Saturday, Jul 18, 2009
Woot! Woot! Let's parteyyyy!!! er, wait a minute...
FT: US banks unleash wave of optimism
World stock markets roared ahead this week as two of Wall Street’s largest banks put the worst of the financial crisis behind them and delighted investors with surging profits.
From Hong Kong to New York, shares in the world’s biggest companies rode a wave of optimism after Goldman Sachs and JPMorgan reported strong growth in second-quarter earnings and China announced resurgent economic output. The bullish mood swept across Europe and the FTSE 100 index enjoyed its biggest weekly gain of 2009.
Posted by devo @ 12:29 AM (649 views) Add Comment
3 Comments
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1. devo said...
The sense of relief round 'ere is palpable. In fact, I've just started to Conga like it's 1999 out in the street. Just me, so far...
2. icarus said...
As usual, if you can't get the full article just google the title.
Only the usual suspects did well on Wall Street. Citibank and Bank of America - two of the main holders of outstanding derivatives according to the US Comptroller of the Currency last year (tho' it must be admitted that JPM was the other) fared rather badly.
China's recovery? First, oil consumption figures aren't published by the Chinese govt so they have to be inferred from the figures for imports, exports, domestic crude production and refinery throughput. Second, and more important, any rise in China's output is due to the $600bn govt stimulus - govt spending and bank loans to avert politically dangerous unemployment - that was launched in response to falling exports. This will no doubt lead to imports of factory equipment, industrial components and minerals and more global "recovery".
Stock markets rise only in response to "better-than-expected" news, so all this means is that the effects of China's stimulus measures and the profits of (and confined to) the two leading US investment banks weren't fully factored in.
3. quiet guy said...
I'm drifting off topic a bit here but it's been a quiet day for the blog so I'm going to try to spice it up a little. If you have about 17 minutes or so to spare, here's a *VERY* blunt commentary about Goldman Sachs by Max Keiser. I understand that some blog readers may not agree with Keiser but I couldn't help but admire such a bold and outspoken attack.
http://www.youtube.com/watch?v=VSwWy4E6I04
P.S. investors might be interested to note that Keiser is predicting "another massive banking crash in about six to nine months"