S&P presciently cut its outlook for Lehman Brothers on the drop in the stock price. Already down 40%, that should help investors quite a bit, thanks guys. Markets are very concerned that Lehman will be unable to find the capital it very much needs. It is looking like a shotgun weeding could be at hand, but likely with the government as witnesses, not the father of the bride (ie footing the bill…)
The dollar is taking it in stride at the moment, holding weaker levels. A continued oil slide is helping ofset some of the pressure on the dllar from the reversal of Monday’s stock rally. EUR/USD trades at 1.4170 and usd/jpy at 107.20.