General News:– U.S. stocks rallied on speculation the government will help people with delinquent mortgages keep their homes.
– President George W. Bush today pledged to help people with risky subprime mortgages keep their homes and tighten safeguards against predatory lending, while rejecting a bailout for “speculators.”
– The Federal Reserve will do what’s needed to prevent this month’s credit market rout from undoing the six-year economic expansion, Chairman Ben S. Bernanke said.
– Consumer spending and wages in the U.S. rose more than forecast in July, the latest sign that the economy was strengthening before the cost of credit soared.
– Investors returned to high-yield corporate bond funds last week, adding money for the first time in 12 weeks as appetite for high-risk debt rose, JPMorgan Chase & Co. said, citing AMG Data Services.
– Electricite de France SA, the world’s biggest operator of nuclear power plants, agreed with Constellation Energy Group Inc. to build four reactors in North America to benefit from growing demand for atomic energy.
Asia/Europe:
Asia:
– Asian stocks rose to a three-week high ahead of an announcement by U.S. President George W. Bush of measures to help subprime-mortgage borrowers.
– India’s economic growth unexpectedly accelerated last quarter, stoking inflation concerns that may force the central bank to raise interest rates further. Stocks and the rupee extended gains.
– Quanta Computer Inc., the world’s largest maker of notebook computers, reported second-quarter profit doubled on sales of laptops to customers including Hewlett-Packard Co. and Dell Inc.
– Toyota Motor Corp., poised to become the world’s largest automaker, may widen its lead over General Motors Corp. as it forecasts vehicle sales will rise 6.1 percent in 2009.
– Japan’s consumer prices declined for a sixth straight month in July, showing that the world’s second- largest economy has yet to overcome a decade of deflation. Industrial production and household spending dropped.
– The Australian and New Zealand dollars snapped three days of losses against the yen on speculation Japanese investment funds plan to add to their holdings of higher-yielding debt.
Europe:
– European stocks climbed before President George W. Bush announces steps that may help U.S. subprime borrowers keep their homes.
– Two of Metro AG’s biggest investors bought a controlling stake in Germany’s largest retailer, spurring speculation they’ll press the company to speed expansion abroad or sell real estate.
– Barclays Plc, the U.K.’s third- biggest bank, will help rescue a $1.6 billion debt fund run by London-based asset manager Cairn Capital after it was unable to raise money in the credit markets.
– European consumer and business confidence dropped more than economists forecast in August to a six-month low after the collapse of the U.S. subprime-mortgage market led to higher borrowing costs worldwide.
– Arcandor AG, the owner of Germany’s biggest department-store chain and the Thomas Cook travel agency, rose the most in two years in Frankfurt trading after saying it’s in talks about retail alliances.
– Mergers and acquisitions slowed from a record pace as rising costs for credit eroded investor confidence and led to the worst month for takeovers in two years.
Corporate News:
– Entertainment and telecom conglomerate Vivendi SA reported that its second-quarter earnings dropped 49% from a year earlier, when it had a gain from an asset sale, and said it is sticking to its forecast for the full year.
– Northwest Airlines Corp. (NWA) is ending August without the waves of cancellations that plagued it earlier this summer. Northwest canceled just two flights on Thursday, and 10 on Wednesday, well under one percent of its schedule on both days.
