Yen Weakens on Speculation Investors Are Selling to Restore Carry Trades

(Bloomberg) -- The yen fell from a two-week high
against the dollar and euro as investors resumed sales of the
currency in search of higher returns elsewhere through so-called
carry trades.

Japan's yen snapped a three-day winning streak, declining
against 15 of the 16 most-active currencies after Bank of Japan
Governor Toshihiko Fukui said the central bank aims to adjust the
lowest interest rates among major economies at a gradual pace.
The yen dropped the most against New Zealand's dollar, where an 8
percent benchmark interest rate compares with Japan's 0.5 percent.


Read more at Bloomberg Currencies News

Oil holds above $70 on falling US fuel stocks

(Reuters) - Oil was little changed above $70 a barrel on Thursday, as U.S. gasoline inventories fell against expectations amid peak summer driving demand, while swelling crude stock levels limited the upside.

London Brent crude, currently seen as the best benchmark for global oil prices, was up 2 cents at $70.55 a barrel by 0231 GMT, after rising 35 cents on Wednesday.


Read more at Reuters Africa

Kuwait Will Strengthen Dinar This Year, Standard Chartered's Brice Says

(Bloomberg) -- The Central Bank of Kuwait will
change the rate at which it buys and sells dinars one more time
this year, then leave it as the dollar appreciates against the
euro from the fourth quarter, Standard Chartered said.

The central bank's reference rate, as it is known, will
change around 0.35 percent in the third quarter as the euro gains
against the dollar, Steve Brice, chief Middle East economist at
Standard Chartered, said in a note received via e-mail today.


Read more at Bloomberg Currencies News

Fed seen on hold as core inflation edges lower

(Reuters) - Financial markets widely expect the U.S. central bank to hold benchmark overnight interest rates at 5.25 percent, a level reached in June last year after 11 straight increases.




Investors will watch closely to see if the Fed nods to a recent easing in measures of core inflation, which strip out food and energy prices to give a better sense of price trends, when it announces its decision around 2:15 p.m. .


Read more at Reuters.com Business News

Citizens Republic, CKE, Herman Miller, LSI, Red Hat: U.S. Equity Preview

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

Atmel Corp. (ATML US) gained 20 cents, or 3.5 percent, to
$5.91 in trading yesterday after the official close of U.S.
exchanges. The maker of chips for mobile phones and DVD players
said first-quarter net income was 6 cents a share, more than the
3-cent average estimate of five analysts surveyed by Bloomberg.


Read more at Bloomberg Stocks News

UPDATE 2-Japan output falls, other data eyed for a BOJ move

(Reuters) - TOKYO, June 28 - Japan's industrial production
unexpectedly fell in May from a month earlier, casting doubt on
an anticipated rebound in output but doing little to alter
expectations for the Bank of Japan to raise rates in the coming
months.




Market players largely shrugged off the weaker-than-expected
reading, as many were awaiting consumer price data the next day
and the Bank of Japan's quarterly tankan survey on Monday for
clues on whether the central bank could raise rates as early as
August.


Read more at Reuters.com Economic News

JGBs fall on rising stocks, players await data

(Reuters) - The BOJ is widely expected to boost interest rates by 25
basis points to a 12-year high of 0.75 percent in August.




"The data was not weak enough to make people think that a
rate hike may come later than August," said Tatsuo Ichikawa,
chief JGB strategist at ABN Amro.


Read more at Reuters.com Bonds News

Khazanah Sells $850 Million of Islamic Bonds Exchangeable Into Plus Shares

(Bloomberg) -- Khazanah Nasional Bhd., Malaysia's
state investment arm, said it sold $850 million of Islamic bonds
that can be converted into shares of the country's biggest toll-
road operator to fund its business.

Khazanah sold an additional $250 million, after initially
offering to sell $600 million of the five-year exchangeable bonds
because investors demanded more, the company said in an e-mailed
statement last night. Khazanah owns about 24 percent of PLUS
Expressways Bhd., the toll-road company.


Read more at Bloomberg Bonds News

Australia Dollar Rises Against Yen on Speculation Carry Trades to Continue

(Bloomberg) -- The Australian dollar rose against
the yen, snapping three days of declines, on speculation
investors will resume so-called carry trades.

The currency gained to 103.32 yen at 9:12 a.m. in Sydney
from 103.05 yen in late Asian trading yesterday. Australia's
dollar was at 83.93 U.S. cents, after trading as low as 83.56
cents, from 84.15 cents yesterday.


Read more at Bloomberg Currencies News

Japanese Bonds May Fall as Yields Near Three-Week Low Dent Investor Demand

(Bloomberg) -- Japan's 10-year bonds may drop,
halting a four-day advance, on concern yields near the lowest in
almost three weeks will dent investor demand.

Bonds may halt their longest winning streak since March on
speculation a government report today will show industrial
production gained for the first time in three months in May.
Signs of faster growth may prompt investors and traders to
increase bets that interest rates will rise.


Read more at Bloomberg Bonds News

Coates Hire, Medusa, Santos, Woodside Petroleum: Australian Equity Preview

(Bloomberg) -- The following is a list of companies
whose shares may rise or fall in Australia. This preview includes
news announced after markets closed yesterday. Prices are from
yesterday's close unless otherwise stated. Stock symbols are in
brackets after the company names.

The S&P/ASX 200 Index futures contract due in September
added 0.7 percent to 6258 at 6:59 a.m. in Sydney. The Bank of New
York Australia ADR Index fell 1.5 percent in New York.


Read more at Bloomberg Stocks News

Group calls on company directors to curb forecasts

(Reuters) - Led by former U.S. Securities and Exchange Commission
Chairman William Donaldson, the Committee for Economic
Development said directors should not make short-term decisions
at the expense of long-term ones.




"We know from experience that long-term goals have been
sacrificed on occasion to short-term considerations," the CED
wrote in its report. "Sometimes those considerations cause
suboptimal economic choices and lamentable underperformance."


Read more at Reuters.com Government Filings News

UPDATE 1-Affinion Group files for $600 million IPO

(Reuters) - The Norwalk, Connecticut-based company did not reveal in
the preliminary filing with the U.S. Securities and Exchange
Commission how many shares it plans to sell or the expected
price of the shares.




It also did not disclose what symbol it will be seeking but
said it plans to list its stock on the New York Stock
Exchange.


Read more at Reuters.com Government Filings News

UPDATE 1-Moody's sees downgrades of subprime CDOs rising

(Reuters) - NEW YORK, June 27 - Moody's Investors Service on
Wednesday said it expects to downgrade more subprime-related
collateralized debt obligations this year and next than it did
in 2006.




"Given what's been said about this market, as we see
expectations of cumulative losses increasing, yes, I do expect
to see downgrades," Yuri Yoshizawa, group managing director at
Moody's, told Reuters.


Read more at Reuters.com Bonds News

Moody's expects to cut more subprime CDOs than last yr

(Reuters) - The credit-ratings firm is likely to downgrade more
subprime CDOs than it did last year, added Moody's Managing
Director Jonathan Polansky.




Read more at Reuters.com Bonds News

Canadian Stocks Rise, Led by EnCana, as Energy Shares Rebound on Oil Price

(Bloomberg) -- Canadian stocks gained for the first
time in four days as such energy shares as EnCana Corp. gained
along with crude oil, whose price rebounded to almost $69 a barrel.

Raw-materials shares including Teck Cominco Ltd. and Alcan
Inc., the target of a takeover offer from Alcoa Inc., recovered
from earlier drops and rose on prospects of continued global demand
for resources, and more takeovers.


Read more at Bloomberg Stocks News

Credit Suisse to open trading unit in Houston

(Reuters) - The Houston office will have three to five traders, the
company said.




Read more at Reuters.com Bonds News

Canada urges one securities watchdog to beat crime

(Reuters) - A nationwide market regulator could help solve the problem,
he said.




"Clearly, the world is not about to sit back and wait for
us, and quite frankly, our government is not prepared to accept
the status quo," he said.


Read more at Reuters.com Government Filings News

US STOCKS-Indexes rise with energy, tech shares

(Reuters) - NEW YORK, June 27 - U.S. stocks rose on
Wednesday, with the Nasdaq up 1 percent on gains in technology
shares and the energy sector boosted by a jump in oil prices of
more than $1 a barrel.




A drop in Treasury yields in the afternoon also boosted
stocks. Major indexes had fallen earlier in the day after
weaker-than-expected durable goods data.


Read more at Reuters.com Bonds News

TREASURIES-Bond bulls muster fresh gains as subprime lurks

(Reuters) - NEW YORK, June 27 - U.S. government bonds climbed
on Wednesday as worries over failed bets in high-risk mortgages
supported demand for safer assets, although rising stocks
appeared to be threatening the rally.




A steep decline in durable goods orders bolstered
Treasuries, whose movements were tempered in part by a looming
interest rate decision from the Federal Reserve.


Read more at Reuters.com Bonds News

Ex-SEC chair Breeden seeks 3 H&R Block board seats

(Reuters) - Breeden Capital Management LLC, which said it controls 1.86 percent of H&R Block shares, plans to nominate Breeden and two others for election to H&R Block's 11-person board at the company's September 6 annual meeting.




He complained that H&R Block shareholders have suffered as the Kansas City, Missouri-based company strayed into areas outside tax preparation, its largest and best-known business.


Read more at Reuters.com Business News

Wells Fargo unit fined for conflict of interest

(Reuters) - Cadence designs semi-conductors for use in the global
electronics market.




The unit of Wells Fargo & Co. and van Dorsten
neither admitted nor denied the findings, but consented to the
entry of NASD's findings.


Read more at Reuters.com Government Filings News

Southwest Air trims expansion amid slowdown

(Reuters) - Southwest, the leading U.S. discount carrier, intends to adjust its route schedule and reduce its planned fleet expansion by 15 aircraft, CEO Gary Kelly said during a company conference with analysts.




The measures would lead to capacity growth of about 6 percent in the fourth quarter of this year and in 2008, down from a planned increase of about 8 percent.


Read more at Reuters.com Market News

UPDATE 1-ServiceMaster restructures, creditors pull back

(Reuters) - NEW YORK, June 27 - ServiceMaster Co. is
one of the latest companies forced to restructure the financing
for its leveraged buyout, as bond investors resist some of the
riskiest types of debt from heavily leveraged companies,
according to analysts and sources.




ServiceMaster, which owns TruGreen LawnCare and Terminix
pest control, in March accepted a $4.7 billion takeover bid
from a group led by private equity firm Clayton, Dubilier &
Rice Inc. For details, see [ID:nBNG292644].


Read more at Reuters.com Bonds News

FSA Considering U.K. Commodity-Trading Reports Similar to Those in U.S.

(Bloomberg) -- The Financial Services Authority,
the U.K.'s markets regulator, is considering publishing reports
on commodity trading similar to those released by the U.S.
Commodity Futures Trading Commission, in an attempt to improve
transparency.

``It's something that we are looking into and need to speak
with people in the market first,'' Jonathan Hill, head of the
FSA's commodities group, said in an interview in London today.
``It's an area where we could potentially add value if the
market thinks it's worth doing.''


Read more at Bloomberg Energy News

Global Company Bond Risk Rises Amid Subprime Loan Concerns, Buyout Debt

(Bloomberg) -- The perceived risk of owning U.S.
and European corporate bonds rose for the sixth day in seven
amid concerns about subprime mortgage losses and the record pace
of borrowing being used to fund leveraged buyouts.

Credit-default swaps based on $10 million of debt in the
CDX North America Crossover Index jumped $3,000 to $187,000 at
11:36 a.m. in New York after hitting a 10-month high of $192,000
earlier today, according to Deutsche Bank AG. The iTraxx
Crossover Index of 50 European companies rose 9,500 euros
($12,760) to 225,000 euros at 4:27 p.m. in London, according to
JPMorgan Chase & Co. The increase is the biggest since March 14.


Read more at Bloomberg Bonds News

Goldman CEO says world less risky; still nervous

(Reuters) - The spread between top grade and junk debt remains thin, as
investors flush with cash snap up every kind of asset around
the world.




Speaking at a Wall Street Journal dealmakers conference,
Blankfein said he remained optimistic about the state of the
global economy and the ability of markets to price risk.


Read more at Reuters.com Bonds News

WRAPUP 1-US May durable goods orders fall,stir growth fears

(Reuters) - It was the first drop in durable goods orders since January
and followed a 1.1 percent rise in April, the Commerce
Department said on Wednesday. Analysts were expecting orders to
slip by only 1 percent.




A separate report showed U.S. mortgage applications fell
for the second straight week as interest rates remained near
recent highs and made home buying more expensive.


Read more at Reuters.com Economic News

Nymex Gas Is Steady Amid Reduced Concern Over Hot Weather, Storm Threat

(Bloomberg) -- Natural gas in New York was little
changed as intense hot weather that spurs demand and storms that
pose a possible threat to production haven't materialized.

``It looks like it's trying to hold this $6.80 level as far
as the July contract goes, you may have the shorts come in and
take some profit and get a bounce,'' said Brad Florer, a trader
with Kottke Associates Inc. in Louisville, Kentucky. ``And a lot
of guys who are long, are thinking if they can just tread water
and hold here, they'll get a storm and a move, and everything
will be alright.''


Read more at Bloomberg Energy News

Puerto Rico funding probe swirls around governor

(Reuters) - In recent weeks, a grand jury has subpoenaed Acevedo Vila's
records at the University of Puerto Rico, where he was a
student, and, according to newspaper reports, heard testimony
from employees of swanky clothing stores where the governor and
his political party, the Popular Democratic Party , have
admitted to paying cash to buy him $40,000 worth of suits.




The local news reports -- some based on what the governor
has called leaks of false information -- have also said the
grand jury is investigating claims he received gifts of jewelry
and cosmetic surgery.


Read more at Reuters.com Bonds News

US blue chips trim losses as energy shares recover

(Reuters) - U.S. blue-chip stocks pared losses on Wednesday after energy stocks, including Exxon Mobil Corp., turned positive on data showing a surprise drop in weekly U.S. gasoline supplies.

The Nasdaq rose, helped by Oracle Corp. after the world's third-largest software company reported a higher quarterly profit. For details, see ID:nN26384527.


Read more at Reuters Africa

Chilean Copper Output Rises 3.9 Percent in May as Companies Expand Mines

(Bloomberg) -- Chile, the world's biggest copper
supplier, said output of the metal rose 3.9 percent in May as
companies expanded mines.

Output climbed to 479,049 metric tons from a revised
461,195 tons in May 2006, the Chilean government's National
Statistics Institute said today in Santiago.


Read more at Bloomberg Commodities News

Clinton Group declares 5.05 pct stake in Healthspring

(Reuters) - In a filing with the U.S. Securities and Exchange
Commission, Clinton Group and affiliates said they owned about
2.9 million shares, or 5.05 percent, as of June 26. The company
added that the shares, when purchased, were undervalued and
represented an "attractive investment opportunity."




Clinton said it paid about $55.6 million to acquire the
shares.


Read more at Reuters.com Government Filings News

Mexico Peso Declines to Two-Week Low on Subprime Spillover, Slowdown Fears

(Bloomberg) -- Mexico's peso fell to a two-week low
on worries faltering subprime mortgages may prompt investors to
avoid riskier, emerging market assets and sliding U.S. durable
goods orders could signal economic slowing.

``The jitters about the U.S. credit markets certainly
weighed on the peso,'' said Rafael de la Fuente, chief Latin
America economist for BNP Paribas in New York.


Read more at Bloomberg Currencies News

Andrew, BAE, Best Buy, Jones Soda, Valero Energy: 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 9 a.m. New York time.

Oil Refiners: Citigroup Global Markets Inc. downgraded
shares of Valero Energy Corp. (VLO US), the largest U.S. refiner,
and Tesoro Corp. (TSO US), the largest refiner in the U.S. West,
to ``sell'' from ``hold'' because of valuations. Sunoco Inc. (SUN
US), the biggest refiner in the Northwest, was cut to ``hold''
from ``buy.'' Valero fell $1.21 to $73.45 in trading before U.S.
exchanges opened. Sunoco lost 35 cents to $79.98 and Tesoro
retreated $1.51 to $56.40.


Read more at Bloomberg Stocks News

Canada Stocks May Fall on Commodities Prices; Petro-Canada, Alcan May Drop

(Bloomberg) -- Canadian stocks may fall, sending the
country's main equity index to its first four-day drop in nine
months, after prices for such commodities as crude oil and copper
slid.

Energy and raw-materials producers such as Petro-Canada and
Alcan Inc. may decline on concern that demand for Canadian
resources will slow, after a report showed durable goods orders in
the U.S., Canada's biggest export market, fell more than forecast.
Investors are also awaiting the U.S. Federal Reserve's interest
rate decision tomorrow.


Read more at Bloomberg Stocks News

UPDATE 1-AGF Management's second-quarter earnings surge

(Reuters) - Canada's third-largest publicly traded fund management firm
reported net income of C$53.6 million , or 59
Canadian cents a share, for the three months ended May 31, up
from C$33 million, or 37 Canadian cents a share, in the same
quarter a year ago.




Profit from continuing operations was C$49.1 million, or 54
Canadian cents a share, versus C$21.5 million, or 24 Canadian
cents a share, in the same period last year.


Read more at Reuters.com Market News

UPDATE 2-Wells Fargo names Stumpf CEO; Kovacevich stays chair

(Reuters) - NEW YORK, June 27 - Wells Fargo & Co. ,
the fifth-largest U.S. bank, on Wednesday named John Stumpf chief
executive effective immediately, replacing Richard Kovacevich,
who will remain chairman.




Stumpf, 53, has been president and chief operating officer
since August 2005, and was long considered to be a leading
candidate to replace Kovacevich. Last June, Stumpf joined
Kovacevich as the only inside directors on the bank's board.


Read more at Reuters.com Bonds News

H.B. Fuller posts higher 2nd qtr earnings

(Reuters) - Analysts had expected the company to post earnings of 42
cents per share, according to Reuters Estimates.




Revenue rose 0.5 percent to $373.5 million for the quarter
ending June 2, as positive pricing and favorable foreign
currency translation helped offset lower volume.


Read more at Reuters.com Market News

Bond prices rise on lingering subprime woes

(Reuters) - These fears have been heightened after Bear Stearns was forced to bail out a hedge fund which suffered large losses due to its dealings in subprime mortgages.




"The subprime issue has become a much more focused problem. It has certainly caused some unease in terms of the overall equity market and the overall leverage picture. We have seen some money flow into Treasuries," said Doug Bender, managing director with McQueen, Ball & Associates in Bethlehem, Pennsylvania.


Read more at Reuters.com Hot Stocks News

Futures signal weak start on liquidity worry

(Reuters) - In takeover news, Rupert Murdoch told Reuters on Wednesday he had no plan to raise his News Corp.'s bid for Dow Jones & Co. Inc. and said he is waiting for final approval of the proposed acquisition from the Bancroft family, which controls the publisher of the Wall Street Journal.




A weak Japanese currency has allowed investors to borrow cheaply in yen to buy higher-yielding assets elsewhere, a practice known as carry trade. The yen rose on Wednesday against the dollar and euro.


Read more at Reuters.com Business News

UPDATE 1-US home loan demand drops to four-month low - MBA

(Reuters) - NEW YORK, June 27 - U.S. mortgage applications
fell for a second straight week as interest rates remained near
recent highs, an industry group said on Wednesday.




The Mortgage Bankers Association said its seasonally
adjusted index of mortgage applications, which includes both
refinancing and purchasing loans, for the week ended June 22
fell 3.9 percent to 618.6 -- its lowest in four months.


Read more at Reuters.com Bonds News

Copper Drops to Two-Week Low in London on Slowing U.S Demand; Nickel Falls

(Bloomberg) -- Copper fell in London to a two-week
low on signs that demand in the U.S. remains sluggish and that
China, the world's biggest consumer, may raise interest rates.
Aluminum and nickel also dropped.

New home purchases in the U.S., the second-biggest user of
the metal, fell in May, signaling demand is still weak in the
second year of a housing slump. Builders are the biggest users
of the metal.


Read more at Bloomberg Commodities News

U.S. Stock-Index Futures Are Little Changed; Oracle Advances in Europe

(Bloomberg) -- U.S. stock-index futures were little
changed before Federal Reserve Chairman Ben S. Bernanke and other
central bank policy makers meet to decide on interest rates.

Oracle Corp. gained in Europe after the world's third-
largest software maker gave a better sales outlook than analysts
expected. Nike Inc. advanced after the world's largest athletic-
shoe maker said orders rose the most in a decade.


Read more at Bloomberg Stocks News

Private equity firm to buy Nordstrom unit: report

(Reuters) - A Nordstrom spokeswoman did not immediately return a call
seeking comment.




Nordstrom shares closed at $50.20 on the New York Stock
Exchange on Tuesday.


Read more at Reuters.com Mergers News

Cnooc Parent Plans to Buy Additional Spot LNG Cargoes to Cover Shortfall

(Bloomberg) -- China National Offshore Oil Corp.,
joint operator of the country's first liquefied natural gas
terminal, will buy more cargoes of the fuel in the spot market to
cover a shortfall in imports, a company official said.

China's biggest offshore oil explorer is prepared to pay a
maximum of $10 per million British thermal units for the cargoes,
Ye Yishu, marketing general manager at the Beijing-based
company's LNG trading and shipping unit, said today.


Read more at Bloomberg Energy News

Shanghai copper limit down, growth, charts weigh

(Reuters) - Shanghai copper tumbled by its 4 percent daily limit on Wednesday, following losses in London in the wake of weak U.S. economic data and downbeat chart readings.

The most-active September copper contract on the Shanghai Futures Exchange dropped by 2,520 yuan or 4 percent from Tuesday's settlement price, to 60,420 yuan at 0600 GMT. At the close, copper was at 60,440 yuan.


Read more at Reuters Africa

U.S. Notes Rise a Fourth Day; Report May Show Durable Goods Orders Dropped

(Bloomberg) -- U.S. 10-year notes rose for a fourth
day, the longest run of gains since February, before a
government report that economists say will show durable goods
orders fell in May.

The yield on the benchmark 4 1/2 percent security due in
May 2017 fell 1 basis point to 5.07 percent as of 8:03 a.m. in
London, according to bond broker Cantor Fitzgerald LP. The price
rose 3/32, or 94 cents per $1,000 face amount, to 95 20/32.


Read more at Bloomberg Bonds News