Monday, July 2, 2007

Air Liquide, Alstom, Bouygues, Danone, EADS, Valeo: French Equity Preview

(Bloomberg) -- Shares of the following companies may
rise or fall on the Paris stock exchange. Symbols are in
parentheses after company names and prices are from the last
close.

July futures on the CAC 40 climbed 33.5 to 6068 at 8:18
a.m. in Paris.


Read more at Bloomberg Stocks News

Korea Deposit Hires Citigroup, Deutsche to Sell Kepco Stake, People Say

(Bloomberg) -- Citigroup Inc. and Deutsche Bank AG
were among four banks hired by Korea Deposit Insurance Corp. to
sell a $1.43 billion stake in South Korea's largest utility, two
people with knowledge of the matter said.

Woori Investment & Securities Co. and Good Morning Shinhan
Securities Co. will also help arrange the sale of 32.2 million
shares in Korea Electric Power Corp., the people said, declining
to be identified because details aren't public.


Read more at Bloomberg Emerging Markets News

PRESS DIGEST - Wall Street Journal - July 3

(Reuters) - * Investment firm Leonard Green & Partners LP aims to
maintain Container Store Inc.'s growth rate after agreeing to
buy a majority stake.




* Bear Stearns Cos. Inc. officials plan to
strengthen the risk controls in its money-management unit and
add new risk managers.


Read more at Reuters.com Mergers News

TREASURIES-Slip in Asia after gains on security worries

(Reuters) - Fears about the credit market fallout from the troubles in
U.S. subprime mortgages have also prompted investors to favour
Treasuries over other fixed-income securities, keeping 10-year
swap spreads near their widest levels in four years.




"Are the fears overblown? They probably are, but no one is
going to want to be short into the holiday," said a swaps trader
at a U.S. investment bank in Tokyo.


Read more at Reuters.com Bonds News

U.S. Treasury Notes Decline; Gains in U.S. Stocks Ease Demand for Safety

(Bloomberg) -- U.S. 10-year Treasury notes fell as
the Dow Jones Industrial Average's biggest gain in almost three
weeks reduced demand for the relative safety of government debt.

Bonds snapped a two-day rally after the Nasdaq Composite
Index of shares closed at the highest in six years, overcoming
concern spurred by terrorist plots in the U.K. last weekend. The
yield spread on U.S. corporate bonds yesterday widened to 1.01
percentage points more than Treasury securities, the most in two
years, Merrill Lynch & Co. data show, as bond investors shunned
riskier corporate debt.


Read more at Bloomberg Stocks News

Thailand's SET Index Exceeds 800 for First Time in a Decade; PTT Climbs

(Bloomberg) -- Thailand's benchmark passes 800 points,
its highest in more than 10 years. PTT Pcl, the nation's biggest
energy company, and its PTT Exploration & Production Pcl unit,
led the gains.

``This is psychological,'' said Visit Tantisunthorn,
secretary general of Thailand's Government Pension Fund, which
manages about 320 billion baht ($9.3 billion) in assets. ``When
it reaches 800, people will talk about 850 and they will talk
about 900.''


Read more at Bloomberg Stocks News

Japan's Bonds Rise on Expectations 11-Month High Coupon to Lure Investors

(Bloomberg) -- Japan's 10-year government bonds
advanced on speculation the highest coupon in 11 months will
attract investors to an auction of the debt today.

The finance ministry set a 1.9 percent coupon on the 1.9
trillion yen ($15.5 billion) of new securities, the biggest
payout since August. The ministry accepted bids until noon and
will announce results of the sale at 12:45 p.m. in Tokyo.


Read more at Bloomberg Bonds News

Australian Dollar Falls as Retail Spending and Building Approvals Decline

(Bloomberg) -- The Australian dollar fell from an
18-year high after government reports showed retail sales and
building approvals declined in May. Bonds rose.

The currency pared gains as traders cut odds the Reserve
Bank of Australia will increase its key interest rate this year.
Economists had expected retail sales to rise and building
approvals to drop by less. Australia's dollar earlier climbed on
speculation investors may be lured to the yield advantage of the
country's government bonds.


Read more at Bloomberg Currencies News

RPT-China funds still upbeat on stocks, sour on bonds

(Reuters) - SHANGHAI, July 2 - Fund managers are still upbeat
about China's stock market in the third quarter but most are
shunning bonds and bills on expectations that market interest
rates will rise, a Reuters survey of eight China-based funds
showed.




Most of the funds polled late last week and on Monday said
the Shanghai Composite Index had entered a consolidation
phase, although it still had a chance to rebound above 4,000
points over the next three months.


Read more at Reuters.com Bonds News

CORRECTED - CORRECTED-TREASURIES-Slip slightly in Asia before factory data

(Reuters) - Treasuries gained on Friday, pulling benchmark yields down
further from five-year peaks struck in mid-June, as data showing
cooling core inflation suggested the Federal Reserve's next step
could be to trim interest rates from the current 5.25 percent.




September 10-year futures were flat at 105-22.5/32,
near a three-week high of 105-25.5/32 -- a level hit twice last
week that has become chart resistance for the contract.


Read more at Reuters.com Bonds News

Exporters, Shipbuilders, Hyundai, Kia, KT&G: South Korea Equity Preview

(Bloomberg) -- The following shares may rise or fall
in South Korea. Prices refer to the previous close. This preview
includes news announced after markets shut yesterday. Stock
symbols are in brackets after the company names.

The Kospi index rose 1.6 percent to 1771.35. The Kosdaq added
0.8 percent to 784.61. Kospi 200 futures expiring in September
advanced 2.1 percent to 226.35, while the underlying index climbed
1.6 percent to 224.75.


Read more at Bloomberg Stocks News

Ecuador to spend $350 mln in electricity subsidy

(Reuters) - "All this will cost the government around $350 million
between 2007 and 2008," said a high-ranking government official
who declined to be named.




Wall Street analysts fear that Correa's heavy spending
could in the long run damage the country's ability to repay its
$10.3 billion foreign debt.


Read more at Reuters.com Bonds News

WRAPUP 1-Paulson-US on guard against tainted Chinese goods

(Reuters) - During a wide-ranging interview with Reuters in which he said the beleaguered U.S. housing market was bottoming out, Paulson conceded that American attitudes toward China had soured over what some U.S. interests see as unfair trade tactics and worry about tainted food and other products.




"The perception of China in the U.S. has been on the negative side for some time because many in the U.S. are unhappy with the risks they see and some of the negatives they see in globalization," Paulson said.


Read more at Reuters.com Government Filings News

Citizens Financial to go private

(Reuters) - Fractional shares resulting from the reverse stock split
will not be issued, but will instead be purchased by the
company at $7.25 a share on a pre-split basis, the insurance
holding company said.





Read more at Reuters.com Mergers News

Oil States buys Texas-based well testing firm for $44 mln

(Reuters) - The deal will add about 4 cents a share to Oil States's
earnings in the second half of 2007, it added.





Read more at Reuters.com Mergers News

EDF CEO says markets expect French stake sale

(Reuters) - Asked if there was a deadline, he answered: "No, there is
absolutely no deadline."




Gadonneix declined to comment directly on the possibility that
EDF could merge with another French utility group.


Read more at Reuters.com Mergers News

Crude Oil Rises to 10-Month High on Tightening Year-End Supply Outlook

(Bloomberg) -- Crude oil rose to a 10-month high on
speculation inventories will decline as demand increases later in
the year.

UBS AG, Europe's largest bank by assets, raised its 2007
forecast for West Texas Intermediate by 6.5 percent to $65 a
barrel from $61 because of low inventories and strong demand. Oil
use peaks in the fourth quarter, when refiners make heating fuel
for the Northern Hemisphere winter. Gasoline consumption in the
U.S., the world's biggest oil user, usually rises in summer.


Read more at Bloomberg Commodities News

AT&T says iPhone activation problems largely solved

(Reuters) - By Monday, these issues were mostly resolved, AT&T spokesman Mark Siegel said.




"We have resolved nearly all of the issues and we feel confident this is behind us now," Siegel said. "One by one we worked to resolve and now nearly all of them have been resolved."


Read more at Reuters.com Business News

Mexican Peso, Local Currency Bonds Rise as U.S. Rates Seen Holding Steady

(Bloomberg) -- Mexico's peso and local-currency
bonds rose as expectation the U.S. Federal Reserve won't raise
borrowing costs this year raised the attractiveness of higher-
yielding emerging-market assets.

The gain in the peso today came amid a surge in 20 other
emerging-market currencies out of the 26 tracked by Bloomberg.
The Fed kept its benchmark interest rate at 5.25 percent for an
eight straight meeting last week as its preferred measure of
inflation rose at the slowest pace in two years in May.


Read more at Bloomberg Currencies News

Crude Oil Is Little Changed as Kansas Refinery Shutdown May Cut Demand

(Bloomberg) -- Crude oil was little changed close to
a 10-month high in New York as a refinery shutdown in Kansas cut
demand.

Coffeyville Resources LLC shut its refinery in Coffeyville,
Kansas, yesterday because of flooding on the Verdigris River,
according to as statement on its Web site. The 108,000-barrel-a-
day refinery can produce about 2.1 million daily gallons of
gasoline.


Read more at Bloomberg Commodities News

Kansas town hit with oil spill, flooding

(Reuters) - More than 1,000 barrels of oil were estimated to have spilled from the 108,000 barrel-per-day refinery in Coffeyville, Kansas, according to refinery operator Coffeyville Resources. The oil could not be contained on site and made its way into the Verdigris River.




The spill also contaminated the floodwaters, which had risen more than 30 feet, sweeping into homes and businesses and turning roads into rushing streams.


Read more at Reuters.com Bonds News

Rural wireless shares up after AT&T-Dobson deal

(Reuters) - Shares of U.S. Cellular rose 2 percent on the American Stock Exchange as investors bet it too could be part of the current wave of telecommunications mergers and acquisitions.




"They're certainly up because of M&A speculation ... Rural Cellular and SunCom are the ones that are up the most on acquisition speculation," said Stanford Group analyst Michael Nelson.


Read more at Reuters.com Hot Stocks News

UPDATE 1-MOVES-UBS, GE, Societe Generale, MPC Investors

(Reuters) - UBS AG said Lorraine George Harik will join UBS
Wealth Management U.S. as a senior client adviser in the
private bank.




GENERAL ELECTRIC


Read more at Reuters.com Bonds News

Wall Street gains on data, takeover news

(Reuters) - U.S. stocks rose on Monday, lifted by takeover news and data showing stronger manufacturing growth in June even as price pressures eased.

As the data reassured investors about the economy, shares of large industrial companies such as Caterpillar Inc. and Honeywell International gained.


Read more at Reuters Africa

Virgin Media buyout would wring profit from taxes

(Reuters) - The UK cable operator said on Monday it appointed long-time adviser Goldman Sachs to find a possible buyer after receiving a takeover approach.




Private equity firm Carlyle Group was behind the offer, people familiar with the situation say.


Read more at Reuters.com Business News

Apple, AT&T lower after iPhone's first weekend

(Reuters) - "We believe initial demand may have been disappointing, but it's still early," Bill Shope, analyst at JP Morgan, said in a note to clients. "We don't believe supply was much better than expected, so demand could be a bit light."



Shope estimates that Apple sold about 312,000 iPhones on Friday and Saturday. The combined cell phone, music player and Web browser went on sale Friday evening.


Read more at Reuters.com Hot Stocks News

UPDATE 1-Biogen signs deal to develop electrolyte drug

(Reuters) - Cambridge, Massachusetts-based Biogen said the drug,
lixivaptan, is an oral compound expected to enter a late-stage,
or Phase III, clinical trial this year in heart patients with
hyponatremia, a condition that occurs when the level of sodium
in the blood is too low.




Biogen will pay Philadelphia-based Cardiokine $50 million
up front and would make up to $170 million in additional
payments if and when certain development milestones were met,
as well as royalties on sales.


Read more at Reuters.com Mergers News

Germany mulling rules on foreign funds-Merkel

(Reuters) - State-owned funds were not necessarily interested in
maximising the return on capital and their investment might be
motivated more by a thirst for political influence, she said.




The German government had to react appropriately to this new
challenge and "this could happen via legal measures," she added.


Read more at Reuters.com Government Filings News

US STOCKS-Indexes extend gains after factory data

(Reuters) - The Dow Jones industrial average was up 91.37
points, or 0.68 percent, at 13,499.99. The Standard & Poor's
500 Index was up 11.55 points, or 0.77 percent, at
1,514.90. The Nasdaq Composite Index was up 21.70
points, or 0.83 percent, at 2,624.93.




Read more at Reuters.com Bonds News

Treasuries Little Changed as Index Shows Accelerating U.S. Factory Growth

(Bloomberg) -- Treasuries were little changed as a
private index showed U.S. manufacturing growth accelerated last
month to the highest in 14 months.

``Despite the move higher in rates and wider spreads and
increased capital costs, the economy is still showing signs of
strength,'' said James Caron, head of U.S. interest rate
strategy in New York at Morgan Stanley. ``The economy isn't
falling apart even with higher rates.''


Read more at Bloomberg Bonds News

Treasuries Steady Before Report Forecast to Show U.S. Manufacturing Growth

(Bloomberg) -- Treasuries were little changed before
a private report that's forecast to show growth in U.S.
manufacturing held near the highest in 13 months in June.

Businesses are expanding to rebuild inventories as the U.S.
recovers from a housing-led slowdown, economists said before
today's report by the Institute for Supply Management. Ten-year
yields, which move inversely to prices, rebounded from the
biggest drop in more than two weeks on June 29, when London
police found two cars packed with explosive materials.


Read more at Bloomberg Bonds News

Delta Galil says founder to transfer effective control

(Reuters) - Delta Galil said the consideration will be no less than
$21.25 million, reflecting a price of $8.50 per share, and will
be no greater than $25 million, reflecting a price of $10 per
share.





Read more at Reuters.com Mergers News

Dollar Drops to One-Month Low Against Euro on Outlook for Interest Rates

(Bloomberg) -- The dollar fell to the lowest level in
more than a month against the euro and dropped against the yen on
speculation the Federal Reserve will keep borrowing costs
unchanged while other central banks extend their increases.

Investors also sold the U.S. currency amid concern losses
from the subprime mortgage sector may weigh on the broader
economy, dimming the allure of dollar-denominated assets. Reports
this week are forecast to show U.S. job growth slowed last month
while a gauge of the service sector declined.


Read more at Bloomberg Currencies News

Bank of America says U.S. Trust clients staying on

(Reuters) - The purchase vaults the second-largest U.S. bank into a market-leading position in managing money for the rich, with some $265 billion of private banking assets under management.




Charlotte, North Carolina-based Bank of America has tried to curb defections since it announced the purchase in November, assuring clients of no changes in service. Among other things, it decided to call the combined private banking unit U.S. Trust, Bank of America Private Wealth Management, rather than substitute its own name, as it usually does in acquisitions.


Read more at Reuters.com Bonds News

U.K. Stocks Retreat, Led By British Airways; Legal & General Shares Drop

(Bloomberg) -- U.K. stocks declined, snapping a two-
day rally, paced by British Airways Plc and EasyJet Plc as oil
traded near a 10-month high and Britain raised its terror alert.

Legal & General Plc and Royal & Sun Alliance Insurance Group
Plc led insurers lower on concern claims tied to floods in the
U.K. will rise. Cadbury Schweppes Plc retreated following
speculation Kraft Foods Inc. will buy rival Group Danone SA's LU
cookie unit. BG Group Plc climbed with the price of oil.


Read more at Bloomberg Stocks News

VW commercial vehicle unit sales up 7.6 pct in H1

(Reuters) - The division's heavy trucks business in Brazil reported deliveries growing to about 21,750 vehicles, after selling 17,700 in the previous year.



)


Read more at Reuters.com Market News

Reddy Ice says to be acquired; cuts 2007 outlook

(Reuters) - July 2 - Reddy Ice Holdings Inc. , a maker of packaged ice, said it agreed to be acquired by certain funds managed by hedge fund GSO Capital Partners LP in a deal with a total value of about $1.1 billion. The purchase price of $31.25 a share in cash represents a premium of about 9.6 percent over the stock's Friday close of $28.52, Reddy Ice said in a statement.



The transaction is expected to close in the fourth quarter of 2007.


Read more at Reuters.com Mergers News

ServiceMaster, Ceridian, First Data Plan Sales: U.S. Corporate Bond Alert

(Bloomberg) -- ServiceMaster Co., the owner of the
TrueGreen lawn care and Terminix pest control businesses, and
Ceridian Corp. are among borrowers seeking to raise at least
$54.3 billion of bonds in the U.S., according to data compiled by
Bloomberg.

Companies sold $129.5 in bonds in June, compared with $146.5
billion in May. Sales year-to-date total $666.7 billion, up from
$553.1 billion a year ago.


Read more at Bloomberg Bonds News

U.K. Day-Ahead Electricity Rises as Natural Gas Costs, French Power Gain

(Bloomberg) -- U.K. power for delivery on the next
working day increased as the cost of natural gas rose and French
power traded at a higher price, suggesting Britain may export to
the continent tomorrow.

U.K. working-day-ahead baseload power rose as much as 4.6
percent to 25.10 pounds ($50.47) a megawatt hour, compared with
a last price on June 29 of 24 pounds a megawatt hour for
electricity delivered today, according to prices on Bloomberg
from the energy broker GFI Group Inc. It last traded at 24.50
pounds a megawatt hour as of 10:30 a.m. in London.


Read more at Bloomberg Energy News

Stocks seen mixed, manufacturing report eyed

(Reuters) - The Indicative Dow Jones industrial average , which tracks the 30 index blue chips as they are traded on the Deutsche Boerse's electronic trading platform, XETRA, and translates the prices into dollars, was 0.19 percent higher.




Trading is set to be fairly quiet prior to the July 4 Independence Day holiday in the middle of the week, when U.S. financial markets are closed, and investors are likely to take a breather in the mean time.


Read more at Reuters.com Business News

UPDATE 1-RBS sells London Citigroup tower for $2 bln

(Reuters) - Quinlan, founder and chairman of Quinlan Private, and
property investment firm Propinvest agreed a 50/50 joint venture
to buy the property and said it is let under a 25 year lease.




The building is similar in size and structure to HSBC's
headquarters sold for 1.1 billion pounds in April in a record UK
property deal.


Read more at Reuters.com Mergers News

UK financial services boom seen slowing in Q3 - CBI

(Reuters) - Business volumes in Britain's financial services sector grew at their fastest rate in seven years in the second quarter and employment rose, but that boom is expected to slow in the coming three months, a report showed.

A survey by the Confederation of British Industry (CBI) and accountants PricewaterhouseCoopers released on Monday showed 55 percent of respondents said volumes had grown in the three months to June, with only 4 percent saying they had dropped.


Read more at Reuters Africa

U.K. Government Bonds Climb on Terror Threat, Pound Gains on Rate Outlook

(Bloomberg) -- Gilts gained, pushing 10-year yields
to near a three-week low, as investors bought the safest assets
after U.K. police arrested five people following an attack on
Glasgow's airport and two attempted car bombings in London.

The gain in gilts, snapping a two-day losing streak, came
after the U.K. Home Office raised its terrorist threat assessment
for the country to ``critical'' after the incidents. The pound
gained for a fifth day before the Bank of England's meeting on
July 5 when policy makers are expected to raise interest rates by
25 basis points to 5.75 percent.


Read more at Bloomberg Bonds News

U.K. Natural-Gas Intraday Price Rises on Supply Halt, Export Expectations

(Bloomberg) -- U.K. natural gas for same-day delivery
rose to the highest in more than four weeks as forecasts showed
above-average demand may exceed supply amid a halt in flows at a
sub-terminal and expected exports of the fuel to Belgium.

Gas for intraday delivery gained 10 percent to 24.95 pence a
therm as of 8:25 a.m. in London, the highest since May 30,
according to prices on Bloomberg from broker ICAP Plc. That's
equivalent to $5.02 a million British thermal units. A therm is
100,000 Btus.


Read more at Bloomberg Energy News

French Stocks Drop; Air Liquide, STMicroelectronics Fall as Danone Gains

(Bloomberg) -- French stocks fell, led by Air
Liquide SA, STMicroelectronics NV and Renault SA.

The CAC 40 Index lost 36.35, or 0.6 percent, to 6018.58 at
9:04 a.m. in Paris. The SBF 120 Index also dropped 0.6 percent.


Read more at Bloomberg Stocks News

South Korean Won Rises as Export Growth Quickens; Government Bonds Advance

(Bloomberg) -- South Korea's won had its highest
close since Dec. 14 on speculation growth in Asia's third-
largest economy will accelerate, helped by rising exports.
Government bonds declined.

The won gained for a third day as a government report today
showed exports, which account for about 40 percent of the
economy, grew faster than expected in June. The finance minister
said improving overseas sales will help drive a quicker economic
expansion in the next six months. The currency touched the
highest in almost 10 years against the yen on June 22 and is
trading within 0.3 percent of that level today.


Read more at Bloomberg Currencies News