Electrolux Q2 core profit in line with forecast

(Reuters) - Electrolux -- whose brands include AEG, Zanussi and
Frigidaire and increasingly its own name -- stood by its
forecast of "somewhat" higher operating earnings for the full
year, excluding one-off items.




It also repeated that higher raw material costs would dent
earnings this year while demand for home appliances would grow
in Europe compared to 2006, but decline in North America.


Read more at Reuters.com Market News

Goldman, JPMorgan Get Stuck With LBO Debt They Can't Offload to Investors

(Bloomberg) -- Goldman Sachs Group Inc., JPMorgan
Chase & Co. and the rest of Wall Street are stuck with at least
$11 billion of loans and bonds they can't readily sell.

The banks have had to dig into their own pockets to finance
parts of at least five leveraged buyouts over the past month
because of the worst bear market in high-yield debt in more than
two years, data compiled by Bloomberg show.


Read more at Bloomberg Bonds News

UPDATE 1-Novartis cuts outlook, Q2 profit up 18 pct

(Reuters) - Novartis said it now expected mid-single-digit growth in
group net sales and low-single-digit growth in drug sales,
slightly lower than its previous outlook.




Net profit at Novartis from continuing operations rose 18
percent to $1.94 billion in the second quarter due to strong
sales of top-selling drugs Diovan and Glivec and in line with
analysts' forecasts.


Read more at Reuters.com Mergers News

Dollar under pressure, Asian shares struggle

(Reuters) - Crude oil nudged higher, shrugging off gasoline's more than 4 percent slump a day ago, and gold rebounded with dealers expecting a weaker U.S. currency to spur buying.




Optimism about earnings at multinational companies pushed the Dow Jones industrial average to nearly 14,000 but the broader U.S. market fell on Monday, hit by fresh worries about troubles in the subprime mortgage sector .


Read more at Reuters.com Hot Stocks News

American Standard, IPC, Nautilus, Salesforce.com: 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.

American Standard Cos. (ASD US) gained $1.30, or 2.1
percent, to $62.50 in trading yesterday after the official close
of U.S. exchanges. The toilet maker was recommended by CNBC
``Mad Money'' host Jim Cramer, who said it will benefit from
breaking up its businesses.


Read more at Bloomberg Stocks News

Thailand's Baht Falls on Speculation Central Bank to Curb Currency Gains

(Bloomberg) -- Thailand's baht fell, snapping a 13-
day gain that took the currency to the highest in almost a
decade, on speculation the central bank will intervene and
impose new limits to curb gains.

The baht onshore gained 3.4 percent this month, the best-
performer of the 10 most active currencies in Asia. Central bank
Governor Tarisa Watanagase yesterday said the bank will in ``one
to two days'' propose a package of measures, including those to
curb currency fluctuations, to the Finance Ministry.


Read more at Bloomberg Currencies News

China's Economy Probably Grew at Fastest Pace in Three Quarters on Exports

(Bloomberg) -- China's economy probably expanded at
near the fastest pace in three quarters, fueled by booming
exports that exacerbated tensions with the U.S. and Europe.

Gross domestic product grew 11 percent in the second
quarter from a year earlier following an 11.1 percent gain in
the three months to March 31, according to the median forecast
of 23 economists surveyed by Bloomberg News. The government will
release the figure on July 19 in Beijing.


Read more at Bloomberg Emerging Markets News

Singapore Stocks Climb to a Record; Labroy, Keppel Advance on Oil Price

(Bloomberg) -- Singapore's stocks rose, leaving the
Straits Times Index set for a record. Labroy Marine Ltd., a
builder of ships and oil rigs, paced gains after it won
contracts and crude prices reached an 11-month high.

The Straits Times added 9.07, or 0.3 percent, to 3662.30 as
of 9:16 a.m. local time, after sliding less than 0.1 percent
yesterday from a high. Almost four stocks climbed for each one
that fell among the measure's 49 members. The July futures
contract was little changed.


Read more at Bloomberg Stocks News

Australian Stocks Climb, Led by Paladin Resources on Takeover Speculation

(Bloomberg) -- Australian stocks rose, led by Paladin
Resources Ltd. after the Australian Financial Review reported the
uranium explorer may be the subject of a takeover bid from
Canadian rival Cameco Corp.

The S&P/ASX 200 Index added 7.40, or 0.1 percent, to 6388.30
as at 10:34 a.m. in Sydney. About the same number of shares rose
and fell.


Read more at Bloomberg Stocks News

Nikkei seen lower on Chicago futures, TEPCO in focus

(Reuters) - Japanese markets were closed on Monday for the Marine Day national holiday.




"The market is likely to start a little lower and hover around there after Chicago futures ended lower and New York stocks were mixed, and there are no major domestic buy factors," said Yutaka Miura, deputy manager of the equity information department at Shinko Securities.


Read more at Reuters.com Hot Stocks News

New Zealand's Dollar Advances to 22-Year High on Outlook for Higher Rates

(Bloomberg) -- New Zealand's dollar rose to a 22-
year high amid expectations central bank Governor Alan Bollard
will raise interest rates from a record high next week, stoking
demand for the currency.

The chance of a rate increase rose to 71 percent from 44
percent yesterday, according to a Credit Suisse index after a
report showed inflation accelerated more than the central bank
had forecast. Bollard may raise the rate to 8.25 percent, 7.75
percentage points higher than Japan's benchmark and 3 points
more than the Federal Reserve target lending rate.


Read more at Bloomberg Currencies News

ACA Shares Have Biggest Drop Since Going Public on Subprime Debt Holdings

(Bloomberg) -- ACA Capital Holdings Inc. shares had
the biggest drop since the seller of credit derivatives went
public in November, after the company disclosed that it could
lose money on contracts tied to $4.5 billion of subprime
mortgage securities from 2006 and 2007.

The shares fell $1.87, or 22 percent, to $6.59 in New York
Stock Exchange composite trading, taking the stock's drop to 33
percent since July 12, when New York-based ACA disclosed the
information on its Web site.


Read more at Bloomberg Bonds News

Third Avenue to vote against Abitibi-Bowater deal

(Reuters) - TORONTO, July 16 - Investment firm Third Avenue Management LLC, the largest shareholder of Abitibi-Consolidated Inc. , said on Monday it plans to vote against the Canadian paper company's proposed merger with Bowater Inc. at a special shareholder meeting on July 26.



Third Avenue, founded by prominent investor Martin Whitman, said it is not seeking, and will not accept, the proxies of other Abitibi shareholders.


Read more at Reuters.com Mergers News

Sugar Futures Fall on Speculation That Global Supplies Will Outpace Demand

(Bloomberg) -- Sugar fell in New York on speculation
that rising output in Brazil and India will exacerbate a growing
surplus.

Production will exceed demand by as much as 9.1 million
metric tons in the year ending Sept. 30, the managing director of
the International Sugar Organization said July 9. Sugar has
fallen 39 percent in the past year, the biggest drop among
commodities in the Reuters/Jefferies CRB Index.


Read more at Bloomberg Commodities News

TREASURIES-Bonds gain on subprime turmoil, rate-cut hopes

(Reuters) - NEW YORK, July 16 - U.S. Treasury debt prices
rose on Monday on worries that the subprime mortgage turmoil
will spill over to the broader economy, and prompt the Federal
Reserve to trim interest rates.




The benchmark ABX index, used by investors to hedge
subprime mortgage risks, sank to a fresh intraday low. This led
investors skittish about securities backed by subprime loans,
which are made to homeowners with blemished credit histories,
to buy less-risky U.S. government bonds.


Read more at Reuters.com Bonds News

Answers to buy Lexico Publishing Group for $100 mln

(Reuters) - Answers said it now expects second-quarter revenue of $2.75
million to $2.80 million, down from its previous view of $2.80
million to $3.2 million.





Read more at Reuters.com Mergers News

Alliance Bancorp seeks bankruptcy protection

(Reuters) - Formerly known as United Financial Mortgage Corp., Alliance
said it specialized in "Alt-A" home loans. Short for
"Alternative-A," these often go to borrowers who cannot provide
full documentation of income or assets, and are considered to
fall between "prime" and "subprime" in quality.




In a letter posted on Alliance's Web site, Chief Executive
Lisa Duehring said "the latest market was more than we were
able to overcome. We have exhausted our resources." She said
the company ceased operations on July 13.


Read more at Reuters.com Bonds News

Fannie Mae sells $1 billion 30-year debt - lead

(Reuters) - Lehman Brothers was the other joint lead manager of the
deal.




Read more at Reuters.com Bonds News

Houghton Mifflin to buy Reed's Harcourt arms for $4 bln

(Reuters) - The deal value consists of $3.7 billion in cash and $300 million in common stock of Houghton Mifflin Riverdeep Group Plc, Houghton Mifflin's parent company.



The combined business will be led by Tony Lucki, chief executive of Houghton Mifflin and former chief of Harcourt Education and Harcourt Inc.


Read more at Reuters.com Mergers News

DealTalk: Tribune share price reflects deal concerns

(Reuters) - The takeover of the newspaper and broadcasting conglomerate could be threatened by an industry-wide decline in newspaper advertising revenue, some say. As Tribune approaches the second stage of its deal, concerns have been raised about whether it will generate enough cash flow to meet a leverage test detailed in its deal agreement or if Zell will seek to renegotiate the terms.




Meanwhile, in the past few weeks, investors in the debt markets have become more risk-averse amid growing problems in the subprime home loan market.


Read more at Reuters.com Business News

Spanish Stocks Gain, Led by Telefonica, Iberia; Portugal Telecom Gains

(Bloomberg) -- Spanish stocks including Telefonica
SA rose. Bankinter SA paced falling shares after the bank
reported profit that missed analysts' estimates.

Portugal Telecom SGPS SA climbed in Lisbon after Dresdner
Kleinwort recommended buying the shares.


Read more at Bloomberg Stocks News

Platinum May Climb on Lonmin Supply Shortfall; Palladium Futures Decline

(Bloomberg) -- Platinum, little changed in New
York, may rise on supply concerns after Lonmin Plc, the world's
third-biggest producer, delayed some sales. Palladium fell.

Lonmin, based in London, postponed deliveries of as much as
90,000 ounces of platinum until after September after a South
African plant breakdown. A fall in grade, a measure of the metal
contained in ore, will reduce production this year and next,
Lonmin said. Platinum reached a record $1,353.80 an ounce on
May 7.


Read more at Bloomberg Commodities News

TREASURIES-Bonds extend gains on subprime index weakness

(Reuters) - The benchmark 10-year Treasury note's price rose 8/32 for a
yield of 5.06 percent , compared with 5.10 percent
late on Friday. Bond yields and prices move inversely.




Read more at Reuters.com Bonds News

Canada inflation rate expected to climb in June

(Reuters) - The June inflation numbers will be released at 7 a.m. on Wednesday.




Analysts forecast, on average, a 2.4 percent jump in the
consumer price index from June 2006, compared with 2.2 percent
in May.


Read more at Reuters.com Economic News

European Refining Margins Fall to Five-Month Low on Higher Brent Prices

(Bloomberg) -- Refining margins in Northwest Europe
fell to the lowest in five months as cuts in North Sea supply
pushed Brent crude oil to a record.

Brent cracking margins in Northwest Europe fell to minus
$1.96 a barrel on July 13, down from 35 cents the previous day,
according to data compiled by Bloomberg. That's the lowest level
since Feb. 2 when margins fell to minus $2.66.


Read more at Bloomberg Energy News

Acura, Land Rover top ranking of U.S. dealerships

(Reuters) - Automakers such as Toyota Motor Corp have made an effort to improve the quality of dealer service intended to address long-standing complaints that dealers can be pushy, neglectful or less than transparent when explaining vehicle features and financing options.




"The dealerships that scored well all give customers a reason to be interested other than the deal," said Fran O'Hagan, study author and president of Pied Piper. "Acura dealers were very consistent in all categories."


Read more at Reuters.com Business News

Next Barclays move in ABN battle worries investors

(Reuters) - A consortium of rival bidders led by Royal Bank of Scotland on Monday sweetened its already higher offer for ABN -- raising the cash portion to over 90 percent -- and investors and analysts said there were growing fears over Barclays' next step.




Barclays' current all-share bid, which has been recommended by ABN's board, is worth 65 billion euros , or around 35 euros a share, which is 10 percent lower than the RBS-led bid at 38.4 euros per share.


Read more at Reuters.com Mergers News

European Stocks Advance, Led By ABN Amro, Banks; Saipem, Technip Decline

(Bloomberg) -- European stocks rose, led by ABN Amro
Holding NV after Royal Bank of Scotland Group Plc sweetened its
71.1 billion-euro ($98.1 billion) offer for the Dutch lender.

ABN Amro jumped the most in three months. BT Group Plc, the
U.K.'s largest phone company, and drugmaker GlaxoSmithKline Plc
climbed after brokerages lifted their recommendations on the
shares.


Read more at Bloomberg Stocks News

US STOCKS-Indexes little changed; Verizon up on M&A talk

(Reuters) - NEW YORK, July 16 - U.S. stocks were little
changed on Monday as investors paused after Friday's record
highs to weigh the latest speculation on the mergers and
acquisition front.




Shares of Verizon Communications were the top gainer
on the Dow after a Financial Times Web site said on Monday
Vodafone Group was considering a $160 billion takeover
bid for the U.S. wireless operator. Vodafone denied the report,
but Verizon shares still rose 2.5 percent to $42.81.


Read more at Reuters.com Bonds News

India's BSNL reconsiders GSM tender, seeks govt nod

(Reuters) - "We dwelt on all the options," Sinha said, but he declined
to give any further details.




In 2006, BSNL invited tenders for 45.5 million GSM lines,
and Ericsson and Nokia emerged as the two
lowest bidders at $107 and $176 per line respectively.


Read more at Reuters.com Bonds News

E. Guinea sets Wednesday deadline for oil bids

(Reuters) - Equatorial Guinea, sub-Saharan Africa's third largest oil producer, has set a Wednesday deadline for revised bids for 10 new offshore exploration blocks, originally due to be awarded in May.

The West African nation had planned to award the acreage in mid-May and said it had received interest from a significant number of companies from Nigeria, Britain and India.


Read more at Reuters Africa

Rio Prostitutes Take Cue From Athletes, Shape Up to Win at Pan Am Games

(Bloomberg) -- Rosa Silva went into training before
the Pan American Games, running 40 minutes each day and doing
200 sit-ups. She also got a full-body waxing and had her hair
straightened and highlighted.

Silva, 26, isn't one of the athletes competing for gold
medals. She's a prostitute.


Read more at Bloomberg Exclusive News

Texas Gas Agency Leads $9 Billion of U.S. Municipal Bond Sales This Week

(Bloomberg) -- U.S. state and local governments
plan to sell $9 billion of bonds this week, led by a Texas
agency raising money to buy natural gas.

Municipal Gas Acquisition and Supply Corp. plans the
largest offering of municipal bonds this week, a $1.9 billion
sale by JPMorgan Chase & Co. that will be used to purchase gas
for utilities. The sale comes as demand for bonds has been
stoked by a rise in yields over the last two months.


Read more at Bloomberg Bonds News

Canadian Stocks May Rise, led By Research In Motion; Kinross May Advance

(Bloomberg) -- Canadian stocks may rise for a fourth
day after Research In Motion Ltd.'s market value exceeded Motorola
Inc.'s for the first time and investors speculated that gold prices
may increase for a third week.

Research In Motion, the BlackBerry maker, may rise 1 percent
to C$241.18, based on bids already submitted on the Toronto Stock
Exchange. The company's market capitalization surpassed Motorola's
after it won a greater share of sales with its e-mail-equipped
phones.


Read more at Bloomberg Stocks News

TREASURIES-Bonds hover near flat ahead of NY Fed data

(Reuters) - Data aside, dealers would be on the lookout for any further
sign of mortgage-related trades gone awry. Bond yields have
been edging lower since early last month in part because of
concerns surrounding the financial ripples of bad home loans.




"There will be a steady drumbeat of this stuff and the
market will be a little skittish," said Carl Lantz, U.S.
interest rate strategist at Credit Suisse.


Read more at Reuters.com Bonds News

Vodafone says has no plans to bid for Verizon

(Reuters) - Earlier on Monday, the Financial Times reported on its Alphaville Web site that Vodafone had been considering a $160 billion bid for Verizon.




Read more at Reuters.com Business News

Canada's Dollar Approaches 30-Year High as Price of Crude Oil Advances

(Bloomberg) -- The Canadian dollar rose,
approaching a 30-year high, as the price of crude oil advanced,
boosting the outlook for the nation's export revenue.

The currency also strengthened before a government report
that may show manufacturing shipments strengthened in May.


Read more at Bloomberg Currencies News

UPDATE 1-DJO to be bought by ReAble Therapeutics

(Reuters) - NEW YORK, July 16 - Knee and ankle brace maker DJO Inc. said on Monday it agreed to be bought by medical device maker ReAble Therapeutics Inc. for about $1.6 billion including debt, in a bid to increase its market share.



The cash offer of $50.25 per share by ReAble, which is controlled by private equity Blackstone Group . represents a 19 percent premium over DJO's Friday closing price of $42.10.


Read more at Reuters.com Mergers News

Verizon rises further on Vodafone bid talk

(Reuters) - Meanwhile, U.S.-listed shares of Vodafone were down 1.7 percent at $32.97 in electronic trade. In London, Vodafone shares also slipped 1.5 percent.




Read more at Reuters.com Hot Stocks News

Embraer May Make Bigger Jets to Rival Airbus, Boeing, Chief Executive Says

(Bloomberg) -- Empresa Brasileira de Aeronautica SA
may make bigger jets to challenge Airbus SAS and Boeing Co. in the
next decade if new engine technology is developed, Chief Executive
Officer Frederico Curado said.

``If there is a huge change in the structure of the dynamics
of this market, we will certainly look into that,'' Curado said in
an interview in Paris.


Read more at Bloomberg Emerging Markets News

IHOP to buy Applebee's in $2.1 billion deal

(Reuters) - Greenhill & Co. LLC advised IHOP, and Banc of America Securities LLC advised Applebee's on the deal.




Read more at Reuters.com Mergers News

Atlas Copco tops forecast with record Q2

(Reuters) - Atlas Copco said it expected demand in most of its customers
segments, such as mining, construction and the manufacturing and
process industries, to remain at the current high level over the
short term.




Read more at Reuters.com Market News

U.S. Stock-Index Futures Gain; Motorola, Ford Shares Advance in Europe

(Bloomberg) -- U.S. stock-index futures rose before
five members of the Standard & Poor's 500 Index, including
Charles Schwab Corp., the biggest discount brokerage, and Mattel
Inc., the world's largest toymaker, report earnings.

Motorola Inc. gained in Europe after Deutsche Bank AG
recommended buying shares of the world's second-biggest maker of
mobile phones. Ford Motor Co. also climbed. Newspapers including
the Sunday Times reported that the second-biggest U.S. automaker
may sell its profitable Volvo Car Corp. business.


Read more at Bloomberg Stocks News

Cocoa Products of Nigeria Plans to Double Processing Capacity This Year

(Bloomberg) -- Cocoa Products Ltd., Nigeria's
biggest processor of the beans, plans to double capacity to
60,000 tons this year to benefit from the government's strategy
of encouraging local grinding, said spokesman Samuel Dada.

The company, jointly owned by the government of the south-
western state of Ondo, where it is based, and Lagos-based Skye
Bank Plc, plans to increase output from 30,000 tons a year
currently by adding a new production line, Dada said in an
interview July 12 in Akure, the state capital.


Read more at Bloomberg Commodities News

FTSE climbs as RBS sweetens ABN bid; US weighs

(Reuters) - The FTSE 100 index of Britain's leading shares edged higher in choppy trade on Monday after late profit-taking in the U.S. on Friday restricted higher gains, as the takeover battle for ABN AMRO heated up.

Royal Bank of Scotland added 0.5 percent after the consortium it is leading boosted the cash element of its 71.1 billion euro bid for Dutch bank ABN. The bid is above a rival offer from Britain's Barclays.


Read more at Reuters Africa

Choking risk for babies prompts Gerber recall

(Reuters) - The packages were distributed in the United States, Puerto
Rico and the Caribbean, the company said on its Web site.




Novartis said the recall was minor and that it would have no
financial impact on the group, nor would the group make
provisions to cover any losses from the recall.


Read more at Reuters.com Mergers News

French Shares Including Renault, Alstom Advance; Unibail Paces Declines

(Bloomberg) -- French stocks including Renault SA,
the country's second-largest carmaker, and Alstom SA, the world's
third-biggest producer of power plants, increased.

Unibail, France's largest real-estate investment trust,
paced declining shares.


Read more at Bloomberg Stocks News