Paulson to make his currency case to China's Hu

(Reuters) - Paulson and other top Bush aides are trying to head off several trade-focused bills that are aimed at ratcheting up pressure on Beijing to allow the yuan to appreciate more quickly to ease trade imbalances.




"At a time when U.S. exports are growing globally, such legislation also exposes the United States to the risk of 'mirror legislation' abroad and could trigger a global cycle of protectionist legislation," Paulson, U.S. Trade Representative Susan Schwab and Commerce Secretary Carlos Gutierrez said in a joint letter to senior senators.


Read more at Reuters.com Business News

Yen holds gains, supported by risk aversion

(Reuters) - Traders said the yen took its cue from U.S. share prices, which slid on Tuesday after mortgage lender American Home Mortgage Investment Corp. said it could not fund home loans and might have to liquidate assets.




Risk aversion stemming from such falls in equities and worries about the U.S. housing and credit markets could prompt the dollar to eventually break below 118.00 yen, said a trader for a major Japanese trading house.


Read more at Reuters.com Hot Stocks News

Japan Facing Pressure From Asia-Pacific Ministers Over Yen Carry Trades

(Bloomberg) -- Japan's Finance Minister Koji Omi is
likely to face pressure over the value of the yen from economies as
diverse as South Korea and New Zealand at a meeting of 21 Asia-
Pacific policy makers in Australia starting today.

Money borrowed in Japan, where the benchmark interest rate is
0.5 percent, is being invested in economies offering higher returns.
New Zealand, where the key rate is 8.25 percent, has seen its
currency driven to a 22-year high by the so-called yen carry trade.
Thailand's baht has surged to its highest since the Asian financial
crisis a decade ago, as has the South Korean won.


Read more at Bloomberg Currencies News

Asian Stocks Decline, Led by Macquarie Bank, Sony on U.S. Subprime Rout

(Bloomberg) -- Asian stocks fell after a U.S. lender
said it lacks cash to fund new loans, reigniting concerns that a
decline in the country's subprime loan industry will curb growth
in the world's largest economy.

Macquarie Bank Ltd., Australia's largest securities firm,
plunged after it said investors in some of its high-yield funds
may lose as much as 25 percent of their money amid the fallout in
U.S. subprime mortgages. Sony Corp. led declines among exporters
on concern the U.S. housing rout will dent consumer spending.


Read more at Bloomberg Stocks News

Australian Stocks Fall, Led by Macquarie on U.S. Subprime Mortgage Concern

(Bloomberg) -- Australia's benchmark stock index, the
S&P/ASX 200 Index, fell 0.44 percent at 10:05 a.m.

The index of 201 companies traded on the Australian Stock
Exchange fell 27.10 to 6,117.10. Among the stocks in the index,
25 rose, 96 fell and 80 were unchanged.


Read more at Bloomberg Stocks News

Murdoch looks to legacy with Dow Jones bid

(Reuters) - Now the 76-year-old media mogul aims to redeem his legacy in the business he loves most with the anticipated $5 billion purchase of Dow Jones & Co. Inc., owner of The Wall Street Journal, Barron's financial weekly and Dow Jones Newswires.




Dow Jones looked set to agree on Tuesday to the buyout later on Tuesday, regarded as one of the most audacious yet for the consummate dealmaker.


Read more at Reuters.com Mergers News

UPDATE 1-Equity Residential FFO down, but beats analyst view

(Reuters) - The investment trust founded by real estate mogul Sam Zell
said second-quarter FFO fell to 60 cents a share from 61 cents
per share a year earlier, but still beat analysts' average call
for FFO of 56 cents per share, according to Reuters Estimates.




FFO removes the profit-reducing effect of depreciation -- a
noncash accounting item -- on earnings, and it is a performance
measure commonly used by real estate investment trusts.


Read more at Reuters.com Market News

UPDATE 1-Millipore quarterly profit falls

(Reuters) - Excluding items, the company's earnings topped Wall Street
estimate.




The Billerica, Massachusetts-based company reported
second-quarter net income of $28.4 million, or 52 cents a
share, compared with $29.1 million, or 54 cents a share, a year
ago. Net sales rose 40 percent to $383.2 million.


Read more at Reuters.com Market News

Paulson Calls Legislation Aimed at Boosting the Yuan the `Wrong Approach'

(Bloomberg) -- U.S. Treasury Secretary Henry Paulson
said legislation to force China to raise the value of its
currency is the ``wrong approach'' and risks provoking a
protectionist reaction from other countries.

Paulson and other administration officials said measures
proposed by the Senate Finance and Banking Committees could
jeopardize U.S. exports by starting a trade war, won't help
persuade China to open its economy and risk undermining ``market
confidence'' in the U.S.


Read more at Bloomberg Currencies News

CORRECTED - UPDATE 1-First Solar posts 2nd-quarter profit vs loss

(Reuters) - Net income was $44.4 million, or 58 cents a share, compared
with a loss of $2.5 million, or 3 cents a share, a year
earlier.




The second quarter included a tax benefit of $39.2 million,
or 51 cents a share.


Read more at Reuters.com Market News

U.S. July auto sales seen down, housing woes key

(Reuters) - Dealer groups and analysts say early indications show July
sales failed to break free of a second-quarter slump,
ratcheting up the pressure for production cuts and stepped-up
incentive spending by the embattled U.S. auto industry.




"Housing worries and relatively high gas prices are
weighing on consumers," Bear Stearns analyst Peter Nesvold said
in a note for clients.


Read more at Reuters.com Mergers News

UPDATE 1-US panel backs Biogen, Elan MS drug for Crohn's

(Reuters) - The U.S. Food and Drug Administration usually follows
advisory panel recommendations. A final decision is expected by
mid-October.




Tysabri sales were suspended in 2005 because of a rare but
potentially fatal brain infection known as progressive
multifocal leukoencephalopathy, or PML. Two of three patients
who developed PML died.


Read more at Reuters.com Government Filings News

U.S. to be in Iraq years, says Bush military nominee

(Reuters) - Navy Adm. Michael Mullen, picked as chairman of the Joint Chiefs of Staff, warned U.S. lawmakers unhappy with the conflict against seeking a rapid pullout from Iraq, saying it could turn the country into a "caldron."




While prudence dictated planning for an eventual pullout, Mullen said that under one scenario it could take three to four years just to halve the 160,000 U.S. troops now in Iraq. Many Democrats want to pull out combat troops by April.


Read more at Reuters.com Bonds News

Penford files $100 mln mixed shelf offering

(Reuters) - Under a shelf registration, a company may sell securities
in one or more separate offerings with the size, price and
terms to be determined at the time of sale.




Read more at Reuters.com Bonds News

UPDATE 1-RealNetworks profit falls

(Reuters) - Second-quarter net income was $1.3 million, or 1 cent per
diluted share, compared with $38.9 million, or 22 cents per
diluted share, in the year-ago period.




In the year-ago quarter, the company benefited from the
proceeds of a $57.9 million settlement of litigation against
Microsoft and commercial agreements with the world's largest
software maker.


Read more at Reuters.com Market News

Corn Futures Rise After Warm, Dry Weather Damages Crops in U.S. Midwest

(Bloomberg) -- Corn rose for the sixth straight
session in Chicago after U.S. crops deteriorated for a fourth
week because of unusually dry weather.

An estimated 58 percent of the corn crop was in good or
excellent condition as of July 29, down from 73 percent a month
earlier, the U.S. Department of Agriculture said yesterday. About
25 percent of the crop was starting to fill kernels with starches
and sugars, better than the five-year average of 20 percent.


Read more at Bloomberg Commodities News

AmerisourceBergen and Kindred form PharMerica

(Reuters) - PharMerica will trade on the New York Stock Exchange under the symbol "PMC." AmerisourceBergen and Kindred stockholders each will hold about 50 percent of the PharMerica shares, the companies said.



) Keywords: PHARMERICA/


Read more at Reuters.com Mergers News

Whole Foods posts lower 3rd-quarter profit

(Reuters) - Analysts, on average, expected Whole Foods to earn 33 cents
per share, according to Reuters Estimates.




Whole Foods is trying to buy smaller rival Wild Oats
Markets Inc. . But the Federal Trade Commission is
challenging the deal in federal court on grounds that it would
hobble competition in the market for natural and organic
groceries.



Read more at Reuters.com Government Filings News

US STOCKS-Indexes end down for day;S&P worst month since '04

(Reuters) - All three indexes also ended the month of July lower, with
the S&P 500 booking its worst monthly percentage decline since
July 2004. For the month, the Dow was down 1.5 percent, the
S&P was down 3.2 percent and the Nasdaq was down 2.2 percent.




The Dow Jones industrial average was down 146.32
points, or 1.10 percent, to end unofficially at 13,211.99. The
Standard & Poor's 500 Index was down 18.64 points, or
1.26 percent, to finish unofficially at 1,455.27. The Nasdaq
Composite Index was down 37.01 points, or 1.43
percent, to close unofficially at 2,546.27.


Read more at Reuters.com Bonds News

TREASURIES-Bond prices rise as stock market turns lower

(Reuters) - Bonds have been closely mirroring stocks recently, gaining
when stocks fall as investors turn to the relative safety of
bonds.




"Bonds are not leading, they are being led," said David
Ader, head of government bond strategy at RBS Greenwich Capital
in Greenwich, Connecticut. "Stocks were up and now they are
close to the lows of the day, while bonds were lower and now
they are higher on the day. It's not much more complicated than
that."


Read more at Reuters.com Bonds News

Sugar Rises Most in Six Weeks Before Russia Decides on Raising Tariffs

(Bloomberg) -- Sugar futures rose the most in six
weeks in New York as processors bought contracts in anticipation
that Russia will raise import tariffs.

Russia may decide early in August to boost the duty from
$140 a metric ton, said Bernard Isler, an analyst with Trendex
Commodity Corp. in Plantation, Florida. President Vladimir Putin
wants a decision by tomorrow, said James Kirkup, a sugar broker
at Fortis in London, citing a Reuters report.


Read more at Bloomberg Commodities News

Barclays deal would boost ABN board pay -SEC data

(Reuters) - The Netherlands' biggest bank is the target of a 65 billion euro offer from Barclays and a rival 71 billion euro bid from Royal Bank of Scotland , Belgium's Fortis and Spain's Santander .



ABN's management and supervisory board withdrew its recommendation to merge with Barclays on Monday, but ABN Chief Executive Rijkman Groenink said ABN still supported Barclays' offer.


Read more at Reuters.com Mergers News

UPDATE 1-Rogers CEO shoots down talk of Shaw takeover

(Reuters) - "We do not have any active file on Shaw," Ted Rogers said
in response to an analyst's question during the company's
earnings conference call. "We have not had any discussions with
Shaw on putting the companies together."




His remarks came after a Canaccord Adams analyst published
a research note last week in which he speculated the two big
Canadian cable-TV and telecoms companies could be in talks for
a deal that would value Shaw at as much as C$14.4 billion
.


Read more at Reuters.com Mergers News

Shorter-Term Treasuries Fall as Demand for Safety of Government Debt Wanes

(Bloomberg) -- Treasuries maturing in five years or
less dropped as investors returned to riskier bonds and stocks
after abandoning them the past two weeks.

Two-year notes weakened as traders pared bets the Federal
Reserve will cut interest rates this year to blunt the impact of
higher borrowing costs for homeowners and companies. Yields rose
from near a four-month low even as one of the first reports for
July, the National Association of Purchasing Management-
Chicago's business barometer, fell more than forecast.


Read more at Bloomberg Bonds News

TREASURIES-Bond dip on firmer stocks, credit markets

(Reuters) - NEW YORK, July 31 - U.S. Treasuries eased on
Tuesday as stocks rose for a second day and credit markets
rallied on waning fears over tighter access to funding.




Government bonds were little moved by mixed economic data
that painted a picture of benign inflationary pressures and
slower economic growth, but surprisingly upbeat consumer
sentiment. For details, see [ID:nN30403317], [ID:nN30443227]


Read more at Reuters.com Bonds News

UPDATE 1-American Home can't fund loans, may liquidate assets

(Reuters) - The Melville, New York-based real estate investment trust
is one of the largest U.S. lenders to struggle with a U.S.
housing slump that has caused home prices to stall, borrowing
costs to rise and defaults to soar.




American Home shares closed Friday at $10.47. They have not
traded since trading was halted on Monday morning.


Read more at Reuters.com Bonds News

Qatar Was OPEC's Wealthiest Per-Capita Exporter Last Year; Nigeria Poorest

(Bloomberg) -- Qatar earned $28,576 per citizen last
year from oil and gas exports, while Nigeria, Africa's most
populous nation, made $391, annual OPEC data shows.

The range reflects large differences in populations among
members of the Organization of Petroleum Exporting Countries.
Nigeria's petroleum-export revenue of $52.5 billion was twice that
of the tiny Persian Gulf emirate.


Read more at Bloomberg Energy News

Lehman Brothers Offers New Muni Derivatives for Institutional Investors

(Bloomberg) -- Lehman Brothers Holdings Inc.
tomorrow will introduce derivatives that track the value of
benchmark five- and 10-year municipal bonds, in an effort to
provide a way for investors to protect against price swings.

The Lehman Municipal Index Swap, comprised of general
obligation bonds rated AA- or better, will also allow investors
to bet on the performance of municipal bonds relative to taxable
yields without buying tax-exempt debt. Currently, municipal
investors use the Securities Industry and Financial Markets
Association Municipal Swap Index or Thomson Financial's
Municipal Market Data index.


Read more at Bloomberg Bonds News

Bancroft family accepts News deal - DJ executive

(Reuters) - Prestbo told Reuters the information came from an internal company memo.






Read more at Reuters.com Mergers News

Wheat Falls as Harvest Pace Increases in U.S. Great Plains, Adds to Supply

(Bloomberg) -- Wheat fell for a second-straight day
in Chicago as the U.S. winter-crop harvest in the southern Great
Plains neared completion and farmers to the north sped up
spring-crop cutting, increasing supplies.

About 88 percent of the winter crop was harvested as of
July 29, up from 81 percent a week earlier, the U.S. Department
of Agriculture said in a report yesterday. Ten percent of the
spring crop was collected compared with 2 percent the previous
week, the USDA said. Growers probably will sell wheat to make
room for corn, which will be collected starting in late August.


Read more at Bloomberg Commodities News

European Stocks Rise, Led by Aviva; Lloyds, Ryanair, GlaxoSmithKline Rally

(Bloomberg) -- European stocks rebounded from a
five-day plunge on waning concern that the U.S. subprime-credit
crisis will damp economic growth.

Aviva Plc, HSBC Holdings Plc and UBS AG paced gains by
financial stocks. Lloyds TSB Group Plc rallied on earnings that
topped analysts' estimates. Ryanair Holdings Plc and MAN AG led
airline and auto stocks higher after raising profit forecasts.
GlaxoSmithKline Plc jumped the most in two years after a panel of
doctors said its Avandia drug should remain on the U.S. market.


Read more at Bloomberg Stocks News

Health Management net tumbles, forecast is weak

(Reuters) - CHICAGO, July 31 - Hospital chain Health Management Associates posted an 85 percent plunge in quarterly profit Tuesday, citing difficulties in collecting on hospital bills, and forecast 2007 profit significantly below Wall Street estimates.



HMA, whose shares fell 9 percent in pre-market trade, said second-quarter earnings fell to $11.9 million, or 5 cents a share, from $77.3 million, or 32 cents a share, a year earlier.


Read more at Reuters.com Market News

Rogers reports loss, ups dividend, forecasts

(Reuters) - But the company said 2007 revenue and operating profit would be at the top end of its previous ranges. It raised its annual dividend to 50 Canadian cents a share, from 16 Canadian cents a share, and reported strong subscriber growth.



Rogers said it lost C$56 million , or 9 Canadian cents a share, in the three months ended June 30. That comes on a profit of C$279 million, or 44 Canadian cents, in the same period a year earlier.


Read more at Reuters.com Market News

Scotiabank sees Mexico unit adding C$100 mln

(Reuters) - Scotiabank said in a brief statement the Mexican unit's earnings were driven by continued asset and deposit growth, improving margins and continuing stable credit quality.






Read more at Reuters.com Market News

GM trounces 2nd-qtr estimates, shares surge

(Reuters) - By Jui Chakravorty



DETROIT, July 31 - General Motors Corp on Tuesday said it posted a quarterly profit that trounced Wall Street estimates as it benefited from cost-cutting and growing sales overseas, sending shares up as much as 6 percent.


Read more at Reuters.com Market News

Enron plaintiffs ask Bush to back 3rd-party suits

(Reuters) - In a last-ditch attempt to get the administration to back their effort to have the U.S. Supreme Court allow shareholders to sue third parties, the group of former Enron shareholders have written to President George W. Bush.




"As victims of the Enron fraud, the worst in American history, we respectfully ask for your support at a critical moment in our pursuit of justice," says the letter signed by more than a dozen former shareholders.


Read more at Reuters.com Government Filings News

U.S. construction spending fell 0.3 pct in June

(Reuters) - Private nonresidential construction rose 0.3 percent to a
$347 billion annual rate, a record high.




But private residential construction slipped 0.7 percent to
a $544 billion annual rate, the lowest level since March 2004.


Read more at Reuters.com Economic News

US STOCKS-Indexes add to gains on consumer confidence

(Reuters) - The Dow Jones industrial average was up 126.89
points, or 0.95 percent, at 13,485.20. The Standard & Poor's
500 Index was up 12.93 points, or 0.88 percent, at
1,486.84. The Nasdaq Composite Index was up 21.79
points, or 0.84 percent, at 2,605.07.




Read more at Reuters.com Bonds News

Jones Apparel gets new offer from Fast Retailing

(Reuters) - Jones said it was in talks with Fast regarding its proposal. Jones would be required to pay a break-up fee of $22.7 million if it terminated its existing agreement to sell Barneys to Dubai-owned private equity firm Istithmar for $825 million.




Jones, which owns clothing, shoes and accessories brands such as Nine West, Gloria Vanderbilt and Jones New York, put itself up for sale last year but failed to find a buyer. It agreed to sell Barneys in June after several months of negotiations.


Read more at Reuters.com Mergers News

UPDATE 2-AEP second-quarter earnings rise

(Reuters) - Second-quarter profit rose to $180 million, or 45 cents per
share, from $175 million, or 44 cents per share, a year
earlier.




Excluding special items, which included a $77 million hit
from the impact of Virginia's return to regulated markets, AEP
said earnings increased to 64 cents per share from 44 cents per
share.


Read more at Reuters.com Market News

US STOCKS-Futures rise before inflation, other data

(Reuters) - Shares of fast-food chain Wendy's International Inc.
will likely be in the spotlight after billionaire
Nelson Peltz said his Triarc Cos. Inc. could offer up
to $41 a share for the company. For details, see
[ID:nN30445780].




The core personal consumption expenditure index, the
Federal Reserve's favorite inflation indicator, is forecast to
have risen 0.2 percent in June, according to economists polled
by Reuters.


Read more at Reuters.com Bonds News

"You're hired!" Murdoch tells Sugar

(Reuters) - And he gets to keep his job.




The 125 million pounds deal with Murdoch's pay-TV group ends Amstrad's roller-coaster ride as an independent company, which has seen it both soar to a billion-pound market leader and plunge towards the status of a penny stock.


Read more at Reuters.com Mergers News

GM flipped to second-quarter profit

(Reuters) - Excluding one-time items, the company said it earned $2.48
a share.





Read more at Reuters.com Market News

German Stocks Advance, Led by MAN on Earnings; DaimlerChrysler, BMW Rise

(Bloomberg) -- Germany's benchmark DAX Index rose,
heading for the biggest one-day gain in more than two weeks. MAN
AG shares paced the advance after Europe's third-largest
truckmaker reported its 16th consecutive profit increase.

Shares of DaimlerChrysler AG and Bayerische Motoren Werke
AG, the world's biggest luxury carmakers, also climbed.


Read more at Bloomberg Stocks News

CDM Resource Partners files for $169.1 mln IPO

(Reuters) - The company said it plans to list its units on the New York
Stock Exchange.





Read more at Reuters.com Bonds News

Corporate Bond Risk Declines by Record In Europe, Halting Three-Day Rout

(Bloomberg) -- The risk of owning European
corporate bonds dropped by a record today, halting a three-day
credit market rout.

Credit-default swaps on 10 million euros ($13.8 million) of
debt included in the iTraxx Crossover Series 7 Index of 50
European companies tumbled as much as 60,000 euros to 402,000
euros, according to JPMorgan Chase & Co.


Read more at Bloomberg Bonds News

GLOBAL MARKETS-Stocks rally sharply as credit market calms

(Reuters) - LONDON, July 31 - Stocks around the world bounced
back sharply on Tuesday as volatile credit markets stabilised
and after Wall St took heart from still-brisk corporate earnings
growth and the smooth wind-up of another troubled hedge fund.




Europe's benchmark index rebounded after five
straight days of losses and gained more than one percent in the
first few minutes of trading. Bourses in London ,
Frankfurt and Paris added 1 percent or more.


Read more at Reuters.com Bonds News

UPDATE 1-Clinphone warns on full-year profits, shares dive

(Reuters) - Shares in the Nottingham-based firm, which helps researchers
conduct clinical trials, dropped 36.4 percent to 79.5 pence,
valuing the company at 52.8 million pounds .




Clinphone said service levels dropped during June and July
because of outages from third-party telecoms suppliers as well
as internal data processing problems.


Read more at Reuters.com Market News

German Stocks Advance; Deutsche Bank, MAN AG, DaimlerChrysler Lead Gains

(Bloomberg) -- German stocks advanced, led by
Deutsche Bank AG, MAN AG and DaimlerChrysler AG.

The benchmark DAX Index added 92.86, or 1.3 percent, to
7549.17 as of 9:10 a.m. in Frankfurt. The HDAX Index of the
country's 110 biggest companies climbed 1.3 percent.


Read more at Bloomberg Stocks News

Sumitomo Chem to buy Cambridge Display for $285 mln

(Reuters) - The acquisition is expected to close during the third or the
fourth quarter.





Read more at Reuters.com Mergers News

Australian Proposed Carbon Price Cap Threatens Plan, Deutsche Bank Says

(Bloomberg) -- Australia's proposal to set a price
cap in its carbon trading system threatens the effectiveness of
the plan to reduce emissions blamed for global warming, said
Deutsche Bank AG's global head of carbon trading research.

Prices for carbon emissions allowances probably need to be
about A$55 ($47.31) a metric ton to ensure switching to cleaner
technologies, rather than a potential A$15 should a price cap be
set, Paris-based Lewis said today in an interview in Sydney.
Fifteen Australian dollars a ton is ``way too low'' to lead to
the development of technologies such as clean-coal power, he said.


Read more at Bloomberg Commodities News

EU will not cover Chinese loans to Africa

(Reuters) - The European Union warned China on Monday of the dangers of lending money to Africa and said it was not willing to write off any unrepaid debt to Beijing from Europe's former colonial backyard.

Europe remains by far Africa's bigger trading partner and aid donor, but recent years have seen a surge in soft loans from energy-hungry China to finance projects in Africa ranging from roads to telecoms networks.


Read more at Reuters Africa

Rubber Futures Gain in Tokyo After JSR Announces Rise in Synthetic Prices

(Bloomberg) -- Natural rubber futures in Tokyo rose
to the highest in five weeks amid speculation demand for the
commodity may grow after JSR Corp., Japan's largest maker of
synthetic rubber, announced a rise in its product prices.

JSR will raise prices of synthetic rubber products, the raw
material for vehicle tires, by between 5 percent and 10 percent
from Aug. 21, to cope with rising petroleum costs, according to
a company news release yesterday. It will be the company's
second increase this year.


Read more at Bloomberg Commodities News

Hitachi post smaller Q1 loss, keeps profit f'cast

(Reuters) - The company kept its outlook for an annual net profit of 40
billion yen, which compares with a 42.2 billion yen consensus
estimate by 14 analysts polled by Reuters.




Hitachi has drawn strength from its non-core units, including
Hitachi Construction Machinery Co. Ltd. , Hitachi Metals
Ltd. , Hitachi Transport System Ltd. and Hitachi
Cable , which have benefited on public works projects
overseas.


Read more at Reuters.com Market News

Advance in Euro, Pound Will Be `Next Big Move,' Says Morgan Stanley's Jen

(Bloomberg) -- The ``next big move'' in currency
markets is an advance in the euro, British pound and Australian
dollar as investors regain risk appetite and central banks raise
interest rates, says Morgan Stanley's Stephen Jen.

The three currencies have all slipped the past week as
investors cut risk and bought the relative safety of dollar-
denominated government bonds on concern a U.S. housing slump
will slow world growth. Recent turbulence in financial markets
will be contained amid a strong global economy, the
International Monetary Fund said today.


Read more at Bloomberg Currencies News

CORRECTED: Dollar steadies on rise in U.S. stocks

(Reuters) - TOKYO - The dollar steadied on Tuesday as a rise in U.S. stocks overnight eased fears about deteriorating credit markets, and traders awaited U.S. data due later in the session for clues on the market's direction.




Concerns that problems in the U.S. subprime mortgage sector could spread to wider credit markets have prompted investors to cut risk exposure and unwind carry trades, in which they had borrowed low-yielding currencies such as the yen to buy higher-yielding assets.


Read more at Reuters.com Hot Stocks News

Agfa, Alcatel-Lucent, Bulgari, Danone, Iliad, MAN: European Equity Preview

(Bloomberg) -- The following stocks may rise or fall
in European markets. Prices are from the last close.

The Dow Jones Stoxx 600 fell 0.2 percent to 372.03. The Dow
Jones Stoxx 50 Index declined 0.3 percent to 3710.74. The Euro
Stoxx 50 Index, a benchmark for the 13 nations using the euro,
dropped 0.1 percent to 4239.18.


Read more at Bloomberg Stocks News

Bear, Lehman, Merrill, Goldman Traded as Junk, Credit-Default Swaps Show

(Bloomberg) -- On Wall Street, Bear Stearns Cos.,
Lehman Brothers Holdings Inc., Merrill Lynch & Co. and Goldman
Sachs Group Inc., are as good as junk.

Bonds of U.S. investment banks lost about $1.5 billion of
their face value this month as the risk of owning the securities
increased the most since at least October 2004, according to
Merrill indexes. Prices of credit-default swaps based on the
debt imply that their credit ratings are below investment grade,
data compiled by Moody's Investors Service show.


Read more at Bloomberg Currencies News

Yuan Set for Monthly Gain as Paulson Says Exchange-Rate is Issue for China

(Bloomberg) -- The yuan was poised for a winning
month as Treasury Secretary Henry Paulson told state-owned
Xinhua News Agency that the exchange-rate issue is China's
decision.

Easing pressure on China to accelerate the yuan's
appreciation may give the Asian nation room to allow it to
strengthen without appearing to bow to global demands. The U.S.
Senate Finance Committee on July 26 approved legislation that
would slap higher duties on Chinese imports to compensate for
what lawmakers say is an undervalued currency.


Read more at Bloomberg Currencies News

Australian Government Bonds Fall as Building Approvals, Lending Increase

(Bloomberg) -- Australian government bonds fell for
a second day as reports showed home-building approvals and
lending to consumers and businesses increased more than
economists expected last month.

Two-year notes extended declines as traders raised bets the
Reserve Bank of Australia will increase its key interest rate
from 6.25 percent when policy makers meet next week. Bonds also
fell as investor appetite for risk rose after U.S. stocks
rebounded yesterday from the worst two-day slide since 2003.


Read more at Bloomberg Bonds News

Mitsui Runs Osaka Ethylene Plant at Almost Maximum Rate After Maintenance

(Bloomberg) -- Mitsui Chemicals Inc., Japan's
third-largest ethylene producer, is running its ethylene plant
in Osaka at almost maximum capacity after completing maintenance,
an official said.

The plant, capable of making 455,000 metric tons of
ethylene a year, resumed operations on July 26 as scheduled
after 33 days of maintenance, said the official, who declined to
be identified because of company policy.


Read more at Bloomberg Energy News

Dollar Heads for Monthly Drop Against Euro Before Consumer Spending Report

(Bloomberg) -- The dollar headed for a second
monthly decline against the euro before a U.S. government report
today that economists predict will show slowing consumer
spending growth.

The U.S. currency was weaker against 15 of the 16 most-
actively traded currencies on prospects that a U.S. economic
slowdown and a slump in corporate debt may prompt the Federal
Reserve to lower interest rates. The yield spread between
benchmark two-year U.S. and German bonds narrowed last week to
the least since November 2004.


Read more at Bloomberg Currencies News

Japan's Nikkei Drops, Paced by Nomura on Subprime Concern; Olympus Gains

(Bloomberg) -- Japan's Nikkei 225 Stock Average
slipped after Germany's IKB Deutsche Industriebank AG said losses
on subprime loan investments will ``significantly'' lower profits.

Brokerages such as Nomura Holdings Inc., with similar
investments, led declines on concern they will also be affected.


Read more at Bloomberg Stocks News

UPDATE 2-MGIC says investment in subprime venture at risk

(Reuters) - "Beginning in February, the market for subprime mortgages has experienced significant turmoil, with market dislocations accelerating to unprecedented levels ... in ... mid-July," MGIC said in its statement. Credit agencies have downgraded hundreds of bonds backing subprime loans to junk.




MGIC said it had invested $466 million of equity in C-BASS as of June 30, with an additional $50 million drawn in July under a $50 million unsecured credit facility that the company had provided C-BASS.


Read more at Reuters.com Mergers News

Australian, New Zealand Dollars Rebound as Stock Rally Spurs Carry Trades

(Bloomberg) -- The Australian and New Zealand
dollars rebounded from an eight-week low versus the yen as a
recovery in U.S. stocks gave investors confidence to increase
holdings of higher-yielding assets bought with loans from Japan.

The currencies are favorites of the so-called carry trade
as New Zealand and Australian interest rates are among the
highest of major economies. The New Zealand and Australian
dollars are respectively the biggest gainers today against the
yen among the 16 most-traded currencies as U.S. stocks recovered
from the worst two-day loss since 2003.


Read more at Bloomberg Currencies News

Australia's June Trade Deficit Probably Widened on Rising Imports, Storm

(Bloomberg) -- Australia's trade deficit probably
widened in June as a storm disrupted coal exports and imports
increased to a record.

The trade gap widened to A$1.2 billion ($1 billion) from
A$807 million in May, according to the median estimate of 24
economists surveyed by Bloomberg News. The Bureau of Statistics
will release the report tomorrow at 11:30 a.m. in Sydney.


Read more at Bloomberg Currencies News

Constellation Is First to File Partial Application for New U.S. Reactor

(Bloomberg) -- Constellation Energy Group Inc. has
filed the first partial application to build a new nuclear
reactor in the U.S. in almost 30 years.

Baltimore-based Constellation filed an environmental report
with the U.S. Nuclear Regulatory Commission that seeks permission
to build a third reactor at its Calvert Cliffs site in Lusby,
Maryland, according to documents on the commission's Web site.


Read more at Bloomberg Energy News

UPDATE 3-Principal Financial posts higher net, exceeds view

(Reuters) - Net earnings for the provider of life and health insurance
and retirement investments increased to $303.8 million, or
$1.12 a share, from $210.5 million, or 76 cents a share, in the
year-earlier quarter.




Operating profit, which analysts use to measure performance
because it excludes investments, was $282.9 million, or $1.05 a
share, compared to $225.2 million, or 82 cents a share, a year
ago.


Read more at Reuters.com Bonds News

Peltz says could offer $37 to $41/shr for Wendy's

(Reuters) - Wendy's has said it is evaluating strategic alternatives,
including a potential sale of the company.




Read more at Reuters.com Mergers News

RPT-CB Richard Ellis second-quarter earnings soar

(Reuters) - Excluding items, the company posted a profit of $157.3
million, or 66 cents per share, ahead of the average of
analysts forecast of 41 cents per share, according to Reuters
Estimates.




Read more at Reuters.com Market News

UPDATE 1-CommScope 2nd-qtr profit up, Andrew Corp profit lower

(Reuters) - The company said second-quarter net profit was $61.1
million, or 83 per share, compared to $46.7 million, or 65
cents a share, a year earlier. Revenue rose 26 percent to
$519.1.




Analysts, on average, were expecting earnings per share of
76 cents on revenue of $505.8 million, according to Reuters
Estimates.


Read more at Reuters.com Market News

Dollar Drops Versus Euro as Stock Rally Eases Concern Over Credit Risks

(Bloomberg) -- The dollar fell the most in almost
three weeks against the euro as a rebound in U.S. stocks eased
concern over credit risks.

The U.S. currency gained the most last week since January as
subprime losses encouraged investors to avoid riskier assets. The
Standard & Poor's 500 Index rose from its steepest weekly decline
since September 2002. Treasuries fell amid reduced need for the
safety of government debt.


Read more at Bloomberg Currencies News

CommScope quarterly profit up on bandwidth demand

(Reuters) - Analysts, on average, were looking for earnings per share
of 76 cents on revenue of $505.8 million, according to Reuters
Estimates. In late June, CommScope raised its second-quarter
revenue forecast to $500 million to $510 million, from $490
million to $510 million.




CommScope said last month it plans to buy rival
communications equipment maker Andrew Corp. for about
$2.6 billion in a bid to cut manufacturing costs and strengthen
its position with service provider clients.


Read more at Reuters.com Market News

Jarden profit rises, but shares fall on view

(Reuters) - NEW YORK, July 30 - Jarden Corp. said on Monday its second-quarter profit rose on higher sales, but gave a cautious outlook for the rest of the year citing weaker consumer spending, sending shares down nearly 7 percent.



While Jarden did not lower any of its specific outlook numbers, it was going to be "somewhat cautious" for the rest of the year and not"... overly aggressive on inventory positions and things like that," Chief Executive Martin Franklin said in a conference call.


Read more at Reuters.com Mergers News

Oil Slips From Near One-Year High on Speculation U.S. Fuel Stockpiles Rose

(Bloomberg) -- Crude oil fell from the highest in
almost a year, pulled lower by gasoline, on speculation U.S. fuel
stockpiles increased last week.

A government report on Aug. 1 will probably show that U.S.
inventories of gasoline and distillate fuel, a category that
includes diesel and heating oil, rose for a second week,
according to a Bloomberg News survey. The crude-oil market often
follows gasoline during the summer driving season, when motor-
fuel demand peaks.


Read more at Bloomberg Commodities News

CNA, Dow Jones, Ingersoll, RadioShack, Rural Cellular: U.S. Equity Movers

(Bloomberg) -- The following is a list of companies
whose shares are having unusual price changes in U.S. exchanges.
Stock symbols are in parentheses after company names. Share
prices are as of 2:40 p.m. in New York.

Some mortgage lenders fell after American Home Mortgage
Investment Corp. (AHM US) delayed its quarterly dividend and
raised doubts about whether it has enough cash to stay in
business. Shares of American Home were halted.


Read more at Bloomberg Stocks News

GM, Ford, Toyota Back New U.S. Mileage Goals to Stave Off Stricter Rules

(Bloomberg) -- Automakers are embracing legislation
in the U.S. House that would raise fuel-economy standards,
abandoning years of resistance because of concerns they might
otherwise be forced to accept even tougher measures.

An industry group representing General Motors Corp., Ford
Motor Co., Toyota Motor Corp. and six other auto companies is
backing a bill that would require a more than one-quarter
increase in average vehicle mileage by 2022. Competing measures
in the House and Senate mandate stricter requirements that would
compel earlier compliance and probably cost the industry more.


Read more at Bloomberg Energy News

Chile stocks rebound ahead of earnings, peso firms

(Reuters) - "It's mainly a light recovery from last week's slump when
U.S. bourses dropped sharply on mortgage credit worries and
dragged world markets along with them," said Rodrigo Sarria,
deputy manager with the Intervalores brokerage.




Local investors this week will continue to monitor
quarterly earnings reports.


Read more at Reuters.com Bonds News

Currency Option Volatility Edges Higher as Credit Risk Measures Increase

(Bloomberg) -- Option volatility on most major
exchange rates edged higher as investors demand safer assets and
indicators of corporate bond risk surged.

The perceived risk of owning European corporate bonds
soared to the highest in at least three years after Germany's
IKB Deutsche Industriebank AG reported losses on U.S. subprime
mortgages, credit-default swap prices show.


Read more at Bloomberg Currencies News

Mexico Bolsa Rises Most in Month on Analyst Upgrades: Latin America Stocks

(Bloomberg) -- Mexico's Bolsa index rose the most in
four weeks after analysts advised investors to buy companies with
better-than-expected profit growth.

Mexico's Bolsa index rallied 556.58, or 1.8 percent, to
30,791.75 as of 12:50 p.m. New York time, led by mobile phone
company America Movil SAB. It gained the most since July 3.


Read more at Bloomberg Stocks News

Hedge fund Citadel takes over Sowood's credit fund

(Reuters) - Sowood, which managed roughly $3 billion for prominent
clients such as Harvard University, lost 8 percent in July and
5 percent in June, leaving the Boston-based hedge fund with
losses of 10 percent, a person familiar with the fund's
operations told Reuters on Friday.




Read more at Reuters.com Bonds News

UPDATE 1-Luby's shareholder urges company to hire adviser

(Reuters) - In a letter to the company, investment adviser Ramius
Capital Group LLC said its RCG Starboard Advisors LLC unit owns
about 6.5 percent of Luby's shares making it the largest
shareholder.




Luby's, which has seen three straight quarters of falling
earnings, was not immediately available for comment.


Read more at Reuters.com Mergers News

CNA earnings hit by subprime, shares fall

(Reuters) - Net realized investment losses increased to $91 million from $64 million.




The losses included $20 million attributable to securities "with exposure to subprime mortgage collateral," CNA officials said in a conference call with analysts.


Read more at Reuters.com Market News

Oliver Press picks up 12 pct in Emageon, seeks strategic options

(Reuters) - Emageon could not be immediately reached for comment.




Shares of Birmingham, Alabama-based Emageon were trading up
2.5 percent at $9.05 in late morning trade on the Nasdaq.



Read more at Reuters.com Mergers News

Crude Oil Slips on Speculation U.S. Fuel Inventories Climbed Last Week

(Bloomberg) -- Crude oil fell from the highest in
almost a year, pulled lower by gasoline, on speculation U.S. fuel
stockpiles increased last week.

A government report on Aug. 1 will probably show that U.S.
inventories of gasoline and distillate fuel, a category that
includes diesel and heating oil, rose for a second week,
according to a Bloomberg News survey. The crude-oil market often
follows gasoline during the summer driving season, when motor-
fuel demand peaks.


Read more at Bloomberg Commodities News

CORRECTED-(OFFICIAL)-Fitch release on Doral Financial

(Reuters) - July 20 - Fitch Ratings has affirmed and removed all of
Doral Financial Corporation's ratings from Rating
Watch Negative and DRL's Rating Outlook is Positive. Fitch
currently rates DRL's long-term Issuer Default Rating
'CCC'. The Support Rating Floor for DRL and its principal
subsidiary remains unchanged at No Floor . Please see a
complete list of affected ratings at the end of this release.




DRL's Positive Rating Outlook is driven by the closing of
the equity sale and the payment of a significant impending debt
maturity. On July 19, DRL announced that it had received all
regulatory approvals and closed the equity sale of a 90% stake
to Bear Stearns Merchant Banking for $610 million. In addition,
DRL announced today that they have paid the impending $625
million debt maturity.


Read more at Reuters.com Bonds News

Chile's Peso Strengthens as Codelco Prepares to Reopen Second-Largest Mine

(Bloomberg) -- Chile's peso rose after state-owned
Codelco, the world's biggest producer of copper, said it will
resume production at its second-largest mine.

Unions at El Teniente in central Chile will resume work,
Codelco said yesterday. Mining had been halted since July 26
because of protests by striking contract workers. Copper has
gained 22.6 percent this year. Copper is Chile's biggest export.


Read more at Bloomberg Currencies News

US STOCKS-Indexes flat, but volatility running high

(Reuters) - NEW YORK, July 30 - U.S. stocks were little
changed on Monday after gyrating between negative and positive
territory in the first half hour as worsening sentiment about
the global credit environment countered optimism about economic
growth.




Tightening lending standards threaten to slow or halt the
heavy pace of corporate buy-outs that have fueled a rally in
equities.


Read more at Reuters.com Bonds News

U.S. Stocks Rise on Earnings; Archer Daniels, Humana Shares Advance

(Bloomberg) -- Stocks worldwide rebounded from a
$2.1 trillion sell-off after better-than-forecast earnings
eased concern that the U.S. housing slump will curb economic
growth.

Archer Daniels Midland Co., the world's largest grain
processor, and Humana Inc., the second-biggest provider of
U.S.-funded Medicare plans, climbed on profits that topped
analysts' estimates.


Read more at Bloomberg Stocks News

CORRECTED - CORRECTED-(OFFICIAL) PRESS DIGEST - Wall Street Journal - July 3

(Reuters) - * Adobe Systems Inc. faces a wave of criticism
from printing companies for a deal that gives FedEx Corp.'s
Kinko's copy stores a link on some Adobe software. The
flap could hurt Adobe's standing with smaller print-shop
customers.




* Dow Jones & Co. Inc.'s controlling shareholders,
the Bancroft family, were still deliberating late Sunday
whether to sell to News Corp. , which has offered $5
billion for the publisher.


Read more at Reuters.com Government Filings News

K2 says settles in principle merger-related litigation

(Reuters) - K2 and Jarden would amend the merger agreement to reduce the termination fee payable by K2 to $24 million from $27.5 million, the sports equipment maker said in a statement.






Read more at Reuters.com Mergers News

Carolina Group 2nd-quarter profit rises

(Reuters) - After deducting profit attributable to parent Loews,
earnings were $1.30 per share, up from $1.09 cents per share.





Read more at Reuters.com Market News

US STOCKS-Futures point to flat open, jumpy trading

(Reuters) - NEW YORK, July 30 - Wall Street was set to open
flat on Monday but trading was expected to be very volatile as
worsening sentiment about the global credit environment made
investors wary about the outlook for stocks.




Tightening lending standards threaten to slow or halt the
heavy pace of corporate buy-outs that have fueled a rally in
equities.


Read more at Reuters.com Bonds News

European Stocks Rebound; Imperial Chemicals, Linde Shares Advance

(Bloomberg) -- European stocks rebounded. Imperial
Chemical Industries Plc and Linde AG, the world's largest maker
of industrial gases, paced the advance.

The Dow Jones Stoxx 600 was little changed at 372.59 at 2:49
p.m. in London after falling as much as 0.6 percent earlier. The
Stoxx 50 decreased 0.1 percent, while the Euro Stoxx 50, a
measure for the 13 nations sharing the euro, was little changed.


Read more at Bloomberg Stocks News

UPDATE 2-U.S. H1 foreclosures jump, trending higher-RealtyTrac

(Reuters) - The spike in foreclosures reported by RealtyTrac
underscored another problem plaguing the U.S. housing market,
which has also been struggling with falling demand and hefty
inventory.




Analysts and the Federal Reserve have cited the housing
problem, exacerbated by the subprime blowup, as the biggest
risk to economic growth. Bond traders are betting that the Fed
would begin cutting interest rates later this year to cushion
the economy from a housing-led slowdown.


Read more at Reuters.com Bonds News

European Bonds Advance as Subprime Woes Send Corporate Debt Risk Soaring

(Bloomberg) -- European government bonds gained for
a fifth day as the risk of owning corporate debt soared to the
highest in at least three years.

Bunds rose, pushing 10-year yields to the lowest in 2 1/2
months, after Germany's IKB Deutsche Industriebank AG reported
losses linked to loans made to U.S. homeowners with poor credit
histories. Government debt dropped earlier on speculation the
European Central Bank will this week reiterate its preference for
higher rates.


Read more at Bloomberg Bonds News

UPDATE 1-ADM quarterly profit rises, ethanol volume down

(Reuters) - ADM has been boosted in the past year by demand for
alternative foods made from crops. But higher corn costs and
lower ethanol volume cut profit in its corn processing business
during the quarter, while oilseed processing profit was hurt by
lower European rapeseed and biodiesel margins, the company
said.




The largest U.S. food processor and ethanol producer, ADM
said earnings rose to $954.8 million, or $1.47 per share, in
the fiscal fourth quarter ended June 30, from $410.3 million,
or 62 cents per share, a year earlier.


Read more at Reuters.com Market News

RadioShack posts quarterly profit

(Reuters) - Analysts expected profit of 25 cents a share, according to Reuters Estimates. It was not immediately clear whether the estimates were comparable.




Sales fell 15 percent to $934.8 million, short of analysts' estimates of $983.6 million. Same-store sales fell 8.9 percent. In its statement, the company said the post-paid wireless business and the closure of 481 stores in 2006 hurt sales.


Read more at Reuters.com Market News

U.S. Two-Year Bonds Advance After Risk of Holding Corporate Debt Surges

(Bloomberg) -- U.S. two-year Treasuries rose after
a gauge of owning corporate debt surged to the highest in at
least three years.

Benchmark 10-year bonds also strengthened, pushing yields
to near the lowest in more than two months, after Germany's IKB
Deutsche Industriebank AG reported losses on U.S. subprime
mortgages. Treasuries extended gains into a fourth week on
concern rising defaults on home loans to people with poor credit
histories will worsen a housing slowdown and hurt economic
growth.


Read more at Bloomberg Bonds News

French Stocks Drop; Societe Generale and Dexia Decline as Michelin Gains

(Bloomberg) -- French stocks fell, paced by lenders
such as Societe Generale SA and Dexia SA.

Michelin & Cie. rose.


Read more at Bloomberg Stocks News

Orthovita announces share offering, debt facility

(Reuters) - In a separate transaction with a securitization vehicle,
Orthovita agreed to repurchase a revenue interest on future
sales of certain Orthovita products.





Read more at Reuters.com Bonds News

Oil holds above $76, supply worries support

(Reuters) - London Brent slipped 36 cents to $75.90. The North Sea benchmark reverted to a discount to U.S. crude last week on signs of lower crude stocks in Oklahoma.




Oil has rallied to within sight of last year's record high of $78.40, although the Organization of the Petroleum Exporting Countries has rebuffed calls from consumers for more crude.


Read more at Reuters.com Business News

HSBC says profits up 13 pct, but bad debts jump

(Reuters) - LONDON, July 30 - HSBC Holdings , Europe's biggest bank, reported a 13 percent rise in first-half pretax profits as a $1 billion one-off gain helped offset a jump in bad debts linked to its problems in the U.S. housing market.



HSBC said on Monday its charge for bad debts was $6.35 billion in the six months to the end of June, up 63 percent from $3.89 billion a year earlier.


Read more at Reuters.com Market News

U.K. Stocks Rise for First Time in Five Days; HSBC, ICI, BHP Pace Gains

(Bloomberg) -- U.K. stocks advanced for the first
time in five days, led by HSBC Holdings Plc after Europe's
largest bank reported profit that topped analysts' estimates.

Imperial Chemical Industries Plc and BHP Billiton Ltd. also
paced the gains.


Read more at Bloomberg Stocks News

GLOBAL MARKETS-Investors take break from credit worries

(Reuters) - Signs of the recent bout of risk aversion, however, were not
far away. MSCI's main world stock index was 6
percent off its all-time high just 10 days ago and Wall Street
volatility was at highs not seen since April 2003.




"Clearly credit worries are still very much at the fore of
investors' minds," said Nick Stamenkovic, bond strategist at RIA
Capital Markets.


Read more at Reuters.com Bonds News

ICI rejects improved $16 bln Akzo bid, talks continue

(Reuters) - ICI, the maker of Dulux paints, said on Monday that the two sides were still in talks after it rejected a 650 pence a share cash proposal from Akzo but it had not opened its books to the world's largest maker of industrial coatings.




Akzo, the maker of Crown paints, said it had teamed up with German consumer products group Henkel over its proposed bid, but there was no certainty it would make a better offer. Henkel would take on ICI's adhesives and electronics materials business if a deal went through, Akzo said.


Read more at Reuters.com Business News

Angloplat H1 headline EPS up 47 pct, cuts FY output

(Reuters) - South Africa's Anglo Platinum posted a 47 percent jump in interim headline earnings per share on Monday, at the top end of its own forecast, and cut its output estimate for the year.

Angloplat, the world's biggest platinum producer, said headline EPS for the six months to end June increased to 29.43 rand from 22.02 rand in the same period last year, mainly due to strong metals prices.


Read more at Reuters Africa

French Utility Stocks Drop, Led by Suez; Michelin and France Telecom Gain

(Bloomberg) -- French utility stocks dropped, paced
by Suez SA and Veolia Environnement SA. Michelin & Cie. and
France Telecom SA gained.

The CAC 40 Index slid 9.20, or 0.2 percent, to 5634.76 at
9:11 a.m. in Paris. The SBF 120 Index fell 0.1 percent.


Read more at Bloomberg Stocks News

UPDATE 1-KPN to bid for Getronics, reports Q2 results

(Reuters) - KPN will spend an additional 415 million euros on buying
back Getronics' outstanding convertible bonds maturing in 2008,
2010 and 2014 as well as preference shares, Chief Financial
Officer Marcel Smits said.




KPN, which also announced second quarter results early, said
the takeover, unanimously supported by Getronics' management and
supervisory boards, was part of its strategy to move from
providing communications links to more value-added services.


Read more at Reuters.com Mergers News

Europe Bonds Fall on Concern Recent Gains Aren't Justified By Rising Rates

(Bloomberg) -- European bonds fell on speculation
the longest run of weekly gains in five months isn't justified
by expectations for higher interest rates in the euro region.

The yield on the German 10-year bund, Europe's benchmark,
rose 2 basis points to 4.33 percent as of 7:21 a.m. in London,
after reaching 4.30 percent last week, its lowest since mid-May.
The price of the 4.25 percent security due July 2017 fell 0.16,
or 1.6 euros per 1,000-euro ($1,364) face amount, to 99.34.


Read more at Bloomberg Bonds News

Statoil Q2 tops fcast, keeps 2007 production target

(Reuters) - The result beat a 27.4 billion crown average forecast in a
Reuters poll of 19 analysts, whose estimates had ranged from
22.4 billion to 31.7 billion crowns.




"The 11 percent increase in net income from the second
quarter of 2006 to the second quarter of 2007 was mainly due to
lower income taxes and higher sales volumes of natural gas,"
Statoil ASA said in a statement.


Read more at Reuters.com Market News

European Bank Stocks May Decline, Led by ING, Credit Suisse, IKB Deutsche

(Bloomberg) -- European bank stocks may drop after
IKB Deutsche Industriebank AG, a German lender that invested in
U.S. subprime mortgages, said profit will be ``significantly''
lower than forecast.

``The subprime crisis has reached Germany,'' said Klaus
Stabel, head of research at ICF Kursmakler AG in Frankfurt.
``It's bad for sentiment. We haven't seen the bottom yet.''


Read more at Bloomberg Stocks News

ABN withdraws backing for Barclays bid

(Reuters) - ABN originally backed Barclays when announcing a deal to merge with it in April.




But it has now effectively withdrawn its recommendation even after Barclays sweetened its offer to buy ABN last week to include more cash.


Read more at Reuters.com Mergers News

Dow Jones family owners face deadline on bid: source

(Reuters) - Rupert Murdoch's News Corp., owner of Fox News, the New York Post and a sprawling global media empire, made its $60 a share bid for Dow Jones, the publisher of the Wall Street Journal, on May 1.




The board of Dow Jones endorsed the offer two weeks ago, sending the deal to the Bancroft family for approval.


Read more at Reuters.com Business News

Credit Suisse Fees Are Likely to Fall Most as LBO Market Slows, S&P Says

(Bloomberg) -- Investment banking fees are likely to
fall or stop growing as buyout firms purchase fewer companies,
and Credit Suisse Group would probably be the most affected
Standard & Poor's said in a report published today.

Group revenue at Switzerland's second-largest bank could
fall by 3.8 percent were leveraged buyout fees to fall by half,
S&P said. Earnings at Credit Suisse and UBS AG could plunge up to
19 percent as buyouts slow, Deutsche Bank AG analyst Matt Spick
said on July 26.


Read more at Bloomberg Currencies News

Japan's Bonds Decline as Investors Avoid Yields Near Lowest in Eight Weeks

(Bloomberg) -- Japan's government bonds fell on
speculation investors will avoid buying 10-year securities with
the lowest yields in eight weeks.

The yield on the benchmark 10-year bond rose 2 basis points
to 1.8 percent as of 12:48 p.m. in Tokyo at Japan Bond
Trading Co., the nation's largest interdealer debt broker.
Yields earlier touched 1.78 percent, matching the lowest since
June 1.


Read more at Bloomberg Bonds News

Japan's JBIC Plans Islamic Debt Backed by London Metal Exchange Contracts

(Bloomberg) -- Japan Bank for International
Cooperation, the government's main overseas lender, plans to sell
Islamic bonds backed by products traded on the London Metal
Exchange, an official said.

The Tokyo-based bank, known as JBIC, plans to sell Islamic
debt for the first time as early as in October, said Tadashi
Maeda, director general of the bank's energy and natural
resources finance department. JBIC will sell $200 million to $300
million of such securities, to be denominated in Malaysian
ringgit or dollars, in Malaysia, he said.


Read more at Bloomberg Bonds News

Barclays China Deal Spurs U.S., Europe to Limit Government-Fund Investment

(Bloomberg) -- The U.S., France and Germany are
racing to draw up rules to govern developing nations' secretive
state-controlled investment funds, spurred in part by Barclays
Plc's use of Chinese and Singaporean money in its takeover bid
for ABN Amro Holding NV.

With no international body such as the World Trade
Organization to oversee such investment, officials in the U.S.
are pushing the International Monetary Fund and World Bank to set
guidelines. Germany and France, meanwhile, are urging a joint
European response.


Read more at Bloomberg Emerging Markets News

PetroChina slides on fears Buffett will sell more

(Reuters) - Analysts said further sales were not impossible, pressuring
the shares in the short term.




For a story on Buffett's share sale, please click on
[ID:nHKG303146].


Read more at Reuters.com Mergers News

China Yangtze Power Profit Jumps 72 Percent on Output, Sale of Bank Stake

(Bloomberg) -- China Yangtze Power Co., operator of
the world's biggest hydropower project, said first-half profit
jumped 72 percent after the company sold shares in a bank and as
electricity output rose.

Net income surged to 2.25 billion yuan ($298 million), or
0.268 yuan a share, from 1.31 billion yuan, or 0.16 yuan, a year
earlier, Yangtze Power said in a statement to Shanghai's stock
exchange today. Sales rose 12 percent to 3.4 billion yuan.


Read more at Bloomberg Energy News

New Zealand June Home-Building Approvals Surge 15.8 Percent on Apartments

(Bloomberg) -- New Zealand's home-building
approvals posted the biggest gain in more than 18 months in June,
buoyed by consents for apartments, as record-high interest rates
failed to curb demand for new property.

Approvals to build new houses and apartments increased 15.8
percent from May, according to seasonally adjusted figures
released by Statistics New Zealand in Wellington today. The
increase was the most since December 2005. The number of
approvals was the highest since March 2005.


Read more at Bloomberg Bonds News

Japan's Stocks May Drop on U.S. Subprime Concern, Stronger Yen, LDP Defeat

(Bloomberg) -- Japanese stocks may drop after a
report on economic growth in the U.S. showed residential
investment slumping as the subprime problem worsens, pointing to a
weaker outlook for Japan's largest overseas market.

Toyota Motor Corp. and Sony Corp. may lead exporters lower
after the yen advanced to the highest against the dollar in more
than three months, reducing the value of their overseas sales.


Read more at Bloomberg Stocks News

Italy says has one less option to save Alitalia

(Reuters) - The Italian Treasury, which has a 49.9 percent stake in Alitalia, is struggling to decide its next move to salvage the money-losing carrier after its seven-month auction collapsed earlier this month.




Economy Minister Tomasso Padoa-Schioppa last week said Rome was debating whether to start a new bidding process from scratch or begin direct talks with potential suitors, but backed away from the latter option on Sunday.


Read more at Reuters.com Business News

UPDATE 1-American Home Mortgage says faces margin calls

(Reuters) - The company said in a statement released late Friday that
as a result of the margin calls from lenders, it has delayed
paying dividends on its common stock, and plans to delay
payments on its preferred shares.




Margin calls can create severe difficulty for a company
that depends on funds from its lenders to finance loans, and
can force the company to sell assets or seek other financing.


Read more at Reuters.com Bonds News

RPT-Bay Street Week Ahead - Offshore sirens beckon

(Reuters) - VANCOUVER, British Columbia, July 29 - As foreign
takeovers and private equity buyouts strip the Toronto Stock
Exchange of some of its biggest names, institutional investors
are increasingly shifting their gaze outside Canada.




Those investors with mandates to invest domestically, such
as "pure" Canadian mutual funds, say they might at some point
ask their fundholders to let them rejig their limits so that
they too can follow their peers to greater choice offshore.


Read more at Reuters.com Mergers News

Shanghai Auto tie-up may create Chinese car champion

(Reuters) - Shanghai Automotive Co. said on Friday that parent groups of the two companies had signed a letter of intent to discuss ways of achieving a "complete union" between the firms through business cooperation and restructuring.




China's central government and local authorities are pushing the tie-up as a way to build Shanghai Auto into a comprehensive auto maker that can compete with European, Japanese and U.S. giants at home and eventually overseas, industry sources and analysts said.


Read more at Reuters.com Business News

EMI buyer gets 85 pct of shares, extends deadline

(Reuters) - EMI shares had slipped further from the offer price over the last few days as investors worried the takeover might collapse because of the deterioration in credit markets.




Read more at Reuters.com Bonds News

Commodity markets mostly hold their own vs stocks

(Reuters) - Commodities were mostly firm on Friday despite the risk aversion sweeping through stock and financial markets, with metals, energy and agricultural products trading largely on their own fundamentals.

Platinum fell sharply and gold prices wallowed on concerns about the U.S. subprime mortgage crisis and other credit market problems. But copper rose on the strength of second-quarter U.S. economic growth that was stronger than expected.


Read more at Reuters Africa

ABN leans toward dropping support for Barclays-paper

(Reuters) - ABN AMRO declined comment.




The bank is expected to deliver a statement on the bids on
Monday morning alongside its quarterly results, based on
discussions at meetings of its supervisory and management boards
on Friday.


Read more at Reuters.com Mergers News

Key Bancroft trust voting structure may change: WSJ

(Reuters) - Two of the four main beneficiaries of the trust are in favor of a sale, the paper said, citing unnamed sources. If Bancroft turned down the offer against their wishes, he might expose himself to litigation. Splitting up the trust would allow him to vote his shares against the deal, while his relatives' shares could go in its favor, it said.




The paper also reported that another branch of the Bancroft family will vote against the deal, putting pressure on Rupert Murdoch to raise his offer.


Read more at Reuters.com Business News

UPDATE 1-Calpine mulls alternative reorganization moves

(Reuters) - SAN FRANCISCO, July 27 - Calpine Corp
put its bankruptcy reorganization plan on hold on Friday to
weigh alternative plans presented to the independent power
producer.




Calpine, in a filing at the U.S. Securities and Exchange
Commission, said "certain parties" have contacted the company
about an alternative reorganization that would guarantee a
payout to creditors.


Read more at Reuters.com Bonds News

UPDATE 1-Mexico's Femsa posts 19 pct rise in 2nd-quarter net

(Reuters) - Femsa said April-June net was 2.238
billion pesos compared with 1.883 billion pesos
a year earlier.




Femsa, which makes Sol and Tecate beer and is the world's
No. 2 Coke bottler, said quarterly revenue rose 7.4 percent to
36.006 billion pesos.


Read more at Reuters.com Market News

Money funds see $5 bln inflow on July 26-EPFR

(Reuters) - Thursday's money market fund inflows came after these funds
got $1.7 billion in net inflows for the week ended July 25,
EPFR said. The firm tracks money market funds globally with
$875 billion in assets.




High-yield bond funds saw outflows of $134 million on July
26, it said. High-yield bond funds tracked by EPFR that have
$76.4 billion in total assets saw $672 million in net outflows
for the week ended July 25, their worst week of outflows since
March, EPFR said.


Read more at Reuters.com Bonds News

Eastern U.S. coal profits top the West

(Reuters) - And the East won.




Consol Energy and Massey Energy , which
operate in the older central Appalachian coalfields of
Kentucky, Virginia and West Virginia, and in Pennsylvania in
northern Appalachia, both reported soaring profits.


Read more at Reuters.com Market News

Cattle Futures Climb Fifth Straight Week on Exports; Hogs Futures Rise

(Bloomberg) -- Cattle futures rose to a three-month
high in Chicago, capping their fifth-straight weekly gain, on
expectations that U.S. beef exports will increase. Hog prices
also advanced.

U.S. beef shipments to Japan and South Korea have risen
since both countries lifted bans imposed in December 2003 after
a mad-cow disease outbreak. Japan bought $1.4 billion of U.S.
beef in 2003 and South Korea bought $814 million worth.


Read more at Bloomberg Commodities News

UPDATE 2-Advanced Medical reaffirms Bausch & Lomb bid

(Reuters) - PHILADELPHIA, July 27 - Advanced Medical Optics
Inc. reaffirmed its $4.23 billion takeover bid for
Bausch & Lomb Inc. on Friday, and offered the eye-care
company two alternatives to gauge shareholder support for the
unsolicited offer.




Advanced Medical wants to wrest Bausch & Lomb away from its
existing agreement to be acquired by private equity firm
Warburg Pincus for $3.67 billion.


Read more at Reuters.com Mergers News

Lululemon stock jumps 50 pct in eagerly awaited IPO

(Reuters) - "A lot of people are clamoring for the shares," said Accountability Research Corp. analyst Mark Rosen in an interview.




"It's a name people recognize and see as trendy. And it has such a high-growth profile to it, that there's a lot of excitement."


Read more at Reuters.com Hot Stocks News

Windfarm operator Trinergy for sale: source

(Reuters) - Several private equity companies have handed in their bids in the second round of the transaction, which RBC Capital Markets is running, said the source, who declined to be identified.




RBC Capital Markets was not immediately available to comment.


Read more at Reuters.com Mergers News

US coal companies count cost of post-Sago safety

(Reuters) - Don Blankenship also said developing and installing new
tougher mine seals and other safety equipment would drive up
the cost per ton of its coal and some smaller Appalachian
producers might not be able to comply.




"It may take a mine or two out because they can't get
seals," Blankenship told Wall Street analysts.


Read more at Reuters.com Government Filings News

Bancroft branch to vote against Murdoch bid: WSJ

(Reuters) - The Denver branch of the family, which holds 9.1 percent of Dow Jones's voting stock, supports the deal but wants News Corp. chief Rupert Murdoch to raise his $60 per share bid for the company, the Journal reported citing a person close to the company.




News Corp. has no intention of raising its bid, the Journal reported.


Read more at Reuters.com Business News

FX OUTLOOK-Dollar decline looks set to resume next week

(Reuters) - Credit spreads widened, stocks fell sharply and U.S.
government bond yields tumbled as investors repatriated funds
from overseas holdings into safer dollar assets.




The low-yielding yen, a popular funding currency for risky
trades, was the exception and was on track for a 2 percent
weekly gain against the greenback and a nearly 6 percent weekly
rise against the high-yielding New Zealand dollar.


Read more at Reuters.com Bonds News

Emerging Market Bonds Decline as Investor Aversion to Riskier Assets Rises

(Bloomberg) -- Emerging-market bonds declined,
reversing earlier gains, as investors resumed selling riskier,
higher-yielding assets on mounting concern about losses related
to subprime mortgages.

The extra yield over U.S. Treasuries that investors demand
to hold the developing nation debt has soared to the highest in
more than a year. Argentine debt, among the riskiest in emerging
markets, has posted the biggest declines.


Read more at Bloomberg Emerging Markets News

GLOBAL MARKETS-U.S. stocks slip in volatile trade

(Reuters) - NEW YORK, July 27 - U.S. stocks slipped in
volatile trade on Friday as skittish investors weighed the
prospects of a global credit crunch against signs of a
resurgence of U.S. economic growth.




U.S. Treasuries were up, after earlier declines, following
surprisingly strong growth data that eased some of the worst
fears of an economic slump following a day of sharp equity
losses. The dollar rose on news of the U.S. economic data.


Read more at Reuters.com Bonds News

Citigroup sees subprime losses at Fannie, Freddie

(Reuters) - Citigroup, in the report published on Thursday, estimates
that the two companies' retained portfolios contain $182
billion of subprime bonds, almost all of which are rated
triple-A, based on public disclosure by Fannie Mae and
Freddie Mac and their regulator, the Office of Federal
Housing Enterprise Oversight,.




Fannie Mae and Freddie Mac have exposure to over $3
trillion in mortgages due to their guarantee portfolios and
$1.4 trillion in their retained portfolios, but the vast
majority of this exposure is prime mortgages, Citigroup said.


Read more at Reuters.com Bonds News

Qwest ex-CEO Nacchio ordered to forfeit $52 mln

(Reuters) - Nacchio was convicted in April on 19 counts of insider trading for grossing some $52 million in sales of Qwest stock in 2001 with information unknown to investors about the company's true financial picture. He was acquitted on 23 other charges. His attorneys said they will appeal the conviction.




Prosecutors have sought a seven-year sentence, a $19 million fine and forfeiture of the $52 million.


Read more at Reuters.com Business News

UPDATE 1-TransCanada profit rise fueled by new assets

(Reuters) - TransCanada said net income was C$257 million , up from a year-earlier C$244 million. Earnings per
share were 48 Canadian cents, compared with 50 Canadian cents.




Excluding one-time items, such as a C$33 million gain in
2006 from a cut in Canadian tax rates, earnings rose 22 percent
to C$241 million, or 45 Canadian cents a share, from C$198
million, or 41 Canadian cents a share.


Read more at Reuters.com Market News

Wheat Falls From Record as High Prices May Slow Demand for U.S. Exports

(Bloomberg) -- Wheat fell from a record in Chicago
on speculation high prices will slow demand for supplies from
the U.S., the world's biggest exporter of the grain.

U.S. exporters reported sales rose to the highest in 11
years last week, and since June 1 they are up 66 percent from a
year earlier, government data show. Prices have jumped 30
percent in the past two months.


Read more at Bloomberg Commodities News

UPDATE 1-Cuba reports big jump in foreign debt

(Reuters) - HAVANA, July 27 - Cuba's actively serviced foreign
debt jumped nearly $2 billion in 2006 to $7.794 billion as
foreign suppliers more than doubled their credits to the
country, according to figures posted on the Web site of the
National Statistics Office on Friday.




Most of Cuba's new debt was believed by local analysts to be
due to fresh credits from China and Venezuela.


Read more at Reuters.com Bonds News

Treasuries Head for Third Weekly Gain as Investors Avoid Riskier Assets

(Bloomberg) -- Treasuries headed for a third weekly
advance, pushing yields near the lowest since May, as the slump
in U.S. housing prompts investors to avoid riskier assets.

Investors seeking the safety of government debt this week
pushed yields on two-year notes, most sensitive to changing
monetary policy, 70 basis points lower than the Federal Reserve's
target rate. The risk of owning corporate bonds soared to a
record on concern that banks and hedge funds face widening losses
on subprime mortgages and leveraged buyouts.


Read more at Bloomberg Bonds News

Fortune Brands CEO bullish on Absolut acquisition

(Reuters) - Wesley also said some Wall Street analysts were
underestimating Fortune's ability to create shareholder value
through an acquisition, saying he did not see the 50 cent per
share to $1 per share dilutive impact to earnings that some
analysts have estimated.





Read more at Reuters.com Mergers News

Mexico's KOF 2nd-quarter net profit rises

(Reuters) - The company operates in nine countries across Latin America
and is the second largest Coke bottler in the world.





Read more at Reuters.com Market News

Richemont Lures Investors With China Demand for Piaget Polo Luxury Watches

(Bloomberg) -- Xinhai Liao wants to splurge on a
status symbol: a new watch. Rather than buy an imitation out of a
suitcase on a Hong Kong street corner, the Chinese financial
adviser went two blocks away to check out genuine Piaget Polo
watches.

``It has to be perfect,'' Liao said. Piaget maker Cie.
Financiere Richemont SA's sales of luxury watches are surging in
China as consumers snub domestic timepieces to show they can
afford the real thing. Piaget Polo gold watches have a
recommended retail price of more than 15,000 euros ($20,000),
according to The Watch Quote's Web site.


Read more at Bloomberg Exclusive News

Wall St falls as credit worries persist

(Reuters) - U.S. stocks fell on Friday as investors remained jittery about the worsening climate for financing corporate takeovers and about subprime mortgage losses dragging on the economy.

The underlying tone remained cautious on Wall Street a day after U.S. equities suffered the second worst decline this year, wiping out more than $300 billion in the S&P 500's value.


Read more at Reuters Africa

Constellation Energy quarterly earnings rise 25 pct

(Reuters) - The results included a 14 cents per share loss on the changing value of its trading contracts, which the company expects will reverse in future periods with a significant portion reversing this year.




Excluding these hedge losses, the company earned 78 cents per share compared with average analysts' expectations of 74 cents per share, according to Reuters Estimates.


Read more at Reuters.com Business News

EU clears Nestle's planned acquisition of Gerber

(Reuters) - In Poland there was only limited overlap between the two companies plus competition from other players while in Cyprus, Iceland and Portugal, the Commission concluded that market entry is relatively easy and the markets are competitive.




Nestle, already the world's biggest maker of infant formula, is now moving into the top position in baby food as well with the Gerber buy. Nestle has said it wants to expand Gerber operations globally.


Read more at Reuters.com Mergers News

US STOCKS-Wall St eyes flat open as data reassures

(Reuters) - NEW YORK, July 27 - U.S. stocks headed for a flat
to lower open on Friday as investors remained jittery about the
worsening climate for financing corporate takeovers, but
reassuring data on the economy offered some support.




A day after U.S. equities suffered their second worst
decline this year, futures temporarily cut losses following the
GDP report. But with European stocks volatile and Asian stocks
lower overnight, the underlying tone on Wall Street remained
nervous.


Read more at Reuters.com Bonds News

US STOCKS-Futures signal further turmoil for Wall St.

(Reuters) - NEW YORK, July 27 - U.S. stock index futures fell
on Friday as nervous investors braced for economic data and
earnings news a day after losses wiped out more than $300
billion of the S&P 500's value.




Worry about tightening credit that threatened to slow
growth and takeover activity were on investors' minds before
the government's first estimate of gross domestic product in
the second quarter.


Read more at Reuters.com Bonds News

Moog posts higher quarterly earnings, revises 2007 view

(Reuters) - Sales in the latest quarter rose 21 percent to $403.8
million. Analysts on average expected $370.6 million.




The company revised its outlook for the year and said it
expects earnings of $100.6 million, or $2.33 a share, on
revenue of $1.54 billion. Analysts on average expects earnings
of $2.36 a share on revenue of $1.48 billion.


Read more at Reuters.com Market News

SMFG to buy OMC Card stake

(Reuters) - Daiei, which owns 53 percent of OMC, has been trying to sell a stake in the credit card subsidiary to reduce its interest-bearing debt while SMFG has been taking steps to beef up its position in the consumer finance sector.




The deal will create one of the industry's largest players with about 36 million cardholders, allowing OMC and SMFG to pool their resources in a bid to expand sales and lower costs.


Read more at Reuters.com Mergers News

TREASURIES-Yields fall as US stock index futures dip

(Reuters) - S&P 500 futures were off 6.40 points, below fair
value while the Dow Jones industrial average futures were
down 54 points.




"Looks like jitters on subprime, and equities are falling.
But this is a vulnerable time of day an hour or two before the
Wall Street equity opening, and so volumes get thin at this
time," said a trader in London.


Read more at Reuters.com Bonds News

REFILE-UPDATE 4-TeliaSonera Q2 profit falls, names new CEO

(Reuters) - By Adam Cox



STOCKHOLM, July 27 - TeliaSonera reported a 5 percent fall in second-quarter core profits on Friday, missing market forecasts, and the company named a new chief executive after the previous boss was ousted.


Read more at Reuters.com Market News