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.
–