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

Brazil's Lula remains popular despite corruption

(Reuters) - Despite the involvement of Lula's close allies and friends,
including the head of the Senate, in a series of graft scandals
in recent weeks, the president continues to get support because
of a strong economy and government social programs.




The survey polled 2000 people between June 18 and 22 and
has a margin of error of plus or minus 3 percentage points.


Read more at Reuters.com Bonds News

Oil drops $1, eyes on US stocks, Nigeria exports

(Reuters) - Oil fell $1 a barrel on Tuesday as investors weighed ample fuel stocks in top consumer the United States and the potential for higher Nigerian crude exports.

London Brent crude, now a better gauge of the global market than U.S. oil, dropped $1.04 to $70.32 a barrel by 1419 GMT, after gaining 18 cents on Monday. U.S. crude slid $1.05 cents to


Read more at Reuters Africa

Gold hits 3-1/2-month low on oil, metals sell-off

(Reuters) - Gold fell to a 3-1/2-month low of $642.50 an ounce in late European trade on Tuesday following a sharp fall in other key metals and oil prices, traders said.

Spot gold was quoted at $644.25/644.85 an ounce by 1441 GMT, compared with $650.80/651.40 in New York late on Monday.


Read more at Reuters Africa

US STOCKS-Indexes climb on M&A, lower bond yields

(Reuters) - NEW YORK, June 26 - U.S. stocks rose on Tuesday
as European companies made takeover offers for U.S. companies
in the health-care and chemicals sectors and bond yields
dipped, sending rate-sensitive stocks higher.




Utility stocks dominated the top percentage gainers on the
S&P 500 as the yield on the 10-year Treasury held near 5.08
percent. Hefty dividend-paying utilities are seen as more
attractive when bond yields are falling.


Read more at Reuters.com Bonds News

Sweden says M.Stanley has free rein in V&S sale

(Reuters) - Sweden's parliament last week passed a bill allowing the
centre-right government to sell Vin & Sprit, real estate firm
Vasakronan and mortgage lender SBAB.




The state already had leave to sell its stakes in three
listed firms -- telecoms operator TeliaSonera , Nordea
Bank AB and OMX , the Nordic bourse company
subject to a takeover bid from Nasdaq Stock Market .


Read more at Reuters.com Bonds News

US STOCKS-Indexes edge down after data

(Reuters) - The Dow Jones industrial average was down 2.04
points, or 0.02 percent, at 13,350.01. The Standard & Poor's
500 Index was down 0.67 point, or 0.04 percent, at
1,497.07. The Nasdaq Composite Index was down 1.03
points, or 0.04 percent, at 2,576.05.




Read more at Reuters.com Bonds News

Edgestone buys stake in Motion Picture Distribution

(Reuters) - The units of Movie Distribution closed at C$9.15 on the
Toronto Stock Exchange on Monday.







Read more at Reuters.com Mergers News

Dollar Weaker Versus Yen After Home Sales, Consumer Confidence Decline

(Bloomberg) -- The dollar pared losses versus the
yen after a report showed manufacturing in the Richmond area
increased for the first time since November.

The Richmond Federal Reserve Bank's index rebounded to a
reading of 4, from minus 10 during May.


Read more at Bloomberg Currencies News

Treasuries Are Little Changed Amid Decline in New Home Sales Last Month

(Bloomberg) -- Treasuries were little changed as a
Commerce Department report showed purchases of new homes dropped
in May and a private index of consumer confidence declined this
month to the lowest level since August.

Benchmark 10-year note yields rose less than 1 basis point,
or 0.01 percentage point, to 5.09 percent at 10:05 a.m. in New
York, according to bond broker Cantor Fitzgerald LP. Yields,
which move inversely to the note's price, touched 5.327 percent
on June 13, the highest since April 2002. The price of 4 1/2
percent securities due in May 2017 fell 1/32, or 31 cents per
$1,000 face amount, to 95 15/32.


Read more at Bloomberg Bonds News

Advanced Medical, Christiana, GeoPharma, 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.
Shares prices are as of 9:30 a.m. New York time.

Advanced Medical Optics Inc. (EYE US) fell 98 cents, or 2.9
percent, to $32.50. 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

Musharraf's Eroding Popular Support May Force Him to Loosen One-Man Rule

(Bloomberg) -- Four months of street protests have
eroded Pakistan President Pervez Musharraf's popular support,
threatening his plans to get re-elected while keeping control of
the military, the key to his power.

A constitutional amendment allowing the army chief of staff
to also hold the presidency expires at the end of this year. The
Pakistani leader, whose presidential term through an indirect
election ends Nov. 15, is facing U.S. calls for a loosening of
one-man rule, as well as the protesters' demands for a full
restoration of democracy.


Read more at Bloomberg Exclusive News

Lead Falls Most in a Month in London on Speculation Rally Was Overdone

(Bloomberg) -- Lead fell the most in more than a
month in London on speculation gains that drove the metal to a
record were exaggerated given signs that a supply squeeze is
easing. Copper, aluminum, nickel and zinc also fell.

Inventories of lead tracked by the London Metal Exchange
increased for a third straight day, climbing 0.8 percent to
46,400 tons, the LME said in a daily report. Stockpiles have
advanced 13 percent this year.


Read more at Bloomberg Commodities News

Treasuries Are Little Changed Amid Concern Over Weakness in Housing Market

(Bloomberg) -- Treasury two-year note yields held
near their lowest this month amid concern a weak housing market
will lead to losses for investors in mortgage-backed securities.

Two-year yields have dropped more than 10 basis points over
the past two trading days as dealers prepared to bid on $18
billion of the securities in the government's monthly auction
today. A Commerce Department report is forecast to show the pace
of new home sales slowed in May.


Read more at Bloomberg Bonds News

U.S. Stock-Index Futures Advance; Bear Stearns, Apple, Google Shares Climb

(Bloomberg) -- U.S. stocks advanced after oil prices
fell and concerns eased that losses tied to subprime mortgages
will hurt financial company earnings.

Freddie Mac, the second-biggest U.S. mortgage finance
company, gained after its treasurer said the subprime slump is
``contained.'' Apple Inc., maker of the iPod music player, and
Google Inc., the world's most popular Internet search engine,
climbed after brokerages recommended buying the shares.


Read more at Bloomberg Stocks News

PIMCO's Gross says "subprime crisis" not isolated

(Reuters) - He added that the subprime crisis will reduce consumption
and new home building in the next 12-18 months but that he
expected the Fed to lower interest rates at some point over the
next six months as an "insurance policy".




Read more at Reuters.com Bonds News

Bear Stearns not planning to bail out second fund: source

(Reuters) - Merrill Lynch analyst Guy Moszkowski said on Monday that he
thought Bear Stearns may have to bail out a second Bear-managed
fund, the High-Grade Structured Credit Strategies Enhanced
Leverage Fund, which was down around 23 percent through the
first four months of the year.




But Bear does not plan a bail-out for that second fund at
this juncture, a source said. Bear Stearns declined to comment.


Read more at Reuters.com Bonds News

Oil Drops on Forecasts for Increase in U.S. Petroleum, Fuel Inventories

(Bloomberg) -- Crude oil fell on forecasts that an
Energy Department report will show U.S. oil and fuel inventories
rose last week.

Crude-oil stockpiles increased 1.5 million barrels in the
week ended June 22, according to the median of responses by 13
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

Copper Futures Decline in New York on Concern Demand From China May Ease

(Bloomberg) -- Copper futures declined in New York
on signs demand may be slowing in the U.S. and China, the
world's two largest users of the metal.

U.S. new home purchases probably fell last month,
signaling the worst in the housing slump isn't over, economists
said before a government report today. Builders are the biggest
consumers of the metal. Chinese copper imports in May fell 37
percent from April, a sign the country may be oversupplied.
Copper fell 1.1 percent last week on demand concerns.


Read more at Bloomberg Commodities News

India to Invite Bids for 1 Million Tons of Wheat to Increase Stockpiles

(Bloomberg) -- India, the world's second-biggest
wheat consumer, will call bids by tomorrow to import 1 million
tons of the grain to boost reserves, a government official said.

The wheat is for delivery between August and November, the
official, who didn't want to be identified, told reporters in
New Delhi today.


Read more at Bloomberg Commodities News

Bear Stearns' Everquest withdraws IPO-filing

(Reuters) - Everquest is a Cayman Islands-registered business jointly run by Bear Stearns Asset Management and Stone Tower Capital LLC, a hedge fund firm specializing in debt. Everquest manages a portfolio of collateralized debt obligations, or CDOs, which are themselves packages of corporate loans, asset-backed securities and securities issued by other CDOs.




Everquest, which held $720 million of CDOs and other assets at the end of last year, filed plans on May 9 for an IPO. But the transaction immediately came under fire from critics who said the firm's close ties to Bear Stearns would lead to conflicts of interest.


Read more at Reuters.com Bonds News

Canada's Dollar Rises Before U.S. Report Forecast to Show Home Sales Fell

(Bloomberg) -- The Canadian dollar gained before a
U.S. report that is forecast to show new home sales declined
last month.

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 has gained 9 percent this year and reached a 30-
year high this month.


Read more at Bloomberg Currencies News

Apple, Cardinal Health, GeoPharma, Google: U.S. Equity Market 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. Shares prices are as of 8:15 a.m. New York time.

Apple Inc. (AAPL US) added 91 cents to $123.25 in trading
before U.S. exchanges opened. RBC Capital rated the shares
``outperform'' in new coverage, setting its price forecast at
$160. RBS said it saw further upside for Apple shares based on
the company's continued dominance of the MP3 player market with
its iPod and iTunes and gains from its Mac computers.


Read more at Bloomberg Stocks News

Bank of England Struggles to Retain Economists Lured by Big City Bonuses

(Bloomberg) -- The Bank of England's governing board
said it's concerned about an exodus of economists, who were lured
by higher pay in London's financial services industry last year.

``There has been some concern that the implementation of
changes to the staff mix in the monetary analysis and financial
stability areas has been adversely affected by a higher rate of
resignation and vacancies in the past year,'' the U.K. central
bank's directors said in its annual report, published yesterday.


Read more at Bloomberg Exclusive News

UPDATE 1-Kroger profit hit by labor charge, shares lower

(Reuters) - Profit was $336.6 million, or 47 cents per share, in the
fiscal first quarter ended May 26, up from $306.4 million, or
42 cents per share, a year earlier.




Analysts, on average, had expected Cincinnati-based Kroger
to earn 48 cents per share, according to Reuters Estimates.


Read more at Reuters.com Market News

Dong Workers Return to Coal Power Plants After Strike; Capacity Is Reduced

(Bloomberg) -- Dong Energy A/S, a Danish state-
owned utility that's planning to sell shares to the public, said
most workers had returned to their jobs amid a strike for better
pay. Power output remained reduced.

``We're still in a state of conflict but at the moment most
of the strikers have started working,'' said Jens Nybo Jensen, a
Dong spokesman based in Fredericia, Denmark, by phone today.
Only 30 workers were striking today at one of Dong's 10 Danish
power plants, he said.


Read more at Bloomberg Energy News

BCE, Nortel Networks, Telus, Zarlink Semiconductor: Canada Equity Preview

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

The Standard & Poor's/TSX Composite Index fell 144.17, or 1
percent, to 13,841.86 in Toronto.


Read more at Bloomberg Stocks News

Cantor Fitzgerald launches GoldRock asset manager

(Reuters) - GoldRock is being formed from the integration of Zenith
Asset Management LLC, a Los Angeles-based fund-of-funds firm
into Cantor. Mark Ostroff, a co-founder of Zenith, will become
president of GoldRock. He will report to Irvin Goldman, chief
executive of Cantor Fitzgerald Asset Management.




Read more at Reuters.com Bonds News

Psagot Ofek brokerage aims to double assets, value

(Reuters) - "We're talking about a doubling of clients, assets and the
company's value," Chairman Arik Steinberg told a news conference
on Tuesday. "This is based on organic growth."




He would not say by when the company planned to achieve its
targets but added that if it did decide to make any
acquisitions, it would change the targets accordingly.


Read more at Reuters.com Mergers News

Calpine Calif. Delta natgas unit back to full power

(Reuters) - The 811 MW Delta station, which entered service in 2002, is located in
Pittsburg in Contra Costa County, about 40 miles east of San Francisco. It
is a combined-cycle plant with three combustion turbines, two 182 MW units
and one 183 MW unit, and one steam turbine of 263 MW.




One MW powers about 700 homes in California.


Read more at Reuters.com Bonds News

Steelcase posts higher quarterly profit

(Reuters) - Analysts on average expected 19 cents a share and revenue
of $785.3 million, according to Reuters Estimates.




The U.S. office furniture industry has moderated recently,
with monthly orders in 2007 averaging about 5 percent growth
compared with the double-digit increases of the industry's peak
year in 2005.



Read more at Reuters.com Market News

Ventana board recommends no action on Roche bid

(Reuters) - Ventana's board will review Roche's offer and, following the commencement of the tender offer, make a recommendation to shareholders within 10 business days, the company said.






Read more at Reuters.com Mergers News

Treasuries Advance on Hedge Fund Concern, Before U.S. Economic Reports

(Bloomberg) -- U.S. 10-year Treasuries gained for a
third day on concern hedge fund losses tied to subprime mortgages
will become more widespread and stoke demand for government debt.

Benchmark debt advanced, sending 10-year yields to the
lowest in a week, as investors shifting out of riskier assets
pushed equity indexes down across Europe. Government securities
may also be buoyed before reports forecast to show consumer
confidence fell to a 10-month low in June and new home sales also
declined.


Read more at Bloomberg Bonds News

BlackRock to buy Quellos fund of funds business

(Reuters) - June 26 - Asset management firm BlackRock Inc. said it agreed to acquire the fund of funds business of Quellos Group LLC for up to $1.7 billion, in a move to expand its alternative investment operations. BlackRock said it will combine its hedge and private equity fund of funds activities, following the acquisition.



The combined business is expected to have more than $25.4 billion in assets under management.


Read more at Reuters.com Mergers News

Altria to move cigarette production to Europe for non-US markets

(Reuters) - The company expects to record an initial pre-tax charge of about $325 million, or 10 cents a share, in the second quarter for costs related to the program, with additional estimated charges of about $50 million for the remainder of 2007.







Read more at Reuters.com Mergers News

RPT-UPDATE 1-Arcelor postpones euro bond amid market volatility

(Reuters) - LONDON, June 26 - Arcelor Finance has put on hold
a planned two-part benchmark euro bond sale amid market
volatility related to worries about credit and the U.S. subprime
mortgage market, banks managing the sale said on Tuesday.




"Given the current volatility, Arcelor Finance have decided
to put their transaction on hold pending more stable market
conditions," one of the banks said.


Read more at Reuters.com Bonds News

Platinum Advances as Buying by Manufacturers Increases; Palladium Rises

(Bloomberg) -- Platinum rose in London on buying by
manufacturers attracted by yesterday's slide in prices.

``We've seen a little bit more interest,'' said Mark
Bedford, director of precious-metals marketing at Johnson Matthey
Plc in Royston, England. ``When prices dropped yesterday, there
was more interest from industrial buyers.''


Read more at Bloomberg Commodities News

Spreadtrum ups share offering by selling shareholders in IPO

(Reuters) - The offering is expected to be priced between $11 and $13
per ADS.





Read more at Reuters.com Government Filings News

UPDATE 1-EU to decide on several gambling legal actions

(Reuters) - "There will be some decisions made probably tomorrow by the
college on a number of member states," Oliver
Drewes, a spokesman for the European Union's executive arm, told
a regular briefing.




"This concerns France, Greece and Sweden for the moment.
Those are the decisions on the calendar for tomorrow," Drewes
said.


Read more at Reuters.com Government Filings News

Scottish Power Is Admitted to Endex to Trade Dutch Natural Gas Contracts

(Bloomberg) -- Scottish Power Plc's trading unit
joined the European Energy Derivatives Exchange to handle Dutch
natural gas contracts. JPMorgan Chase & Co. was admitted as the
exchange's seventh clearing member.

Glasgow-based Scottish Power became the 35th trading member
of Endex, the bourse said today in an e-mailed statement. It
will trade Dutch Title Transfer Facility gas futures, Endex
said.


Read more at Bloomberg Energy News

U.K. Benchmark FTSE 100 Drops, Led by BAE Systems and Cadbury Schweppes

(Bloomberg) -- U.K. stocks fell. BAE Systems Plc,
Europe's biggest weapons maker, headed for its steepest drop in 4
1/2 years after saying the U.S. started a probe into the
company's compliance with anti-corruption laws.

The benchmark FTSE 100 Index lost 12.6, or 0.2 percent, to
6575.8 as of 11:38 a.m. The FTSE All-Share Index fell 7.54, or
0.2 percent, to 3390.84. Ireland's ISEQ Index slipped 58.83, or
0.6 percent, to 9325.78.


Read more at Bloomberg Stocks News

UPDATE 1-Lennar posts quarterly loss on lower revenue

(Reuters) - Lennar posted a net loss of $244.2 million, or $1.55 a
share for the fiscal second quarter that ended April 30,
compared with net earnings of $324.7 million, or $2 a share, a
year earlier.




Analysts on average had forecast earnings of 1 cent a
share, according to Reuters Estimates.


Read more at Reuters.com Market News

BlackRock to buy Quellos fund of funds unit

(Reuters) - In addition, Quellos may receive up to an additional $970 million in cash and stock over three and a half years based on certain measures.







Read more at Reuters.com Business News