General News:
– Countrywide Financial’s (CFC) monthly data showed continued deterioration in credit. Delinquency as a percent of unpaid principal balance was 4.89% up from 4.77% in June and 3.61% a year ago. Foreclosure as a percent of the same was at 5.10% up from 4.98% in June and 0.46% a year ago.
– Producer Prices, a measure of U.S. prices at the wholesale level rose less than forecast in July, indicating inflation outside of energy costs remains contained.
– Crude oil rose the most in two weeks in New York as OPEC increased its forecast for demand next quarter and a tropical depression moved toward the Caribbean.
– The U.S. trade deficit dropped to a four-month low in June as record exports of farm goods and autos offset a jump in crude oil prices, the Commerce Department reported. Imports from China hit an all-time high despite a string of recalls of tainted Chinese products.
– Don Imus has reached a settlement with CBS over his multimillion-dollar contract and is negotiating with WABC radio to resume his broadcasting career there, according to CBS and a person familiar with the negotiations.
Asia/Europe:
Asia:
– Asian financial stocks fell after Australian mortgage lender Rams Home Loans Group Ltd. said “unprecedented disruptions” in credit markets may reduce its profit.
– Nokia Oyj offered to replace as many as 46 million mobile-phone batteries made by Matsushita Electric Industrial Co. as some may overheat, in what would be the largest voluntary consumer electronics recall.
– Citic Securities Co., poised to overtake Nomura Holdings Inc. as Asia’s biggest brokerage, said first-half profit jumped more than fivefold as a surging Chinese stock market fueled share trading and underwriting fees.
– Australia’s Rams Home Loans Group Ltd. said the shakeout in global debt markets may cut profit, sparking a 19 percent plunge in the stock that makes it the nation’s worst-performing initial public offering this year.
– Seiyu Ltd., the Japan unit of Wal- Mart Stores Inc., changed its forecast to a fifth-straight annual loss as sales growth stalls.
Europe:
– European stocks fell, led by financial-services companies after UBS AG said profit growth may slow and bank shares declined in the U.S. and Asia.
– Europe’s economy grew at the slowest pace in more than two years in the second quarter, hurt by weakness in manufacturing and construction.
– UBS AG, Europe’s largest bank, fell to the lowest in a year on the Zurich exchange after the company acknowledged that “turbulent” markets may reduce profit in coming months.
– European Central Bank President Jean-Claude Trichet, who spearheaded a global injection of cash into the banking system, signaled the need for emergency funding is abating as financial markets settle.
– Turkey’s central bank left its benchmark interest rate unchanged at a 2 1/2-year high for the 13th consecutive month as policy makers wait for the new government to chose a president and announce spending cuts.
Corporate News:
– Wal-Mart Stores Inc. (WMT), the world’s largest retailer, said second-quarter profit rose less than analysts anticipated and lowered its earnings forecast, causing the stock to fall the most in five years.
– Citigroup Inc. (C), the biggest U.S. bank by assets, may lose as much as $3 billion in the third quarter because of the credit crisis, according to analysts at Sanford C. Bernstein & Co. LLC.
– Mattel Inc. is recalling 18.6 million Chinese-made products around the world, its second recall in two weeks, mostly because they contain magnets that may fall out and be swallowed by children.
– Home Depot Inc. (HD), the world’s largest home-improvement retailer, said profit fell 15 percent and revenue dropped for the first time in four years after a U.S. housing slump reduced demand for appliances and remodeling.
– Nokia Corp. (NOK) warned that up to 46 million batteries used in some of its cell phones could be faulty and pose a risk of overheating.
– Shares of rapidly growing software maker VMware Inc. increased more than 70% in one of Silicon Valley’s most anticipated stock market debuts since Google Inc. mesmerized Wall Street three years ago.
– TJX Cos. (TJX) said its second-quarter profit was cut by more than a half as the discount store operator recorded a $118 million charge due to costs from a massive breach of customer data, mostly to build up a reserve to cover estimated future expenses.