U.S. stocks rise ahead of Fed interest-rate decision Tuesday

Dec 10, 2007

U.S. stocks rise ahead of Fed interest-rate decision Tuesday

NEW YORK
U.S. stocks climbed Monday as financial shares paved the way, with the
sector bolstered by an $11.5 billion investment in Swiss banking giant
UBS AG and investors riding a wave of optimism sparked by Tuesday's
likely interest-rate cut.

The Fed: Quarter-point cut and discount-rate move seen as likely

WASHINGTON
Wall Street economists firmly expect a rate cut of a quarter of one
percentage point and also engineer an even larger reduction in the
discount rate when the Federal Reserve meets tomorrow to consider its
monetary policy.

UBS adds $10 bln in write-downs, gets hefty cash injection

LONDON
Swiss banking giant UBS warned Monday that it will write down the value
of its subprime mortgage holdings by a further $10 billion, leading to a
loss in the fourth quarter and potentially wiping out all its profits
for the year.

Fed expected to lower rates despite raging inflation

WASHINGTON
In a glorious bit of timing, the Federal Reserve is expected to cut
interest rates on Tuesday for a third straight meeting, just days before
government data are released showing some of the highest inflation rates
in decades.

Construction firms rise in Europe, broader market muted

LONDON
Construction stocks got a lift from Lafarge's deal-making plans on
Monday, outperforming a muted broader European market where investors
were evaluating an update from Swiss bank UBS and preparing for an
upcoming U.S. interest rate decision.