Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?

To: ggersh who wrote (23909)	11/2/2009 12:44:38 PM
From: RockyBalboa	Respond to of 71475

Bearish, hmm... minor (but quick) selloff in funancials, SKF riding up again. just watching the hefty dump in C as it took out $4. F-ugly?

To: ggersh who wrote (23909)	11/2/2009 1:04:21 PM
From: RockyBalboa	1 Recommendation Read Replies (1) \| Respond to of 71475

oopla GS,... about time, ridiculously valued.

To: ggersh who wrote (23909)	11/2/2009 7:41:08 PM
From: RockyBalboa	Read Replies (1) \| Respond to of 71475

Financial engineering at work, a while back you asked about YRCW. See below (stock dived today) >>>> UPDATE 2-YRC shares dive 64 pct on debt exchange offer (Contains language in 15th paragraph which may be offensive to some readers) * Shares plunge 64 percent to $1.32 on exchange details * Shares outstanding could rise to 1.6 bln from 60 mln * Successful exchange to open up $106 million reserve (Adds S&P downgrade, company comment and details) By Carey Gillam OVERLAND PARK, Kan., Nov 2 (Reuters) - Shares of major U.S. trucking company YRC Worldwide sank 64 percent on Monday after the company revealed that a debt exchange offer it is making may lead to the issue of a massive number of new shares and hand over the bulk of the company to noteholders. Based on the terms of the offer, which is seen as vital for the survival of the company and is a contingency for several lender agreements, YRC may have to issue up to 1.6 billion new shares, or nearly 27 times the about 60 million currently outstanding, analysts said. Shares closed down 64 percent at $1.32 on the Nasdaq on Monday after YRC revealed details of the exchange offer, and said it would move immediately to seek shareholder approval. "We think that YRCW is down to the last bullet in its gun as evidenced by the dilution associated with this proposed debt-for-equity swap," RBC Capital Markets analyst John Barnes wrote in a note to investors on Monday.

To: ggersh who wrote (23909)	11/3/2009 4:46:04 AM
From: RockyBalboa	Read Replies (1) \| Respond to of 71475

Here >>> Sterling falls on UK banking shake-up; BoE eyed * Stg down 0.5 pct vs dlr on banking concerns, ahead of BoE * UK govt announces bank shake-up, takes more RBS B shares * Lloyds launches record rights issue * BoE seen raising QE this wk LONDON, Nov 3 (Reuters) - Sterling fell broadly on Tuesday after the UK Treasury announced a major shake-up of British banks and as investors braced for a possible further extension of quantitative easing by the Bank of England this week. Under the bank restructuring plans, Royal Bank of Scotland and Lloyds Banking Group will between them have to sell off businesses equating to 10 percent of the retail banking market. The government will raise its economic interest in Royal Bank of Scotland while keeeping its ordinary share stake steady and Lloyds launched a record 13.5 billion pound rights issue. [ID:nL3540088] The shake-up highlights the fragility of the financial sector, which is a key part of the UK economy, and will add to concerns about the country's public finances. The FTSE 100 index of major UK shares <.FTSE> was down 1.3 percent, with falls in banking stocks weighing on the index as RBS shares fell 3 percent. "Sterling is reacting to all these headlines coming out and concerns about the implications for the financial sector," said Geraldine Concagh, economist at AIB Group Treasury in Dublin. "People are also cautious ahead of the BoE meeting, which is weighing on sterling too," she added. At 0840 GMT, sterling was down 0.5 percent to $1.6315 while the euro rose by 0.4 percent against the pound to 90.42 pence. The falls pushed sterling's trade-weighted index <=GBP> down to 80.0, its lowest in nearly a week. The BoE is set to announce its decision on Thursday and most analysts expect it will increase its 175 billion pound asset-purchasing plan by 25 billion pounds to stimulate further the struggling UK economy. [BOE/INT]. Some in the market see a rise of as much as 50 billion pounds. An increase in the BoE's quantitative easing programme has looked more likely since data on Oct. 23 showed an unexpected contraction in UK gross domestic product. The announcement of the UK banking shake-up added to the negative sentiment towards the currency, underscoring the potential problems ahead for the economy and its troubled financial sector. "We struggle to see how this can be anything but bad news for sterling and it reinforces our overall bearish view on the currency," said Ned Rumpeltin, currency strategist at Nomura in a note to clients. "First, the recapitalisation underscores the still-weak position of the UK's financial system and the likelihood that the sector is likely to remain a drag on growth for the foreseeable future. Second, the involvement of additional public funds keeps the UK's precarious fiscal position at centre stage," he said. (Reporting by Jessica Mortimer, editing by Nigel Stephenson) ((jessica.mortimer@thomsonreuters.com; Tel: +44207 542 7817, Reuters Messaging: jessica.mortimer.reuters.com@reuters.net) Keywords: MARKETS STERLING/OPEN