Morning Briefing: World Markets Mixed on Buffett/Goldman Deal
At first, the markets overseas appeared to be cheering the news that Warren Buffett's Berkshire Hathaway is investing $5 billion in Goldman Sachs, in exchange for preferred shares in the firm. But after a few hours of trading in Europe, the markets appear more mixed. In Europe, the DJ Stoxx banking index was flat. In Asia, the markets were up slightly, with the Hang Seng up 89 points and the Nikkei up 24 points. Oil is up $2 to $109 a barrel.
(In addition to Buffett, a Japanese paper reports that Japan's Sumitomo Mitsui Financial Group is interested in investing as much as nearly $1 billion in Goldman Sachs. The Post has not confirmed this.)
The Fed announced today that it is pumping $30 billion into central banks in Australia, Sweden, Denmark and Norway for short-term loans to banks, after a similar move days ago provided $180 billion to other central banks.
Wall Street remains in limbo waiting on Capitol Hill's response to the Bush administration's request for a $700 billion bailout. Bernanke, Paulson, Cox and Lockhart faced tough questions yesterday as economists questioned whether other alternatives would be better.
Check out The Post's Dana Milbank's take on the scene.
Today marks the second day of questioning for the Bush team on the Hill, this time on the House side.
The Post's Frank Ahrens will blog the hearing and any other news out of Wall Street and Washington on the financial crisis today. Stay tuned...
September 24, 2008; 7:34 AM ET
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