General News:
– Treasuries rose, pushing two-year note yields to the lowest since September 2005, as Federal Reserve Bank of Atlanta President Dennis Lockhart said job growth started weakening in June and stocks fell.
– Joseph Lewis, the British-born, Bahamas-based currency trader, paid $860.4 million for a 7 percent stake in Bear Stearns Cos., making him the beleaguered brokerage firm’s largest shareholder.
– Two Federal Reserve bank presidents suggested that the U.S. economy is weakening after the labor market shrank in August, and that the housing market shows no sign of recovery.
– U.S. stocks fell for a second day, led by mortgage companies and homebuilders, after San Francisco Federal Reserve President Janet Yellen said the U.S. economy is under “downward pressure” because of the housing slump.
– The worst U.S. housing slump in 16 years may lead mortgage companies to eliminate almost 100,000 jobs, more than double the number already cut this year.
Asia/Europe:
Asia:
– Japan’s economy contracted at almost twice the pace forecast by analysts in the second quarter, reinforcing speculation the central bank will leave interest rates unchanged this year.
– The dollar fell to the lowest in a month versus the euro as traders bet the Federal Reserve will cut interest rates next week while the European Central Bank may boost borrowing costs by year-end.
– Asian stocks fell the most in more than three weeks after the U.S. unexpectedly shed jobs for the first time in four years and Japan’s economy shrank.
– Newcrest Mining Ltd. plans to sell A$2 billion ($1.6 billion) of stock to close its hedge book and repay debt as Australia’s largest gold-mining company bets on a rising bullion price.
– Blackstone Group LP, manager of the world’s biggest buyout fund, agreed to pay as much as $600 million for a 20 percent stake in China National BlueStar Group Corp., marking its first Chinese acquisition.
Europe:
– European stocks fell a second day after Washington Mutual Inc. of the U.S. said it may have to set aside more money to cover bad loans and the International Monetary Fund said it will cut its global-growth forecast.
– Royal Philips Electronics NV, Europe’s largest maker of televisions, raised its profit forecast because of lower costs after merging the health-care units and consumer divisions.
– The Bank of England should do more to calm the “fear and panic” in financial markets to prevent corporate borrowing costs from rising further, former policy maker Willem Buiter said.
– Deutsche Bank AG is “confident of delivering” on its profit targets for next year and beyond, Chief Executive Officer Josef Ackermann told investors, after analysts cut earnings estimates for Germany’s biggest bank.
– Banks and companies need to refinance almost $140 billion of commercial paper in Europe by the end of next week and will push up yield premiums on corporate bonds, according to Deutsche Bank AG, Germany’s biggest bank.
– European Union antitrust regulators asked Google Inc.’s customers and rivals whether the company’s proposed $3.1 billion takeover of DoubleClick Inc. will restrict competition for online ads, an EU questionnaire shows.
Corporate News:
– Intel Corp., the world’s largest computer-chip maker, raised its quarterly sales forecast after taking customers from Advanced Micro Devices Inc.
– The Home Depot Inc., the world’s largest home improvement store chain, revised its financial outlook Monday, paring its expected decline in earnings per share from continuing operations thanks to a tender offer that will reduce the number of its outstanding shares.
– Following three high-profile recalls by Mattel Inc. this summer involving millions of Chinese-made, lead-tainted toys, The Walt Disney Company will begin independently testing toys featuring its characters, company officials said.
– Advanced Micro Devices Inc. launched its highly publicized new server chip Monday, delivering the biggest jolt to its product lineup in four years.