General News:
– U.S. stocks declined after Lehman Brothers Holdings Inc. analysts reduced their earnings estimates for Countrywide Financial Corp. and traders pared bets that the Federal Reserve will lower its benchmark lending rate.
– Sales of previously owned homes fell in July for a fifth month and the glut of unsold properties swelled to a 16-year high as the housing slump in the U.S. dragged on.
– The rally in 30-year Treasury bonds, the most profitable U.S. government securities the past 15 months, may become a casualty of the Federal Reserve’s efforts to ease a widening credit crunch.
– Oil and gasoline futures slid, following Wall Street lower after a home sales report raised further concerns about economic growth.
– Bad credit has supplanted terrorism as the gravest immediate risk threatening the economy, a key national research group reported.
Asia/Europe:
Asia:
– Asian stocks advanced, set for the highest close in two weeks, after U.S. economic reports eased concern losses from subprime home loans will slow growth in the world’s largest economy.
– China Life Insurance Co., the world’s biggest insurer by market value, said first-half profit more than doubled on soaring returns from stock market holdings.
– Credit Suisse Group, the second- largest Swiss bank, hired Rob Jesudason from JPMorgan Chase & Co. to head its financial institutions group in Asia excluding Japan, the company said.
– The yen rose, snapping a three-day slide against the dollar and the euro, on speculation Japanese exporters bought the currency to settle month-end accounts.
Europe:
– European stocks advanced for a seventh day as concern eased that losses from subprime loans will slow economic growth in the U.S.
– Kazakhstan ordered Eni SpA to halt work at the world’s biggest oil discovery in 30 years as the Central Asian country follows Russia’s lead in seeking greater control over its natural resources.
– European Central Bank President Jean- Claude Trichet stepped back from his earlier signal that interest rates will be increased next week, saying policy makers plan to wait before deciding whether financial market turbulence is hurting economic growth.
– The euro, battered by the dollar since reaching a record a month ago, may climb to new highs this year as U.S. central bankers lower the cost of credit and European policy makers signal that interest rates will rise.
– ABB Ltd., the world’s largest maker of factory robots, will sell Lummus Global to Chicago Bridge & Iron Co. for $950 million to focus on power and automation technology. The Swiss company will remain liable for possible fines over “suspect payments” at the unit.
Corporate News:
– Home Depot Inc. (HD), the world’s biggest home-improvement retailer, cut the price of its construction- supply unit by 18 percent to $8.5 billion and agreed to guarantee $1 billion of the leveraged buyout, three people familiar with the plan said.
– Acer Inc., competing with Lenovo Group Ltd. for sales in Asia, agreed to buy Gateway Inc. for $710 million, helping the company surpass its rival as the world’s third-biggest personal computer maker by adding U.S. customers.
– Altria Group Inc. (MO), the world’s largest tobacco company, may say this week that it will spin off its Switzerland-based international unit as investors seek overseas growth and reduced exposure to smokers’ lawsuits.
– Yahoo Inc. (YHOO) will introduce new features for its popular Web-based e-mail program, including software that allows computer users to type text messages on a keyboard and send them directly to someone’s cell phone.
– United States Steel Corp. (X) is buying Canadian steel maker Stelco Inc. (STE.TO) for about $1.1 billion in a move expected to bolster its position as a supplier to the North American automotive industry.