We cover the unfolding world financial crisis throughout the day. Keep updating this page for latest news.
KEY POINTS:
14.55-TOKYO: Japan's central bank has injected an extra 2 trillion yen (US$18.9 billion) into money markets today to ensure liquidity as financial markets continue to assess the fallout from the demise of Wall Street giants Lehman Brothers and Merrill Lynch.
The move comes a day after the Bank of Japan pumped in 2.5 trillion (US$24 billion), joining the U.S. Federal Reserve and other central banks in a global effort to shore up confidence.
14.30- NEW YORK: British bank Barclays says it will buy Lehman Brothers' North American investment banking and capital markets businesses for $250 million in cash.
It will acquire Lehman's North American banking operations, which include Lehman's fixed income and equities sales, trading and research and investment banking business. About 10,000 employees work in the divisions.
Barclays will also purchase Lehman's New York headquarters and its two data centers in New Jersey for $1.5 billion.
13.10- The U.S. government has agreed to provide an $85 billion emergency loan to rescue the huge insurer AIG, the Federal Reserve said.
It said the U.S. Treasury Department was in full support of the decision. The Fed determined that a "disorderly failure" of AIG could undermine already fragile financial markets.
The government will receive an 79.9 percent equity stake in AIG.
12.10- The U.S. government is increasingly likely to step in to help rescue the huge insurer AIG, a person with knowledge of the situation told AP.
Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben Bernanke met with members of Congress to brief them on options the government is considering. The meeting ended without Bernanke and Paulson commenting.
11.55- CNBC television reports that after the stock market has closed for the day, the US Federal Reserve was negotiating roughly US$85 billion in financing to keep American International Group from collapsing.
11.30- Reuters reports that Japanese stocks are expected to
rebound today, with the market expected to regain some
semblance of calm after sliding five percent yesterday.
Nikkei futures traded in Chicago closed at 11,760 on Tuesday,
180 points above the close in Osaka , pointing to a higher
opening.
10.54- NEW YORK: British bank Barclays plans to unveil a plan to acquire all or part of Lehman Brothers' investment banking and trading operations, a person close to the talks told AP.
The third-biggest bank in the UK had withdrawn from weekend talks with Lehman Brothers about a possible outright acquisition. There have been reports that Barclays can pick up the assets it wants for about $US2 billion ($NZ3.08 billion) to $US3 billion. The deal must get approval from the bankruptcy court.
10.37- On the NZX, top stock Telecom slipped a little further this morning following its recent slide, easing 1c early to 279. Air New Zealand was up 4c early to 108, while Sky City was up 3c to 360.
Fletcher Building was up 4c early to 711, with Contact Energy rising 2c to 872.
NZ Oil & Gas was down 4c to 141, while shares falling 3c included Tower to 195, Sky TV to 447 and Rakon to 265.
10.23- The New Zealand sharemarket had a firm opening, with the NSZX-50 starting the day down 6.38 points, or 0.2 per cent to 3220.93. It ended down 2.8 per cent yesterday.
08.43- NEW YORK: Wall Street ended another tumultuous session with a sizable gain , partly recovering from its worst sell-off in years after the Federal Reserve said it was keeping interest rates steady.
Stocks initially slumped on the Fed announcement, with the Dow Jones industrial average dropping by about 100 points. However, in late afternoon trading the Dow was up then closed up about 141 as investors took heart that the central bank did not believe the economy was in as much trouble as many had feared.
The central bank soothed fears of a worsening financial crisis even as the market waited to learn the fate of troubled insurer American International Group.
The Fed noted the growing strains in the financial markets a day after the Dow Jones industrials plunged 504 points in reaction to continuing turmoil in the financial sector. Many on Wall Street expected the Fed to keep rates steady but there was some hope that the central bank would try to calm uneasy financial markets with a rate cut.
- NZPA/AP
