GLOBAL MARKETS-Yen falls, Ifo hurts European equities

(Reuters) - European stocks dropped into negative territory after
Germany's Ifo economic research institute said its business
climate index dropped to 107.0 from 108.6 a month earlier.
Economists polled by Reuter had forecast 108.4.




The report undermined a mild rally in stocks that followed
losses on Thursday driven by fears of higher interest rates and
worries about the impact of troubles at two hedge funds managed
by Bear Stearns.


Read more at Reuters.com Bonds News

Yen slides to 4-1/2-year low against dollar

(Reuters) - The yen fell to a 4-1/2-year low against the dollar on Friday as Japanese investors dumped their low-yielding currency for foreign assets and market players kept using the unit to fund carry trades.

The Australian dollar struck a 16-year peak against the yen and sterling hit a 15-year high as traders cited steady foreign currency buying by new Japanese investment trusts drawing in funds from households receiving summer bonuses.


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Old Mutual upbeat on South Africa for medium term

(Reuters) - Insurer Old Mutual said on Friday that inflationary pressures could curb short-term economic momentum in South Africa, but that prospects for the country over the medium to long term remained excellent.

"In its chosen market segments, Old Mutual South Africa will compete through further expanding its distribution reach, introducing new era products and providing specialised asset management options for investors," the firm said in an investor presentation on its South African business.


Read more at Reuters Africa

Shanghai copper down 1 pct, LME stocks seen rising

(Reuters) - Shanghai copper fell nearly 1 percent on Friday on weakness in London futures in the previous session after stocks jumped nearly 5 percent following large-scale deliveries into warehouses in South Korea.

London Metal Exchange inventories rose 5,400 tonnes to 119,600 tonnes on Thursday after deliveries of 6,550 tonnes into warehouses in South Korea, and traders said more metal was expected.


Read more at Reuters Africa

European Stocks Decline on Ifo Report; Julius Baer, Maersk Lead Drop

(Bloomberg) -- European stocks dropped for a second
day after German business confidence fell more than economists
forecast in June, adding to signs that growth in Europe's largest
economy is slowing.

Julius Baer Holding AG fell after UBS AG sold part of its
stake in the Swiss Bank. A.P. Moeller-Maersk declined after the
company named a new chief executive officer. Pearson Plc rose after
the U.K. publisher abandoned a possible bid for Dow Jones & Co.


Read more at Bloomberg Stocks News

Nigeria Strike Continues After Government, Unions Fail to Reach Agreement

(Bloomberg) -- A nationwide general strike in Nigeria,
Africa's biggest oil producer, continued for a third day after
labor unions and the federal government failed to reach an
agreement over an increase in domestic fuel prices.

Peter Akpatason, the president of the National Union of
Petroleum & Natural Gas Workers, or Nupeng, said the next meeting
was scheduled for 9 a.m. today. Yesterday, oil unions withdrew
workers for export terminals in a bid to halt exports and intensify
pressure on the new administration of President Umuru Yar'Adua.


Read more at Bloomberg Emerging Markets News

Japan's 20-Year Bonds Gain for Week; Yields Near One-Year High Lure Buyers

(Bloomberg) -- Japan's 20-year bonds rose,
completing their first weekly gain in five, on speculation
yields near the highest in a year will lure investors after
local stocks declined.

Bonds snapped the longest weekly losing streak since
October after a government report showed manufacturers turned
pessimistic, fueling expectations a central bank survey of
business sentiment next month will be weaker than some
economists expect. Signs of slower growth may attract buyers to
10-year bond yields near the highest since February relative to
two-year securities.


Read more at Bloomberg Bonds News