Crude Oil Falls a Second Day on OPEC Output Boost, Concern Demand Abating

(Bloomberg) -- Crude oil fell in New York, heading
for its biggest two-day decline since July 24, after OPEC
increased output and on concern losses in the U.S. mortgage
market will slow economic growth.

Members of the Organization of Petroleum Exporting
Countries, excluding Angola, raised production last month by the
most since September 2004, a Bloomberg News survey showed.
Prices of commodities including copper in Shanghai and platinum
in Tokyo declined, and stocks in Asia fell, extending a global
slump, on speculation waning growth will slow demand.


Read more at Bloomberg Energy News

European Stocks May Decline; UBS, ING, Philips, BHP Billiton Might Drop

(Bloomberg) -- European stocks may fall, following
declines in Asia and the U.S., as concern mounts that losses in
the U.S. mortgage market will erode economic growth and raise
financing costs for companies.

UBS AG and ING Groep NV may lead financial stocks lower.
U.S.-traded shares of Royal Philips Electronics NV and Nokia Oyj
dropped as the dollar traded near a record low against the euro.
BHP Billiton Ltd. and Rio Tinto Group declined in Australian
trading after copper fell in Shanghai.


Read more at Bloomberg Stocks News

Oil Falls, Heading for Biggest 2-Day Decline Since June, on OPEC, Economy

(Bloomberg) -- Crude oil fell in New York, heading
for its biggest two-day decline since June, after OPEC increased
output and on signs U.S. economic growth will slow, reducing fuel
demand.

Members of the Organization of Petroleum Exporting Countries,
excluding Angola, raised production last month by the most since
September 2004, a Bloomberg News survey showed. Asian stocks
dropped on renewed concern losses in the U.S. mortgage market
will trim growth in the world's biggest economy.


Read more at Bloomberg Energy News

Asian stocks hit by U.S. economic worries

(Reuters) - Oil prices slid briefly below $74.50 a barrel amid heightened concerns for economic growth, but flight to safety helped gold stay near one-week highs and kept the benchmark U.S. 10-year Treasury yield pinned near 2-½ month lows.




Data last Friday showing U.S. employers added jobs at the slowest rate in five months and weaker growth in the U.S. service sector all added to concerns about the world's biggest economy, Asia's top export destination.


Read more at Reuters.com Business News

Bernanke May Alter Rhetoric, Not Interest Rates, After Market Turbulence

(Bloomberg) -- Federal Reserve Chairman Ben S.
Bernanke may respond to the latest squall in financial markets
the same way he did when turbulence hit four months ago: with a
change in words rather than policy.

Bernanke and his colleagues may suggest after their
meeting tomorrow that the risks to economic growth have
increased following the rout in stock and credit markets -- just
as they did after their March meeting.


Read more at Bloomberg Bonds News

GLOBAL MARKETS-US stocks, dollar fall on data; bonds surge

(Reuters) - NEW YORK, Aug 3 - U.S. stocks and the dollar fell,
while safe-haven Treasuries surged on Friday as unexpectedly
weak data reinforced views of slower economic growth.




News that the U.S. economy had created fewer jobs than
anticipated and that the services sector expanded more slowly
in July jarred investors' nerves, already frayed by credit
liquidity worries.


Read more at Reuters.com Bonds News

Asian Currencies Complete Weekly Decline, Follow Drop in Regional Stocks

(Bloomberg) -- Asian currencies completed a weekly
decline, led by a 0.9 percent drop in the Indonesian rupiah, as
overseas investors reduced holdings in the region's stocks.

Global funds were net sellers of shares in South Korea,
Taiwan and Thailand this week as benchmark stock indexes dropped.
Indonesia's central bank said Aug. 1 it's not worried by the
rupiah's decline and the International Monetary Fund said the
next day the volatility in financial markets poses a risk to
economic growth.


Read more at Bloomberg Currencies News

Polish Zloty Set for Weekly Gain as Investors' Appetite for Risk Revives

(Bloomberg) -- The Polish zloty was poised for a
weekly gain, advancing to an eight-day high against the euro as
investors regained their appetite for emerging-market assets.

Investors resumed buying stocks and higher-yielding
currencies such as the zloty, the Turkish lira and the South
African rand as concern abated that losses on U.S. subprime
mortgages would slow global economic growth.


Read more at Bloomberg Currencies News

TREASURIES-Bonds trim losses as stocks gain

(Reuters) - Treasuries were little moved by mixed economic data that
painted a picture of benign inflation pressures and slower
economic growth, but surprisingly upbeat consumer sentiment.
For details, see [ID:nN30403317], [ID:nN30443227]




Treasuries rose sharply last week, pushing yields to
two-month lows on Friday after the stock market suffered its
greatest loss nearly five years.


Read more at Reuters.com Bonds News

Oil Is Steady, Close to One-Year High, on Expectations of Supply Shortfall

(Bloomberg) -- Crude oil was little changed, close
to a one-year high, amid speculation that consumption will
increase faster than production this year.

Crude-oil in New York rose 1.6 percent last week as a U.S.
government report showed the nation's economy expanded 3.4
percent last quarter, the fastest pace in more than a year.
Prices fell earlier today on concern that falling stock prices
would curb economic growth and energy demand.


Read more at Bloomberg Energy News

China's Yuan Advances on Speculation Currency Policy to Help Cool Growth

(Bloomberg) -- The yuan rose by the most in almost
two weeks on speculation China will pursue a stronger currency to
cool economic growth, after the central bank last week raised
interest rates for the third time since March. Bonds may drop.

A stronger yuan would curb export sales that have flooded
the financial system with cash, driving the fastest pace of
economic expansion in 12 years in the second quarter. The
currency gained 0.4 percent in June as the trade surplus widened
87 percent from a year ago to an all-time high of $26.9 billion.


Read more at Bloomberg Currencies News

Yen Erases Declines Versus Euro, Dollar as Stock Futures Signal Lower Open

(Bloomberg) -- The yen erased a decline versus the
euro and dollar as futures on U.S. stock indexes fell, a sign
investors are pulling back from risky bets.

Investors who are less inclined to take risks may exit so-
called carry trades, where they borrow at Japan's low interest
rates to buy higher-yielding securities elsewhere. The Japanese
currency also dropped earlier after China raised rates to cool
economic growth, prompting speculation demand for Japanese
exports in its third-largest market will slow.


Read more at Bloomberg Currencies News

Turkish Stocks Jump Before Elections, Led by Akbank: World's Biggest Mover

(Bloomberg) -- Turkish stocks posted the biggest
gain this year, lifting the country's main index to a record, on
bets this weekend's elections will result in a single-party
government that will maintain economic growth.

Akbank TAS and Turkiye Is Bankasi AS, Turkey's two biggest
publicly traded banks, paced the advance.


Read more at Bloomberg Stocks News

Election of Erdogan May Boost Turkish Shares, Cheaper than All of Europe's

(Bloomberg) -- Turkish stocks, cheaper than equities
in the markets of the European Union, are attracting investors
who say this year's rally is just the beginning.

Prime Minister Recep Tayyip Erdogan, who has sold state
industries and reduced the budget deficit, will retain power in
this weekend's elections, according to six opinion polls. The
mostly Muslim nation of 72 million has had 21 straight quarters
of economic growth and inflation is near a five-year low.


Read more at Bloomberg Exclusive News

Treasuries Rise on Forecasts From Bernanke, Weakness in Subprime Mortgages

(Bloomberg) -- Treasuries rose, pushing the
benchmark 10-year note's yield below 5 percent, after Federal
Reserve Chairman Ben S. Bernanke predicted inflation will recede
and said housing market weakness may slow economic growth.

The Fed also trimmed its forecast for economic growth this
year because of a slowdown in homebuilding, and an index linked
to the lowest-rated securities backed by subprime mortgages fell
to a record.


Read more at Bloomberg Bonds News

Dollar Drops Versus Yen, Euro After Fed Lowers Economic Growth Estimates

(Bloomberg) -- The dollar fell against the yen and
euro as the Federal Reserve lowered its forecasts for U.S.
economic growth for this year and next as home building is
weaker than anticipated.

The revisions came as Fed Chairman Ben S. Bernanke, in
semiannual testimony to the House Financial Services Committee,
predicted U.S. economic growth will pick up slightly next year
and inflation will gradually recede. He also said he expects a
slump in construction to continue to ``weigh'' on growth.


Read more at Bloomberg Currencies News

Dollar Is Little Changed Versus Euro After Bernanke Says Growth to Pick Up

(Bloomberg) -- The dollar was little changed
against the euro after Federal Reserve Chairman Ben S. Bernanke
predicted U.S. economic growth will pick up slightly next year
and inflation will gradually recede.

Bernanke, in his semi-annual testimony before the House
Financial Services Committee, said ``the U.S. economy appears
likely to expand at a moderate pace over the second half of
2007, with growth then strengthening a bit in 2008 to a rate
close to the economy's underlying trend.'' He also said ``core
inflation should edge a bit lower, on net, over the remainder of
this year and next year.''


Read more at Bloomberg Currencies News

European Bonds Fall on Speculation Global Growth to Prompt Rising Rates

(Bloomberg) -- European bonds fell on speculation
global economic growth is fast enough to prompt the European
Central Bank to increase interest rates this year.

ECB council member Nicholas Garganas said higher rates are
``warranted.'' Ten-year bunds snapped two-days of gains after
U.S. reports showed factory output rose the most since February
and prices paid to producers excluding food and fuel climbed
more than forecast. Federal Reserve Chairman Ben S. Bernanke may
reiterate tomorrow that the bank is seeking to curb inflation.


Read more at Bloomberg Bonds News

Pound Versus Dollar Volatility to Increase on Rate Outlook, Barclays Says

(Bloomberg) -- Swings in the pound-dollar exchange
rate will rise because U.S. economic growth will prove resilient
while that in the U.K. will wane under the weight this year's
interest rate increases, according to Barclays Capital Inc.

``The market is likely to be proved wrong on both U.K. and
U.S. interest rates,'' said Paul Robinson, senior sterling
strategist in London at Barclays Capital, the third-biggest U.K.
bank. ``We expect foreign exchange volatility to increase.''


Read more at Bloomberg Currencies News

Argentina, Brazil, Colombia, Mexico: Latin America Local Bond Preview

(Bloomberg) -- The following events and economic
reports may influence trading in Latin American local bonds
today. Bond yields are from the previous session.

Argentina: The country's economic expansion won't be hurt
by natural gas shortages, Planning Minister Julio de Vido said
in Santa Cruz, Bolivia, on July 13. The current shortages are a
result of the country's high rates of economic growth, De Vido
said.


Read more at Bloomberg Bonds News