Mauritius Cenbank hikes key rate 75 bp to 9.25 pct

(Reuters) - Mauritius' Central Bank said on Saturday it has hiked its key repo rate 75 basis points to 9.25 percent per year.

"The Board has decided to raise the key repo rate by 75 basis points from 8.50 percent to 9.25 percent per annum with effect from 2 July 2007," the Bank said in a statement posted on its Web site.


Read more at Reuters Africa

UPDATE 1-Teachers group wins C$52 bln race for BCE

(Reuters) - It said that was a 40 percent premium over what it called
the "undisturbed share price," or the price before BCE put
itself up for sale. BCE shares closed at C$40.34 on the Toronto
Stock Exchange on Friday.




"The all-cash transaction is valued at C$51.7 billion,
including C$16.9 billion of debt, preferred equity and minority
interests," BCE said, adding that it expected the deal to close
in the first quarter of next year.


Read more at Reuters.com Mergers News

Agility in $50 billion U.S. deal, stock up

(Reuters) - Agility shares rallied 6.6 percent after the news.




Agility said in a statement on the Kuwait bourse Web site
it would provide various logistics, supply and warehousing
services as part of the deal.


Read more at Reuters.com Business News

Dollar Drops to Lowest in Almost a Month Against Euro as Inflation Eases

(Bloomberg) -- The dollar dropped to the
lowest level in almost a month against the euro after U.S.
reports showed inflation eased and consumption increased
less than economists' forecasts, reducing the currency's
appeal.

The U.S. dollar posted a third straight weekly loss as
the data fueled speculation the Federal Reserve will keep
borrowing costs unchanged this year while other central
banks extend increases. The dollar may extend the decline
next week on statistics forecast to show U.S. job growth
slowed this month while a gauge of the service sector
declined.


Read more at Bloomberg Currencies News

Sanofi pulls obesity drug application in U.S.

(Reuters) - The French drugmaker said it would work towards resubmitting the medicine, known by the brand names Acomplia and Zimulti, at a future date and would undertake necessary talks with the Food and Drug Administration on required modifications to its file.




Read more at Reuters.com Government Filings News

UPDATE 1-S.Africa ANC opens door for Mbeki to remain leader

(Reuters) - MIDRAND, South Africa, June 29 - South Africa's
ruling African National Congress said on Friday it favoured
keeping the current rules for electing the party's leader,
opening the door for President Thabo Mbeki to seek a third term.




"There is no need to change the current procedures," ANC
General Secretary Kgalema Motlanthe told reporters after about
1,500 activists met outside Johannesburg to discuss the party's
policies and the process to elect a leader in December.


Read more at Reuters.com Bonds News

Reviewers mostly say iPhone lives up to hype

(Reuters) - Here's what they found:




LIKES


Read more at Reuters.com Business News

S.African calls for transparency in IMF chief selection

(Reuters) - The European Union moved fast on Friday to maintain its grasp on the leadership of the International Monetary Fund following a surprise resignation announcement by the IMF's Spanish chief, Rodrigo Rato.

The top IMF post has been Europe's since the institution was created after World War Two, with the top job at the World Bank, its sister organisation, going to an American in a carve-up that reflected the economic pecking order of an era now fading.


Read more at Reuters Africa

Angloplat, unions move closer in wage talks

(Reuters) - Trade unions and the world's biggest platinum producer Angloplat have moved closer together in wage talks, union officials said on Friday.

Analysts have been expecting mining strikes to break out in South Africa, the world's largest producer of gold and platinum, but Solidarity said in a statement negotiations had been positive.


Read more at Reuters Africa

Philips sells Ommic stake to Financiere Victoire

(Reuters) - "The sale of Ommic represents another step Philips is taking to focus on its healthcare, lifestyle and technology activities," the company said in a statement.



Philips is the world's biggest lighting maker, a top three hospital equipment maker and Europe's biggest consumer electronics producer.


Read more at Reuters.com Mergers News

Thomson gets 4.8 bln pounds loan for Reuters

(Reuters) - The loan is structured as a 364-day bridge financing and has been arranged by Barclays Capital, Royal Bank of Scotland and Toronto Dominion Bank. J.P. Morgan, Bank of America and Citigroup also participated in the financing.



Pricing is 20 basis points over Libor, with a 5 basis points facility fee.


Read more at Reuters.com Mergers News

RLPC-Thomson gets 4.8 bln pounds loan for Reuters purchase

(Reuters) - The loan is structured as a 364-day bridge financing and has been arranged by Barclays Capital, Royal Bank of Scotland and Toronto Dominion Bank. J.P. Morgan, Bank of America and Citigroup also participated in the financing.



Pricing is 20 basis points over Libor, with a 5 basis points facility fee.


Read more at Reuters.com Bonds News

Apple IPhone, Must-Have for Technophiles, May Be Tougher Sell for Parents

(Bloomberg) -- Yahoo! Inc. Chief Executive Officer
Jerry Yang wants an iPhone. Salesforce.com CEO Marc Benioff
plans to trade in his Motorola Inc. Razr for one. Chuck Jones
not only doesn't want one, he also isn't about to spend $1,000
or more to get iPhones for his two daughters.

While technophiles clamor for Apple Inc.'s combination
mobile phone and music player, some regular consumers like Jones
are less enthusiastic. The iPhone is pricier than rivals, lacks
the keyboard used by text messagers and works only on an AT&T
Inc. network. Parents also may balk at the $200 penalty to
switch wireless carriers, no matter how much their kids beg.


Read more at Bloomberg Exclusive News

Goldman Sachs Recommends Buying Northern Rock Shares Following Drop

(Bloomberg) -- Investors should buy stock of
Northern Rock Plc, the U.K. mortgage lender that two days ago
said it expects to miss analysts' profit estimates, according to
Goldman Sachs Group Inc.

The world's biggest securities firm by market value added
Northern Rock to its ``conviction buy list,'' saying its shares
have fallen too far. Northern Rock shares dropped 12 percent to
829 pence yesterday before rising 3 percent today to 856 pence
as of 2:30 p.m. in London. Goldman Sach's 12-month target price
for the stock is 1,097 pence.


Read more at Bloomberg Stocks News

Gadget fans speak out from iPhone lines

(Reuters) - NEW YORK CITY




Jose Sanchez, 22, employee of athletic shoe store Foot Locker, who arrived on Tuesday to camp out in front of Apple store on New York's Fifth Avenue:


Read more at Reuters.com Business News

UPDATE 1-U.S. regulators set new subprime loan standards

(Reuters) - WASHINGTON, June 29 - U.S. bank regulators issued
new standards for subprime mortgage lending on Friday that
includes several new consumer protections.




Subprime borrowers should not be penalized for refinancing
out of a mortgage before the interest rate resets to a higher
level, according to a statement of principles issued by the
regulators. The guidelines also call for lenders to warn
borrowers when a reset is coming and grant them at least 60
days to refinance.


Read more at Reuters.com Bonds News

U.S. construction spending up 0.9 percent in May

(Reuters) - Spending on private homebuilding, however, fell 0.8 percent
to a seasonally adjusted $549 billion annual rate, the 15th
consecutive monthly decrease as U.S. housing market troubles
continue.




On the non-residential side, private construction spending
was up 2.7 percent in May. Public spending was up 2.2 percent,
the department said.


Read more at Reuters.com Economic News

Blackstone, Lion Seek to Increase Orangina Debt, Remove Lender Safeguards

(Bloomberg) -- Blackstone Group LP and Lion Capital
LLP are seeking 192 million euros ($259 million) of loans for
soft-drink maker Orangina that give up standard protection for
lenders, at a time when companies worldwide are abandoning
borrowing because of investor jitters.

Blackstone, manager of the world's biggest buyout fund, and
partner Lion Capital want to increase Paris-based Orangina's
debt to 1.7 billion euros, said two people involved in the
transaction. The LBO firms acquired Orangina in 2005 and plan to
pay themselves a 400 million-euro dividend, said the people, who
declined to be identified because the discussions are private.


Read more at Bloomberg Bonds News

Banco Pine, Cosan, Petroleo Brasileiro and Unibanco: Brazil Equity Movers

(Bloomberg) -- Brazil's main stock gained for a third
day, led by state-controlled oil company Petroleo Brasileiro SA.

The Bovespa Index of the most-traded stocks on the Sao Paulo
exchange rose 342.14, or 0.6 percent, to 54,488.73 as of 9:36 a.m.
New York time.


Read more at Bloomberg Stocks News

Hidary raises offer price for Everlast Worldwide

(Reuters) - June 29 - New York-based investor group Hidary Group said it raised its offer price to acquire sporting goods equipment maker Everlast Worldwide Inc. to $31.25 per share in cash from $26.50.



Hidary also said it would be prepared to consider a further increase in its offer price, should Everlast's termination fee in connection with its Brand Holdings transaction be invalidated.


Read more at Reuters.com Mergers News

Dollar Falls to Lowest Level in More Than Three Weeks Versus Euro on Rates

(Bloomberg) -- The dollar fell to the lowest level
in more than three weeks against the euro after reports showed
the Federal Reserve's preferred measure of inflation slowed in
May and consumer spending rose less than economists' forecasts.

The data may raise speculation the Fed will keep interest
rates unchanged this year while other central banks extend
increases, dimming the allure of dollar-denominated assets. The
U.S. currency fell to the lowest level in 22 years against the
New Zealand dollar and the weakest since 1989 versus the
Australian dollar.


Read more at Bloomberg Currencies News

MetLife Searches Beyond Leveraged Buyout Funds as Returns May Have Peaked

(Bloomberg) -- If MetLife Inc. is any guide, it's
time to search beyond leveraged buyouts for investment returns.

The biggest U.S. life insurer plans to devote more to hedge
funds, startup companies, and even timber to spruce up $330
billion in holdings dominated by bonds yielding about 6 percent.
What New York-based MetLife won't do is boost the share of
assets dedicated to leveraged buyouts after gains from LBO funds
were almost double the company's expectations in the first
quarter.


Read more at Bloomberg Exclusive News

Regulators set new subprime loan standards

(Reuters) - Lenders should only offer loans to borrowers with little proof of assets and income if there is other evidence that they can repay, the statement says.




Read more at Reuters.com Business News

American Home Mortgage, CryoCor, PMI Group, Talbots: 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.

American Home Mortgage Investment Corp. (AHM US) fell $2.85,
or 14 percent, to $18.06. The lender specializing in adjustable-
rate mortgages withdrew its fiscal 2007 earnings guidance and
said it will likely have a second-quarter loss.


Read more at Bloomberg Stocks News

US end-June consumer sentiment at 10-mo low-U.Mich

(Reuters) - The Reuters/University of Michigan consumer index was 88.3
at the end of May. It read 82.0 in August 2006.




Read more at Reuters.com Bonds News

U.S. regulators set new subprime loan standards

(Reuters) - Lenders should only offer loans to borrowers with little
proof of assets and income if there is other evidence that they
can repay, the statement says.




Read more at Reuters.com Bonds News

UPDATE 2-S.Africa's ANC nears decision on leadership spat

(Reuters) - MIDRAND, June 29 - South Africa's ruling African
National Congress said on Friday it was still struggling to
decide how to elect its next leader amid disagreement over
whether to allow President Thabo Mbeki to run for a third term.




About 1,500 delegates from the ANC, which has ruled the
country since 1994, were meeting at a policy conference to
debate proposals that could block or clear the way for Mbeki to
hold on to the reins of the party at a congress in December.


Read more at Reuters.com Bonds News

Southern Co seeks Georgia Power rate increase

(Reuters) - Georgia regulators are expected to issue a final order on
the rate hike request in December, the company said.




Southern said the majority of the rate hike would go to
cover the cost of environmental compliance and continued
investment in new generation, transmission and distribution
facilities.


Read more at Reuters.com Market News

Nasdaq to buy board technology firm, no terms

(Reuters) - Directors Desk is the newest company to join Nasdaq's clutch of companies offering non-trading services, as the exchange fights to keep clients and increase revenue.




Competition among exchanges has turned fierce, and Nasdaq competes for trading volume with alternative trading venues like BATS Trading and for company listings with the New York Stock Exchange, owned by NYSE Euronext .


Read more at Reuters.com Mergers News

DAX Index Rises for Second Day; Linde Group, Volkswagen, BASF Pace Gains

(Bloomberg) -- German stocks including Allianz SE
and Bayerische Motoren Werke AG declined. Linde Group and BASF
AG led rising stocks.

The DAX added 1.94, or less than 0.1 percent, to 7923.30 at
11:36 a.m. in Frankfurt, adding its gains for the year to 20
percent. DAX futures expiring in September increased 0.2 percent
to 8000. The HDAX Index of the country's 110 biggest companies
added 0.1 percent.


Read more at Bloomberg Stocks News

Canadian Stocks Gain After Research In Motion Profit Rises; BCE Advances

(Bloomberg) -- Canadian stocks rose the most in two
weeks after Research In Motion Ltd. announced a stock split and
first-quarter profit that exceeded analyst estimates.

Research In Motion, the maker of BlackBerry e-mail phones had
the biggest jump in nine months and reached a new high. BCE Inc.,
Canada's biggest phone company, gained after the Ontario Teachers'
Pension Plan said it made bids for all BCE shares it doesn't
already own.


Read more at Bloomberg Stocks News

UK Alzheimer's drug case ends, judgement reserved

(Reuters) - The judge had been asked to quash the decision of the
National Institute for Health and Clinical Excellence to
restrict access to Alzheimer's drugs on the state National
Health Service.




Manufacturers argued that the way in which NICE reached its
decision to deny drugs costing around $5 a day to NHS patients
newly diagnosed with mild Alzheimer's disease was flawed and
unlawful.


Read more at Reuters.com Government Filings News

BT Chief Verwaayen Says `Absolutely Confident' Sales Will Beat Forecasts

(Bloomberg) -- BT Group Plc Chief Executive Officer
Ben Verwaayen said most analysts are too pessimistic about sales
growth at the U.K.'s largest phone company.

``We are absolutely confident that we will do better than
most people think,'' Verwaayen, 55, said in an interview at BT's
London headquarters. He declined to give a financial forecast.
Sales will rise 2.5 percent in fiscal 2008, based on the average
of 25 analyst forecasts compiled by Bloomberg.


Read more at Bloomberg Exclusive News

Apollo, Ariba, Corn Products, CryoCor, Priceline: 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 9:30 a.m. New York time.

American Home Mortgage Investment Corp. (AHM US) fell $2.51,
or 12 percent, to $18.40. The lender specializing in adjustable-
rate mortgages withdrew its fiscal 2007 earnings guidance and
said it will likely have a second-quarter loss.


Read more at Bloomberg Stocks News

French group Valeo to continue talks with fund

(Reuters) - PARIS, June 29 - French car-parts maker Valeo said on Friday it would continue talks with an investment fund, which a source familiar with the matter said concerned possible buyout discussions involving PAI Partners.



"Talks will continue over the weekend with one fund," said a spokeswoman for Valeo, which has a market value of about 3 billion euros .


Read more at Reuters.com Mergers News

Nasdaq to acquire privately held Directors Desk

(Reuters) - The deal is expected to close early in the third quarter,
Nasdaq said in a statement.





Read more at Reuters.com Mergers News

UPDATE 1-US year-over-year core PCE index up 1.9 pct in May

(Reuters) - That was the lowest reading for the year-over-year core PCE
price index, a closely watched inflation gauge, since a
matching reading in March 2004, the Commerce Department said.




This latest reading should provide some comfort to Federal
Reserve policy-makers who on Thursday opted to hold interest
rates steady but still cautioned that inflation was a key
concern.


Read more at Reuters.com Economic News

Aveng says CEO to retire in 2008

(Reuters) - South African construction and engineering firm Aveng on Friday said chief executive officer, Carl Grim, would retire in 2008.

Aveng said a process to select a replacement for Grim -- who has been CEO since the company's formation in 1998 -- from either inside or outside the group had been initiated.


Read more at Reuters Africa

TREASURIES-Bond prices rise on tame inflation data

(Reuters) - The positive inflation data added to month-end and
quarter-end buying, as well as a modest flight-to-quality bid
from weaker equities and news that British police had defused a
bomb left in an abandoned car in London's theater district.




""Bonds are doing a little better. We have a benign core
PCE deflator and another month of confirmation that consumer
spending is slowing down significantly in the second quarter
from its average pace of the first," said Josh Stiles, bond
strategist with IDEAglobal in New York.


Read more at Reuters.com Bonds News

Albania Gets First Credit Rating From Moody's, Equal to Ukraine, Jamaica

(Bloomberg) -- Albania, the former communist nation
where a quarter of the population lives in poverty, received its
first credit rating, with Moody's Investors Service ranking the
country on a par with Ukraine, Indonesia and Jamaica.

The B1 rating is four steps below the investment-grade level
of Baa3 assigned to Balkan neighbors Croatia and Bulgaria. It
reflects Albania's journey from an ``isolated, administered''
system toward a market economy, New York-based Moody's analyst
Jonathan Schiffer wrote in a report published today.


Read more at Bloomberg Bonds News

Apollo, Ariba, Corn Products, CryoCor, Priceline: 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 8:30 a.m. New York time.

American Home Mortgage Investment Corp. (AHM US) fell $1.81,
or 8.7 percent, to $19.10 in trading before U.S. exchanges
opened. The lender specializing in adjustable-rate mortgages
withdrew its fiscal 2007 earnings guidance and said it will
likely have a second-quarter loss.


Read more at Bloomberg Stocks News

Oil Gains as U.S. Refineries Increase Output, Midwest Stockpiles Decrease

(Bloomberg) -- Crude oil rose after supplies in the
U.S. Midwest fell to their lowest since March as refineries started
making more gasoline to meet summer demand.

Crude stockpiles in Cushing, Oklahoma, where the West Texas
Intermediate benchmark crude is priced, fell by 1.5 million barrels
last week, the Department of Energy said. Refineries increased runs
to 89.4 percent of capacity for the same week.


Read more at Bloomberg Commodities News

Yen Falls, Heading for Biggest Quarterly Loss Since 2001 Versus the Dollar

(Bloomberg) -- The yen headed for its biggest
quarterly loss against the dollar since 2001 as a drop in
consumer prices reinforced speculation the Bank of Japan will
keep interest rates on hold.

Japan's currency has declined 4.3 percent this quarter
versus the dollar as investors borrowed yen to buy higher-
yielding assets in carry trades. A report showed today Japanese
consumer prices fell 0.1 percent last month. The central bank has
kept its key rate at 0.5 percent, the lowest amongst major
economies, since February.


Read more at Bloomberg Currencies News

Year-over-year core PCE index up 1.9 pct in May

(Reuters) - This latest reading should provide some comfort to Federal Reserve policy-makers who on Thursday opted to hold interest rates steady but still cautioned that inflation was a key concern.




"It's a dip into their comfort zone and if it's sustainable going forward, I think it suggests that the Fed is not in a position to raise rates any time this year," said John Silvia, chief economist at Wachovia Securities in Charlotte, North Carolina.


Read more at Reuters.com Economic News

U.S. Stock-Index Futures Gain After Inflation Measure Matches Forecasts

(Bloomberg) -- U.S. stock-index futures advanced
after a government report showed a measure of inflation matched
forecasts last month, giving the Federal Reserve leeway to cut
rates should the economy slow.

Research In Motion Ltd. rallied after the maker of the
BlackBerry e-mail phone reported first-quarter earnings that
topped analysts' estimates. Apple Inc. climbed on the day its
iPhone goes on sale in the U.S.


Read more at Bloomberg Stocks News

RPT-TREASURIES-Bonds add gains after U.S. core inflation data

(Reuters) - Benchmark 10-year notes were up 7/32 in price
for a 5.08 percent, versus 5.09 percent shortly before the core
PCE data and 5.11 percent late Thursday. Bond prices and yields
move inversely.




Read more at Reuters.com Bonds News

Pound Heads for Sixth Quarterly Gain on View Rates Have Further to Rise

(Bloomberg) -- The pound headed for a quarterly
gain, its sixth in a row, after a rise in consumer and mortgage
lending supported the view that the Bank of England will keep
raising interest rates to curb inflation.

Data showed consumer credit growth almost doubled in May and
mortgage approvals unexpectedly rose to a three-month high,
suggesting the BOE must do more to cool price growth. Policy
makers next decide on interest rates on July 5, and economists
surveyed by Bloomberg News expect them to lift the main benchmark
a quarter-point to 5.75 percent.


Read more at Bloomberg Currencies News

Apple's IPhone, Must-Have for Technopiles, May Be Tougher Sell for Parents

(Bloomberg) -- Yahoo! Inc. Chief Executive Officer
Jerry Yang wants an iPhone. Salesforce.com CEO Marc Benioff
plans to trade in his Motorola Inc. Razr for one. Chuck Jones
not only doesn't want one, he also isn't about to spend $1,000
or more to get iPhones for his two daughters.

While technophiles clamor for Apple Inc.'s combination
mobile phone and music player, some regular consumers like Jones
are less enthusiastic. The iPhone is pricier than rivals, lacks
the keyboard used by text messagers and works only on an AT&T
Inc. network. Parents also may balk at the $200 penalty to
switch wireless carriers, no matter how much their kids beg.


Read more at Bloomberg Exclusive News

S.Africa May trade deficit narrows to 2.7 bln rand

(Reuters) - South Africa recorded a trade deficit of 2.67 billion rand in May, compared to April's 5.67 billion rand shortfall, the South African Revenue Service said on Friday.

Analysts polled by Reuters last week had forecast a deficit of 4.8 billion rand, but the data is notoriously volatile and difficult to predict.


Read more at Reuters Africa

US STOCKS-Futures fall as inflation data awaited

(Reuters) - NEW YORK, June 29 - U.S. stock index futures
declined on Friday before data on a key measure of inflation, a
day after the Federal Reserve reaffirmed that rising price
pressure was its top economic concern.




Shares of Research In Motion Ltd. rose before the
opening bell after the maker of the Blackberry reported results
that beat analysts' estimates and received brokerage upgrades.
For details, see [ID:nN29283948]. Research in Motion surged
20.2 percent to $199.


Read more at Reuters.com Bonds News

Commerce Bancorp CEO retires as probe ends

(Reuters) - Commerce said it is creating an office of the chairman for Commerce Bank, comprising Dennis DiFlorio as chairman, Robert Falese as president and chief executive, and Douglas Pauls as chief financial officer. DiFlorio was most recently the bank's president, overseeing retail banking, while Falese was president of commercial and investment banking.




The company did not in a press statement say who will replace Hill as chief executive of Commerce Bancorp. A spokesman was not immediately available for comment.


Read more at Reuters.com Business News

BBVA to Hire 240 Derivatives Bankers in Madrid, London, Mexico, Hong Kong

(Bloomberg) -- Banco Bilbao Vizcaya Argentaria SA,
Spain's second-largest bank, is hiring 240 bankers worldwide
this year to boost its derivatives business.

BBVA recruited 151 of the bankers since January, including
Lorenzo Isla, 34, Barclays Capital's former head of structured
credit research in London, who will run credit derivatives in
Madrid. The Bilbao, Spain-based lender will add about 100 of the
new derivatives staff in Madrid and 115 in offices including
London, Frankfurt and Mexico City, said Ricardo Laiseca, head of
global markets. A team of 25 will start an equity derivatives
business in Hong Kong.


Read more at Bloomberg Emerging Markets News

CCS Income Trust to go private in C$3.5 bln bid

(Reuters) - CCS units last traded at C$37.89 on the Toronto Stock
Exchange, representing a 21-percent premium.




The investor group, headed by Werklund, includes, CAI
Capital Partners, Goldman Sachs Capital Partners, Kelso & Co.,
Vestar Capital Partners, British Columbia Investment Management
Corporation and O.S.S. Capital Management L.P.


Read more at Reuters.com Mergers News

Michigan County Leads Week's Municipal Borrowers With Sales at Record Pace

(Bloomberg) -- U.S. state and local governments
sold $11 billion of bonds this week, led by New York State's
Dormitory Authority and Michigan's Oakland County, helping to
put sales of tax-exempt bonds on pace to top 2005's record.

It was the third straight week that sales of new municipal
bonds exceeded the average of $7.7 billion so far this year,
according to data compiled by Bloomberg. A rise in bond yields
since last month is drawing buyers, even as governments seeking
to refinance debt or raise money for projects in case borrowing
costs rise further flood the market with offerings.


Read more at Bloomberg Bonds News

BHP Billiton, MTN lift S.African stocks higher

(Reuters) - South Africa's blue chip Top-40 index ended in positive territory on Thursday, led by miner BHP Billiton and mobile phone group MTN, as commodity prices rose and the rand currency firmed.

The Top-40 index closed 0.38 percent firmer at 25,666 points, ending a five-day losing streak, while the broader All-share index closed 0.42 percent higher at 28,402 points.


Read more at Reuters Africa

British Airways to be patient on Iberia -CEO

(Reuters) - offer, its chief executive said on Thursday. British Airways is part of a consortium led by private equity firm Texas Pacific Group [TPG.UL] that has bid 3.60 euros a share for Iberia.



The offer is expected to be rejected by Iberia's board at a meeting on Thursday in the hopes of receiving a rival bid, according to a source familiar with the situation.


Read more at Reuters.com Mergers News

DealTalk: Carlsberg professors brew big beer bid

(Reuters) - The heads of the company told Reuters this week that a big deal was in the offing, and analysts say the Copenhagen-based brewer has its long-term partner Scottish & Newcastle Plc in its sights.




The British group has a higher market value, but the professors have the firepower to succeed.


Read more at Reuters.com Business News

DAX Index Rises; Postbank Shares Jump After Commerzbank Expresses Interest

(Bloomberg) -- Germany's benchmark DAX Index rose
for the first time in six days, led by Deutsche Postbank AG
after Commerzbank AG said the rival would be an ``excellent
addition.'' MAN AG and Henkel KGaA also paced gains.

The DAX added 90.32, or 1.2 percent, to 7891.55 at 2:26
p.m. in Frankfurt. DAX futures expiring in September increased
1.1 percent to 7967. The HDAX Index of the country's 110 biggest
companies climbed 1.32percent.


Read more at Bloomberg Stocks News

Nymex Gas Plunges After Report of Larger-Than-Expected U.S. Inventory Gain

(Bloomberg) -- Natural gas in New York plunged after
a weekly government stockpile report showed inventories rose more
than normal for this time of year, exceeding analyst
expectations.

Gas in storage rose 99 billion cubic feet for the week ended
June 22, the Energy Department said today. Inventories were
expected to rise by 83 billion cubic feet last week, according to
the median of 23 responses in a Bloomberg survey of analysts. The
average increase over the past five years for the week is 92
billion, according to the department.


Read more at Bloomberg Energy News

Rite Aid shares jump on unexpected profit

(Reuters) - The company also stood by its full-year expectations and its shares rose as much as nearly 6 percent in morning trading.




Rite Aid bought the U.S. Brooks and Eckerd drugstore chains from Canada's Jean Coutu Group Inc. on June 4, just after the quarter ended.


Read more at Reuters.com Hot Stocks News

Barloworld executive quits after appointment seen racist

(Reuters) - The white deputy chairman of South African industrial group Barloworld Ltd resigned on Thursday after a state-owned major investor labelled his appointment as "racist".

Earlier this year Barloworld came under fire by the government's Public Investment Corporation (PIC), which has a 17 percent stake in the group, for having no black executive directors.


Read more at Reuters Africa

RPT-Kansas City Fed manufacturing index -2 in June

(Reuters) - Following are details from the survey:




Expected
MANUFACTURING SURVEY June May 6 mos.
Production -2 20 20 25
Shipments -1 18 18 27
New Orders 7 18 18 22
Backlog Orders 13 0 0 12
Number of employees 9 14 14 18
Average workweek -6 12 12 9
Finished product prices 17 17 17 41
Raw product prices 39 43 43 57
Capital expenditures N/A N/A N/A 22
Inventory-materials 12 7 7 3
Inventory-finished goods 7 2 2 1


Read more at Reuters.com Economic News

IMF chief Rato says to step down in October

(Reuters) - International Monetary Fund Managing Director Rodrigo Rato said on Thursday he would step down from his post in October for "personal reasons," cutting short his term.

Rato, who took office June 7, 2004, said he would depart after the IMF's fall meetings in October.


Read more at Reuters Africa

UPDATE 2-U.S. housing market slower but still strong-Hubbard

(Reuters) - "Housing has slowed down but the good news is it continues
to be relatively strong," he told reporters at the U.S. embassy
after meetings in Berlin with German Chancellor Angela Merkel
and European Union officials.




"It's been healthy that there's been a slowdown and it's
contributed to what appears to be a soft landing," he said.


Read more at Reuters.com Bonds News

Empire reports lower profit, hikes dividend

(Reuters) - The Stellarton, Nova Scotia-based company said it earned C$64.5 million , or 98 Canadian cents a share, for the three months ended May 5, compared to C$118.4 million, or C$1.80 a share, in the same quarter a year ago. It raised its annual dividend by 10 percent to 66 cents from 60 cents.






Read more at Reuters.com Market News

Gold, Silver Rise in New York as $70 Oil Sparks Demand for Inflation Hedge

(Bloomberg) -- Gold rose from a three-month low in
New York after oil topped $70 a barrel, boosting the appeal of
the precious metal as a hedge against inflation. Silver also
gained.

Gold sometimes moves in the same direction as oil, which
rose to a nine-month high today on speculation U.S. inventories
will drop. Before this year, gold has had six annual gains as
oil prices more than doubled.


Read more at Bloomberg Commodities News

Carlyle cuts IPO price due to market "headwinds"

(Reuters) - "We have priced the deal at $19 a share. Originally, it was $20-$22," CEO John Stomber told Reuters in an interview.




Stomber said the volume of the IPO had been cut to $300 million from $400 million. The issue would be postponed but the new date was unclear.


Read more at Reuters.com Business News

US STOCKS-Blue chips slip at open on inflation data

(Reuters) - The Nasdaq was higher. Chip maker Intel Corp.
received a brokerage upgrade.




The Dow Jones industrial average was down 19.03
points, or 0.14 percent, at 13,408.70. The Standard & Poor's
500 Index was down 0.99 points, or 0.07 percent, at
1,505.35. The Nasdaq Composite Index was up 0.09 points
at 2,605.44.


Read more at Reuters.com Bonds News

FACTBOX-Bond, share sales delayed by volatile markets

(Reuters) - The following is a list of recently postponed or cancelled
securities sales.







Read more at Reuters.com Bonds News

UPDATE 2-GM selling Allison for $5.6 bln; shares rise

(Reuters) - GM said the sale would include almost all of the Allison
Transmission unit's assets, including seven manufacturing
plants in Indianapolis and the unit's worldwide distribution
network.




GM had said in January that it was looking to sell Allison,
which makes transmissions for commercial trucks, buses and
military vehicles.


Read more at Reuters.com Bonds News

Canadian Stocks Gain for Second Day on Meridian Gold Takeover, Rising Oil

(Bloomberg) -- Canadian stocks rose for a second day,
led by commodity producers, after Meridian Gold Inc. received a
takeover proposal from rival bullion miners and prices of gold and
copper advanced.

Rising crude oil and natural-gas prices lifted such energy
producers as EnCana Corp., which had dragged the Standard &
Poor's/TSX Composite Index to three consecutive losses before
yesterday.


Read more at Bloomberg Stocks News

UPDATE 1-Fannie, Freddie had enough capital in Q1, says OFHEO

(Reuters) - WASHINGTON, June 28 - Mortgage finance companies
Fannie Mae and Freddie Mac FRE.N were "adequately
capitalized" during the first quarter of the year, the
companies' regulator said on Thursday.




The Office of Federal Housing Enterprise Oversight said the
both companies achieved the designation, the highest they can
receive concerning its reserves against possible losses, as of
March 31.


Read more at Reuters.com Government Filings News

Carlyle Group Reduces Size of $400 Million Mortgage Fund IPO by 25 Percent

(Bloomberg) -- Carlyle Group, the buyout firm run by
David Rubenstein, cut the size of the initial public offering for
a fund that invests in bonds backed by mortgages by 25 percent to
$300 million after a slump in the U.S. subprime market.

Carlyle trimmed the offering from $400 million and reduced
the price of the shares to $19 from a range of $20 to $22,
Carlyle Capital Chief Executive Officer John Stomber said in an
interview today. The firm said earlier in a statement it would
delay the pricing of the fund, which will mostly invest in AAA
rated residential mortgage-backed securities. The fund also
targets loans, junk bonds and collateralized debt obligations.


Read more at Bloomberg Bonds News

UPDATE 1-US May newspaper help-wanted ads fall to 1958 low

(Reuters) - The Conference Board said its gauge measuring help-wanted
ad volume in the United States slipped to 27 in May from 29 in
April. It was 33 a year earlier. The median view in a Reuters
poll of 17 economists was for an unchanged reading of 29.




"The labor market is slow and might even slow a little
further this summer," said Ken Goldstein, labor economist at
the Conference Board, in a statement.


Read more at Reuters.com Economic News

GM selling Allison Transmission for $5.6 billion

(Reuters) - GM had said in January that it was looking to sell Allison, which makes transmissions for commercial trucks, buses and military vehicles.




Read more at Reuters.com Mergers News

UPDATE 1-Spain's Acciona confirms to buy into U.S. wind farms

(Reuters) - Acciona did not give a value for the purchase from U.S. group
EcoEnergy, but earlier on Thursday Expansion newspaper said
analysts expected the acquisition to cost several million
dollars.




In a statement, Acciona said it expected to install about
150 MW of the total planned capacity in 2008 and would supply
its own wind turbines from a new factory in Iowa. The projects
are based in Illinois, Iowa and Wisconsin.


Read more at Reuters.com Mergers News

Atmel, Cisco, Intel, LSI, Meridian Gold, Red Hat: 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 9:30 a.m. New York time.

Atmel Corp. (ATML US) gained 14 cents, or 2.5 percent, to
$5.85. 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

Brazil Real Gains Most in 2-Weeks on Central Bank's Higher Growth Forecast

(Bloomberg) -- Brazil's currency advanced the most
in two weeks after the central bank raised its economic growth
forecast for the year.

The economy will grow 4.7 percent this year, up from the
previous estimate of 4.1 percent, according to the central
bank's quarterly report on inflation released on its Web site
today.


Read more at Bloomberg Currencies News

UPDATE 1-KB Home posts quarterly net loss, shares drop

(Reuters) - NEW YORK, June 28 - KB Home , the No. 5 U.S. home builder, posted a quarterly net loss on Thursday as home revenue dropped sharply due to the weak housing market.



KB Home, whose shares fell 2.3 percent in premarket trade, said the results reflected an oversupply of new and existing homes, aggressive competition and weak demand. It said it was unable to provide a full-year earnings forecast.


Read more at Reuters.com Market News

Dollar up vs yen, down vs euro ahead of Fed

(Reuters) - The dollar was down against the euro but up against the yen on Thursday as investors awaited the outcome of a two-day Federal Reserve policy meeting later in the session.

The central bank is seen holding rates at 5.25 percent but its statement will be scrutinised for clues on future policy.


Read more at Reuters Africa

Monsanto quarterly profit jumps 71 pct

(Reuters) - Monsanto said it posted net income of $570 million, or
$1.03 a share, for its third quarter, up from $334 million, or
60 cents a share, a year earlier.




Excluding a 1 cent-a-share loss for discontinued business,
Monsanto earned $1.02 a share.


Read more at Reuters.com Business News

UPDATE 1-U.S. 2007 first-quarter GDP growth 0.7 pct

(Reuters) - WASHINGTON, June 28 - The U.S. economy grew at a
0.7 percent annual pace in the first three months of this year,
the weakest in more than four years as businesses sold off
inventories but consumer spending remained strong, a Commerce
Department report on Thursday showed.




It was the weakest quarterly expansion in gross domestic
product, or GDP, since the fourth quarter of 2002 but slightly
better than the government's earlier 0.6 percent estimate for
growth during the quarter. Still, it was a tad weaker than the
0.8 percent growth economists were expecting.


Read more at Reuters.com Economic News

Alfa, Axtel, ICA, Medial Saude, Sonda Totvs: Latin America 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-Argentine banker says could buy YPF stake in 2008

(Reuters) - Enrique Eskenazi told leading Argentine newspaper La Nacion
that the deal would not be done as quickly as some Argentine
government officials had said.




"If it's done, it will be next year. This is a long
process," Eskenazi said.


Read more at Reuters.com Bonds News

KB Home posts quarterly net loss, shares drop

(Reuters) - NEW YORK, June 28 - KB Home , the No. 5 U.S. home builder, posted a quarterly net loss on Thursday as home revenue dropped sharply due to the weak housing market.



KB Home, whose shares fell 2.3 percent in premarket trade, said the results reflected an oversupply of new and existing homes, aggressive competition and weak demand. It said it was unable to provide a full-year earnings forecast.


Read more at Reuters.com Bonds News

US RATE FUTURES-Fretting over GDP inflation component

(Reuters) - CHICAGO, June 28 - U.S. short-term interest rate
futures extended losses slightly on Thursday as dealers focused
on upwardly revised inflation readings in the final
first-quarter GDP report.




"The higher inflation is what folks are focusing on. It's a
little disconcerting," said Mark Vitner, economist at Wachovia
Securities in Charlotte, North Carolina.


Read more at Reuters.com Bonds News

Treasuries Fall Before Federal Reserve Decision as Inflation Gauge Rises

(Bloomberg) -- Treasuries fell after a government
report showed inflation in the first quarter was faster than
previously estimated.

The report highlighted the risk of accelerating inflation
as the Federal Reserve met on interest rates in Washington. With
the central bank expected by all 113 economists surveyed by
Bloomberg News to leave its key rate unchanged at 5.25 percent
for an eighth straight time, investors will examine the
statement announcing the decision for clues about future moves.


Read more at Bloomberg Bonds News

Canada's Dollar Reaches Highest in Almost Two Weeks on Increase in Oil

(Bloomberg) -- The Canadian dollar rose to the
highest in almost two weeks on speculation an advance in crude
oil will lift the country's economic growth.

Investors also pushed up the Canadian dollar against the
yen as a rebound in Asia and European stocks encouraged
investors to seek higher-yielding assets funded by loans in
Japan, a practice known as the carry trade. Commodities
including oil make up about half of Canada's exports.


Read more at Bloomberg Currencies News

Cell C says ends buyout talks

(Reuters) - Shareholders in South Africa's Cell C have decided not to proceed with the sale of the company, the mobile phone group said on Thursday.

"The shareholders have taken the decision not to proceed with the sale of Cell C and to stop discussions with unsolicited parties about the sale of Cell C," Chief Executive Officer Jeffrey Hedberg said.


Read more at Reuters Africa

US STOCKS-Futures flat before Fed, data

(Reuters) - NEW YORK, June 28 - U.S. stock index futures were
little changed on Thursday before a packed agenda that includes
a Federal Reserve decision on interest rates and data that
could shed light on economic growth.




Semiconductors could give the market a lift after chip
makers Intel Corp. and Advanced Micro Devices Inc.
got brokerage upgrades. For details, see [ID:nWNA0822]
[ID:nWNA0851].


Read more at Reuters.com Bonds News

US RATE FUTURES-Hold at lower levels on GDP, claims

(Reuters) - The Commerce Department said first-quarter U.S. GDP growth
was 0.7 percent, annualized, up from 0.6 percent reported
earlier but below Wall Street's consensus forecast of 0.8
percent. Jobless claims fell modestly.




Read more at Reuters.com Bonds News

Inverness Medical gets FDA nod for malaria test device

(Reuters) - The drug maker said Januvia is the first and only medication in the class of drugs called dipeptidyl peptidase-4 inhibitors, which enhance the body's ability to lower blood sugar when it is elevated, to be adopted by the European Commission.






Read more at Reuters.com Government Filings News

Bond prices steady; await final GDP, FOMC

(Reuters) - Investors were also awaiting the final readings of first quarter gross domestic product and underlying price data before taking any positions in the market, analysts said.




"The highlight of the day is the FOMC statement," said Matthew Moore, economic strategist at Banc of America Securities in New York.


Read more at Reuters.com Hot Stocks News

Russia's Mechel 2006 net profit rises 58 pct

(Reuters) - Earnings before interest, taxation, depreciation and
amortisation were $1.068 billion, up from $726 million.




Read more at Reuters.com Market News

Unhappy Dillard's shareholder seeks talks

(Reuters) - New York-based Barington said it has "substantial
experience helping improve shareholder value" as an investor in
other retail, apparel and footwear companies, including Maxwell
Shoe, Nautica, Payless ShoeSource, Pep Boys, Steven Madden,
Stride Ride, Syms and Warnaco.




Dillard's shares closed Wednesday at $33.93.



Read more at Reuters.com Mergers News

Kenya unveils Novozymes deal, warns bio-pirates

(Reuters) - Kenya unveiled a biotechnology research agreement with the world's top industrial enzymes maker Novozymes on Thursday and vowed to tackle bio-pirates it accuses of plundering its rich natural resources.

Enzymes developed from rare microbes in the east African nation's Rift Valley soda lakes are a key ingredient of products ranging from detergent to animal feed and are also used for bleaching faded denim jeans.


Read more at Reuters Africa

PHH posts 1st-qtr profit

(Reuters) - Revenue rose 8.6 percent to $596 million.




In a regulatory filing, the company said revenue at its
mortgage servicing and fleet management services segments rose
$42 million and $22 million respectively, partially offset by a
$17 million decrease at its mortgage production segment.


Read more at Reuters.com Market News

Argentine banker says could buy YPF stake in '08

(Reuters) - "If it's done, it will be next year. This is a long
process," Eskenazi said.





Read more at Reuters.com Mergers News

General Mills 4th-quarter profit rises

(Reuters) - Analysts, on average, forecast 63 cents a share, according to Reuters Estimates.




Sales rose 7 percent to $3.06 billion. Analysts, on average, forecast $2.99 billion, according to Reuters estimates.


Read more at Reuters.com Business News

DealTalk: New-look infrastructure assets spice up auctions

(Reuters) - Infrastructure funds have built a following for buying low-risk, stable cash flow businesses, but some of the assets recently billed as infrastructure are more volatile, and risk leaving investors with headaches down the line.




Traditional infrastructure assets include privatized, regulated monopolies such as utilities and toll roads, necessities less susceptible to economic cycles and not as vulnerable to technological advances.


Read more at Reuters.com Business News

Mentor to buy French medical device company

(Reuters) - The deal is not expected to materially add or hurt adjusted
earnings per share for fiscal 2008, the company added.








Read more at Reuters.com Mergers News

Rite Aid posts higher quarterly profit

(Reuters) - Analysts, on average, expected the Camp Hill,
Pennsylvania-based retailer to post a loss of 1 cent per share,
according to Reuters Estimates.




Rite Aid bought the U.S. Brooks and Eckerd drugstore chains
from Canada's Jean Coutu Group Inc. on June 4,
just after the quarter ended.


Read more at Reuters.com Market News

Treasuries Are Little Changed as Fed Policy Makers Meet on Interest Rates

(Bloomberg) -- U.S. Treasuries were little changed
ahead of the Federal Reserve's interest-rate decision.

All 113 economists surveyed by Bloomberg News predict the
Fed will keep its key rate at 5.25 percent for an eighth time,
leaving Treasury yields below the central bank's benchmark.


Read more at Bloomberg Bonds News

UPDATE 1-Constellation Brands profit falls; affirms outlook

(Reuters) - The owner of Robert Mondavi, Vendage and Ravenswood wines
posted net income of $29.8 million, or 13 cents per share, for
the fiscal first quarter that ended May 31, compared with $85.5
million, or 36 cents per share, a year ago.




Excluding the impact of realigning its business and the
inventory actions, Constellation said it earned 21 cents per
share.


Read more at Reuters.com Market News

Iberdrola closes 3.4 bln euro cap hike placement

(Reuters) - A source close to the process had said Iberdrola would place
the shares at between 39.70 and 40.00 euros a share.




Read more at Reuters.com Mergers News

UPDATE 2-US home loan demand drops 2nd week to 4-month low

(Reuters) - 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.




Applications, however, were 16.8 percent above their year-ago level. The four-week moving average of mortgage applications, which smooths the volatile weekly figures, was down 0.7 percent.


Read more at Reuters.com Economic News

UPDATE1-Herley's two facilities suspended from federal contracts

(Reuters) - Shares of Herley, which designs and develops microwave
technology, were down more than 13 percent to $15.42 in morning
trade Wednesday on the Nasdaq.




The suspension arises out of certain discrepancies in the
test data for some equipment manufactured by Herley at its
Lancaster facility, the company said.


Read more at Reuters.com Government Filings News

Northwest Airlines shares fall after cancellations

(Reuters) - On average from Friday to Monday, Northwest canceled 10.7 percent of mainline flights, according to a statement released by the airline on Tuesday. In May, Northwest completed 99.1 percent of its scheduled mainline flights.




The No. 5 U.S. airline blamed the cancellations on air traffic control restrictions, severe summer weather and a high level of pilot absenteeism.


Read more at Reuters.com Hot Stocks News

Brazil's Real Erases Losses as Lower U.S. Treasury Yields Increase Demand

(Bloomberg) -- Brazil's currency was little changed,
erasing earlier losses, as declines in U.S. Treasury yields
helped lure some investors to the higher returns offered by the
country's debt.

U.S. stocks pared losses, which also helped spark demand for
riskier emerging-market assets, said Rodrigo Ferreira, a fixed-
income trader at Banco Alfa de Investimento in Sao Paulo.


Read more at Bloomberg Currencies News

Chittenden, H&R Block, Nuvelo, Spectra, SurModics: 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 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 $2.61, or 3.5 percent, to $72.05.
Sunoco lost $3.56 to $76.77 and Tesoro retreated $2.80 to $55.11.


Read more at Bloomberg Stocks News

AT&T Embrace of IPhone Threatens to Torpedo Sprint's Recovery, Share Price

(Bloomberg) -- Cary Fabrikant's devotion to Apple
Inc. spells trouble for his cellular carrier, Sprint Nextel Corp.

Fabrikant, a Miami sports agent, plans to forfeit $200 and
switch to AT&T Inc. to get an iPhone, Apple's blend of an iPod
music player with a mobile phone, when it goes on sale June 29.


Read more at Bloomberg Exclusive News

Wells Fargo CEO--Large out-of-market deal unlikely

(Reuters) - San Francisco-based Wells Fargo operates mainly in the western two-thirds of the United States.




Earlier Wednesday, Wells Fargo announced Stumpf's promotion to chief executive. He had previously been chief operating officer. Richard Kovacevich, who had been chief executive since 1998, will remain chairman.


Read more at Reuters.com Mergers News

Chile's Peso Weakens a Fourth Day on Lower-Than-Expected Industrial Output

(Bloomberg) -- Chile's peso dropped for a fourth
day after the country's industrial production grew less than
expected and copper fell.

Industrial production rose 3 percent in May from a year
ago, lower than the 4.9 percent median forecast from 11 analysts
in a Bloomberg survey. Copper, the country's biggest export,
fell on concern of slowing growth in the U.S., the world's
second-largest consumer of the metal.


Read more at Bloomberg Currencies News

Oil Rises on Report of Unexpected Drop in U.S. Gasoline Supply Last Week

(Bloomberg) -- Crude oil rose after an Energy
Department report showed an unexpected decline in U.S. gasoline
inventories last week.

Gasoline stockpiles fell 749,000 barrels, the first drop in
eight weeks, the report showed. An increase of 1.04 million
barrels was expected, according to the median of responses by 16
analysts surveyed by Bloomberg News. Inventories of distillate
fuel, a category that includes heating oil and diesel, plunged
2.28 million barrels. A 550,000 barrel gain was expected.


Read more at Bloomberg Energy News

UPDATE 1-Mexican markets down on soft U.S. economic data

(Reuters) - The peso gave up 0.42 percent to 10.8750 per
dollar, while the benchmark IPC stock index slipped 1
percent to 30,445 points.




The U.S. government report showed new orders for
long-lasting manufacturing goods fell more than expected in
May, suggesting the U.S. manufacturing sector may be weaker in
the second quarter than expected.


Read more at Reuters.com Bonds News

US STOCKS-Blue chips trim losses as energy shares recover

(Reuters) - 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].




The Dow Jones industrial average was down 34.79
points, or 0.26 percent, at 13,302.87. The Standard & Poor's
500 Index was down 1.59 points, or 0.11 percent, at
1,491.30. The Nasdaq Composite Index was up 4.24
points, or 0.16 percent, at 2,578.40.


Read more at Reuters.com Bonds News

Southwest Air to slow capacity growth

(Reuters) - Southwest has gotten off to a slow start this year,
buffeted by tougher competition and softening demand for air
travel. It has said it will likely not grow revenue fast enough
to achieve its long-standing target of 15 percent growth in
earnings before special items this year.




Read more at Reuters.com Business News

Rubber Sinks to Three Month Low in Tokyo as Supply Increases, Demand Slow

(Bloomberg) -- Rubber futures in Tokyo, the global
benchmark, fell to its lowest in three months on expectations
supplies will exceed demand as the peak consumption season ends.

Natural rubber contracts on the Tokyo Commodity Exchange
failed to rise to 300 yen a kilogram in the past two months, the
high season for demand, signaling to some traders that the
commodity has further to decline.


Read more at Bloomberg Commodities News

US stock indexes drop on durable goods, risk worries

(Reuters) - U.S. stocks opened down on Wednesday after weaker-than-expected durable goods data added to uneasiness about growth in the economy and corporate profits.

The Dow Jones industrial average was down 40.57 points, or 0.30 percent, at 13,297.09. The Standard & Poor's 500 Index


Read more at Reuters Africa

Herley says U.S. govt suspends two manufacturing facilities

(Reuters) - Herley said the affected operations include facilities in
Lancaster, Pennsylvania, Woburn, Massachusetts, and Chicago,
Illinois.





Read more at Reuters.com Government Filings News

Treasury Two-Year Note Yields Reach Lowest in a Month on Outlook for Risk

(Bloomberg) -- Treasury two-year notes rose,
pushing yields to the lowest in a month, as investors dumped
riskier assets and a government report showed orders for durable
goods fell more than forecast in May.

U.S., European and Asian stocks fell and the perceived risk
of owning U.S. corporate bond rose to a 10-month high in the
derivatives market on concern over the extent of investor losses
arising from defaults on subprime mortgage loans. Treasuries
gained as dealers prepared to bid on $13 billion of five-year
notes in the monthly auction of the securities today.


Read more at Bloomberg Bonds News

TREASURIES-Prices jump on sharp drop in durable orders

(Reuters) - Gains, however, were limited as market attention shifted to
the outcome of the Federal Reserve's two-day policy meeting,
which starts on Wednesday.




"Treasury prices have popped higher after a worse than
expected durable goods report. Some of are a
reaction to the number, while we are also getting some support
from global bond markets as well," said Beth Malloy, bond
market analyst with Briefing.com in Chicago.


Read more at Reuters.com Bonds News

US STOCKS-Indexes drop on durable goods, risk worries

(Reuters) - The Dow Jones industrial average was down 40.57
points, or 0.30 percent, at 13,297.09. The Standard & Poor's
500 Index was down 3.81 points, or 0.26 percent, at
1,489.08. The Nasdaq Composite Index was down 10.05
points, or 0.39 percent, at 2,564.11.




Read more at Reuters.com Bonds 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 Bonds News

Hungarian Stocks Lead Declines in Central Europe: World's Biggest Mover

(Bloomberg) -- Hungary's benchmark index fell from
a record, pacing declines in central European stock markets.

Mol Nyrt. tumbled after Deutsche Bank AG recommended
selling the stock and Hungary's prime minister said he will
fight a takeover of the country's largest oil company.


Read more at Bloomberg Stocks News

Andrew, Jones Soda, Mosaic, Nuvelo, Valero Energy: 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 9:30 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 $2.34, or 3.1 percent, to $72.32.
Sunoco lost $2.30 to $78.03 and Tesoro retreated $2.64 to $55.27.


Read more at Bloomberg Stocks News

Tullow to spend $104 mln on drilling in Namibia

(Reuters) - UK based oil and gas company Tullow Oil Plc said on Wednesday it was investing 750 million rand in exploration drilling for two more gas wells alongside the Kudu gas fields offshore Namibia.

Tullow Oil Managing Director for Africa Andrew Windham said the firm, which is developing the Kudu gas fields in Namibia, has sunk a rig in the first well and the results would be known in August.


Read more at Reuters Africa

Crude Oil Declines on Signs U.S. Refineries Bolstered Gasoline Production

(Bloomberg) -- Crude oil fell on speculation that an
Energy Department report today will show that U.S. refineries
bolstered production of gasoline and other fuels.

Gasoline stockpiles increased 1.04 million barrels in the
week ended June 22, according to the median of responses by 16
analysts surveyed by Bloomberg News. Inventories of distillate
fuel, a category that includes heating oil and diesel, rose
550,000 barrels. Refineries increased operating rates for the
first time in five weeks, the survey showed.


Read more at Bloomberg Commodities News

Treasury Two-Year Notes Advance the Most in Three Months on Risk Outlook

(Bloomberg) -- Treasury two-year notes rose the
most in three months as investors dumped riskier assets and a
government report showed orders for durable goods fell more than
forecast in May.

Asian and European stock markets and U.S. stock index
futures fell, and the perceived risk of owning U.S. corporate
bond rose to a 10-month high in the derivatives market, on
concern over the extent of investor losses arising from defaults
on subprime mortgage loans. Treasuries gained as dealers
prepared to bid on $13 billion of five-year notes in the
government's monthly auction of the securities today.


Read more at Bloomberg Bonds 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

UPDATE 1-Fidelity National to buy eFunds for $1.8 bln

(Reuters) - The deal will expand Fidelity National Information
Service's distribution capabilities and boost the
company's product offering.




FIS expects to realize about $65 million in annual cost
savings. It will finance the purchase through cash on hand and
recently secured long-term debt commitments. The deal is
expected to close by the end of the third quarter.


Read more at Reuters.com Mergers News

Best Buy to expand; raises dividend, share buyback

(Reuters) - The plan comes after Best Buy reported quarterly earnings last week that missed analyst estimates by a wide margin and gave a disappointing full-year forecast as television sales cooled.




The Minneapolis-based company said the number of stores in the United States and Canada could now approach 1,800, up from its prior plan to have 1,400. It currently has 1,035 Best Buy, Future Shop and Pacific Sales stores in those markets.


Read more at Reuters.com Business News

Dollar Extends Loss Versus Yen as Durable Goods Orders Decline in the U.S.

(Bloomberg) -- The dollar extended its loss versus
the yen after a report showed durable goods orders in the U.S.
declined last month more than economists had forecast.

Japan's yen earlier gained the most against the dollar in 10
weeks as investors pared holdings of emerging-market bonds and
stocks funded by loans in the Japanese currency. Signs of
weakness regarding demand for business equipment in the U.S. may
increase speculation of a cut in borrowing costs by the Federal
Reserve later this year to spur growth.


Read more at Bloomberg Currencies News

European stocks extend dip after weak US goods data

(Reuters) - European stocks extended their losses on Wednesday, led by mining and banking shares, after May U.S. durable goods figures came in weaker than expected.

The FTSEurofirst 300 index of top European shares traded down 0.8 percent at 1,573.9 points, close to its low for the session.


Read more at Reuters Africa

Mauritius IBL Q1 profit off 37 pct on lack of tuna

(Reuters) - First-quarter profit for Mauritius-based Ireland Blyth Limited fell 37 percent to 36.28 million Mauritius rupees from 57.28 million in the first quarter of 2006, company figures showed on Wednesday.

IBL, one of the Indian Ocean island's largest conglomerates, said a serious and uncommon shortfall in tuna fishing had hit its production of seafood, but a rebound was expected.


Read more at Reuters Africa

Gold Rises in London on Speculation Dollar's Rally Will End; Silver Falls

(Bloomberg) -- Gold snapped two days of declines in
London on speculation the dollar will stop strengthening against
other currencies, reviving demand for the precious metal as an
alternative investment. Silver also increased.

Bullion has dropped in five of the past seven weeks as
higher global interest rates and a strengthening U.S. currency
eroded the metal's investment appeal. The dollar dropped against
the yen today and the yield on the U.S. 10-year note fell.


Read more at Bloomberg Commodities News

UPDATE 1-U.S. May durable goods orders fell 2.8 percent

(Reuters) - WASHINGTON, June 27 - New orders for
long-lasting U.S.-made manufactured goods tumbled a
larger-than-expected 2.8 percent in May in a sign the
struggling U.S. manufacturing sector may be weaker in the
second quarter than expected.




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


Read more at Reuters.com Economic News

Canada's Dollar Declines Versus U.S. as Oil Falls, Dims Growth Outlook

(Bloomberg) -- The Canadian dollar fell against the
U.S. currency as crude oil declined, dimming the prospect of the
country's economy.

Commodities including oil make up half of Canada's exports.
Copper and platinum also dropped today. The Canadian currency
dropped for a third day against the yen, the longest losing
streaks since March, as investors pared holdings of riskier
assets funded by loans in Japan, known as the carry trade.


Read more at Bloomberg Currencies News

US STOCKS-Futures extend losses on durable goods data

(Reuters) - S&P 500 futures were down 4 points, well 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 lost 29 points,
and Nasdaq 100 futures were down 4.5 points.


Read more at Reuters.com Bonds News

MTN mulls building fixed network in South Africa

(Reuters) - African mobile operator MTN may build its own fixed-line network in South Africa to trim the levies it has to pay former monopoly Telkom to use its backbone and to meet demand for Internet access.

MTN's new head of southern and east Africa, Tim Lowry, said the company had paid about 10 million rand to build a pilot fibre optic cable linking Johannesburg's business hubs and may expand this to other key areas.


Read more at Reuters Africa

US STOCKS-Wall St set for lower start on liquidity jitters

(Reuters) - NEW YORK, June 27 - U.S. stock index futures
indicated a lower open on Wednesday on concern over a rising
Japanese yen, a signal that free-flowing liquidity that has
fueled gains in global equity markets could dry up.




On the economic agenda, the government will release data on
durable goods orders for May at 8:30 a.m. .
Economists forecast orders for long-lasting manufactured goods
to have fallen 1 percent last month.


Read more at Reuters.com Bonds News

UK's Jaeger happy to go it alone as sales surge

(Reuters) - High-end and luxury retailers boasting iconic brands have
attracted private equity investors looking to expand their
operations in emerging economies such as China and Russia, where
demand for designer clothes and accessories is booming.




CEO Belinda Earl, formerly head of department store group
Debenhams before its private equity buyout, said there
were "always the speculative calls" at Jaeger but that they had
never reached a stage at which money was discussed.


Read more at Reuters.com Market News

Goldman Sachs Meets Match in Googleplex When Recruiting College Graduates

(Bloomberg) -- Everyone wanted to hire Qiushuang
Zhang.

Before earning her master's degree in computer science at
Georgia Institute of Technology in May, Zhang had two job offers
from Goldman Sachs Group Inc., two from Microsoft Corp. and one
from Google Inc. Then a headhunter phoned to pitch a job at
Renaissance Technologies Corp., the $20 billion hedge fund firm
led by math guru James Simons.


Read more at Bloomberg Exclusive News

U.S. Stock Index Futures Drop; Energy Producers, Bear Stearns Shares Fall

(Bloomberg) -- U.S. stock-index futures fell after
energy producers retreated as the price of oil dropped to a
nine-day low.

ConocoPhillips, the third-largest U.S. oil company, slid
after it said it will record a charge of $4.5 billion to write
off its Venezuela projects. Bear Stearns Cos. declined after
the investment bank assigned its top mortgage trader to manage
the bailout of a hedge fund, underscoring the risk of losses.


Read more at Bloomberg Stocks 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

German Power Prices for July Decline to Three-Month Low; Next Year Gains

(Bloomberg) -- German power prices for delivery in
July fell to a three-month low as the contract neared expiration.
Power for next year rose for the first day this week.

Electricity delivered in July in Europe's biggest power
market declined as much as 73 cents, or 1.8 percent, to 39 euros
($52.41) a megawatt-hour at 12:40 p.m. Berlin time, according to
prices from broker GFI Group Inc. on Bloomberg. That's the lowest
since March 27.


Read more at Bloomberg Energy News

Iberdrola Completes Share Sale, People Say; Aimed to Raise $4.7 Billion

(Bloomberg) -- Iberdrola SA, the world's largest
owner of wind-power parks, completed a share sale aimed at raising
3.5 billion euros ($4.7 billion) to pay for U.S. utility Energy
East Corp., two people with direct knowledge of the offering said.

The Spanish utility planned to sell 85 million new shares
through a so-called accelerated offering, the Bilbao-based power
producer said earlier today in an e-mailed statement. The people
declined to be identified before Iberdrola makes an announcement.


Read more at Bloomberg Energy News

US STOCKS-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. For
details, see [ID:nL27771376].




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 Bonds News

U.S. Stock-Index Futures Rise; Oracle and Nike Shares Advance in Europe

(Bloomberg) -- U.S. stock-index futures rose on
speculation earnings will keep growing after Oracle Corp.
forecast higher sales than analysts estimated and Nike Inc. said
orders increased the most in a decade.

Oracle gained in Europe. The world's third-largest software
maker said sales may rise as much as 21 percent in the fiscal
first quarter. Nike, the world's biggest athletic-shoe maker,
also advanced. ConocoPhillips slid after the No. 3 U.S. oil
company said it will record a charge of $4.5 billion.


Read more at Bloomberg Stocks News

Czech Koruna Rallies From 15-Month Low Versus Euro as Carry Trades Unwound

(Bloomberg) -- The Czech koruna rose against the
euro for the first day eight as a drop in global equity markets
prompted investors to unwind so-called carry trades, moving to
low interest-rate currencies.

In carry trades, investors borrow in low interest-rate
currencies, such as the Japanese yen or the Czech koruna, and buy
other higher yielding assets. The yen today rose the most in 10
weeks versus the dollar after Japanese Finance Minister Koji Ami
warned investors yesterday they were taking risks in making one-
way bets against the currency in carry trades.


Read more at Bloomberg Currencies News

Corporate Bond Risk in Europe at Three-Month High on Subprime Risk Concern

(Bloomberg) -- The risk of owning European
corporate bonds rose to the highest in almost three months amid
concern hedge-fund losses in the U.S. subprime mortgage market
may snowball, according to traders of credit-default swaps.

Contracts on 10 million euros ($13 million) of debt
included in the iTraxx Crossover Series 7 Index of 50 European
companies jumped 11,500 euros to 228,000 euros, the highest
since April 2, according to Deutsche Bank AG. The rising cost of
credit-default swaps, contracts based on bonds and loans,
indicates deteriorating credit quality.


Read more at Bloomberg Bonds News

S.African union says rejects Implats wage offer

(Reuters) - South Africa's biggest mineworkers union has rejected an increased pay offer from Implats and declared a second dispute against the firm, a union official said on Wednesday.

The company made a "final offer" of wage rises of 7.5-9.0 percent, up from 6.5-7.0 percent, negotiator Eddie Majadibodu of the National Union of Mineworkers said.


Read more at Reuters Africa

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

Crude Oil Declines on Forecast for Increase in U.S. Gasoline Inventories

(Bloomberg) -- Crude oil fell to a nine-day low in New
York on forecasts U.S. gasoline supplies rose for an eighth
straight week.

An Energy Department report today will probably show U.S.
gasoline stockpiles gained 1 million barrels last week, according
to a Bloomberg News survey of analysts. A record 41.1 million
Americans may travel next week for the Independence Day holiday,
the AAA said in a survey released yesterday.


Read more at Bloomberg Commodities News

WRAPUP 1-U.S. new home sales ease, while confidence falls

(Reuters) - Sales of new U.S. homes fell 1.6 percent last month to an
annual rate of 915,000 from a downwardly revised rate of
930,000 in April, the Commerce Department said on Tuesday.
Analysts had been looking for May new home sales of 925,000.




While sales fell, sales prices rose. The median sales price
of a new home climbed 1.5 percent in May to $236,100 from
$232,700 in April. That marked a reversal for new homes from
April, when prices fell a record amount but sales rose
strongly.


Read more at Reuters.com Economic News

CDOs in `6-Inch Hooker Heels' Fooled Moody's and S&P, Pimco's Gross Says

(Bloomberg) -- Holders of some investment-grade
portions of collateralized debt obligations backed by subprime
mortgages will lose all of their money, according to Bill Gross,
manager of the world's biggest bond fund.

Bankers and money managers bundle securities into CDOs and
divide them into slices with credit ratings as high as AAA from
Standard & Poor's and Aaa by Moody's Investors Service.


Read more at Bloomberg Bonds News

Blackstone units fall below $31 IPO price

(Reuters) - The units traded as low as $30.36, down 6.4 percent, after losing nearly 8 percent on Monday. They jumped 13 percent in their market debut on Friday.




Analysts said the second-day decline was partly tied to investor concern that the private equity market may have run out of steam.


Read more at Reuters.com Business News

Canada's Dollar Little Changed as Report Shows U.S. New Home Sales Fell

(Bloomberg) -- The Canadian dollar was little
changed after U.S. statistics showed declines in new home sales
for May.

The government housing data may raise speculation the
Federal Reserve will cut interest rates this year, boosting the
allure of Canada's currency relative to the U.S. dollar. The
Canadian dollar's advance was capped on concern that slowing
U.S. growth may hurt Canada's exports. About 80 percent of
Canadian shipments go to the U.S.


Read more at Bloomberg Currencies News

June consumer confidence at 10-month low: survey

(Reuters) - The median forecast of economists polled by Reuters was for 105.5, down from an originally reported May reading of 108.0.




"A perceived softening in present-day business and employment conditions are the major reasons behind this month's pull-back in confidence," said Lynn Franco, director of the Conference Board Consumer Research Center.


Read more at Reuters.com Business News

Oil Falls More Than $1 a Barrel on Forecasts for U.S. Inventory Increase

(Bloomberg) -- Crude oil fell more than $1 a barrel
on forecasts that an Energy Department report will show U.S. oil
and fuel inventories rose.

Crude-oil stockpiles increased 1.05 million barrels in the
week ended June 22, according to the median of responses by 14
analysts surveyed by Bloomberg News. Inventories of gasoline and
distillate fuel, a category that includes heating oil and diesel,
also rose, the survey showed.


Read more at Bloomberg Commodities News

UPDATE 1-Dassault Systemes launches 3D Internet software

(Reuters) - Dassault, whose clients include blue-chip companies such as
U.S. planemaker Boeing and Japanese carmaker Toyota
, also said it was extending a partnership with
Microsoft .




"3D must be used by all and for all," Chairman and Chief
Executive Bernard Charles told Reuters on the sidelines of a
technology conference the company is holding.


Read more at Reuters.com Mergers News

Celgene, Dolby Laboratories, Huntsman, IXYS, W Holding: 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.

Advanced Medical Optics Inc. (EYE US) fell 23 cents, or 0.7
percent, to $33.71. The maker of contact lens care products
forecast a loss this year because of the recall in May of its
MoisturePlus contact lens solution. The company expects an
adjusted per-share loss of 95 cents to $1.15 this year, Advanced
said in a statement. That compares with a previous earnings
forecast of $1.40 to $1.55 a share. Shares lost 17 cents, or 0.5
percent, to $33.48 in regular trading yesterday.


Read more at Bloomberg Stocks News