Subprime worries to spur more volatility

(Reuters) - Widening fallout from the U.S. housing slump has rattled credit markets, putting investors on edge about the outlook for corporate takeovers and share buybacks -- two catalysts of the market's recent rally to record highs.




On Friday, Standard & Poor's cut its ratings outlook on the debt of investment bank Bear Stearns Cos., fanning concern that troubles in the subprime mortgage market are spreading, which could threaten the economy's health.


Read more at Reuters.com Hot Stocks News

Berkshire profit rises 33 pct

(Reuters) - Net income for the Omaha, Nebraska-based insurance and investment company rose to $3.12 billion, or $2,018 per Class A share, from $2.35 billion, or $1,522, a year earlier.




Operating profit, excluding investment gains, rose 22 percent to $2.51 billion, or $1,625 per share, from $2.05 billion, or $1,331.


Read more at Reuters.com Hot Stocks News

GLOBAL MARKETS-Darker credit mood hurts stocks, dollar; bonds up

(Reuters) - NEW YORK, Aug 3 - Deteriorating credit market
sentiment and unexpectedly weak economic data hammered U.S.
stocks and the dollar, while safe-haven government bonds
surged on Friday.




Worries over a potential liquidity crunch escalated as a
top executive at Wall Street investment bank Bear Stearns
described the fixed-income market turmoil as the worst
in 22 years.


Read more at Reuters.com Bonds News

Chile stocks fall in variable trade; peso slips

(Reuters) - The all-market IGPA stock index slipped 0.46
percent to 14,783.35 points, while the trade-weighted blue chip
IPSA index fell 0.43 percent to 3,314.86 points.




Global markets were rattled by continuing concerns about
U.S. credit and weaker-than-expected jobs data, while the
Santiago bourse braced for higher local interest rates
following Thursday's higher-than-expected inflation data.


Read more at Reuters.com Bonds News

Middleby acquires cooking equipment and beverage systems makers

(Reuters) - The acquisition is expected to add to earnings in 2008, the
foodservice equipment company said in a statement.





Read more at Reuters.com Mergers News

Medivation files $100 mln mixed shelf offering

(Reuters) - Under a shelf registration filed with the U.S. Securities
and Exchange Commission, a company may sell securities in one or
more separate offerings with the size, price and terms to be
determined at the time of sale.




Read more at Reuters.com Government Filings News

US STOCKS-Indexes fall further after services data

(Reuters) - The Dow Jones industrial average was down 65.36
points, or 0.49 percent, at 13,397.97. The Standard & Poor's
500 Index was down 9.64 points, or 0.65 percent, at
1,462.56. The Nasdaq Composite Index was down 14.85
points, or 0.58 percent, at 2,561.13.




Read more at Reuters.com Bonds News

GLOBAL MARKETS-US stocks, dollar fall on data; bonds surge

(Reuters) - NEW YORK, Aug 3 - U.S. stocks and the dollar fell,
while safe-haven Treasuries surged on Friday as unexpectedly
weak data reinforced views of slower economic growth.




News that the U.S. economy had created fewer jobs than
anticipated and that the services sector expanded more slowly
in July jarred investors' nerves, already frayed by credit
liquidity worries.


Read more at Reuters.com Bonds News

UPDATE 1-Court: FBI violated lawmaker's rights in office raid

(Reuters) - WASHINGTON, Aug 3 - FBI agents violated the
rights of a Democratic congressman when they confiscated files
from his Capitol Hill office while investigating allegations he
solicited bribes, including $90,000 found in his freezer, a
federal appeals court ruled on Friday.




The unanimous three-judge panel ordered the FBI to give
Louisiana Rep. William Jefferson back all privileged
legislative files, including copies, taken from his office
during the unprecedented raid on May 20-21 of last year.


Read more at Reuters.com Bonds News

TREASURIES-Bond rally picks up steam on Bear Stearns call

(Reuters) - As investors bet the Federal Reserve would have to
intervene by cutting interest rates, two-year notes
surged 6/32 and were offering a yield of 4.49 percent, down a
full 10 basis points in just one session.




Read more at Reuters.com Bonds News

UPDATE 3-Bear Stearns, brokers debt protection costs rise

(Reuters) - Recent developments, including problems at some of Bear
Stearns' managed hedge funds, have the potential to hurt the
company's performance for an "extended period," S&P said in a
statement. For details see [ID:nN03300207].




The cost to insure Bear's debt with credit default swaps
rose to around 160 basis points, or $160,000 per year for five
years to insure $10 million in debt, from about 115 basis
points at Thursday's close.


Read more at Reuters.com Bonds News

Latin Stocks Fall on U.S. Hiring Slowdown, Credit Concern; Petrobras Falls

(Bloomberg) -- Latin America stocks fell for the
second time this week, led by Brazilian commodity producers, as
slower-than-expected U.S. job growth raised concern that a
faltering economy will curb demand for the region's exports.

The Morgan Stanley Capital International index of Latin
American shares retreated 2.6 percent to 3697.45 as of 2:55 p.m.
in New York, dragged down by Petroleo Brasileiro SA, Brazil's
state-controlled oil company, and Cia. Vale do Rio Doce, the
world's second-biggest nickel producer. Today's retreat cut the
regional index's weekly gain to 0.6 percent.


Read more at Bloomberg Stocks News

Washington Post quarterly profit falls, shares rise

(Reuters) - NEW YORK, Aug 3 - Washington Post Co posted a 13 percent fall in quarterly profit on Friday, but its shares rose 5 percent as slower U.S. jobs growth was expected to boost demand for its Kaplan educational business.



Like other U.S. newspaper publishers, the Washington Post's second-quarter result was weighed by declines in print advertising sales and circulation as it faced competition from the Internet for readers and marketers.


Read more at Reuters.com Market News

Treasury Two-Year Note Yields Drop to 18-Month Low on Jobs, Growth Outlook

(Bloomberg) -- Treasuries rose, pushing yields on
two-year notes to the lowest since January 2006, after weaker-
than-forecast reports on jobs and services reinforced bets that
housing market weakness will lead to a broad economic slowdown.

Two-year notes, more sensitive than longer-maturity debt to
changes in monetary policy, climbed the most in a week as
traders boosted speculation the Federal Reserve will cut
interest rates. The gains accelerated after Bear Stearns Cos.,
the second-largest underwriter of mortgage bonds, had its
credit-rating outlook cut to negative by Standard & Poor's.


Read more at Bloomberg Bonds News

Citigroup Says Asia Bond Investors Are Showing Growing Aversion to Risk

(Bloomberg) -- Asia's largest institutional fixed-
income investors are displaying increased risk aversion,
especially toward high-yield and longer-maturity debt, according
to a Citigroup Inc. survey.

The investors are positive on the outlook for the euro and
British pound while becoming even more negative on the U.S.
dollar, according to the quarterly survey.


Read more at Bloomberg Bonds News

Treasuries Climb as Jobs, Services Data Add to Bets on Economic Slowdown

(Bloomberg) -- Treasuries rose after weaker-than-
forecast reports on jobs and services reinforced bets that
housing market weakness will lead to a broad economic slowdown.

Two-year notes, more sensitive than longer-maturity debt to
changes in monetary policy, rose the most in a week as traders
increased speculation that the Federal Reserve will cut interest
rates this year. The gains accelerated after Bear Stearns Cos.,
the second-largest underwriter of mortgage-backed bonds, had its
credit-rating outlook cut to negative by Standard & Poor's.


Read more at Bloomberg Bonds News

IBM to buy data management solutions provider

(Reuters) - Aug 3 - IBM Corp. , the world's largest technology services company, said it agreed to acquire privately held Princeton Softech Inc. to enhance its cross-company information on demand business initiative.



Financial details of the deal, which is expected to close later in 2007, were not disclosed.


Read more at Reuters.com Mergers News

DaimlerChrysler completes Chrysler sale to Cerberus

(Reuters) - FRANKFURT, Aug 3 - DaimlerChrysler has completed the sale of an 80 percent stake in its U.S. arm, Chrysler, to a subsidiary of buyout group Cerberus Capital Management, it said on Friday.



The deal's closing had been delayed when bankers were forced to postpone a $12 billion syndicated loan to finance the transaction as lenders tightened access to cash in a nervous debt market.


Read more at Reuters.com Mergers News

REFILE-NYSE-Euronext sells MBE Holding stake

(Reuters) - MBE holding, a joint venture between NYSE Euronext and Borsa
Italiana, owns 60.37 percent of MTS and MTSNext.




Borsa Italiana exercised an option to buy out Euronext's
stake in the Italian business, triggered by the merger between
the NYSE Group's New York Stock Exchange and
pan-European bourse operator Euronext.


Read more at Reuters.com Government Filings News

Accoona files for $80.5 mln IPO

(Reuters) - The filing did not reveal how many shares the company
planned to sell or their expected price.The company plans to
apply for listing on the Nasdaq under the symbol "ACNA."





Read more at Reuters.com Government Filings News

Bonds rise on subprime worries

(Reuters) - Signs of weakness in the economic data prompted investors to increase bets that the Federal Reserve may start cutting interest rates before the end of the year.




"Most people think that the economy is doing OK, but showing signs of slowing down. Bonds are rallying and stock futures are selling off," said Frank Hsu, director of global fixed income at Fimat USA in New York.


Read more at Reuters.com Hot Stocks News

Bear Stearns, lender shares fall on credit worries

(Reuters) - Meanwhile the cost to insure debt of Countrywide Financial Corp. , the largest U.S. mortgage company, surged as investors fretted over the rising rate of late payments.




"There's continued nervousness about how credit market problems will effect these companies," said Richard Sichel, who helps manage $1.5 billion as chief investment officer at Philadelphia Trust Co. "They're worried that there might be more bad news ahead."


Read more at Reuters.com Business News

AU plans African Investment Bank to fund development

(Reuters) - The African Union (AU) plans to establish an investment bank in the next three years as part of an effort to raise an annual $25 billion for development projects, an AU official said on Thursday.

Maxwell Mkwezalamba, the AU's Commissioner for Economic Affairs, said in an interview the resource-rich continent is increasingly growing frustrated over wealthy countries' failure to live up to pledges to double aid for Africa by 2010.


Read more at Reuters Africa

Furniture retailer Lewis says revenue up in four month period

(Reuters) - South African furniture retailer Lewis' said on Friday there was no overall deterioration in its credit book and revenue rose in the first four months of its financial year to end-July.

The retailer said revenue for the April to May period rose 11 percent, June revenue climbed 7 percent and July revenue gained 11 percent compared to the year-ago period.


Read more at Reuters Africa

Nickel hits 9-month low on demand, lead up 3 pct

(Reuters) - Nickel fell to a nine-month low on Friday as weak demand from the stainless steel sector prompted investors to cut their positions, while lead was up almost 3 percent after a strike in Namibia prompted speculative buying.

The market stabilised after a sell-off earlier in the week triggered by risk reduction but analysts said prices were driven by fund interest during a stagnant holiday season rather than supply and demand fundamentals.


Read more at Reuters Africa

Pamodzi starts Africa's largest private equity fund

(Reuters) - South African investment firm Pamodzi Investment Holdings has launched Africa's biggest private equity fund, the $1.3 billion Pamodzi Resources Fund, it said on Friday.

Pamodzi, a prominent black-owned investment group, said the fund is supported by a consortium of U.S. investors including affiliates of American Metals & Coal International, Inc. (AMCI) -- a leading international energy and resources sector investor.


Read more at Reuters Africa

Global PMI shows sharp July slowdown, led by U.S.

(Reuters) - The indicator, produced by JP Morgan with research and
supply management organisation, fell to 56.2 in July from 59.1
in June, where 50 marks the dividing line between growth and
contraction.




"Today's activity indicators suggest that global economic
activity is expanding at a 2.5-3.0 percent annualized pace at
mid-year," said David Hensley at JP Morgan. "Although the recent
turmoil in financial markets has undoubtedly renewed concerns
over growth, output still appears set to accelerate in the
second half."


Read more at Reuters.com Economic News

D.Post says Q2 operating profit rises 10 pct

(Reuters) - Earnings before interest and tax were 703 million euros . This beat the average forecast of 692 million euros from a Reuters poll of 14 analysts. Estimates had ranged from 662 million to 722 million.



Deutsche Post stuck to its forecast for 2007 EBIT excluding one-off items to reach at least 3.6 billion euros, compared with 3.51 billion last year.


Read more at Reuters.com Market News

UPDATE 1-Tomkins profit beats forecast, shares jump 11 pct

(Reuters) - LONDON, Aug 3 - British engineer Tomkins Plc
reported better-than-expected first-half profit on
Friday, boosting its shares 11 percent, but cautioned that a
weak U.S. housing market will continue to affect its results.




Tomkins, which makes parts used in car engines and air
conditioners, reported pretax profit of 148.9 million pounds
, up from 135.7 million a year earlier.


Read more at Reuters.com Market News

Procter & Gamble profit rises

(Reuters) - Profit was $2.27 billion, or 67 cents per share, in the fiscal fourth quarter ended in June, up from $1.9 billion, or 55 cents per share, a year earlier.




The maker of Gillette razors, Tide laundry detergent and Pampers diapers said in early June it expected to earn 64 cents to 66 cents per share. Analysts, on average, expected it to earn 66 cents a share, according to Reuters Estimates.


Read more at Reuters.com Market News

US Airways sees strong Q3 demand

(Reuters) - Net sales rose 13.2 percent to $69.5 million for April, the warehouse club operator said in a statement.






Read more at Reuters.com Market News

Weyerhaeuser profit drops, but beats expectations

(Reuters) - NEW YORK, Aug 3 - Timber company Weyerhaeuser Co. reported a sharp drop in second-quarter earnings on Friday as prices fell at its real estate business and U.S. home builders' demand for wood products weakened.



Although the results beat Wall Street expectations, analysts noted that this resulted from lower corporate expenses, rather than the earnings in the company's main businesses.


Read more at Reuters.com Market News

Taser Settled 10 of 52 Cases It Told Investors Were Dismissed by Courts

(Bloomberg) -- Taser International Inc., the world's
largest maker of stun guns, talks tough when the subject turns to
people who've sued the company for injuries or deaths allegedly
inflicted by electric shocks from its weapons.

``The word has gotten out: Taser doesn't settle,'' Taser
General Counsel Doug Klint said in an April interview. ``Anyone
who sues us is in for a fight.''


Read more at Bloomberg Exclusive News

South African Rand Poised for Weekly Gain; Investors Resume Carry Trades

(Bloomberg) -- South Africa's rand is headed for a
weekly gain against the dollar as a rebound in global stocks
prompted investors to resume buying emerging-market assets.

The rand also advanced against the Swiss franc and Japanese
yen as traders borrowed funds in those currencies to invest in
higher yielding stocks and bonds in South Africa, a strategy
known as the carry trade. The rand extended gains after central
bank Governor Tito Mboweni said he was concerned about inflation
in Africa's largest economy.


Read more at Bloomberg Currencies News

Crude Oil Falls on Concern U.S. Economic Growth, Energy Demand Will Slow

(Bloomberg) -- Crude oil fell after a government
employment report prompted concern that U.S. economic growth will
slow, reducing demand for gasoline and other fuels.

Job growth slowed to 92,000 in July from 126,000 the prior
month, the Labor Department said today in Washington. The jobless
rate rose to 4.6 percent. The U.S. consumes 24 percent of the
world's oil. Economic growth in the U.S. and China has helped
spur the rise in both energy demand and prices.


Read more at Bloomberg Energy News

PRESS DIGEST - Wall Street Journal - Aug 3

(Reuters) - * Mattel Inc.'s recall of lead-tainted toys
illustrates the potential risks firms face as they seek to
benefit from low-cost Chinese goods.




* Fiserv Inc. agreed to purchase CheckFree Corp.
for about $4.4 billion, in an effort to integrate its
account-processing and risk-management services with
CheckFree's electronic bill-payment services.


Read more at Reuters.com Bonds News

UPDATE 1-CCS Medical sees $14-$16/shr price range for IPO

(Reuters) - Lehman Brothers, Goldman Sachs & Co., Wachovia Securities
and Raymond James were underwriting the IPO, the medical supply
management company said in a filing with the U.S. Securities
and Exchange Commission.




The company, which has applied for a Nasdaq listing under
the symbol "CCSM," has given the underwriters an option to buy
up to an additional 1.5 million shares to cover allotments.


Read more at Reuters.com Bonds News

US STOCKS-Futures turn negative on employment report

(Reuters) - S&P 500 futures were down 3.6 points, below fair
value, a mathematical formula that evaluates pricing by taking
into account interest rates, dividends and time to expiration
on the contract.




Dow Jones industrial average futures fell 27 points,
and Nasdaq 100 futures lost 3.75 points.


Read more at Reuters.com Bonds News

Bank agency wants comments on "unfair" lending

(Reuters) - The OTS said it hopes to work with other federal regulatory banking agencies to maintain consistency in the interagency process to create a level playing field for financial institutions.




The proposal comes at a time when federal banking authorities, including the Federal Reserve, have been criticized for responding late to early clues to possible problems in the mortgage market for borrowers with poor credit history.


Read more at Reuters.com Bonds News

AXA, ING Groep, Deutsche Telekom Earnings, ECB Report: European Week Ahead

(Bloomberg) -- Earnings reports from Axa SA,
Europe's second-biggest insurer, ING Groep NV, the biggest Dutch
financial-services company, and Deutsche Telekom AG, Europe's
largest phone company, may move markets next week.

The European Central Bank's monthly report and industrial
production data from Germany, France, Italy and the U.K. may
also affect markets. Xstrata Plc, the world's fourth-largest
copper producer, and RWE AG, Germany's second-largest utility,
also report earnings next week.


Read more at Bloomberg Stocks News