General News:
– Consumer prices in the U.S. rose 0.1% in July, the smallest gain in eight months, suggesting inflation is less of a threat than Federal Reserve policy makers had anticipated.
– Two-year Treasury yields fell to an 18-month low on signs losses linked to U.S. subprime mortgages are widening.
– Energy futures surged on concerns that Tropical Storm Dean will turn into a hurricane and strike oil and gas installations in the Gulf of Mexico.
– Sales of existing homes fell in 41 states during the April-June quarter while home prices were down in one-third of the metropolitan areas surveyed, a real estate trade group reported.
– Most folks can correctly name George Washington as the nation’s first president. After that, things get tricky. The U.S. Mint is hoping its new dollar coin series will help refresh some hazy memories of Adams, Jefferson and all the rest.
Asia/Europe:
Asia:
– Asian stocks slumped to a three-month low, led by Mitsubishi UFJ Financial Group Inc. and Sumitomo Mitsui Financial Group Inc., after the banks reported losses on investments related to U.S. subprime loans.
– The yen rose to a four-month high against the dollar and the euro as widening credit-market losses prompted investors to cut higher-yielding assets funded by loans in Japan.
– Emerging-market shares and currencies fell, with Indonesian stocks tumbling the most in three years, after widening losses linked to U.S. subprime loans prompted investors to shun riskier assets.
– Basis Capital Fund Management Ltd. told investors losses at one of its hedge funds may exceed 80 percent as the U.S. subprime mortgage rout prompted creditors to force the Sydney-based company to sell assets.
– Hong Kong Exchanges & Clearing Ltd., operator of Asia’s third-largest stock market, fell to the lowest close in more than a week on concern a downturn in global markets may make it hard for the company to repeat record earnings.
– China’s problems with lead in consumer products go far beyond tainted toys. From playthings to paint to gasoline, Chinese companies use lead in a wide range of products and experts say China’s children are suffering the health consequences.
Europe:
– European stocks dropped for a second day, led by banks on concern losses from the subprime-mortgage rout will hurt earnings.
– Kaupthing Bank hf, Iceland’s biggest bank, agreed to buy NIBC Holding NV for 3 billion euros ($4 billion), less than a week after the Dutch investment bank disclosed losses on U.S. subprime-mortgage bets.
– Fund managers are the most risk averse in a year on concern rising defaults will hamper economic growth and sap earnings, a Merrill Lynch & Co. survey showed.
Corporate News:
– Agricultural equipment maker Deere & Co. (DE) said its third-quarter profit rose 23% as strong global sales offset declines in the U.S. and Canada.
– Countrywide Financial Corp. (CFC), the biggest U.S. mortgage lender, was downgraded to “sell” by Merrill Lynch & Co., which raised the possibility of bankruptcy if the company loses access to short-term financing.
– Nestle SA, Sara Lee Corp. and H.J. Heinz Co. reported profit that exceeded analysts’ estimates as they increased sales of healthier foods and raised prices.
