News
Tensions with Iran propel oil prices to 6-month high
The mounting tension between Iran and the West has resulted in a huge splurge in oil prices, which rose to a six-month high above $64 a barrel on 28 March 2007.
The sudden splurge may be the result of a rumor that Iran fired a missile at an American ship in the Persian Gulf . The tension mounts because Iran , one of the largest producers of crude oil, is located along the Strait of Hormuz, through which much of the world's oil is transported, and traders anticipate worse if Iran keeps on targeting foreign carriers. Rumors about a military confrontation spurred panic buying in after-hours trading Tuesday, sending oil prices above $68 in a matter of minutes. Rising tensions between Iran and the West have created a potentially dangerous situation in the Gulf and markets are jumpy.
Builders under scan
Mortgage brokers and lenders have felt the heat and now its time for homeowners across the USA. Federal investigators have opened a criminal probe against the lending practices of Beazer, an Atlanta Based homebuilder operating in more than 40 markets across the country. Beazer made substantial profits during the housing boom from selling the homes it constructed as well as financing some of the buyers who moved into them.
What Beazer did is a very common practice, but the problem is that they have pushed the bounds. The FBI, the Internal Revenue Service, the Justice Dept., and the Inspector General of the Housing & Urban Development Dept. have even started looking into the company's mortgage business and other dealings.
Yen falls
The value of Yen fell further on March 29, 2007 against high-yielding currencies outperforming. The fall comes as a major hiccup as investors re-entered carry trades after a rise in equity markets and a testimony from the Federal Reserve Chairman. Although the Chairman acknowledged risks to the economy from the U.S. housing market, he didn't he also didn't rule out inflationary pressures…a message that was taken by markets to mean that the Fed is not ready to cut interest rates yet.
ABN deal would make Barclays a big Asian player
Barclays is eyeing on acquiring ABN AMRO in a deal estimated worth $80 billion. The move will help Barclays capture ABN AMRO 's regional credit cards and the fast-growing Indian and Pakistan markets. Barclays has around 3,000 staff in Asia and the acquisition will give it an enhanced strength of nearly 14,000 staff employed by ABN AMRO.
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