Tuesday, March 13, 2007

Just two weeks after China sent global markets into a tumble, growing worries about sub-prime mortgage lenders in the United States are sending jitters through stock exchanges around the globe. The three major US stock market indices each fell two percent from Monday’s closing price, marking the second-biggest loss of 2007. London’s FTSE 100, Paris’ CAC 40 and Frankfurt’s DAX 30 indices each closed down more than 1 percent.

As the Mortgage Bankers Association reported that late payments on mortgages and home foreclosures in the US homes rose in the fourth quarter to their highest level in years, investors are concerned that not only US banks but also multi-national banks around the globe could have exposure.

More than two dozen sub-prime lenders have closed or sold operations as defaults on those mortgages have risen. “The delinquencies and defaults have started to soar,” said Nicolas Retsinas, director of Housing Studies at Harvard University. “A lot of these lenders started to make loans and lost track of some of the fundamentals.”

New Century Financial Corporation, the second largest sub-prime lender in the US, has recently revealed that its creditors were no longer providing funds and, further, it has become subject of an SEC investigation. The New York Stock Exchange has said it will delist New Century. Accredited Home Loan Lending, another major sub-prime mortgage specialist, said it was seeking fresh capital and waivers on its lending covenants.

Sub-prime lenders provide mortgages to people who do not qualify for loans from mainstream lenders, typically due to their credit histories. The lenders then bundle these mortgages as collateral for loans that they obtain from other financing firms, such as GMAC. Such firms can then repackage these loans and sell them as mortgage-backed securities. These securities may end up in the hands of major multi-national banks such as Citibank, HSBC, and Commerzbank. Each level of lending assumes a level of financial risk, but trouble can arise when the risk tolerances are exceeded. If too many homeowners default on their mortgages, the sub-prime lender can end up defaulting. If too many of these lenders default, as it is feared may be happening now, the defaults can cascade upward. While no one is predicting major bank failures at this point, it is feared that their profits could be hurt.

Monday, March 19, 2007

The Airbus A380, the world’s largest passenger plane, was set to land in the United States of America on Monday after a test flight. One of the A380s is flying from Frankfurt to Chicago via New York; the airplane will be carrying about 500 people.

It is being billed as the first time it has carried a near-normal number of passengers, though most will be staff of Airbus and German airline Lufthansa.

A second A380 is also travelling to the U.S. on Monday, but without passengers. This will be branded as a Qantas flight and fly from Frankfurt to Los Angeles LAX airport. The first leg of the flight going towards New York will be travelling under a Lufthansa flight number, and is due to arrive at New York’s John F. Kennedy airport at 12:30 EST (16:30 UTC).

The test flights are being used to monitor everything from how easily the plane docks at the terminal gate to the way the in-flight dining and entertainment services work. Deliveries to Singapore Airlines, its launch customer, are not due until October – two years late.

Delays of the production of the A380 have cost Airbus more than 6 billion dollars. Airbus has warned there could be additional charges to come.

These monetary problems have led to a recently-announced restructuring program at Airbus, called Power8, in which 10,000 jobs go and several factories will be sold to Airbus partners. France will lose 4,300 jobs, followed by Germany having a loss of 3,700 jobs, while the United Kingdom and Spain will see 1,600 and 400 jobs cut respectively.

The Belgian government has announced that it will give up to 150 million € (US$ 199 million) in aid to help sub-contractors which supply Airbus and employ thousands of workers.

Wednesday, September 8, 2010

The Chicago White Sox scored a narrow 5–4 victory Monday against the Detroit Tigers after White Sox player A.J. Pierzynski scored a go-ahead run in extra innings. The go-ahead run gave the White Sox two extra runs.

“We’re just finding ways to win games. We’re battling. We’re not giving at-bats away,” Pierzynski, catacher for the White Sox, said after the game.

Though the White Sox led 3–2 in the fourth inning, Mark Kotsay got out at home plate when attempting to get the White Sox a fourth run. Later, Tiger Don Kelly scored a home run, pushing the Tigers up to a lead of 4–2. The homer had both Kelly and Miguel Cabrera scoring a run each. The White Sox also hit a run in the eighth inning.

Also notable was that rookie relief pitcher Chris Sale won his first game after pitching in the tenth inning. Sale, who is on the Sox, earned praise from Chicago manager Ozzie Guillen, who said “very, very pleasant surprise. Very, very nice.”

The White Sox are currently 3 1/2 games behind the Minnesota Twins in the American League Central Division in the MLB. The Sox currently has a record of 77 wins and 60 losses, and have won four games in a row. The Detroit Tigers are third in the Central Division with a record of 68–70, and are 13 games behind Minnesota.

The game was played in Comerica Park in Detroit. 32,924 people attended the game.