Japanese 10-Year Bonds Have Biggest Decline Since March as Stocks Advance

(Bloomberg) -- Japan's government bonds had their
biggest decline since March after a rebound in stocks reduced
speculation investors will abandon riskier assets.

Benchmark 10-year bonds ended a four-day advance as the
lowest yields in almost three weeks deterred buyers. The gain in
stocks outweighed a government report today that showed
industrial production unexpectedly declined. Bank of Japan
Governor Toshihiko Fukui said in Tokyo today that the economy is
expanding faster than its potential growth rate.


Read more at Bloomberg Bonds News

Gold recovers from 3-month low on bargain hunting

(Reuters) - Gold rose on Thursday as bargain hunters reversed its decline to a 3-1/2-month low the previous day, when investors fled risk in global financial markets.

Tokyo gold futures also gained ground, helped by a halt in the yen's rally against the dollar.


Read more at Reuters Africa

U.S. Senate heads for crucial immigration vote

(Reuters) - The ultimate fate of the bill remained in doubt as the
Senate prepared to decide on Thursday whether to bring debate
to a close and move toward a final vote on the controversial
legislation that would legalize millions of unlawful
immigrants.




Supporters need 60 votes in the 100-member Senate to push
the bill toward a final vote and they expect Thursday's tally
to be close.


Read more at Reuters.com Bonds News

Australian Corporate Bond Sales Drop This Month on Risk Aversion, S&P Says

(Bloomberg) -- Sales of Australian corporate bonds
in June have fallen to the lowest this year as investors shun
risky assets, according to Standard & Poor's.

The ratings company's figures show corporate debt issuance
slowed to A$2.5 billion ($2.1 billion) in June compared with
average monthly sales of A$5.6 billion this year. Sales this
month are less than a quarter of February's total amid concerns
that hedge-fund losses in the U.S. subprime mortgage market will
snowball and impact the creditworthiness of other borrowers.


Read more at Bloomberg Bonds News

Gold Little Changed in Asia After Dropping to 3-Month Low; Tokyo Rises

(Bloomberg) -- Gold was little changed in Asia,
after falling to its lowest in more than three months yesterday,
as a decline in the Japanese yen alleviated concerns that
investors might sell the metal.

The yen fell from a two-week high against the U.S. dollar
and euro, on speculation investors resumed sales of the currency
in search of higher returns elsewhere through so-called carry
trades. Gold fell yesterday on concern that investors may sell
the metal to raise funds as the yen rose.


Read more at Bloomberg Commodities News

China at 45 Times Earnings Buoyed by `Herd Mentality,' Trust in Government

(Bloomberg) -- High above Shanghai, in an office
reserved for stock market barons, Xu Yongyi swirls a flask of
coffee, only breaking his rhythm to explain why money matters.

``It's not about being rich,'' asserts Xu, a 43-year-old
former factory worker who says he turned 16,000 yuan ($2,100) into
5 million yuan by trading shares. ``I want to rise above the
masses and prove I'm a step ahead.''


Read more at Bloomberg Emerging Markets News

Kia Motors Delays Sale of $500 Million of Bonds, Cites `Market Volatility'

(Bloomberg) -- Kia Motors Corp., South Korea's
second-largest automaker, shelved a planned dollar-denominated
bond sale, citing volatility in global debt markets, according to
an e-mail sent to investors.

The Seoul-based company had sought to sell at least $500
million of five-year bonds, according to an e-mail last week. It
hired Credit Suisse Group, JPMorgan Chase & Co., Korea
Development Bank and UBS AG to manage the sale.


Read more at Bloomberg Bonds News

UPDATE 2-Smart Modular Q3 sales miss Wall Street view

(Reuters) - BANGALORE, June 27 - Chip maker Smart Modular
Technologies reported third-quarter earnings in line
with Wall Street estimates, but sales missed expectations due
to a decline in average selling prices for dynamic random
access memory.




Smart Modular also forecast fourth-quarter net sales below
analysts' estimates.


Read more at Reuters.com Market News

Sri Lanka's Economy Likely Grew at Slowest Pace in Two Years Amid Violence

(Bloomberg) -- Sri Lanka's economy probably grew at
the slowest pace in two years as Asia's highest interest rates
and renewed violence between government forces and separatist
rebels curbed spending.

Gross domestic product expanded 6.1 percent in the first
quarter from a year earlier, after 6.2 percent growth in the
three months to Dec. 31, according to the median forecast of 11
economists in a Bloomberg News survey. That's the slowest pace
since the first three months of 2005. The central bank is due to
release the figures in the capital, Colombo, tomorrow.


Read more at Bloomberg Bonds News

Yen Drops on Speculation Investors Will Resume Carry Trades as Stocks Rise

(Bloomberg) -- The yen fell against the euro and
dollar, snapping a three-day winning streak, on speculation
investors resumed sales of the currency in search of higher
returns elsewhere through so-called carry trades.

Japan's yen declined against 15 of the 16 most-active
currencies after U.S. stocks gained yesterday, ending three days
of losses. The yen dropped the most against New Zealand's dollar,
where an 8 percent benchmark interest rate compares with Japan's
0.5 percent, the lowest among the major economies.


Read more at Bloomberg Currencies News

UPDATE 1-U.S. senators battle over immigration overhaul

(Reuters) - WASHINGTON, June 27 - Senate leaders seeking to
overhaul U.S. immigration laws struggled on Wednesday to beat
back the opposition ahead of a make or break vote on the bill
supported by President George W. Bush.




Backers were able to block a number of amendments they said
would have undermined the fragile compromise negotiated by a
group of Democratic and Republican senators and the White
House.


Read more at Reuters.com Bonds News

Consolidated Edison Restores Power After Scattered New York City Outages

(Bloomberg) -- Consolidated Edison Inc., owner of
New York City's utility, said it restored power after scattered
failures in parts of Manhattan and the Bronx.

New York City transit resumed service around 4:30 p.m. on
trains that run on Manhattan's east side. Three Manhattan police
precincts reported that they lost power, said a spokesman for the
department, Detective Kevin Czartoryski.


Read more at Bloomberg Energy News

ISS recommends CME shareholders okay CBOT deal

(Reuters) - ISS, an independent proxy advisory firm, earlier
recommended that CBOT shareholders approve the deal over a
higher, competing bid from Atlanta-based energy mart
IntercontinentalExchange Inc. .




Read more at Reuters.com Mergers News

LSI cuts 900 jobs in restructuring plan

(Reuters) - SAN FRANCISCO, June 27 - Chip maker LSI Corp. said on Wednesday it will cut about 900 jobs, or roughly 13 percent of its non-production workforce, as part of a broad plan to reduce costs.



LSI, which makes chips used in DVD recorders and hard drives, also gave revenue and earnings forecasts that were lower than the average Wall Street estimate, saying the market for its products was turning out to be weaker than expected.


Read more at Reuters.com Market News

Capital One cutting 2,000 jobs, sees charge

(Reuters) - NEW YORK, June 27 - Capital One Financial Corp. , the credit card issuer and banking company, said on Wednesday it expects to eliminate about 2,000 jobs, or 6 percent of its workforce, after struggling with mortgage banking losses and higher credit costs.



The McLean, Virginia-based company expects to incur $300 million of pre-tax charges for the restructuring, including $90 million this quarter and $200 million in 2007. It said these charges should reduce after-tax profit by 15 cents per share this quarter, and 33 cents per share in 2007.


Read more at Reuters.com Bonds News

REFILE-WRAPUP 1-US Treasury to review financial services rules

(Reuters) - Speaking at a conference organized by the Wall Street
Journal, Paulson said over the next six months, Treasury
willcreate a blueprint for a modern regulatory regime that
embraces best practices guidelines.




"This is not an easy topic. It's a very important topic:
how to have the regulatory structure that's going to operate
the way it should in the 21st century," he said. "We would like
this obviously to lead to action. We're optimistic that it
can."


Read more at Reuters.com Government Filings News

RPT-AeroGrow <AERO.O posts Q4 loss

(Reuters) - Fourth-quarter revenue was $6.4 million, a 30 percent
sequential rise from $4.9 million.




One analyst expected the company to post fourth-quarter
loss of 18 cents a share, before special items, on revenue of
$6.4 million, according to Reuters Estimates.



Read more at Reuters.com Market News

UPDATE 1-NEWSMAKER-Trouble-shooter takes on crucial role at Bear

(Reuters) - NEW YORK, June 27 - Bear Stearns Cos. Inc.
has decided it will take more than one veteran to
untangle the big mess at two hedge funds that invested heavily
in subprime mortgages.




Looking for a trouble-shooter, the investment bank has
turned to Thomas Marano, head of the firm's mortgage department
and an expert in specialized mortgage securities, a source
familiar with the funds disclosed on Tuesday. Marano's mandate
is to help Ralph Cioffi, the current manager, put one of the
funds back on its feet.


Read more at Reuters.com Bonds News

UPDATE 1-RLPC-Magnum Coal pulls $350 mln bond sale -sources

(Reuters) - Lehman Brothers was the lead manager for the seven-year,
second-lien secured notes.




Magnum Coal is rated "B3" by Moody's Investors Service and
"B-minus" by Standard & Poor's, the sixth highest junk rating.


Read more at Reuters.com Bonds News

UPDATE 1-Boeing to end parts production in Tennessee facility

(Reuters) - The Oak Ridge plant, employing 265 people, produces flight
deck consoles and metal machined parts for Boeing's jetliners
and also makes uranium centrifuges for other customers.




The plane maker said the decision was made because the
plant no longer has sufficient commercial airplane or other
parts production work to remain in operation.


Read more at Reuters.com Bonds News

U.K. Natural Gas Rises as Increased Imports Fail to End Supply Shortfall

(Bloomberg) -- U.K. natural gas for delivery today
rose after an increase in imports and withdrawals of the fuel from
storage failed to fully make up for a shortfall in supply.

Gas for intraday delivery traded at 23.25 pence a therm at
5:12 p.m. in London, compared with yesterday's last price for day-
ahead gas of 22.45 pence a therm, according to data from ICAP Plc.
The latest price is equivalent to $4.64 a million British thermal
units. A therm is 100,000 Btus.


Read more at Bloomberg Energy News

ComScore, Data Domain, Merck, Park Electrochemical: U.S. Equity Movers

(Bloomberg) -- The following is a list of companies
whose shares are having unusual price changes in U.S. exchanges
today. Stock symbols are in parentheses after company names.
Share prices are as of 1:10 p.m. New York time.

Oil Refiners: Citigroup Global Markets Inc. downgraded
shares of Valero Energy Corp. (VLO US), the largest U.S. refiner,
and Tesoro Corp. (TSO US), the largest refiner in the U.S. West,
to ``sell'' from ``hold'' because of valuations. Sunoco Inc. (SUN
US), the biggest refiner in the Northwest, was cut to ``hold''
from ``buy.'' Valero fell $1.55, or 2.1 percent, to $73.11.
Sunoco lost $2.07 to $78.26 and Tesoro retreated $1.98 to $55.93.


Read more at Bloomberg Stocks News

Drugmakers should disclose US doctor perks-experts

(Reuters) - Pharmaceutical companies spend at least $25 billion
annually in marketing -- much of it to doctors to influence
prescribing habits. At the same time, companies fund the bulk
of the clinical research to expand and approve new treatments,
which advocates said taints patient care.




"I intend to vigorously pursue stronger adherence to these
guidelines, as well as propose a national registry to require
disclosure of payments and gifts," Wisconsin Democratic Sen.
Herb Kohl said at the Washington hearing which was also
broadcast on the Internet.


Read more at Reuters.com Government Filings News

UPDATE 1-Community Health sells $3.021 bln notes

(Reuters) - The 8.875 percent notes were priced at 99.294 to yield 3.95
percentage points over U.S. Treasuries.




The sale was decreased from an initially planned $3.365
billion three-part sale and had been set to include an
eight-year floating-rate note issue and a 10-year senior note
issue.


Read more at Reuters.com Bonds News

Tchenguiz raises Sainsbury stake to 10 pct -source

(Reuters) - The source, who requested anonymity, would only say that Tchenguiz continued to see value in the company, which fought off a private equity takeover attempt earlier this year.



Sainsbury and a spokesman for Tchenguiz declined to comment.


Read more at Reuters.com Mergers News

Herley, Impac, Merck, Nike, UniFirst, Trump, Web.com: U.S. Equity Movers

(Bloomberg) -- The following is a list of companies
whose shares are having unusual price changes in U.S. exchanges
today. Stock symbols are in parentheses after company names.
Share prices are as of 11:40 a.m. New York time.

Oil Refiners: Citigroup Global Markets Inc. downgraded
shares of Valero Energy Corp. (VLO US), the largest U.S. refiner,
and Tesoro Corp. (TSO US), the largest refiner in the U.S. West,
to ``sell'' from ``hold'' because of valuations. Sunoco Inc. (SUN
US), the biggest refiner in the Northwest, was cut to ``hold''
from ``buy.'' Valero fell $1.62, or 2.2 percent, to $72.04.
Sunoco lost $2.36 to $77.97 and Tesoro retreated $1.92 to $55.99.


Read more at Bloomberg Stocks News

Benchmark ABX subprime index hits new low -sources

(Reuters) - The ABX 2007-1, which references loans from the second half
of last year, is trading between 55.5 and 56.5 compared to 57
on Tuesday. The index is near its recent low of 56.18.




Read more at Reuters.com Bonds News

Rand holds firm while stocks, bonds slip

(Reuters) - South Africa's rand held firm on Wednesday, despite faltering metals prices and equities falling as investors spurned risky assets, but bonds continued to slide.

The local currency was trading at 7.1780 to the dollar at 1515 GMT, 0.22 percent stronger than its previous New York close and well off a session low of 7.2325, touched in early trade. It was little changed against the euro, at around 9.62.


Read more at Reuters Africa

Iberdrola closes 3.4 bln euro cap hike placement

(Reuters) - A source close to the process had said Iberdrola would place
the shares at between 39.70 and 40.00 euros a share.




Read more at Reuters.com Mergers News

IEA Expects Oil Prices to Remain Near $70 a Barrel, Economist Birol Says

(Bloomberg) -- Crude oil prices will probably remain
near $70 a barrel during the next year because of political
tensions in Nigeria, Iran and Iraq, the chief economist of the
International Energy Agency said.

``I would be surprised if prices go down significantly,'' the
IEA's Fatih Birol said in an interview today at an energy
conference in Istanbul. ``We are going through difficult times.''


Read more at Bloomberg Energy News

UPDATE 1-Mexican markets down on soft U.S. economic data

(Reuters) - The peso gave up 0.42 percent to 10.8750 per
dollar, while the benchmark IPC stock index slipped 1
percent to 30,445 points.




The U.S. government report showed new orders for
long-lasting manufacturing goods fell more than expected in
May, suggesting the U.S. manufacturing sector may be weaker in
the second quarter than expected.


Read more at Reuters.com Bonds News

Iran Starts Rationing of Gasoline, Sparking Protests in Tehran's Streets

(Bloomberg) -- Iranians rioted in the streets of
Tehran after the government imposed rationing of gasoline, which
the country spends $5 billion a year to import.

Starting today, drivers will be allowed 100 liters, or about
26 gallons, of gasoline a month, Oil Minister Kazem Vaziri-Hamaneh
said on state television. Taxis will get 800 liters. Lawmakers said
earlier this month drivers would probably get five or six liters a
day, 50 percent more than the program actually grants them.


Read more at Bloomberg Energy News

General Electric Calls, Puts Should Be Sold, According to Goldman, Sachs

(Bloomberg) -- Investors should sell options on
shares of General Electric Co. because implied volatility, a key
factor in pricing the contracts, is poised to decline at the
world's second-biggest company by market value, according to
Goldman, Sachs & Co.

Investors who don't own GE shares should sell September
$37.50 puts, derivative strategists Maria Grant and John Marshall
wrote in a note to clients. Current shareholders should create
September $40 calls and September $37.50 puts and then sell them
to other investors, they said.


Read more at Bloomberg Stocks News

US STOCKS-Futures fall on durable goods, risk jitters

(Reuters) - NEW YORK, June 27 - U.S. stock index futures fell
on Wednesday, suggesting a lower open on Wall Street, after
weaker-than-expected durable goods data added to uneasiness
about growth in the economy and corporate profits.




Futures were already pointing a weaker open before the
report. A rise in the yen against other major currencies and
pressure from the subprime mortgage market stirred concern that
the appetite for stocks might weaken.


Read more at Reuters.com Bonds News

Nymex Gas Declines on Reduced Concern Over Hot Weather, Threat of Storms

(Bloomberg) -- Natural gas in New York fell for the
eighth consecutive session as intense hot weather that spurs
demand and storms that pose a possible threat to production
haven't materialized.

``Both July and August are down, basically anticipating
another big injection,'' said Phil Flynn, vice president of risk
management at Alaron Trading Corp. in Chicago. ``It seems we're
starting to put aside the fears of a long, hot summer and
hurricane season and just focusing on supply.''


Read more at Bloomberg Energy News

Dollar down vs yen after May US durable goods data

(Reuters) - The dollar fell against the yen on Wednesday after a report showed May U.S. durable good orders weaker than expected, raising concerns about the strength of the U.S. economy.

The yen was already up for a third straight session against the dollar as volatile global equity markets and continued concerns about the U.S. subprime mortgage sector made investors more wary of risky carry trades.


Read more at Reuters Africa

CommScope to acquire Andrew Corp. for $2.6 billion

(Reuters) - The latest $15-a-share offer also represents a 16 percent premium over Andrew's closing share price on Tuesday. At least 90 percent of it will be paid in cash, the companies said in a statement.




The move comes amid a wave of mergers in the telecommunications industry, among service providers and their equipment vendors.


Read more at Reuters.com Business News

Treasuries Extend Advance as Durable Goods Orders Drop More Than Forecast

(Bloomberg) -- Treasuries extended their gains
after a Commerce Department report showed orders for durable
goods dropped last month more than economists forecast.

``It supports the notion the economy isn't going
great,'' said David Coard, head of fixed-income trading in New
York at Williams Capital Group. There's ``a better bid in the
market.''


Read more at Bloomberg Bonds News

ConAgra profit beats estimates on trading strength

(Reuters) - The company posted net income of $192.0 million, or 39 cents a share, for the fourth quarter ended May 27, compared with $59.2 million, or 11 cents, a year earlier.




Income from continuing operations was 38 cents a share, including costs of 2 cents a share related to a recall of Peter Pan peanut butter and a benefit of 1 cent a share from a lower-than-expected tax rate.


Read more at Reuters.com Market News

German Power Prices for July Decline to Three-Month Low; Next Year Gains

(Bloomberg) -- German power prices for delivery in
July fell to a three-month low as the contract neared expiration.
Power for next year rose for the first day this week.

Electricity delivered in July in Europe's biggest power
market declined as much as 73 cents, or 1.8 percent, to 39 euros
($52.41) a megawatt-hour at 12:40 p.m. Berlin time, according to
prices from broker GFI Group Inc. on Bloomberg. That's the lowest
since March 27.


Read more at Bloomberg Energy News

American Oriental Bioengineering to offer 8 mln shares

(Reuters) - The underwriters for the offering are Piper Jaffray & Co.,
CIBC World Markets Corp., Lazard Capital Markets LLC, Jefferies
& Co Inc. and Brean Murray, Carret & Co. LLC.





Read more at Reuters.com Bonds News

Corporate Bond Risk in Europe at Three-Month High on Subprime Risk Concern

(Bloomberg) -- The risk of owning European
corporate bonds rose to the highest in almost three months amid
concern hedge-fund losses in the U.S. subprime mortgage market
may snowball, according to traders of credit-default swaps.

Contracts on 10 million euros ($13 million) of debt
included in the iTraxx Crossover Series 7 Index of 50 European
companies jumped 11,500 euros to 228,000 euros, the highest
since April 2, according to Deutsche Bank AG. The rising cost of
credit-default swaps, contracts based on bonds and loans,
indicates deteriorating credit quality.


Read more at Bloomberg Bonds News

Basel II may lead to smoother bank profits-Wellink

(Reuters) - "Basel II has pushed firms further than they may have gone
on their own," said Nout Wellink in a speech to a banking
conference on risk management in Paris.




"One might reasonably expect such improvements to lead to
more consistent profits and reduced volatility of credit losses
as a result of consistent risk spreading, more effective
deployment of capital and the ability to make better business
decisions," said Wellink.


Read more at Reuters.com Government Filings News

GLOBAL MARKETS-Investors dump risk as subprime worries weigh

(Reuters) - The risk premium on emerging market debt rose while the Japanese yen strengthened as investors moved away from popular "carry" trades funded by borrowing low-yielding currencies.




"The issue of U.S. subprime mortgages is flaring up again. It's not an atmosphere where people can aggressively take positions in risky assets," said one currency trader for a Japanese bank.


Read more at Reuters.com Bonds News

Gold Rises in London on Speculation Dollar's Rally Will End; Silver Falls

(Bloomberg) -- Gold snapped two days of declines
in London on speculation the dollar will stop strengthening
against other currencies, reviving demand for the precious metal
as an alternative investment. Silver also increased.

Bullion has dropped in five of the past seven weeks as
higher global interest rates and a strengthening dollar eroded
the metal's investment appeal. The dollar dropped against the
yen today and the yield on the U.S. 10-year note fell.


Read more at Bloomberg Commodities News

Iberdrola Aims to Raise $4.7 Billion in Share Sale to Pay for Energy East

(Bloomberg) -- Iberdrola SA, the world's largest owner
of wind-power parks, plans to raise about 3.5 billion euros ($4.7
billion) in a share sale to pay for U.S. utility Energy East Corp.

The Spanish utility will begin selling 85 million new shares
today through a so-called accelerated offering, the Bilbao-based
power producer said today in an e-mailed statement. ABN Amro
Rothschild, Credit Suisse Group and JPMorgan Chase & Co. are
managing the offering, which is aimed at fund managers.


Read more at Bloomberg Energy News

Japan's Topix Index Declines the Most in 12 Weeks on U.S. Housing Concern

(Bloomberg) -- Japanese stocks dropped, with the
Topix index slumping by the most in more than 12 weeks on
concern U.S. demand will falter, curbing profits, amid signs the
housing market there is worsening and after the yen strengthened.

Canon Inc. fell by the most since March and Honda Motor Co.
slid 1.6 percent. Mitsubishi Corp. had its second-worst
performance of the year, leading commodities-related shares
lower after prices of oil, copper, gold and other raw materials
slumped.


Read more at Bloomberg Stocks News

Yen climbs on risk aversion, carry trade unwinds

(Reuters) - Weak stock markets, due partly to concerns about the exposure of U.S. lenders to subprime mortgages, have reduced investor interest in risky assets around the world. The Nikkei share average fell 1.2 percent.




Market players were also on edge after Japanese Finance Minister Koji Omi warned the previous session that markets should be aware of the risks of one-way bets, an apparent reference to carry trades funded in the low-yielding yen.


Read more at Reuters.com Hot Stocks News