Treasuries Are Little Changed Before Yellen Speech on U.S. Economic Growth

(Bloomberg) -- U.S. Treasuries were little changed
before a speech from Federal Reserve Bank of San Francisco
President Janet Yellen that may highlight strength in the economy.

Notes may extend a decline from yesterday after Philadelphia
Fed President Charles Plosser said growth will accelerate. Fed
Governor Kevin Warsh said investor losses from subprime-mortgage
delinquencies don't appear to pose a risk to the financial system.


Read more at Bloomberg Bonds News

UPDATE 2-Rio Tinto near deal to buy Alcan for $37 bln-WSJ

(Reuters) - SYDNEY, July 12 - Global miner Rio Tinto
was near a deal to buy Canadian aluminium giant Alcan
Inc. for about $100 per share, or $37 billion,
The Wall Street Journal Online reported on Thursday.




A final deal should be announced early on Thursday, the
Journal said, citing people familiar with the transaction.


Read more at Reuters.com Mergers News

U.S. Investigators Used Fake Firm in Scheme to Buy Radioactive Materials

(Bloomberg) -- Congressional investigators, using a
fake West Virginia company, were able to get a license from the
U.S. government to buy radioactive materials and later altered
the license so that they could purchase an unlimited amount.

The materials the investigators could have purchased include
Americium-241 and Cesium-137, which have been identified by the
government as potentially being used by terrorists in a device to
create a ``dirty bomb.'' A dirty bomb would release radioactive
material, forcing evacuations and potentially increasing the
risks of cancer to the people exposed.


Read more at Bloomberg Energy News

Air Canada, Cameco May Delay Production in Mine: Canadian Equity Preview

(Bloomberg) -- The following is a list of companies
whose shares may have unusual price changes in Canadian markets.
This preview includes news that broke after markets closed.
Symbols are in parentheses after company names and prices are
from the last close.

The Standard & Poor's/TSX Composite Index rose 34.16, or
0.2 percent, to 14,166.09.


Read more at Bloomberg Stocks News

Oil below $76, but gasoline worries offer support

(Reuters) - London Brent crude, seen as the best indicator of the global market, was up 7 cents at $75.51 a barrel by 0330 GMT, after sliding 96 cents on Wednesday.




U.S. crude edged up 9 cents at $72.65 after falling 25 cents a day earlier.


Read more at Reuters.com Hot Stocks News

Shenzhen Bourse Says It May Halt Trading in East China Engineering's Stock

(Bloomberg) -- The Shenzhen Stock Exchange said it
will halt trading in East China Engineering Science and
Technology Co., which debuts on the bourse today, for as much as
30 minutes to curb speculation should the share price surge
after trading begins.

East China Engineering, which provides services to the
chemical and petrochemical industries, will face a 30 minute
trading halt should the price increase reach 2.5 times the
opening price's premium to the stock's 20 yuan initial public
offering offer price. Suspensions of 15 minutes will be
triggered at 1.5 times and 1.9 times, and a warning
will be issued should 80 percent of the shares change hands,
the exchange said in a statement today.


Read more at Bloomberg Emerging Markets News

HSBC Brazil Fund Bets on Falling Interest Rates, Eschewing Commodities

(Bloomberg) -- HBSC Holdings Plc's Brazil Equity
Fund, the world's largest portfolio focusing on South America's
biggest economy, has quadrupled over five years by counting on
demand for the country's natural resources. Not anymore.

Manager Luiz Ribeiro is shifting the $1.8 billion fund away
from mining companies such as Cia. Vale do Rio Doce to take
advantage of domestic spending as Brazil grows at twice the pace
of the U.S. In the past year he's pulled 10 percent of his assets
away from natural resource stocks and put them into house
builders including Rossi Residencial SA, as well as store manager
Lojas Americanas SA.


Read more at Bloomberg Exclusive News

Japanese Small-Cap Stocks Rally Amid Fading Memories of Livedoor Fraud

(Bloomberg) -- Shares of Japan's smallest listed
companies, Asia's worst performers last year, are staging a
comeback as tougher accounting standards revive confidence in
earnings reports and consumer spending rebounds.

The Russell/Nomura Small Cap Index, whose 1,332 members
have an average market value of $630 million, has outperformed
the Nikkei 225 Stock Average in six of the last seven weeks. The
measure trailed the Nikkei in all but two of the previous 17
months after executives of Internet provider Livedoor Co. were
arrested in January 2006 for fabricating profits, sparking
investor concern about the finances of second-tier companies.


Read more at Bloomberg Exclusive News

JGBs track falling Treasuries, await BOJ vote tally

(Reuters) - A focal point is whether the BOJ board's vote -- assuming it
decides to keep rates on hold -- is unanimous or whether there
will be any dissenters seeking a rate rise.




"It would be a surprise if there are no votes seeking a rate
rise," said Chotaro Morita, interest rate strategist for Deutsche
Securities.


Read more at Reuters.com Bonds News

South Korea's Kospi Index Rises, Led by Hyundai Heavy, Daewoo Shipbuilding

(Bloomberg) -- South Korea's benchmark stock index,
the Kospi Index, rose 0.88 percent at 9:05 a.m.

The index of 731 companies traded on the Korea Exchange rose
16.65 to 1,906.61. Among the stocks in the index, 410 rose, 109
fell and 212 were unchanged.


Read more at Bloomberg Stocks News

Sony Ericsson quarterly sales, profit rise

(Reuters) - Its report came shortly after bigger rival Motorola Inc. forecast a quarterly loss, blaming weak phone sales.




Sony Ericsson posted pretax profit of 327 million euros , up from 211 million euros a year ago.


Read more at Reuters.com Business News

UPDATE 1-Sony Ericsson quarterly sales, profit rise

(Reuters) - The cell phone venture of Sweden's Ericsson and
Japan's Sony Corp. , known for higher-end music
phones based on its Walkman brand, said it gained market share
in the quarter by selling lower priced phones that widened its
potential customer base.




Its report came shortly after bigger rival Motorola Inc.
forecast a quarterly loss, blaming weak phone sales.


Read more at Reuters.com Market News

GE, Abbott end $8 bln deal for diagnostics business

(Reuters) - CHICAGO, July 11 - General Electric Co. and Abbott Laboratories Inc. said on Wednesday they terminated a proposed $8 billion deal for the sale of two Abbott diagnostics units to the conglomerate.



The news sent shares of Abbott down about 3 percent in aftermarket trade.


Read more at Reuters.com Mergers News

UPDATE 1-Motorola sees 2nd-qtr loss, lower revenue

(Reuters) - Motorola, which also named a new head for its mobile
devices unit, said it expected a second-quarter net loss from
continuing operations ranging from 2 cents per share to 4 cents
per share on sales of $8.6 billion to $8.7 billion.




The company had previously forecast that second-quarter
sales would be essentially flat with first-quarter sales of
$9.4 billion.


Read more at Reuters.com Bonds News

Emerging debt-Spreads tighten as stocks support prices

(Reuters) - NEW YORK, July 11 - Investors' aversion to
emerging markets bonds decreased on Wednesday as concerns about
U.S. subprime mortgages abated slightly, allowing stocks and
other riskier assets to recover.




Yield spreads between emerging debt and U.S. Treasury
notes, an important measure of risk aversion, tightened 6 basis
points to 168 basis points on the benchmark JP Morgan's EMBI+
index .


Read more at Reuters.com Bonds News

House sends foreign investment overhaul to Bush

(Reuters) - The business-backed measure would tighten the oversight of deals by the inter-agency Committee on Foreign Investments in the United States' . It has already been approved by the Senate.




The House's 370-45 vote represents Congress' final response to last year's controversy over CFIUS approval of the purchase of some key U.S. port operations by state-owned Dubai Ports World.


Read more at Reuters.com Mergers News

US STOCKS-Wall St ends higher on earnings optimism

(Reuters) - The Dow Jones industrial average was up 76.49
points, or 0.57 percent, to end unofficially at 13,578.19. The
Standard & Poor's 500 Index was up 8.64 points, or 0.57
percent, to finish unofficially at 1,518.76. The Nasdaq
Composite Index was up 12.63 points, or 0.48 percent,
to close unofficially at 2,651.79.




Read more at Reuters.com Bonds News

Chaparral Steel profit up after agreeing to sale

(Reuters) - In April, Chaparral said its board was exploring strategic
options, including a possible sale of the company.




On Tuesday, Gerdau's North American unit Gerdau Ameristeel
Corp agreed to buy Chaparral for $4.22
billion.


Read more at Reuters.com Market News

GLOBAL MARKETS-U.S. stocks rise, bonds and dollar fall

(Reuters) - NEW YORK, July 11 - U.S. stocks turned higher on
Wednesday, tapping some of Exxon Mobil Corp.'s gains,
but the upswing sapped government bond prices while fears of
further woes in the subprime mortgage smacked the dollar.




The first drop in U.S. crude oil supplies in six weeks and
Lehman Brothers' decision to boost its price target for Exxon
helped lift the oil giant's shares 0.5 percent to $86.90.


Read more at Reuters.com Bonds News

Dollar falls to all-time low vs euro

(Reuters) - The low-yielding yen, on the other hand, fell against most currencies as investor appetite for risk tentatively recovered amd U.S. samidtock indexes rebounded from Tuesday's swoon.




Uncertainty regarding the deteriorating subprime industry on Tuesday caused the biggest decline in the dollar against the yen since mid-March.


Read more at Reuters.com Business News

Sallie Mae says buyers believe takeover threatened

(Reuters) - Sallie Mae in April accepted a takeover proposal from private equity firms J.C. Flowers & Co. and Friedman Fleischer & Lowe, as well as JPMorgan Chase & Co. and Bank of America Corp. .




On Wednesday, Sallie Mae said the acquiring group said it believes that current legislative proposals before the U.S. House of Representatives and U.S. Senate "could result in a failure of the conditions to the closing of the merger to be satisfied."


Read more at Reuters.com Hot Stocks News

Ameriprise unit fined in mutual fund kickback case

(Reuters) - The regulator also charged the broker, Michael Bullock,
with receiving more than $280,000 of improper compensation. It
said he failed to disclose the kickbacks to his union
retirement plan clients, even as he advised those clients to
maintain or include the fund company's mutual funds in their
plans.




Bullock worked in the Los Angeles area, and was employed by
Securities America for nearly 17 years before leaving last
month, the regulator said.


Read more at Reuters.com Government Filings News

UPDATE 1-Quebecor Media pulls $750 mln junk bond sale - KDP

(Reuters) - Quebecor had said proceeds of the bond sale were to be used
to finance its acquisition of Osprey Media Income Fund
, to buy all of the common shares of Nurun Inc. it
did not already own and to make a payment to the Carlyle
Group.




A spokesman for Quebecor Media could not immediately be
reached for comment.


Read more at Reuters.com Bonds News

Treasuries Decline First Time in Three Days on Stock Advance, Fed Comment

(Bloomberg) -- Treasuries declined for the first
time in three days as stocks advanced and Federal Reserve Bank
of Philadelphia President Charles Plosser said the housing slump
is unlikely to derail economic growth.

The drop in government bonds suggested investors' demand
for the safest debt prompted by the rout in subprime mortgages
may ease. Ten-year note yields earlier fell to the lowest in
more than a month after Moody's Investors Service and Standard &
Poor's warned about the credit quality of billions of dollars in
bonds backed by subprime loans.


Read more at Bloomberg Bonds News

Canadian Stocks Rise on Commodity Takeover Speculation; Alcan Leads Gains

(Bloomberg) -- Canadian stocks advanced on speculation
that record industrial metals prices will spur takeovers. Alcan
Inc. led the rally on a report that Rio Tinto Group is about to
trump Alcoa Inc.'s hostile bid for the Canadian aluminum producer.

Financial shares and utilities including Bank of Montreal and
TransAlta Corp. fell on concern they may be hurt by rising losses
in U.S. sub-prime mortgages and higher borrowing costs.


Read more at Bloomberg Stocks News

Home sales, prices to slip more this year: NAR

(Reuters) - The National Association of Realtors trimmed its sales forecast for the fifth straight month and also widened its predicted drop in existing home values.




The cloudy outlook for the housing sector comes a day after credit ratings agencies said loans offered to borrowers with damaged credit are shakier than earlier thought.


Read more at Reuters.com Economic News

Fed's Warsh says no systemic risk from subprime

(Reuters) - However, the Fed also sees the possibility of more losses ahead from the subprime shakeout, Warsh added.




"From the Federal Reserve's perspective, I think our overall view is that there are certainly losses, that we might not be at the bottom of this tumult," he said.


Read more at Reuters.com Government Filings News

Fed's Plosser-housing not derailing growth outlook

(Reuters) - "But the consequences of the declines in housing activity and house prices, in my view, have so far not derailed the prospect that economic growth will return toward trend at the end of 2007 and in 2008."




Plosser also said that problems in the subprime mortgage market have yet to significantly affect the financial system and that monetary policy should not focus on one particular asset class like housing prices. Subprime loans are extended to borrowers with spotty credit histories.


Read more at Reuters.com Bonds News

UPDATE 1-Fed: banks must improve hedge fund risk management

(Reuters) - Warsh, in prepared testimony before the U.S. House of
Representatives Financial Services Committee, said the Fed
shares the view that the most effective mechanism for limiting
systemic risks is strengthening market discipline among large,
global, commercial and investment banks.




"The recent growth of hedge funds presents some formidable
challenges to the achievement of public-policy objectives,
including significant risk-management challenges to market
participants," Warsh said. "If market participants prove
unwilling or unable to meet these challenges, losses in the
hedge fund sector could pose significant risks to financial
stability."


Read more at Reuters.com Government Filings News

Chico's, Compuware, ENSCO, NYSE Euronext, Yum! Brands: U.S. Equity Movers

(Bloomberg) -- The following is a list of companies
whose shares are having unusual price changes in U.S. exchanges
today. Stock symbols are in parentheses after company names.
Share prices are as of 10:10 a.m. New York time.

Oil-service companies: Merrill Lynch & Co. downgraded some
oil-service companies on concern that oil prices will fall and
producer demand will wane. Noble Corp. (NE US), GlobalSantaFe
Corp. (GSF US) and Diamond Offshore Drilling Inc. (DO US) were
cut to ``neutral'' from ``buy.''


Read more at Bloomberg Stocks News

Junk bond spreads widest since Dec. 2006 - Merrill

(Reuters) - Average junk bonds yield spreads ended on Tuesday at 312
basis points more than Treasuries, the widest since Dec. 5,
2006, when they were 314 basis points, according to Merrill
Lynch. Spreads had hit a record low of 241 basis points in
early June.




Junk bonds sold off on Tuesday after Standard & Poor's said
it was reviewing $12 billion worth of residential mortgage
securities for possible downgrades. Moody's Investors Service
later that day cut ratings on nearly 400 subprime-related bonds
as home loan delinquencies exceeded forecasts.


Read more at Reuters.com Bonds News

Florida to introduce tough greenhouse gas limits

(Reuters) - Gov. Charlie Crist was expected to sign executive orders at a global warming conference in Miami this week that will adopt tough pollution standards set by California and mimicked by other U.S. states.




The orders would impose new emission limits for automobiles and trucks, toughen energy conservation goals for state agencies and require state-owned vehicles to use alternative fuels such as ethanol and biodiesel.


Read more at Reuters.com Government Filings News

UPDATE 2-Wolverine World Wide profit up, forecast higher

(Reuters) - Wolverine said earnings rose to $15.5 million, or 28 cents
a share, in the second quarter ended on June 16 from $14.2
million, or 25 cents a share, a year earlier.




The results matched the analysts' average forecast,
according to Reuters Estimates.


Read more at Reuters.com Market News

US STOCKS-Wall Street opens flat after sell-off

(Reuters) - The Dow Jones industrial average was up 2.03 points,
or 0.02 percent, at 13,503.73. The Standard & Poor's 500 Index
was down 0.60 point, or 0.04 percent, at 1,509.52. The
Nasdaq Composite Index was up 0.40 point, or 0.02
percent, at 2,639.56.




Read more at Reuters.com Bonds News

Fortis Plans to Sell $2.8 Billion of Bonds to Help Fund ABN Amro Takeover

(Bloomberg) -- Fortis is seeking as much as 2 billion
euros ($2.8 billion) in a sale of bonds, the first step in
financing its part of a bid for ABN Amro Holding NV in what would
be the biggest financial-services takeover.

Fortis is selling notes that may be swapped for securities
convertible into stock, according to a statement from the company,
based in Brussels and the Dutch city of Utrecht. The notes would
automatically become stock three years after Fortis issues as much
as 15 billion euros of new equity in a rights offering. The debt
would be repaid at face value in 2008 if new shares aren't issued.


Read more at Bloomberg Bonds News

Canadian Stocks May Rise on Takeover Speculation; Alcan, TD Bank May Gain

(Bloomberg) -- Canadian stocks may advance on a report
that Rio Tinto Group is about to trump Alcoa Inc.'s bid for Alcan
Inc., the world's third-largest aluminum maker.

A bidding war for Alcan together with Gerdau Ameristeel
Corp.'s offer for U.S. steelmaker Chaparral Steel Co. may also
boost Canadian raw-materials producers including Teck Cominco Ltd.,
as investors speculate record prices for such metals as lead will
trigger more takeovers in the global mining and materials industry.


Read more at Bloomberg Stocks News

India's Coffee Output May Be Little Changed Next Year, Coffee Board Says

(Bloomberg) -- Coffee output in India, the world's
sixth-biggest producer, may be little changed at 291,000 tons in
the year starting October, the state-run Coffee Board said.

Production of robusta beans, used to make instant coffee,
may total 190,250 tons and output of the milder-tasting arabica
may reach 100,750 tons, S. Radhakrishnan, deputy director at the
board, said today in a phone interview from Bangalore. The board
in December had forecast this year's production at 288,000 tons.


Read more at Bloomberg Commodities News

Dollar Rebounds From 1-Month Low Versus Yen as U.S. Stock Futures Advance

(Bloomberg) -- The dollar rebounded from a one-
month low against the yen and pared a decline versus the euro as
U.S. stock futures were little changed, suggesting investors may
slow a flight out of risky assets.

The U.S. currency dropped earlier after Moody's Investors
Service yesterday cut ratings on $5.2 billion of bonds backed by
U.S. subprime mortgages, pushing down shares of banks and
builders. Investors switched to the safety of government bonds
on concern that a U.S. housing slowdown will slow the world's
biggest economy and curb global growth.


Read more at Bloomberg Currencies News

Dollar Pares Declines Versus Yen, Euro as U.S. Stocks Are Little Changed

(Bloomberg) -- The dollar pared a drop versus the
yen and euro as U.S. stock futures were little changed,
suggesting investors may slow a flight out of risky assets.

The U.S. currency dropped earlier after Moody's Investors
Service yesterday cut ratings on $5.2 billion of bonds backed by
U.S. subprime mortgages, pushing down shares of banks and
builders. Investors switched to the safety of government bonds
on concern that a U.S. housing slowdown will slow the world's
biggest economy and curb global growth.


Read more at Bloomberg Currencies News

Yen Gains to Four-Week High Versus Dollar as Subprime Concern Hurts Stocks

(Bloomberg) -- The yen strengthened to the highest
in more than a month versus the dollar as declines in world
stock markets prompted traders to reduce investments in assets
funded by borrowing in Japan.

The yen rose against all 16 most-actively traded currencies
after Moody's Investors Service cut ratings on $5.2 billion of
bonds backed by U.S. subprime mortgages, pushing down shares of
banks and builders. Investors switched to the safety of
government bonds on concern a U.S. housing slowdown will weigh
on the world's biggest economy and curb global growth.


Read more at Bloomberg Currencies News

Hungary's Government and Central Bank in Talks About Forint's Trading Band

(Bloomberg) -- Hungary's government and the central
bank are in discussions about the forint's trading limits, though
no decision or timetable have been set, the Finance Ministry said.

``The economic debate with the central bank is underway,''
Ferenc Pichler, a spokesman at the ministry, said in an e-mailed
response to Bloomberg's questions today. ``Scrapping the trading
band isn't on the agenda.''


Read more at Bloomberg Emerging Markets News

U.K. Electricity Declines on Spare Generating Capacity, French Price Drop

(Bloomberg) -- U.K. power for delivery a day ahead
declined as forecasts predicted an increase in spare generation
capacity and prices in France fell.

Electricity for day-ahead baseload delivery in the U.K.
fell as much as 7.8 percent to 24.20 pounds ($49.10) a megawatt
hour, according to prices on Bloomberg from the broker GFI Group
Inc. It traded at 24.95 pounds a megawatt hour at 11:08 a.m. in
London.


Read more at Bloomberg Energy News

Gold hits one-month high on weaker dollar

(Reuters) - Spot gold hit a high of $665.90 an ounce and was quoted at $664.95/665.55 by 1002 GMT, against $662.85/663.45 late in New York on Tuesday.




"Gold could soon see another surge of speculative interest, should the dollar fall below key chart support," said James Moore, precious metals analyst at TheBullionDesk.com.


Read more at Reuters.com Hot Stocks News

EU strikes gas deal with Algeria, Sonatrach

(Reuters) - The European Union and Algeria struck a deal on gas contracts between the 27-member bloc and state energy company Sonatrach which the EU executive said would help to create a single EU-wide gas market.

"The agreement reached constitutes a major breakthrough in our relations with one of Europe's most important suppliers for natural gas and eliminates an important obstacle for the creation of a single EU-wide market in gas," Competition Commissioner Neelie Kroes said on Wednesday.


Read more at Reuters Africa

North Sea Ekofisk Crude Oil Daily Shipments May Rise 13 Percent in August

(Bloomberg) -- Daily shipments of North Sea Ekofisk
crude, part of the price benchmark for almost two-thirds of the
world's oil, will rise at least 12.6 percent in August.

Tankers are set to load at least 483,871 barrels a day of
Ekofisk crude in August, up from 429,839 in July, according to
the loading program of operator ConocoPhillips. Traders'
estimates of the number of cargoes vary from 23 to 25.


Read more at Bloomberg Energy News

Oil eases towards $76 ahead of U.S. data

(Reuters) - U.S. crude was down 20 cents at $72.61.




Energy analysts have said speculative and institutional money pouring into crude oil futures is a major factor in Brent's more than $6 rise since late July.


Read more at Reuters.com Hot Stocks News

Court annuls EU move on De Beers diamonds trade

(Reuters) - A top European court on Wednesday struck down a decision by the European Commission which forced diamond producer De Beers to stop buying rough diamonds from Alrosa of Russia, the second-largest producer.

"The Court of First Instance annuls the Commission's decision making binding the commitments proposed by De Beers to cease all purchases of rough diamonds from Alrosa," the court said in a statement.


Read more at Reuters Africa

European Stocks Decline; UBS, Siemens, Royal Dutch Shell Lead Drop

(Bloomberg) -- European stocks fell for a second
day, led by banks and exporters, on concern mounting U.S.
mortgage losses will hamper the world's biggest economy and slow
global expansion.

UBS AG, the world's largest money manger, and engineering
company Siemens AG led declines. Royal Dutch Shell Plc paced the
drop after Goldman, Sachs & Co. recommended investors sell the
oil producer's shares.


Read more at Bloomberg Stocks News

JGBs jump as Treasuries extend rally in Asia

(Reuters) - U.S. 10-year Treasury futures rose sharply and the benchmark
10-year yield dipped below 5.0 percent in Asia, after jumping on
Tuesday as worries about the subprime mortgage market prompted
investors to seek the safety of U.S. government bonds.




Treasuries added to the gains they had made on Tuesday, when
Standard & Poor's said it might cut its ratings on $12.1 billion
of subprime mortgage-related debt on expectations of an 8 percent
drop in U.S. home prices and more mortgage defaults.


Read more at Reuters.com Bonds News

Hong Kong's Stocks Slide for First Time in Seven Days; Yue Yuen Drops

(Bloomberg) -- Hong Kong's stocks fell for the first
time in seven days as investors judged excessive a rally that
drove the Hang Seng Index to a record. China Construction Bank
Corp. led the drop.

Shares also declined as earning reports from U.S. retailers
heightened concern a weak housing market is hurting consumer
spending. Yue Yuen Industrial (Holdings) Ltd. slipped.


Read more at Bloomberg Stocks News

Adidas, Norddeutsche Affinerie, ThyssenKrupp: Germany's Equity Preview

(Bloomberg) -- The following stocks may rise or fall
in German markets. Stock symbols are in parentheses after the
company names and prices are from the Xetra close unless
otherwise stated.

DAX futures expiring in September slid 94.50, or 1.2
percent, to 7944 at 8:22 a.m. in Frankfurt. The DAX fell 1.4
percent to 7964.76 on the Xetra electronic-trading system.


Read more at Bloomberg Stocks News