Tuesday, July 24, 2007

Web business strategy focus of Microsoft meeting

(Reuters) - Microsoft's top executives plan to update investors about every facet of the $50 billion software maker's business, from its bread-and-butter Windows and Office franchises to its Xbox game console unit, at its annual analyst meeting on Thursday.




But the company's smallest business division -- online services -- may garner the most attention, because it poses both the greatest opportunity for growth and the biggest risk of failure.


Read more at Reuters.com Market News

Targeted Genetics puts arthritis drug program on hold

(Reuters) - The drug, tgAAC94, was given directly to affected joints of
patients with inflammatory arthritis.





Read more at Reuters.com Government Filings News

UPDATE 1-Fidelity National Information quarterly profit rises

(Reuters) - The Jacksonville, Florida-based company reported net
earnings of $148 million, or 75 cents a share, compared with
$66 million, or 34 cents a share, in the year-ago period.




Results for the latest second quarter included a gain of
$58 million, or 29 cents a share, on the sale of Covansys
Corp.'s common stock.


Read more at Reuters.com Bonds News

UPDATE 1-Franklin says to vote against TXU buyout offer

(Reuters) - "The investment management subsidiaries
believe the offer price of $69.25 is significantly below TXU's
current actual value," Franklin said in a filing to the U.S.
Securities and Exchange Commission.




"Furthermore, the investment management subsidiaries
believe that had the KKR buyout offer not been undertaken, the
performance of TXU common stock from the announcement date of
the KKR buyout offer to today would have been in excess of the
actual level of performance realized by shareholders," it
said.


Read more at Reuters.com Mergers News

UPDATE 1-Vertex 2nd-quarter loss wider than expected

(Reuters) - The Cambridge, Massachusetts-based biotechnology company
posted a net loss of $117.8 million, or 91 cents per share,
compared with a loss of $77.7 million, or 72 cents per share, a
year ago.




Excluding items, Vertex lost 74 cents per share, 5 cents
more than analysts' average expectations, according to Reuters
Estimates.


Read more at Reuters.com Market News

Brazil Stocks Drop on Concern U.S. Growth Will Slow: World's Biggest Mover

(Bloomberg) -- Brazilian stocks fell the most in
almost five months as investors shed riskier emerging market assets
on concern that rising home loan losses in the U.S. will slow
growth.

The Bovespa Index of the most-traded stocks on the Sao Paulo
exchange fell 2,242.20, or 3.9 percent, to 55,794.57, the most
since Feb. 27 and the biggest move among markets included in global
benchmarks. Mexico's Bolsa fell 706.28, or 2.2 percent, to
31,462.15.


Read more at Bloomberg Stocks News

CORRECTED - Chile wood pulp exports hit record 1st half high

(Reuters) - It said the export figure for the six months from January
through June was 93.7 percent higher than in the same period a
year earlier, as prices soared and Chilean output grew.




"Wood pulp prices have beaten all market expectations ..."
BCI Investments said in the report, adding that a predicted
stabilization in prices in July had failed to materialize.


Read more at Reuters.com Market News

UPDATE 1-Ace second-quarter earnings rise 13 pct

(Reuters) - Net earnings were $649 million or $1.93 a share, up from
$573 million, or $1.72 a share, in the year-earlier quarter.




Ace said operating earnings, which analysts use to measure
performance because it excludes investments, totaled $664
million or $1.98 a share.


Read more at Reuters.com Market News

TREASURIES-Benchmark yields hit 7-week lows on stocks

(Reuters) - However, a lack of liquidity and perceptions that
Treasuries were at expensive levels limited safe-haven flows
from the equity market, analysts said. Shares on Wall Street
tumbled after poor profits from companies related to the
housing market spooked investors. For details, see [.N].




"We are getting a little bit of it, but not much. The
liquidity in both bonds and stock markets is less than
desirable," said Carley Garner, an analyst at Alaron Trading
in Chicago.


Read more at Reuters.com Bonds News

UPDATE 1-Rohm & Haas 2nd-quarter profit falls

(Reuters) - The Philadelphia-based company said second quarter profit
fell to $160 million, or 74 cents a share, from a year-ago
profit of $166 million, or 75 cents a share.




Excluding items, the company said it earned 78 cents a
share from continuing operations. Analysts, on average, had
forecast earnings of 76 cents a share, according to Reuters
Estimates.


Read more at Reuters.com Market News

Franklin says to vote against TXU buyout offer

(Reuters) - "The investment management subsidiaries
believe the offer price of $69.25 is significantly below TXU's
current actual value," Franklin said in a filing to the
Securities and Exchange Commission.




"Furthermore, the investment management subsidiaries
believe that had the KKR buyout offer not been undertaken, the
performance of TXU common stock from the announcement date of
the KKR buyout offer to today would have been in excess of the
actual level of performance realized by shareholders," it
said.


Read more at Reuters.com Mergers News

UPDATE 2-Centene Q2 earnings in-line, trims '07 profit view

(Reuters) - Shares of the company were trading up almost 9 percent at
$22.59 in afternoon trade on the New York Stock Exchange.




The company had said in March its unit finalized a contract
award to provide managed care to participants in the Texas
foster care program, which was expected to add 3 cents to 4
cents a share to its fourth-quarter earnings.


Read more at Reuters.com Market News

UPDATE 1-Mexico's 28-day Cetes yield steady at 7.19 percent

(Reuters) - Longer-term Cetes yields were higher at the central bank's
weekly auction.




Mexican consumer prices rose 0.25 percent in the first half
of July, nudging 12-month inflation up to 4.08 percent, above
the upper limit of 4 percent the bank considers acceptable.


Read more at Reuters.com Bonds News

UPDATE 1-Endesa Chile 1st-half net profit drops 51 percent

(Reuters) - The company, which operates in Chile, Argentina, Colombia,
Brazil and Peru, said it made a profit of 62.123 billion pesos
in the six months through June, compared with
127.915 billion pesos in the same period a year earlier.




Endesa Chile shares traded at 768 pesos, down from Monday's
close of 780.60 pesos. The stock was still up 17.5 percent
year-to-date, but down from record highs in March of over 850
pesos a share.


Read more at Reuters.com Market News

UPDATE 2-Argentine stocks, bonds fall in dollar chase

(Reuters) - BUENOS AIRES, July 24 - An unusual drop in
Argentina's currency triggered a sell-off in both bonds and
stocks on Tuesday as investors liquidated assets and rushed to
buy dollars before the peso -- at its weakest level in more
than four years -- declined further.




With agricultural exports booming and flooding the country
with greenbacks, it's usually dollars chasing pesos in
Argentina and the Central Bank purchases dollars most days to
keep the local currency from appreciating.


Read more at Reuters.com Bonds News

Cerberus gets EC clearance for Focus DIY deal

(Reuters) - Focus, which stocks bathroom and kitchen appliances, garden
furniture and power tools, had mandated Rothschild to sell the
company earlier this year after failing to reach a debt
restructuring agreement with its debtors.




The company struggled to pay the interest on its debt amid
strong competition, rising interest rates and a slowdown in the
DIY market.


Read more at Reuters.com Bonds News

S.African power utility agrees pay deal with union

(Reuters) - South Africa's state electricity utility Eskom has struck an 8 percent wage deal with Solidarity trade union, the union said on Tuesday.

Solidarity said workers would get an average 8 percent increase this year with a rise of at least 7 percent guaranteed, plus a guaranteed 8 percent minimum increase next year.


Read more at Reuters Africa

FED FOCUS-Slower productivity may be risk to growth

(Reuters) - Lower productivity growth, if permanent, is worrisome for
policy-makers as it could fan inflation through higher wage
costs, potentially prompting a tightening of credit and making
it harder to foster growth.




Fed Chairman Ben Bernanke told Congress last week that the
slowdown in productivity growth in recent quarters is likely
temporary, but that the underlying pace of productivity gains
may also have "slowed somewhat."


Read more at Reuters.com Bonds News

UPDATE 1-Argentine stocks, bonds fall in dollar chase

(Reuters) - Falling stock prices around the region, and on Wall Street,
also pushed down local shares, traders said.




"To give you an idea of the market, the proportion is 10
dollar buys for every dollar sale, and on top of that there
aren't any dollars available," said a foreign exchange trader.


Read more at Reuters.com Bonds News

UPDATE 1-Toromont profit jumps 53 percent on land sale

(Reuters) - The company, which supplies Caterpillar heavy
equipment and specialty equipment, said it earned C$38.1
million , or 59 Canadian cents a share, in the
quarter ended June 30.




That compares with net earnings of C$24.9 million, or 39
Canadian cents per share, in the same period last year.


Read more at Reuters.com Market News

Canadian Stocks Fall a Third Day on Railroad Profits, Crude Oil Prices

(Bloomberg) -- Canadian stocks fell the most in more
than a month after Canadian Pacific Railway Ltd. followed rival
Canadian National Railway Co. in reporting a drop in profit.

Crude oil and natural-gas prices slid, dragging down energy
companies including EnCana Corp., and stoking speculation that such
gas-producing energy royalty trusts as Advantage Energy Income Fund
may cut their dividends.


Read more at Bloomberg Stocks News

Copper Falls, Erasing Earlier Gains, as Monthlong Rally Seen as Overdone

(Bloomberg) -- Copper dropped in New York, erasing
earlier gains, on speculation a rally that increased prices
7 percent in the past month was overdone.

The metal, which gained in recent weeks on strikes in Latin
America, rose 28 percent this year on concern demand would
outpace supply. BHP Billiton Ltd., the world's biggest miner,
said today its copper production jumped 17 percent in the three
months ended June 30. Marius Kloppers, the incoming chief
executive, said he wants to raise metal output 10 percent a year.


Read more at Bloomberg Commodities News

McDonald's CEO says reviewing capital structure

(Reuters) - He added that any decision about changes to the capital structure would likely be made this fall.







Read more at Reuters.com Business News

LaBranche posts wider 2nd-qtr loss, shares fall

(Reuters) - Its net loss for the second quarter was $368.9 million, or $6 a share, compared with a loss of $22.4 million, or 37 cents per share, a year earlier.




Excluding a pre-tax loss of $54.6 million due to the lower value of its NYSE Euronext shares and non-cash charges, the company earned $6.6 million, or 11 cents per share, compared with a loss of $5.3 million, or 9 cents a share, on the same basis in the year-ago quarter. The latest quarter's results also include a tax benefit of $5.1 million.


Read more at Reuters.com Hot Stocks News

ETF Plans to Introduce Six Crude-Oil Exchange-Traded Securities in London

(Bloomberg) -- ETF Securities Ltd., a London-based
money manager, plans to introduce six securities that allow
investors to bet on changes in crude-oil prices further in the
future.

The securities, called exchange-traded commodities, will
track West Texas Intermediate and Brent futures contracts, the
benchmarks for the crude-oil markets, based on delivery dates
between one and three years ahead, ETF Securities said in an e-
mailed statement today.


Read more at Bloomberg Energy News

TCF Financial second-quarter profit falls

(Reuters) - Analysts on average were expecting the company to record a
quarterly profit of 47 cents a share, before items, according
to Reuters Estimates.





Read more at Reuters.com Market News

UPDATE 1-Peabody Energy second-quarter earnings fall

(Reuters) - Profit fell to $107.7 million, or 40 cents a share, from a
year-ago profit of $153.4 million, or 57 cents.




Analysts on average were expecting earnings of 48 cents per
share, according to Reuters Estimates.


Read more at Reuters.com Market News

Lilly beats forecasts, raises '07 view

(Reuters) - Lilly posted strong revenue gains from Cymbalta and Zyprexa for schizophrenia, which rose 67 percent and 9 percent, respectively, and helped the company beat revenue expectations by about $250 million.




"Together these two products accounted for almost two thirds of the revenue beat," JPMorgan analyst Roberto Cuca wrote in a research note. "This should boost sentiment among those investors who had been concerned about the health of Lilly's franchise."


Read more at Reuters.com Market News

Paccar net falls on new clean-air rules

(Reuters) - CHICAGO, July 24 - Paccar Inc. , the No. 2 U.S. maker of heavy trucks, said on Tuesday second-quarter net income tumbled 19 percent as new U.S. clean-air rules hurt truck sales in North America. The Bellevue, Washington-based company said it earned $298.3 million, or $1.19 a share, down from $369.9 million, or $1.47 a share, a year earlier.



Analysts, on average, expected earnings of $1.11 a share, according to Reuters Estimates.


Read more at Reuters.com Market News

Egyptian shares up, CIB rises again on merger talk

(Reuters) - Main Egyptian stock indexes rose on Tuesday, with shares in Commercial International Bank (CIB) climbing on continued market speculation it would buy Arab-African International Bank, traders said.

Shares in CIB, one of Egypt's top private banks, rose 3 percent to close at 72.99 pounds a share.


Read more at Reuters Africa

TREASURIES-Bonds up as housing worries return

(Reuters) - Treasuries derived support from a fresh slide in U.S. stock
index futures on disappointing profits. Chemical maker DuPont
Co. . was among them but building materials maker USG
Corp gave the Wall Street losses a fresh housing
angle.




Financial markets have been watchful for any new housing
worries, particularly from the troubled market for risky
subprime mortgages, which last week sparked the biggest rally
in benchmark bonds since March.


Read more at Reuters.com Bonds News

Western Union eyes micro-lending

(Reuters) - "We think it is a big opportunity for us. For us, the real
question will be the risk and the ability to ramp this up
around the globe," Gold said.




Micro-lending, a system of making small loans to people
running tiny businesses, was pioneered by Muhammad Yunus in the
1970s in Bangladesh and has spread globally. Yunus won a Nobel
Peace Prize in 2006.


Read more at Reuters.com Bonds News

Barr challenges patent on Schering's brain-cancer drug

(Reuters) - Barr said it was the first to file an application, containing a paragraph IV certification, to sell a generic version of the drug.



On July 20, Schering and the patent owner, Cancer Research Technology, had filed a suit in a U.S. federal court to prevent Barr from proceeding with the commercialization of its product.


Read more at Reuters.com Government Filings News

BSkyB, Virgin Media case not in court until 2008

(Reuters) - Virgin Media, which was created earlier this year after the
merger of NTL, Telewest and Virgin's mobile phone division, said
on July 2 it had received a bid approach from an unnamed group.




On Monday, Virgin Media asked suitors to submit expressions
of interest by the first week of August to kick off an auction
of the company, people familiar with the situation said.


Read more at Reuters.com Mergers News

PepsiCo profit up, raises outlook

(Reuters) - Analysts on average were expecting 89 cents per share, according to Reuters Estimates.




Quarterly revenue rose to $9.61 billion from $8.71 billion.


Read more at Reuters.com Market News

UPDATE 2-Omnicom quarterly profit up 13 pct

(Reuters) - Omnicom, home to advertising agencies such as BBDO
Worldwide and DDB Worldwide, said second-quarter profit
increased to $276.7 million, or 84 cents a share, from $244.1
million, or 71 cents a share, a year earlier.




Revenue rose 10.7 percent to $3.13 billion, topping the
average analysts' forecast of $3.08 billion, according to
Reuters Estimates.


Read more at Reuters.com Market News

Wyeth's Pristiq hit by FDA heart, liver concerns

(Reuters) - NEW YORK, July 24 - Wyeth on Tuesday said U.S. regulators are unwilling to approve its experimental drug Pristiq for hot flashes until the company resolves concerns about its potential to cause serious heart and liver problems.



Wyeth said the FDA has requested a new trial for the drug that could take a year or longer to complete, in order to better demonstrate the drug's safety in post-menopausal women.


Read more at Reuters.com Market News

Canadian Pacific Railway second-qtr profit falls

(Reuters) - CP Rail, which revealed last week that Brookfield Asset Management had approached it with a bid proposal, earned C$257.7 million , or C$1.64 a share, down from a profit of C$378.1 million, or C$2.37 a share, a year earlier.



Second-quarter results for the 2007 period were restated for accounting rule changes.


Read more at Reuters.com Bonds News

Fed's Mishkin speaks at closed event in Frankfurt

(Reuters) - A Fed spokesperson in Washington said no text of Mishkin's
remarks will be made public.




Read more at Reuters.com Bonds News

Netflix, OceanFreight, SanDisk, Ultra Clean, Varian: 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. Share prices are as of 7:30 a.m. in New York.

Atheros Communications {ATHR US) fell $1.86, or 5.8 percent,
to $30.25 in trading after the official close of U.S. exchanges.
Chief Financial Officer Jack Lazar said during a conference call
that the maker of computer networking gear expects a decline in
third-quarter revenue from the PC segment, which had record sales
in the second-quarter.


Read more at Bloomberg Stocks News

Waddell & Reed posts quarterly profit

(Reuters) - Analysts had expected profit of 37 cents a share, before
items, according to Reuters Estimates.




In the year-ago quarter, two one-time charges -- one for a
regulatory settlement and the other to pay costs at one of its
subsidiaries, led to the loss.



Read more at Reuters.com Market News

UPDATE 1-Pentair reports lower second-quarter results

(Reuters) - The company, which also makes industrial fluid-handling and
heat-exchange systems, reported net income of $62.1 million, or
62 cents per share, compared with $68.6 million, or 67 cents
per diluted share, a year earlier.




Analysts on average expected the company to post earnings
of 58 cents per share, according to Reuters Estimates.


Read more at Reuters.com Market News

Legg Mason profit climbs 22 percent

(Reuters) - Wall Street analysts had expected earnings of $1.24.




Revenue climbed 16 percent to a record $1.21 billion, as assets under management also climbed 16 percent to $992 billion.


Read more at Reuters.com Market News

BHP Billiton Annual Production of Copper, Nickel, Iron Ore Rises to Record

(Bloomberg) -- BHP Billiton Ltd., the world's
biggest mining company, posted record annual production of
copper, iron ore and nickel, fueling what will be its largest
yearly profit.

Output of copper, the metal that contributes the most to
earnings, climbed 17 percent in the three months ended June 30
from a year ago, Melbourne-based BHP said in a statement. Nickel
production gained 15 percent and iron ore advanced 6 percent.


Read more at Bloomberg Commodities News

Swaption Volatility May Fall as Subprime Fears Ease, RBS Greenwich Says

(Bloomberg) -- Volatility on options for interest-
rate swaps may decline as concern eases that losses in subprime
mortgage loans and other risky debt will spread, according to
RBS Greenwich Capital.

Investors holding mortgage securities often use so-called
swaptions to hedge the adverse moves in interest rates. A swap
in an agreement to exchange fixed for variable-rate payments
over a period of time. Falling rates can trigger increased
mortgage refinancing, cutting returns for bondholders.


Read more at Bloomberg Currencies News

German, Dutch Next-Day Power Decline on Cooler Weather, Wind Production

(Bloomberg) -- German and Dutch day-ahead
electricity fell as forecasts showed temperatures will be below
average tomorrow and production from wind turbines will remain
higher than normal. Next-year power prices also declined,
tracking lower emissions costs.

Electricity for tomorrow in Germany, Europe's biggest power
market, dropped 16 percent to 27 euros ($37.30) a megawatt-hour
at 11:24 a.m. Berlin time, according to broker Spectron Group
Plc. The corresponding price in the Netherlands declined 13
percent to 29.50 euros a megawatt-hour.


Read more at Bloomberg Energy News

U.S. Momentive in chemical JV with China's Xinan

(Reuters) - Siloxane can be found in products such as cosmetics and
soaps.




The joint venture will be located in the southeastern
province of Zhejiang, the statement said, adding that more
details of the deal would be disclosed at a press conference
scheduled for next Tuesday in Shanghai.


Read more at Reuters.com Mergers News

European Stocks Decline, Paced by Next, Sports Direct on U.K. Floods

(Bloomberg) -- European stocks fell, paced by U.K.
retailers Next Plc and Kingfisher Plc as floods devastated parts
of central England.

Sports Direct International Plc tumbled 19 percent after the
U.K.'s biggest sporting-goods retailer said it expects the floods to
weigh on earnings. ARM Holdings Plc and Infineon Technologies AG led
chipmakers lower after Texas Instruments Inc. of the U.S. reported a
drop in profit and revenue that missed analysts' estimates.


Read more at Bloomberg Stocks News

BOJ to survey money market, aims to boost activity

(Reuters) - The BOJ launched a half-year project earlier this year,
aiming to activate Japan's long-dormant money markets, as
activity began to pick up slowly after the central bank raised
interest rates for the first time in six years in July 2006.




"Tokyo money markets are starting to move at an accelerated
speed," BOJ Governor Toshihiko Fukui said in a speech at a forum
on Tuesday.


Read more at Reuters.com Bonds News

U.K. FTSE 100 Index Retreats, Paced by Kingfisher; Johnson Matthey Falls

(Bloomberg) -- U.K. stocks declined, led by
retailers after Sports Direct International Plc said it expects
flooding and higher interest rates to hurt earnings this year.
Kingfisher Plc and Home Retail Group Plc led the drop in the FTSE
100.

Johnson Matthey Plc fell after the company reported first-
quarter earnings. Friends Provident Plc slid after Societe
Generale lowered its recommendation on the shares. Yell Group Plc
paced advancing shares.


Read more at Bloomberg Stocks News

CORRECTED - CORRECTED-JGB futures slip from 6-week high ahead of auction

(Reuters) - TOKYO, July 24 - Japanese government bond futures
slipped after edging up to a six-week high on Tuesday, hurt by a
slight gain in Tokyo shares and dealers selling longer-dated
paper to prepare for a 20-year auction later in the week.




Activity was subdued as many market players kept to the
sidelines, looking to see whether lingering worries about
problems in the U.S. subprime mortgage sector keep pushing
credit spreads wider and give Treasuries a boost.


Read more at Reuters.com Bonds News

Crude Oil Falls a Third Day on Expectations of Higher U.S. Gasoline Output

(Bloomberg) -- Crude oil fell for a third day in New
York on signs U.S. refiners are increasing motor fuel output
and speculation OPEC may pump more oil to meet year-end demand.

A government report tomorrow may show U.S. refineries
raised operating rates to a 10-month high, according to a survey
of analysts. Gasoline dropped 2.8 percent yesterday. The
Organization of Petroleum Exporting Countries may increase
output this year if needed, Reuters cited group President
Mohamed al-Hamli as saying July 22.


Read more at Bloomberg Energy News

Shanghai Copper Prices Decline as Advance to 10-Week High Seen Overdone

(Bloomberg) -- Copper prices in Shanghai fell for
the first day in five amid concern that gains in the past week
may be overdone and deter further buying during the traditionally
slow summer demand period.

Copper, used in wires and pipes, had risen 9 percent in the
four days before today, taking the most-active Shanghai futures
contract to the highest in 10 weeks amid speculation that supply
may lag behind demand driven by China's economic growth.


Read more at Bloomberg Commodities News