JGB futures dip in sluggish trade, dented by stocks

(Reuters) - Trade was subdued with no major domestic events scheduled for
the rest of this week, leaving market players to take their cue
from the performance of stocks and Treasuries.




Investors are girding for the Bank of Japan to raise
overnight rates to 0.75 percent from the current 0.50 percent
next month and will be looking ahead to next week's data on
consumer prices to help confirm those expectations.


Read more at Reuters.com Bonds News

Turkish Stock Market Rallies as Investors Anticipate Erdogan Re-Election

(Bloomberg) -- Turkish stocks, cheaper than equities
in the markets of the European Union, are attracting investors
who say this year's rally is just the beginning.

Prime Minister Recep Tayyip Erdogan, who has sold state
industries and reduced the budget deficit, will retain power in
this weekend's elections, according to six opinion polls. The
mostly Muslim nation of 72 million has had 21 straight quarters
of economic growth and inflation is near a five-year low.


Read more at Bloomberg Stocks News

Nestle held merger talks with PepsiCo - WSJ

(Reuters) - A spokesman for Nestle was not immediately available for
comment.




Read more at Reuters.com Mergers News

Morgan Keegan's Kelsoe Loses Top Mutual-Fund Ranking on Subprime Bond Rout

(Bloomberg) -- Jim Kelsoe, a top-ranked junk-bond
fund manager since 2000, dropped to last place this year because
of losses tied to mortgages for people with poor credit.

Kelsoe's $1.1 billion Regions Morgan Keegan Select High
Income Fund fell 4.2 percent from the beginning of 2007 as
defaults on subprime home loans reached a five-year high. The
mutual fund had 15 percent of assets in the subprime market and
at least the same amount in other mortgage debt in May.


Read more at Bloomberg Bonds News

Axtel, Multifood, Tam, Vale do Rio Doce: Latin American 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-Mexican Kimber says profit down 8 pct in Q2

(Reuters) - The firm, minority owned by U.S.-based Kimberly-Clark Corp.
, said the results were "in general unsatisfactory."




Kimber said it earned 816 million pesos in
the April-June period, versus 890 million pesos a year ago.


Read more at Reuters.com Market News

China's Yuan Rises to July 2005 High as Economy Expands More Than Forecast

(Bloomberg) -- The yuan rose to the highest since
the end of a dollar link in July 2005 after a government report
showed the economy expanded at the fastest pace in 12 years,
adding to speculation China will pursue faster gains to curb
inflation.

``The central bank will, in an appropriate way, guide the
yuan to faster appreciation,'' said Li Huiyong, an economist at
Shenyin Wanguo Research and Consulting Co. ``China definitely
needs to tighten its monetary policy, both allowing yuan gains
and higher interest rates.''


Read more at Bloomberg Currencies News

UPDATE 7-Scores of bodies pulled from Brazil plane crash

(Reuters) - SAO PAULO, July 18 - Rescue workers in Brazil
pulled burned bodies from smoking wreckage and collapsed
buildings on Wednesday after about 200 people were killed in
the country's worst air disaster.




The Airbus A320 was carrying 186 passengers and
crew when it slid off a short, rain-soaked runway at Sao
Paulo's Congonhas airport late on Tuesday, hurdling a busy road
before slamming into a gas station and cargo terminal.


Read more at Reuters.com Bonds News

Australian Stocks Climb, Led by BHP Billiton on Higher Metals, Oil Prices

(Bloomberg) -- Australia's benchmark stock index,
the S&P/ASX 200 Index, rose 0.22 percent at 10:05 a.m.

The index of 201 companies traded on the Australian Stock
Exchange rose 14.10 to 6,343.20. Among the stocks in the index,
106 rose, 19 fell and 76 were unchanged.


Read more at Bloomberg Stocks News

McDonald's Japan, Fuji Heavy, Sankyo-Tateyama, SBI: Japan Equity Preview

(Bloomberg) -- The following stocks may move in
Japanese markets. Prices are as of the close of trading.
Statements were released after the close. Stock symbols are in
parentheses.

Chugai Pharmaceutical Co. (4519 JT): The Japanese unit of
Roche Holding AG said first-half net income rose 12 percent to
about 21.1 billion yen ($173 million), beating the company's
forecast, on higher sales of the Tamiflu antiviral medicine. The
company projected on April 23 that first-half net income would be
17.8 billion yen. Chugai slid 15 yen, or 0.7 percent, to 2,025.


Read more at Bloomberg Stocks News

UPDATE 1-Astoria 2nd-quarter profit falls 29 pct

(Reuters) - Net income for the Lake Success, New York-based company
fell to $34.1 million, or 37 cents per share, from $47.8
million, or 49 cents per share, a year earlier.




"While the recent increase in long-term interest rates is
positive, there is a lag in the benefit to Astoria, as our
interest-bearing liabilities continue to reprice somewhat
faster than our interest-earning assets," Astoria Chief
Executive George Engelke Jr. said in a statement.


Read more at Reuters.com Market News

Cocoa Futures Gain for Second Day on Speculation Demand Will Exceed Supply

(Bloomberg) -- Cocoa rose in New York for the second
day as global demand for the beans used to make chocolate is
expected to exceed supply and the weaker dollar attracts
speculators to buy contracts in the U.S.

Consumption may exceed supply by as much as 125,000 metric
tons this year, according to the London-based International Cocoa
Organization. Dry weather has harmed crops in Ivory Coast,
Ghana and Indonesia, the three largest producers. The British
pound rallied to the highest against the dollar in 26 years,
making it cheaper to buy futures in New York than London.


Read more at Bloomberg Commodities News

International Business Machines and Macy's Calls Jump: U.S. Option Movers

(Bloomberg) -- The following is a list of companies
with unusual option trading in U.S. exchanges today. Stock
symbols are in parentheses after company names. Option trading
and stock prices are as of 3:15 p.m. in New York.

Each call option gives investors the right to buy 100 shares
of a company at a certain price, called the strike price, by a
given date. A put conveys the right to sell 100 shares.


Read more at Bloomberg Stocks News

Lead Tops Record, Extends Rally on Supply Disruptions; Nickel, Tin Rally

(Bloomberg) -- Lead rose to a record in London for
a sixth session on speculation that global production will fail
to meet demand after a U.S. smelter was damaged by an explosion.
Nickel rallied and tin climbed the most in more than two months.

Doe Run Resources Corp., the world's second-largest lead
refiner, said yesterday output at its Herculaneum smelter in
Missouri was cut in half by the blast. Prices for the metal,
used mostly in car batteries, jumped 94 percent this year and
have outpaced other industrial metals as supplies from Australia
were disrupted and demand improved.


Read more at Bloomberg Commodities News

UPDATE 2-Mexico unveils $37 billion transport facelift

(Reuters) - MEXICO CITY, July 18 - Mexico will build three
new airports serving beach resorts and construct thousands of
miles of new roads as part of a $37 billion transport facelift
launched on Wednesday.




The five-year public-private infrastructure package also
includes upgrades for sea ports and Mexico's creaking railway
network.


Read more at Reuters.com Bonds News

MBIA, Ambac Risk Trading at Junk Levels on Subprime Default Concerns

(Bloomberg) -- The perceived risk of holding the
bonds of MBIA Inc. and AMBAC Financial Group Inc., owners of the
two largest AAA rated bond insurance companies, has jumped to
speculative grade on worries about subprime-mortgage defaults.

Credit-default swaps based on $10 million of MBIA's bonds
more than doubled in the past month to $114,000, while Ambac
contracts tripled to $91,000, according to CMA Datavision in
London. Those levels imply a credit rating of Ba2 for MBIA and
Ba1 for Ambac, the two highest junk ratings, according to the
credit-strategy group at Moody's Investors Service.


Read more at Bloomberg Bonds News

MatlinPatterson still interested in Alitalia-source

(Reuters) - MatlinPatterson was the last remaining contender in the
auction after the front-runner, Air One, pulled out Tuesday
night.




MatlinPatterson, which recently raised a $5 billion fund,
has been coordinating with U.S. buyout firm TPG and could still
lead a joint offer for the airline, the source said.


Read more at Reuters.com Mergers News

Humana, I2, NovaStar, Pfizer, Piper, SemGroup, Warner: 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 11:40 a.m. New York time.

Brazilian airline American depositary receipts fell after a
passenger plane owned by Tam SA crashed on landing at Sao Paulo's
domestic airport, killing as many as 200 people in the country's
worst air disaster. Tam's ADRs (TAM US), each worth one share,
fell $2.37, or 6.6 percent, to $33.46. Gol Linhas Aereas
Inteligentes SA's ADRs (GOL US), each worth one share, fell
$1.26, or 4.1 percent, to $29.15.


Read more at Bloomberg Stocks News

Gold, Silver Prices Climb in New York as Dollar Declines Against Euro

(Bloomberg) -- Gold and silver prices rose in New
York on speculation that a decline in the value of the dollar
will boost the appeal of the precious metals as alternative
investments.

Gold generally moves in tandem with the euro, which gained
after the Federal Reserve tempered its forecasts for U.S.
economic growth for this year and next. Before today, gold and
the euro both had gained 4.4 percent this year.


Read more at Bloomberg Commodities News

Treasuries Rise as Federal Reserve Trims Forecast for U.S. Economic Growth

(Bloomberg) -- Treasuries rose as the Federal
Reserve trimmed its forecast for U.S. economic growth this year
and next on weaker-than-anticipated home building, while keeping
its inflation projections unchanged.

Fed Chairman Ben S. Bernanke predicted in testimony before
Congress that U.S. economic growth will pick up slightly next
year and inflation will gradually recede.


Read more at Bloomberg Bonds News

Vattenfall's European Unit Chief Steps Down After Nuclear Plant Incidents

(Bloomberg) -- Vattenfall AB said Klaus Rauscher
stepped down as head of its European unit after incidents at two
of the company's nuclear plants led regulators to consider
revoking its operating license.

``He has left his post,'' said Maria Parent, a spokeswoman
for the Stockholm-based utility. Hans-Juergen Cramer was named
as acting head of Vattenfall Europe AG, the parent company said
today in an e-mailed statement. German Chancellor Angela Merkel
said today that the company made ``dramatic mistakes.''


Read more at Bloomberg Energy News

UPDATE 1-FACTBOX-Brazil's deepening aviation crisis

(Reuters) - Rescue workers said as many as 200 people may have been
killed in the crash and fire that followed, including some
people on the ground. The Airbus A320 was operated by TAM
Linhas Aereas , Brazil's biggest airline.




Here are key facts about Brazil's deepening aviation crisis
over the past year.


Read more at Reuters.com Bonds News

Dollar up after US housing starts exceed forecast

(Reuters) - The dollar rose to session highs against the euro and yen on Wednesday after news that June housing starts were slightly higher than expected, a small sign the sector may be improving prospects for the economy.

However, building permits were the lowest in a decade and separate data showed U.S. core inflation in June was in line with forecasts, keeping dollar gains capped and expectations intact that the Federal Reserve will keep benchmark overnight interest rates steady for the time being.


Read more at Reuters Africa

UPDATE 1-Canada June leading indicator up less than expected

(Reuters) - Analysts in a Reuters poll had forecast, on average, a gain
of 0.4 percent in the month.




The sharp appreciation of the Canadian dollar, combined
with softer U.S. demand, shrank manufacturers' profits and
dampened exports. Factory owners saw new orders decline for the
first time in 2007, their shipments stalled and they cut back
payrolls, Statscan said.


Read more at Reuters.com Economic News

Alfa, Doral, Gol, TAM, Orbital Sciences, 3Com, Yahoo!: 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 8:10 a.m. New York time.

Brazilian airline American depositary receipts fell after a
passenger plane owned by Tam SA crashed on landing at Sao Paulo's
domestic airport, killing as many as 200 people in the country's
worst air disaster. Tam's ADRs (TAM US), each worth one share,
fell $2.28, or 6.4 percent, to $33.55 in trading before U.S.
exchanges opened. Gol Linhas Aereas Inteligentes SA's ADRs (GOL
US), each worth one share, fell 61 cents, or 2 percent, to
$29.80.


Read more at Bloomberg Stocks News

UPDATE 1-American Standard posts lower quarterly profit

(Reuters) - American Standard, which is spinning off its
vehicle-control unit and looking to sell its bath and kitchen
business, reported net income of $176 million, or 84 cents a
share, down from $191.7 million, or 93 cents a share, a year
earlier.




Including results from the bath business, classified as a
discontinued operation, earnings were $1.05 a share, up 14
percent from a year earlier but 3 cents below analysts' average
forecast as compiled by Reuters Estimates.


Read more at Reuters.com Market News

UPDATE 1-United Tech profit up 4 pct, raises outlook

(Reuters) - The company, which makes products ranging from Carrier air
conditioners to airplane electronics, also raised its earnings
forecast for the year. It now expects to earn $4.15 to $4.25
per share, up from a prior forecast of $4.05 to $4.20.




Analysts, on average, expect $4.19 per share, according to
Reuters Estimates.


Read more at Reuters.com Market News

Altria profit falls

(Reuters) - The parent of Philip Morris USA and Philip Morris International posted second-quarter profit of $2.22 billion, or $1.05 a share, compared with $2.71 billion, or $1.29 a share, a year earlier.




Results include a charge of $318 million related to the planned plant closure.


Read more at Reuters.com Market News

Nordic Stocks Drop, Led by Statoil, Nokia; Handelsbanken Soars on Earnings

(Bloomberg) -- Nordic stocks fell for a second day,
led by Statoil ASA and Norsk Hydro ASA, the region's largest oil
companies. Atlas Copco AB dropped after HSBC Holdings Plc cut
its recommendation on the shares.

Svenska Handelsbanken AB jumped after the first major
Nordic bank to report second-quarter earnings said profit
unexpectedly rose 16 percent on higher commission and lending
income.


Read more at Bloomberg Stocks News

BP's new Angola oilfield to ship first cargo in September

(Reuters) - BP's new Plutonio oilfield in Angola is expected to load its first crude shipment at the end of September, traders said on Wednesday.

The new field, which is expected to average around 200,000 barrels per day, is scheduled to ship its first cargo on September 24, they said.


Read more at Reuters Africa

Pound Advances to Highest in 26 Years on U.K.'s Rate Advantage Over U.S.

(Bloomberg) -- The pound climbed to a 26-year high
against the dollar on speculation the Bank of England will lift
interest rates this year as losses on U.S. subprime mortgages
prompt the Federal Reserve to stay on hold.

The U.K. currency rose for a fourth day after Bear Stearns
Cos. reported losses on U.S. hedge funds that bet on bonds backed
by subprime mortgages. The BOE today released minutes of its July
5 meeting, showing policy makers voted 6-3 in favor of raising
rates to a six-year high. Inflation exceeded its 2 percent target
for a 14th month in June, a report showed yesterday.


Read more at Bloomberg Currencies News