General News:– U.S. stocks rose after new home sales and durable goods orders topped economists’ forecasts in July, spurring speculation the economy can weather losses in credit markets.
– American businesses kept spending in July and the housing industry showed signs of stability before this month’s financial-market rout.
– Home Depot Inc., the home improvement retailer that agreed in June to sell its contractor-supply business, may cut the original $10.3 billion price by about $1 billion to salvage the deal, two people with knowledge of the matter said.
– Blackstone Group LP said its annual tax bill would increase by $525 million, or triple what it would otherwise pay, under legislation proposed in the U.S. Senate.
– A teenager in New Jersey has broken the lock that ties Apple’s iPhone to AT&T’s wireless network, freeing the most hyped cell phone ever for use on the networks of other carriers, including overseas ones.
Durable good orders rose 5.9% and 3.7% excluding transport. Much stronger than expected. Here are some points:
· Non-defense capx excluding air rose 2.2% after being down the prior two months
· Defense capital goods surged 35.7%
· Transportation rose 10.8%. Production was higher than normal on UAW strike fears.
· Aircraft orders were up 20.4%
· There was broad strength in major categories with the exception of computers and electrical equipment.
Asia/Europe:
Asia:
– Asian stocks fell for the first time in five days after Bank of China Ltd. said it had almost $9.7 billion invested in U.S. subprime loans.
– China’s yuan rose the most in more than six weeks as a central bank official said capital inflows pose a risk to the economy, spurring speculation the government will allow faster currency gains to cool growth.
– Bank of China Ltd. had its biggest drop since going public last year after the nation’s second- biggest bank said it holds almost $9.7 billion of securities backed by U.S. subprime loans, the most of any Asian company.
– Insurance Australia Group Ltd., the nation’s largest auto and home insurer, had its fifth consecutive decline in earnings on higher payouts for storms and narrowing profit margins. The company’s shares headed for their biggest drop in almost five years.
– The dollar fell against the euro as diminished concern over losses in credit markets encouraged investors to buy assets outside the U.S.
– Singapore’s industrial production grew at the fastest pace in more than a year in July as drug companies increased output to meet orders.
Europe:
– European stocks climbed after a report showed sales of new homes in the U.S. unexpectedly rose for the second time this year in July, suggesting the housing market is stabilizing.
– Growth in Europe’s manufacturing and service industries slowed in August as the pace of orders cooled, indicating turmoil in world credit markets may be starting to weigh on the economy.
– Standard Chartered Plc dropped as much as 4.7 percent in London trading on speculation the company may be understating its risk from Whistlejacket Capital Ltd., an $18 billion debt fund managed by the U.K. lender.
– John Browne, former chief executive officer of BP Plc, left Apax Partners Worldwide LLP to help expand the energy business of rival buyout firm Riverstone Holdings LLC.
– The U.K. economy accelerated in the second quarter, driven by consumer spending and business services, putting it on course for the best growth performance in three years.
– Belgacom SA, Belgium’s biggest phone company, reported second-quarter profit that beat analysts’ estimates on sales of high-speed Internet access and increased its revenue forecast.
Corporate News:
– Burger King Holdings Inc. (BKC), the second-largest U.S. hamburger chain, posted a fourth-quarter profit that exceeded analysts’ estimates on late-night orders and sales from its breakfast menu.
– H.J. Heinz Co. (HNZ), the ketchup-maker under pressure from billionaire investor Nelson Peltz to boost sales, said first-quarter profit rose 5.8% as the company introduced new products and backed them up with marketing.
– Tribune Co. (TRB) said its revenue fell 5.9% last month on a continuing tailspin in classified advertising sales that resulted in an even steeper decline in its newspaper division.
– A federal appeals court on Thursday cleared the way for Whole Foods Market Inc. (WFMI) to buy rival organic grocer Wild Oats Markets Inc. (OATS).
– The Home Depot Inc. (HD) and a group of private equity firms are discussing cutting the $10.3 billion price on the company’s proposed sale of its wholesale distribution business by about $1 billion, a person with direct knowledge of the situation said.
– Home Depot (HD) is close to accepting about $1.2 billion less for the sale of its wholesale distribution business to three private equity firms, The Wall Street Journal reported.
