The value of the United States' biggest bank Bank of America (BofA) fell 15 percent at close of Monday trading (going 20 percent down at its lowest in the course of the day). With a market capitalisation down to USD70 billion, Apple could buy BofA with cash and still have USD6 billion stashed away for a rainy day.
In the aftermath of the Monday's crash, the Dow is down 634 points (or a 5.5% fall) and the Nasdaq is down 175 points (down almost 7%.
The Philippines' Central Bank (Banko Sentral ng Pilipinas or BSP) is monitoring its foreign debt and equities portfolio which is managed by third-party fund managers. Despite an 80 percent ceiling imposed by rules governing BSP investment policy, 99 percent of the portfolio is reportedly exposed to US currency...
A re-assessment of the country’s foreign currency capital invested in long-dated securities will be done eventually, although Tetangco said this is not necessary at this time since Philippine funds invested in the US markets are still safe even after the US government’s credit rating downgrade from Triple A investment instruments to a notch lower “AA-” with a negative outlook.
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The BSP has an ongoing review of its so-called “Reserve Management Framework” that the treasury department, headed by Tetangco, has been crafting since last year with the objective of shifting the country’s foreign currency assets.
The impact of turmoil in world markets in the aftermath of the downgrade of US debt from AAA to AA+ by Standard and Poor on the Philippine national budget is being assessed by the Philippine Government. Senate finance committee chairman Sen. Franklin Drilon has since ordered a review of assumptions used in formulating the budget, giving the committee 60 days to assess the "position" on the “issue”.
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