.
  • Lean Hogs: Lean hog futures closed mixed.
  • Live Cattle: Live cattle futures finished mixed after trading sharply higher earlier in the session.

Scheduled USDA Reports & Summaries This Week

Agricultural Marketing Service = (A)
Census Bureau = (CB)
Economic Research Service = (E)

Farm Service Agency (FSA)

Foreign Ag Service = (F)

National Agricultural Statistics Service = (N)

World Agricultural Outlook Board = (W)

Monday

Tuesday

Wednesday

Thursday

Friday

Oct. 6

Grain Inspections (A)
Crop Progress (N)

7

Weather - Crop Summary (N)

8

Broiler Hatchery (N)

9

U.S. Export Sales (F)
Access to Affordable and Nutritious Food: Understanding Food Deserts (E)

10

Crop Production (N)
World Agricultural Supply and Demand Estimates (W)
Cotton Ginnings (N)
Dairy Products Prices (N)
Cotton: World Markets and Trade (F)
Grains: World Markets and Trade (F)
Oilseeds: World Markets and Trade (F)
World Agricultural Production (F)
Latest U.S. Agricultural Trade Data (E)
Season-Average Price Forecasts (E)
Peanut Prices (N)


Overview Other reports affecting agriculture
Major media Links to top news reports
with potential U.S. ag impact

Wall Street Journal (subscription to site required for access)

  • Central Banks Launch Coordinated Attack Emergency Rate Cuts Fail to Halt Stock Slide; U.S. Treasury Considers Buying Stakes in Banks as Direct Move to Shore Up Capital Six Central Banks took a coordinated approach and lowered interest rates, but markets weren't convinced that would be enough and the Dow fell again. Meanwhile, Treasury Sec. Henry Paulson signaled the U.S. may now invest in banks based on a reading of the rescue package that Paulson believes gives them broad authority to invest in "any other troubled assets that the Treasury and the Federal Reserve deem necessary to promote financial market stability."
    Related items:
    Bank of Korea Surprises With a Rate Cut
    China Joins Action on Rate Cuts
    UK Stocks Fall Despite New Bank-Rescue Effort
    United Response by G-7 Seen as Unlikely
    Asian Markets Dissatisfied With Global Rate Cuts
    China Echoes West in Move to Ease Crisis
    U.S. Treasury Seeks Relief in More Bonds

    Investors Seek Refuge in Rising Yen, Creating Headwinds for Japan Exports
  • Short-Sale Ban Ends to Poor Reviews Temporary Boost, More Confusion Seen as Results; SEC Works on Disclosure Rule. The ban ended Wednesday, but few are convinced it had a positive impact in that it gave some stocks a short-lived boost that didn't last.
  • First Into Recession, California Shows Possible Future for U.S. Rising job losses and slowing consumer spending are two factors showing in California that some say could be a sign of things to come for the general U.S. economy.
  • AIG Bailout Hit by New Cash Woes Fed Moves to Widen Available Loans to Near $123 Billion Insurer AIG received another $37 billion from the government in addition to the $85 billion loan that began the government's bailout of the firm. The item notes the Fed didn't expect the kind of financial deterioration that has taken place since the initial action to aid AIG.
  • Global Economic Outlook Grows Darker, IMF Says. The IMF is labeling the current situation as being "the most dangerous shock in mature financial markets since the 1930s," according to its World Economic Outlook released on Wednesday. A U.S. recovery is expected to begin in the second half of next year, the IMF said, as housing prices bottom out and the recently passed financial-rescue package helps stabilize markets.
  • Monsanto Cites Strong Demand The firm says that U.S. agriculture is financially healthy and that is keeping a solid footing under the company in the form of demand for its traited seed products.

New York Times (registration to site required)

Washington Post

Ag media Monitoring the countryside

Omaha World-Herald (Nebraska)

  • Platte River conservation program eyes land Around 2,500 acres along the Platte River are being considered for inclusion in the Platte River Recovery Implementation Program. But not all the tracts will become part of the 10,000 acres of habitat needed for the program's first 12-year increment, 2007 through 2019.
  • Nebraska's ethanol plant construction slowed. The head of the Nebraska Ethanol Board says that construction of ethanol plants in the state have slowed, as the decline in gasoline prices has led to a decline in ethanol prices. This situation is raising additional challenges for ethanol firms.

Des Moines Register (Iowa)

Laughing with, not at From political humorists

David Letterman: Top Ten Ways to Make the Financial Crisis More Fun 10. Take a page from President Bush and ignore it 9. When Dow Jones drops more than 800 points, every American gets free mozzarella stix at Applebee's 8. Replace Lehman Brothers with the Wayans Brothers 7. File for bankruptcy three times and the fourth one is free! 6. Invest half your portfolio in liquor, the other half in strippers 5. Goodbye repo men, hello repo monkeys 4. Don't call it a "bailout" or a "rescue," call it a "fun-nancial crisis" 3. Put it all on Ball State and give the 16 points 2. Enjoy blank stare when Katie Couric asks Sarah Palin what "FDIC" stands for 1. Hire O.J. and his goons to steal back your money.


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