General News:
– U.S. stocks retreated, led by miners, steelmakers and manufacturers, on concern that the housing slump will hinder economic growth.
– Countrywide Financial Corp. rose as much as 12 percent after Bank of America Corp. bought $2 billion of preferred stock in the company, erasing concern the nation’s largest mortgage lender will go bankrupt.
– Central bankers from Santiago to Seoul are raising interest rates to fight inflation in a bet that this month’s global financial-market turmoil won’t derail economic growth enough to contain prices at home.
– Goldman Sachs Group Inc.’s Global Equity Opportunities hedge fund rose 12 percent last week after the securities firm shored up the money-losing pool with $3 billion of cash, investors said.
– Smithfield Foods Inc., the world’s biggest hog and turkey producer, reported quarterly net income doubled on rising beef and pork sales. Hormel Foods Corp. said profit fell on higher costs to make Spam meats and bacon bits.
– Federal Reserve policy makers’ uncertainty over the credit crunch’s toll on U.S. growth is making them increasingly unlikely to cut interest rates before their Sept. 18 meeting.
– The Dubai stock exchange broke a law on takeovers in its efforts to acquire Nordic bourse operator OMX AB, Sweden’s top financial regulator ruled, but did not impose any sanctions.
– Oil prices rose after falling to an eight-week low in the previous session on news of falling U.S. gasoline stockpiles.
– At the North Carolina offices of mortgage lender HomeBanc Corp., Archie Clark is the only employee left. But in a few days, he’ll be gone, too. When Clark finishes helping movers from the company’s Atlanta headquarters collect computers and other property, he’ll join the more than 25,000 workers nationwide who have lost jobs in the financial services industry since the beginning of the month — with more than half coming since last Friday.
– Rates on 30-year mortgages sank this week to their lowest point since late May, providing a little ray of sunlight for would-be home buyers.
– Fewer people signed up for jobless benefits last week, an encouraging sign that most businesses aren’t resorting to big layoffs amid a housing slump and the painful credit crunch.
Asia/Europe:
Asia:
– Asian stocks gained for a fourth day, the longest winning streak in seven weeks, after a capital injection into the biggest U.S. mortgage lender reduced concern a rout in credit markets will derail economic growth.
– Industrial & Commercial Bank of China Ltd. and Bank of China Ltd., the nation’s two largest financial institutions, reported first-half profits that beat estimates on sales of mutual funds and credit cards.
– PetroChina Co., Asia’s biggest oil company by market value, posted an unexpected gain in first-half earnings as refineries returned to profit and tax payments fell.
– Bank of China Ltd., the nation’s second-largest bank, said it holds almost $9.7 billion of securities backed by U.S. subprime loans, the most of any Asian company.
– General Electric Co.’s Bank of Ayudhya Pcl plans to pay 17 billion baht ($494 million) for its auto financing unit in Thailand to help cut funding costs and expand. The lender’s shares rose.
– Hong Kong billionaire Li Ka-shing used another asset sale to keep profit growing at his biggest company and cover a fourth year of losses on high-speed wireless services. Some investors aren’t convinced he can keep it up.
Europe:
– European stocks climbed for a fifth day after a capital injection into Countrywide Financial Corp. reassured investors the fallout from the global credit rout will be limited.
– Holcim Ltd., the world’s second- biggest cement maker, increased profit more than analysts estimated on expansion in China and India and may acquire a controlling stake in Ambuja Cements Ltd. of India.
– The yen fell against the euro and dollar on speculation investors resumed riskier bets financed by borrowing in Japan.
– Rentokil Initial Plc, the U.K. company whose services range from pest control to tropical plants, said first-half earnings fell 50 percent after it lost some contracts.
– Kuoni Reisen Holding AG, the largest Swiss travel company, fell the most in more than four years in Zurich trading after unexpectedly reporting a 57 percent drop in first-half profit.
– British Airways Plc, Europe’s third- largest airline, and Korean Air Lines Co. were fined $300 million each in a U.S. court today after admitting they reached secret agreements with competitors in setting fuel surcharges.
Corporate News:
– BP America (BP), after weeks of criticism by environmentalists and politicians, announced Thursday it will not increase the amount of pollution it dumps into Lake Michigan.
– Wall Street is still not convinced that Wachovia Corp.’s (WB) $24 billion purchase last year of one of the country’s largest mortgage lenders was a smart bet. But bank executives say the doubters are wrong and insist the takeover is working out just fine.
– Moody’s Investor Services (MCO) said it is still reviewing Countrywide Financial Corp.’s (CFC) debt ratings for possible downgrade even though the troubled mortgage lender received a $2 billion investment from Bank of America (BAC).