US STOCKS-Indexes rise on data, takeover news

(Reuters) - NEW YORK, July 2 - U.S. stocks rose on Monday,
boosted by takeover news and data that showed manufacturing
growth quickened in June even as price pressures eased.




In deal news, Canada's largest telephone company, BCE Inc
, agreed to a proposed US$32.8 billion buyout
from a group that includes the Ontario Teachers Pension Plan on
Saturday, in the biggest such transaction in Canadian corporate
history. For details, see [ID:nN02315411].


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Credit sell-off changes risk assessment of CDOs

(Reuters) - As rising interest rates have pushed up the cost of
corporate borrowing and overall risk, the distribution of risks
within CDO portfolios has changed.




The idiosyncratic risk of individual company default s
associated with mergers and leveraged buyouts is being replaced
with systemic risk, in which an increasing number of borrowers
are seen in danger of default.


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Crude Oil Futures Decline as Refinery Shutdown in Kansas May Reduce Demand

(Bloomberg) -- Crude oil fell from a 10-month high in
New York as a refinery shutdown in Kansas cut demand.

Coffeyville Resources LLC shut its refinery in Coffeyville,
Kansas, yesterday because of flooding on the Verdigris River,
according to as statement on its Web site. The 108,000-barrel-a-
day refinery can produce about 2.1 million daily gallons of
gasoline.


Read more at Bloomberg Energy News

UPDATE1-Focus Media says audit committee starts internal inquiry

(Reuters) - The company said the counsel informed it about the
investor, without indicating the source of the evidence,
raising questions primarily on certain related-party
transactions the company reported in 2005.




The Shanghai-based company was first informed about the
short seller in a letter from the counsel dated June 1. The
counsel reiterated its findings in another letter to the
company on June 22.


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After dip on ISM, safety bid lifts bonds

(Reuters) - The Institute for Supply Management said its manufacturing index rose to 56.0 in June from 55.0 in May, slightly firmer than Wall Street had forecast.




"Orders increased and inventories decreased slightly, suggesting that manufacturing prospects still look good," said Gary Thayer, chief economist at A.G. Edwards and Sons in St. Louis. "But while manufacturing improved in the second quarter over the first quarter, it wasn't a big enough difference to cause the Fed to have to raise rates."


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Treasuries Little Changed as Index Shows Accelerating U.S. Factory Growth

(Bloomberg) -- Treasuries were little changed as a
private index showed U.S. manufacturing growth accelerated last
month to the highest in 14 months.

``Despite the move higher in rates and wider spreads and
increased capital costs, the economy is still showing signs of
strength,'' said James Caron, head of U.S. interest rate
strategy in New York at Morgan Stanley. ``The economy isn't
falling apart even with higher rates.''


Read more at Bloomberg Bonds News

US STOCKS-Indexes open up; telecoms takeovers help

(Reuters) - The Dow Jones industrial average was up 57.23
points, or 0.43 percent, at 13,465.85. The Standard & Poor's
500 Index was up 6.68 points, or 0.44 percent, at
1,510.03. The Nasdaq Composite Index was up 14.34
points, or 0.55 percent, at 2,617.57.




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