Japan's Bonds Head for Biggest Advance in Six Months on Subprime Concerns

(Bloomberg) -- Japan's 10-year bonds headed for the
biggest gain in six months after credit-rating downgrades of U.S.
subprime mortgages sparked demand for government debt.

The yield on the benchmark 1.8 percent bond due in June
2017 slid 5 basis points to 1.91 percent in Tokyo as of 9:30 a.m.
at Japan Bond Trading Co., the nation's largest interdealer debt
broker. The decline in yields, which move inversely to prices,
was the steepest since January 19.


Read more at Bloomberg Bonds News

South Korean Stocks Fall, Snapping 7-Day Climb; Samsung Electronics Drops

(Bloomberg) -- South Korean stocks fell for the first
time this month after investors judged recent gains excessive.
Samsung Electronics Co. led the decline.

LG.Philips LCD Co. advanced after it reported its first
profit in five quarters.


Read more at Bloomberg Stocks News

Japanese Stocks Drop on U.S. Retailers' Profit Concerns, Yen's Strength

(Bloomberg) -- Japanese stocks declined after profit
warnings from U.S. retailers increased concern the housing slump
is spreading to other parts of the economy. Toyota Motor Corp.
was poised to drop as selling pressure on exporters was amplified
by the second-biggest jump in the yen this year.

Standard & Poor's 500 Index fell 1.4 percent, its worse
decline in a month. Companies such as Sears Holdings Corp. and
Home Depot Inc. said yesterday profits may drop as sales decline,
indicating that a weak housing market and rising defaults on
subprime loans may be affecting consumer spending.


Read more at Bloomberg Stocks News

Yen Retreats From 1-Month High; Speculation Japanese Individuals Selling

(Bloomberg) -- The yen erased an advance to a one-
month high against the dollar on speculation Japanese retail
investors are selling the currency in search of higher returns.

The yen traded at 121.76 per dollar at 9 a.m. in Tokyo
from as high as 120.99 and from 121.74 late in New York yesterday.
Japan's currency traded at 167.41 per euro from as high as 166.61.


Read more at Bloomberg Currencies News

Komatsu may boost dividend to 50 yen by FY09 -paper

(Reuters) - For 2009/10, Komatsu's net profit is expected at 240 billion
yen, up 46 percent from the year ended March, thanks to
construction booms in markets such as China, Europe and the
Middle East, the newspaper said.




Read more at Reuters.com Market News

U.S. SEC mulls 5 pct ownership for proxy access

(Reuters) - The U.S. Securities and Exchange Commission is under the
gun to propose new proxy access rules in time for 2008 annual
shareholder meetings and agency Chairman Christopher Cox has
promised to roll out the first draft by the end of July.




But there are crucial variables around any proxy access
proposal. They include how many shares must be owned and for
how long before a shareholder can nominate a director.


Read more at Reuters.com Government Filings News

Australia Dollar Drops Most in 4 Months Versus Yen as Carry Trades Unwound

(Bloomberg) -- The Australian dollar dropped the
most in four months against the yen as a fall in U.S. stocks
prompted investors to pare positions funded by loans in Japan.

The local dollar declined for the second day after the
Standard & Poor's 500 Index fell the most in a month on concern
subprime mortgage losses will worsen a housing slowdown. Japan's
0.5 percent overnight lending rate has prompted investors to
borrow yen to take advantage of Australia's 6.25 percent interest
rate. The so-called carry trade has helped the currency gain 11
percent versus the yen this year.


Read more at Bloomberg Currencies News

CORRECTED - Moody's weighs ratings as drug-patent lapses near

(Reuters) - NEW YORK, July 10 - Moody's Investors Service on
Tuesday said a wave of patent expirations on blockbuster drugs
between 2010 and 2012 could lead it to begin lowering its
credit ratings on a number of large U.S. drugmakers several
years before then.




Eli Lilly and Co. , Pfizer Inc. and
Bristol-Myers Squibb Co. are particularly vulnerable to
the downgrades because the top-selling drug of each expires in
that period.


Read more at Reuters.com Bonds News

Banks and brokers shares fall on subprime woes

(Reuters) - Declines were led by banks perceived to have high exposure to mortgages and other fixed income businesses, including Lehman Brothers Holdings Inc. , which fell 5 percent, and Bear Stearns Cos. , which fell as much as 4.1 percent.




Lenders specializing in mortgages dropped as well. Countrywide Financial Corp. shares fell 3.7 percent, while the shares of subprime specialist NovaStar Financial Inc. fell 8.7 percent.


Read more at Reuters.com Business News

Wall St's fear gauge lights up as U.S. stocks slide

(Reuters) - "A combination of pre-earnings angst, higher energy prices, and worries about credit problems have driven risk perceptions sharply higher," said Frederic Ruffy, analyst at Optionetics, an options education firm in Redwood City, California.




Commonly called Wall Street's fear gauge, the VIX often rises to indicate participants are bidding up index options as they become more nervous about the market.


Read more at Reuters.com Bonds News

Asian Stocks Fall in U.S. Trading as Infosys Shares Drop; LG.Philips Rises

(Bloomberg) -- Asian stocks trading in the U.S.
slipped, led by Infosys Technologies Ltd., on expectation the
Indian software company will report the slowest profit growth in
more than a year.

The Bank of New York Co.'s Asia ADR Index, tracking the
region's American depositary receipts, fell 1.1 percent to 171.16,
the biggest drop since June 22.


Read more at Bloomberg Stocks News

Bond bears turn tail in subprime scare

(Reuters) - Credit ratings agency Standard & Poor's stunned markets on Tuesday by warning of possible downgrades to a slew of mortgage-backed debt, boosting Treasuries but sending shivers through the riskier sectors of the fixed-income market.




Even though the economy has bounced back from earlier scares in the subprime sector, which targets borrowers of lower credit quality, this latest bout of jitters should still tamp down yields until the scope of the damage is known.


Read more at Reuters.com Business News

Colombian says may up '08 external financing plan

(Reuters) - "Clearly, if we do not sell ISA and Isagen we will have to
think about increasing the amount of external indebtedness in
order to replace that loss in expected revenue," Julio Torres,
Colombia's director of public credit, told Reuters.




The Andean country plans $1 billion in external financing
next year. Should the ISA and Isagen deals be canceled, the
increase in indebtedness would not exceed $2 billion, meaning
that total new external debt next year would not be over $3
billion, Torres said.


Read more at Reuters.com Bonds News

Subprime worries quickly reshaping rate ideas

(Reuters) - Short-term interest rate futures, which measure market expectations of likely Fed policy, jumped on Tuesday after Standard & Poors said it might cut $12 billion in debt tied to subprime mortgages.




Rival Moody's Investor Services later said it had cut ratings of 399 mortgage-backed securities and was eyeing downgrades on another 32.


Read more at Reuters.com Bonds News

Venezuela Bolivar Little Changed Before Central Bank Steps to Spur Savings

(Bloomberg) -- Venezuela's currency was little
changed in unregulated, parallel market trading before the
central bank announced measures to spur savings and slow
inflation.

After trading closed today, the central bank said it would
raise the minimum rates on savings and certificates of deposit
and the reserve requirement beginning July 16. Finance Minister
Rodrigo Cabezas said earlier today the central bank would
announce a new policy to lower the amount of money in
circulation and encourage saving.


Read more at Bloomberg Currencies News

Bear Stearns says SEC ends probe into muni sales

(Reuters) - Bear said it received a letter on June 4 that the SEC had
completed its investigation. It disclosed the letter in its
quarterly report filed with the agency on Tuesday.




The news was a positive during a difficult time for Bear,
which manages two hedge funds that have faced huge redemption
requests after suffering big declines earlier this year. Bear
bailed one out and said it would let the other one fail.


Read more at Reuters.com Government Filings News

Paulson hedge fund wins big in subprime fallout

(Reuters) - The Paulson Credit Opportunities Fund surged 39.95 percent last month, giving it gains of some 129 percent in the first half of 2007 on bets the subprime market would decline, the source said.




Paulson, which is headed by investor John Paulson, also posted gains of 6.15 percent in its merger arbitrage fund in June, giving the fund gains of 27.7 percent year-to-date through June. Paulson is best-known as an event-driven hedge fund group, sometimes employing activist strategies.


Read more at Reuters.com Bonds News

US HIGH YIELD-US junk bonds sell off, threatening LBO financing

(Reuters) - Junk bonds sold off on Tuesday, turning an already fragile
financing market uglier, after ratings warnings on billions of
dollars of subprime mortgage-related bonds snuffed out appetite
for risky debt.




A number of deals have already been pulled because of poor
market conditions or balking investors.


Read more at Reuters.com Bonds News

Lawmaker may seek to curtail Fed consumer powers

(Reuters) - Rep. Barney Frank, a Massachusetts Democrat and chairman of the House Financial Services Committee, said the Fed did not use its authority to curtail loans offered to borrowers with damaged credit during the recent housing boom and needs to set tougher lending standards or face losing some of its authority.




"The Fed has the authority under the Federal Trade Act to spell out consumer protection rules generally and they have not done that," Frank said, after a speech to the National Alliance to End Homelessness.


Read more at Reuters.com Government Filings News

Bovespa Slides in Brazil, Led by Petrobras; Wal-Mart de Mexico Declines

(Bloomberg) -- Brazil's main stock index fell for the
first time in three days, led by Petroleo Brasileiro SA, after the
federal police arrested employees on allegations they manipulated
contracts at the state-controlled oil company.

The Bovespa Index of the most-traded stocks on the Sao Paulo
exchange shed 561.03, or 1 percent, to 55,882.70, falling from a
July 6 record. Mexico's Bolsa index slid 345.23, or 1.1 percent, to
31,743.02.


Read more at Bloomberg Stocks News

S&P changes Sears' outlook to negative from stable

(Reuters) - "Although the company has made a strong effort to
implement programs to enhance merchandising, marketing,
in-stock positions, and labor productivity, this apparently has
not resonated with its customers," S&P said in a statement.




In the past, strong liquidity has been a key factor
supporting Sears' rating, S&P added. "We now anticipate that
the expanded share repurchase activity could diminish this
liquidity," the rating agency said.


Read more at Reuters.com Bonds News

UPDATE 1-Compuware 1st-qtr revs 'disappoint'; shares drop

(Reuters) - Analysts, on average, expected a net profit of 12 cents for
the quarter on revenues of $301.6 million, according to Reuters
Estimates.




"I'm extremely disappointed in the company's performance
this quarter," said Compuware Chairman and Chief Executive
Peter Karmanos Jr.


Read more at Reuters.com Market News

Buy Calls to Bet Australia Dollar Extends Rally, Suncorp's Pontikis Says

(Bloomberg) -- Investors should buy call options to
bet the Australian dollar rallies beyond its current 18-year
high versus the U.S. dollar, according to Peter Pontikis at
Suncorp-Metway Ltd.

The central bank will lift its benchmark by year-end, after
leaving it unchanged at 6.25 percent since November, according
to Suncorp-Metway and Lehman Brothers Holdings Inc. The
Australian currency has gained 9.3 percent this year as
investors bought the country's high-yielding debt with money
borrowed at lower rates in Japan and Switzerland.


Read more at Bloomberg Currencies News

UPDATE 1-US's Paulson-new IMF chief should push reform

(Reuters) - BELO HORIZONTE, Brazil, July 10 - U.S. Treasury
Secretary Henry Paulson on Tuesday steered clear of endorsing
any particular candidate to take over the International
Monetary Fund but said it should be someone who keeps the drive
to reform it going.




The U.S. Treasury chief, in Brazil at the beginning of a
three-nation tour of Latin America, was asked by reporters
whether he was familiar with the candidacy of former French
Finance Minister Dominique Strauss-Kahn who has backing from
some European Union countries.


Read more at Reuters.com Bonds News

Compuware posts "disappointing" Q1 outlook

(Reuters) - Compuware expects fiscal 2008 first quarter total revenue
of about $278 million.




Read more at Reuters.com Market News

Moody's weighs ratings as drug-patent lapses near

(Reuters) - Eli Lilly and Co. , Pfizer Inc. and
Bristol-Myers Squibb Co. are particularly vulnerable to
the downgrades because the top-selling drug of each expires in
that period.




Merck & Co. could also be adversely affected as two
of its important drugs face patent expirations.


Read more at Reuters.com Government Filings News

Cattle Futures Fall in Chicago as Slaughter Rates Slow; Hog Prices Rise

(Bloomberg) -- Cattle fell for the first time in
five sessions in Chicago as meatpackers slowed slaughter rates
after overpaying for animals last week in anticipation of rising
overseas demand. Hog futures rose.

Meatpackers such as Tyson Foods Inc. and Cargill Inc. killed
582,000 head of cattle last week, down 2.7 percent compared with
last year, after paying as much as $5 to $6 a head more than a
week earlier. Feedlots in Nebraska, the biggest cattle-raising
state, sold 94,740 animals to meatpackers last week, a 45 percent
increase from 65,203 head the week before, government data show.


Read more at Bloomberg Commodities News

Part of Times Square shut down in bomb scare

(Reuters) - A Reuters witness said the suspicious item was a red bag and the bomb squad had arrived to inspect it.




Read more at Reuters.com Bonds News

Corporate Bond Risk in U.S., Europe Soars on S&P Subprime Mortgage Warning

(Bloomberg) -- Corporate bond risk soared today to
the highest in 13 months after Standard & Poor's raised the
possibility of downgrading $12 billion of subprime mortgage
securities, stoking concerns that the flow of money in other
markets may be curbed, according to credit-default swap traders.

The CDX North America Investment-Grade Index of credit-
default swaps on 125 companies increased $3,500 to $46,500 at
2:35 p.m. in New York, according to broker Phoenix Partners
Group, the highest since January 2006. In Europe, the iTraxx
Crossover Series 7 Index of 50 companies jumped as much as
24,500 euros to 271,000 euros, the biggest daily move in more
than two years, according to JPMorgan Chase & Co.


Read more at Bloomberg Bonds News

Crude Oil Climbs on Signs Gasoline Output to Drop Amid Refinery Mishaps

(Bloomberg) -- Crude oil rose, pulled higher by
gasoline on speculation that U.S. output of the fuel will slow
because of unexpected refinery shutdowns.

BP Plc closed the largest of three crude units at its
refinery in Whiting, Indiana, a person familiar with the plant
said yesterday. The refinery, the biggest in the Midwest,
supplies consumers in the Chicago area. Refineries in Texas and
Kansas shut units last week. The crude-oil market often follows
gasoline during the summer months, when motor-fuel demand peaks.


Read more at Bloomberg Commodities News

UPDATE 1-SEC allows Nasdaq to list 3-letter ticker symbols

(Reuters) - Markets like the New York Stock Exchange, the American
Stock Exchange and other regional exchanges have traditionally
used three-character ticker symbols, while Nasdaq-listed
securities have four- and five-character symbols.




In its proposal to the SEC, Nasdaq had argued that allowing
companies to carry their three-character symbols over to its
market would enhance competition and reduce the potential for
investor confusion.


Read more at Reuters.com Government Filings News

TEXT-S&P on US Dept of Energy notice of proposed rulemaking

(Reuters) - Specifically, Title XVII authorizes the DoE to guarantee loans for projects
that "avoid, reduce, or sequester air pollutants or anthropogenic emissions of
greenhouse gases; and employ new or significantly improved technologies as
compared with commercial technologies in service in the U.S. at the time the
guarantee is issued." Title XVII also identifies 10 categories of technologies
that, if used in commercial projects, are potentially eligible for a loan
guarantee.




On Feb. 15, 2007, President Bush signed into law the Revised Continuing
Appropriations Resolution 2007, which authorizes DoE to issue guarantees under
the Title XVII program for loans in the "total principal amount, any part of
which is to be guaranteed, of $4 billion." In August 2006, the DoE also invited
"pre-applications" from project sponsors interested in obtaining a loan
guarantee from the DoE.


Read more at Reuters.com Bonds News

US GAO still researching protested $15 bln 'copter

(Reuters) - Government Accountability Office spokesman Michael Golden
said it was premature to forecast an exact date, but the Air
Force said it expected a decision 60 days after the second
round of protests came in -- or around early August.




Sikorsky Aircraft, a unit of United Technologies Corp.
, and Lockheed Martin Corp. last month protested
the Air Force's revised terms of the competition, which Boeing
Co. initially won last November.


Read more at Reuters.com Government Filings News

Forestry firms irked by Canada bank rate hike

(Reuters) - The group said the strong Canadian dollar has made even the
most efficient lumber and paper mills struggle in export
markets, and contributed to a loss of 32,000 jobs in the forest
products industry since 2002.




The currency hit a 30-year high of C$1.0463 to the U.S.
dollar or 95.57 U.S. cents on Friday, benefiting from continued
strong economic data and high commodity prices.


Read more at Reuters.com Bonds News

US STOCKS-Indexes slide on housing weakness worries

(Reuters) - NEW YORK, July 10 - U.S. stocks dropped on
Tuesday as trouble in the subprime mortgage market fueled
selling of financial sector shares and the housing slump took a
toll on companies' outlooks.




The market extended losses in afternoon trading as a speech
by Federal Reserve Chairman Ben Bernanke offered no news to
relieve the market's anxiety, analysts said.


Read more at Reuters.com Bonds News

UPDATE 1-Freeport-McMoRan cuts debt from Phelps Dodge deal

(Reuters) - The company has shrunk its total term debt from $10
billion, helped by strong cash flows from high copper and gold
prices and equity financings.




Freeport-McMoRan bought peer Phelps Dodge for $26 billion
earlier this year.


Read more at Reuters.com Bonds News

U.S. Stocks Fall on Earnings Forecasts; D.R. Horton, Lehman Shares Decline

(Bloomberg) -- U.S. stocks retreated for the first
time in six days, led by housing and financial shares, after
D.R. Horton Inc. forecast a loss and Standard & Poor's said it
may cut ratings on bonds backed by subprime mortgages.

A gauge of U.S. homebuilders slid to the lowest in almost
four years after D.R. Horton Inc., the second largest, said it
sees no sign of a housing rebound. Lehman Brothers Holdings
Inc., the biggest underwriter of mortgage bonds, fell after S&P
said losses in those investments will increase.


Read more at Bloomberg Stocks News

Uncertainty as Arizona immigrants await crackdown

(Reuters) - She has 15 years experience scrubbing and vacuuming offices
and private homes in and around Phoenix and hopes that having
her own firm will get herself and her clients out of a bind.




"This way I will be able to work for myself and the
patrones won't get into trouble under the new law,"
she told Reuters. "It's a good solution for everyone."


Read more at Reuters.com Bonds News

SEC allows Nasdaq to list 3-letter ticker symbols

(Reuters) - In its proposal to the SEC, Nasdaq had argued that allowing
companies to carry their three-character symbols over to its
market would enhance competition and reduce the potential for
investor confusion.




The NYSE, owned by NYSE Euronext , and Nasdaq
compete vigorously to win new listings and increase trading
volume.


Read more at Reuters.com Government Filings News

US STOCKS-Indexes fall as housing woes hit profits

(Reuters) - NEW YORK, July 10 - U.S. stocks fell on Tuesday
as the housing slump took a toll on companies' earnings
outlooks, while trouble in the subprime mortgage market sparked
selling of financial companies' shares.




The major indexes stayed weak after Federal Reserve
Chairman Ben Bernanke stressed the importance of keeping
inflation expectations under control.


Read more at Reuters.com Bonds News

Canada's CPP fund to invest in TSX rival - report

(Reuters) - The investment, if it happens, would be a big endorsement
for Alpha, which is backed by Canada's six big banks and
Canaccord Capital , and slated for start up in 2008.




A spokeswoman for CPP, Canada's second biggest pension
fund, declined to comment on the report.


Read more at Reuters.com Mergers News

U.S. job movement steady in May - Labor Dept.

(Reuters) - The hires rate, which gauges the number of employees added
to payroll, increased slightly to 3.6 percent from 3.5 percent
in April.




May's job openings rate increased most in leisure and
hospitality but dipped in trade, transportation and utilities.
Hires were strongest in the professional and business
services.


Read more at Reuters.com Bonds News

Alcan contracts Areva to build Saguenay power unit

(Reuters) - Alcan unveiled plans for the AP50 project in December of
last year. The Montreal-based aluminum producer is currently
the target of an unsolicited takeover attempt by U.S. rival
Alcoa .




Read more at Reuters.com Mergers News

Franco-German balance must remain at EADS-Merkel

(Reuters) - "We want to have equal rights," she said, adding that talks
on the company's future were not yet completed.




Merkel is due to meet French President Nicolas Sarkozy on
Monday in Toulouse to discuss the future of EADS.


Read more at Reuters.com Mergers News

UPDATE 1-FCC chief backs some open access in airewave auction

(Reuters) - WASHINGTON, July 10 - The head of the Federal
Communications Commission wants to require the winning bidder
in the auction of valuable wireless airwaves to make them
accessible to consumers using any device or software
application, an FCC source said on Tuesday.




FCC Chairman Kevin Martin will propose that the
open-platform requirement be part of the rules for a portion of
the airwaves to be sold in the agency's auction of the 700
megahertz band, the source said.


Read more at Reuters.com Government Filings News

Israel's Voltaire files for $123.9 mln IPO

(Reuters) - The company said it has applied for listing on the Nasdaq
under the symbol "VOLT."





Read more at Reuters.com Bonds News

Mexico's Bolsa Falls, Led by Walmex, as Earnings Slow; Usiminas, CSN Slip

(Bloomberg) -- Mexico's Bolsa index fell for a second
day after Wal-Mart de Mexico SA, the biggest retailer in Latin
America, reported lower-than-expected earnings.

The Bolsa index slid 212.10, or 0.7 percent, to 31,876.15 as
of 12:20 p.m. New York time. Brazil's main stock index fell for the
first time in three days.


Read more at Bloomberg Stocks News

Sugar Rises as Brazilian Ethanol Production Reduces Output of Sweetener

(Bloomberg) -- Sugar in New York rose to a 12-week
high as mills in Brazil, the world's biggest producer, use more
sugar cane to make ethanol instead of the sweetener.

The center-south region of Brazil produced 5.4 million
metric tons of sugar this year as of June 15, down from 6 million
tons at the same point last year, the London-based International
Sugar Organization said today in an e-mailed report. Ethanol
output jumped 10 percent to 4.2 billion liters, the group said.


Read more at Bloomberg Commodities News

GLOBAL MARKETS-Housing worries hurt shares, dollar falls

(Reuters) - NEW YORK, July 10 - U.S. stocks fell on Tuesday
on a spate of profit warnings and as trouble in the subprime
mortgage market fueled a sell-off in shares of financial
companies and raised investors' aversion to risk, driving up
Treasury prices.




Standard & Poor's on Tuesday said it may cut its ratings on
$12 billion of subprime-related debt on expectations of an 8
percent drop in U.S. home prices and more defaults on home
loans.


Read more at Reuters.com Bonds News

Acuity profit up, but shares fall on housing woes

(Reuters) - Investors are worried that the slowdown in residential construction is starting to reduce demand for the accompanying "light commercial construction," which is an important market for Acuity, said analyst Zahid Siddique of Gabelli & Co.




"If there are less communities, people won't build shopping centers and medical facilities, so I think that's what's causing the stock to fall," Siddique said.


Read more at Reuters.com Hot Stocks News