Freddie Mac, which offers funding for a huge proportion of United States mortgages, has posted a quarterly loss amid continued problems in the housing market. As mortgage defaults climb and house prices sink, it made a loss of 821 million US dollars in the three months to the end of June, down from a profit of 729 million.
Latin American stock markets plunged Monday, led by a slide in Brazilian and Mexican equities as prices for resources sparked a broad sell-off and growing fears about the performance of the US economy.
Europe's largest bank HSBC has warned that conditions in financial markets are at their toughest for several decades after suffering a 28% fall in half-year profits. HSBC saw profits drop by 3.9 billion to 10.2 billion US dollars in the first six months of the year, as its North American arm made a 2.8 billion loss.
Consumer spending in the United States slowed in June, while inflation in June was the highest since 1981. Inflation-adjusted spending fell 0.2% in June, according to the US Commerce Department.
China policies in support of small and labor intensive enterprises are taking effect and there is no need for more adjustment measures, said on Monday a high ranking Chinese member of the Communist party.
Uruguay's July consumer prices index CPI marked 0.45%, the lowest since last April, accumulating 5.91% in the first seven months of 2008 which, according to analysts makes it difficult to keep to the original Central Bank estimates of 3 to 7% for the twelve months.
Brazil's Minister of Economy warned Tuesday that the sustained appreciation of the local currency Real against the US dollar has reached a limit and if the Real continues to advance, it could ruin our external accounts.
Commodities fell sharply Monday as another big drop in crude prices prompted traders to shed copper, corn and other hard assets as alternative investments.
Investors are bailing out of Argentine assets in response to tough talking President Cristina Fernández de Kirchner who since a press conference on Saturday has been defending her government's actions over a now defeated agricultural tax and inflation statistics.
The Federal Reserve decided on Tuesday to keep the key interest rate unchanged at 2% in support of a slowing economy threatened by inflationary pressures and the ongoing housing contraction and high fuel prices.