FFA sell-off blamed for tumbling dry bulk indices

FORWARD freight agreement traders have again shouldered some of the blame for tumbling dry bulk indices, as investment banks and hedge funds sell off derivatives contracts during the crisis gripping the global financial sector. 

The move has added further pressure to the Baltic Dry Index, which fell 6.1% to its lowest level in 19 months today. 

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HK police arrest 11 for spreading rumors about AIG

Rival insurer MassMutual Asia Ltd. acknowledged that the suspects were its agents and managers and staff hired by them. However, it denied in a statement that the company was involved in the case and said it would cooperate in the police investigation.

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Manulife eyes bid for AIG’s Asian units

Manulife Financial Corp. is weighing a bid for Asian operations of American International Group Inc., a move that would vault the Canadian insurer into the top ranks of one of the world’s hottest insurance markets.

Chief executive officer Dominic D’Alessandro and his successor Don Guloien, who will take over when Mr. D’Alessandro retires in May, have been meeting with investment bankers and financial advisers in the past week to look at an offer for parts of AIG, according to people familiar with the matter.

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Global stocks fall again as US bailout stalls

Asian and European stock markets fell on Friday as political wrangling held up a 700-billion-dollar bailout package for the US financial system despite earlier hopes that a deal was near.Investor sentiment took another hit from the overnight collapse of the second largest US savings and loan institution, Washington Mutual, which heaped yet more pressure on markets.

World stocks jumped Thursday on signs a deal was near on the US government’s plan to buy toxic mortgage-related assets from financial firms at the heart of the global credit crisis.

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J.P. Morgan to Take Over Faltering WaMu

J.P. Morgan Chase & Co. was expected to announce as early as Thursday night a deal to acquire the bulk of Washington Mutual Inc.’s operations in a deal that would mark the end of independence for what once was the largest U.S. thrift.

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CEOs who got out before crisis left with millions

With a Wall Street bailout looming that will almost certainly limit CEO pay, some of the poster boys of the financial crisis have already fled the scene, taking millions of dollars in severance packages with them.

Stanley O’Neal walked away from Merrill Lynch with a package now worth about $66 million. Less than a year later, the storied investment house was forced into a takeover by Bank of America.

Ken Thompson was ousted from Wachovia in June with a “golden parachute” now worth more than $5 million, and Chuck Prince was forced out at Citigroup with a parting gift now valued at $16 million.

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RIM’s outlook disappoints as costs increase

In addition to a light earnings-per-share outlook, the company revealed a gross-margin forecast that was softer than many had anticipated. RIM blamed increased expenses related to its latest handsets like the BlackBerry Bold, a high-end model targeting the company’s mainstay base of corporate users.

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Discover May Gain $4 Billion in Visa, MasterCard Suit

Visa and MasterCard may have to pay as much as $18 billion if the suit fails to settle. U.S. courts earlier determined that restrictions placed on banks by the world’s two largest card companies stifled competition and violated federal antitrust law.

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China’s Sinopec Acquiring Tanganyika Oil

In a statement released Thursday, Tanganyika announced that it had reached a deal that would see all of its outstanding common shares acquired by Chinese refiner Sinopec International Petroleum Exploration and Production Corporation (SIPC) for $2 billion.

The all-cash transaction, valued at $31.50 per share, represents a significant premium for the company based on recent and historical stock prices, according to the statement.

Tanganyika shares soared last week after the Calgary-based company announced it had entered into sales talks without identifying the third party involved.

On Wednesday, the stock price stood at $26, just 75 cents shy of an all-time high reached in early July and nearly three times the historical low of $9.89 set in January

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GE cuts outlook, halts buyback

The industrial conglomerate, widely seen as a barometer for the U.S. economy, said it would earn between 43 cents and 48 cents per share in the third quarter, down from a previous outlook of 50 cents to 54 cents.

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