European Government Bonds Post Weekly Gain on Subprime Mortgage Concerns

(Bloomberg) -- European government bonds posted
their biggest weekly gain in more than four months after concern
about the U.S. subprime mortgage sector crimped demand for
riskier assets.

Government debt advanced after Moody's Investors Service
lowered ratings on $5.2 billion of bonds backed by U.S. subprime
mortgages and Standard & Poor's said it may cut credit ratings on
$7.4 billion of similar debt. Bunds extended their rally
yesterday after a U.S. report showed retail sales fell more than
expected last month, stoking concern about an economic slowdown.


Read more at Bloomberg Bonds News

S&P 500 hits record

(Reuters) - The Standard & Poor's 500's milestone came a day after a market rally in which the Dow industrials racked up their biggest one-day point-gain in more than four years. The S&P 500 also capped its best two weeks in 11 months.




The Dow crossed 13,900 for the first time and hit a lifetime high for a second straight day as GE roughly doubled its 2007 share buyback to $14 billion, in a week that saw several major companies announcing multibillion-dollar share repurchase plans.


Read more at Reuters.com Business News

Black found guilty of criminal fraud

(Reuters) - Black was allowed to remain free on a $21 million bond pending a July 19 hearing on whether bond should be continued. His lawyers said he would appeal, and sentencing was set for November 30. Black surrendered his passport in court.




He left the courthouse without comment but his lawyer, Edward Greenspan, read a brief statement saying Black had been acquitted of the "central charges" in the case and there were "viable legal issues" on which to appeal.


Read more at Reuters.com Business News

Japan's Bond Futures Advance After Downgrades of U.S. Subprime-Backed Debt

(Bloomberg) -- Japan's 10-year bond futures rose in
the past week after downgrades of debt backed by U.S. subprime
mortgages sparked demand for the safety of government securities.

Bond futures on July 11 had the biggest gain since August
after Moody's Investors Service cut ratings on $5.2 billion of
debt backed by loans to homeowners with poor credit histories.
Concern economic growth in the U.S., Japan's largest export
market, will slow helped bond futures rebound from the steepest
weekly drop since last month.


Read more at Bloomberg Bonds News

Boston Scientific settles Guidant suits for $195 million

(Reuters) - That court has been overseeing the product-liability lawsuits against the company, whose Guidant unit allegedly continued to sell heart rhythm-management devices after learning of possible defects.




Guidant recalled more than 100,000 of the products between 2005 and 2006.


Read more at Reuters.com Business News

Wall St Week Ahead: Robust earnings to keep stocks charged

(Reuters) - Rising energy and food prices coupled with uneven retail
sales are not likely to slow down investors as they test the
market's limits. At the same time, the financial sector is
expected to avoid major losses from the subprime sector.




After a week where the Dow Jones industrial average and
Standard & Poor's 500 index reached record highs on mergers
and acquisitions activity and multibillion-dollar blue-chip
buyback plans, investors will eye profits, inflation data and
the Federal Reserve for signs of further good news.


Read more at Reuters.com Economic News

Blackstone partners may avoid tax on IPO gains

(Reuters) - The company expects these benefits to total $863.7 million over 15 years, the filing said.




The Times said Blackstone partners would get back about $200 million more than the $553 million they paid in tax. The paper did not explain how it arrived at those figures.


Read more at Reuters.com Mergers News

States to roll out subprime guidance for brokers

(Reuters) - Officials at CSBS, a group representing state regulators, said so far about 27 states and the District of Colombia plan to adopt the guidance within 48 hours after it is issued on Tuesday. No state has indicated that it will not eventually adopt it, they said.




Last month federal banking regulatory agencies issued guidance to curtail risky practices blamed for a record level of home foreclosures, according to the state group.


Read more at Reuters.com Bonds News

US states to roll out subprime guidance for brokers

(Reuters) - Officials at CSBS, a group representing state regulators,
said so far about 27 states and the District of Colombia plan
to adopt the guidance within 48 hours after it is issued on
Tuesday. No state has indicated that it will not eventually
adopt it, they said.




Last month federal banking regulatory agencies issued
guidance to curtail risky practices blamed for a record level
of home foreclosures, according to the state group.


Read more at Reuters.com Government Filings News

UPDATE 2-Icahn takes stake in Kraft Foods - WSJ

(Reuters) - The newspaper said it was unclear how much of a stake Icahn
has taken or when he bought the shares, but it did say he was
not seeking radical changes, as he has at other companies in
which he has invested.




The newspaper, quoting unnamed sources, also said Kraft
Chief Executive Irene Rosenfeld planned to meet next week with
another activist investor, Nelson Peltz.


Read more at Reuters.com Mergers News

UPDATE 1-Bill Gates fund reports 12.8 pct PlanetOut stake

(Reuters) - The Microsoft Corp. chairman's fund did not reveal
when it bought the shares or their price in the "passive"
filing with the U.S. Securities and Exchange Commission.
Cascade also did not reveal the purposes behind the
transactions.




San Francisco, California-based PlanetOut, which went
public in 2004, maintains a number of Web sites serving the
lesbian, gay, bisexual and transgender community. The sites
include Gay.com, PlanetOut.com, OUT&ABOUT Travel, Advocate.com,
Out.com, OutTraveler.com and HIVPlusMag.com


Read more at Reuters.com Government Filings News

Lead Rises to Record as Australia Pollution Probe May Further Curb Output

(Bloomberg) -- Lead rose to a record in London for
a third consecutive day on speculation an expanded inquiry into
contamination at Australian ports will exacerbate a shortage of
the metal. Copper also gained.

Western Australia state will assess pollution at seven
ports after lead was detected in tests at Derby and Geraldton,
the state's Department of Environment said yesterday. Shipments
of raw material containing the metal used in batteries had
already been suspended from the port of Esperance.


Read more at Bloomberg Commodities News

UPDATE 1-Loeb Partners retracts Mercer Insurance statement

(Reuters) - "The statement was inadvertent and does not reflect Loeb's
current position regarding the company," Loeb said in a
statement.




Mercer Insurance is a Pennington, New Jersey-based carrier
that offers personal and commercial insurance.


Read more at Reuters.com Bonds News

Emerging mkts flooded by local-currency global bonds

(Reuters) - A large chunk of the new issuance is denominated in the
Brazilian real , which has gained more than 14 percent so
far this year. But sovereign bonds are also being offered in
other strengthening local currencies, such as the Colombian
peso , the Peruvian sol and even the stable
Egyptian pound .




Despite being denominated in local currencies, those bonds
are more accessible to international investors because most are
settled in international markets and payable in dollars.


Read more at Reuters.com Bonds News

Dixie Group restates results

(Reuters) - The restatement did not affect net income for the periods,
the carpet maker said in a statement.





Read more at Reuters.com Market News

Sallie deal may yet go ahead, but price could fall

(Reuters) - Sallie Mae said on Wednesday a group of private equity firms and banks threatened to scuttle their buyout of the company, blaming proposed legislation to cut government subsidies to student lenders.




The deal has a break-up fee of $900 million, but if the buyers could prove the legislation has a "material adverse impact" on the transaction, they would not have to pay the fee.


Read more at Reuters.com Bonds News

Icahn takes stake in Kraft Foods - WSJ

(Reuters) - NEW YORK, July 13 - Billionaire activist investor Carl Icahn has taken a stake in Kraft Foods Inc. , according to the online version of The Wall Street Journal.



The story did not make clear how much of a stake Icahn has taken or when he bought the shares, but it did say he was not seeking radical changes, as he has at other companies in which he has invested.


Read more at Reuters.com Mergers News

US STOCKS-S&P 500 hits record; GE gains on buyback plan

(Reuters) - NEW YORK, July 13 - The S&P 500 index
climbed to a record on Friday, surpassing levels reached
during the Internet bubble, as General Electric Co.
increased a stock-buyback plan and data showed improving
consumer sentiment.




The Standard & Poor's 500's milestone came a day after a
market rally in which the Dow industrials racked up their
biggest one-day point-gain in more than four years. The S&P
500 also capped its best two weeks in 11 months.


Read more at Reuters.com Bonds News

UPDATE 1-Mexico industrial output rises 1.1 pct in May

(Reuters) - A Reuters poll had predicted a 2.23 percent year-on-year
increase in industrial production.




Industrial output was the same in May as in April, the
government said.


Read more at Reuters.com Economic News

Performance Food to be distributor for O'Charley's, Stoney River

(Reuters) - The new business roll-out, which is expected to be
completed in the fourth quarter of 2007, would add about $200
million in annualized revenue, the company said in a
statement.





Read more at Reuters.com Mergers News

UPDATE 1-OFHEO-Fannie, Freddie must avoid some subprime loans

(Reuters) - WASHINGTON, July 13 - The regulator for mortgage
finance companies Fannie Mae and Freddie Mac
said on Friday it had told them not to buy mortgages that do
not conform to consumer protection standards set by bank
supervisors.




The Office of Federal Housing Enterprise Oversight told the
companies to avoid loans that do not meet standards set by bank
regulators in recent notices aimed at curbing dangerous
subprime loans to borrowers with damaged credit.


Read more at Reuters.com Bonds News

Judge sets class-action against Caterpillar: lawyer

(Reuters) - Judge Trauger of the U.S. District Court for the Middle District of Tennessee granted the case class certification on July 12, the law firm said.




The suit was filed on behalf of all retirees and surviving spouses of retirees who were represented by the union and who retired on or after January 1, 1992 and before March 16, 1998.


Read more at Reuters.com Business News

Nymex Gas Increases on Buying by Distributors Seeking to Lock in Supplies

(Bloomberg) -- Natural gas in New York advanced as
institutions moved to lock in supplies before any mid-summer
price spikes and traders covered their short positions ahead of a
Midwest heat wave that could send fuel prices higher.

``It's the institutional buying'' usual for this time of
year sending prices higher today, said Wendell Tucker, a broker
for Capital Commodity Services Inc. in Minneapolis. ``The
market's too cheap.''


Read more at Bloomberg Energy News

Sonus Pharmaceuticals files for $80 mln stock shelf

(Reuters) - The company said in a filing with the U.S. Securities and Exchange Commission that it will use the proceeds from the offering for general corporate purposes, including clinical trials, product development, debt repayment, and acquisitions.



Under a shelf registration, a company may sell securities in one or more separate offerings with the size, price and terms to be determined at the time of sale.


Read more at Reuters.com Government Filings News

Treasuries Headed for Weekly Gain Over Subprime Mortgage Crisis, Economy

(Bloomberg) -- Treasuries were poised for a weekly
gain as the subprime mortgage crisis sent investors to the
safety of U.S. government debt and raised concern that housing
weakness will slow economic growth.

Benchmark 10-year note yields have fallen almost 7 basis
points so far this week. Treasuries strengthened today as a
Commerce Department report showed U.S. retail sales fell last
month by the most in almost two years.


Read more at Bloomberg Bonds News

Chicago CME Group opens for business after merger

(Reuters) - The CME Group -- created by the marriage of
cross-town rivals the Chicago Mercantile Exchange and the
Chicago Board of Trade -- greeted its first official day with
the ceremonial ringing of the opening bell for the Chicago
grains markets.




"The CME Group will solidify the great city of Chicago as
the risk-management capital of the world for many years to
come," Terrence Duffy, CME Group executive chairman, told
hundreds of grain traders at the world's largest grain exchange
just before ringing the opening bell for trading.


Read more at Reuters.com Mergers News

Wheat Declines on Speculation Crop Yields in Western Kansas May Double

(Bloomberg) -- Wheat fell in Kansas City on
speculation that yields in western Kansas and eastern Colorado
may as much as double.

Western Kansas was spared from excessive rain that damaged
crops in central and eastern Kansas and most of Oklahoma,
National Weather Service data showed. Yields will climb to 50 to
80 bushels an acre from 39 a year earlier, traders and analysts
said. Kansas growers are expected to get an average of 40.7
bushels an acre, the U.S. Department of Agriculture said on July
11.


Read more at Bloomberg Commodities News

UPDATE 1-Wendy's stock up on report of possible Yum interest

(Reuters) - The report by mergers and acquisitions Web site
dealreporter.com quoted two unidentified industry sources and
also said soft drink maker PepsiCo Inc. might consider
partnering with Yum to buy Wendy's.




"While we don't comment on rumor or speculation, our plate
is full with significant growth opportunities from our existing
businesses around the globe," a Yum spokeswoman said.


Read more at Reuters.com Mergers News

Oil Rises to 11-Month High as North Sea Output Declines on Closed Pipeline

(Bloomberg) -- Crude oil rose to an 11-month high
in New York and London after a pipeline shutdown and maintenance
work reduced North Sea Brent oil production.

Chevron Corp. and ConocoPhillips said they lost output from
North Sea fields that produce oil and gas after BP Plc closed
the pipeline. BG Group Plc said its Armada oil field in the
North Sea has been shut for maintenance since June. The
International Energy Agency said in a report today that global
oil demand will rise 2.5 percent next year.


Read more at Bloomberg Commodities News

US STOCKS-Dow up with GE, S&P 500 flirts with high

(Reuters) - NEW YORK, July 13 - U.S. blue-chip stocks edged
higher on Friday, pushing the Dow to a record, as General
Electric Co increased a stock buyback plan and a report
showed consumer sentiment rose in early July.




The broad Standard & Poor's 500 stock index came to within
a point of its all-time high, a day after a market rally in
which the Dow notched its biggest one-day points-gain in more
than four years.


Read more at Reuters.com Bonds News

UPDATE 1-Buffett rumors lift Hovnanian, home-builder shares

(Reuters) - "There is talk that Warren Buffett is buying a stake in
Hovnanian," said Jon Najarian, co-founder of optionmonster.com.
"We think such a move by Buffett would clearly signal a bottom is
finally in or near this battered housing sector."




Hovnanian shares were up 8.4 percent, or $1.39, shortly after
noon, at $17.94 on the New York Stock Exchange after rising as
much as 14 percent earlier in the session. Hovnanian shares were
among the top percent gainers on the New York Stock Exchange.


Read more at Reuters.com Bonds News

Treasuries Headed for Weekly Gain on Concern Over Subprime Mortgage Crisis

(Bloomberg) -- Treasuries were poised for a weekly
gain as the subprime mortgage crisis sent investors to the
safety of U.S. government debt and raised concern housing
weakness will slow economic growth.

Benchmark 10-year note yields have fallen almost 8 basis
points so far this week. Treasuries gained today as a Commerce
Department report showed U.S. retail sales fell last month by
the most in almost two years.


Read more at Bloomberg Bonds News

Waddell shares jump on buyout speculation

(Reuters) - Buckingham Research Group Inc. analyst William Katz confirmed to Reuters he had raised Waddell stock on Friday to a "strong buy" from "neutral" with a price target of $32. "I think the stock is undervalued," he said.




While Katz declined to discuss the contents of his report, an options strategist said the report had mentioned the possibility of the firm being targeted in a private equity buyout.


Read more at Reuters.com Hot Stocks News

UPDATE 1-Energizer won't discuss possible Playtex synergies

(Reuters) - During a rare conference call with analysts, Chief
Executive Officer Ward Klein and Chief Financial Officer Daniel
Sescleifer said they would not discuss synergy estimates until
plans to integrate Playtex are more formalized.




Klein said Energizer approached Playtex a few months ago to
talk about a deal, but declined to say whether Energizer took a
look at Playtex when it was on the auction block a few years
ago.


Read more at Reuters.com Mergers News

Retail slump in June hints at tired consumer

(Reuters) - The Commerce Department reported a 0.9 percent decline in June sales where economists had looked for a 0.1 percent gain, far outweighing small upward revisions to the figures for May.




"The rise in gasoline prices absorbs a big chunk of spendable income," said Nigel Gault, director of U.S. economic research at Global Insight. "Consumers had to spend $53 billion more in the second quarter at an annual rate than they did in the first. Eventually they need to cut back somewhere else."


Read more at Reuters.com Economic News

UPDATE 1-Tribune hopes for FCC OK in fourth quarter

(Reuters) - Tribune said in a filing that the most significant condition
to closing the $8.2 billion deal, aside from getting shareholder
approval, will be receiving approval from the FCC regarding the
transfer of Tribune TV licenses and its request for waivers in
cross-ownership markets.




Tribune agreed in April to be bought in a $34-a-share
leveraged buyout deal led by Chicago real estate magnate Sam
Zell.


Read more at Reuters.com Government Filings News

UK court delays Cadbury salmonella case sentencing

(Reuters) - A spokeswoman for Birmingham City Council said both councils had presented their cases in Birmingham Crown Court on Friday, and Cadbury's mitigation would start on the morning of Monday, July 16. Cadbury is expected to face a fine over the case.




In June 2006, Cadbury admitted to the salmonella problem at one of its UK plants, and recalled more than 1 million chocolate bars in the UK and Irish markets, costing 30 million pounds , as they could contain minute traces of salmonella.


Read more at Reuters.com Hot Stocks News

Copa Holdings, Fleetwood, Playtex, Spectrum Brands: 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 11:40 a.m. New York time.

Alcoa Inc. (AA US) rose $1.91, or 4.2 percent, to $47.20.
The world's second-biggest aluminum maker said yesterday it
withdrew its unsolicited takeover bid for aluminum producer Alcan
Inc. (AL US) after Rio Tinto Group (RIO AU) made a higher offer
of $38.1 billion. Separately, Credit Suisse Group increased its
share-price estimate for Alcoa by 22 percent to $55, saying that
takeover speculation would support the stock. Alcan shares fell
45 cents to $98.


Read more at Bloomberg Stocks News

Conrad Black found guilty of criminal fraud

(Reuters) - The three men on trial with the 62-year-old member of Britain's House of Lords were also found guilty of multiple fraud counts.




Black, who was found guilty of four of 13 charges, faces decades in prison and millions in fines.


Read more at Reuters.com Business News

S. African Rand Posts Third Weekly Gain as Interest Rate Spurs Carry Trade

(Bloomberg) -- South Africa's rand posted its third
week of gains against the dollar as expectations of higher
interest rates spurred investor appetite for so-called carry
trades.

The rand traded near the highest in almost two weeks,
supported by investors seeking out South Africa's 9.5 percent
interest rate in trades funded by borrowing the Japanese yen or
Swiss franc more cheaply. A report yesterday showing quicker-
than-expected manufacturing growth added to speculation the
Reserve Bank will raise borrowing costs further.


Read more at Bloomberg Currencies News

Sex Scandal Fails to Hurt San Francisco Mayor as Liberal Voters Stay Loyal

(Bloomberg) -- San Francisco Mayor Gavin Newsom is
running for re-election virtually unopposed, more popular than
ever, after admitting to having an affair with a top aide's wife
and entering an alcohol-treatment program.

Newsom, whose approval ratings are running close to 80
percent, said he expects a credible candidate to emerge
eventually. So far, challengers include a street-performing
clown, a homeless man, an advocate for nudism, and a candidate
who pledges to wear a camera so voters can monitor his
performance in office.


Read more at Bloomberg Exclusive News