Mail to the Chief

Mail to the Chief

White House adviser Jared Bernstein answers viewer email questions about the economic recovery.

Wall Street's influence

Wall Street's influence

Ines Ferre reports on the latest evidence of big spending by Wall Street to influence regulatory policy.

Economy fear factor

Economy fear factor

How badly is the fear factor affecting the economy? CNN's Mary Snow reports.

Monster job fair

Monster job fair

Thousands of people are lining up in Times Square to get in the Monster.com job fair. CNN's Allan Chernoff reports.

Transforming Beijing

Transforming Beijing

CNN's Anjali Rao catches up with the dynamic 43-year-old woman who's helping transform Beijing's skyline.

Wen on China economy

Wen on China economy

Chinese Premier Wen Jiabao outlines goals of the economic stimulus package. CNN's Emily Chang reports.

Global unemployment rises

Global unemployment rises

CNN correspondents take a look at how people around the world are coping with rising unemployment.

Protecting your money

Protecting your money

CNN.com's Nicole Lapin and Colin Barr discuss the fallout from bank failures and the FDIC's role in protecting your money.

Job market: Worst is coming

Job market: Worst is coming

CNNMoney.com's Paul R. La Monica talks to Reggie Aqui about the most brutal downturn in the unemployment rate in decades.

Brown seeks end to short-term bonuses

Brown seeks end to short-term bonuses
07-03-2009

The British prime minister, Gordon Brown, has called for countries to agree international principles to end what he called the short term banking bonus culture. Mr Brown said that rewards should be based on long term and sustainable results. There has been widespread anger in Britain, and other countries, over large bonuses paid to bankers - especially those in financial institutions that have come close to collapse in the current crisis.

Bond sale plan to boost BOC

Bond sale plan to boost BOC
06-03-2009

Bank of China says its main shareholder has proposed selling up to 120 billion yuan of subordinated bonds, to boost the bank's capital. The bonds will have a term of no less than five years. The main shareholder is the government investment vehicle, Central Safe Investments, which holds a 67.53 percent stake in Bank of China. Shareholders will consider the plan for the bond issue at a meeting on March 23.

ECB and BoE both cut rates

ECB and BoE both cut rates
06-03-2009

The European Central Bank has cut interest rates by half-of-one percent to 1.5%. Earlier the British central bank, the Bank of England, cut its benchmark lending rate by half-of-one percent to 0.5 percent, an all-time low. At the same time time it said it would try to boost bank lending by increasing the amount of money in circulation by 75 billion pounds - a policy known as 'quantitive easing'. No new money will be printed but the central bank will purchase UK government and corporate bonds currently owned by banks so they have more money to lend. The Bank of England will not borrow to fund the purchases. Detractors say it will adversely affect savers.

ICBC increasing loans

ICBC increasing loans
06-03-2009

Industrial and Commercial Bank of China will increase loans by up to 13 percent this year as the government's economic stimulus plan spurs demand for funds. The bank's chairman, Jiang Jianqing, said demand for loans was expected to rise in the second half of the year as the effects of the stimulus package kick in. He said new loans approved by the bank exceeded 100 billion yuan last month.

HSI hits 4-month low

HSI hits 4-month low
06-03-2009

Hong Kong share prices have closed 2.4 percent lower, as HSBC's problems dragged the Hang Seng index below the 12,000 level for the first time since last October. It fell 289 points to 11,921. The index ended the week down 6.9 percent from last Friday. Weakness in regional markets following Wall Street's plunge hit local sentiment, while Bank of East Asia underperformed the broader market amid concerns over a management reshuffle. Dealer say the Hang Seng is likely to retest its October trough of 10,676 in the medium term amid the gloom over the global economy, The Nikkei Index in Tokyo ended 3.5 percent lower, and the Shanghai Composite Index closed down 1.3 percent. "Sell-off pressure is not expected to end soon, as the outlook over Wall Street and regional markets remains bearish," said DBS director Peter Lai.

China confident about HK yuan trading

China confident about HK yuan trading
06-03-2009

The Governor of the People's Bank of China, Zhou Xiaochuan, says China will soon allow Hong Kong to settle cross-border trade in yuan. He said there wasn't any major difficulty in the implementation of the settlement system. He said this was because Hong Kong started settlement trials in the retail and tourism trade in 2003. The yuan trade settlement system is seen as a step towards the greater convertibility of the currency. It will also reduce the potential exchange loss of Hong Kong companies.

Citibank shares fall below US$1

Citibank shares fall below US$1
06-03-2009

Shares in the American bank Citigroup have fallen below US$1 for the first time ever in a sign that investors are losing confidence in the lender which operates in more than 100 countries. The share price fall left the bank with a market value below US$6 billion, down from more than US$277 billion in late 2006. The decline comes despite the bank receiving US$45 billion of taxpayer-funded capital since October, and federal efforts to stimulate the economy and lending.

Guangdong firms appeal for Beijing help

Guangdong firms appeal for Beijing help
06-03-2009

There've been calls for Beijing to provide more help for small and medium-sized businesses in Guangdong. Delegates from the province said companies there were finding it difficult to make the improvements needed to remain competitive. They also said it was hard to raise capital because of the global financial crisis.

Why a Tsunami Hit the Markets

Why a Tsunami Hit the Markets
3/2/2009

WSJ's David Gaffen and Heidi Moore discuss the reasons for Monday's stock market free fall that saw the Dow drop below 6800 points.

Wall Street snaps losing streak

Wall Street snaps losing streak
05-03-2009

Wall Street snapped a five-day losing streak overnight, as an expected huge stimulus plan from Beijing and new US efforts to ease home foreclosures helped mute the impact of weak economic data. The Dow Jones rallied 149.82 points - or 2.23 percent - to 6,876.84 at the closing bell. The technology-dominated Nasdaq climbed 32.73 points - or 2.48 percent - to 1,353.74 and the Standard & Poor's 500 index jumped 16.54 points to a close of 712.87 - again a rise of just over two percent.

Hutchison Telecom profit tumbles 97%

Hutchison Telecom profit tumbles 97%
05-03-2009

Hutchison Telecommunications International has recorded a 97-percent slump in profit for last year. Earnings dropped to HK$1.8 billion because the firm did not sell any assets last year. The phone carrier, controlled by tycoon Li Ka-shing, booked a gain of HK$69 billion in 2007 from the sale of its Indian unit. The company will not give a final dividend this year.

IMF eyes extra cash for poor countries

IMF eyes extra cash for poor countries
04-03-2009

The International Monetary Fund has said it will need to provide at least US$25 billion in emergency financing this year to the poorest countries amid the global financial crisis. IMF managing director Dominique Strauss-Kahn called for swift and generous action from the international community to help avert the potentially devastating effects of the deepening crisis on the most vulnerable countries. "After hitting first the advanced economies and then the emerging economies, a third wave from the global financial crisis is now hitting the world's poorest and most vulnerable countries," Mr Strauss-Kahn said in a statement. "This puts at risk the major achievements of higher growth, lower poverty, and greater political stability that many low-income countries have made over the past decade. I urge donors to rise to the challenge and provide the financing needed to preserve these hard-won gains and prevent a humanitarian crisis," he said.

Obama, Brown address global economy

Obama, Brown address global economy
04-03-2009

The British Prime Minister, Gordon Brown, has held talks at the White House with President Barack Obama - the first European leader to meet the president since his inauguration. Among the main issues discussed was the world economic crisis, with both of them agreed on the need for better regulation of the global banking system. Mr Brown said times had changed and co-ordinated action was needed to tackle a series of problems, including tax havens. Mr Obama said he was "absolutely confident" his administration's plans to deal with toxic bank assets would succeed and downplayed the big declines in the stock market recently and said share prices and the economy would revive in the long term. "What I'm looking at is not the day-to-day gyrations of the stock market but the long-term ability for the United States and the entire world economy to regain its footing," he said.

HSBC confident of investor support

HSBC confident of investor support
04-03-2009

HSBC says it's confident that shareholders will support its US$17.7 billion rights issue, even though the bank's shares plunged after it reported a 70-percent fall in net profit last year. Speaking in Hong Kong, Group Chief Executive Michael Geoghegan assured investors that the capital raised in the rights issue won't be used to cover losses in HSBC's US operations. He said the money would be put into what he called a 'warchest' for future expansion. However, Mr Geoghegan said the bank did not have any specific targets for acquistion yet.

HSBC shares slump after profit plunge

HSBC shares slump after profit plunge
03-03-2009

HSBC has suffered its biggest daily fall since 1987 - shedding nearly a fifth of its value and losing around US$17 billion in market capitalisation. The share price ended down 18.8 percent at HK$46.25 after opening at its lowest level since the 1998 Asian financial crisis - matching a similar sell-off in its London-listed stocks. HSBC announced a US$17.7-billion rights issue at a deep discount and slashed its annual dividend yesterday. "I'm still bearish on HSBC. In 2009 we see a major risk for its European business," said Patrick Shum, strategist with Karl Thomson Securities. "The stock has already been oversold in the short term but the resistance at HK$49 is strong, so there is little room for a rebound." Bank of America-Merrill Lynch said in a research report it has cut HSBC's target price to HK$42.91, while keeping an underperform rating. The report said the planned capital raising had eased some of the concern over the bank's cash needs, but the outlook remained thorny on "the considerable macro headwinds facing the group's operations and uncertainty surrounding asset quality" in Britain and the United States. HSBC's local unit, Hang Seng Bank fell 3.5 percent to HK$81.30 following a disappointing 46 percent drop in second half earnings. The Hang Seng Index closed 2.3 percent lower.

No change in Australian rates

No change in Australian rates
03-03-2009

Australia's central bank has maintained its interest rate unchanged at 3.25 percent. This followed a four percentage-point reduction over the past seven months in a bid to spur the slowing economy. And the Australian dollar rose to 64 US cents after the interest rate decision.

HKMA won't comment on HSBC stake

HKMA won't comment on HSBC stake
03-03-2009

The Monetary Authority says it will not comment on whether the government's Exchange Fund will subscribe to the new HSBC shares, because of market sensitivity. A spokesman said external fund managers who oversee the Hong Kong equity portfolio - which includes HSBC shares - would act in accordance with the guidelines endorsed by the Exchange Fund Advisory Committee.

Standard Chartered records 17% profit

Standard Chartered records 17% profit
03-03-2009

Standard Chartered Bank has announced a 17 percent rise in 2008 profits. The bank, which gets two thirds of its revenue from Asia, said wholesale banking had a very strong January, with income broad-based and well above levels seen a year earlier.

Wall St. hammered by AIG fallout

Wall St. hammered by AIG fallout

March 2 - U.S. stocks skidded to fresh lows as the government bailed out American International Group again and reported a record 61.7 billion dollars (USD) loss.

The Dow Jones industrial average fell to its lowest since April 1997 on an intraday basis, hit by selling in financial, energy and industrial stocks.

All 10 S&P sectors were in the red.

The Dow Jones industrial average tumbled 219.75 points, or 3.11 percent to 6,8413.18.

The Standard & Poor's 500 Index gave up 26.61 points, or 3.62 percent, at 708.48.

The Nasdaq Composite Index lost 42.13 points, or 3.06 percent, to 1,335.71.

Under the government's latest revised rescue plan, AIG will gain access to up to an additional $30 billion in new capital.

SOUNDBITE) (English) BILL BERGMAN, SENIOR EQUITIES ANALYST, MORNINGSTAR

Business Update: Dow below 7,000

Business Update: Dow below 7,000

March 2. - A record quarterly loss and another government bailout for U.S. insurer American International Group roiled confidence to push the Dow sharply below the 7,000 mark for the first time since 1997.

Changes are underway at global banking giant HSBC. A decline in U.S. manufacturing activity in February was not as deep as in previous months, according to data from the Institute for Supply Management.

Conway Gittens reports from New York.

HSBC in huge rights issue

HSBC in huge rights issue

Mar 2 - Europe's largest bank launches Britain's biggest rights issue, to raise 18.3 billion dollars.

HSBC has launched a bid to raise $18.3 billion dollars from shareholders to help it overcome big losses in the United States.

The bank said it would shut most of its U.S. consumer lending business, cutting 6,100 jobs.

Jim Drury reports.

AIG posts record loss

AIG posts record loss
03-03-2009

The insurance giant American International Group has posted a US$61.7 billion quarterly loss, the biggest in corporate history, and reached a new government bailout deal after officials concluded the insurer was too big to be allowed to fail. AIG, which got $150 billion of US taxpayer aid last year, will get access to up to $30 billion of new government capital. Correspondents say the new bailout avoids for now any crippling credit rating downgrades that could force AIG to come up with billions of dollars that it might not have. "Given the systemic risk AIG continues to pose and the fragility of markets today, the potential cost to the economy and the taxpayer of government inaction would be extremely high," the US Treasury Department and the Federal Reserve said in a joint statement. AIG, which operates in more than 130 countries, was once the world's largest insurer by market value. The quarterly loss is AIG's fifth in a row.

Freddie Mac chief to resign

Freddie Mac chief to resign
03-03-2009

The head of the embattled US mortgage finance giant Freddie Mac, which was put under government control in September to avoid collapse, will resign this month, the firm said. Freddie Mac chief executive David Moffett notified the chairman of the board of directors that he was resigning both as CEO and as a member of the board effective no later than March 13, the company said in a statement. "Moffett indicated that he wants to return to a role in the financial services sector," it said. Freddie Mac said the board was working with the Federal Housing Finance Agency, which has control of the firm, to appoint a successor.

European stocks slump

European stocks slump
03-03-2009

Europe's main stock markets closed sharply lower on Monday, extending losses after another massive bailout for US insurer AIG and a huge cash call at bank giant HSBC spooked already nervous investors. In London, the FTSE 100 index of leading shares lost 5.33 percent, its worst finish since 2003. In Frankfurt, the DAX fell 3.48 percent and in Paris the CAC 40 tumbled 4.48 percent.

HSBC raising US$17.7bn as profits plunge

HSBC raising US$17.7bn as profits plunge
03-03-2009

HSBC has launched a US$17.7 billion rights issue to shore up its balance sheet after annual profit more than halved and bad debts soared in the United States. The bank will offer 5.1 billion shares at HK$28 each - a discount of about 50 percent. "The rights issue is priced below market expectations, but it is a positive for existing shareholders who can maintain their holding without breaking the bank," said Y.K. Lee, analyst at Core Pacific-Yamaichi in Hong Kong. Pretax profit last year fell 62 percent to US$9.3 billion from US$24.2 billion a year earlier, after the bank was hit by a goodwill impairment charge of US$10.6 billion in the United States. Excluding the charge, pretax profit fell 18 percent to US$19.9 billion - slightly ahead of analysts predictions. Profits from the bank's Hong Kong operations slid 26 percent. The annual dividend has been cut by 29 percent to 64 US cents per share. The bank also said it would close its troubled US consumer loans business HFC - slashing 60,000 jobs. Its losses in North America last year amounted to US$15.5 billion, including the goodwill impairment charge. "With the benefit of hindsight, this is an acquisition we wish we had not undertaken," said HSBC chairman Stephen Green. Group-wide the bank said that losses on bad loans jumped 44 percent versus 2007 to US$24.9 billion. However, Mr Green insisted that HSBC's capital position remained strong, and its share sale would enable it to take advantage of opportunities. Group-wide the bank said that losses on bad loans jumped 44 percent versus 2007 to US$24.9 billion. Finance director Douglas Flint said the bank may want to finance acquisitions as weaker rivals retreat from international markets, especially those that have had to take state help. "We want to position ourselves both defensively for turbulent times and opportunistically for the options that will appear," Mr Flint said. "There's nothing on the go but we believe the opportunities will come to banks that have the ability to take such options."

Stocks dive on financial fears

Stocks dive on financial fears
03-03-2009

Global stocks have plumbed new multi-year lows after insurer AIG's record US$61.7 billion quarterly loss and a $17.7 billion capital request by HSBC slammed financial markets. Insurer American International Group's quarterly loss, the largest in US corporate history, heightened worries about the health of the global financial system and boosted the appeal of government debt and the US dolllar as low-risk havens. The latest news on AIG, which lost a total of $99.29 billion last year, unnerved investors who have been seeking assurances that the credit crisis that began in mid-2007 is finally abating. The decision by HSBC, Europe's biggest bank, to raise funds via a rights issue to help it overcome big losses contributed to fears that the downward trend is picking up pace. European shares closed down 5 percent and Asian stocks fell about 4 percent. US stocks fell 4 percent or more as the Dow closed under the 7,000 mark for the the first time since May 1997. The Dow Jones industrial average closed down 299.64 points, or 4.24 percent, at 6,763.29. The Standard & Poor's 500 Index fell 34.27 points, or 4.66 percent, at 700.82. The Nasdaq Composite Index slid 54.99 points, or 3.99 percent, at 1,322.85. Energy stocks fell after crude prices tumbled 10 percent to settle just above $40 a barrel. US crude settled down $4.61 to $40.15 a barrel. The US dollar rose against a basket of major currencies. Gold dropped after rising earlier. Heavy losses in equity markets triggered profit-taking after the metal failed to climb further above $1,000 an ounce last week. US gold futures for April delivery settled down $2.50 at $940.00 an ounce in New York.

Hang Seng profit falls 23%

Hang Seng profit falls 23%
02-03-2009

Hang Seng Bank, a sister bank of HSBC, has posted a 23-percent fall in profit for last year - to HK$14.1 billion. Analysts polled by Reuters had forecast earnings of HK$15.5 billion. The bank has maintained its final dividend at HK$3 a share - the same as in the previous year. The bank has also confirmed that Margaret Leung will become its first female chief executive officer. She will take over from Raymond Or, who's retiring in May. Hang Seng Bank shares fell 3 percent today to HK84-25.

HSBC suspends trading ahead of results

HSBC suspends trading ahead of results
02-03-2009

HSBC is reported to have decided to scale back its American consumer finance operations, as it launches a US$17-billion rights issues to boost its capital base. The bank suspended trading of its Hong Kong-listed shares today, saying it would reveal a "corporate action" when it released its annual results this afternoon. The Financial Times newspaper said the bank is expected to announce that it will further downsize its US-based credit card and mortgage lender. The US consumer finance arm, HSBC Finance Corporation, has stopped writing new subprime mortgages -- the source of mounting losses for the division -- and closed its car loan business in the United States. The newspaper also said HSBC would cut dividends and unveil a US$17 billion share offering which is expected to set a record for the biggest rights issues to be funded by private investors. The offer is to be underwritten by a consortium of global banks led by Goldman Sachs and JPMorgan Cazenove, it said. The Chief Executive of HSBC, Michael Geoghegan, and other members of his board, will reportedly waive their entitlement to multi-million pound bonuses this year. However, the British newspaper the Guardian says executives of the bank based in Hong Kong are thought to be likely to take their entitlements.

Japanese economy worsens

Japanese economy worsens

Japan's economy sinks further into recession. CNN's Kyung Lah reports.

RBS pension provokes outrage

RBS pension provokes outrage

CNN's Adrian Finighan reports on the pension row between the British government and former RBS chairman Fred Goodwin.

10 best cars in 2009

10 best cars in 2009

CNNmoney.com writer Peter Valdes-Dapena goes through Consumer Reports' top 2009 picks for cars, trucks and SUVs.

Look Ahead: Europe

Look Ahead: Europe
2/27/2009

It'll be another busy week for banks, starting with HSBC, followed by Standard Chartered and others. Then there's earnings from France Telecom and interest-rate decisions from Bank of England and the European Central Bank. Aude Lagorce reports.

UK bank bailout flub

UK bank bailout flub

Prime Minister Gordon Brown is strongly criticizing the former heads of Britain's failed banks. ITN's Simon Harris reports.

4th Quarter GDP Lower Than Expected

4th Quarter GDP Lower Than Expected
2/27/2009

A revision in government data shows that fourth-quarter 2008 GDP fell by 6.2% - more than previously reported. WSJ's Phil Izzo and Kelly Evans discuss the implications.

Uncle Sam and Citigroup

Uncle Sam and Citigroup
2/27/2009

WSJ's David Enrich and Dennis Berman discuss the significance of the government's increased stake in Citigroup and its demand for boardroom changes.

Obama's Ambitious Agenda Tests Congress

Obama's Ambitious Agenda Tests Congress
2/27/2009

From passing health reform to increasing funding for stem cell research, President Obama is pushing for sweeping change, but it's up to Congress to make it happen. WSJ's Naftali Bendavid discusses the challenges facing both Democratic and Republican legislators.

Economy Tops ASEAN Summit

Economy Tops ASEAN Summit
2/28/2009

Leaders of the 10 member states of the Association of South East Asian Nations gathered in Thailand for their annual summit, agreeing that protectionism must be avoided. Human rights issues were also on the agenda. Video courtesy Reuters.

Tien raps lack of provision on jobs

Tien raps lack of provision on jobs
02-03-2009

The chairman of the Employees Retraining Board, Michael Tien, has criticised the government's new Budget for not doing enough to help people keep their jobs. He wants subsidies to be given to companies that create posts saying this would encourage firms to employ more workers.

ASEAN urges economic reform, cooperation

ASEAN urges economic reform, cooperation
01-03-2009

Southeast Asian leaders have called for increased cooperation and urgent reform to deal with the global financial crisis as they wrapped up a summit dominated by the economic downturn. Leaders from the 10-member Association of Southeast Asian Nations (ASEAN) have spent much of their annual meeting seeking ways to soften the impact of the meltdown on their export-driven economies, with millions of jobs at risk. In a joint statement issued at the end of the summit in Thailand, they urged developed and developing countries to show "more coordinated action... to restore financial stability and ensure the continued functioning of financial markets." They further called for "bold and urgent reform of the international financial system," while agreeing to "stand firm against protectionism." The leaders also signed a declaration on setting up an EU-style ASEAN community by 2015 that is aimed at protecting the diverse bloc of around 570 million people from future economic turmoil.

Citigroup and govt reach ownership deal

Citigroup and govt reach ownership deal
28-02-2009

The American banking giant Citigroup says it's reached a deal that paves the way for government ownership of up to 40-percent of its shares, strengthening the bank's position. The US government's current eight percent stake will be increased through the conversion of its current preferred stock into ordinary shares.

Britain-China sign US$2 bn in trade deals

Britain-China sign US$2 bn in trade deals
28-02-2009

British and Chinese firms have signed agreements worth almost US$2-billion at a ceremony in London. The biggest was a $1.2 billion deal between British jet engine maker Rolls-Royce and Hainan Airlines. It involves the purchase of Rolls-Royce jet engines and a service contract. The signing ceremony, was attended by Trade Minister Chen Deming and Britain's Business Secretary Peter Mandelson, and came on the last leg of a Chinese trade tour of Europe.