European stocks extend losses on credit worries

(Reuters) - European stocks extended their losses late on Monday, dropping 1 percent in choppy trade on persistent worries over the crisis in the credit market while shares of oil giants dropped along with crude prices.

At 1503 GMT, the pan-European FTSEurofirst 300 index was down 1 percent, at 1,502.62, a level not seen since March.


Read more at Reuters Africa

HEADLINE STOCKS - U.S. stocks to watch on Aug 6

(Reuters) - Co-President and co-Chief Operating Officer Warren Spector
resigned from Bear Stearns on Sunday, a casualty of the credit
risk crisis at the investment bank. [ID:nN05330619]




Bear Stearns closed at $108.35


Read more at Reuters.com Bonds News

Spectra Energy earnings dip on Canada woes

(Reuters) - Excluding discontinued operations and one-time items,
earnings were $192 million, down from $264 million a year
earlier, when the company was helped by a $30 million tax
gain.





Read more at Reuters.com Market News

Fortis wins initial approval for ABN purchase

(Reuters) - Fortis, Royal Bank of Scotland and Spain's Santander have offered 71 billion euros , mostly in cash, for the Netherlands' largest bank in a bidding war that has featured legal and stakeholder battles.




Approval by Fortis shareholders of its proposed purchase of ABN AMRO's Dutch operations and of a 13 billion euro rights issue needed to finance its part of the deal would give the RBS-led consortium a boost at a time when the rival Barclays bid is suffering from the decline of its share price.


Read more at Reuters.com Business News

SkyePharma asthma drug may be delayed

(Reuters) - SkyePharma said the extra clinical work could delay the filing of Flutiform with the U.S. Food and Drug Administration until the second half of 2008 and could cost 3 million to 5 million pounds .




"We're talking to the FDA about how to address the particular point they've raised and it's going to depend on exactly what sort of clinical data they might need," Chief Operating Officer Ken Cunningham told Reuters.


Read more at Reuters.com Hot Stocks News

Swiss Franc Climbs to Two-Year High Versus Dollar as Carry Trades Unwound

(Bloomberg) -- The Swiss franc rose to its highest in
more than two years against the dollar as investors sold riskier
assets, such as equities, and repaid loans taken out in the Swiss
currency.

The franc advanced against 14 of the 16 most-traded
currencies as stocks in Europe and Asia fell, following a drop in
benchmark U.S. equity markets last week. Traders unwound so-
called carry trades, where they borrowed the franc to buy higher-
yielding assets, on concern U.S. subprime mortgage losses will
erode economic growth.


Read more at Bloomberg Currencies News

Putin Favors Ruble Speculators Over Oligarchs in Battle Against Inflation

(Bloomberg) -- Russian President Vladimir Putin's plan
to keep inflation from accelerating depends on favoring foreign-
exchange traders over the country's oil and gas companies.

Putin will probably allow the central bank to double the
ruble's pace of appreciation this year because he has few options
outside the foreign exchange market to rein in consumer prices,
according to strategists at Bank of America Corp. and UBS AG.
Russia's 8.5 percent inflation rate is three times faster than
any other Group of Eight country.


Read more at Bloomberg Emerging Markets News

U.K. Shares Including SkyePharma Fall; Daily Mail, Imperial Chemical Rise

(Bloomberg) -- U.K. stocks including SkyePharma Plc
declined after the drug-formulation company said its U.S.
application for an asthma medicine may be delayed.

Daily Mail and General Trust Plc rose. Morgan Stanley
advised investors to buy shares in the publisher of the U.K.'s
Daily Mail newspaper following a slump in the past three months.


Read more at Bloomberg Stocks News

S.Africa won't impose windfall tax on synfuel firms

(Reuters) - South Africa's National Treasury said on Monday the country will not impose a windfall tax on synthetic fuel producers such as Sasol and PetroSA.

"(The) government has also decided not to proceed with a tax on the windfall profits earned by existing synthetic fuel producers in the interest of a conducive environment for additional investments in domestic fuel security," the National Treasury said in a statement.


Read more at Reuters Africa

FACTBOX: Why oil prices are at a record high

(Reuters) - FUNDS




Investment flows from pension and hedge funds into commodities including oil have resumed in recent months after a hiatus earlier in the year due to concerns about how the global economy was moving.


Read more at Reuters.com Hot Stocks News

Polish Central Bank Governor Sees No Reason to Increase Interest Rates Now

(Bloomberg) -- The Polish central bank has no need
to raise interest rates because there is currently little threat
from inflation, central bank Governor Slawomir Skrzypek said.

Inflation, wage and industrial output data are likely to
confirm ``there is still no reason to enter a cycle of interest
rate increases,'' Skrzypek said in an interview with daily
Gazeta Prawna, published today.


Read more at Bloomberg Emerging Markets News

Spread on Japan Bonds May Indicate Stocks Will Drop Further, JPMorgan Says

(Bloomberg) -- A widening spread between the interest
Japanese corporate and government bonds pay may indicate that the
stock market may have more room to fall, according to JPMorgan
Chase & Co.

Corporate borrowing costs are measured against the so-called
risk-free yields of government debt. The larger the difference is
between yields, or spread, the higher the perceived risk is of
the borrower defaulting.


Read more at Bloomberg Stocks News

France's CAC 40 Index Erases 2007 Gains; Renault and PPR Lead the Decline

(Bloomberg) -- French stocks declined, with the
benchmark CAC 40 Index erasing this year's gains. Renault
SA, the country's second-largest carmaker, PPR SA, the
owner of Gucci Group, paced the retreat.

The CAC 40 dropped 62.49, or 1.1 percent, to 5535.40
as of 9:12 a.m. in Paris, taking its performance this year
to a loss of 0.1 percent.


Read more at Bloomberg Stocks News

Sappi says Q3 earnings per share at U.S 23 cts

(Reuters) - At 0715 GMT, Sappi was trading 2.24 percent lower at 109
rand, with the JSE blue-chip top 40 index 1.75 percent
weaker.




Read more at Reuters.com Market News

Saudi Aramco Raises Heavy Variety Crude Prices for Asia to 26-Month High

(Bloomberg) -- Saudi Aramco, the world's largest
state oil company, raised September prices of its heavy crude
oil varieties for Asian customers to a 26-month high as
refining profit from making fuel oil gained.

Arab Medium grade's discount to benchmark varieties was
narrowed by 50 cents to $1.35 a barrel and Arab Heavy's
differential was reduced by 70 cents to $3.60 a barrel, said
three Asian officials who asked not to be identified, citing
confidentiality. The two grades yield more fuel oil.


Read more at Bloomberg Energy News

Shanghai copper tumbles 3 percent on risk worries

(Reuters) - Shanghai copper futures fell 3 percent on Monday, following losses in London and jitters in equity and other commodities markets on concerns about the U.S. economy.

Confidence in global markets, including commodities and equities, has been seriously dented by the continuing crisis in the U.S. subprime mortgage sector.


Read more at Reuters Africa

PRESS DIGEST - Wall Street Journal - Aug 6

(Reuters) - * Bear Stearns Cos. co-president quit, becoming
Wall Street's highest-profile casualty in the subprime-lending
fiasco.




* ICI reached a tentative deal to be taken over by
Akzo Nobel and Henkel for $16 billion.
The chemical and paint maker had rejected Akzo's earlier
offers.


Read more at Reuters.com Mergers News

Pound May Fall as Traders Trim Bets Bank of England Will Raise Rates Again

(Bloomberg) -- The U.K. pound may fall as investors
lower expectations the Bank of England will raise interest rates
again this year.

Interest-rate futures trading shows investors have scaled
back their forecasts for how high the U.K. central bank will lift
rates on concern borrowing costs at a six-year high of 5.75
percent will begin to slow economic expansion. A report today may
show industrial production growth slowed in June.


Read more at Bloomberg Bonds News

TREASURIES-Extend gains in Asia, market eyes Fed

(Reuters) - "Yields of Treasuries have fallen sharply, but investors
don't seem to be cautious about prices going too high amid
safe-haven rallies," said Ryuji Shimazu, a market analyst at
Shinko Securities.




"Market players seem to be building positions for possible
Fed rate cuts in the future."


Read more at Reuters.com Bonds News

ICI, Sainsbury, Morgan Sindall, Standard Life: U.K., Irish Stock Preview

(Bloomberg) -- The following stocks may rise or fall
in U.K. and Irish markets today. Stock symbols are in parentheses
and prices are from yesterday's market close.

The benchmark FTSE 100 Index lost 76.00, or 1.2 percent, to
6224.30. The FTSE All-Share Index declined 34.49, or 1.1 percent,
to 3223.84.


Read more at Bloomberg Stocks News

JGBs surge on Treasury gains due to subprime woes

(Reuters) - Such concerns battered U.S. stocks late last week, when
Standard & Poor's 500 index and the Nasdaq Composite Index
on Friday posted their worst one-day percentage drops
since a global sell-off in equities in late February.




"JGBs are at the mercy of external factors," said Tetsuya
Miura, bond strategist at Shinko Securities.


Read more at Reuters.com Bonds News

Taiwan Government Bonds Climb as Stock Losses Spur Demand; Currency Falls

(Bloomberg) -- Taiwan's 10-year government bonds
advanced on speculation a decline in stocks prompted investors to
seek the safety of debt's fixed income. The currency weakened.

Yields, which move inversely to prices, were the lowest in
three weeks on concern defaults on U.S. subprime mortgages are
spreading to the broader economy. Regional equity markets fell,
with the island's Taiex index of shares dropping as much as 2.1
percent.


Read more at Bloomberg Bonds News

Singapore Dollar to Rise 10 Percent to Record $1.38, BNP Paribas Predicts

(Bloomberg) -- The Singapore dollar may rise 10
percent to a record in a year as an influx of tourists and
bankers supports economic growth, BNP Paribas SA said.

The currency may reach S$1.38 per dollar by June 30, passing
the record of S$1.3835 reached in 1995, as the Monetary Authority
of Singapore seeks gains to curb inflation, said Thio Chin Loo,
senior foreign-exchange strategist in Singapore at France's
largest bank by market value.


Read more at Bloomberg Currencies News

PRESS DIGEST-Financial Times, Wall St Journal Asia editions

(Reuters) - --World markets face a nervous start to the week following
the plunge in stocks in the United States on Friday as concerns
mounted about fallout from the US mortgage market turmoil. The
late sell-off in New York followed comments by the chief
financial officer of Bear Stearns , who said credit
markets were as bad as he had seen in 22 years.




--Japan's Prime Minister, Shinzo Abe,is expected to
reshuffle his cabinet and convene an extraordinary session of
parliament at the end of the month to try to keep his job after
his party's trouncing in upper house elections.


Read more at Reuters.com Mergers News

Samsung Electronics, Exporters, Oil-Dependents: South Korea Equity Preview

(Bloomberg) -- The following shares may rise or fall
in South Korea. Prices refer to the previous close. This preview
includes news announced after markets shut yesterday. Stock
symbols are in brackets after the company names.

The Kospi index rose 1.3 percent to 1,876.80. The Kosdaq rose
1.6 percent to 798.86. Kospi 200 futures expiring in September
increased 1 percent to 236.00, while the underlying index rose 1.3
percent to 236.91.


Read more at Bloomberg Stocks News

Fed's Bernanke May Alter Rhetoric, Not Interest Rates After Market Turmoil

(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 Currencies News

Bear Stearns co-president Spector resigns: WSJ

(Reuters) - Citing a person familiar with the matter, the Journal said directors agreed that Alan D. Schwartz will for now be sole president of Bear.




The article also said that Samuel Molinaro, the firm's longtime chief financial officer, will assume the role of chief operating officer and that Jeffrey Mayer, co-head of fixed income, will take Spector's seat on the executive committee.


Read more at Reuters.com Business News

ABN, RBS consortium say to continue takeover talks

(Reuters) - "ABN AMRO and the consortium have agreed to continue the constructive dialogue to resolve any outstanding questions regarding the offer of the consortium for ABN AMRO, and to maintain a level playing field," ABN and the RBS-led consortium said in a joint statement.




RBS , together with its partners Belgian-Dutch Fortis and Spain's Santander , is battling against Barclays to buy ABN in what would be the biggest ever bank takeover. Barclays' offer is worth about 65 billion euros.


Read more at Reuters.com Mergers News

BA execs to be named in price fixing probe: report

(Reuters) - "These executives could be prosecuted in the criminal courts in the U.S.," it said.




Two BA executives were identified when they resigned last October -- former commercial director Martin George and former public relations boss Iain Burns -- although no wrongdoing by either has been announced.


Read more at Reuters.com Business News

Dubai's Istithmar raises Barneys bid to $900 mln

(Reuters) - "If this offer is not accepted, Istithmar is entitled to our break-up fee of $22.7 million," Istithmar said in a statement.




Read more at Reuters.com Mergers News

Court will wait to rule on CBOT rights

(Reuters) - CME Group Inc., the world's largest futures exchange, was created with the merger of CBOT Holdings Inc. and Chicago Mercantile Exchange Holdings Inc. in July. The CBOE is the largest U.S. options market.




The exercise rights allow full members of the Chicago Board of Trade to trade options on CBOE without owning CBOE membership.


Read more at Reuters.com Business News

U.S. Senate report faults SEC on hedge fund probe

(Reuters) - The report from the Senate Finance and Senate Judiciary
committees, released late on Friday, ends a year-long inquiry
into the dismissal of former SEC staffer Gary Aguirre.




Aguirre says he was forced out of the agency after a probe
he was leading got too close to prominent Wall Street banker
John Mack. His claims prompted three Senate hearings and drew
heavy press coverage.


Read more at Reuters.com Mergers News

Panic-buying as S.African petrol wage talks resume

(Reuters) - A six-day-old strike by South African fuel workers caused petrol shortages and panic-buying on Saturday when wage talks resumed.

Motorists were queuing up to 30 minutes to fill up at the few petrol stations that had not run dry.


Read more at Reuters Africa

Wells Fargo, other US lenders curb mortgage loans

(Reuters) - Wells Fargo & Co, Wachovia Corpand other lenders are limiting mortgages to some of their more creditworthy borrowers as worries about U.S. homeowner defaults widen.

Wells Fargo, the second-largest U.S. mortgage lender, said it is curtailing issuance of "Alt-A" home loans through brokers, while Wachovia has stopped entirely. Wachovia also said one lending unit has temporarily halted its Alt-A production.


Read more at Reuters Africa

Colombia's Argos wants fair price for Andino unit

(Reuters) - It is the first time that the Chavez government has
nationalized a Colombian company as part of the president's
self-styled socialist revolution.




"We hope to to get a fair price from the Venezuelan
government," a statement from Argos said.


Read more at Reuters.com Mergers News

US STOCKS-Wall St tumbles on credit worries after Bear talks

(Reuters) - NEW YORK, Aug 3 - U.S. stocks slid sharply on
Friday after Bear Stearns said credit markets were in their
worst shape in two decades, while jobs data aroused further
concerns about weakness in the economy.




Bear Stearns Cos. stock fell 6 percent after the
comments from its chief financial officer, which exacerbated
mortgage jitters and drove the three major indexes down more
than 2 percent in a broad market sell-off.


Read more at Reuters.com Bonds News

US STOCKS-Indexes end down sharply on credit fears

(Reuters) - All three indexes dropped more than 2 percent. For the
week, the Dow was down 0.7 percent, the S&P 500 was down 1.8
percent and the Nasdaq was down 2 percent.




Based on the latest available data, the Dow Jones
industrial average fell 284.84 points, or 2.12 percent,
to unofficially end at 13,178.49. The Standard & Poor's 500
Index was down 39.39 points, or 2.68 percent, to finish
unofficially at 1,432.81. The Nasdaq Composite Index
was down 64.73 points, or 2.51 percent, to close unofficially
at 2,511.25.


Read more at Reuters.com Bonds News

Berkshire Hathaway 2nd-qtr profit rises 33 pct

(Reuters) - Operating profit, excluding gains from investments and derivatives, rose 22 percent to $2.51 billion, or $1,625 per share, from $2.05 billion, or $1,331.




Analysts on average had expected profit of $1,460 per share, according to Reuters Estimates.


Read more at Reuters.com Bonds News

Chicago bidder for Cubs has powerful group-sources

(Reuters) - John Canning Jr., chairman of Madison Dearborn Partners and
owner of an 11 percent stake in the Milwaukee Brewers baseball
team, has formed a bidding group of which he would be a
controlling partner, the sources said.




The Cubs are being sold by media group Tribune Co
and analysts have said a deal for the club, Wrigley Field and
cable assets could top $1 billion.


Read more at Reuters.com Mergers News

Citigroup muni chief to serve as next MSRB chairman

(Reuters) - Chin has headed Citigroup's public finance department since
1993. He will succeed John Lawlor, who runs the municipal
markets group at Merrill Lynch & Co. .




O'Brien has been a national syndicate manager at Morgan
Stanley's tax-exempt department since 1996. He will succeed
James Rogers, chief operating officer of J.J.B. Hilliard, W.L.
Lyons, Inc.


Read more at Reuters.com Government Filings News

Death toll rises from Minneapolis bridge collapse

(Reuters) - Rescuers spent an entire day extracting the fifth fatality
from under mounds of debris, Minneapolis Fire Chief Jim Clack
said. He said another victim had died in a hospital, but the
local coroner did not confirm either death.




"It took 20 people all day to get the person out. There was
tons of debris," Clack said.


Read more at Reuters.com Bonds News

US STOCKS-Mortgage fallout, economic data weigh on Wall St

(Reuters) - NEW YORK, Aug 3 - U.S. stocks fell on Friday, as
worries about mortgage losses deepened after a ratings agency
cut its outlook on investment bank Bear Stearns Cos.'
debt, and data suggested weakness in the economy.




Standard & Poor's said it changed its ratings outlook on
Bear Stearns, the biggest U.S. underwriter of mortgage bonds,
to "negative" from "stable," indicating there is a better
chance of a downgrade over the next two years. For details,
see [ID:nN03300207].


Read more at Reuters.com Bonds News

US credit derivative index wider in nervous market

(Reuters) - "Headlines are driving the market; it still feels very
jittery, very nervous," said Arthur Tetyevsky, chief U.S.
credit strategist at HSBC in New York.




"We're still substantially wider than where we were a
couple of weeks back but the chaotic trading we saw early on in
the week seems to be fading a little bit," Tetyevsky said.
"We've really recovered a lot of the widening this week and
it's been a rollercoaster week."


Read more at Reuters.com Bonds News

US STOCKS-Rising fears of mortgage losses drive indexes down

(Reuters) - NEW YORK, Aug 3 - U.S. stocks slid sharply on
Friday, with fears about mortgage losses intensifying after
Bear Stearns' chief financial officer said
fixed-income market turmoil was worse than the Internet
bubble, and as jobs data suggested weakness in the economy.




Bear Stearns' shares fell 6 percent as mortgage jitters
drove a sell-off among financial shares. Earlier, Standard &
Poor's changed its ratings outlook on the investment bank, the
biggest U.S. underwriter of mortgage bonds, to "negative" from
"stable."


Read more at Reuters.com Bonds News

KDP expands research offerings into leveraged loans

(Reuters) - But the leveraged loan market is not going away and
investors will now be hungrier for information about the
quality of these securities, KDP President Kingman Penniman
said.




"The loan market since 2003 has quadrupled almost every
year and is now the same size as the high-yield bond market,"
Penniman said. "There's a lot of paper out there and will
continue to be."


Read more at Reuters.com Bonds News

Charter, Ditech, Health Management, Washington Post: 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 2:40 p.m. in New York.

Alkermes Inc. (ALKS US) rose the most since August 2004,
climbing $2.21, or 15 percent, to $16.99. The maker of a once-
monthly injection to treat alcoholism reported profit of 8 cents
a share in the fiscal first quarter. That beat the 4-cent average
estimate from analysts surveyed by Bloomberg.


Read more at Bloomberg Stocks News

Telcos pick up pace of video expansion

(Reuters) - NEW YORK, Aug 3 - Top U.S. telecom carriers are attracting more subscribers to their nascent video services, with Verizon Communications Inc. finally gaining a critical mass to compete against cable rivals. While still losing customers to cable companies -- which made a head start in offering all-in-one "bundles" of video, Internet and phone services -- AT&T Inc. and Verizon are fighting back, the latest quarterly earnings reports showed. Verizon added 167,000 subscribers to its FiOS TV service in the second quarter, taking the total to 515,000, according to its quarterly report on Monday. That compared with 141,000 additions in the first quarter and showed that the roll-out, which began in September 2005, was picking up momentum.



"They're gaining a critical mass of subscribers," said A.G. Edwards analyst Kent Custer, adding that investors were more supportive now of the high cost of the all-fiber-optic network that Verizon is building. "The proof is in the pudding now."


Read more at Reuters.com Market News

Wells Fargo, Wachovia Reduce Home-Mortgage Lending Amid `Credit Crunch'

(Bloomberg) -- U.S. mortgage lenders including Wells
Fargo & Co. and Wachovia Corp. are raising rates and imposing
stricter standards on some of their most creditworthy borrowers as
slumping demand in the mortgage bond market chokes off funding.

San Francisco-based Wells Fargo, the second-biggest U.S. home
lender, stopped issuing Alt-A loans through brokers, made to
borrowers with near-prime credit ratings or prime borrowers who
don't document income. Charlotte, North Carolina-based Wachovia,
the fourth-largest U.S. bank, also stopped making Alt-A loans
through brokers and smaller lenders and curtailed some adjustable
rate mortgages, spokeswoman Christy Phillips-Brown said.


Read more at Bloomberg Bonds News

MBK Offers to Buy C&M for $3.2 Billion in Korea's Biggest LBO, Bankers Say

(Bloomberg) -- MBK Partners Ltd., the South Korean
private equity group founded by former Carlyle Group executives,
offered 3 trillion won ($3.2 billion) for cable-TV operator C&M,
said two bankers who were asked to provide financing.

The Seoul-based buyout company wants to borrow as much as 2
trillion won to pay for closely held C&M, South Korea's second-
biggest cable-TV operator, said the bankers, who declined to be
identified because the bid hasn't been disclosed. The purchase
would include New York-based Goldman Sachs Group Inc.'s 30.5
percent stake, they said.


Read more at Bloomberg Bonds News

PRESS DIGEST - New York Times business news - Aug 3

(Reuters) - * China's high-profile investment in the Blackstone Group
LP has produced an unusual backlash within China as
shares in the equity firm have dropped steeply since it went
public in June.




* Take-Two Interactive Software Inc. , the video
game publisher, said on Thursday that it was postponing the
release of the latest game in its wildly popular Grand Theft
Auto series. The delay is likely to have ripple effects on the
broader video game industry during its crucial holiday selling
season.


Read more at Reuters.com Mergers News

Investors Bancorp, Summit Federal announce merger deal

(Reuters) - This will be followed by the merger of Summit Federal
Savings Bank into Investors Savings Bank, with Investors
Savings Bank surviving.





Read more at Reuters.com Mergers News

REFILE-UPDATE 2-Bear Stearns, brokers debt protection costs rise

(Reuters) - NEW YORK, Aug 3 - The cost to insure the debt of
Bear Stearns Cos. jumped on Friday after Standard &
Poor's changed its outlook on the investment bank's debt to
negative, indicating it is more likely to be cut over the next
one to two years.




Recent developments, including problems at some of Bear
Stearns' managed hedge funds, have the potential to hurt the
company's performance for an "extended period," S&P said in a
statement. For details, see [ID:nN03300207]


Read more at Reuters.com Mergers News

Telus to abandon BCE pursuit: report

(Reuters) - BCE, which is Canada's largest telecommunications group, has accepted an offer worth C$34.8 billion from a group including the Ontario Teachers Pension Plan.




Since pulling out of bidding, Telus had been lobbying regulators and meeting the Canadian Competition Bureau, hoping to get some guidance before BCE held its shareholder vote, the paper reported, citing unnamed sources.


Read more at Reuters.com Government Filings News

IKB subprime shockwaves continue to rattle Germany

(Reuters) - German commercial property financier Hypo Real Estate struggled to calm jittery investors by insisting it would be unaffected by the U.S. subprime fallout.




Its shares skidded more than 6 percent while Commerzbank -- which owns a property financier -- saw its stock fall over 4 percent.


Read more at Reuters.com Government Filings News

Dollar tumbles on credit worries

(Reuters) - The slowest rate of job growth since February and a deterioration in a U.S. service sector index for July triggered the dollar's sell-off, while declines in equities led by financial stocks took the greenback further south.




"It's a sell U.S. day today," said Brian Dolan, director of currency research at Forex.com in Bedminster, New Jersey.


Read more at Reuters.com Hot Stocks News

Bear Stearns says S&P outlook change unwarranted

(Reuters) - "S&P's specific concerns over issues relating to certain hedge funds managed by are unwarranted as these were isolated incidents and are by no means an indication of broader issues at Bear Stearns," the company said.




S&P earlier on Friday changed its outlook on Bear's debt to "negative" from "stable," which means it is more likely to cut Bear's ratings over the next year or two.


Read more at Reuters.com Business News

Brazilian company to rebuild crucial Angola dam

(Reuters) - Brazilian company Odebrecht is set to rebuild a crucial hydroelectric dam in Angola, raising hopes that foreign investment will boost an electricity industry battered by civil war, a state official said on Thursday.

The $158 million, 20-month project approved by the Angolan cabinet on Wednesday, has raised hopes that businesses in the southern region stand to benefit from investment.


Read more at Reuters Africa

S.Africa's c.bank governor says household debt costs to bite

(Reuters) - South Africa's central bank Governor Tito Mboweni warned on Friday that rising debt services costs were going to bite, and repeated calls for consumers to be careful about acquiring credit.

Official data last week showed growth in demand for credit by South Africa's private sector quicked to 24.92 percent year-on-year in June from 24.84 percent, hardening the case for higher interest rates later this month.


Read more at Reuters Africa

India Tata Steel to buy 35 pct in Mozambique project

(Reuters) - India's top private steel maker Tata Steel Ltd. said on Friday it would spend A$100 million to buy a 35 percent stake in a Mozambique coal project run by Australia's Riversdale Mining Ltd..

Tata Steel, which bought Anglo-Dutch Corus for $12.9 billion this year to become the world's sixth-largest steel maker, said it would source coking coal from the project for Corus' plants in the U.K. and Europe, and for Tata's Indian units.


Read more at Reuters Africa

S.Africa artisans' union gets coal strike permission

(Reuters) - South African union Solidarity has received a certificate that allows it to launch a strike in the coal mining industry, the union said on Friday.

South African coal industry sources said that because Solidarity represents artisans or skilled workers, a strike by Solidarity would be likely to have more impact on coal production than that by the National Union of Mineworkers (NUM) which represents mostly unskilled workers.


Read more at Reuters Africa

July job growth slowest since February

(Reuters) - In another sign of slowing growth, the Institute for Supply Management reported signs of a weakening service sector as its index of July activity fell to 55.8 from 60.7 in June. Any reading over 50 indicates growth.




Problems in the housing sector, where lenders are encountering difficulties with rising mortgage defaults and prices are declining in many metro markets, appeared to spread into hiring as construction businesses cut jobs.


Read more at Reuters.com Economic News

Toyota profit jumps on sales rise

(Reuters) - Toyota, the world's biggest and most profitable automaker, left its cautious annual forecasts unchanged, as expected.




The Japanese firm, valued at $215 billion -- more than 10 times the market capitalization of U.S. rival General Motors Corp. -- is on its way to a seventh straight year of record earnings, powered by a rapid expansion into developing markets such as China and Russia.


Read more at Reuters.com Market News

RBS profits up 11 percent

(Reuters) - The bank said income grew 8 percent to 14.7 billion pounds and costs as a percentage of revenue improved to 41.4 percent from 41.9 percent.




Profits in its U.S. banking arm Citizens fell 7 percent in sterling terms to 752 million pounds, but operating profit was up 2 percent before the impact of the weak dollar.


Read more at Reuters.com Market News

Jean Coutu reports fourth-quarter loss

(Reuters) - TORONTO, Aug 3 - Canadian drug store chain Jean Coutu Group reported a loss for its fourth quarter on Friday as charges related to the sale of its U.S. network to Rite Aid Corp. hurt results. The company said it had a loss of $6.9 million, or 3 cents a share, in the quarter. That is down from a profit of $30.3 million, or 12 cents a share, in the same period last year.



Jean Coutu closed the sale of its U.S. Brooks and Eckerd chains to Rite Aid in early June for $2.36 billion in cash and and 250 million shares of Rite Aid.


Read more at Reuters.com Market News

UPDATE 1-Fortis EPS hurt by Terasen purchase

(Reuters) - The company said it earned C$41.5 million ,
or 27 Canadian cents a share diluted, for the quarter ended
June 30, compared with C$37.9 million, or 35 Canadian cents a
share, for the same quarter last year.




The company said its May acquisition of British
Columbia-based natural gas distributor Terasen, which it funded
partially with a C$1.15 billion common share issue, diluted its
profit on an earnings per share basis.


Read more at Reuters.com Market News

UPDATE 2-Costs, charges drag Telus profit down 29 pct

(Reuters) - TORONTO, Aug 3 - Telus Corp. , Canada's No.
2 phone company, said on Friday that second-quarter profit sank
29 percent as costs of a new billing system, the introduction
of wireless number portability and the failed launch of the
Amp'd Mobile service combined to hurt results.




Net earnings declined to C$253.1 million ,
or 75 Canadian cents a diluted share, from a profit of C$356.6
million, or C$1.02 a share, a year earlier.


Read more at Reuters.com Market News

Asian Fish, Tainted With Drugs, Slip Past U.S. Inspectors, States Discover

(Bloomberg) -- Joseph Basile, an Alabama state
scientist, drops a frozen catfish filet into an industrial food
processor and pulverizes it into a fluffy white powder.

The grinding in a laboratory in Montgomery is part of a test
of imported seafood for drugs that U.S. regulators say can cause
cancer or increase resistance to antibiotics. Alabama officials
have reported finding banned medicines missed by the U.S. Food
and Drug Administration in seafood from China, Vietnam and other
Asian countries.


Read more at Bloomberg Exclusive 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

Democrats Split U.S. Power Industry in Drive to Promote Renewable Energy

(Bloomberg) -- House Speaker Nancy Pelosi has split
the nation's largest utilities such as American Electric Power
Co. from their government-owned counterparts in a drive for votes
to mandate more renewable energy.

The Democratic proposal to force publicly traded power
companies to get 15 percent of their supplies from wind, solar
and other renewable sources by 2020 is likely to have only a
narrow margin if it succeeds. The House may vote on the plan as
soon as today. A similar measure that failed in the Senate in
June included municipal utilities, rural cooperatives and
government power agencies that are excluded from the new bill.


Read more at Bloomberg Energy News

Gazprom, Belarus still in gas talks as deadline slips

(Reuters) - If the dispute escalates further, it has the potential to
disrupt gas supplies to Europe.




"Beltransgas's delegation arrived for talks yesterday, the
talks were held in the night and are still continuing. Gazprom
will give information on the first results at around 1100 ," a Gazprom spokesman told Reuters.


Read more at Reuters.com Bonds News

Futures turn negative on employment report

(Reuters) - Investors were bracing for data on the vast U.S. services sector at 10 a.m. ET.




Financial companies' shares were dragging after American Home Mortgage Investment Corp. said it plans to close most operations on Friday and lay off nearly 7,000 employees.


Read more at Reuters.com Bonds News

TREASURIES-Bonds rise as jobs come in on the soft side

(Reuters) - Benchmark 10-year notes rose 3/32 in price for
a yield of 4.76 percent from 4.77 percent late Thursday.




Read more at Reuters.com Bonds News

GLOBAL MARKETS-US jobs data hit stocks, dollar, boost bonds

(Reuters) - LONDON, Aug 3 - Stocks and the dollar fell while
safe-haven government bonds rallied on Friday after
weaker-than-expected U.S. jobs data fanned concerns about a U.S.
economy already struggling with credit liquidity fears.




U.S. stock futures pointed to a weaker open on Wall Street
while European stocks moved deeper in negative territory
after data showed U.S. employers boosted payrolls in July at the
slowest pace since February, adding 92,000 jobs.


Read more at Reuters.com Bonds News

Germany's DAX Falls; Hypo Real Estate, Depfa Drop; Deutsche Post Advances

(Bloomberg) -- German stocks fell, led by Hypo Real
Estate Holding AG, on speculation the commercial property lender
may be affected by losses in the U.S. subprime mortgage market.

Deutsche Post AG advanced after the company reported
earnings that beat analyst estimates.


Read more at Bloomberg Stocks News

Suncor Plans $4.14 Billion Expansion of Oil-Sands Operations in Alberta

(Bloomberg) -- Suncor Energy Inc. plans to spend
C$4.4 billion ($4.14 billion) to expand its northern Alberta
mining operations, the second multibillion-dollar oil-sands
project unveiled this week in Canada.

The mine is forecast to increase production of bitumen by
120,000 barrels a day, Suncor, the world's second-largest oil-
sands producer, said today in a statement. Construction may begin
by 2010 and the Voyageur South mine is projected to start
producing by 2013, the Calgary-based company said.


Read more at Bloomberg Energy News

Shanghai's Retreat on World's Fastest Train May Mean Last Stop for Maglev

(Bloomberg) -- Shanghai spent $1.25 billion building
the world's fastest train to the city's Pudong International
Airport. Cindy Huang would rather catch a bus.

The 50 yuan ($6.60) train fare is too costly for most
Shanghainese, says Huang, a human resources officer. The
magnetic-levitation, or maglev, line also terminates in Pudong's
suburbs, 12 kilometers from downtown, meaning most travelers must
get other transportation to reach their final destinations.


Read more at Bloomberg Emerging Markets News

Venezuela Led 9 Billion-Barrel Gain in OPEC Proven Oil Reserves Last Year

(Bloomberg) -- OPEC's proven crude oil reserves
rose 1 percent last year, led by increases in Venezuela and
Iran, at a time when European and U.S. oil companies such as BP
Plc and Repsol YPF SA struggled to find new deposits.

The tally for the 12-nation producer group rose by 9.2
billion barrels to 922.48 billion barrels at the end of 2006,
OPEC said today in its Annual Statistical Bulletin. The increase
was the biggest in four years and equivalent to all of the
proven reserves of Norway, Europe's biggest oil supplier.


Read more at Bloomberg Energy News

Barclays deal would boost ABN board pay: SEC data

(Reuters) - ABN's management and supervisory board withdrew its recommendation to merge with Barclays on Monday, but ABN Chief Executive Rijkman Groenink said ABN still supported Barclays' offer.




Asked whether ABN board members were more inclined to support Barclays because of the proposed levels of pay, an ABN spokesman said: "ABN and its advisors thoroughly investigated whether a potential conflict of interest could arise but that is absolutely not the case."


Read more at Reuters.com Business News

Japan Stocks Decline on U.S. Concerns, Strong Yen; Sony and Mizuho Drop

(Bloomberg) -- Japanese stocks fell after American
Home Mortgage Investment Corp. said it lacks cash to fund new
loans, sending U.S. shares lower and reigniting concerns subprime
problems will curb growth in the world's largest economy.

Exporters including Sony Corp. declined after the yen
strengthened, cutting the value of their overseas sales in the
local currency. The U.S. Standard & Poor's 500 Index posted its
biggest monthly drop in three years.


Read more at Bloomberg Stocks News

Japan's Government Bonds May Gain as Losses at Hedge Funds Spur Purchases

(Bloomberg) -- Japanese bonds may gain for a second
day as reports of more losses at hedge funds globally spur
demand for the relative safety of government debt.

Emerging-market and corporate debt fell yesterday on
concern investors are selling riskier assets as the credit
quality of U.S. mortgages to people with poor credit
deteriorates. Treasuries rose in New York, pushing yields on 10-
year notes to the lowest close since May 16.


Read more at Bloomberg Bonds News

UPDATE 2-First Solar posts 2nd-quarter profit vs loss

(Reuters) - Net income was $44.4 million, or 58 cents a share, compared
with a loss of $2.5 million, or 3 cents a share, a year
earlier.




The second quarter included a one-time tax benefit of 51
cents a share. Excluding the item, earnings were 7 cents a
share, topping analysts' estimate of 2 cents, according to
Reuters Estimates.


Read more at Reuters.com Market News

UPDATE 1-News Corp board OKs deal to buy Dow Jones-source

(Reuters) - The board met on Tuesday to consider its $60-per-share
offer.




The board vote came after at least 38 percent of Dow
Jones's voting shares held by the Bancroft family agreed to
support the deal, the source said. The family controls 64
percent of the Dow Jones voting shares.


Read more at Reuters.com Mergers News

Bear Stearns Halts Redemptions on Third Hedge Fund After Mortgage Losses

(Bloomberg) -- Bear Stearns Cos., manager of two
hedge funds that collapsed last month, halted redemptions from a
third fund after investors demanded their money back.

The fund had about $900 million invested in asset-backed
securities, including mortgage bonds, spokesman Russell Sherman
said in a telephone interview. The fund probably had losses in
July and was overwhelmed by redemption requests, Sherman said.


Read more at Bloomberg Bonds News

Aon posts higher 2nd-qtr profit, exceeds views

(Reuters) - NEW YORK, July 31 - Aon Corp , the world's second-largest insurance broker, said on Tuesday quarterly net income rose 24 percent, as the brokerage unit generated its highest rate of internal growth since 2003.



Second-quarter net earnings rose to $240 million, or 75 cents a share, from $193 million, or 57 cents a share, in the year-earlier quarter.


Read more at Reuters.com Market News

American Home may liquidate assets, shares plunge

(Reuters) - The development was the latest sign the U.S. housing slump is broadening, as worries about credit quality and defaults spread beyond subprime lenders, which lend to people with weaker credit, to lenders that make higher-quality loans.




American Home, a large mortgage provider, said its lenders cut off access to credit, leaving it unable on Monday to fund $300 million of loans it agreed to make. It expected to be unable to fund $450 million to $500 million of loans on Tuesday.


Read more at Reuters.com Mergers News

UPDATE 1-Meridian, Yamana at odds over hostile bid

(Reuters) - TORONTO, July 31 - Meridian Gold Inc.
urged shareholders on Tuesday to reject Yamana Gold
Inc.'s C$3 billion hostile bid, but
Yamana said it has found support among shareholders and it
expects the deal to go through as is.




Yamana launched the hostile offer for Meridian earlier this
month. As part of the deal, Yamana will also acquire Northern
Orion Resources Inc. for about C$1 billion in a
friendly deal that is conditional on the Meridian takeover
succeeding.


Read more at Reuters.com Mergers News

New Zealand Dollar Declines as Housing Woes Spur Reduction in Risky Bets

(Bloomberg) -- The New Zealand dollar dropped on
renewed concern that losses from U.S. subprime mortgages will
prompt investors to reduce holdings of riskier investments.

The currency, known as the kiwi, is a favorite for the so-
called carry trade, where investors borrow cheaply in yen to
invest in countries that offer higher yields. New Zealand's
record 8.25 percent benchmark rate is 7.75 percentage points
higher than Japan's and 3 points more than the Federal Reserve's
target, luring investors to the local currency. U.S. stocks slid
on concern more companies will be affected by defaults related
to subprime mortgages.


Read more at Bloomberg Currencies News

Argentina bonds, peso in recovery; stocks slip

(Reuters) - Both the Discount bond in pesos and Bonar VII paper rose
2.1 percent, while the Boden 2014 jumped 2.8 percent in
over-the-counter trade .




Some Argentine bonds shed as much as 20 percent last week
amid a sell-off in emerging market assets due to concerns the
U.S. subprime lending crisis would spread. Argentine bonds were
hit harder than others due to long-standing concerns about
inflation and, to a lesser extent, government spending.


Read more at Reuters.com Bonds News

UPDATE 1-Chipotle 2nd-qtr net tops Street, shares rise

(Reuters) - LOS ANGELES, July 31 - Chipotle Mexican Grill Inc
said on Tuesday quarterly earnings nearly doubled,
beating Wall Street estimates, on increased customer traffic
and higher menu prices.




Chipotle shares rose more than 7 percent in extended trade
after the restaurant chain also raised its same-store sales
forecast for the year.


Read more at Reuters.com Market News

Credit worries return, driving Wall St. lower

(Reuters) - Stocks had risen Monday and the first half of Tuesday's session, but the relief rally was cut short when American Home Mortgage Investment Corp. said it may have to liquidate assets. Shares of the mortgage lender fell 90 percent.




Investors remain sensitive to news about worsening lending conditions, which pummeled global equity markets last week. Credit market concerns pushed the S&P down 3.2 percent in July, its worst performance in three years.


Read more at Reuters.com Hot Stocks News

American Home, Dow Jones, MGIC, Optium, RAIT: U.S. Equity Movers Final

(Bloomberg) -- The following is a list of companies
whose shares had unusual price changes in U.S. exchanges. Stock
symbols are in parentheses after company names. Share prices are
as of 4 p.m. in New York.

Aftermarket Technology Corp. (ATAC US) rose the most since
September 2001, jumping $3.86, or 15 percent, to $30.35. The car-
parts maker increased its 2007 forecast, saying it expects to
earn $1.55 to $1.70 a share. The company earlier predicted profit
of as much as $1.55.


Read more at Bloomberg Stocks News

Corporate Bond Risk Soars on Concerns About Losses From Subprime Mortgages

(Bloomberg) -- The risk of owning U.S. corporate
bonds soared, erasing the biggest drop in at least three years,
as investors signaled that worries about widening losses from
subprime mortgages aren't over.

Credit-default swaps based on $10 million of bonds in the
benchmark CDX North American Investment-Grade Index jumped
$9,000 to about $81,000 at 4:03 p.m. in New York after dropping
earlier by as much as $9,000 to $63,000, according to Deutsche
Bank AG. During the past four days, the index, used to speculate
on corporate creditworthiness, has recorded its two worst and
two best days since it started trading more than three years
ago, according to data from Credit Suisse Group.


Read more at Bloomberg Bonds News

UPDATE 3-Alitalia chairman resigns on eve of board meet

(Reuters) - ROME, July 31 - In a twist of boardroom drama
befitting the crisis at Italian airline Alitalia ,
its chairman Barardino Libonati resigned on Tuesday on the eve
of a crucial board meeting that will decide its future.




Libonati, who was appointed in February to guide the
airline's privatisation, resigned after all the prospective
buyers withdrew from the sale earlier this month.


Read more at Reuters.com Bonds News

Mexico stocks revert gains, fall 0.45 pct

(Reuters) - The benchmark IPC stock index , which had risen more
than one percent in early trades, slid 139 points to 30,761
points. The peso currency firmed by 0.174
percent to 10.931 per dollar.




In debt trading, the price of the benchmark 10-year
government peso bond gained 0.124 points to bid
101.834, with a yield of 7.70 percent.


Read more at Reuters.com Bonds News

TVA to review Tenn. Watts Barr reactor project

(Reuters) - The board, which has not yet decided whether to complete the
unit's construction which was halted in 1988, asked the staff to
study the completion and startup of the unit.




Earlier this year, TVA completed an extensive $1.8 billion
overhaul of 1,155-megawatt Unit 1 at the Browns Ferry nuclear
station in Alabama, which the company shut in 1985 to address
management and operational issues. The board approved the
restart of Browns Ferry 1 in 2002.


Read more at Reuters.com Bonds News

UPDATE 2-American Home can't fund loans, may liquidate assets

(Reuters) - NEW YORK, July 31 - American Home Mortgage Investment Corp , a struggling mortgage lender, said on Tuesday it can no longer provide funding for home loans and has hired advisers to explore options, including a possible "orderly liquidation of its assets."



The Melville, New York-based real estate investment trust is one of the largest U.S. lenders to struggle with a U.S. housing slump that has caused home prices to stall, borrowing costs to rise and defaults to soar.


Read more at Reuters.com Mergers News

BAE Systems says completes Armor takeover

(Reuters) - "The acquisition expands the company's business in the United States and strengthens BAE Systems' position as one of the world's leading land systems businesses," BAE said in a statement to the London Stock Exchange.



BAE announced the transaction valued at $4.53 billion on May 7. Armor makes wheeled military vehicles and vehicle and individual armour systems.


Read more at Reuters.com Mergers News

Economist testifies against Whole Foods, Wild Oats

(Reuters) - By Peter Kaplan



WASHINGTON, July 31 - Competition between Whole Foods Market Inc and Wild Oats Markets Inc had led to lower profit margins, an economist told a U.S. federal judge on Tuesday who is weighing whether to block a merger of the organic grocers.


Read more at Reuters.com Government Filings News

US STOCKS-Indexes trim gains, mortgage insurers slip

(Reuters) - NEW YORK, July 31 - U.S. stocks rose on Tuesday
but were off their highs on jitters about fallout from the
subprime mortgage market and rising oil prices, which partly
offset strong earnings and positive economic indicators.




General Motors Corp. set the stage for gains after
the automaker swung to a profit in the second quarter and
handily topped Wall Street's expectations [ID:nN31206991].


Read more at Reuters.com Bonds News

Health Management net tumbles; forecast is weak

(Reuters) - CHICAGO, July 31 - Hospital chain Health Management Associates posted an 85 percent plunge in quarterly profit Tuesday, citing difficulties in collecting on hospital bills, and forecast 2007 profit significantly below Wall Street estimates.



HMA, whose shares fell 9 percent in pre-market trade, said second-quarter earnings fell to $11.9 million, or 5 cents a share, from $77.3 million, or 32 cents a share, a year earlier.


Read more at Reuters.com Bonds News

FTSE 100 Rallies Most in 14 Months, Paced by GlaxoSmithKline, Lloyds TSB

(Bloomberg) -- U.K. stocks rose for the first time
in six days as profit reports from Lloyds TSB Group Plc and
SABMiller Plc reassured investors that earnings growth will be
sustained. The FTSE 100 Index rallied the most in 14 months.

GlaxoSmithKline Plc advanced after a panel of U.S. doctors
voted to keep the company's diabetes pill Avandia on the market.
Alliance & Leicester Plc rallied on takeover speculation.


Read more at Bloomberg Stocks News

AngloGold Plans to Boost Output, Reduce Costs After Second-Quarter Profit

(Bloomberg) -- AngloGold Ashanti Ltd., Africa's
largest gold producer, said it will increase production and
reduce costs after posting a 1.08 billion-rand ($152.3 million)
second-quarter profit.

Net income was 3.85 rand a share, compared with a loss of
150 million rand, or 53 cents, in the first quarter, the
Johannesburg-based company said today in a statement. Chief
Executive Officer Bobby Godsell, 54, also announced his
retirement after almost a decade in his post.


Read more at Bloomberg Emerging Markets News

Dollar edges up as stocks rally

(Reuters) - Stock indexes opened strongly, recovering for a second day from one of Wall Street's worst weeks in five years, boosted by a rosy corporate earnings outlook. But equities subsequently pared their gains, led by losses in the financial sector.




As a result, the dollar came off its highs against the yen and recovered modestly versus the euro, which at one point slipped below $1.37.


Read more at Reuters.com Hot Stocks News

Morgan Stanley's MSCI plans $200 mln IPO

(Reuters) - NEW YORK, July 31 - Morgan Stanley said on Tuesday it plans to sell part of its stake in index and risk analytics provider MSCI Inc. through an initial public offering as it focuses on its core brokerage business.



The investment bank, which owns 96.6 percent of MSCI's shares outstanding, said that while it plans to initially sell a minority interest later this year, "it would be beneficial to ultimately divest its remaining interest in MSCI."


Read more at Reuters.com Mergers News

UPDATE 1-Hilton Hotels earnings rise on higher rates

(Reuters) - The company, which operates the Hilton, Hampton, and
Doubletree hotel brands, posted second-quarter net profit of
$165 million, or 40 cents per share, compared with $144
million, or 35 cents per share, in the same period a year ago.




Excluding one-time items, including a gain from the sale of
the Scandic hotel chain, the company said it posted
second-quarter earnings of 38 cents per share.


Read more at Reuters.com Mergers News

Entergy, GE-Hitachi in nuclear components deal

(Reuters) - Entergy said it has not yet made a firm decision to build a
new nuclear unit but wants to line up components now to allow
it to do so by 2017.




The company, which says it is the second-largest U.S.
nuclear operator, has operated nuclear plants at both those
sites since the mid-1980s.


Read more at Reuters.com Bonds News

US STOCKS-Indexes open up on earnings view

(Reuters) - The Dow Jones industrial average was up 45.11
points, or 0.34 percent, at 13,403.42. The Standard & Poor's
500 Index was up 6.15 points, or 0.42 percent, at
1,480.06. The Nasdaq Composite Index was up 23.04
points, or 0.89 percent, at 2,606.32.




Read more at Reuters.com Bonds News

WRAPUP 1-U.S. core inflation softens in June

(Reuters) - The 0.1 percent rise in the core personal consumption price
index "should be reassuring to the Fed," said Camilla Sutton,
currency strategist at Scotia Capital in Toronto.




U.S. stock index futures rose on the weak inflation data
and a stronger-than-expected earnings report from General
Motors . U.S. government debt prices fell despite the
inflation report, and the dollar was lower against the euro.


Read more at Reuters.com Economic News

UPDATE 1-Group 1 Automotive's quarterly profit dips

(Reuters) - DETROIT, July 31 - Car dealership chain Group 1 Automotive Inc. said on Tuesday that second-quarter profit fell 3 percent, hurt by declines in new- and used-vehicle revenue.



The Houston-based company, the fourth-largest auto retailer in the United States, said earnings declined to $24.2 million, or $1.01 per share, from $24.9 million, or $1 per share, a year earlier.


Read more at Reuters.com Market News

J&J to cut jobs in restructuring

(Reuters) - The company is targeting savings in its pharmaceuticals division, where it will consolidate certain operations. The company noted that it faces major patent expirations over the next few years to several drugs.




The maker of consumer health products, pharmaceuticals and medical devices is also primarily seeking savings from its Cordis franchise, which competes in the market for drug-coated stents. Such stents have been hit with safety concerns after being initially hailed as revolutionary.


Read more at Reuters.com Business News

UPDATE 1-Entergy posts lower 2nd-qtr earnings

(Reuters) - Net income fell to $267.6 million, or $1.32 per share, from
$281.8 million, or $1.33 per share, a year earlier.




Excluding special items, Entergy's earnings rose on higher
energy prices and output at its nuclear units and lower tax
expenses at its wholesale power business. The company earned
$1.32 per share compared with a year-ago profit of $1.22 per
share when it excluded results from its bankrupt Entergy New
Orleans unit.


Read more at Reuters.com Market News

UPDATE 1-Amedisys Q2 profit beats market estimate; ups FY07 view

(Reuters) - Amedisys earned $14.9 million, or 57 cents a share, for the
quarter, on net service revenue of $169.5 million. Analysts on
average expected earnings of 53 cents a share, on revenue of
$160.4 million, according to Reuters Estimates.




The company raised its 2007 earnings outlook to a range of
$2.10 to $2.20 a share from $2.05 to $2.15. Its new estimate on
net service revenue is $650 million to $675 million, up from
its prior view of $625 million to $650 million.


Read more at Reuters.com Market News

UPDATE 1-Hanover Compressor Q2 earnings rise 20 percent

(Reuters) - Net income for the quarter increased to $26.1 million or 23
cents a share from $21.7 million or 21 cents a share, a year
ago. Analysts expected earnings of 18 cents a share, according
to Reuters Estimates.




Revenue rose 27 percent to $515.7 million, driven primarily
by its compressor and accessory fabrication segment, which
contributed more than a fourth of the company's revenue.


Read more at Reuters.com Market News

MGIC, Radian's C-Bass Subprime Venture Is in Talks to Secure More Funding

(Bloomberg) -- Credit-Based Asset Servicing and
Securitization LLC, a New York-based subprime loan company, said
it's in talks with investors to ensure it has sufficient funds
after turmoil in the market for high-risk borrowers.

Mortgage insurers MGIC Investment Corp. and Radian Group
Inc. yesterday said their C-Bass joint venture may be worthless,
requiring more than $1 billion in writedowns. MGIC, the largest
U.S. insurer of home loans, and Radian, the rival it's buying,
said ``unprecedented'' volatility in mid-July may have destroyed
their stakes, each valued at more than $500 million on June 30.


Read more at Bloomberg Bonds News

Fording profit drops on lower coal prices

(Reuters) - Analysts expected an average of 64 Canadian cents a unit,
according to Reuters Estimates.




Cash available for distributions to unitholders was C$135
million, or 92 Canadian cents a unit during the quarter, down
from C$147 million or C$1.00 a unit a year earlier.


Read more at Reuters.com Market News

Crude Oil Rises to Near One-Year High as Refiners in U.S. Boost Operations

(Bloomberg) -- Crude oil rose close to a one-year
high on expectations U.S. refiners will step up their
operations, increasing demand for crude.

U.S. Energy Department will probably say tomorrow that
refiners increased operating rates 0.4 percentage point last
week, the sixth weekly gain, according to a Bloomberg News
survey. Crude oil stockpiles probably fell 1.3 million barrels
in the period.


Read more at Bloomberg Energy News

Price pressures, merger costs hit Alcatel-Lucent

(Reuters) - Alcatel-Lucent, created in December 2006 by the takeover of U.S.-based Lucent by Alcatel of France, has been struggling to win the confidence of customers spooked by uncertainty over the merged group's technology and product choices.




It already warned in April that sales could fall short of earlier targets.


Read more at Reuters.com Business News

Australian Wool Prices Fall to Lowest in Six Months on China Import Halt

(Bloomberg) -- Wool prices in Australia, the
world's biggest producer and exporter of the fiber, fell to
their lowest in more than six months after China's government
stopped taking applications for imports.

Benchmark prices fell 33 cents, or 3.6 percent, to A$8.96 a
kilogram ($7.71) today on the Eastern Market Indicator, David
Cother, wool services manager at the Australian Wool Exchange,
said from Sydney. That's the lowest since Jan. 10. Sales resumed
today after a three-week Southern Hemisphere winter recess.


Read more at Bloomberg Commodities News

Asian Shares Advance, Posting Longest Monthly Winning Streak in 20 Years

(Bloomberg) -- Asian stocks rose as higher earnings
from Olympus Corp. and Hang Seng Bank Ltd. helped the region's
benchmark post its longest monthly winning streak in 20 years.

BHP Billiton Ltd. led gains by mining companies on
speculation profits will climb along with metals prices.
Disappointing earnings from Kyocera Corp. and Kookmin Bank
limited today's advance.


Read more at Bloomberg Stocks News

FTSE rallies more than 1 pct; GSK, miners shine

(Reuters) - Britain's top share index rose more than 1 percent on Tuesday, boosted by a jump in GlaxoSmithKline and after an overnight rebound on Wall Street helped to arrest a two-week long decline.

GlaxoSmithKline rallied 3.6 percent after an advisory panel said diabetes drug Avandia should stay on the U.S. market even though data suggest it may increase the risk of heart attack for some patients.


Read more at Reuters Africa

Brazilians Hail Taxis for City-to-City Rides as Chaos Besieges Air Travel

(Bloomberg) -- Carlos Amorim stepped on an
interstate bus last week for the first time in three decades.

For six years, he made the 429-kilometer (267-mile) trip to
Sao Paulo from Rio de Janeiro by plane. Like thousands of other
Brazilians, he's switching to travel by bus, car or private jet
to avoid long lines and delays at airports.


Read more at Bloomberg Exclusive News

European, Asian Stocks Rise on Speculation Credit Worries Were Overdone

(Bloomberg) -- European stocks rebounded from a
five-day slide, while Asian shares climbed for a second day as
investors speculated declines have left global equities cheap
relative to prospects for earnings growth.

Aviva Plc, HSBC Holdings Plc and UBS AG led gains by
financial stocks in Europe. GlaxoSmithKline Plc, the region's
second-largest drugmaker, jumped after a panel of medical
specialists said its Avandia drug should remain on the U.S.
market. Olympus Corp. and Hang Seng Bank Ltd. paced gains in Asia
after the companies reported higher earnings.


Read more at Bloomberg Stocks News

European Stocks Rise, Paced by Aviva, UBS, GlaxoSmithKline, BHP Billiton

(Bloomberg) -- European stocks advanced for the
first time in six days on speculation shares have become cheap
relative to prospects for earnings growth.

Aviva Plc, HSBC Holdings Plc and UBS AG led financial stocks
higher. GlaxoSmithKline Plc, the region's second-largest
drugmaker, rose after a panel of medical specialists said its
Avandia drug should remain on the U.S. market. BHP Billiton Ltd.
and Rio Tinto Group gained on higher copper prices.


Read more at Bloomberg Stocks News

UPDATE 1-Japan regulator probes steel firms -source

(Reuters) - The commission had also raided the offices of Sumitomo Metal
Industries Ltd. and Kubota Corp. on suspicion
of collusion to fix prices and decide which would get orders from
construction firms, the source said.




The suspected wrongdoing took place between 2004 and 2005,
the source said.


Read more at Reuters.com Government Filings News

Most Japanese Stocks Climb; Olympus Leads Gains on Earnings, Kyocera Falls

(Bloomberg) -- Most Japanese stocks advanced after
companies including Olympus Corp. and Mitsubishi Corp. reported
first-quarter profit that attracted buyers.

Gains were limited after earnings at companies including
Kyocera Corp. lagged behind investor expectations.


Read more at Bloomberg Stocks News

Alcatel-Lucent Q2 net loss wider than forecast

(Reuters) - The Franco-American telecoms equipment provider reported a net loss of 336 million euros for the three months to June 30 on Tuesday, against a profit of 302 million euros the previous year and compared with expectations of a 147.1 million loss, based on a Reuters poll of 10 analysts.



The company, which also confirmed its full-year sales growth expectations, added the outcome included a negative impact of 176 million euros from several "significant items".


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Taiwan's Stocks Gain for First Time in Five Days; Cathay Financial Climbs

(Bloomberg) -- Taiwan's stocks rose for the first day
in five as investors judged recent declines excessive and a
newspaper reported the island's mutual funds may invest more.
Cathay Financial Holding Co. led gains.

``Investors have regained their composure after being knocked
around in the global stock market turmoil,'' said Vickie Hsieh,
who helps oversees $1.4 billion at President Investment Trust
Corp. ``Leading Taiwan companies offering good value will be the
most appealing.''


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UPDATE 1-Takeda profit rises 5.1 percent, outlook unchanged

(Reuters) - Actos, the main earnings engine for Japan's largest drug
maker, has seen its fortunes rise after sales of
GlaxoSmithKline's Avandia slumped following a critical
study by top cardiologist Steven Nissen published on May 21.




Takeda said April-June first-quarter net profit climbed to
131 billion yen on a 9.6 percent rise in revenue from a year
earlier to 366 billion yen.


Read more at Reuters.com Market News

Deutsche Boerse, Deutz, Infineon, MAN and MediGene: German Equity Preview

(Bloomberg) -- The following stocks may rise or fall
in German markets.

Germany's X-DAX Index climbed 0.9 percent to 7529.98. The
index provides an estimate of the DAX Index, based on trading in
DAX futures after the Xetra electronic market closes. The DAX
added 0.1 percent to 7456.31 on the Xetra electronic-trading
system.


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French Suspicions About Wealth Make Exiles Wary of Sarkozy's Tax Reforms

(Bloomberg) -- Nicolas Sarkozy is rolling out the
welcome mat for thousands of rich French people who fled one of
Europe's most onerous tax regimes. Few may heed his call.

In his first economic act as president, Sarkozy is pushing
a tax law to lure back exiles such as rock star Johnny Hallyday,
64, and members of the Mulliez clan, who control the French
retailer Groupe Auchan SA. The measure will increase exemptions
on the ``fortune'' tax -- the bete noire of rich expatriates --
and cap the total individual tax rate at 50 percent of income.


Read more at Bloomberg Bonds News

Two-Year Note Auction in Japan to Draw Lowest Price of 99.97, Survey Shows

(Bloomberg) -- Japan's sale of 1.7 trillion yen
($14.3 billion) of two-year notes today may have a lowest-
accepted price of 99.97, according to the median forecast of 13
traders surveyed by Bloomberg News.

Estimates for the lowest-accepted price ranged from 99.97
to 99.975. The price is the minimum at which the government
sells the securities.


Read more at Bloomberg Bonds News

Indonesia's July Crude Oil Production Falls 0.4 Percent From Month Earlier

(Bloomberg) -- Crude oil output in Indonesia,
Southeast Asia's biggest oil producer, fell 0.4 percent in July
from June, regulator BPMigas said.

Crude production declined to an average of 825,614 barrels a
day from 828,941 barrels a day a month earlier, BPMigas said
today. Output of condensate, a type of light oil produced in
association with natural gas, climbed 2.3 percent to 118,072
barrels a day in July.


Read more at Bloomberg Energy News

Oil steady, investors brace for further crude draw

(Reuters) - U.S. crude eased 16 cents to $76.67 a barrel by 0201 GMT, adding to Monday's 19-cent decline after a day of volatile trade that saw prices swing between $76.05 to $77.33.




But after a seven-week, $12 rally fuelled by U.S. refinery troubles, a spurt of renewed fund investment and OPEC's adherence to supply curbs, prices remain within shouting distance of last July's all-time high $78.40 a barrel.


Read more at Reuters.com Hot Stocks News

China National, Reliance Win Australian Offshore Oil Exploration Permits

(Bloomberg) -- China National Offshore Oil Corp.,
Total SA and India's Reliance Industries Ltd. were among
companies that won offshore oil and gas exploration permits in
Australia.

Hess Corp., Santos Ltd. and Woodside Petroleum Ltd. also won
licenses in the bidding round, which will result in an investment
of more than A$800 million ($688 million) on exploration,
Industry Minister Ian Macfarlane said today in an e-mailed
statement.


Read more at Bloomberg Energy News

News Corp wants more Bancroft support on Dow Jones

(Reuters) - The comment from a News Corp. spokesman pushed Dow Jones shares down as much 8.5 percent. The stock was down 3.1 percent at $52.76 in early afternoon trading, compared to News Corp's bid price of $60 per share.




The Bancroft family, which controls more than 64 percent of Dow Jones's voting shares, is expected to decide by the end of Monday whether to support the Murdoch bid.


Read more at Reuters.com Business News

UPDATE 1-Anadarko Petroleum 2nd-qtr profit down, revenue up

(Reuters) - Profit in the second quarter was $652 million, or $1.39
cents a share, compared with $814 million, or $1.76 a share, in
the same quarter a year earlier.




Total revenue in the quarter surged to $3.31 billion, up
from $1.81 billion in the year-ago quarter, as gas sales nearly
doubled.


Read more at Reuters.com Market News

American Campus posts smaller quarterly loss

(Reuters) - Analysts on average had expected a loss of 6 cents per
share, according to Reuters Estimates.




Read more at Reuters.com Market News

Manufacturers, Steelmakers, Kookmin Bank: South Korea Equity Preview

(Bloomberg) -- The following shares may rise or fall
in South Korea. Prices refer to the previous close. This preview
includes news announced after markets shut yesterday. Stock
symbols are in brackets after the company names.

The Kospi index gained 1.3 percent to 1,906.71. The Kosdaq
advanced 0.3 percent to 794.19. Kospi 200 futures expiring in
September rose 2 percent to 242.55, while the underlying index
climbed 1.3 percent to 241.39.


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UPDATE 1-Chile bottler Andina first half net up 9.9 pct

(Reuters) - Andina , which bottles and distributes
Coca-Cola products in Chile, Brazil and Argentina, said
profit for the January-June period was 35.014 billion pesos
versus 31.847 billion pesos in the same period
last year.




"This first quarter we had good results because of a rise
in volume, a rise in real prices and a positive macroeconomic
environment," the company said in a statement.


Read more at Reuters.com Market News

Canadian Dollar Falls for 4th Day on Subprime Debt, Commodities Concerns

(Bloomberg) -- The Canadian dollar fell for a
fourth day as investors sold commodity-linked currencies on
speculation U.S. subprime mortgage losses will slow the world's
largest economy.

The Canadian currency was the second-worst performer among
the 16 most actively traded currencies, trailing only Japan's
yen, while falling 0.3 percent to 93.70 U.S. cents. One U.S.
dollar buys C$1.0662.


Read more at Bloomberg Currencies News

Community Health 2nd-qtr profit up 3 pct

(Reuters) - CHICAGO, July 30 - Community Health Systems Inc. , which recently bought a rival for $5.1 billion to create the biggest investor-owned hospital chain, said on Monday that profit rose nearly 3 percent on admissions from acquisitions.



Second-quarter profit increased to $53.8 million, or 57 cents per share, from $52.4 million, or 54 cents per share, a year earlier.


Read more at Reuters.com Market News

Yen May Extend Decline Against Euro, Dollar as Stock Rally Encourages Risk

(Bloomberg) -- The yen may extend its decline
against the euro and dollar as a rebound in U.S. stocks might
restore investors' confidence to buy higher-yielding assets
funded by loans in Japan.

The Japanese currency dropped yesterday as rising U.S.
equities encouraged investors to resume the so-called carry
trade. Japan's yen has gained against all 16 major currencies
tracked by Bloomberg this month amid concern over subprime losses
and credit risks.


Read more at Bloomberg Currencies News

U.S. vehicles rank bottom in world fuel efficiency

(Reuters) - The report comes as the House of Representatives will debate energy legislation this week, and some lawmakers want to tack on language to significantly increase the miles American cars and trucks travel on a gallon a gasoline.




U.S. fuel-efficiency requirements for passenger cars have been stuck at 27.5 miles per gallon since 1985, while the standard for pickups, minivans and other light trucks will increase from 20.7 mpg in 2004 to 24 mpg in 2011.


Read more at Reuters.com Business News

UPDATE 1-GM offers zero-percent financing on pickups

(Reuters) - DETROIT, July 30 - General Motors Corp
said on Monday it had begun offering zero-percent financing for
up to 60 months on the extended and crew cab versions of its
2007 pickup trucks in response to competitors' discounts.




"We want to be competitive in the marketplace and there has
been increasingly heavy spending by our competitors," said John
McDonald, GM spokesman.


Read more at Reuters.com Bonds News

Paulson says Treasury to hit debt limit in October

(Reuters) - "These actions should be reserved only for extraordinary circumstances, and should be avoided," Paulson said.




The U.S. debt limit is set by statute, so the Treasury has to seek Congress' approval for an increase. With both houses of Congress now under Democratic control, the request likely sets the stage for a debate about the Bush administration's management of the economy and of the national debt.


Read more at Reuters.com Bonds News

GLOBAL MARKETS-Stocks up, bonds slip, but credit worries lurk

(Reuters) - NEW YORK, July 30 - Stocks climbed on Monday
after last week's drop on credit concerns, while a safe-haven
bid for U.S. government bonds abated somewhat, but trade was
jumpy as investors' jitters about riskier assets lingered.




The dollar drifted lower against most currencies, as
traders remained wary of weakness in U.S. credit markets.


Read more at Reuters.com Bonds News

Emerging-Market Bonds Rebound, Following Equities as Risk Aversion Recedes

(Bloomberg) -- Emerging-market bonds rose, erasing
earlier losses, as gains in global stock markets prompted
investors to buy riskier, higher-yielding securities.

Developing nation debt is rebounding from declines spurred
by concern losses from subprime mortgages may spread to other
markets. The extra yield investors demand to hold emerging-
market bonds today fell to its lowest since July 25. The Dow
Jones Industrial Average advanced almost 1 percent.


Read more at Bloomberg Emerging Markets News

Copper Gains as Dollar Drops, Making Metal Priced in U.S. Currency Cheaper

(Bloomberg) -- Copper rose more than 1 percent in
New York on speculation that a weaker dollar will encourage
buyers holding other currencies to purchase the metal.

The dollar dropped the most in more than two weeks against
the euro. A change in exchange rates makes copper, traded in
dollars, more or less expensive for buyers using other
currencies. The metal has gained 25 percent this year, while the
dollar is down 3.7 percent against the euro.


Read more at Bloomberg Commodities News

UPDATE 1-Cedar Fair says not in takeover talks

(Reuters) - The New York Post earlier on Monday reported that Cedar
Fair was in talks to be taken over by investment firm Destiny
Capital in a deal worth $4.1 billion.




"An article today reports a claim by an organization
referred to as 'Destiny Capital' that constructive negotiations
with the company have been undertaken. We are not currently in
negotiations with that organization or any other party," said
Cedar Fair Chief Executive Dick Kinzel in a statement.


Read more at Reuters.com Bonds News

Mexican stocks extend gains, America Movil leads

(Reuters) - The benchmark IPC stock index surged 2.50 percent to
30,989 points and the peso currency was stable
at 10.963 per dollar.




In debt trading, the price of the benchmark government
10-year peso bond rose 0.247 points to bid 101.648,
with a yield of 7.73 percent.


Read more at Reuters.com Bonds News

U.S. Stocks Rebound on Upgrades; KB Home, Nordstrom, Terex Shares Advance

(Bloomberg) -- U.S. stocks rebounded, pacing a
global advance, after Wall Street brokerages told investors to
buy shares that fell during last week's $2.1 trillion global
sell-off.

KB Home led homebuilders higher after Citi Investment
Resarch raised the shares to ``buy.'' Nordstrom Inc. posted its
steepest gain since August on a Goldman, Sachs & Co. upgrade.
Terex Corp., the maker of trucks and cranes, surged the most in
three weeks and led the Standard & Poor's 500 Index higher
after Goldman, Sachs & Co. advised clients to buy the shares.


Read more at Bloomberg Stocks News

U.S. online help-wanted ads fall in July: report

(Reuters) - A year ago, the figure was 3.41 million.




"The monthly decline in July in large part reflects the July 4th holiday week when ad volume dropped," said Gad Levanon, economist at the Conference Board.


Read more at Reuters.com Economic News

US STOCKS-Credit worries drag on stocks, offset profit view

(Reuters) - NEW YORK, July 30 - U.S. stocks traded little
changed in erratic trading on Monday after Wall Street's worst
week in nearly five years as concerns about the deteriorating
credit market countered optimism about the earnings outlook.




Tightening lending standards threatened to slow or halt the
heavy pace of corporate buyouts, including several major deals
by private equity firms, which have fueled a rally in stocks.


Read more at Reuters.com Bonds News

UPDATE 1-Charles Evans to replace Moskow at Chicago Fed

(Reuters) - Evans, 49, becomes the ninth Chicago Fed president. He
succeeds Michael Moskow, who is retiring on Aug. 31.




Evans will vote on U.S. interest-rate policy at the final
three Federal Open Market Committee meetings of 2007.


Read more at Reuters.com Bonds News

Copper Futures Gain in New York, Erasing Earlier Loss, on Weaker Dollar

(Bloomberg) -- Copper gained in New York, erasing
earlier losses, on speculation that a weaker dollar will
encourage buyers holding other currencies to purchase the metal.

The dollar dropped the most in more than two weeks against
the euro. A change in the U.S. currency's value makes copper,
traded in dollars, more or less expensive for buyers using other
currencies. Before today, the metal had gained 24 percent this
year, as the dollar fell 3.3 percent against the euro.


Read more at Bloomberg Commodities News

Lone Star extends tender offer for Accredited Home

(Reuters) - NEW YORK, July 30 - Private equity firm Lone Star, which agreed to acquire Accredited Home Lenders Holding Co. in June, said on Monday it was extending its tender offer by 10 business days for all outstanding shares of the struggling subprime mortgage lender's common stock.



The date has been extended till Aug. 14 because Accredited Home had not obtained regulatory approvals required to close the tender offer by the previous deadline of July 27, Lone Star said.


Read more at Reuters.com Mergers News

Nordstrom, RadioShack, Rural Cellular, ValueClick: U.S. Equity Movers

(Bloomberg) -- The following is a list of companies
whose shares are having unusual price changes in U.S. exchanges.
Stock symbols are in parentheses after company names. Share
prices are as of 10:10 a.m. in New York.

Home Depot Inc. (HD US) rose the most since June 20, gaining
61 cents, or 1.7 percent, to $37.36. Shares of the world's
largest home-improvement retailer could double in the next three
years, Barron's said, citing no one.


Read more at Bloomberg Stocks News