Global Stocks Turn Negative
Global stocks turned negative today, despite a move by Japan's central bank to cut interest rates. The Nikkei closed down 5 percent and other indexes in Asia also fell to end another volatile week.
In Europe, Barclays turned to Middle East investors to raise $12 billion and avoid taking government bailout money. Stocks on London's FTSE are down nearly 2 percent and other European stocks are also trading lower. The Post's Mary Jordan reports today that consumers either don't seem to be slowing down or are in some kind of denial as London's new $2.8 billion mall opened this week. The DJ Stoxx index is down 0.7 percent.
A Wall Street Journal analysis shows that major banks getting federal investments owe their top executives $40 million in pay and pension compensation. It follows the Post's revelation that the same banks receiving more than $163 billion from the Treasury are on pace to pay out more than half of that amount in the form of dividends to shareholders. Yesterday, Bush's top economic advisor defended the rights of banks to continue paying dividends. The Post's Steven Pearlstein weighs in today with his analysis of the bank bailout. He'll host a chat today at 11 a.m. ET.
This morning, the Detroit Free Press reports that Treasury and the White House have stopped talks with General Motors and other automakers about more bailout money. Automakers and state governors have been lobbying to get more money, on top of the $25 billion already approved by Congress.
Up next this morning, personal spending and income data is out in about an hour, at 8:30 a.m. Check back here and on washingtonpost.com for more live updates.
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