Financial Biz Cheat Sheet: Deutsche Boerse/NYSE Euronext Merger in Danger, Finance Ministers Pledge Financing for Dexia
BMO Capital has pushed back its forecast for rate hikes in Canada to 2013. Only a few months ago, BMO was predicting further hikes in 2011, but instead the market has priced in 50 basis points in rate cuts by April 2012.
Bank of America’s (NYSE:BAC) website was down today, with customers being greeted with a warning saying “you may wish to defer your transaction until a non-peak time.”
The price of protection against default by Morgan Stanley (NYSE:MS) has risen as its CDS spreads continue to widen to dangerous levels.
A Reuters report this morning cited a source as saying EU regulators are set to formally object to the proposed merger of Deutsche Boerse and NYSE Euronext (NYSE:NYX).
Deutsche Bank (NYSE:DB) has scrapped its 2011 profit target, predicting a 250 million-euro third-quarter impairment on Greek sovereign debt. While Deutsche Bank will cut 500 jobs “in response to the significant and unabated slowdown in client activity,” CEO Josef Ackermann says his bank has “absolutely no plans to raise capital. He also said the economic recovery in Europe will take longer than people expect, though he’s sure “Europe will make it.”
UBS (NYSE:UBS) says it expects a “modest net profit” for the third quarter, despite its $2.3 billion rogue trading loss.
French and Belgian finance ministers have pledged to guarantee financing for Dexia and will intervene to protect account holders and creditors, if necessary. In order to achieve its required 9% Tier 1 capital ratio, Dexia needs 5 billion euros.