General News:
– The Federal Reserve lowered the interest rate it makes to banks and acknowledged for the first time today that an extraordinary policy shift is needed to contain the subprime-mortgage collapse that began roiling the world’s financial markets two months ago.
– U.S. stocks rose the most in a week after the Federal Reserve unexpectedly cut its discount rate and said it stands ready to “act as needed” to keep credit market losses from sapping economic growth.
– Confidence among U.S. consumers dropped in August to the lowest level in a year as slumping stocks and a widening credit crunch added to their worries about weakness in the housing market.
– U.S. financial-services shares rose for a second day, led by mortgage lender Countrywide Financial Corp., after the Federal Reserve cut banks’ borrowing costs to alleviate a credit crunch.
– Crude oil, copper and gold advanced after an unexpected cut in the Federal Reserve’s discount rate eased concerns that a credit crunch will slow economic growth and hurt demand for raw materials.
– U.S. 30-year Treasury bonds fell as the Federal Reserve cut its discount lending rate.
Asia/Europe:
Asia:
– Asian stocks had their worst week in 17 years and the yen gained the most since December 2005 as investors fled high-yielding, or riskier, assets funded by loans in Japan’s currency.
– Australia’s central bank bought the nation’s currency for the first time in six years to stem the steepest drop since it was allowed to trade freely in 1983.
– The yen was poised for its biggest weekly gain versus the dollar and euro in almost nine years as traders dumped investments funded by loans in Japan.
Europe:
– European stocks rose the most in a year after the U.S. Federal Reserve unexpectedly lowered the rate at which it loans money to banks to ease the effects of a rout in global credit markets.
– The European Central Bank should scrap plans to raise interest rates in September after markets around the world plunged, economists said.
– Borse Dubai, owner of the emirate’s two stock exchanges, offered 27.7 billion kronor ($3.96 billion) for Sweden’s OMX AB, topping a bid from Nasdaq Stock Market Inc.
– JPMorgan Chase & Co. revised its forecast for European Central Bank interest rates, saying the bank will keep borrowing costs on hold until turbulence on financial markets abates.
Corporate News:
– Hewlett-Packard Co. (HPQ) continues to cash in on ravenous demand for personal computers and lucrative printer ink, with third-quarter sales and profit that easily beat Wall Street’s expectations.
– Dell Inc. (DELL) executives have finally wrapped up a yearlong internal investigation into accounting problems at the computer company, and the mistakes could end up costing them as much as $150 million.