General News:
– The Federal Reserve is expected to keep rates the same at 5.25%.
– U.S. worker productivity gained less than forecast in the second quarter and labor costs rose, suggesting inflation remains a risk as the Federal Reserve sets interest rates today.
– Bear Stearns Cos.’ decision to liquidate two bankrupt hedge funds in the Cayman Islands instead of New York may limit creditors’ and investors’ ability to get their money back.
– U.S. stocks fell after a government report showed labor costs climbed more than forecast in the second quarter, bolstering speculation the Federal Reserve has less leeway to lower interest rates.
– CIT Group Inc., the commercial-finance company whose shares have dropped 40 percent in the past month, said it has “considerable liquidity” to weather a slump in demand for mortgages that’s pushed rivals into bankruptcy.
– Sun Microsystems Inc., the computer company that has fired 3,700 employees since May 2006, will spend $100 million to $150 million to eliminate more jobs.
Asia/Europe:
Asia:
– Asian energy stocks fell, led by Inpex Holdings Inc., after oil dropped for a third day. Macquarie Bank Ltd. and HSBC Holdings Plc gained on speculation the U.S. government will take steps to contain subprime mortgage losses that triggered declines in global equities.
– Shinsei Bank Ltd., Japan’s second- worst performing bank stock this year, said losses on subprime loans reached $30 million and it has more than six times that amount of U.S. mortgage-backed securities that may be affected.
– Hongkong Land Holdings Ltd., one of the biggest business-district landlords in the world’s second- most expensive city for offices, said first-half profit surged 30 percent amid rising commercial rents.
– India imposed curbs on companies seeking to borrow from overseas to slow capital inflows that have pushed the rupee to a nine-year high, hurting exports.
Europe:
– European stocks rose on speculation the Federal Reserve may signal today that credit market losses are slowing U.S. economic growth, reigniting expectations borrowing costs will fall.– Swiss Reinsurance Co., the world’s largest re-insurer, said second-quarter profit rose 45 percent after the purchase of a General Electric Co. unit boosted premiums.– Xstrata Plc offered 7.5 billion rand ($1.07 billion) for Eland Platinum Holdings Ltd., South Africa’s best-performing stock this year, and said first-half profit more than doubled.
Corporate News:
– Molson Coors Brewing Co. (TAP), one of the world’s largest brewers, said its second-quarter profit rose 18 percent fueled by strong sales of Coors Light in the U.S. and Canada. – Marsh & McLennan Cos. (MMC), the largest U.S. insurance brokerage, said second-quarter profit rose 3%, driven by revenue growth in its risk and insurance business and consulting operations.– Warner Music Group Corp. (WMG), one of the world’s largest recording companies, said its fiscal third-quarter loss widened as more people bought digital music, rather than CDs.– Harrah’s Entertainment Inc. (HET), which is being taken private in a $17.1 billion deal, said its second-quarter profit surged 85%, as visitor volume powered growth in Las Vegas and a new race track casino in Pennsylvania offset weak results in Atlantic City, N.J.– Pipeline operator and natural gas producer El Paso Corp. (EP) said its second-quarter profit rose nearly 11 percent from a year ago, helped by gains at its exploration and production and pipeline businesses. – Duke Energy Corp. (DUK), one of the largest electric power companies in the United States, said its second-quarter profit fell 17 percent after it spun off its natural gas business at the beginning of the year.– Tyco International Ltd. (TYC) said it fell to a fiscal third-quarter loss due to hefty charges primarily related to a legal settlement, but adjusted results managed to top Wall Street’s expectations.
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