UPDATE 1-TSMC June sales fall 7.5 pct y/y, but up from May

(Reuters) - Looking ahead, increasing wafer output and more advanced
technology could help Taiwan Semiconductor Manufacturing Co. Ltd.
and smaller rival United Microelectronics Corp.
extend a recovery from a dismal first quarter, when
clients' high stockpiles squeezed their profits.




TSMC's unconsolidated sales were T$25.25 billion in June, lower than T$27.295 billion in the same month
last year, but up 0.6 percent from May, the Taiwan company said
in a statement, without giving an explanation.


Read more at Reuters.com Market News

BHP seeks partner for Alcoa bid: paper

(Reuters) - Sources familiar with the matter told Reuters last month that BHP had appointed investment bank Merrill Lynch to work on a possible bid for Canada's Alcan Inc , which is the subject of a $28.7 billion hostile bid from Alcoa.




The Times said Alcoa was BHP's preferred target, but it was unwilling to pay a premium for assets that it does not want to retain and so wanted to team up with a bid partner.


Read more at Reuters.com Business News

Telefonica in 3 bln euro Vivo offer-report

(Reuters) - Additionally, Alierta said he did not rule out taking
control of Telecom Italia , Italy's largest telecoms
company.




Telefonica has told Portugal Telecom to respond to the offer
by August.


Read more at Reuters.com Mergers News

EU Struggles to Find IMF Candidate; Poland May Make Nomination

(Bloomberg) -- European finance ministers struggled
to find a candidate for the top post at the International
Monetary Fund, as Poland mulled making a nomination and Britain
called for an ``open'' selection process.

The only declared candidate so far, former French finance
minister Dominique Strauss-Kahn, picked up Luxembourg's and
Belgium's backing. Poland may today nominate Leszek Balcerowicz,
a former finance minister and central banker known for the
``shock therapy'' that jolted Poland toward the free market after
the fall of communism.


Read more at Bloomberg Currencies News

Thailand's Baht Near Decade High; Speculation Exporters Exacerbated Gains

(Bloomberg) -- Thailand's baht traded at the
strongest in almost a decade on speculation exporters accelerated
demand for the currency after it rose beyond 34 to the dollar.

Foreign purchases of Thai stocks and the currency have
pushed the baht to the highest since the Asian financial crisis,
with exporters concerned about further gains exacerbating the
appreciation. Bank of Thailand Governor Tarisa Watanagase urged
exporters to refrain from ``panic'' selling of U.S. dollars as
the baht took its advance to almost 3 percent the past nine days.


Read more at Bloomberg Currencies News

Yen Gains Against Higher-Yielding Currencies Before BOJ's Policy Meeting

(Bloomberg) -- The yen rebounded from a record low
against the euro on speculation the Bank of Japan will signal at
a meeting this week it will raise interest rates in August.

The currency also rose against the New Zealand dollar, the
Australian dollar and the British pound, which are favored for
their higher yields. An increase in Japan's 0.5 percent overnight
lending rate may discourage investors from borrowing yen to
purchase overseas assets, known as carry trades.


Read more at Bloomberg Currencies News

Oil eases from 11-month high; eyes Nigeria, N.Sea

(Reuters) - London Brent crude , currently seen as a better indicator of the global market, fell 31 cents to $75.47 a barrel by 0207 GMT, reversing Monday's 16-cent gains but still within sight of the contract's all-time high of $78.65 struck August 8.




U.S. crude inched down 7 cents to $72.12 a barrel after falling 62 cents a day ago, as traders fretted that fresh refinery troubles would keep U.S. crude oil stocks flush.


Read more at Reuters.com Hot Stocks News

Peru's Miners Cancel Plans for Two-Day Strike After Talks, Union Head Says

(Bloomberg) -- Miners in Peru, the world's third-
largest copper producer, canceled a two-day nationwide strike
after moving closer to solving a dispute over companies' efforts
to restrict the creation of new unions, a union leader said.

``We are reaching an accord,'' Luis Castillo, general
secretary of the Mining Federation, an umbrella group for mine
workers, said July 9 in a telephone interview from Lima. The
stoppage had been due to start at midnight local time. The talks
were held with the government and company representatives.


Read more at Bloomberg Emerging Markets News

Yen Gains Versus Euro on Speculation of German, Italian Bond Redemptions

(Bloomberg) -- The yen rebounded from a record low
against the euro on speculation Japanese investors will
repatriate earnings from Italian and German government debt.

Italy pays 1.6 billion euros ($2.2 billion) and Germany 17.3
billion euros in coupon and principal on government debt today
and on July 12, according to data compiled by Bloomberg. The yen
yesterday fell to a record low versus the euro as investors sent
funds abroad in search of higher returns.


Read more at Bloomberg Currencies News

Australian Stocks Drop From a Record, Led by Alumina on Alcoa's Earnings

(Bloomberg) -- Australia's S&P/ASX 200 Index fell
from a record. Alumina Ltd. led the decline after its U.S.-based
partner Alcoa Inc. said second-quarter profit fell on rising
costs.

The S&P/ASX 200 Index lost 17.0, or 0.3 percent, to 6383.60
as of 10:24 a.m. in Sydney. About 12 stocks fell for every seven
that rose.


Read more at Bloomberg Stocks News

West Texas Sour Crude Oil Drops Against WTI on BP Whiting Unit Shutdown

(Bloomberg) -- West Texas Sour crude oil, a high-
sulfur grade delivered at Midland, Texas, weakened against the
U.S. benchmark today on speculation that the shutdown of a crude
unit at BP Plc's Whiting, Indiana, refinery would cut demand.

BP is shutting a 250,000 barrel-a-day crude unit, the
largest of three at Whiting, the biggest refinery in the U.S.
Midwest, a person familiar with the plant's status said today. A
restart date hasn't been determined. A second crude unit, able
to process about 75,000 barrels a day, is also out of service
and may restart at the end of the summer.


Read more at Bloomberg Energy News

Australian Dollar Trades Near 18-Year High as Prices of Commodities Gain

(Bloomberg) -- The Australian dollar traded near an
18-year high against the U.S. currency and the most in 16 years
versus the yen as prices rose for the metals the country exports.

The local dollar is the second-best performer among the 16
most traded currencies in the past five years as commodity
prices have surged. Exports of raw materials such as copper and
gold contribute about 14 percent to Australia's gross domestic
product. A measure of six metals traded on the London Metal
Exchange yesterday gained 0.5 percent to a one-month high.


Read more at Bloomberg Currencies News

ING's Garcia Seeks `Unpopular' Stocks for Biggest Philippine Equity Fund

(Bloomberg) -- Paul Joseph Garcia runs the largest
equity fund in the Philippines, where the market is so small that
the value of stocks bought and sold in a day, $83 million, is
only 5 percent that of Microsoft Corp.'s turnover.

He has to be careful his trades don't influence share
prices, since big orders have a disproportionate effect in a
thinly traded market, Garcia said. His 6.7 billion-peso ($146
million) Philippine Equity Fund is twice as large as the
country's No. 2 fund. It also can be hard to find buyers or
sellers for large purchases.


Read more at Bloomberg Stocks News

Akamai Technologies Will Replace Biomet in the S&P 500 Index, S&P Says

(Bloomberg) -- Akamai Technologies Inc., whose
software speeds the delivery of Internet data, will replace
Biomet Inc. in the Standard & Poor's 500 Index, S&P said today
in a statement posted on its Web site.

Biomet agreed in June to an $11.4 billion takeover offer
from buyout firms including Blackstone Group LP and the private-
equity arm of Goldman Sachs Group Inc. The change will take
place after the close of trading on July 11, S&P said.


Read more at Bloomberg Stocks News

U,S. small business owners outlook sours in June

(Reuters) - "GDP growth will continue, but it will be closer to two
percent real growth than three percent," said William
Dunkelberg, chief economist for the group.




The index has not delivered a recession signal, due in
large part to the strength of the labor market components --
the percent of firms with unfilled job openings and the net
percent of owners planning to expand employment, NFIB said.


Read more at Reuters.com Economic News

Parker Hannifin orders rise 6 percent in June

(Reuters) - Parker's aerospace division reported an 8 percent increase
in orders based on a rolling 12-month average.




Read more at Reuters.com Market News

Hedge funds have small June gains - tracking firms

(Reuters) - The Standard & Poor's 500 index slipped 1.8 percent last
month while the Dow Jones Industrial Average slipped 1.6
percent.




Hedge funds gained 2.45 percent in May, 1.78 percent in
April and 1.09 percent in March, the Hennessee Group said.


Read more at Reuters.com Bonds News

U.S. Stocks Rise, Paced by Alcoa; J&J, ConocoPhillips Climb on Buybacks

(Bloomberg) -- The U.S. stock market extended
July's advance on $25 billion of share buybacks and speculation
second-quarter earnings will surpass analysts' estimates.

ConocoPhillips, the third-largest U.S. oil producer, rose
to a record and Johnson & Johnson, the world's biggest maker of
health-care products, climbed the most in almost two months
after saying they will repurchase stock. Alcoa Inc., the
second-largest aluminum maker, led the Dow Jones Industrial
Average to within 27 points of a record ahead of today's
earnings report.


Read more at Bloomberg Stocks News

Emerging debt-Prices track stocks higher in slow market

(Reuters) - Mexico's local and external bonds were further bolstered by
news that the country's June inflation was in line with market
expectations, traders said.




Overall emerging market returns rose 0.16 percent,
according to the benchmark JP Morgan's EMBI+ index ,
while Brazil's global bond due 2040 , the most
liquid of its asset class, gained 0.187 point to be bid
131.125.


Read more at Reuters.com Bonds News

Sarkozy pledges budget discipline with reform

(Reuters) - "If we don't get to 2010, I'll be the first to regret that
fact but 2012 isn't a ridiculous date. That's something that was
discussed by the finance ministers and that's what will be in
the second scenario in the revised programme," he said.




Read more at Reuters.com Bonds News

US STOCKS-Indexes rise; Boeing, Google aid advance

(Reuters) - The view that second-quarter earnings will beat
expectations has been gaining supporters, analysts said, but
worries persist about inflation and bond yields above 5
percent.




Boeing was among companies that led the Dow industrials'
advance, with a 1 percent gain to $99.91 on the New York Stock
Exchange, a day after the jet presentation.


Read more at Reuters.com Bonds News

Sugar Rises on Speculation Brazil Is Using More Cane to Produce Ethanol

(Bloomberg) -- Sugar futures in New York rose on
speculation mills in Brazil, the biggest producer, may turn more
of a record sugar cane crop into ethanol and make less of the
sweetener than expected.

Mills in Brazil's center-south, the main sugar cane-growing
area, have turned less than 45 percent of the crop into sugar,
said Antonio Padua, technical director of the Center-South Sugar
and Ethanol Industry Association, known as Unica. Producers may
turn 55 percent of the harvest into ethanol, he said June 25.


Read more at Bloomberg Commodities News

Van Houtte shareholders OK takeover by Littlejohn

(Reuters) - The plan of arrangement remains subject to the sanction of
the Superior Court of Quebec, Van Houtte said, adding it
expects the application for sanction will be heard July 10.




The Montreal-based company, Canada's largest roaster and
distributor of coffee, will continue operating under the Van
Houtte name.


Read more at Reuters.com Mergers News

China Southern says to buy 45 Airbus, Boeing jets

(Reuters) - The Boeing planes, to be purchased by its 60 percent-owned
unit, Xiamen Airlines, would be delivered between July 2011 and
November 2013, the statement said, adding that list prices of
the Boeing jets were at $70.50 million-79.00 million each.




But purchase prices would be below the list prices in both
cases, the airline said. Financing for the purchases would be
met with internal resources and bank loans, it said.


Read more at Reuters.com Bonds News

UPDATE 3-Lear accepts sweetened Icahn bid, Pzena not swayed

(Reuters) - CHICAGO, July 9 - Billionaire investor Carl
Icahn's American Real Estate Partners LP raised its
takeover offer for Lear Corp. to about $3 billion, but
the auto parts maker's second biggest shareholder remained
unconvinced.




Pzena Investment Management LLC, which holds some 6.6
million Lear shares, or an 8.6 percent stake, said it plans to
vote against investor Icahn's latest offer for the auto parts
company, saying the company should remain independent.


Read more at Reuters.com Mergers News

FED FOCUS-Fed has way to go before rests on prices

(Reuters) - U.S. non-farm employers added 132,000 workers to their
payrolls in June and job growth in April and May was stronger
than first thought, the government said on Friday in a report
that showed the jobless rate holding at a low 4.5 percent.




With the economy rebounding after a weak first quarter, Fed
policy-makers will want to see inflation excluding energy and
food stay below 2 percent for several months in row.


Read more at Reuters.com Bonds News

Pzena says to vote no to latest Lear offer

(Reuters) - Icahn offered $36 per share previously and said he wouldn't
raise the offer. Icahn could not be reached for comment.




"We're voting against this," said Pzena, whose firm is
Lear's second-biggest stockholder. "We're not looking for an
extra dollar."


Read more at Reuters.com Mergers News

Rand trapped in ranges vs dollar

(Reuters) - South Africa's rand was trapped in a tight band versus the dollar on Monday in a quiet session lacking fresh market news and traders said the unit would likely be rangebound in the next few sessions.

The rand was trading at 6.9690 at 1520 GMT, about 0.23 percent firmer than its last New York close of 6.9850 on Friday. It firmed to 6.9565 earlier.


Read more at Reuters Africa

Emerging Market Stocks Stage Longest Rally in 16 Months, Led by Samsung

(Bloomberg) -- Emerging markets stocks rose for an
eighth day, as Samsung Electronics Co. led the longest rally in a
developing country stock index almost 16 months, boosted by rising
computer chip prices.

The MSCI emerging markets index rose 1.3 percent to 1120.80 at
10:43 a.m. in New York, breaking a record for a sixth day. The
eight-day streak is the longest since March 20, 2006.


Read more at Bloomberg Emerging Markets News

Minera Autlan, TV Azteca and Wal-Mart de Mexico: Mexican Equity Movers

(Bloomberg) -- Mexico's main stock index rose to a
record for a second day, led by retailer Wal-Mart de Mexico.

The Bolsa index advanced 61.09, or 0.2 percent, to 32,472.93
at 10:27 a.m. New York time.


Read more at Bloomberg Stocks News

Platinum Rises as Potential Strikes May Disrupt Supplies; Palladium Gains

(Bloomberg) -- Platinum rose in New York on concern
potential strikes in South Africa, a source of almost 80 percent
of the metal, may disrupt supplies. Palladium also gained.

Last week, the price of platinum had the biggest weekly gain
in two months as unions threatened to walk off the job over wage
disputes. Anglo Platinum Ltd. raised a pay offer last month to
try to avert a strike and employees at Impala Platinum Holdings
Ltd. turned down a proposed wage increase on June 27. The two
companies are the world's biggest platinum producers.


Read more at Bloomberg Commodities News

Carlyle to acquire Sequa for $2 billion

(Reuters) - Sequa said the estate of founder Norman Alexander and related entities, which hold about a 54 percent stake in the company, have agreed to vote in favor of the transaction. Alexander died in December 2006.




Sequa makes aerospace, automotive, metal coating, specialty chemical, industrial machinery and other products.


Read more at Reuters.com Business News

LaBranche to launch strategic review; shares up

(Reuters) - NEW YORK, July 9 - LaBranche & Co. Inc. , which runs one of the largest equity specialist trading operations on the floor of the New York Stock Exchange said on Monday it would begin a strategic review of the company, sending its shares up 4 percent in morning trading.



The company also said it would sell its equity specialist operation on the American Stock Exchange and report a second-quarter net loss due to charges related to its NYSE Euronext investment.


Read more at Reuters.com Mergers News

Alnylam, Boeing, LaBranche, Lexmark, Schnitzer Steel: 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 9:35 a.m. New York time.

Alnylam Pharmaceuticals Inc. (ALNY US) rose $8.30, or 55
percent, to $23.50. Roche Holding AG (ROG VX), the world's
biggest maker of cancer medicines, may pay as much as $1 billion
for rights to Alnylam technology that may allow the companies to
find new tumor, liver and breathing treatments.


Read more at Bloomberg Stocks News

Barr unit gets approval for generic Dostinex

(Reuters) - Barr had acquired the product, used for the treatment of hyperprolactinemic disorders, from Teva Pharmaceuticals Industries Ltd. .






Read more at Reuters.com Government Filings News

EMC's VMware unit expects IPO price at $23-$25/shr

(Reuters) - Following the offering, VMware will have two classes of common stock, Class A and B, and EMC will continue to be the controlling stockholder.




EMC will own 32.5 million Class A and all 300 million Class B shares, representing about 89 percent of the company's outstanding shares, the filing said.


Read more at Reuters.com Business News

Westmoreland Coal to sell 4 power plant contracts

(Reuters) - The deal is expected to close in August 2007, the company
said.




Read more at Reuters.com Mergers News

Google to buy e-mail security company for $625 mln

(Reuters) - Google said Postini will become a wholly-owned subsidiary. The deal is subject to customary closing conditions. The deal is expected to close by the end of the third quarter.




Read more at Reuters.com Bonds News

Nigerian bank GTB to raise $750 mln through GDR

(Reuters) - Nigeria's Guaranty Trust Bank plans to raise $750 million through the sale of Global Depository Receipts (GDRs) to local and international investors, the bank said on Monday.

The bank said in a statement posted on its website that the offer to be listed on the London Stock Exchange will consist of $500 million for foreign investors and $250 million which will be raised locally.


Read more at Reuters Africa

U.S. Stock-Index Futures Gain on Earnings Optimism; Alcoa, Boeing Advance

(Bloomberg) -- U.S. stock-index futures rose on
speculation Alcoa Inc. will kick off the second-quarter earnings
season with results that beat analysts' estimates.

Boeing Co., the world's second-largest commercial airplane
maker, advanced on reports it received orders for its 787
Dreamliner. Alnylam Pharmaceuticals Inc. soared after Roche
Holding AG, the biggest maker of cancer medicines, agreed to buy
the rights to its therapeutic technology for up to $1 billion.


Read more at Bloomberg Stocks News

Calpine: Hearing date set to consider approval of settlements

(Reuters) - In June, Calpine had filed a reorganization plan to emerge
from Chapter 11 bankruptcy protection, saying unsecured
creditors would receive nearly all of their allowed claims.





Read more at Reuters.com Bonds News

Platinum Rises as Potential Strike May Disrupt Supplies; Palladium Falls

(Bloomberg) -- Platinum rose for a sixth consecutive
session, the longest rally in more than a year, as a potential
strike in South Africa took the focus from a possible slowdown in
demand from carmakers, the biggest users. Palladium dropped.

Platinum supplies are threatened by ``widespread South
African industrial action'' as wage talks that started last month
still aren't settled, UBS AG analysts led by London-based Daniel
Brebner wrote in a report yesterday. Prices had dropped on
declining car registrations in Germany, Europe's biggest economy.


Read more at Bloomberg Commodities News

SXR Uranium One sees strong price, output growth

(Reuters) - Uranium One said on Monday it expected its output to grow significantly over the next few years to pip top producer Cameco Corp. by 2013 on current estimates.

Uranium One Chief Executive Neal Froneman said prices for uranium would also grow steadily and viewed the company's production profile as healthy, and well distributed globally with output from Kazakhstan, South Africa and the United States.


Read more at Reuters Africa

UPDATE 1-Morgan Stanley to buy $1 bln Seoul office building

(Reuters) - SEOUL, July 9 - Morgan Stanley will buy a
Seoul office building from South Korea's Daewoo Engineering and
Construction Co. for $1 billion in the Wall Street
bank's latest big deal in the booming Asian property market.




Morgan Stanley has joined a slew of foreign investors buying
Asian property assets, which are yielding stable returns on the
back of tight supply in a region which has been chalking up
blistering economic growth.


Read more at Reuters.com Mergers News

UPDATE 1-EU court upholds Commission approval of Akzo deal

(Reuters) - Sun Chemical, an ink maker and retailer, brought the case to
court because it believed the Commission, the top EU antitrust
regulator, ignored vital information when it considered whether
Hexion could buy Akzo's inks and adhesives resins unit.




The Commission approved the deal in May last year, saying
although the merged group would have a large market share, a
number of strong rivals would ensure effective competition.


Read more at Reuters.com Government Filings News

Norsk Hydro to book $31 mln Q2 charges on US unit

(Reuters) - "Hydro has decided to close or sell its aluminium remelting
activities at Ellenville, New York," Norsk Hydro ASA said in a
statement. "A possible closure would be effective by the end of
September 2007."




"While planning for a possible closure, Hydro will also
actively explore a potential sale of the Ellenville plant,"
Hydro said and added that a sale would be considered in the
coming weeks. It said about 55 jobs could be cut.


Read more at Reuters.com Mergers News

European Stocks Rise, Led by BHP Billiton, Anglo American; Univar Surges

(Bloomberg) -- European stocks climbed for a second
day, led by mining and telecommunications companies, after a
strike in Chile sent copper prices higher and Telekom Austria AG
raised its profit forecast.

BHP Billiton Ltd. and Anglo American Plc rose. Univar NV,
the largest distributor of chemicals in the U.S., surged to a
record after CVC Capital Partners offered to buy the company.
Royal Numico NV jumped on speculation Europe's biggest baby-food
maker may receive a takeover bid.


Read more at Bloomberg Stocks News

Ever-popular carry trades send yen to fresh troughs

(Reuters) - The dollar hovered near a 4-1/2-year high against the yen but stayed on the back foot against the euro, failing to get a lasting boost from Friday's surprisingly strong U.S. jobs data.




Despite strong U.S. economic releases, the Federal Reserve is expected to keep interest rates on hold this year, a negative factor for the dollar when central banks around the globe are tightening monetary policy.


Read more at Reuters.com Hot Stocks News

Australian Shares Climb to Record, Led by BHP Billiton on Higher Oil Price

(Bloomberg) -- Australian stocks rose, pushing the
S&P/ASX 200 Index to a record high. BHP Billiton Ltd. and Santos
Ltd. gained as oil prices traded near a 10-month high.

Rio Tinto Group advanced on a report it may bid for Alcan
Inc., while Zinifex Ltd. jumped on speculation of a combination
with Oxiana Ltd.


Read more at Bloomberg Stocks News

Taiwan UMC's June sales fall 0.44 pct from yr ago

(Reuters) - Sales at United Microelectronics Corp. were T$8.745 billion last month, lower than T$8.784 billion in the same month last year, the company said on its Web site . UMC had sales of T$8.220 billion in May.



Sector leader Taiwan Semiconductor Manufacturing Co. Ltd.


Read more at Reuters.com Market News

Canadian Dollar May Rally to 120 Yen as Economy Strengthens, Nomura Says

(Bloomberg) -- The Canadian dollar may extend a
rally to a 17-year high of 120 yen this quarter as a
strengthening economy and rising interest rates attract
investment, said Takahisa Odaka at Nomura Securities Co.

The Bank of Canada will lift the overnight rate by a
quarter percentage point to 4.5 percent tomorrow, increasing the
appeal of the nation's assets, according to all but one of 29
economists surveyed by Bloomberg News. Commodity demand from
China and other nations helped drive Canada's dollar to the
highest since 1977 against the U.S. currency last week. Raw
materials make up more than half of the nation's exports.


Read more at Bloomberg Currencies News