Auto Bailout Plan Pdf American Stock Market Closed Mixed

Auto Bailout Plan Unveiled; American Stock Market Closed Mixed December 22, 2008

Global News & Information

Global Capital Research Group Dow Jones Index tumbled by 25.88 points or 0.30% at

Major Global Indexes Closing

Margin (%)

Dow Jones

8579.11

-0.30

S&P 500

887.88

0.29

UK:UKX

4286.93

-1.01

Nikkei 225

8588.52

-0.91

Hang Seng 15127.51

-2.39

8579.11 points as of closing. American stock market closed mixed last Friday, with Dow Jones Index tumbled by 25.88 points or 0.30% at 8579.11 points; S&P 500 soared by 2.60 points or 0.29% at 887.88 points, and NASDAQ Index moved up by 11.95 points or 0.77% at 1564.32 points. American government will pull General Motor and

Major Price Indicator Closing

Chrysler out.

Margin (%)

Periodic bailout plan for two auto giants General Motor

WTI Crude Oil

33.87

-6.49

and Chrysler in America was unveiled after long-term

COMEX Gold

838.28

-1.72

discussion. The government decided on December 19 to

LME Copper

2930

1.74

distribute USD13.4bn from first part of the USD700bn for

LME Aluminum

1516

1.47

the two industrial giants as short-term loan. The fund will

BDI Index

818

-1.33

be allocated separately in December 2008 and early next year.

Hong Kong Industries

Moreover,

should

House

of

Representatives

approve the second part of USD700bn bailout plan, the

Closing

Margin (%)

two giants will gain another USD4bn loans in February

Info & Tech

903.23

1.59

2009. These loans of total USD17.4bn will maintain their

Raw Material

5483.19

-2.72

Telecom

1691.48

-3.12

Industrial Goods Energy

operation before March the next year. Standard & Poor’s down regulated ratings of 11

758.35

-3.36

7452.60

-3.57

financial institutes in Europe and America. Financial risks increased on the whole, Standard & Poor’s down-regulated ratings of 11 financial institutes last

Performance in Recent 5 Days

Friday, including Goldman Sachs, Morgan Stanley, Deutsche Bank, UBS, Bank of America, Citigroup, JPMorgan Chase & Co., Wells Fargo, Barclays Bank, RBS and Credit Suisse Global. Bank of Japan cut benchmark interest rate by 20 points to 0.1%. To ease further credit crunch and JPY appreciation, Bank of Japan announced on Friday to cut its benchmark

--- Hang Seng Index ---- SSE Composite Index

interest rate by 20 base points to 0.1% following Federal Reserve’s rate cut to 0-0.25% on December 16.

As far as we are concerned, Japan’s rate cut was mainly from prospect of exchange rate. World authoritative financial institutes like Federal Reserve, European Central Bank and Bank of England all cut their interest rates substantially since the beginning of sub-prime crisis; whereas extra-low interest rate in Japan prevented its central bank from further rate reduction, which largely appreciated the JPY, seriously harmed its export industry and destroyed its macro economy. After the rate cut, interest rate level in Bank of Japan will approach zero, thus pro-active quantitative currency policy might be implemented once again. Hang Seng Index closed low by 370.30 points or 2.39% at 15127.51 points. Hong Kong market opened low and continued the trend later on; as of closing on Friday; Hang Seng Index was down by 370.30 points or 2.39% to 15127.51 points, and Hang Seng Chinese Enterprises Index was frustrated by 119.75 points or 1.40% at 8435.31 points. Real estate shares outperformed Hang Seng Index. Real estate shares largely outperformed Hang Seng Index despite partial decrease. Cheung Kong (0001.HK) and R&F Properties (2777.HK) ascended by 2.58% and 1.35% respectively, meanwhile Henderson Land Development (0012.HK) and Sun Hung Kai Properties (0016.HK) fell by 0.46% and 1.34% separately. Financial sub-indexes underperformed. Financial sub-indexes underperformed. On financial concern, HSBC Holdings (0005.HK) largely decreased by 6.19% amid the sluggish market; whereas the six Chinese-funded banks and three insurance enterprises moved mixed, with China Construction Bank (601939) and PICC P&C (2328.HK) up by 3.67% and 1.10%, Bank of Communications (601328) closed even, and other six enterprises saw decline ranged from 0.25% to 4.95%.

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All opinions and estimates expressed are entirely those of TX as of the date appearing on this material only and are subject to change without notice. Neither TX nor its analysts accept any liability whatsoever for any direct or consequential loss arising from any use of this material or otherwise arising in connection therewith.

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Investment Rating System Performance of stock or sector relative to TX Free-float Index over next 6 months after research publications

1

Rating

Remark

Buy

Relative

performance

over

TX

Free-float

Index >15% 2

Overweight

Relative performance over TX Free-float Index 5% ~ 15%

3

Neutral

Relative performance over TX Free-float Index -5% ~ 5%

4

Underweight

Relative performance over TX Free-float Index -5% ~ -15%

5

Sell

Relative performance over TX Free-float Index <-15%

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