The Financials Review
For the week of October 31, 2011

By Frank LaMantia

MF Global seems to be on its last leg as the Federal Reserve suspended any business that the company can perform. Shares have been halted and Interactive Brokers may bid in a supervised auction. MF Global may see Chapter 11 bankruptcy after investing in European bonds that back sovereign debt. (1) New rules caused Credit Suisse to cut 1,000 jobs in its investment banking unit. In July the bank mentioned it was planning to cut over 2,000 jobs. There are plans to cut the dividend and cut assets that are risky by $100 million, to reduce the chance of a future financial crisis. (2) After the close today Anadarko Petroleum and Herbalife will announce earnings. Anadarko has found profits in Mozambique and could surprise the industry in the distant future. Herbalife is said to be beating its competitor Avon. (3) There is negative vibe to the markets this morning as Japan intervenes to help the Yen and that Europe may have red tape to clear for austerity measures. Also, HomeServe cannot make outgoing calls after being accused of mis-selling products. A retraining program has been implemented so that staff can provide better information to clients when it comes to products and pricing. (4)

1) http://finance.yahoo.com/news/Report-MF-Global-to-seek-Ch-apf-590521534.html
2) http://finance.yahoo.com/news/Credit-Suisse-to-cut-1000-rb-702668909.html
3) http://www.cnbc.com/id/45077472
4) http://www.cnbc.com/id/45100161

Disclaimer: Past performance is not indicative of future results. Trading futures and options involves substantial risk of loss and is not suitable for all investors. Fundamental factors, seasonal and weather trends, daily news, and other current events may have already been factored into the markets. The use of stop loss or contingent orders may not protect profits and may not limit losses to the amount intended. Certain market conditions make it difficult or impossible to execute such orders.