U.S.

Fannie, Freddie Subordinated Debt Rating May Be Cut by S&P; Shares Decline Standard & Poor's may downgrade the subordinated bonds of Fannie Mae and Freddie Mac, surprising investors who had anticipated the securities would be supported by any Treasury rescue plan.

Durable-Goods Orders in U.S. Unexpectedly Gain; Home Sales Beat Estimates Orders for U.S. durable goods unexpectedly rose in June, and sales of new homes were higher than forecast, easing concern that the economic slowdown will worsen.

Foreclosures Doubled in Second Quarter, Led by California, Nevada, Arizona U.S. foreclosure filings more than doubled in the second quarter from a year earlier as falling home prices left borrowers owing more on mortgages than their properties were worth.

Chrysler Says It Will Stop Offering Automobile Leases Through Finance Unit Chrysler LLC, hurt by plunging prices for used sport-utility vehicles, said its finance unit will stop offering leases to customers on Aug. 1.

U.S. Stocks Advance on Durable-Goods Gain, Home Sales, Confidence Report U.S. stocks rose, paring a weekly retreat, on growing speculation the worst of the economic slowdown is over after better-than-forecast reports on durable goods orders, consumer confidence and new-home sales.

GM, Ford Short Interest Climbs on Speculation Automakers Are Low on Cash Bets against shares of General Motors Corp. and Ford Motor Co. climbed to the highest in at least 17 years on speculation lower vehicle sales will reduce cash flow at the biggest U.S. automakers.

Latin America

Colombia's Central Bank Increases Key Rate to 10% as Inflation Accelerates Colombia's central bank raised the benchmark interest rate for the second time this year in a bid to combat accelerating inflation.

Brazil Stocks Extend Bear Market, led By Usiminas; Mexico Bolsa Advances Brazilian stocks fell for a fourth day, extending the Bovespa index's bear-market slide, on concern higher interest rates and rising global inflation will slow economic growth.

Petrobras CEO Gabrielli Says Oil Isn't Expensive as Production Costs Rise Crude oil at $126 a barrel is ``not expensive,'' considering production costs and rising demand, said Jose Sergio Gabrielli, chief executive officer of Brazil's government-controlled oil company, Petroleo Brasileiro SA.

Mexican Peso Plunges Most in Six Weeks as Government Halts Dollar Sales Mexico's peso fell the most in more than six weeks after the central bank said it would suspend daily sales of the dollar beginning Aug. 1.

Emerging-Market Bond Spreads Narrow as U.S. Durable Goods Rose Last Month Emerging-market bond yields narrowed relative to Treasuries after a report showed U.S. durable goods orders unexpectedly rose.

Argentina Posts Smallest Trade Surplus Since 2001 on Farmers' Protests Argentina's trade surplus narrowed in June to the smallest since March 2001, when the economy was suffering a three-year recession and the country headed into its worst-ever financial crisis.

Exclusive

Paulson's Need for Fannie-Freddie Deal Outweighs Bush's Free-Market Views In October 2003, Treasury Secretary John Snow told Congress ``we need to be on guard'' against the ``perception'' that the U.S. government stood behind the stocks and bonds of Fannie Mae and Freddie Mac.

Pune Billionaire Challenges GE as Wind Power Sales Turn on Cracked Blades The lights snap off in the five-story, gray-concrete building in Pune, India, where Suzlon Energy Ltd. -- the fastest growing of the world's top five wind turbine makers -- has its headquarters. After 30 seconds of darkness, the fluorescent bulbs flicker on as backup generators kick in.

East Hampton Reels From Deficit as Billionaire Sanctuary Floats Debt Plan East Hampton, New York, where billionaire Ron Baron paid $103 million for an oceanfront estate last year, may have to borrow to close a deficit, as even the richest towns get pinched by rising costs and lower revenue.

TJX May Sell Bob's Stores Clothing Division Following Four Years of Losses TJX Cos., the owner of the T.J. Maxx and Marshalls discount chains, is seeking a buyer for its money- losing Bob's Stores unit, according to people with knowledge of the sale process.

French Bemoan End of `Life Beyond Work' as Sarkozy Dismantles 35-Hour Week Michel Guyot often takes a weekday off to go to the Sugiton limestone cliffs on the Mediterranean Sea in southern France to smell the thyme and listen to the cicadas. Those cherished moments may soon be history, he says.

Flying Dutchmen Take Off From Germany as Amsterdam Levies Environment Tax Amsterdam's Schiphol Airport expects fewer passengers than it had a year ago today, traditionally the busiest day of the year. It has nothing to do with rising fuel prices or the economy: Travelers and airlines blame a new tax.