Tuesday, July 10, 2007

Moroccan banks' bad loans tumble in 2006 - c.bank

(Reuters) - Morocco's banks took advantage of a stronger economy and a mortgage boom to slash bad debts and rein in costs in 2006, putting them on their strongest footing in years, the kingdom's central bank said on Tuesday.

Moroccan lenders are emerging from years of painful restructuring after indiscriminate lending in the early 1990s brought some big industry names close to collapse.


Read more at Reuters Africa

Private equity ready to target big miners-report

(Reuters) - According to a report from the group's global mining and
metals group, traditional barriers to investment in mining by
private equity are dropping and even the biggest companies in
the sector could be potential targets.




Private equity dealmakers have historically avoided the
sector because of its boom-to-bust cycles, specialist
requirements and lack of easy exit strategies.


Read more at Reuters.com Mergers News

U.S. Congress eyes private equity, hedge fund titans

(Reuters) - In three separate hearings on Capitol Hill, lawmakers are expected to ask whether these secretive and super-rich financiers pay enough taxes and whether the Bush administration does enough to protect the economy and investors from them.




A handful of bills have been filed in both the Senate and the House of Representatives that would sharply raise tax rates paid by both private equity and hedge fund leaders, many of whom are billionaires but largely unknown to the public.


Read more at Reuters.com Bonds News

Asia stocks tumble, dollar at lows on s

(Reuters) - Global markets were rattled on Tuesday after two leading rating agencies started to slash ratings for more than $17.3 billion of U.S. mortgage-related debt, raising concerns that the sector's woes are worse than previously thought.




Tokyo's Nikkei dropped more than 1 percent by the market's midday break on Wednesday, retreating further from a seven-year closing high reached on Monday.


Read more at Reuters.com Hot Stocks News

Barnes Group, Dendreon, Emcore, Tektronix, Tercica: U.S. Equity Preview

(Bloomberg) -- The following is a list of companies
whose shares may have unusual price changes in U.S. exchanges
today. This preview includes news that broke after exchanges
closed yesterday. Stock symbols are in parentheses after company
names.

Barnes Group Inc. (B US) rose $1.44, or 4.4 percent, to $34
in trading after the official close of U.S. exchanges. The maker
of components for automobiles and aircraft said certain of its
3.75 percent convertible notes were eligible for conversion.


Read more at Bloomberg Stocks News

Nickel Forecast Raised by Credit Suisse as Steelmakers Restart Purchases

(Bloomberg) -- Nickel cash prices may average
higher than forecast this year as stainless steelmakers resume
purchases, Credit Suisse Group said.

Nickel may average $17.97 a pound ($39,617 a metric ton),
up from a previous estimate of $15, analysts including Jeremy
Gray at the bank said in a July 6 report. The metal has averaged
$19.91 so far this year.


Read more at Bloomberg Commodities News

Buy Coles Bonds, Credit-Default Swaps on Wesfarmers Bid, ABN Amro Says

(Bloomberg) -- Investors should buy bonds sold by
Coles Group Ltd. and credit-default swaps based on the securities
to profit from a successful acquisition of the Australian
retailer by Wesfarmers Ltd., according to ABN Amro Holding NV.

Wesfarmers, Australia's biggest home improvement chain, is
likely to buy back Coles' A$400 million ($343 million) of bonds
due in July 2012 should it succeed in buying the Melbourne-based
retailer, said Mark Bayley, director in credit and structuring
at ABN Amro.


Read more at Bloomberg Bonds News

India's Industrial Output Growth Probably Slowed on Rupee, Interest Rates

(Bloomberg) -- India's industrial production growth
probably slowed for a second month in May as higher interest
rates damped consumer demand and currency gains weakened exports.

Output at factories, utilities and mines rose 12 percent
from a year earlier, following a 13.6 percent increase in April,
according to the median forecast of 15 economists in a Bloomberg
News survey. The Central Statistical Organisation will release
the production numbers at noon in New Delhi tomorrow.


Read more at Bloomberg Emerging Markets News

Dow Jones meets investors on alternate bid: source

(Reuters) - "They came and presented at least one idea for a possible
transaction," the source said.




Further details of what occurred during the meeting were
not immediately available, nor was it clear how Dow Jones board
members responded to the ideas. Officials at Dow Jones, Burkle
and Greenspan could not immediately be reached for comment.


Read more at Reuters.com Mergers News

White House threatens House student loan bill veto

(Reuters) - Expected to come up for a House floor vote on Wednesday,
the House bill and a similar measure in the Senate have been
attacked by the $85 billion student-loan industry, but
championed by industry critics, including some student groups.




If adopted into law, the bill would likely squeeze large
lenders' profits and chase smaller ones from the sector,
industry analysts have predicted.


Read more at Reuters.com Bonds News

Yen Retreats From 1-Month High; Speculation Japanese Individuals Selling

(Bloomberg) -- The yen erased an advance to a one-
month high against the dollar on speculation Japanese retail
investors are selling the currency in search of higher returns.

The yen traded at 121.76 per dollar at 9 a.m. in Tokyo
from as high as 120.99 and from 121.74 late in New York yesterday.
Japan's currency traded at 167.41 per euro from as high as 166.61.


Read more at Bloomberg Currencies News

Court hears arguments in "light" smokes case

(Reuters) - The hearing before the U.S. Court of Appeals for the Second Circuit is the latest development in a closely watched case filed by smokers, who say tobacco companies defrauded them into thinking "lights" were safer. Last year a federal judge certified the case as a class action, prompting tobacco companies to appeal.




During the hearing in Manhattan, a three-judge panel asked lawyers whether it could be presumed that smokers who bought "light" cigarettes believed they were safer or whether that had to be worked out on a case-by-case basis.


Read more at Reuters.com Government Filings News

Wall St's fear gauge lights up as U.S. stocks slide

(Reuters) - "A combination of pre-earnings angst, higher energy prices, and worries about credit problems have driven risk perceptions sharply higher," said Frederic Ruffy, analyst at Optionetics, an options education firm in Redwood City, California.




Commonly called Wall Street's fear gauge, the VIX often rises to indicate participants are bidding up index options as they become more nervous about the market.


Read more at Reuters.com Bonds News

Yen Gains for Second Day as Drop in U.S. Stocks Prompts Carry Trade Unwind

(Bloomberg) -- The yen gained for a second day
against the dollar after a fall in U.S. stocks prompted
speculation investors will unwind so-called carry trades.

The yen was at 121.38 per dollar at 6:59 a.m. in Tokyo from
121.74 late in New York yesterday. Japan's currency traded at
167.09 per euro from 167.38.


Read more at Bloomberg Currencies News

Investors buy protective puts on Lehman bond fund

(Reuters) - Investors often turn to equity puts, giving them the right
to sell a stock at a preset price within a specified time
period, to guard their holdings against downside risk.




The iShares Lehman 20+ Year Treasury Index
, which tracks bonds with longer maturities in the
Treasury market, rose 1.59 percent, or $1.33, to close at
$85.04 on the New York Stock Exchange. The fund is also traded
on the American Stock Exchange.


Read more at Reuters.com Bonds News

Stocks in U.S. Decline; Shares of D.R. Horton, Sears Retreat on Earnings

(Bloomberg) -- Builders, banks and retailers sent
the U.S. stock market tumbling for the first time in six days on
increasing evidence the housing slump is depressing earnings.

Home construction shares fell to the lowest in almost four
years after D.R. Horton Inc. said a decrease in orders will lead
to a third-quarter loss. Lehman Brothers Holdings Inc. and Bear
Stearns Cos. dropped after Standard & Poor's said mortgage
defaults may grow. Sears Holdings Corp., the biggest U.S.
department-store company, slid the most since 2003 on its
forecast profits will shrink.


Read more at Bloomberg Stocks News

Buca Q2 comparable restaurant sales rise 3.7 pct

(Reuters) - Analysts on average were expecting revenue of $62.2
million, according to Reuters Estimates.





Read more at Reuters.com Market News

Cattle Futures Fall in Chicago as Slaughter Rates Slow; Hog Prices Rise

(Bloomberg) -- Cattle fell for the first time in
five sessions in Chicago as meatpackers slowed slaughter rates
after overpaying for animals last week in anticipation of rising
overseas demand. Hog futures rose.

Meatpackers such as Tyson Foods Inc. and Cargill Inc. killed
582,000 head of cattle last week, down 2.7 percent compared with
last year, after paying as much as $5 to $6 a head more than a
week earlier. Feedlots in Nebraska, the biggest cattle-raising
state, sold 94,740 animals to meatpackers last week, a 45 percent
increase from 65,203 head the week before, government data show.


Read more at Bloomberg Commodities News

S&P may cut ratings on $12.1 bln of subprime debt

(Reuters) - The move by S&P, a leading rater of corporate bonds, rattled global financial markets on fears the unfolding crisis stemming from risky home loans may have a wider impact on the economy and prompt investors to sell securities tied to so-called subprime debt.




S&P conceded that it failed to see the extent of losses when originally rating the debt, which include 612 residential mortgage securities. The agency said it is overhauling its methodology and reviewing its ratings of the $1 trillion market for debt structures known as collateralized debt obligations, or CDOs.


Read more at Reuters.com Bonds News

US STOCKS-Indexes slide on housing weakness worries

(Reuters) - NEW YORK, July 10 - U.S. stocks dropped on
Tuesday as trouble in the subprime mortgage market fueled
selling of financial sector shares and the housing slump took a
toll on companies' outlooks.




The market extended losses in afternoon trading as a speech
by Federal Reserve Chairman Ben Bernanke offered no news to
relieve the market's anxiety, analysts said.


Read more at Reuters.com Bonds News

GLOBAL MARKETS-Subprime worries hurt shares but lift bonds

(Reuters) - NEW YORK, July 10 - U.S. stocks fell on Tuesday
on a spate of profit warnings and as new trouble in the
subprime mortgage market fueled a sell-off in financial shares
but drove up Treasury prices in a flight to safety.




Standard & Poor's said on Tuesday it may cut its ratings on
$12.1 billion of subprime debt on expectations of further
declines in U.S. home prices and more defaults on home loans.


Read more at Reuters.com Bonds News

Home Depot sees bigger profit drop on housing woes

(Reuters) - ATLANTA, July 10 - Home Depot Inc. on Tuesday forecast a deeper profit drop for 2007, citing weakness in the U.S. housing market.



The home improvement industry leader said it expected per-share profit for the full year to fall 15 percent to 18 percent to a range of $2.30 to $2.36 per share. In May, Home Depot had said earnings per share would fall 9 percent this year.


Read more at Reuters.com Mergers News

Dollar Falls to Record Low Against Euro on Housing Woes, Subprime Concern

(Bloomberg) -- The dollar fell to a record against
the euro and dropped the most since March versus the yen on
speculation the housing market's slump will worsen.

The U.S. currency also sank against the Swiss franc, British
pound and Danish krone after Standard & Poor's warned it may cut
ratings on $12 billion of bonds backed by subprime mortgages,
diminishing the appeal of dollar-denominated assets. Futures
contracts show traders forecast the Federal Reserve will keep
borrowing costs on hold through year-end.


Read more at Bloomberg Currencies News

UPDATE 1-Israel's Voltaire files for $123.9 mln IPO

(Reuters) - In a filing with the U.S Securities and Exchange
Commission, the company said it will offer 5.8 million shares,
while selling shareholders will offer about 1.9 million, at an
expected price of between $12 and $14 per share.




Voltaire said it intends to use net proceeds to fund
research and development activities, repay a loan, acquire or
invest in complementary companies, products or technologies,
among others.


Read more at Reuters.com Bonds News

European stocks drop to one-week closing low

(Reuters) - European stocks tumbled from fresh 6-1/2 year highs to their lowest close in a week on Tuesday as profit warnings from U.S. heavyweights including retailer Sears Holdings spooked investors.

The pan-European FTSEurofirst 300 index closed unofficially down 1.1 percent at 1,608.3 points, its lowest close since July 2. It earlier reached 1,630.96, its highest level since November 2000.


Read more at Reuters Africa

Platinum Drops From Seven-Week High as South African Supply Concerns Fade;

(Bloomberg) -- Platinum fell from a seven-week high
in New York as supply concerns diminished in South Africa, which
produces about 80 percent of the metal. Palladium was little
changed.

Most platinum companies in South Africa started biennial
salary negotiations last month. The National Union of
Mineworkers yesterday said it would respond today to an offer by
Impala Platinum Holdings Ltd., the world's second-biggest
producer. Anglo Platinum Ltd. increased a pay offer to try to
avert a strike last month.


Read more at Bloomberg Commodities News

Pound Gains to 26-Year High Against Dollar, Gilts Surge on Subprime Woes

(Bloomberg) -- The pound rose to a 26-year high
against the dollar and U.K. bonds surged after Standard & Poor's
said it may cut ratings on $12 billion of bonds backed by U.S.
subprime mortgages.

The U.K. pound climbed the most against the dollar in more
than a month. The currency was buoyed earlier after a report
showed sales at U.K. retailers increased at the fastest pace
since March last month, stoking speculation the Bank of England
will raise interest rates from a six-year high.


Read more at Bloomberg Currencies News

Ivory Coast Cocoa Arrivals at Ports Decline 13 Percent, Exporters Say

(Bloomberg) -- Cocoa deliveries to Ivory Coast's
ports for shipment abroad have declined as much as 13 percent
since the start of the main harvesting season due to poor rains,
according to exporters with access to the information.

Arrivals at the ports of Abidjan and San Pedro from farms
in the country, a measure of production in the world's biggest
grower, were 1.12 million to 1.13 million metric tons from Oct.
1 to July 8, the exporters said today. They based their
estimates on figures provided by the state-run Bourse du Cafe et
du Cacao and their own data. They declined to be named because
the data are confidential.


Read more at Bloomberg Commodities News

Depomed nerve pain drug fails trial, shares plunge

(Reuters) - The Gabapentin GR medicine was tested against postherpetic neuralgia, or persistent pain caused by damage to nerves from the shingles, or herpes zoster, viral infection.




The primary goal of the Phase 3 trial, which enrolled 407 patients, was to reduce average daily pain scores. Patients daily received a total of 1800 milligrams of Gabapentin GR in one or two doses.


Read more at Reuters.com Hot Stocks News

US STOCKS-Wall St opens lower on profit warnings

(Reuters) - The Dow Jones industrial average was down 48.53
points, or 0.36 percent, at 13,601.44. The Standard & Poor's
500 Index was down 7.65 points, or 0.50 percent, at
1,524.20. The Nasdaq Composite Index was down 14.65
points, or 0.55 percent, at 2,655.37.




Read more at Reuters.com Bonds News

U.K. Pound Rises to 26-Year High on Interest Rates, Retail Sales Report

(Bloomberg) -- The pound rose to a 26-year high
against the dollar after a report showed sales at U.K. retailers
increased at the fastest pace since March last month.

The U.K. currency gained for a second day on speculation
signs of continued growth in consumer spending will prompt the
Bank of England to keep raising interest rates. The pound was
also buoyed by data showing the country's trade deficit
unexpectedly narrowed in May.


Read more at Bloomberg Currencies News

Noven to buy JDS Pharma for $125 mln

(Reuters) - It also said it would assume $10 million in net JDS liabilities.




Noven said it sees an annual sales opportunity from JDS products -- which include drugs for bipolar disorder, depression and panic disorder -- of more than $500 million starting in 2012, assuming development and regulatory approval on current schedules.


Read more at Reuters.com Mergers News

WRAPUP 1-US wholesale inventories up, retail sales weaken

(Reuters) - At the same time, separate data showed weak retail sales as
consumers cut back on spending amid higher gasoline prices and
continued troubles in the housing market.




The value of inventories rose to $396.66 billion after a
0.3 percent gain in April, the Commerce Department said.


Read more at Reuters.com Economic News

Warburg gets antitrust OK for Bausch & Lomb

(Reuters) - Antitrust authorities completed their review of the deal without taking any action to block it, the U.S. Federal Trade Commission said in a notice.



Warburg Pincus has offered $65 per share in cash for Bausch & Lomb, an offer which was followed by a takeover offer of $75 per share from rival Advanced Medical Optics Inc .


Read more at Reuters.com Government Filings News

US STOCKS-Futures drop on earnings warnings

(Reuters) - NEW YORK, July 10 - U.S. stock futures fell on
Tuesday after retailer Sears Holdings Corp. and home
builder D.R. Horton Inc issued earnings warnings as the
housing slump took its toll, raising concern about the
quarter's profit outlook.




Home Depot Inc. , the largest U.S. home improvement
chain, was the first on Tuesday to rattle the market with a
warning, but its shares later rose on a plan to buy back about
12 percent of its stock.


Read more at Reuters.com Bonds News

Gold May Rise in New York on U.S. Interest-Rate Speculation; Silver Gains

(Bloomberg) -- Gold, little changed in New York, may
rise on speculation U.S. interest rates will remain unchanged
this year, weakening the dollar and boosting the appeal of the
precious metal as an alternative investment. Silver gained.

Gold generally moves in the opposite direction of the U.S.
dollar, which today traded less than 1 cent away from its record
low against the euro. Gold is up 3.8 percent this year while the
euro has climbed 3.5 percent against the dollar.


Read more at Bloomberg Commodities News

UPDATE 1-Allianz cool to market talk of Dresdner sale

(Reuters) - Asked about recent speculation that Allianz might divest
Dresdner, he said management had won investor confidence to
pursue its strategy with Dresdner.




In the past, the insurer was criticised for buying the bank
which quickly racked up billions in losses that Allianz has
struggled to put right.


Read more at Reuters.com Mergers News

U.S. Stock-Index Futures Fall; Home Depot, Sears Holdings Shares Decline

(Bloomberg) -- U.S. stock-index futures retreated
on concern the housing slump will hurt earnings after Home Depot
Inc. and Sears Holdings Corp. said their profits will fall.

Home Depot, the world's largest home-improvement retailer,
dropped after cutting its full-year forecast. Sears, the biggest
U.S. department-store company, plunged after forecasting
earnings below analysts' estimates due to declining sales.


Read more at Bloomberg Stocks News

D.R. Horton says qtly orders fall, sees loss

(Reuters) - NEW YORK, July 10 - D.R. Horton Inc., the largest U.S. home builder, on Tuesday said orders for new homes fell 40 percent last quarter, and said it would write down assets leading to a loss in its third quarter.



Hurt by the deteriorating U.S. housing market, Horton said its net sales orders in the fiscal third quarter, which ended June 30, fell to 8,559 homes from 14,316 homes a year earlier, and the dollar value of the orders dropped 47 percent to $2.0 billion from $3.8 billion.


Read more at Reuters.com Bonds News

Carlo Tassara has over 2 percent of Vinci

(Reuters) - Vinci said in May that Carlo Tassara had at least one
percent of its shares but that it had no information on the
Italian group's intentions.




Read more at Reuters.com Mergers News

Gold Climbs for 3rd Day as Dollar Declines Against the Euro; Silver Rises

(Bloomberg) -- Gold gained for a third consecutive
trading session in London on speculation the dollar's decline
against the euro will increase demand for the precious metal as
an alternative investment. Silver gained.

Bullion, priced in dollars, has risen 3.9 percent this year
while the dollar fell 3.3 percent against the euro. Investors
should buy gold as large speculators may start to build their
holdings, sending prices higher in the next month, UBS AG
London-based analyst John Reade said in an e-mailed report.


Read more at Bloomberg Commodities News

Burundi cuts duties to safeguard fuel imports

(Reuters) - Burundi's government halved customs duties on imports of oil products on Tuesday, a day after importers warned they would stop supplying the central African country with fuel if local prices were not raised.

"The government has reduced custom duties on imported oil to 10 percent from 20 percent to minimise the impact of the oil crisis on consumers, but also to encourage oil companies to import fuel normally," Trade Minister Donatien Nijimbere said.


Read more at Reuters Africa

Dubai Dhow Captains Defy U.S. Sanctions, Pirates With Shipments to Iran

(Bloomberg) -- Sailors with skin baked to leather by
the Persian Gulf sun stack Hewlett-Packard Co. laser-jet printers
alongside a 40-foot wooden dhow in Dubai Creek as Ali Reza, an
Iranian merchant, watches them sweat.

From his base in Dubai, the second-biggest member of the
United Arab Emirates, Reza ships General Electric Corp.
refrigerators and other American-branded products to Iran, even
though re-exporting them is banned under U.S. sanctions. Within
days, the printers will be snapped up by buyers in Iran.


Read more at Bloomberg Emerging Markets News

South African metal workers continue strike

(Reuters) - A pay strike by some 260,000 workers that has paralysed about 9,000 small South African metal and engineering firms entered its second day on Tuesday, but employers and unions resumed talks to end the standoff.

Dirk Hermann, deputy General Secretary of Solidarity trade union said employers' organisations had met the unions and he was optimistic that an improved offer could be made soon.


Read more at Reuters Africa

Dollar Little Changed Against Euro Before Bernanke Speaks on Inflation

(Bloomberg) -- The dollar was little changed against
the euro before Federal Reserve Chairman Ben S. Bernanke speaks
on inflation today.

The dollar gained versus Europe's single currency earlier on
speculation Bernanke will reiterate inflation remains the Fed's
``predominant'' concern. The dollar has traded near a record low
against the euro on views that the European Central Bank will
raise borrowing costs again, while the Fed stays on hold.


Read more at Bloomberg Currencies News

Corn Extends Drop on Speculation Wet, Cool Weather May Benefit U.S. Crop

(Bloomberg) -- Corn futures in Chicago extended
declines on speculation that cool, wet weather will boost the
U.S. crop, planted on the most acres since 1944. Soybean futures
also fell, while wheat futures gained.

The six to 10-day outlook from the National Weather Service
showed below-normal temperatures and above-normal precipitation
in most parts of the U.S. Midwest, according to yesterday's
forecast. The cooler weather helps the corn crop to pollinate.


Read more at Bloomberg Commodities News

Home Depot cuts 2007 earnings outlook, cites housing

(Reuters) - The company earned $2.79 per share in fiscal 2006.




Home Depot said it expected 2007 total retail sales to decline by 1 percent to 2 percent, and same-store sales to decline by mid-single digits.


Read more at Reuters.com Business News

Thai Baht Climbs to Near 10-Year High, Singapore Dollar at Eight-Week High

(Bloomberg) -- Thailand's baht had the biggest gain
in more than five months to the strongest in almost a decade on
speculation exporters accelerated buying of the currency after it
rose beyond 34 to the dollar.

Foreign purchases of Thai stocks have pushed the currency to
the highest since the Asian financial crisis, eroding overseas
earnings of the nation's food producers and manufacturers. 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 in July.


Read more at Bloomberg Currencies News

Dutch Supreme Court to rule on ABN's LaSalle

(Reuters) - The court ruled that ABN would have to seek shareholder approval for the LaSalle sale, which could sway the acrimonious takeover battle for ABN between Barclays against a consortium led by Royal Bank of Scotland.




Two weeks ago, Advocate General Vino Timmerman, tasked with providing Supreme Court judges with an opinion ahead of their ruling, said that ABN did not need shareholder approval for the LaSalle sale.


Read more at Reuters.com Mergers News

Corporate Bond Risk Rises in Europe, Credit-Default Swaps Index Shows

(Bloomberg) -- The risk of owning European
corporate bonds rose, according to traders of credit-default
swaps.

Contracts based on 10 million euros ($13 million) of debt
included in the iTraxx Crossover Series 7 Index of 50 European
companies increased 4,000 euros to 250,500 euros at 8:06 a.m. in
London, according to JPMorgan Chase & Co.


Read more at Bloomberg Bonds News

UPDATE 1-Ryanair to sue European Commission over state aid

(Reuters) - Ryanair , Europe's biggest low cost airline, said it
submitted complaints involving Air France , Lufthansa
, Alitalia and Olympic Airways [OLY.UL] to
the Commission over a year ago.




"These complaints involved hundreds of millions of euro in
illegal state aids being granted by the French, German, Italian
and Greek governments to subsidise their flag carrier airlines,"
the company said in a statement.


Read more at Reuters.com Government Filings News