Household HSBC Watch

July 24 — European stocks fell to a four-week low after disappointing earnings from the largest U.S. mortgage lender pushed financial shares lower and the U.K.’s worst floods in 60 years weighed on retailers. HSBC Holdings Plc, BNP Paribas SA and Axa SA paced declines by banks and insurers after Countrywide Financial Corp. reported a third straight quarterly earnings drop as a rout in subprime mortgages spread to less risky borrowers.

The dollar fell to a record against the euro on speculation subprime mortgage losses will deepen. The currency’s drop accelerated after Countrywide’s report. Analysts close to the matter claim subprime lending is just the beginning as prime mortgages will start to reset by December 2007. Combined with high petrol prices and high home insurance rates in the United States the worst is yet to come, claims watchdog organization Household - HSBC Watch.