Deutsche Bank Payday Burgeons With Trading Bets Against Subprime Mortgages

(Bloomberg) -- Deutsche Bank AG analyst Eugene Xu
recognized a financial train wreck in the making two years ago
when he predicted ``quite probable'' losses from the least
creditworthy home loans in America's runaway property market.

Now Germany's largest bank is poised to reap a bonanza of at
least $270 million and as much as $540 million from a strategy
that enabled its traders to sell subprime mortgage loans with
derivatives contracts that appreciated as the U.S. housing market
suffered its worst slump in 16 years.


Read more at Bloomberg Bonds News

S.Africa stocks hit 4-week low amid global sell-off

(Reuters) - South African stocks slid to an almost four-week closing low on Thursday as softer metal prices hit mining stocks and global jitters about the U.S. housing market and high oil prices hurt broader sentiment.

The Johannesburg Top-40 index of blue-chip stocks fell 1.85 percent to 25,844.39 points -- its lowest closing level since June 29. The Johannesburg All-share index slid 1.78 percent to 28,585.84 points.


Read more at Reuters Africa

Canadian Stocks Drop, Led by Barrick. Teck, on Signs of Slower U.S. Growth

(Bloomberg) -- Canadian stocks dropped a fourth
straight day, led by metals producers Teck Cominco Ltd. and Barrick
Gold Corp., as falling U.S. home sales heightened concern that
demand for raw materials may cool.

Home resales fell for a fourth straight month in June as the
U.S. housing market remained in the worst slump in 16 years,
according to the National Association of Realtors. Yesterday,
Countrywide Financial Corp., the biggest U.S. mortgage lender, cut
its profit forecast as a growing number of homeowners fell behind
on home-loan payments.


Read more at Bloomberg Stocks News

Rand Trades Near Two-Week High Versus Dollar on Concerns About U.S. Growth

(Bloomberg) -- South Africa's rand traded near a
two-week high against the dollar on speculation a slowdown in the
U.S. housing market will spill over to the rest of the economy.

The rand yesterday touched its highest since July 3,
supported by investors seeking out South Africa's 9.5 percent
interest rate in trades funded by borrowing Japanese yen or Swiss
francs more cheaply. The dollar traded near a record low against
the euro today before reports that are expected to show inflation
and home building slowed.


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UPDATE 1-U.S. construction spending up 0.9 percent in May

(Reuters) - Economists polled ahead of the report were expecting a much
weaker 0.1 percent rise in the overall construction spending
figure.




Spending on private homebuilding, however, fell 0.8 percent
to a seasonally adjusted $549 billion annual rate, the 15th
consecutive monthly decrease as U.S. housing market troubles
continue.


Read more at Reuters.com Economic News

Dollar Trades Near Three-Week Low as Weak Housing Data May Weigh on Growth

(Bloomberg) -- The dollar traded near the lowest in
almost three weeks against the euro before a report today that
may show existing home sales last month were the worst in almost
four years.

The currency may extend last week's biggest drop in 10 on
speculation a slump in the U.S. housing market will restrict
economic growth, increasing the likelihood the Federal Reserve
will need to cut interest rates. The yield premium on U.S. two-
year Treasuries over similar-maturity German debt narrowed to the
least in 2 1/2 years.


Read more at Bloomberg Currencies News