General News:
– U.S. stocks declined for a second day after Merrill Lynch & Co. analysts said tighter credit markets will hurt earnings at banks and a gauge of home prices fell by a record in the second quarter.
– Confidence among American consumers dropped by the most in two years and home prices extended their decline, suggesting spending growth may stall after a housing- induced credit-market rout.
– Street Street Corp., the largest U.S. money manager for institutions, fell as much as 5.2 percent in New York trading after a report said the company has credit lines to $22 billion of asset-backed commercial paper.
– U.S. home prices fell 3.2% in the second quarter, the steepest rate of decline since Standard & Poor’s began its nationwide housing index in 1987.
Asia/Europe:
Asia:
– Asian financial stocks fell, led by DBS Group Holdings Ltd. and Westpac Banking Corp., as the decline in the market for U.S. subprime mortgages caused the cost of credit to rise.
– Singapore Airlines Ltd., Asia’s most profitable carrier, will buy a stake in China Eastern Airlines Corp., gaining more access to a market forecast to grow fivefold by 2025.
– The yen advanced the most in almost two weeks against the dollar and euro as speculation banks will report more credit-market losses pushed traders to reduce riskier investments funded by loans in Japan.
– China Telecom Corp., the nation’s biggest fixed-line phone operator, reported second-quarter profit that missed analyst estimates after users signed up for cheaper rates at mobile carriers.
– Lockheed Martin Corp., the world’s biggest defense contractor by sales, and Boeing Co. are among six companies competing for a 420 billion rupee ($10 billion) order to build fighter jets for India, the world’s largest combat plane contract in 15 years.
– DBS Group Holdings Ltd., Singapore’s largest bank, said it had S$2.4 billion ($1.6 billion) at risk from collateralized debt obligations, more than earlier stated, after an entity it manages was forced to seek funding.
Europe:
– European stocks fell for the first time in more than a week, led by financial companies, on concern the subprime-mortgage rout is spreading and will erode global economic growth.
– German business confidence fell to a 10-month low in August after an increase in the cost of credit clouded the outlook for economic growth.
– Barclays Plc rebuffed a newspaper report that it provided funding to an investment unit for Landesbank Sachsen Girozentrale, the German public lender squeezed by a global credit crunch.
– Hellman & Friedman LLC’s Capital Partners IV Fund has generated a 36 percent return for investors since 2000. Kohlberg Kravis Roberts & Co.’s Millennium Fund has done even better, notching a 41 percent take since 2002.
– Money-supply growth in the euro region accelerated to the fastest pace in 28 years in July, adding to the European Central Bank’s concern about inflation pressures.
Corporate News:
– Wendy’s International Inc. (WEN) gave Nelson Peltz access to its books as the billionaire investor considers an offer of as much as $3.23 billion for the third- largest U.S. hamburger chain.
– Lehman Brothers Holdings Inc. (LEH), Bear Stearns Cos. (BSC) and Citigroup Inc. (C) were downgraded to “neutral” from “buy” by Merrill Lynch & Co. (MER) analyst Guy Moszkowski, because of probable losses on mortgage bonds and leveraged loans, as well as a slowdown in investment banking.
– Medco Health Solutions Inc., the biggest U.S. manager of drug benefits, will buy PolyMedica Corp. (PLMD) for $1.5 billion to expand care for Americans with diabetes.
– Grocery-store chain Winn-Dixie Stores Inc. (WINN), which emerged from Chapter 11 bankruptcy in November, said it swung to a profit in the fiscal fourth quarter due to sales growth and cost-cutting measures.