- Asia-Pacific Bond Risk Rises, Credit-Default Swap Prices Show. The cost of insuring corporate and sovereign bonds in the Asia-Pacific region against non-payment rose, according to traders of credit-default swaps. The Markit iTraxx Asia index of 40 investment-grade borrowers outside Japan jumped 7 basis points to 141 basis points as of 8:46 a.m. in Singapore, Westpac Banking Corp. (WBC) prices show. The gauge is set for its third straight day of increases, the longest stretch in more than a month, according to data provider CMA. The Markit iTraxx Australia index climbed 3 basis points to 118 basis points as of 10:47 a.m. in Sydney, according to National Australia Bank Ltd. prices. The Markit iTraxx Japan index rose 1.5 basis points to 95.5 basis points as of 9:19 a.m. in Tokyo, according to Citigroup Inc. prices. The measure is heading for its highest close since July 11, CMA data show.
- Jobless Parisians Mean Fewer Peugeots in Slumping France. Marie-Estelle Cevatheean dreams of a new car that would be better suited to her growing family after having a baby late last year. Instead, with no work, the 31-year-old Parisian can’t afford to replace her seven-year-old Citroen (UG) C3 subcompact. “We don’t have the money yet to buy a new car,” Cevatheean said. “I need to find a job first.” With unemployment in France rising and consumer confidence at a record low, auto sales in the country have tumbled more than any other major European market this year. That portends more pain for French automakers Renault SA (RNO) and especially cash-strapped PSA Peugeot Citroen.
- French Auto Suppliers Post Profit Drop on Europe Slump. Michelin & Cie (ML) and Faurecia SA reported a drop of more than 10 percent in first-half profit as automakers pushed prices lower on slumping demand in Europe. Michelin, Europe’s largest tiremaker, said operating profit excluding one-time items declined 13 percent to 1.15 billion euros ($1.52 billion). Faurecia, the region’s biggest maker of car interiors, posted a 16 percent decrease in operating profit to 256 million euros.
- European Stocks Decline Amid Earnings Reports; BASF Falls. European stocks declined from an almost eight-week high as companies from BASF SE to ABB Ltd. reported earnings that missed analysts’ estimates. BASF fell to a three-month low after also saying that full-year targets now look more challenging. ABB tumbled the most in three months as its first profit increase in six quarters trailed forecasts and its order book shrank. Siemens AG plunged the most since August 2011 after saying it won’t reach its profit-margin goal for the 2014 fiscal year. Michelin (ML)& Cie. lost 1.4 percent after posting a 13 percent slide in first-half earnings. The Stoxx Europe 600 Index dropped 0.5 percent to 299.63 at the close of trading, after earlier falling as much as 1.1 percent.
- Egypt Islamists Call for ‘Freedom’ Rally Amid Army Pressure. The Muslim Brotherhood’s leader urged Egyptians to rally for “freedom,” setting the Islamists on a collision course with an army that’s signaled it’s losing patience with protests in support of ousted President Mohamed Mursi. The appeal by Mohammed Badie, the Brotherhood’s supreme guide, came a day after military chief Abdelfatah al-Seesi urged Egyptians to take to the streets tomorrow to give the military and police a broad mandate to combat “violence” and “terrorism.” The military issued a further statement on its Facebook page today, giving a 48-hour ultimatum and warning that its tactics in dealing with violence and terrorism would change after tomorrow.
- Soybeans Drop to 17-Month Low on Slack Demand; Corn, Wheat Fall. Soybeans fell to the lowest in 17 months on signs of declining demand for the oilseed and its products and amid favorable weather in the U.S. Midwest. Corn and wheat also dropped. Soybean exports in the week through July 18 fell 32 percent to 82,231 metric tons, the U.S. Department of Agriculture data said in a report today. Soybean-meal and -oil exports fell to marketing-year lows.
- Gold Rises as Jobless Claims Bolster Outlook for Stimulus. Gold gained for the first time in three days after a report showed more Americans filed for unemployment benefits, boosting prospects that the Federal Reserve will maintain stimulus measures to spur economic growth. Gold futures for December delivery rose 0.2 percent to $1,323.10 an ounce at 10:35 a.m. on the Comex in New York. Trading was 30 percent higher than the average for the past 100 days for this time of day, according to data compiled by Bloomberg.
- Palm Drops to Lowest in More Than Three Years on Supplies. Palm tumbled to the lowest level in more than three years as global supplies of the world’s most-consumed cooking oil climb the most since 1999 and demand expands at the slowest pace in more than a decade. Futures slumped as much as 3.2 percent to 2,151 ringgit ($672) a metric ton in intraday trading on the Bursa Malaysia Derivatives in Kuala Lumpur, a level not seen since October 2009, before closing at 2,170 ringgit.
- PulteGroup, Horton Tumble on Lower-Than-Expected Home Orders. PulteGroup Inc. (PHM:US) and D.R. Horton Inc. (DHI:US), the largest U.S. homebuilders, tumbled after reporting lower-than-expected orders, adding to concerns that higher mortgage rates will hamper the nation’s housing recovery. PulteGroup, based in Bloomfield Hills, Michigan, said second-quarter orders fell 12 percent on a lower community count. D.R. Horton said orders increased 12 percent, which was below analysts’ forecast for 28 percent growth, according to Adam Rudiger, an analyst at Wells Fargo & Co. in Boston.
- SAC Capital Indicted in Six-Year U.S. Insider Probe. SAC Capital Advisors LP, the $14 billion hedge fund founded by Steven A. Cohen, was indicted for perpetrating what prosecutors called an unprecedented insider trading scheme that was revealed as part of the government’s six-year crackdown on Wall Street crime. The insider trading case against the Stamford, Connecticut-based firm is the most significant to be brought by the U.S. since former Goldman Sachs Group Inc. (GS) director Rajat Gupta was charged in October 2011. Gupta, convicted in New York federal court last year, was sentenced to two years in prison.
- Obama Ambassadors Gave At Least $13.6 Million in Campaign Money. When it comes to job benefits, Matthew Barzun is about to enjoy some of the best. As the new U.S. ambassador to the U.K., he’ll live in Winfield House, a London mansion set on 12 acres with gardens second only to those in Buckingham Palace in size. He’ll be able to borrow art from museums for free and host the president as an overnight guest when he’s in town. Barzun, a 42-year-old technology entrepreneur nominated this month to the Court of St. James’s, earned those perks: He raised at least $1.2 million as finance chairman for President Barack Obama’s re-election campaign.
- Unworkable ObamaCare. Opaque rules, delays and inconsistent guidance from Washington: The chaos is mounting.
- About That US Recession... (graph)
Mortgage Daily:
- Early-Stage Mortgage Delinquency Soars. During June, residential loans that were at least 30 days past due numbered 4,785,000, climbing from 4,569,000 a month earlier.
Reuters:
- Exclusive: DOJ starts probe into Wall St. metals warehousing - sources. The U.S. Department of Justice has started a preliminary probe into the metals warehousing industry following complaints that storage firms owned by Wall Street banks and major traders have inflated prices, sources familiar with the matter said.
- Harley-Davidson(HOG) profit rises as U.S. demand rebounds. Harley-Davidson Inc reported a 9.9 percent rise in its quarterly profit rose on Thursday, helped by a modest rebound in demand for its motorcycles in the United States, its No. 1 market.
- Siemens, BASF warnings weigh on European shares. Profit warnings by German heavyweights BASF and Siemens hit the country's stock index and cast a shadow over the broader European market on Thursday.
- Unilever boss dampens hope of economic recovery in Europe. The chief executive of consumer goods giant Unilever has dampened hopes of an economic recovery in Europe by warning that progress to rebuild the continent’s finances is “very slow”.
- IMF fears Fed tapering could 'reignite' euro debt crisis. The tapering of stimulus by the US Federal Reserve risks reigniting the eurozone debt crisis and pushing the weakest countries into a "debt-deflation spiral", the International Monetary Fund has warned.
- Australia at risk from high $US, low yen: OECD. A lower yen and a higher US dollar will drag down growth in Asia posing a threat to the Australian economy, according to a leading global economist.
- China Hasn't Seen 'Massive' Capital Outflow. There is no trend of "massive" foreign capital outflow, citing Cao Hongying, an official with the foreign investment department of the Ministry of Commerce.
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