U.K. Pound Climbs to 26-Year High Versus Dollar on Bets BOE to Raise Rates

(Bloomberg) -- The U.K. pound rose for a sixth day,
reaching its highest in more than a quarter of a century against
the dollar, as investors bet the Bank of England will raise
interest rates this week to curb inflation.

The currency rose above $2 last week and today extended its
advance to $2.0196, its highest since June 2, 1981. The BOE's
Monetary Policy Committee members will decide on borrowing costs
July 5, and economists surveyed by Bloomberg News expect them to
lift the benchmark rate by a quarter-point to 5.75 percent.


Read more at Bloomberg Currencies News

US stock indexes rally on M&A frenzy, factory growth

(Reuters) - U.S. stocks rallied on Monday, the first day of the third quarter, boosted by a fresh round of takeover activity and data showing a pickup in manufacturing in June.

Caterpillar Inc. and United Technologies Corp. led the Dow industrials higher after a surprising rise in the Institute for Supply Management's factory index to its highest level in more than a year.


Read more at Reuters Africa

Leonard Green, Container Store set partnership

(Reuters) - The privately held company put itself up for sale in February.




Read more at Reuters.com Business News

Moscow Hotel Rates Rise to $1,000 a Night, Driving Travelers to Suburbs

(Bloomberg) -- The Ritz-Carlton Moscow threw open its
neo-imperial doors near the Kremlin this week. The cheapest room
for the summer tourist season is $1,036 with tax.

That rate reflects how Moscow hotel openings are lagging
behind room demand fueled by soaring tourism, exports and
investor interest in the world's largest energy producer.


Read more at Bloomberg Currencies News

Japan's Nikkei 225 Average Climbs; Commodities-Related Shares Pace Advance

(Bloomberg) -- Japan's Nikkei 225 Stock Average
climbed, paced by commodities-related shares such as Nippon Oil
Corp., after the price of crude rose to a 10-month high and a
measure of six metals traded on the London Metal Exchange climbed
the most in two weeks.

JFE Holdings Inc. led declines by steel companies on concern
higher costs and overproduction will erode profits. The Bank of
Japan's quarterly Tankan survey that was released yesterday
showed sentiment among steelmakers slid to 38 points from 46 at
the last survey.


Read more at Bloomberg Stocks News

Anaren, Bill Barrett, First Mutual, NetList, Pool: 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 Capital Strategies Ltd. (ACAS US) rose $1.70, or 4
percent, to $44.70 in trading yesterday after the official close
of U.S. exchanges. The specialty finance company will replace
Dollar General Corp. (DG US) in the Standard & Poor's 500 Index,
S&P said in a statement.


Read more at Bloomberg Stocks News

BlackRock's Mining Fund Returns Triple Stocks' Average in Second Quarter

(Bloomberg) -- BlackRock Inc.'s $10 billion World
Mining Fund posted the best returns among Europe's 10 biggest
stock funds after investing in nickel producers in the second
quarter, when the metal rose to a record.

The fund advanced 18 percent during April, May and June,
more than double the growth of its nearest rival and more than
triple the 5 percent return for the average stock mutual fund
sold in Europe, according to data compiled by Bloomberg. The
Morgan Stanley Capital International World Index, which measures
stock performance globally, rose 5.6 percent over the period.


Read more at Bloomberg Stocks News

Malaysia's Export Growth Probably Gained in May on Commodities, Technology

(Bloomberg) -- Malaysia's exports probably grew at
the fastest pace in four months in May, helped by sales of
commodities and a recovery in demand for technology products.

Overseas sales grew 1.3 percent from a year earlier, after
gaining 0.9 percent in April, based on the median estimate of 19
economists in a Bloomberg survey. The trade ministry is due to
release the report in Kuala Lumpur at 12:01 p.m. tomorrow.


Read more at Bloomberg Emerging Markets News

Asian Stocks Rise to Record on Manufacturing Outlook, Metals; Honda Gains

(Bloomberg) -- Asian stocks rose to a record after
reports indicated that manufacturing in the U.S. and Europe is
picking up, and prices of metals and crude oil climbed.

Honda Motor Co. and Samsung Electronics Co. led gains on
speculation demand for their exports will be sustained. BHP
Billiton Ltd., the world's biggest mining company and Australia's
largest oil explorer, advanced to a high.


Read more at Bloomberg Stocks News

South Korean Stocks Advance; Shipbuilders Lead Gains on Additional Orders

(Bloomberg) -- South Korean stocks rose to the
highest in almost two weeks. Hyundai Heavy Industries Co. led
gains among shipbuilders after some announced new orders.

The Kospi index climbed 19.53, or 1.1 percent, to 1790.88 as
of 9:12 a.m. in Seoul. The Kosdaq added 1.3 percent to 794.38.
Kospi 200 futures expiring in September advanced 1 percent to
228.25, while the underlying index gained 1.1 percent to 227.15.


Read more at Bloomberg Stocks News

UPDATE 1-California commission not backing Calpine plant

(Reuters) - SAN FRANCISCO, July 2 - The California Energy
Commission said on Monday its staff cannot recommend power
producer Calpine Corp.'s Russell City Energy Center
project in Hayward, California, citing a possible aviation
hazard.




The CEC said warm air rising from the proposed plant's
steam stacks and cooling tower could be a hazard for aircraft
in the approach zone to the Hayward Executive Airport in the
San Francisco area.


Read more at Reuters.com Bonds News

Australian Dollar Strengthens to 22-Year High on Wider Bond Yield Spread

(Bloomberg) -- The Australian dollar gained to an
18-year high as the yield spread between the nation's two-year
bonds and Treasuries stayed near the widest in two months.

The currency gained a fourth day before a government report
that's expected by economists to show retail sales accelerated
in May, which may add to speculation the Reserve Bank of
Australia will raise interest rates. Investors sold the U.S.
dollar amid concern losses in the subprime mortgage sector may
weaken the housing market and spill into the broader economy.


Read more at Bloomberg Currencies News

UPDATE 1-Thomas & Betts to buy Danaher's power quality unit

(Reuters) - Separately, the electrical components maker also said it
acquired Drilling Technical Supply SA, a privately held French
manufacturer of hazardous lighting and electrical controls, for
about $20 million.




For 2007, the acquisitions will contribute about $70
million to revenue and have a negligible net impact on earnings
per share due to the amortization of acquisition-related
intangible assets, the company said in a statement.


Read more at Reuters.com Mergers News

S&P 500 adds American Capital, drops Dollar General

(Reuters) - Shares of companies joining the S&P 500 often rise because
many portfolio managers try to track the index, and are
required to buy shares of companies that enter it.




American Capital shares closed Monday up 48 cents at $43.00
on the Nasdaq, but rose after-hours 4.3 percent to $44.85
within minutes of the S&P announcement.


Read more at Reuters.com Mergers News

Mexican stocks rise after S&P upgrades debt outlook

(Reuters) - The IPC stock index gained 0.87 percent to 31,420.69
points.




The peso strengthened 0.46 percent in local
trading to 10.762 per dollar.


Read more at Reuters.com Bonds News

UPDATE 2-Chip sales grew 2.4 percent in May

(Reuters) - Sales in May were $20.3 billion, up 1.2 percent from the
$20.0 billion reported in April, the Semiconductor Industry
Association said in a report.




The collapse in memory prices this year has caused many
analysts to lower their overall sales forecasts for the chip
industry, which grew nearly 9 percent last year to $274
billion.


Read more at Reuters.com Market News

US STOCKS-Wall St. rallies on deal news, factory data

(Reuters) - NEW YORK, July 2 - U.S. stocks began the new
quarter with a rally on Monday, boosted by a new wave of
takeover activity and data showing a pickup in manufacturing
activity in June.




A surprise rise in the Institute for Supply Management's
factory index to its highest in more than a year helped to lift
shares of large manufacturers, such as Caterpillar Inc.
and United Technologies Corp.


Read more at Reuters.com Bonds News

New York Crude Oil Rises to 10-Month High on Supply Outlook for End 2007

(Bloomberg) -- Crude oil rose to a 10-month high on
expectations of higher demand and lower inventories later in the
year.

UBS AG, Europe's largest bank by assets, raised its 2007
forecast for West Texas Intermediate by 6.5 percent to $65 a
barrel from $61 because of low inventories and strong demand. Oil
demand peaks in the fourth quarter, when refiners make heating
fuel for the Northern Hemisphere winter. Gasoline demand in the
U.S., the world's biggest oil user, usually rises in summer


Read more at Bloomberg Energy News

FDA adds black box to Genentech asthma drug Xolair

(Reuters) - Xolair, given as an injection and known generically as
omalizumab, is approved to treat adults and adolescents age 12
and above for moderate to severe asthma.




The FDA has warned that anaphylaxis, a dangerous
inflammatory reaction characterized by shortness of breath,
rash, wheezing and low blood pressure, occurs in about one in
one thousand patients taking the medication.


Read more at Reuters.com Government Filings News

Dollar Approaches All-Time Low Against the Euro on Interest-Rate Outlook

(Bloomberg) -- The dollar dropped to a 26-year low
versus the British pound and approached the weakest level against
the euro on speculation the Federal Reserve will keep borrowing
costs unchanged while other central banks extend their increases.

Investors sold the U.S. currency amid concern losses in the
subprime mortgage sector may weaken the housing market and spill
over into the broader economy, dimming the allure of U.S. assets.
The Bank of England is forecast to boost interest rates while the
European Central Bank may signal increases this week.


Read more at Bloomberg Currencies News

UPDATE 2-Dominion selling gas assets to Linn Energy

(Reuters) - Shares of Linn Energy were 12.6 percent higher, up $4.16
to $37.07 in afternoon trading on Nasdaq. Dominion stock rose
modestly, up 45 cents, or 0.5 percent, to $86.76 on the New
York Stock Exchange.




Analysts had expected Dominion's Mid-Continent assets,
which are located primarily in Oklahoma, to fetch a purchase
price between $1.7 billion to $2 billion.


Read more at Reuters.com Bonds News

UPDATE 1-Chicago futures mkts post record volume in June

(Reuters) - The Chicago Mercantile Exchange , the largest U.S.
futures market, said on Monday that June's daily trading volume
averaged 8 million contracts.




Volume was up 31 percent from May and 25 percent higher
than June 2006.


Read more at Reuters.com Mergers News

European Auto-Parts Makers May Be Damaged by Buyouts, Moody's Report Says

(Bloomberg) -- European bonds advanced, pushing 10-
year yields to the lowest in more than three weeks, as investors
sought the safety of government debt after terrorists targeted
central London and Glasgow.

Benchmark two-year yields fell the most in more than a week
after London police found two cars packed with explosive
materials on June 29 and suspected terrorists crashed a Jeep into
the terminal entrance of Glasgow International Airport the next
day. Five people have been arrested and the Home Office raised
its threat assessment to ``critical,'' the highest level, meaning
further attacks are expected imminently.


Read more at Bloomberg Bonds News

Dollar Declines to 26-Year Low Against the Pound on Interest-Rate Outlook

(Bloomberg) -- The dollar fell to a 26-year low
versus the British pound and approached the weakest level against
the euro on speculation the Federal Reserve will keep borrowing
costs unchanged while other central banks extend their increases.

The U.S. currency also declined the most in more than three
months versus the yen after terrorists targeted central London
and Glasgow, Scotland, prompting investors to pare holdings of
riskier assets such as equities and emerging-market assets funded
by loans in Japan, a practice known as the carry trade.


Read more at Bloomberg Currencies News

Israel's ECI Telecom to be bought for $1.2 bln

(Reuters) - TEL AVIV, July 2 - Israel's ECI Telecom Ltd. said it has agreed to be acquired by a group of investors led by Swarth Group for about $1.2 billion, sending the shares up nearly 5 percent.



ECI shareholders will receive $10 per share in cash on closing, representing a premium of 22 percent over ECI's average closing share price during the 30 trading days to June 15, the telecom equipment maker said in a statement.


Read more at Reuters.com Mergers News

US STOCKS-Wall St gains on data, takeover news

(Reuters) - NEW YORK, July 2 - U.S. stocks rose on Monday,
lifted by takeover news and data showing stronger manufacturing
growth in June even as price pressures eased.




As the data reassured investors about the economy, shares
of large industrial companies such as Caterpillar Inc.
and Honeywell International gained.


Read more at Reuters.com Bonds News

Valeo, PAI fail to agree deal in takeover talks

(Reuters) - A spokeswoman for Valeo had no immediate comment and company
offials said the group was likely to make a statement after
market close. PAI declined to comment.




Valeo has been trying to fend off pressure by its biggest
shareholder, U.S. investment fund Pardus, to review its
strategy.


Read more at Reuters.com Mergers News

U.S. Stocks Advance After Manufacturing Growth Accelerates; ADM Rises

(Bloomberg) -- U.S. stocks rose after a private
report showed manufacturing growth accelerated in June to the
highest in 14 months.

Archer Daniels Midland Co., the biggest grain processor,
gained after Banc of America upgraded the stock to ``buy.''
Costco Wholesale Corp., the largest U.S. warehouse club,
climbed after Goldman, Sachs & Co. advised buying the shares.


Read more at Bloomberg Stocks News

Gramercy Capital to sell stake in JV to SL Green

(Reuters) - Separately, Gramercy said it has agreed to modify its $900
million secured repurchase facility with Wachovia Securities
LLC and Goldman Sachs Mortgage Co.





Read more at Reuters.com Bonds News

Platinum, Palladium Rise in New York on Demand for Haven, Weakening Dollar

(Bloomberg) -- Platinum rose for a fourth-straight
session in New York as terrorism concerns and a drop in the
dollar boosted demand for precious metals as alternative
investments. Palladium also gained.

Some investors bought metals as a haven after an attack on
Glasgow International Airport and the discovery of two car bombs
in London. Platinum, traded in dollars, also gained as the
dollar fell to the lowest level in more than a month against the
euro and weakened against the yen.


Read more at Bloomberg Commodities News

Penn Virginia acquires two coal reserves

(Reuters) - The company said it funded the acquisitions using its
credit facility.





Read more at Reuters.com Mergers News

Crude Oil Falls From 10-Month High on Signs Gasoline Supplies May Increase

(Bloomberg) -- Crude oil fell from near a 10-month high
in New York on speculation U.S. gasoline inventories would increase
as refineries increased output.

Crude oil for August delivery fell as much as 62 cents, or 0.9
percent, to $70.06 a barrel in after-hours electronic trading on
the New York Mercantile Exchange. The contract traded at $70.10 at
9:13 a.m. in New York.


Read more at Bloomberg Commodities News

GLOBAL ECONOMY-Europe factories flourish in June, Japan's slip

(Reuters) - PARIS, July 2 - Germany lifted the overall rate of
growth in the euro zone's manufacturing sector to a 4-month high
in June but growth slowed in other key European countries and in
Japan, monthly business surveys show.




Surveys of purchasing managers at thousands of companies
across the globe showed growth continued everywhere -- with
notable accelerations in Germany and Spain and eye-catching
slowdowns in growth rates in Britain and above all Japan.


Read more at Reuters.com Economic News

Cemig, Cencosud, Grupo Imsa, Petrobras, TV Azteca: Latin Equity Preview

(Bloomberg) -- The following stocks may make
significant gains or losses in Brazil, Chile and Mexico
today. Symbols are in parentheses after the company name, and
stock prices are from the last session.

In Brazil, preferred shares are the most commonly traded
class of stock.


Read more at Bloomberg Stocks News

UPDATE 1-Citigroup buys Automated Trading Desk for $680 mln

(Reuters) - NEW YORK, July 2 - Citigroup Inc. said on Monday it agreed to buy Automated Trading Desk for $680 million to increase its ability to allow clients worldwide to trade stocks electronically.



The largest U.S. bank said it will pay $102.6 million in cash and issue about 11.17 million shares. It expects the transaction to close in the third quarter, pending regulatory approval.


Read more at Reuters.com Bonds News

Copper Rises to Six-Week High as Strikes Squeeze Stockpiles; Zinc Advances

(Bloomberg) -- Copper rose to a six-week high in
London on speculation strikes may put a squeeze on supplies as
inventories of the metal shrink. Zinc and nickel also advanced.

Copper stockpiles monitored by the London Metal Exchange
fell 2,100 metric tons, or 1.8 percent, to an eight-month low of
112,600 tons, the exchange said today in a daily report. Labor
disputes may curb production at mines in Chile owned by Codelco,
the world's biggest copper producer, while a strike is looming
at Dona Ines de Collahuasi, the country's third-largest mine.


Read more at Bloomberg Commodities News

UPDATE 1-Airvana sees $8-$10/share price band for IPO

(Reuters) - Morgan Stanley, Deutsche Bank Securities, Lehman Brothers
and UBS Investment Bank were underwriting the IPO, the company
said in an amended filing with the U.S. Securities and Exchange
Commission.




Airvana has granted the underwriters the right to purchase
about 1.25 million more shares to cover over-allotments.


Read more at Reuters.com Bonds News

Japan's Shares Gain, Led by Mitsui, Trading Houses, on Oil, Rating Call

(Bloomberg) -- Japanese stocks advanced for a third
day, led by trading companies such as Mitsui & Co., after the
price of oil climbed to a 10-month high and a brokerage gave the
company its most bullish recommendation.

Oil advanced 1.6 percent to close above $70 a barrel last
week. Mitsubishi UFJ Securities Co. initiated coverage of Mitsui
with a ``strong outperform'' rating.


Read more at Bloomberg Stocks News

Aveng expects FY headline EPS up 100-120 pct

(Reuters) - South Africa's Aveng on Monday said full year headline earnings per share and earnings per share is expected to increase as much as 120 percent.

The expected 100-120 percent increase in headline EPS and EPS excluded the capital profit of 6.4 billion rand from the sale of its stake in the local unit of Switzerland's Holcim.


Read more at Reuters Africa

UPDATE 2-Taiwan's Asustek to split up in January

(Reuters) - TAIPEI, July 2 - Asustek Computer Inc. ,
the world's top maker of PC motherboards, said on Monday it
will split its contract manufacturing from its branded
businesses in January to focus on brand building and become
more competitive.




The Taiwan firm will also separate its contract
manufacturing, or original equipment manufacturing , into
two units: Pegatron, specialising in PC-related products, and
Unihan, focusing on casing, modules and non-PC goods.


Read more at Reuters.com Mergers News

Copper Rises to Six-Week High as Stikes Squeeze Stockpiles, Zinc Advances

(Bloomberg) -- Copper rose to a six-week high in
London on speculation strikes may put a squeeze on supplies as
inventories of the metal dwindle. Zinc and nickel also advanced.

Copper stockpiles monitored by the London Metal Exchange
fell 2,100 metric tons, or 1.8 percent, to an eight-month low of
112,600 tons, the exchange said today in a daily report. Labor
disputes may curb production at mines in Chile owned by Codelco,
the world's biggest copper producer, while a strike is looming
at Dona Ines de Collahuasi, the country's third-largest mine.


Read more at Bloomberg Commodities News

Corporate Bond Risk Rises to 3-Month High in Europe Led by Boots, Virgin

(Bloomberg) -- The risk of owning European corporate
bonds rose to a three-month high today, 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 increased as
much as 12,000 euros to 245,000 euros in London at 9:55 a.m.,
according to JPMorgan Chase & Co.


Read more at Bloomberg Bonds News

Kurdish Oil Riches Lure Wildcatters Unswayed by Deaths, Carnage in Iraq

(Bloomberg) -- A few miles outside the village of
Tawke in northeastern Iraq, black smoke billows over the green
hills as a 100-foot fire rages unchecked.

Najman Yousef, a former Kurdish guerrilla, inspects the
scene. This blaze, unlike the attacks roiling the rest of Iraq,
is a positive sign: It's burning the excess oil gushing from one
of the first wells drilled since the fall of Iraqi dictator
Saddam Hussein four years ago.


Read more at Bloomberg Exclusive News

European Bonds Gain as U.K. Terror Attacks Prompt Investors to Seek Safety

(Bloomberg) -- European government bonds advanced as
investors sought the safety of fixed-income debt following an
attack on the U.K.'s Glasgow International Airport and two
attempted London car bombings.

The yield on 10-year German bunds, Europe's benchmark, fell
to a three-week low, as the U.K. Home Office raised its terrorist
threat assessment to ``critical,'' the highest level, meaning an
attack is expected imminently. Bonds were also underpinned by
coupon payments by the Italian and German governments due this
week, which investors tend to reinvest.


Read more at Bloomberg Bonds News

European stocks slip, security fears hit airlines

(Reuters) - European stocks slipped in early trade on Monday following a late sell-off in U.S. stocks on Friday as worries over the impact of rising borrowing costs continue to dampen investor sentiment.

At 0716 GMT, the pan-European FTSEurofirst 300 index was down 0.21 percent, at 1,601.91.


Read more at Reuters Africa

AirAsia to Order 25 Airbus A320s Planes Valued at $1.8 Billion, People Say

(Bloomberg) -- AirAsia Bhd., Southeast Asia's
largest budget carrier, plans to place an order for 25 single-
aisle planes, valued at $1.8 billion from Airbus SAS, two people
with direct knowledge of the deal said.

AirAsia is converting options for A320 planes that were
part of an order placed in January, said the people, who
declined to be identified before details are made public.


Read more at Bloomberg Emerging Markets News