German Stocks Advance, Led by MAN on Earnings; DaimlerChrysler, BMW Rise

(Bloomberg) -- Germany's benchmark DAX Index rose,
heading for the biggest one-day gain in more than two weeks. MAN
AG shares paced the advance after Europe's third-largest
truckmaker reported its 16th consecutive profit increase.

Shares of DaimlerChrysler AG and Bayerische Motoren Werke
AG, the world's biggest luxury carmakers, also climbed.


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Japan's Nikkei Drops, Paced by Nomura on Subprime Concern; Olympus Gains

(Bloomberg) -- Japan's Nikkei 225 Stock Average
slipped after Germany's IKB Deutsche Industriebank AG said losses
on subprime loan investments will ``significantly'' lower profits.

Brokerages such as Nomura Holdings Inc., with similar
investments, led declines on concern they will also be affected.


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Currency Option Volatility Edges Higher as Credit Risk Measures Increase

(Bloomberg) -- Option volatility on most major
exchange rates edged higher as investors demand safer assets and
indicators of corporate bond risk surged.

The perceived risk of owning European corporate bonds
soared to the highest in at least three years after Germany's
IKB Deutsche Industriebank AG reported losses on U.S. subprime
mortgages, credit-default swap prices show.


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European Bonds Advance as Subprime Woes Send Corporate Debt Risk Soaring

(Bloomberg) -- European government bonds gained for
a fifth day as the risk of owning corporate debt soared to the
highest in at least three years.

Bunds rose, pushing 10-year yields to the lowest in 2 1/2
months, after Germany's IKB Deutsche Industriebank AG reported
losses linked to loans made to U.S. homeowners with poor credit
histories. Government debt dropped earlier on speculation the
European Central Bank will this week reiterate its preference for
higher rates.


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U.S. Two-Year Bonds Advance After Risk of Holding Corporate Debt Surges

(Bloomberg) -- U.S. two-year Treasuries rose after
a gauge of owning corporate debt surged to the highest in at
least three years.

Benchmark 10-year bonds also strengthened, pushing yields
to near the lowest in more than two months, after Germany's IKB
Deutsche Industriebank AG reported losses on U.S. subprime
mortgages. Treasuries extended gains into a fourth week on
concern rising defaults on home loans to people with poor credit
histories will worsen a housing slowdown and hurt economic
growth.


Read more at Bloomberg Bonds News

European Bank Stocks May Decline, Led by ING, Credit Suisse, IKB Deutsche

(Bloomberg) -- European bank stocks may drop after
IKB Deutsche Industriebank AG, a German lender that invested in
U.S. subprime mortgages, said profit will be ``significantly''
lower than forecast.

``The subprime crisis has reached Germany,'' said Klaus
Stabel, head of research at ICF Kursmakler AG in Frankfurt.
``It's bad for sentiment. We haven't seen the bottom yet.''


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Barclays China Deal Spurs U.S., Europe to Limit Government-Fund Investment

(Bloomberg) -- The U.S., France and Germany are
racing to draw up rules to govern developing nations' secretive
state-controlled investment funds, spurred in part by Barclays
Plc's use of Chinese and Singaporean money in its takeover bid
for ABN Amro Holding NV.

With no international body such as the World Trade
Organization to oversee such investment, officials in the U.S.
are pushing the International Monetary Fund and World Bank to set
guidelines. Germany and France, meanwhile, are urging a joint
European response.


Read more at Bloomberg Emerging Markets 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

EnBW's Philippsburg-2 Nuclear Reactor Returns to Service After Repair Work

(Bloomberg) -- Energie Baden-Wuerttemberg AG,
Germany's third-biggest utility, said it began power generation
at its Philippsburg-2 nuclear reactor which had been halted for
annual maintenance.

The unit, which has a capacity of 1,458-megawatts, was
stopped at the beginning of the month, the company said in a
statement. It was restarted over the weekend.


Read more at Bloomberg Energy News

Vattenfall's Brunsbuettel Nuclear Plant to Stay Shut Until Repairs Finish

(Bloomberg) -- Vattenfall Europe AG, Germany's
fourth-largest utility, will keep its Brunsbuettel nuclear plant
halted until repairs to screw anchors are complete.

Repairs tomorrow will focus on ``the part of the system that
can only be accessed when the reactor is off,'' Vattenfall
spokesman Ivo Banek said by phone today from Hamburg. ``We don't
know yet how long that's going to take. It can be a few days, or
can be much longer.''


Read more at Bloomberg Energy News

Dollar's Record-Setting Tumble Turns Into Boon for George Bush, Coca-Cola

(Bloomberg) -- Everyone from Nobel Prize laureates
to the world's biggest bond investor says the Bush administration
has reason to cheer the dollar's slide to historic lows.

The currency has lost 13.2 percent since January 2001, when
George W. Bush took office, the most under any president since at
least Gerald Ford, who left the White House in 1977. That's based
on a Federal Reserve index that tracks the dollar against the
currencies of 38 U.S. trading partners, including Germany, Japan
and Canada.


Read more at Bloomberg Currencies News

German 2008 Power Increases as Carbon Dioxide Emission Permit Costs Gain

(Bloomberg) -- German power for delivery next year
rose for the first time in five days as carbon-emissions costs
rebounded from an 11-week low.

Next-year baseload power prices in Germany, Europe's
biggest electricity market, gained 1 percent to 55.25 euros
($76.16) a megawatt-hour at 5:43 p.m. Berlin time, according to
broker GFI Group Inc. The contract earlier fell as much as 0.3
percent. Baseload is electricity delivered around the clock.


Read more at Bloomberg Energy 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

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

Adidas, Axel Springer, Deutsche Post, EM.TV, E.ON, SAP: German Preview

(Bloomberg) -- The following stocks may rise or
fall in German markets.

Germany's X-DAX Index dropped 0.7 percent to 7839.27. The
index provides an estimate of the DAX Index, based on trading in
DAX futures after the Xetra electronic market closes. The DAX
fell 0.9 percent to 7860.52 on the Xetra electronic-trading
system.


Read more at Bloomberg Stocks News

European Stocks May Decline; Shares of Barclays, Credit Suisse Might Fall

(Bloomberg) -- European stocks may retreat after
U.S. and Asian equities fell. Barclays Plc and Credit Suisse
Group may drop after their U.S.-traded securities declined.

France Telecom SA may be active as the French government
sells as much as 3.8 billion euros ($5.1 billion) of the nation's
largest phone company. Shares of Cumerio NV, owner of the biggest
copper smelter in southeastern Europe, may be active after
Germany's Norddeutsche Affinerie AG agreed to buy the company.


Read more at Bloomberg Stocks News

BASF, E.ON, KarstadtQuelle, MLP AG, ThyssenKrupp: German Equity Preview

(Bloomberg) -- The following stocks may rise or fall
in German markets.

Germany's X-DAX Index rose 0.2 percent. The index provides
an estimate of the DAX Index, based on trading in DAX futures
after the Xetra electronic market closes. The DAX climbed 0.7
percent to 8090.49 on the Xetra electronic-trading system.


Read more at Bloomberg Stocks News

German DAX Benchmark Climbs; Allianz, MAN, SAP Shares Pace the Advance

(Bloomberg) -- Germany's benchmark DAX Index rose,
led by Allianz SE, Europe's largest insurer.

MAN AG, Europe's third-largest truckmaker, climbed after
Chief Executive Officer Hakan Samuelsson said the second quarter
is ``going very well.'' SAP AG, the world's largest maker of
business-management software, rose for a third day.


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European Government Bonds Gain; German Sentiment Index Unexpectedly Drops

(Bloomberg) -- European government bonds rose after
a report showed investor confidence in Germany, the continent's
biggest economy, unexpectedly fell this month.

Two-year yields fell from near a six-year high after the ZEW
Center for European Economic Research said its index of investor
and analyst expectations dropped to 20.3, from 24 in May.
Economists surveyed by Bloomberg News had expected confidence to
improve, predicting a reading of 29.


Read more at Bloomberg Bonds News

European Government Bonds Little Changed Before German Confidence Report

(Bloomberg) -- European government bonds were little
changed before a report that's expected to show investor
confidence in Germany, the region's largest economy, soared to
the highest in a year.

Ten-year yields held near the strongest since August 2002
yesterday as European Central Bank official Jose Manuel Gonzalez-
Paramo said monetary policy was still accommodative. Bonds may
extend losses before a June 22 report that's likely to show
German business sentiment stayed near a record high this month.


Read more at Bloomberg Bonds News