General News:
– Adjustable rate mortgage applications were down 22.6% after falling 16.5% the week prior. The one year ARM rate is a stunning 6.51% above the 30 year fixed rate. It rose sharply. Last week. These stats, if you can believe them, point to a credit crunch and reflect the dislocation in the markets. It is also interesting that he average loan for refinancing is down about $15,000 in the last few weeks. This may be a sign of lower home prices.
– .S. stocks rebounded from their steepest drop in three weeks after earnings prospects for technology companies improved and energy producers advanced with the price of oil.
– Cheyne Capital Management Ltd., a London-based hedge fund, may be forced to liquidate $6 billion in assets backing a commercial paper program after the global credit rout reduced the value of the securities, Standard & Poor’s said.
– Leona Helmsley’s dog will continue to live an opulent life, and then be buried alongside her in a mausoleum. But two of Helmsley’s grandchildren got nothing from the late luxury hotelier and real estate billionaire’s estate.
– The subprime mortgage crisis is spreading to a somewhat unexpected place: homes costing more than $500,000. As lending has rapidly gotten more restrictive for borrowers taking out large loans, sales of expensive homes have fallen sharply around the country during what should be one of the busiest seasons for buyers and sellers, mortgage bankers and real estate agents say.
Asia/Europe:
Asia:
– Asian stocks fell, following declines in the U.S., on concern a rout in credit markets will hurt banks’ earnings and slow growth in the world’s biggest economy.
– The yen fell, snapping a two-day gain versus the dollar and euro, on speculation a rebound in European and U.S. stocks will encourage investors to sell the currency to buy higher-yielding assets abroad.
– Mitsubishi Motors Corp., the Japanese automaker that hasn’t made a profit at home in seven years, may miss its domestic sales goal after reducing deliveries of low-margin minicars to rental fleets.
– Cnooc Ltd. said first-half profit declined 11 percent, less than analysts expected, as China’s largest offshore oil producer reined in operating costs.
– Thailand’s central bank unexpectedly kept its benchmark interest rate unchanged for the first time this year after a U.S. housing-loan crisis caused stocks and the baht to slide.
– Bear Stearns Cos., under pressure from wrong-way bets on U.S. subprime mortgages, appointed John Moore as chief executive officer for Asia as it seeks to boost the share of revenue coming from outside its home market.
Europe:
– European stocks climbed on speculation the global credit debacle will be limited to the financial industry and won’t spread to the broader economy.
– DaimlerChrysler AG, the world’s second-largest maker of luxury cars, announced a record stock buyback and raised its profit forecast on higher Mercedes-Benz earnings and lower costs from the sale of Chrysler.
– Consumer confidence in Germany, Europe’s largest economy, declined for the first time in six months on concern rising borrowing costs may hamper economic growth and company earnings.
– Renault SA, France’s second- largest carmaker, said sluggish auto demand in Europe will make it tougher for the company to meet its 2009 vehicle- sales target. The stock fell as much as 4.8 percent.
– PartyGaming Plc, the world’s biggest Internet poker company, rose the most in London trading since going public in 2005 after first-half profit beat analysts’ estimates.
Corporate News:
– Altria Group Inc. (MO), the world’s largest tobacco company, plans to spin off Philip Morris International after being pressured by investors who want faster overseas growth and less risk from U.S. smokers’ lawsuits.
– Williams-Sonoma Inc. (WSM), the biggest U.S. gourmet-cookware chain, reported profit that exceeded analysts’ estimates and increased its annual earnings forecast. The stock jumped the most in more than five weeks.
– Chrysler LLC, the U.S. automaker now controlled by Cerberus Capital Management LP, is proposing to sell or close at least two non-automaking units as part of its contract talks with the United Auto Workers, two people familiar with the negotiations said.
– Cruise lines and their passengers spent $17.6 billion in the United States in 2006, and New York and Hawaii were among the fastest growing embarkation points for cruise travelers, according to a recent study.
– Kraft Foods Inc. (KFT) said that its chief financial officer, James Dollive, will retire this fall after nearly three decades with the world’s No. 2 food maker.
