Volatility Index Surges to Highest in 13 Months as Stocks Plunge Worldwide

(Bloomberg) -- The benchmark for U.S. stock
volatility surged to the highest in 13 months on concern higher
borrowing costs will slow takeovers, spur debt defaults and curb
earnings.

The Chicago Board Options Exchange Volatility Index jumped
as much as 27 percent to 22.96, the highest since June 2006.
Higher readings in the so-called VIX, derived from prices paid
for options on the Standard & Poor's 500 Index, indicate traders
expect bigger stock-market swings in the next 30 days.


Read more at Bloomberg Stocks News

Global Stocks Drop; Investors Shun Risk as Credit Market Turmoil Worsens

(Bloomberg) -- Stocks tumbled around the world and
U.S. Treasuries rallied on concern higher borrowing costs will
slow takeovers, spur debt defaults and curb earnings, prompting
investors to flee riskier assets.

The Standard & Poor's 500 Index fell to its lowest in almost
three months, while the FTSE 100's biggest drop in four years led
declines across Europe. Benchmark stock indexes in Argentina,
Brazil, Mexico, Turkey and Sweden sank more than 3 percent.


Read more at Bloomberg Stocks News

Egypt indexes inch up, Alexandria Real Estate gains

(Reuters) - Egyptian stock indexes rose slightly on Thursday supported by major real estate shares including Alexandria Real Estate Investment, which jumped after an acquisition offer, brokers said.

Talaat Mustafa Group said it had made an offer to buy Alexandria Real Estate, its partly-owned subsidiary, for 394 Egyptian pounds per share in an equity swap as part of wider expansion plans.


Read more at Reuters Africa

Afrox says set for "real growth" in earnings

(Reuters) - South African gas group African Oxygen posted 9-month headline earnings per share of 117 cents compared with 93.7 cents in the six months to end June 2006, and said on Thursday it was positioned for "real growth" in earnings.

Afrox is changing its financial year to end December from end September to align itself with its holding company, Germany's Linde Group, so was unable to provide comparative figures.


Read more at Reuters Africa

Oil rises to $77 on increased US refinery demand

(Reuters) - Oil climbed to $77 and U.S. crude hit its highest in almost a year on Thursday on increasing demand from refiners in the world's top consumer.

At one point the rally lifted U.S. oil above London Brent for the first time since February, based on closing prices.


Read more at Reuters Africa

Anglo says S.Africa zinc, copper unit hit by long strike

(Reuters) - The world's third biggest mining group, Anglo American Plc, said on Thursday that output at its Black Mountain zinc and copper production unit in South Africa had been hit by prolonged industrial action.

Anglo did not say exactly how much output had been lost at Black Mountain which also produces lead and silver.


Read more at Reuters Africa

St. Jude gets US okay for heart access device

(Reuters) - The device also received a Health Canada license, the company said in a statement.






Read more at Reuters.com Government Filings News

UPDATE 1-Ex-Impregilo CEO named in insider trading case

(Reuters) - NEW YORK, July 26 - U.S. regulators on Thursday
charged the former chief executive of an Italian construction
company and his wife with insider trading in Elsag Bailey
Process Automation NV just days before a cash offer for the
company was announced in 1998.




The U.S. Securities and Exchange Commission accused Alberto
Lina, the former CEO of Italian construction company Impregilo
IPGI.MI>, and his wife, Serenella Lina, of illegal insider
trading in shares of Elsag, a Dutch company then traded in New
York, ahead of the announced $2.1 billion cash offer for the
company by Swedish-Swiss electrical engineering group ABB Asea
Brown Boveri Ltd., now known as ABB .


Read more at Reuters.com Government Filings News

US STOCKS-Futures slide on oil, housing, credit woes

(Reuters) - S&P 500 futures were down 12.60 points, 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 were down 87
points, and Nasdaq 100 futures were off 11 points.


Read more at Reuters.com Bonds News

TREASURIES-Bonds rally on stock slide, credit woes

(Reuters) - Bonds could get an additional lift if the durable goods
data at 8:30 a.m. shows signs of weakness in
business investment. Investors were also awaiting new home
sales data at 10 a.m. amid concerns that the housing
market is a drag on the U.S. economy.




But for now, with weak stocks and news of firms having
difficulty obtaining financing for buyout activity, Treasuries
were seeing a strong bid.


Read more at Reuters.com Bonds News

RLPC-DAE Aviation postpones $937 mln LBO loan-sources

(Reuters) - Proceeds of the bank loan and the note offering back Dubai
Aerospace Enterprise's $1.8 billion acquisition of plane
servicing firms Standard Aero Holdings Inc. and Piedmont
Hawthorne Holdings from Carlyle Group.




The loan consisted of a $557 million term loan B, a $280
million asset-sale facility and a $100 million revolver.
Pricing on the term loan was widened earlier to 325 basis
points over the London interbank offered rate due to weak
investor interest. The loan was also being offered at an
original issue discount of 98.5.


Read more at Reuters.com Bonds News

UPDATE 1-Credit derivatives plummet on supply, subprime woe

(Reuters) - NEW YORK, July 26 - U.S. credit default swap
spreads widened dramatically on Thursday because of worries
about a heavy forward calendar of debt supply and turmoil in
the subprime mortgage market, market sources said.




The investment-grade index widened about 4.5 basis points
to around 61.5 basis points, while an index of high-volatility
credits widened about 9 basis points to 159 basis points.


Read more at Reuters.com Bonds News

Opteum says unit to sell additional mortgage servicing rights

(Reuters) - The aggregate unpaid principal balance of the loans
underlying the servicing rights sold was about $2.97 billion as
of June 30, the company said in a statement.




Opteum said proceeds from the sale will be mainly used to
repay debt currently secured by OITRS' mortgage servicing
portfolio.



Read more at Reuters.com Bonds News

UPDATE 1-Nordstrom sells Faconnable brand for $210 million

(Reuters) - NEW YORK, July 26 - Nordstrom Inc. said
on Thursday that it agreed to sell its Faconnable clothing unit
for $210 million to Lebanese-based M1 Group, as the upscale
department store chain focuses on running its stores.




As part of the deal, Nordstrom said it will continue to buy
Faconnable merchandise for at least three years, and will still
offer the brand in its stores.


Read more at Reuters.com Bonds News

UPDATE 1-Cadbury US drinks sale value in question -source

(Reuters) - LONDON, July 26 - Britain's Cadbury Schweppes
is unsure of the value of bids it will receive for its
U.S. drinks arm as a result of turbulent debt markets, a source
familiar with the matter said on Thursday.




The auction will test to what extent the recent turbulence
in debt markets has reduced the ability of buyout firms to offer
compelling terms, the source said.


Read more at Reuters.com Bonds News

UPDATE 1-Benchmark U.S. subprime indexes sink to new lows

(Reuters) - "July remittance reports are out and the market has had its
say. The numbers were not good," said one dealer. "The bottom
line is that the appetite for risk is waning across all sectors
so it's no surprise the most volatile market of them all got
hit hard," the dealer said.




Remittance reports, which offer a snapshot of subprime loan
performance over the last 30 days, showed delinquencies
continued to rise in July. Subprime mortgages are made at high
interest rates to borrowers with poor credit histories.


Read more at Reuters.com Bonds News

June newspaper help-wanted ads dip to 49-yr low

(Reuters) - "There are signs that job advertising volume is edging a little lower, with very slight decreases in each of the past two months," said Ken Goldstein, labor economist at the Conference Board, in a statement.




"Business caution about near-term prospects for the economy, and perhaps for their own businesses, may lead to a little less hiring this autumn. Plus, the online business is mature enough in that this is where help wanted ads originate and may never appear in newspapers."


Read more at Reuters.com Bonds News

Greenspan says need to simplify tax system

(Reuters) - "I think we should go back to broaden the base and lower the rates and then figure out a political way to keep it there." Greenspan said. He said the ink had "barely dried" on the 1986 tax overhaul before interest groups began chipping away at it.




The former Fed chief left little doubt that he thought the current corporate tax structure was unwieldy and put a damper on companies' ability and willingness to invest.


Read more at Reuters.com Bonds News

TREASURIES-Bonds surge as credit fears sweep through markets

(Reuters) - NEW YORK, July 26 - U.S. Treasuries rallied on
Thursday, pushing benchmark yields to two-month lows, as weak
economic data and fears of a global credit crunch sent
investors scurrying out of stocks and other risky assets.




A sharp fall in new-home sales and an unexpected slide in
business investment data spurred an already strong Treasury
market, as overall durable goods orders rose less than expected
in June. For details see [ID:nN26366824].


Read more at Reuters.com Bonds News

Ford swings to surprising 2nd-quarter profit

(Reuters) - DETROIT, July 26 - Ford Motor Co on Thursday swung to a surprise second-quarter profit after seven quarters of losses on cost-cutting and a turnaround in its core automotive operations, pushing shares higher.



Ford, which is in the midst of a restructuring plan that includes closing 16 plants and cutting up to 45,000 jobs, posted a net profit of $750 million, or 31 cents per share, compared with a loss of $317 million, or 17 cents, a year earlier.


Read more at Reuters.com Bonds News

Global stocks lower on credit woes

(Reuters) - As U.S. stocks continued to fall after a sharply lower opening, the decline triggered the New York Stock Exchange's downside restrictions on program trading at 11:06 a.m. ET.




At 11:42 a.m. the Dow Jones industrial average was down 202.41 points, or 1.47 percent, at 13,582.66. The Standard & Poor's 500 Index was down 26.88 points, or 1.77 percent, at 1,491.21 and the Nasdaq Composite Index was down 42.47 points, or 1.60 percent, at 2,605.70.


Read more at Reuters.com Bonds News

Gazprom 30-year bond postponed - market source

(Reuters) - The Russian gas export monopoly had already scrapped on
Wednesday its plans to issue 10-year paper as part of the same
deal, due to volatile market conditions.




Read more at Reuters.com Bonds News

European Bonds Rally, Pushing Benchmark Yield to Its Lowest in Two Months

(Bloomberg) -- European government bonds rallied,
pushing 10-year yields to the lowest in more than two months, as
stocks slumped and the risk of holding corporate debt soared.

Benchmark bunds rose for a third day on rising concern about
loan defaults and as investors balked at funding takeovers.
Traders also scaled back bets that the European Central Bank will
push interest rates higher as a report showed business confidence
in Germany weakened for a second month.


Read more at Bloomberg Bonds News

Ford swings to surprise profit

(Reuters) - Ford, which is in the midst of a restructuring plan that includes closing 16 plants and cutting up to 45,000 jobs, posted a net profit of $750 million, or 31 cents per share, compared with a loss of $317 million, or 17 cents, a year earlier.




Profit from continuing operations, excluding one-time items, was 13 cents per share. That blew past the average Wall Street forecast of a loss of 37 cents per share as tracked by Reuters Estimates.


Read more at Reuters.com Market News

Hanesbrands 2nd-qtr profit falls

(Reuters) - The maker of the Wonderbra and Champion T-shirts said net profit in the second quarter was $25.4 million, or 26 cents per share, compared with $59.3 million, or 62 cents per share, in the year-earlier period, before the spinoff.






Read more at Reuters.com Market News

UPDATE 1-Equitable Resources 2nd-qtr earnings rise

(Reuters) - Income for the second quarter was $107.3 million, or 87
cents a diluted share, compared with $43.9 million, or 36 cents
a share in the same quarter a year earlier.




Pittsburgh-based Equitable recorded a $119.4 million
pre-tax gain for the sale of 81 billion cubic feet of gas into
a partnership with Range Resources under which the two
companies will jointly develop the Nora field in southwestern
Virginia.


Read more at Reuters.com Market News

UPDATE 1-MarineMax 3rd-quarter profit falls

(Reuters) - The retailer said net income for its fiscal third quarter,
ended June 30, was $13.9 million, or 73 cents per share,
compared with $17.5 million, or 90 cents per share, a year
ago.




Excluding items the company said it earned 50 cents per
share.


Read more at Reuters.com Market News

Southern second-quarter earnings rise

(Reuters) - Excluding special items, the company said it had earned 55
cents per share. Analysts on average had expected 52 cents,
according to Reuters Estimates.




Southern shares have underperformed the industry so far
this year, falling about 7 percent, compared with about a 9
percent gain for the S&P utilities index .


Read more at Reuters.com Market News

Legal charges knocks QLT to second-quarter loss

(Reuters) - The pharmaceutical company lost $68.7 million, or 92 cents
a share for the period ended June 30, compared with a profit
$7.5 million, or 8 cents a share for the same quarter a year
earlier.




Read more at Reuters.com Market News

UPDATE 1-Penn National profit falls on merger costs

(Reuters) - The racetrack and casino operator said second-quarter net
profit fell to $38.3 million, or 43 cents a share, from $42.7
million, or 49 cents a share, a year earlier.




On June 15, Fortress and Centerbridge Partners LP agreed to
buy Penn National for $67 a share, or $6.1 billion.


Read more at Reuters.com Market News

Janus second-quarter profit rises

(Reuters) - Net income rose to $48.8 million, or 27 cents a share, from $31.1 million, or 15 cents per share, a year earlier.






Read more at Reuters.com Market News

Kellogg Co. 2nd-quarter profit rises

(Reuters) - The company, which makes foods including Special K cereal and Keebler cookies, said profit was $301 million, or 75 cents a share, in the second quarter, compared with $267 million, or 67 cents a share, a year earlier.



Analysts on average forecast 70 cents a share, according to Reuters Estimates.


Read more at Reuters.com Market News

Wendy's posts second-quarter profit

(Reuters) - Wall Street analysts on average had been expecting profit
of 33 cents per share, according to Reuters Estimates.




Last year's results included a big charge for the company's
evaluation of its Baja Fresh chain, which it later sold.


Read more at Reuters.com Market News

Janus net up 57 pct, beats expectations

(Reuters) - BOSTON, July 26 - Money manager Janus Capital Group Inc. posted a 57 percent jump in second-quarter profit on Thursday, beating analysts' expectations, as its funds attracted inflows and assets under management grew.



Janus, which specializes in the "growth" style of investing, said it posted long-term net inflows of $2.8 billion in the quarter, including $1.5 billion in its core products.


Read more at Reuters.com Market News

UPDATE 1-Exxon profits dips 1 pct on natgas price weakness

(Reuters) - Shares fell nearly 2 percent to $91 before the bell.




The company's production dipped 1 percent on an oil
equivalent basis from last year due to field decline and lower
European demand for natural gas.


Read more at Reuters.com Market News

Autoliv Q2 pretax falls, cuts margin outlook

(Reuters) - STOCKHOLM, July 26 - Autoliv posted second-quarter pretax profits just shy of market expectations on Thursday and cut its forecast for operating margin for the year because of increased legal reserves.



Pretax earnings for the world's biggest maker of air bags and seat belts came in at $88.8 million versus $132.4 million in the year-ago quarter and an average forecast of $91 million in a Reuters poll of 10 analysts.


Read more at Reuters.com Market News

UPDATE 1-Nuveen 2nd-qtr net up 5 pct, below expectations

(Reuters) - Nuveen, which runs the Symphony brand hedge fund products
and NWQ and Tradewinds brand value-style equities products
among others, said net flows in the quarter were $1.9 billion.




This was mainly attributable to $1.4 billion in
institutional flows, $0.6 billion in mutual fund flows and $1.3
billion outflows in retail accounts, it said.


Read more at Reuters.com Market News

Goodyear quarterly earnings rise

(Reuters) - CHICAGO, July 26 - Goodyear Tire & Rubber Co. said on Thursday quarterly profit rose as it focused on selling more expensive brand-name tires and working through a multiyear restructuring.



Goodyear is in a restructuring set to run through 2009 that includes expanding production in low-cost regions, increasing capacity for more expensive high-margin tires and divesting units not engaged in tire production.


Read more at Reuters.com Market News

Build-A-Bear Workshop Q2 profit slumps

(Reuters) - July 26 - Stuffed-animals retailer Build-A-Bear Workshop Inc. on Thursday reported a 47 percent drop in quarterly profit, as sales fell at stores open at least a year and costs rose as it expanded in Montreal and Puerto Rico.



The St. Louis, Missouri-based company appointed Lehman Brothers in June to look at a range of strategic alternatives and said then it would not provide any earnings outlooks while the review was underway.


Read more at Reuters.com Market News

Apache 2nd-qtr results dip, hits record output

(Reuters) - The Houston-based company said its second-quarter profit
declined to $632 million, or $1.89 a diluted share, compared
with $722 million or $2.17 a diluted share in the 2006
quarter.




Analysts had on average expected the company to post
earnings per share of $1.90, according to data compiled by
Reuters Estimates.


Read more at Reuters.com Market News

UPDATE 1-Kansas City Southern quarterly profit rises

(Reuters) - The Kansas City, Missouri-based company reported
second-quarter net income available to common stockholders of
$25.3 million, or 30 cents a diluted share, compared with $19.2
million, or 24 cents a share, a year earlier.




Factoring out one-time charges, the company said its profit
came to 36 cents per share, which was what analysts had
expected on average, according to Reuters Estimates.


Read more at Reuters.com Market News

R.H. Donnelley posts quarterly profit

(Reuters) - NEW YORK, July 26 - Yellow pages publisher R.H. Donnelley Corp posted a quarterly profit on Thursday, reversing a year-earlier loss, helped by its purchase of directory provider Dex Media.



Earlier on Thursday, Donnelley had announced an agreement to buy search engine and advertising network Business.com for $345 million, a deal it expects to close in the third quarter.


Read more at Reuters.com Market News

Alaska Air Q2 profit narrows, misses estimate

(Reuters) - WASHINGTON, July 26 - Alaska Air Group Inc. reported a narrower quarterly profit on Thursday that fell short of Wall Street expectations, weighed down by higher fuel costs and a softer revenue environment.



Seattle-based Alaska, the parent of Alaska Airlines and Horizon Air, said net income was $46.1 million, or $1.13 per share, compared with $55.5 million, or $1.38 per share, a year ago.


Read more at Reuters.com Market News

SMIC posts quarterly loss versus year-ago profit

(Reuters) - The 2006 quarter benefited from an $18.9 million tax
credit, which dropped to $1.6 million in the second quarter of
this year.




Revenue grew 3.7 percent to $374.8 million.



Read more at Reuters.com Market News

Franklin Resources quarterly earnings jump

(Reuters) - That compares with $371.4 million, or $1.41 a year ago.




Wall Street analysts had expected earnings of $1.81, according to Reuters Estimates.


Read more at Reuters.com Market News

Beazer, D.R. Horton, Black & Decker fall

(Reuters) - Beazer Homes USA Inc. posted a quarterly loss as the home builder took charges for inventory and abandonment of land option contracts.




Black & Decker Corp , a maker of tools and household appliances, reported its profit fell, blaming a tough residential construction sector and higher commodity prices. Black and Decker said the weakness in housing will "continue to adversely affect" the company's earnings.


Read more at Reuters.com Hot Stocks News

Beazer Homes posts quarterly loss after charges

(Reuters) - For the third quarter ended June 30, Beazer posted a net loss of $123.0 million, or $3.20 per share, compared with a year-earlier profit of $102.6 million, or $2.37 per share.




The latest quarter's results included charges of $188.5 million. A substantial portion of the charges relate to the write-down of the value of operations in Northern California, Nevada and Florida, where housing demand has seen a steep decline as lending requirements tighten and the number of homes on the market have soared.


Read more at Reuters.com Hot Stocks News

Black & Decker profit down but beats view

(Reuters) - Net income in the second quarter fell to $118 million, or $1.75 a share, compared with $152.2 million, or $1.98 a share, in the year-earlier quarter.




Analysts on average had expected the Towson, Maryland-based maker of DeWalt drills and Kwikset locks to earn $1.73 a share, according to Reuters Estimates.


Read more at Reuters.com Business News

Exxon profit dips 1 pct on natgas price weakness

(Reuters) - The company's production dipped 1 percent on an oil equivalent basis from last year due to field decline and lower European demand for natural gas.




Net income in the second quarter decreased to $10.26 billion, or $1.83 a share, from $10.36 billion, or $1.72 a share, last year.


Read more at Reuters.com Business News

Pound Falls to Lowest in Week as Report Shows House-Price Growth Stalled

(Bloomberg) -- The pound fell to the lowest in more
than a week after a report showed U.K. house-price growth almost
stalled in July, signaling five interest-rate increases in the
past year are beginning to bite.

The U.K. currency slid from near a 26-year high against the
dollar after Nationwide Building Society said house prices rose
0.1 percent from June, the slowest pace of growth in 15 months.
Bank of England Deputy Governor John Gieve said this week that
benchmark borrowing costs are probably ``restrictive'' at a six-
year high of 5.75 percent.


Read more at Bloomberg Currencies News