Stocks fall sharply as EU summit hopes wane - msnbc.com
A look at why the markets are moving lower ahead of Europe's summit, and why the big investors are moving to U.S. Treasury bonds, with Todd Colvin, R.J. O'Brien interest rate products.
U.S. stocks tumbled at the opening of trading, following global markets lower after Spain requested help for its struggling banks.
The Dow Jones industrial average is down 145 points to 12,497 shortly after the opening bell Monday.
The Standard & Poor's 500 index fell 18 points to 1,317 and the Nasdaq composite lost 40 points to 2,853.
Spain isn't saying how much of the 100 billion euros made available by the European Union that it will need. The request comes just ahead of a critical European economic summit in Brussels.
Investors have been losing faith that Europe will act quickly to address the financial problems at countries most at risk.
European markets are sharply lower. Stocks are down 3 percent in Spain and Italy.
Markets continue to react to European headlines as the spiraling debt crisis in Europe could further hurt an already weak global economy. Austerity measures pushed forward by Germany have Greece mired in a long recession, and investors worry Spain could follow Greece's path as Madrid's borrowing costs remain stubbornly high.
A German government spokesman said the EU will probably not take any decisions on Greece in a summit scheduled for Thursday and Friday, in which Greeks were hoping to ease the terms of their bailout.
"There's a sense the EU summit is going to be inconclusive, so we're seeing risk assets fall," said Peter Cardillo, chief market economist at Rockwell Global Capital in New York.
Cardillo said the market will focus this week on Europe, but the lagging fear is a stalling global economy.
"The European situation is just a big excuse. If, all of a sudden, we see economic growth in Asia and the United States, Europe would be a secondary deal for the market and not the focus."
U.S. stocks ended higher on Friday, led by gains in bank shares, as the S&P 500 index bounced back from its second-worst decline of the year. The gains were not enough, however, to push indexes into positive territory for the week.
The Associated Press and Reuters contributed to this report.
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Oi! NatWest, I want my money: How young schoolteacher called Natalie Westerman is being bombarded with complaints on Twitter - Daily Mail
- The 22-year-old has written 'I'm not a bank' on her Twitter profile
- She has been branded a 'dunce' and told to 'sort it out'
- English and media teacher has received more than 200 tweets
- Chaos at bank has now run into a sixth day, with calls for boss Stephen Hester to resign
- A systems failure has left wages unpaid and customers unable to withdraw money, pay bills or use credit cards
- Treasury is monitoring the situation
- Ms Westerman says she will not be changing her username
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A young schoolteacher has received a barrage of abuse from angry banking customers because her internet profile is called ‘NatWest’.
Natalie Westerman, a 22-year-old from Newcastle upon Tyne, posts on social networking site Twitter under the name NatWest - because it is her nickname.
But since NatWest bank’s IT problems began causing chaos for its customers across the country, Ms Westerman has been receiving the brunt of people’s frustrations.
Spot the difference: Natalie Westerman, 22, has received a barrage of abuse over Twitter following the bank's IT problems - because her username is NatWest
The English and Media teacher has received more than 200 tweets from irate NatWest customers.
She said: 'I joined Twitter about five years ago, when it wasn’t such a huge thing and was only really big in America at the time.
'I chose the username NatWest because that has been my nickname since school.
'It wasn’t until about six months later that I started to get a few comments from people mistaking me for the bank.
'I would just re-direct them and tell them they had made a mistake.
'Companies such as NatWest had not actually started using Twitter yet.
'It is only in the last few years that the mistakes have become more frequent.
'I find it quite amusing to be honest. I have had a few abusive messages in the past but most of the time it’s just people asking me where their money is.'
Identity crisis: The English and media teacher says she finds the confusion funny - and won't be changing her name
Ms Westerman has set her profile description as ‘I’m a 22 year old woman and I’m not a bank’ - but still gets mistaken for the banking giant.
Bank boss Stephen Hester faced calls to resign today as the computer chaos at NatWest ran into a sixth day, prompting the Treasury to monitor the situation.
The bank was this morning still unable to confirm when customer accounts would be returned to normal - almost a week after a systems failure that has left wages unpaid and customers unable to withdraw money, pay bills or use credit cards.
Mr Hester, who is chief executive of the taxpayer-funded RBS Group, which owns NatWest, has promised that 'no one will be left permanently out of pocket' by the computer glitch.
A Twitter user called DAZER asked Ms Westerman: 'Oi @Natwest can I have my money please :('.
Hannah Gangoon told the young teacher, 'NATWEST NEED TO SORT IT OUT', while a user called ‘Mercedes’ branded her a ‘dunce’
Now that the true identity of ‘NatWest’ is becoming known, abusive Tweeters are backtracking and sending their apologies to Ms Westerman.
Twitter user Bethany Black said: 'Can I just apologise now for all the abuse you’ve had off me over the last year thinking you were the bank who f****d up my money.'
Ms Westerman has been replying to tweets and redirecting complaints to @natwest_help - the bank's actual account on the social networking site.
As the tweets continued to roll in, she wrote: 'Ive never felt so popular in my life. I am a person called nat west not a bank.'
She added: 'My friends find it hilarious when I tell them about all the messages I have received.
'I am a teacher and when I recently told the children about what had happened they found it very funny.
'I don’t think that I am going to change my username because I have got friends on Twitter from New Zealand and I don’t want to lose them.
'It does not really bother me when people do mistake me for the bank and it's just humorous more than anything.'
'Ann Summers parties revolutionised the business' - Daily Telegraph
It was only when I had the idea [of taking lingerie and sex toys to women in their homes and creating the Ann Summers party] that it totally revolutionised the business. Then, we turned from being a male-dominated business to a female institution.
HAVE YOU EVER WORRIED ABOUT HOW YOU WERE GOING TO PAY THE BILLS?
Yes, around that time when I earned just £45 a week. I was living in Rochester, travelling up to London and getting the train back out to Whyteleafe, Surrey, where the business was based. Forty-five pounds didn't go very far, especially when I had big travel expenses. It was difficult. I still remember those times and it stays with you, but I think it's good to have been through that journey, as it was a solid grounding.
YOU WERE VERY YOUNG WHEN YOU TOOK OVER AS CHIEF EXECUTIVE IN 1987 – WERE YOU NERVOUS?
I wouldn't say nervous, but I was shy. I'd never had any business training, although I was very passionate about my idea and focused. Experience and achievement came with confidence and I had a lot of courage.
YOUR father MADE HIS WEALTH WITH THE SUNDAY SPORT BEFORE EXPANDING INTO FOOTBALL CLUBS AND PRIVATE JETS. WAS HIS NAME A HELP OR HINDRANCE AS YOU STARTED OUT?
Back then Dad wasn't famous. Ann Summers became famous, then he moved into football [becoming chairman of Birmingham FC and West Ham FC] afterwards. For me it was a hindrance at the time but stood me in good stead for the future. We didn't have a close relationship, he didn't agree with nepotism, quite rightly, and it was difficult. If you're "the daughter of …" people think you're born with a silver spoon in your mouth, yet if you're a son following in his father's footsteps it's a different mentality.
HOW REALISTIC ARE TV SHOWS LIKE THE APPRENTICE?
I absolutely love the show and it's compelling viewing. However, I do think it sends out the wrong message. It encourages a blame culture, stifles creativity and holds people back from coming forward. I'd hate women especially to think that they have to be aggressive to be successful, which I think The Apprentice portrays. I really enjoy it but I'd like to see something else on TV that's more nurturing for women.
Dragons' Den is also compelling viewing, but I know a lot of successful people and you don't need to be ruthless. There are some very nice people who are successful in business and they're engaging and encouraging with their people. I hope I've demonstrated that you can be successful but stay feminine and true to yourself.
WHAT'S BEEN YOUR BEST BUY?
It has to be buying Ann Summers because we bought the name and just two shops, in Marble Arch and Bristol, for just £10,000, and our business now has a turnover of more than £150m.
AND YOUR WORST?
I invested in a project many years ago called Bite magazine for women. Unfortunately, because we were publishing it ourselves, newsagents assumed it was a "top shelf" magazine so instead of displaying it alongside Marie Claire and Vogue it was stuck on the top shelf, which most women can't reach anyway. The magazine industry is a tough one, let's put it that way.
IS THE SEX INDUSTRY RECESSION-PROOF?
We are a unique proposition. In difficult times, I'd certainly rather be in our shoes than many other retailers out there, but that doesn't mean you can be complacent because customers aren't as loyal as they used to be. I think what sets the winners apart from the losers are companies that really do differentiate themselves from their competitors, which we do extremely well.
ARE YOU A SPENDER OR SAVER?
I'm definitely a spender but I'm not frivolous and spend wisely, so I'm more likely to invest. It's not so much that I love getting a bargain, because value for money is probably more important to me.
YOU'VE ENDURED EXTREME CHALLENGES, FROM CHILDHOOD ABUSE, DIVORCE, DEPRESSION, IVF, THE TRAGIC DEATH OF YOUR BABY, ALFIE, AND A FORMER NANNY POISONED YOU. DID THOSE SETBACKS MAKE YOU THINK OF SLOWING DOWN?
No, they just drive me more. I realise that I've probably experienced more challenges than most people, but I'm not a victim and I've always pressed forward in the face of adversity. Every experience is a learning curve and an opportunity to make a better life for my family and me.
DO YOU INVEST IN STOCKS AND SHARES?
Yes, as a family. My husband is a City trader so that side of things he deals with extremely well. Our most recent investment was in a company called Ceravision, an energy-saving light bulb company, and it's doing extremely well. They're green and energy-efficient and we're really pleased.
WHAT'S YOUR BIGGEST EXTRAVAGANCE?
Before I had Scarlett, it was definitely clothes and shoes, but nowadays I just don't even get time to go shopping, so it probably has got to be my home. I've invested a lot of money in my home, including hundreds of thousands of pounds on security. When you have a profile, you hear of scares every now and then, so I'd never ever short-change my security.
WHEN YOU STARTED OUT, COULD YOU HAVE EVER IMAGINED YOU'D AMASS A MULTI-MILLION FORTUNE?
No, I never had a clue it was going to be like this. I knew there was a lot of cynicism around my idea. People said: "This isn't going to work, it's just a fad." I identified a gap in the market and had so much encouragement from my customers. I learnt a lot from them and it grew very rapidly at about 20pc every year.
AS A ROLE MODEL, WHAT IS YOUR ADVICE TO GIRLS WHO DREAM OF STARTING THEIR OWN BUSINESS?
You have to be very focused, do your research and identify who your customer is. I meet women all the time with fantastic ideas, so don't be put off by anyone who tries to burst your bubble. If you can get a mentor, that's also a big help. It's so important that we have positive female role models and it's sad that there aren't enough of us, because there are so many women out there with so much to offer and so much talent but with so little inspiration.
DOES MONEY MAKE YOU HAPPY?
Money doesn't make you happy on its own, but it certainly helps and anyone who says it doesn't isn't telling the truth.
US STOCKS SNAPSHOT-Wall St falls at open as EU summit hopes wane - Reuters UK
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NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.
Stocks, Euro Decline Before EU Summit as Treasuries Gain - Bloomberg
Global stocks fell for a third day, the euro weakened and Treasuries rose on concern a meeting of European leaders this week will fail to help contain the region’s debt crisis. Crops rallied and Egyptian shares climbed the most since 2008.
The MSCI All-Country World Index (MXWD) slid 1.4 percent at 10:32 a.m. in New York, while the Standard & Poor’s 500 Index retreated 1.5 percent. The euro traded below $1.25 for the first time since June 13. The yield on the 10-year U.S. Treasury note declined seven basis points to 1.61 percent, and the German bund yield fell 11 basis points. The Spanish 10-year yield increased 24 basis points. Oil led commodities lower while corn and soybeans rallied on concern dry weather will limit harvests.
Failure by leaders at the summit to come up with measures to shore up the weakest countries may be “fatal” for the euro, billionaire investor George Soros said yesterday, while German Chancellor Angela Merkel rejected joint euro-area bonds or bills in a speech today. Greek Prime Minister Antonis Samaras is recovering from surgery and won’t attend the summit. Central banks are facing the limit of their ability to boost economic growth, the Bank for International Settlements said.
“Already hopes that significant achievements will be achieved at the EU summit this week seem to be fading and converging towards our low expectations,” Vincent Chaigneau, global head of interest-rate strategy at Societe Generale SA in Paris, wrote today in a report.
Market Leaders
The S&P 500 extended losses after last week’s 0.6 percent retreat. Stocks briefly trimmed declines after Commerce Department data showed demand for new U.S. homes rose more than forecast in May, with purchases climbing 7.6 percent to a 369,000 annual rate.
Energy, financial and technology shares led declines in all 10 of the main industry groups in the S&P 500 today. Bank of America Corp., Caterpillar Inc., JPMorgan Chase & Co. and Intel Corp. lost more than 2.6 percent for the biggest declines in the Dow Jones Industrial Average as all 30 stocks retreated except for Wal-Mart Stores Inc.
Alcoa, the largest U.S. aluminum producer, is scheduled to report second-quarter results on July 9 to start the earnings season for Dow companies. Profits at S&P 500 companies fell 1.1 percent in the April-June period, according to analyst estimates compiled by Bloomberg. That would mark the first year-over-year decrease since 2009.
European Markets
The Stoxx Europe 600 Index (SXXP) dropped 1.7 percent. Unicredit SpA and BNP Paribas SA led a selloff in banks, both falling at least 5 percent. Nokia Oyj lost 10 percent amid speculation Samsung Electronics Co.’s earnings may miss some analyst estimates. Shire Plc slumped 11 percent after regulators approved a generic version of its second-biggest selling drug.
The MSCI Emerging Markets Index (MXEF) slipped 1.4 percent, falling for a third day. The Shanghai Composite Index slid 1.6 percent to the lowest close since Jan. 16. The ISE National 100 Index fell 1.6 percent in Istanbul. Turkey is weighing a response after Syria shot down one of its warplanes in international airspace, Foreign Minister Ahmed Davutoglu said.
Egypt’s EGX30 Index jumped 7.6 percent, the most since February 2008, after Mohamed Mursi, the Muslim Brotherhood candidate, was declared the country’s first freely elected president. The rupee rose 0.1 percent, paring earlier gains of as much as 1.4 percent, after the central bank said India increased the amount of rupee-denominated debt overseas investors can own by $5 billion to $20 billion.
Dollar Climbs
The euro sank 0.7 percent to $1.2484 and 1.7 percent against the yen. The Dollar Index (DXY), which tracks the U.S. currency against those of six trading partners, jumped 0.4 percent.
Policy makers should create a European Fiscal Authority to purchase sovereign debt in return for Italy and Spain implementing achievable budget cuts, Soros said in London. Funding would come from European Treasuries backed by each euro member, he said.
Greek Prime Minister Antonis Samaras, set to be discharged from the hospital today after eye surgery, won’t attend the summit. A visit by the international creditors to determine how far Greece has slipped behind on budget targets that underpin access to the international funds was also suspended.
The Italian two-year yield climbed 53 basis points to 4.33 percent, with the similar-maturity Spanish yield advancing 41 basis points. The Belgian five-year note yield dropped three basis points as the government sold 2.8 billion euros ($3.5 billion) of 2017, 2022 and 2032 bonds. Germany sold 2.045 billion euros of 12-month bills, while France auctions as much as 8.4 billion euros of short-dated securities.
The 30-year U.S. Treasury bond yield declined eight basis points to 2.68 percent.
Corn and soybeans rallied more than 3.5 percent. Much of Iowa and Illinois, the biggest U.S. corn and soybean-growing states, will be mostly dry until at least June 29, according to the National Weather Service. Brent crude fell 0.9 percent to $90.21 a barrel and oil dropped 1.3 percent to $78.76 a barrel in New York, erasing earlier gains of as much as 1.2 percent, as tropical Storm Debby shifted away from offshore energy installations.
To contact the reporters on this story: Stephen Kirkland in London at skirkland@bloomberg.net; Richard Frost in Hong Kong at rfrost4@bloomberg.net
To contact the editor responsible for this story: Nick Baker at nbaker7@bloomberg.net
Stocks Decline for Third Day as Euro Weakens Before EU Meeting
Chris Ratcliffe/Bloomberg
A stock index line is displayed on an electronic screen at the Hellenic stock exchange in Athens.
A stock index line is displayed on an electronic screen at the Hellenic stock exchange in Athens. Photographer: Chris Ratcliffe/Bloomberg
Stocks slip to 1-week low on global growth jitters - The Guardian
Her brain cell must of had a glitch when she chose nat west
- Bugsy, Spain, 25/6/2012 15:58
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