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Rate-cut speculation grows amid rout
FT Alphaville — ... that co-ordinated emergency rate cuts by the Federal Reserve and other central banks might be in the offing. On Tuesday, Australia cut rates by a percentage point, more sharply than expected, reports Reuters.The Fed earlier announced measures designed to revive the credit and commercial paper markets, including discussions with the US Treasury that would mark a dramatic step into unsecured lending. While all major stock indices slid, emerging markets were particularly hard hit, leading to warnings that the crisis could prove a tipping point for many developing countries, ...

Australia’s rate-cut shock
FT Alphaville — ... however, the move was broadly welcomed as the first concrete sign that central banks may be planning a wave of co-ordinated cuts to bolster bank lending and shore up markets. Stocks rallied across Asia after the Reserve Bank of Australia cut its benchmark cash rate by 100bp to 6 per cent and the focus shifted to how other central banks, from Japan to Europe, would answer the call from US officials for a “forceful and co-ordinated” global reaction to kickstart faltering bank lending, noted Reuters. The rate cut also halted the yen’s recent surge, ...

Tuesday morning links
The Mess That Greenspan Made — ... - MarketWatch Fed eyes plan to fund short-term business loans - AP Paulson's new 'Global Banking Corp.' IPO 2009 - MarketWatch INTERNATIONAL Royal Bank of Scotland leads plunge in UK banks - Telegraph Australia rate cut stuns, markets thirst for more - Reuters Worldwide Turmoil Could Reverse Years of Prosperity - Washington Post Fears of global recession deepen as stock markets plunge - LA Times Russia and Iceland move to stem banking crisis - Reuters Panicked Arab stock markets plunge ...