General News:
– U.S. stocks rose for the first time in three days on speculation consumers will weather an economic slowdown and spur profit growth.
– The National Association of Realtors reduced its home sales forecast for the ninth time this year and said the housing slump will extend into 2008.
– The U.S. trade deficit unexpectedly narrowed in July as Boeing Co., General Electric Co. and Deere & Co. shipped more airplanes, engines and tractors overseas.
– OPEC agreed to increase oil production for the first time in more than a year, concerned that near-record prices would damage a world economy already suffering from weakness in the U.S. housing industry.
– Health-insurance premiums paid by U.S. businesses for their workers rose 6.1 percent this year, the smallest increase in eight years, a study found.
Asia/Europe:
Asia:
– China’s inflation rate accelerated to a 10-year high and the trade surplus widened, adding pressure on the central bank to raise borrowing costs for the fifth time this year.
– Asian stocks rose, paced by Posco and JFE Holdings Inc. on higher steel prices. Mitsubishi UFJ Financial Group Inc. and Mitsui Fudosan Co. led Japanese banks and developers from their lowest levels more than in a year.
– Recalls of Chinese goods by U.S. companies almost tripled in the past three months, threatening to cut overseas revenue for the world’s biggest consumer- products exporter.
– Japan’s machinery orders surged in July at three times the pace forecast by economists, easing concern the economy will contract for a second quarter.
Europe:
– European stocks rose for the first time in three days after Ericsson AB, the world’s largest maker of wireless network equipment, said growth will remain “strong” and a rally in copper prices lifted mining companies.
– European Central Bank President Jean-Claude Trichet said there is a risk that inflation will accelerate, suggesting he may raise interest rates once financial-market turbulence subsides.
– The European Commission cut its growth estimate for the euro-area economy after the collapse of the U.S. subprime market raised borrowing costs worldwide.
– Volkswagen AG plans to introduce 12 new models over the next three years as Europe’s largest carmaker seeks to boost sales 33 percent and challenge Japan’s Toyota Motor Corp.
Corporate News:
– Airbus SAS delivered 294 airliners in the eight months through August, one fewer than Boeing Co., putting its rival on course to hold the title of world’s largest maker of commercial planes for the first time since 2002.
– McDonald’s Corp. reported impressive August sales Tuesday, attributing a better-than-expected 8.1 percent increase in same-store results to strong demand for its breakfast items, drinks and new Chipotle chicken wrap as well as a continuing turnaround in Europe.