Wall street higher amid mixed messages on trade war
By Eric Levitz and Steven Mufson, Bloomberg View
JUNE 15, 2006 — Bank of America Corp. is expected to buy Morgan Stanley Co., as well as Merrill Lynch & Co. and the Standard & Poor’s 500 index, on Wednesday, as the U.S. Federal Reserve begins a major trade war against더킹카지노 the world’s largest banks. Morgan Stanley shares rose 6 percent in afternoon trading, while Merrill Lynch was down 2 percent. The moves add to concerns about an emerging market economic slowdown and broader stock market turmoil. The market also fears that an imminent bank rescue could drive the rest of the global economy into recession, and could further dampen investor confidence. U.S. President George W. Bush on Monday declared war against international finance after the U.S. Federal Reserve intervened to lift short-term lending standards. Banks have responded by pulling billions of dollars‘ worth of collateral from collateralized debt obligations (CDOs) in a bid to avoid higher capital r바카라사이트equirements, which would cut yields on credit. Bank of America, which is widely thought to be under consideration by banks, and Morgan Stanley, which has done business in the U.S. since the 1970s, are among those looking to sell on the London market. A top U.S. official said at a banking conference Tuesday that there is no shortage of interest from U.S. banks, including some large ones. U.S. Treasury Secretary Paul O’Neill told parliament that he would ask the European Union for money in August to prevent a sovereign-debt crisis, an issue that would add to the pressure on banks such as Morgan Stanley and U.S. Bank in Hong Kong. The market rallied again on news that Bush and the Fed were pushing hard for agg바카라ressive stimulus measures in order to combat inflation and stimulate economic growth, and stocks climbed by 1.6 percent on Tuesday to hit their highest since October in response to optimism that the U.S. would be able to cut interest rates by some 1 percentage point within the next six months. The price to earnings ratio, which is calculated by adding stock prices, climbed to 2.12 on Tuesday, up from 2.04 in mid-June. The dollar fell against a basket of currencies, though it rebounded after settling on a record high of 93.47 for a six-day run to $1.1316 to the euro, its highest since July. The pound also gained to $1.1114 and the Japanese yen edged down 1 percent. „U.