Sugar Rises to One-Week High on Speculation Ukraine Drought to Cut Supply

(Bloomberg) -- Sugar rose to a one-week high on
speculation that dry weather in Ukraine will curb the country's
sugar-beet production.

Ukraine has lost 780,000 hectares (1.9 million acres) of
planted grain area to a three-month drought. Ukraine, the
world's biggest exporter of barley, said June 21 the drought
will result in the smallest grain harvest in four years.


Read more at Bloomberg Commodities News

UPDATE 1-Airtran says second-quarter revenue likely fell

(Reuters) - In a government filing, the airline said its non-fuel costs
are expected to have fallen between 5.25 percent and 5.75
percent in the quarter.




Airtran, which has made a bid for rival Midwest Air Group
Inc. , said its load factors for the third quarter are
well ahead of the same period in 2006.


Read more at Reuters.com Mergers News

CHRONOLOGY-Boeing's path to the 787 Dreamliner

(Reuters) - 1910 - William E. Boeing buys shipyard in Seattle, which later becomes his first airplane factory




1917 - Boeing changes the name of Pacific Aero Products to the Boeing Airplane Co., making seaplanes for U.S. Navy


Read more at Reuters.com Business News

TREASURIES-Firm data bruises bonds ahead of jobs report

(Reuters) - NEW YORK, July 5 - U.S. government bonds fell on
Thursday after strong data on jobs and services dimmed
remaining hopes of a Federal Reserve rate cut anytime soon,
while markets braced for Friday's monthly employment report.




The Institute for Supply Management's gauge of the service
sector hit its highest in over a year, while a report on
employment in the private sector showed suprising strength.
Both releases sent bonds lurching lower. For details, see
[ID:nN05325462]


Read more at Reuters.com Bonds News

UPDATE 1-Dura Automotive to sell Atwood unit for $160 mln

(Reuters) - The deal, which needs U.S. Bankruptcy Court approval and is
subject to auction should competing bids emerge, would be a key
step in Dura's restructuring, the company said in a statement.
Dura hopes to exit bankruptcy in the fourth quarter.




Dura said Atwood Acquisition LLC, an affiliate of private
equity firm Insight Equity, expects to complete the deal by the
end of August.


Read more at Reuters.com Mergers News

Chile Stocks Fall as Economy Slows, Led by Endesa; Brazil's Usiminas Slips

(Bloomberg) -- Chile's main stock index fell the most
in almost a month on concern that shares have risen faster than
warranted by the country's economic growth.

Chile's IPSA index of 40 stocks fell a second day, shedding
38.35, or 1.1 percent, the most since June 7, to 3453.11 at 1:17
p.m. New York time, after slipping 0.2 percent yesterday. Power
producer Empresa Nacional de Electricidad SA led the retreat.


Read more at Bloomberg Stocks News

Investors pare Treasury allocations in week-survey

(Reuters) - On Thursday, the benchmark 10-year Treasury yield
was 5.13 percent, up from 5.11 a week ago but down
from 5.14 percent two weeks earlier.




Stone & McCarthy's market sentiment measures showed that
professional investors have turned slightly less bullish on
bonds, the Princeton, New Jersey-based firm said.


Read more at Reuters.com Bonds News

Weak Dollar Alone Won't Fix Trade Gap, New York Federal Reserve Study Says

(Bloomberg) -- A weaker dollar is unlikely to close
the U.S. trade deficit because foreign exporters have a long-term
interest in maintaining market share in America, the New York
Federal Reserve Bank said in a research note released today.

``Evidence suggests that a weaker dollar will boost foreign
demand for U.S. exports, but this adjustment by itself is
unlikely to close the deficit,'' wrote New York Fed economist
Linda Goldberg and Eleanor Wiske Dillon, a Ph.D. candidate at the
University of Michigan who previously worked at the Fed.


Read more at Bloomberg Currencies News

UPDATE 1-RBS-led consortium gets ABN offer extension

(Reuters) - British bank Barclays, which was also granted an extension
by Dutch market regulator AFM to file its formal offer until
July 23, is seeking to buy ABN for 62.8 billion euros .




RBS and its partners -- Spain's Santander and
Belgian-Dutch Fortis -- have offered to buy Dutch rival
ABN for 71.2 billion euros.


Read more at Reuters.com Mergers News

S&P cuts Home Depot's rating three notches

(Reuters) - "Despite still-sizable free cash flow generation, given
management's new financial policy, we expect most or all of
free cash flow will be used to repurchase shares and pay
dividends," S&P said in a statement.




S&P cut Home Depot's corporate credit rating by three
notches to "BBB-plus," the third-lowest investment grade, from
"A-plus." The outlook is stable, meaning another downgrade is
not expected over the next two years.


Read more at Reuters.com Bonds News

S&P cuts Movie Gallery rating deeper into junk

(Reuters) - S&P cut Movie Gallery's corporate credit rating one notch
to "CCC-plus," seven levels below investment grade, from
"B-minus."




"Movie Gallery remains challenged by poor industry
fundamentals," S&P said in a statement.


Read more at Reuters.com Bonds News

UPDATE 2-Dominion extends sale period for gas utilities

(Reuters) - NEW YORK, July 5 - Power company Dominion
Resources Inc. said on Thursday it extended the period to
sell two natural gas utilities to Equitable Resources Inc.
to give the companies time to resolve regulatory
issues.




The companies will attempt to separate the two utilities,
which are now operationally joined, in order to close the sales
at different times, said a Dominion spokesman. Prior to this
agreement, either company could have unilaterally walked away
from the deal after June 30.


Read more at Reuters.com Bonds News

Statoil shareholders approve N.Hydro oil merger

(Reuters) - "It was passed by a vast majority," Statoil's investment
relations chief said.




At a separate meeting in Oslo, Norsk Hydro shareholders
unamimously approved the plan, Hydro officials said.


Read more at Reuters.com Mergers News

Apple up on iPhone sale expectations

(Reuters) - AT&T Inc., the exclusive U.S. provider for the phone, said
it had virtually sold out of the device in that time, though
neither company has provided sales data.




"The stock is obviously anticipating very very strong sales
for the iPhone and very good follow-through sales," said Andy
Hargreaves of Pacific Crest Securities. "The stock isn't going
to be a one-month wonder."


Read more at Reuters.com Hot Stocks News

Boeing on track for record year

(Reuters) - Boeing took orders for 70 of its carbon-composite 787
Dreamliners in the April to June period, the first of which is
set to roll out of the company's Seattle-area plant for the
first time on Sunday.




Airlines also ordered 22 777 minijumbos and 136
single-aisle 737s.


Read more at Reuters.com Business News

WRAPUP 1-Canadian construction, purchasing activity heat up

(Reuters) - The value of building permits issued in May soared 21.4
percent from April to a record C$6.8 billion ,
largely due to plans for office buildings in Western Canada,
Statistics Canada reported.




That was more than triple the 5.6 percent gain forecast by
analysts in a Reuters poll. Statscan revised the April decline
in building permits to 7.3 percent from 8.4 percent.


Read more at Reuters.com Economic News

Emerging-Market Bonds Fall on Concerns About U.S. Subprime Mortgage Losses

(Bloomberg) -- Emerging-market bonds fell as concern
U.S. subprime mortgage woes may spread curtailed demand for
riskier, higher-yielding assets.

Developing nation debt has slumped as rising defaults in
U.S. mortgages to people with poor credit histories has triggered
losses at hedge funds. Bear Stearns Cos. said last month it would
bail out a fund that speculated in subprime mortgages. Rising
U.S. Treasury yields, sparked by concern the Federal Reserve will
raise interest rates, also lured investors away from emerging-
market debt.


Read more at Bloomberg Emerging Markets News

UPDATE 1-Assurant says 2 employees got notice SEC may sue

(Reuters) - Finite insurance policies were used by some insurers to
inflate quarterly earnings or camouflage losses until an
investigation by the SEC two years ago. They were called finite
because the risk in the policies was limited.




Assurant, a New York City-based specialty insurer, was one
of several companies, including XL Capital and Genworth
Financial , to receive subpoenas from the SEC in 2005.


Read more at Reuters.com Government Filings News

Nymex Gas Falls as Mild Weather Limits Demand for Ample Supply in the U.S.

(Bloomberg) -- Natural gas in New York fell,
extending a decline, as storage levels approach last year's
record and mild weather across much of the U.S. trims summer
cooling demand.

Gas for August delivery plunged 13.6 cents, or 2 percent, to
$6.615 per million British thermal units in 12:02 p.m. trading on
the New York Mercantile Exchange.


Read more at Bloomberg Energy News

Crude Oil Falls From a 10-Month High on Higher U.S. Gasoline Inventories

(Bloomberg) -- Crude oil was little changed after
surging to a 10-month high in New York amid expectations that
U.S. gasoline inventories will increase during July.

Gasoline stockpiles rose 1.85 million barrels to 204.4
million last week, according to an Energy Department report. U.S.
refineries operated at 90 percent of capacity, up 0.6 percentage
point from the prior week. Gasoline output rose 0.6 percent to a
record 9.4 million barrels a day. Implied demand for the fuel was
little changed at 9.56 million barrels a day.


Read more at Bloomberg Commodities News

Citizens Communications to buy Global Valley

(Reuters) - Citizens said it reached an agreement with Country Road Communications LLC to buy 100 percent of Evans Telephone Holdings Inc., the parent company of Global Valley Networks and GVN Services. The deal is expected to close in six to nine months.



"Global Valley has properties in fast-growth rural areas that meet all of our acquisition criteria," Citizens Chief Executive Maggie Wilderotter said in a statement.


Read more at Reuters.com Mergers News

UPDATE 1-Dominion extends sale period for its gas utilities

(Reuters) - The companies will attempt to separate the two utilities,
which are now operationally joined, in order to close the sales
at different times, said a Dominion spokesman. Prior to this
agreement, either company could have unilaterally walked away
from the deal after June 30.




The sale of Dominion's Pennsylvania and West Virginia
natural gas utilities to Equitable Resources faces regulatory
hurdles.


Read more at Reuters.com Mergers News

HEADLINE STOCKS - U.S. stocks on the move on Thursday

(Reuters) - HILTON HOTELS CORP.




BLACKSTONE GROUP


Read more at Reuters.com Mergers News

US HIGH YIELD-Market turmoil may spell end to easy money

(Reuters) - Following a tumultuous two weeks in which several junk bond
sales were pulled or terms sweetened to draw buyers, all eyes
will be on a spate of bond sales expected after this week's
Fourth of July holiday hiatus for a clue to the appetite for
risky debt.




Few are talking about a broad credit tightening, since it
is mostly the riskiest deals that have struggled to find
buyers, yet the days of freewheeling financing for all comers
are likely over, investors said.


Read more at Reuters.com Mergers News

Ecuador President Correa Doesn't Rule Out Debt Moratorium, Efe Reports

(Bloomberg) -- Ecuadorean President Rafael Correa
said he doesn't rule out a ``unilateral moratorium'' or an
``aggressive renegotiation'' of the country's foreign debt, Efe
reported.

Correa said in an interview the government has serviced its
debts since he took office in January because it has had the
money, Efe reported. He said his government could halt interest
payments or renegotiate the debt at any moment should the country
run short of funds, Efe reported.


Read more at Bloomberg Emerging Markets News

Forecasts for `Correction' in U.S. Stocks Reach Highest Since August 1997

(Bloomberg) -- More financial advisers are predicting
a so-called correction in the U.S. stock market than at any other
time in almost a decade, according to Investors Intelligence.

The percentage of newsletter writers who said they expect a
10 percent slide in U.S. stocks during the next 12 months jumped
to 32.6 percent last week, New Rochelle, New York-based Investors
Intelligence said. That's the highest since August 1997 and up
from 25.8 percent a week earlier.


Read more at Bloomberg Stocks News

Egyptian shares rise despite cautious sentiment

(Reuters) - Egyptian shares continued a week-long rally as the CASE30 index recorded a new year closing high for a third consecutive day on Thursday, despite cautious investor sentiment, according to analysts.

Market performance during the day was relatively volatile as it headed down early in the session before reversing the trend before the market's close.


Read more at Reuters Africa

Nigerian naira slips against dollar on liquidity ease

(Reuters) - The Nigerian naira slipped to 127.25 to the greenback on the interbank market on Thursday from 127.20 on Tuesday on a slight easing in naira liquidity in the market, traders said.

The central bank reopened its repo window on Thursday to allow retail banks that required cash borrow to ease the tight liquidity that had forced them to sell their dollar holdings for the naira earlier in the week, dealers said.


Read more at Reuters Africa

KKR Accepts Borrowing Limits in Record $22 Billion Alliance Boots Buyout

(Bloomberg) -- Kohlberg Kravis Roberts & Co. will
accept borrowing limits imposed by lenders funding its 11.1
billion-pound ($22 billion) purchase of Alliance Boots Plc, as
investors shun risky assets, bankers arranging the deal said.

KKR is meeting with investors today to raise 9.02 billion
pounds in loans for Nottingham-based Boots, the biggest U.K.
drugstore chain. The loans will include limits on the amount of
debt the company can have relative to its cashflow, through so-
called maintenance covenants, said the bankers, who declined to
be named because the terms aren't public.


Read more at Bloomberg Bonds News

US private sector adds 150,000 jobs in June- report

(Reuters) - The consensus estimate of 23 economists surveyed by Reuters
was for the ADP report to show 100,000 new private sector jobs
in June.




Macroeconomic Advisers said it revised up by 1,000 to
98,000 the number of jobs created in May.


Read more at Reuters.com Economic News

UPDATE 2-US private sector adds 150,000 jobs in June-report

(Reuters) - Over the three months ending in June, estimated job growth
in the report has averaged about 103,000, said ADP Employer
Services, whose employment report was jointly developed with
Macroeconomic Advisers LLC.




The consensus estimate of 23 economists surveyed by Reuters
was for the ADP report to show 100,000 new private sector jobs
in June.


Read more at Reuters.com Economic News

UPDATE 1-U.S. June services growth rises to 1-year high-ISM

(Reuters) - The Institute for Supply Management's services index rose
to 60.7 from 59.7 in May. The median forecast among analysts
polled by Reuters was 58.0. A number above 50 indicates
growth.




The dollar rose to the day's highs versus the euro
but U.S. stocks showed little reaction to
the data, maintaining the day's earlier losses. Government
bonds , which usually benefit from signs of slowing
growth, extended their earlier losses.


Read more at Reuters.com Economic News

Partner Communications served lawsuit alleging over-billing

(Reuters) - If the lawsuit is certified as a class action, the total
amount claimed from Partner is estimated to be about 1.5
billion shekels by the plaintiff, it added.








Read more at Reuters.com Government Filings News

Pound Falls Against Dollar as U.S. Services Growth Unexpectedly Quickens

(Bloomberg) -- The U.K. pound fell against the
dollar after a U.S. report showed growth in service industries
unexpectedly quickened to the fastest pace in 14 months.

The pound has climbed nearly 3 percent versus the dollar
this year on anticipation U.K. economic growth that's outpacing
the U.S. will prompt the Bank of England to keep raising
interest rates. Expansion in U.S. service businesses, which make
up almost 90 percent of the economy, adds to evidence growth
picked up last quarter.


Read more at Bloomberg Currencies News

Brazil's Real Weakens on Concerns Yield Difference to Treasuries to Narrow

(Bloomberg) -- Brazil's real fell on concern
inflationary pressure in the U.S. may lead to higher interest
rates in the world's largest economy and reduce the allure of
local bonds and stocks.

Yields on U.S. Treasuries rose today after a report showed
U.S. companies added more jobs than expected in June.


Read more at Bloomberg Currencies News

Rich U.S. investors' outlook dimmed in June-survey

(Reuters) - Retreating from a 15-month high in May, Spectrem's
Millionaire Investor Index also retreated to April levels.




While both readings were higher than March's numbers, which
reflected February's global equities sell-off, the survey
results suggested a return to caution in the wake of rising
bond yields, turbulence in the subprime credit markets and a
shaky daily equities outlook that characterized June
investments.


Read more at Reuters.com Bonds News

TREASURIES-Bonds fall on lower European debt, ADP jobs data

(Reuters) - NEW YORK, July 5 - U.S. Treasury debt prices fell
on Thursday, following the lead of weaker euro zone debt and
after stronger-than-expected data on jobs gave a boost to
investor forecasts for Friday's non-farm payrolls report.




Euro zone debt fell on Thursday before an interest rate
decision by the European Central Bank, which, as expected left
rates on hold at 4 percent.


Read more at Reuters.com Bonds News

Jones Apparel gets higher rival bid for Barneys

(Reuters) - PHILADELPHIA, July 5 - Jones Apparel Group Inc. said on Thursday it received an unsolicited bid from Fast Retailing Co. Ltd. to acquire Barneys New York Inc. for $900 million, which tops Jones' existing pact to sell the upscale clothing chain for $825 million.



Jones said it will provide financial information and enter negotiations with Fast Retailing, a Japanese clothing company. Jones' agreement to sell Barneys to Dubai-owned private equity firm Istithmar remains in effect, however.


Read more at Reuters.com Bonds News

REFILE-WRAPUP 1-US jobs market shows strength, jobless claims up

(Reuters) - NEW YORK, July 5 - The U.S. jobs market showed
some signs of strength in June as private employers added more
jobs than expected and planned layoffs decreased, but initial
claims for unemployment insurance edged up last week, reports
showed on Thursday.




Another report, by a global online careers and recruiting
firm, showed a gauge of U.S. online recruiting dipped in June,
suggesting that a seasonal summer hiring slowdown may have come
earlier than normal.


Read more at Reuters.com Bonds News

Hilton Shares Gained Most Since 2005 Before $20 Billion Takeover Agreement

(Bloomberg) -- Hilton Hotels Corp.'s stock price
surged prior to the announcement that the second-largest U.S.
hotel chain will be acquired by New York-based Blackstone Group
LP for about $20 billion in cash.

Hilton shares climbed $2.18, or 6.4 percent, to $36.05
yesterday in New York, their biggest rally since 2005. After the
close of trading, Blackstone, the world's biggest publicly traded
buyout firm, said it will pay $47.50 a share for Beverly Hills,
California-based Hilton.


Read more at Bloomberg Exclusive News

Coffee Gains for Second Day on Forecast for Declining Robusta Supplies

(Bloomberg) -- Robusta coffee climbed for a second
day in London after Dow Jones reported that Indonesian supplies
have plunged and a forecast that production will drop next year.

Indonesian production and exports dropped by two-thirds in
the first six months of the year because of delays in the
harvest, Dow Jones reported today. The country is the world's
second-biggest grower of the bitter-tasting beans. Global output
may fall 9.2 percent in the next crop season, ending September
2008, commodity researcher F.O. Licht said yesterday.


Read more at Bloomberg Commodities News

Ford submits sole bid for Romania's Daewoo Craiova

(Reuters) - Romania wants to sell a 72.4 percent stake in Daewoo Automobile Craiova. Earlier this year, Romania said it had received letters of intent from General Motors Corp. and Russian Machines, as well as Ford.




The government has previously wanted to sell 95 percent of Daewoo, by adding a 22 percent stake owned by investment company SIF Oltenia to the tender, but AVAS told Reuters the company has withdrawn from the sale.


Read more at Reuters.com Business News

Canadian Bank Stocks Fall, Led by Scotia Bank; Petro-Canada Shares Advance

(Bloomberg) -- Canadian financial shares declined, led
by Bank of Nova Scotia and Manulife Financial Corp.

Shares of such energy producers as Petro-Canada advanced,
keeping the Standard & Poor's/TSX Composite Index little changed.
The S&P/TSX slipped 5.96, or less than 0.1 percent, to 14,054.43 as
of 9:50 a.m. in Toronto.


Read more at Bloomberg Stocks News

U.K. Natural Gas Declines After Forecast for Fuel Supplies Is Increased

(Bloomberg) -- U.K. natural gas for next-day
delivery fell from a four-month high after forecasts for supply
today increased. Shippers continued stockpiling gas now for sale
at a later date and exported supplies of the fuel to Belgium.

Gas for delivery a day ahead fell as much as 7.1 percent to
23.5 pence a therm, according to prices from broker ICAP Plc on
Bloomberg. It traded at 24.40 pence a therm at 12:09 p.m. in
London. The price is equivalent to $4.92 a million British
thermal units. A therm is 100,000 Btus.


Read more at Bloomberg Energy News

Gold gains on weaker dollar, firm oil

(Reuters) - A weaker dollar and firm oil prices lifted gold prices by about $2 an ounce on Thursday, but the market largely ignored announcements by European and UK central banks on interest rates.

Gold was at $656.20/656.80 an ounce by 1238 GMT, against $654.40/655.20 in late European trade on Wednesday, when the U.S. market was closed for the Independence Day holiday.


Read more at Reuters Africa

US stock indexes fall on rate worries, GM declines

(Reuters) - U.S. stocks fell on Thursday as rising bond yields fueled concern about higher borrowing costs, offsetting earlier optimism about a $20 billion buyout of Hilton Hotels Corp.

General Motors Corp. dragged on the Dow. The largest U.S. automaker's shares fell in reaction to a steeper-than-expected drop in U.S. sales in June. On Thursday, Bear Stearns cut its recommendation on General Motors' stock.


Read more at Reuters Africa

CVS June same-store sales rise 5.4 percent

(Reuters) - June same-store pharmacy sales increased 4.7 percent, while same-store sales of general, or "front-end," merchandise such as candy and cosmetics rose 6.8 percent.



In the second quarter same-store sales rose 5.7 percent. Pharmacy same-store sales rose 5.7 percent during the quarter, while front-end same-store sales rose 5.9 percent.


Read more at Reuters.com Market News

Cognos raises stock buyback program

(Reuters) - As of July 3, Cognos has repurchased 4.9 million shares
under the current program.





Read more at Reuters.com Mergers News

UPDATE 1-Jones Apparel gets new unsolicited bid for Barneys

(Reuters) - PHILADELPHIA, July 5 - Jones Apparel Group Inc. said on Thursday it received an unsolicited bid from Fast Retailing Co. Ltd. to acquire Barneys New York Inc. for $900 million, which tops Jones' existing pact to sell the upscale clothing chain for $825 million.



Jones said it will provide financial information and enter negotiations with Fast Retailing, a Japanese clothing company. Jones' agreement to sell Barneys to Dubai-owned private equity firm Istithmar remains in effect, however.


Read more at Reuters.com Mergers News

UPDATE 1-Hilton would pay $560 mln Blackstone break-up fee

(Reuters) - Blackstone, which agreed to buy Hilton for about $20
billion plus debt, will pay Hilton $660 million if it backs out
of the deal, Hilton said in a filing with the U.S. Securities
and Exchange Commission.




Break-up fees are customary in takeover deals and are put
in place to dissuade the sides from walking away.


Read more at Reuters.com Mergers News