Midday Market Roundup 24/09/2008
Our market is going OK today – up 28 – good result considering the heavy falls on Wall Street and our futures suggesting a 71 point fall in the market this morning. Our market has been inspired by Warren Buffett's decision to invest at least $5bn in Goldman Sachs which jumped 8.5% in after-hours trading. Berkshire's preferred stock in Goldman will pay 10% and can be bought back any time at 10% premium. The warrants also allow Berkshire to buy $5bn in common stock at $115 a share any time over the next 5 years. Goldman also announced it would raise another $2.5bn in its own public stock offering. It is a big vote of confidence for the markets and for Goldman's in particular and that there is light at the end of the tunnel.
