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