US sharemarket enjoys bounce

PETER CAVE: There's been another bounce in the US sharemarket overnight, as investors jumped on falling oil prices and better than expected news from a major investment bank. But that doesn't mean the financial crisis engulfing the world's biggest economy is easing, with the International Monetary Fund warning that the worst is far from over. I'm joined on the line … joined in the studio by our business editor, Peter Ryan. Peter, why won't Wall Street believe that the sky is falling? PETER RYAN: Well Peter this is actually about news that is less worse than expected and today we have had the big investment bank. JPMorgan Chase, which rescued the Wall Street investment bank Bear Stearns earlier this year, report its second quarter earnings and these were actually significantly down because of the subprime exposure from... [read full story]