General News:– The Federal Reserve added $19 billion in temporary funds to the banking system through the purchase of mortgage-backed securities to help meet demand for cash amid a rout in bonds backed by home loans to riskier borrowers.
– .S. stocks tumbled for a second day, following European and Asian markets lower on concern the credit crunch will hamper growth in the world’s biggest economy.
– Shares of Countrywide Financial Corp. and Washington Mutual Inc. fell after the U.S. mortgage providers said demand has dried up and finding sources of new money may become more difficult.
– Treasuries rose, with two-year note yields touching the lowest in 18 months, as elevated money- market rates led the Federal Reserve to add extra cash to the banking system for a second straight day.
– U.S. regulators rejected Wyeth’s experimental antipsychotic bifeprunox for schizophrenia, sending down shares of Wyeth and its partner on the pill, Solvay SA.
– Prices of goods imported into the U.S. rose more than forecast in July on higher oil costs, highlighting Federal Reserve concerns that inflation may not subside.
– Oil prices were down for a second day Friday, slipping below $71 a barrel amid concerns over the U.S. economy. Light, sweet crude for September delivery lost 61 cents to $70.98 a barrel in trading on the New York Mercantile Exchange.
– Consumer confidence rebounded in August, rising to a five-month high as receding gasoline prices and a mostly solid employment climate made people feel better about the economy’s prospects and their own financial situations.
Asia/Europe:
Asia:
– Asian stocks slumped the most in five months as a widening credit crunch hurt prices of Macquarie Bank Ltd., Toyota Motor Corp. and Samsung Electronics Co.
– China’s trade surplus surged 67 percent in July to the second-highest on record, bolstering U.S. Treasury Secretary Henry Paulson’s case for a faster appreciation of the yuan.
– The Bank of Japan added 1 trillion yen ($8.49 billion) to the financial system, joining central banks in the U.S. and Europe in supplying cash to assuage a credit crunch.
– India’s industrial production grew in June at the slowest pace in eight months, below all estimates, as interest rates at a five-year high curbed consumer spending.
– PetroChina Co. shareholders approved a $5.6 billion Shanghai stock sale, agreeing to a plan that will enable China’s largest oil producer to close in on Exxon Mobil Corp. as the world’s biggest company by market value.
Europe:
– European stocks declined as concern increased that a widening credit crunch may hurt economic growth and earnings.
– The European Central Bank loaned 61.05 billion euros ($83.6 billion), pumping funds into the banking system for a second day after U.S. subprime mortgage losses rippled through credit markets and drove interest rates higher.
– Deutsche Bank AG’s DWS unit, Germany’s biggest mutual fund company, said the assets in one of its investment funds have fallen by 30 percent since the end of July as subprime mortgage losses roiled credit markets.
– Royal Bank of Scotland Group Plc, with 94.5 percent of shareholders approving the takeover of ABN Amro Holding NV, said market turmoil won’t derail the deal.
– Investors reduced bets on interest rate increases by the European Central Bank and the Bank of England after a credit crunch forced central banks to provide emergency cash.
Corporate News:
– Affiliated Computer Services Inc. (ACS) said that under terms of its takeover agreement it can no longer solicit competing takeover bids, potentially clearing the way for a buyout led by a private equity group and the company’s founder and chairman.
– Shares of California Pizza Kitchen Inc. (CPKI) fell following a disappointing quarterly report and a weak sales forecast as it faces challenges from higher labor and food costs.
– Shares of First Marblehead Corp. (FMD) dipped in Friday morning trading as the student loan services provider’s quarterly earnings report ominously foreshadowed how disruption in the credit markets will affect the company’s business.
– Shares of Red Lion Hotels Corp. (RLH) spiked as much as 4.1% in early trading Friday, before moving lower with the broader market, after an analyst upgraded the hotel operator on a potential buyout and signs of brand expansion.
– Health care services management company Hythiam Inc. said Friday its second-quarter loss widened as operating expenses surged with higher member utilization.
– Shares of First Solar Inc. (FSLR) fell after the solar cell maker said it priced an offering of 6.5 million shares of its common stock at $95 each.
– Shares of restaurant operator Steak n Shake Co. (SNS) fell sharply Friday after the company reported a third-quarter profit drop and lowered its fiscal-year guidance.
