Euro-Swedish Krona Technical Chart Shows Drop to 9.10 Is Likely, UBS Says

(Bloomberg) -- The euro may drop to a four-month low
of 9.10 Swedish krona in three weeks, according to price charts,
said Tow Keong Su, technical analyst at UBS AG in Singapore.

The currency pair is likely to fall further after breaking
below a trend line connecting the Nov. 17, 2005, high of 9.6565
and the April 3 high of 9.3827. Momentum indicators such as moving
average convergence/divergence, the relative strength index and
stochastics also suggest declines. The stokie, as Sweden's
currency is known, surged the most in five years yesterday after
the Riksbank said it will raise interest rates more than it
previously predicted this year.


Read more at Bloomberg Currencies News

US reform could bring $114 boost per Africa family

(Reuters) - Eliminating cotton subsidies in the United States, which accounts for about 40 percent of world cotton exports, would increase poor African families' incomes by up to 6 percent, a new study said.

"What the U.S. Congress elects to do in farm policy (affects) the ability of poor farmers to feed themselves, to secure a living and to feed their families," said Jim Lyons, aid group Oxfam America's vice president for policy.


Read more at Reuters Africa

JGBs extend losses after weak 20-yr auction demand

(Reuters) - Bonds extended losses after an 800 billion yen offer of
20-year JGBs by the Ministry of Finance met with slightly weak
demand as investors remained wary that interest rates will
continue to rise.




"The results were neither good or bad, but the tail was bit
wide," said Akihiko Inoue, market analyst at Mizuho Investors
Securities.


Read more at Reuters.com Bonds News

CIMB, European Islamic Bank Start Commodity Islamic Deposits in the U.K.

(Bloomberg) -- CIMB Group Sdn., Malaysia's second-
biggest financial group, started its first overseas commodity-
backed deposit program complying with Islamic law with the
U.K.'s European Islamic Investment Bank Plc.

The commodity Murabahah will help ``strengthen'' CIMB's
Islamic money market and foreign exchange operations in the U.K.,
Kuala Lumpur-based CIMB Group said in an e-mailed statement
yesterday. Murabahah is an Islamic monetary instrument that uses
commodities as its underlying asset to help banks manage their
liquidity and short-term deposits.


Read more at Bloomberg Bonds News

National Australia Bank Raises Coal Price Forecasts on Rising China Demand

(Bloomberg) -- National Australia Bank Ltd., the
nation's biggest lender, raised its forecasts for coal prices for
the 2008 Japanese financial year because of rising demand in
China and elsewhere in Asia and export bottlenecks in Australia.

Contract prices for thermal coal, used in power plants, may
rise to $61.20 a metric ton in the year starting April 1, 2008,
from $55.65 a ton this year, the Melbourne-based bank said today
in a report. Semi-soft coking coal contract prices may rise to
$65.80 a ton, while hard coking coal prices may rise to $105 a
ton, it said.


Read more at Bloomberg Energy News

Copper Little Changed Amid Concern About South America Strikes; Zinc Falls

(Bloomberg) -- Copper prices were little changed in
Asia amid concern that strikes will disrupt production at Latin
American mines and speculation that China, the world's largest
consumer of the metal, may raise interest rates.

Contract workers at Chile's Codelco, the world's largest
copper producer, may strike today to seek higher pay, and three
unions at Southern Copper Corp. in Peru plan to walk out June 23.
Still, the impact on supply of the metal may be limited by
reduced import demand in China, which has built up stockpiles.


Read more at Bloomberg Commodities News

South Korea, U.S. review sweeping trade deal

(Reuters) - The pact -- the biggest U.S. trade deal in 15 years -- was reached in April. But U.S. Congressional Democrats reached a deal with the White House in May that paved the way for approval of the Republican Bush administration's free trade deals if enforceable labor and environmental provisions were added.




South Korean officials say they anticipate there will be no major changes and expect the pact will be signed on June 30 as scheduled.


Read more at Reuters.com Business News

Australian Equities Snap Five-Day Advance; Coles Group Falls on Bid Report

(Bloomberg) -- Australian stocks dropped, snapping
five days of gains. Coles Group Ltd. led declines on a report the
TPG Inc.-led buyout group quit plans to bid for the retailer.

Australia & New Zealand Banking Group Ltd. led banks lower
after local bond yields rose, making their dividends less
attractive. Westfield Group led declines among companies that rely
on U.S. sales after the Standard & Poor's 500 Index in New York
posted its steepest decline in two weeks after higher bond yields
there renewed concern the world's largest economy will slow.


Read more at Bloomberg Stocks News

Low yield keeps yen near 4-1/2-yr low vs dollar

(Reuters) - "The basic trend of currencies with prospects of rising interest rates strengthening remains intact," said Nobuo Ibaraki, a forex manager at Nomura Trust and Banking.




The Bank of Japan is also expected to boost interest rates as early as August, but the yen is pressured as interest rate differences with other countries remain wide and keep Japanese investor appetite for higher-yielding foreign assets, he said.


Read more at Reuters.com Hot Stocks News

Luxottica to buy Oakley for $2.1 billion

(Reuters) - The deal has been unanimously approved by both companies boards of directors.




Read more at Reuters.com Bonds News

Thomson unit forced to up interest costs-sources

(Reuters) - Pricing on the seven-year, $3.44 billion term loan backing
the deal was increased by 25 basis points, the sources said,
bumping up the company's borrowing costs. Investors also forced
Thomson Learning to change terms on its revolver and
pay-in-kind notes.




The company and its private equity buyers already faced
high borrowing costs through the large chunk of debt borrowed
for the buyout.


Read more at Reuters.com Bonds News

Andersons, Panacos Pharmaceuticals Advance: U.S. After-Hours Trading Wrap

(Bloomberg) -- Andersons Inc. jumped in extended
U.S. trading after the grain-storage and ethanol company boosted
its 2007 profit forecast.

Shares of the Maumee, Ohio-based company climbed $3.56, or
8.8 percent, to $43.96 at 6 p.m. in New York. Andersons said
earnings this year may be as much as $3.05 a share, up from a
May prediction of as much as $2.60. Analysts expected $2.68,
based on the average of six estimates compiled by Bloomberg.


Read more at Bloomberg Stocks News

J Crew mulls "crewmutts" line of dog gear

(Reuters) - CIBC World Markets analyst Roxanne Meyer said the concept
could be very successful, given J Crew's "classic, preppy and
fun styling" and said she views it as an incremental sales
productivity driver.




"Can't you see your argyle sweater and rain boots on Fido?"
Meyer asked in a research note.


Read more at Reuters.com Government Filings News

UPDATE 1-Sonic 3rd-quarter net profit falls

(Reuters) - Third-quarter net income was $20.6 million, compared with
$23.8 million a year earlier. On a per-share basis, earnings
rose to 31 cents from 27 cents as Sonic had lesser number of
outstanding shares for the quarter ended May 31, 2007.




Sonic, which operates more than 3,200 drive-ins in the
United States and Mexico, said revenue rose 13 percent to
$209.9 million.


Read more at Reuters.com Market News

JPMorgan unwinds Bear hedge fund positions

(Reuters) - JPMorgan Chase declined to comment. Bear Stearns was not immediately available to comment.




Read more at Reuters.com Bonds News

Moody's, S&P may cut Nuveen on leveraged buyout

(Reuters) - Moody's said a multi-notch downgrade is possible and the
debt cold be cut into junk territory. Moody's currently rates
Nuveen's senior debt "Baa1," the third lowest investment-grade
rating.




"While precise terms are unclear at this time, there are
reasonable indications that the company will be incurring a
material increase in debt," Moody's said in a statement.


Read more at Reuters.com Bonds News

Loan terms weaken as credit quality sinks -Fitch

(Reuters) - "The balance of power in the U.S. leveraged loan market
continued to shift from creditor to borrower as protective
covenant packages declined further during the first five months
of 2007," Fitch said.




Leveraged loans, those from borrowers rated below
investment-grade, totaled $217 billion in the first quarter, up
65 percent from a year earlier, Fitch said.


Read more at Reuters.com Bonds News

Fitch raises Reynolds debt on lower litigation risk

(Reuters) - A stable outlook indicated an additional ratings change is
not expected over the next one to two years.




The New York Court of Appeals earlier this month ruled that
tobacco companies that are part of the 1998 agreement that
settled tobacco litigation with most states, including
Reynolds, can go to arbitration to try to reduce their
settlement payments, according to a court document.


Read more at Reuters.com Bonds News

Ex-Enron CFO to pay $300,000 to settle SEC charges

(Reuters) - The SEC said McMahon participated in a fraudulent
transaction involving the purported sale of an interest in
Nigerian power generating barges to Merrill Lynch and Co. Inc.
that allowed Enron to improperly report $12 million in
earnings in the fourth quarter of 1999.




Read more at Reuters.com Government Filings News

Paulson Will Be `More Creative' in Pressing China on Currency Flexibility

(Bloomberg) -- U.S. Treasury Secretary Henry Paulson
said he will look for ways to be ``more creative'' in pressing
China to increase flexibility in its currency.

Paulson also told U.S. lawmakers he will press the
International Monetary Fund to be ``rigorous'' in monitoring
exchange rates, including day-to-day surveillance by staff. He
made the remarks in testimony on the international financial
system to the House Financial Services Committee.


Read more at Bloomberg Currencies News

US bond manager sentiment improves in week-survey

(Reuters) - These investors surveyed on Tuesday said they added U.S.
government and agency securities, as benchmark 10-year Treasury
yield jumped to a five-year high last week,
according to Stone & McCarthy Research.




The Treasuries market staged a mini-rally that ended on
Wednesday on renewed fears about the subprime mortgage problems
and anemic economic growth due to a sluggish housing sector.


Read more at Reuters.com Bonds News

Wyeth says court rules in favor of plaintiff in diet drug case

(Reuters) - It is reviewing its post-trial options, Wyeth added.





Read more at Reuters.com Government Filings News

Bear Stearns's Rescue of Hedge Funds Is Jeopardized by Merrill Bond Sale

(Bloomberg) -- Bear Stearns Cos.'s attempt to rescue
its money-losing hedge funds may falter after creditor Merrill
Lynch & Co. decided to seize and sell $800 million of bonds held
as collateral for loans to the funds.

Merrill Lynch distributed a list of the securities to
investors late yesterday, according to people with knowledge of
the offering. New York-based Merrill Lynch postponed a smaller
auction two days ago while Bear Stearns worked on a plan to bail
out the hedge funds.


Read more at Bloomberg Bonds News

US STOCKS-Indexes dip as energy stocks fall on crude

(Reuters) - NEW YORK, June 20 - U.S. stocks were trading
lower on Wednesday, nudged downward by heavily-weighted energy
shares which fell in-line with crude oil futures.




Exxon Mobil Corp. and Chevron Corp. were
the biggest drags on the S&P500 after weekly government data
showed a larger-than-expected build in crude supplies, which
sent crude futures down over 2 percent to $67.60 a
barrel on the New York Mercantile Exchange.


Read more at Reuters.com Market News

Crude Oil Falls More Than $1 on Report of Surging U.S. Gasoline Stockpiles

(Bloomberg) -- Crude oil fell more than $1 a barrel
from a nine-month high after an Energy Department report showed
that U.S. oil and gasoline stockpiles increased.

Crude-oil inventories surged 6.9 million barrels to 349.3
million in the week ended June 15, the report showed. It was the
biggest one-week gain since the week ended March 19, 2004.
Gasoline supplies rose 1.79 million barrels to 203.3 million.
Prices gained the past two days on concern Nigerian shipments
would be disrupted further because of a general strike.


Read more at Bloomberg Commodities News

European Emission Permits Rise on Norwegian Demand; French Power Gains

(Bloomberg) -- European Union emission permits rose
from their lowest in a month on speculation demand from Norway
will raise prices across the region. French power gained.

Permits for delivery in December 2008 rose 65 cents, or 3.1
percent, to close at 21.84 euros ($29) a metric ton on the
European Climate Exchange in Amsterdam. They sank as low as
20.60 euros yesterday, the lowest price for the benchmark
permits since May 15.


Read more at Bloomberg Energy News

AIRSHOW-Textron's Cessna books $1 bln NetJets order

(Reuters) - The boom in business jet sales is not yet over, Cessna's chief executive said on Wednesday at the Paris Air Show, where the company unveiled the NetJets order.




"They called it too early," said Cessna CEO Jack Pelton, describing industry comments last year that the business jet boom would peak in 2006. Cessna was still seeing "very strong order intake," he added.


Read more at Reuters.com Business News

European stocks end up on insurers, DAX hits record

(Reuters) - European shares ended higher on Wednesday as merger and acquisition talk surrounding insurers and banks helped markets pare losses struck in the past two sessions and Germany's 30 share DAX hit a record close.

Allianz rose for the fifth day in a row, with the day's 2 percent gain stoked by a report in a German stock market newsletter that Deutsche Bank was in talks to buy the retail operations of the insurer's Dresdner Bank unit.


Read more at Reuters Africa

U.K. Mining Stocks Gain, Led by Shares of Vedanta; Tesco, Retailers Fall

(Bloomberg) -- U.K. mining stocks climbed, led by
Vedanta Resources Plc and BHP Billiton Ltd., after copper rallied
on concern strikes in South America will disrupt production.

Tesco Plc and William Morrison Supermarkets Plc led retailers
lower after minutes showed the Bank of England voted five to four
to keep interest rates unchanged. British Airways Plc rose after
Standard & Poor's lifted its credit rating for the airline. Man
Group Plc gained after assets for its AHL fund increased.


Read more at Bloomberg Stocks News

Most U.S. Stocks Drop After Bond Yields Gain; Citigroup, JPMorgan Decline

(Bloomberg) -- Most U.S. stocks fell after 10-year
Treasury bond yields rose for the first time in four days,
reviving concern higher borrowing costs will curb growth.

Citigroup Inc., JPMorgan Chase & Co. and Wells Fargo & Co.
led declines in companies that benefit from low interest rates.
All 32 energy companies in the Standard & Poor's 500 Index
retreated after the price of oil slid from a nine-month high.


Read more at Bloomberg Stocks News

Crude Oil Falls From Nine-Month High After Report of U.S. Inventory Gains

(Bloomberg) -- Crude oil fell more than $1 a barrel
from a nine-month high after an Energy Department report showed
that U.S. oil and gasoline stockpiles increased.

Crude-oil inventories surged 6.9 million barrels to 349.3
million in the week ended June 15, the report showed. It was the
biggest one-week gain since the week ended March 19, 2004.
Gasoline supplies rose 1.79 million barrels to 203.3 million.
Prices gained the past two days on concern Nigerian shipments
would be disrupted further because of a general strike.


Read more at Bloomberg Energy News

UPDATE 2-Morgan Stanley profit rises, beats estimates

(Reuters) - NEW YORK, June 20 - Morgan Stanley on
Wednesday said its second-quarter profit rose 40 percent,
trouncing expectations as most of its trading and
investment-banking businesses achieved record results.




The blowout results come a week after Lehman Brothers'
strong earnings fueled optimism that Wall Street would
escape any harm from rising subprime mortgage losses. But
expectations were dampened after Goldman Sachs' and Bear
Stearns' fixed-income trading profits took hits.


Read more at Reuters.com Bonds News

US STOCKS-Indexes slip as rising yields spur rate worry

(Reuters) - NEW YORK, June 20 - U.S. stocks slipped on
Wednesday as a rise in benchmark Treasury bond yields rekindled
concern that higher interest rates would cut into corporate
profits.




Worries about higher interest rates overshadowed news of
Home Depot Inc.'s plan for a $22.5 billion share buyback
and a report of a stronger-than-expected profit at Morgan
Stanley .


Read more at Reuters.com Market News

British Airways Credit-Default Swaps Fall to Record Low on Ratings Upgrade

(Bloomberg) -- British Airways Plc credit-default
swaps fell to a record low after Standard & Poor's lifted its
debt ratings on Europe's third-largest airline to investment
grade for the first time in four years.

Contracts based on 10 million euros ($13 million) of
British Airways debt fell 18,000 euros to 59,500 euros,
according to Deutsche Bank AG. It was the biggest one-day drop
in more than four years for the contracts, which are used to
speculate on a company's ability to repay debts. A decline
indicates improved perceptions of credit quality.


Read more at Bloomberg Bonds News

TREASURIES-Bond prices slip in line with euro zone debt

(Reuters) - The benchmark 10-year note's price slipped 5/32 for a yield
of 5.11 percent , compared with 5.09 percent late on
Tuesday. Bond yields and prices move inversely.




Read more at Reuters.com Bonds News

CarMax, Colgate-Palmolive, MGM Mirage, PetroChina: 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 9:30 a.m. New York time.

Brush Engineered Materials Inc. (BW US) declined $7.47, or
15 percent, to $43.20. The maker of metals used in electronics
lowered its forecast and now expects 2007 earnings to be $2 to
$2.55 a share, down from its earlier estimate of $2.20 to $2.75 a
share. Brush also said it expects second-quarter earnings to be
on the ``low end'' of a previously announced 50- to 65-cents-a-
share estimate.


Read more at Bloomberg Stocks News

Emission Permits Increase on Likely Demand From Norway; Power Also Gains

(Bloomberg) -- European Union emission permits rose
from their lowest in a month on speculation demand from Norway
will boost prices across the bloc, according to an analyst at the
investment-banking unit of Dresdner Bank AG. French power gained.

Permits for delivery in December 2008 rose 56 cents, or 2.6
percent, to 21.75 euros ($29) a metric ton on the European
Climate Exchange in Amsterdam at 1:52 p.m. local time. They sank
as low as 20.60 euros yesterday, the lowest price for the
benchmark permits since May 15.


Read more at Bloomberg Energy News

Canadian Stocks May Fall as Oil Prices Decline; Canadian Natural May Drop

(Bloomberg) -- Canadian stocks may fall for a second
day, led by energy producers including Canadian Natural Resources
Ltd., after crude oil prices slipped from a nine-month high and
Merrill Lynch & Co. downgraded the natural-gas company's stock.

Losses in the market may be limited as raw-materials producers
gain on speculation there will be more takeovers in the industry,
after a report that Alcan Inc. opened its books to potential
bidders. Copper prices rebounded from a drop yesterday and may also
support resource stocks.


Read more at Bloomberg Stocks News

Zimbabwe business pessimistic about recovery - survey

(Reuters) - Fewer than 5 percent of Zimbabwe's industrialists believe the country will recover from its deepening economic crisis in the next three years, a survey showed on Wednesday.

The southern African country is in its eighth successive year of recession, marked by the world's highest inflation rate at above 3,700 percent and which has left four in five people without jobs and people struggling to feed their families.


Read more at Reuters Africa

UPDATE 1-Infineon CEO sees no Qimonda stake cut till Aug 9

(Reuters) - When asked on Wednesday whether the time was right to start
reducing Infineon's stake, Wolfgang Ziebart said: "No."




"At the moment we have a phase until the first year is over
during which we could only sell with a complete SEC filing,
which means this wouldn't be a convenient time to sell," Ziebart
said on the fringes of a corporate conference.


Read more at Reuters.com Mergers News

Brown Shoe, FedEx, Home Depot, MGM Mirage, Nuveen: U.S. Equity Preview

(Bloomberg) -- The following is a list of companies
whose shares may have unusual price changes in U.S. exchanges
today. This preview includes news that broke after exchanges
closed yesterday. Stock symbols are in parentheses after company
names. Share prices are as of 8:10 a.m. New York time.

Brown Shoe Company Inc. (BWS US): The owner of the Famous
Footwear retail chain plans to open more than 500 stores in China
by 2012 through a joint venture with Hongguo International
Holdings Ltd. Shares of Brown Shoe gained 13 cents to $26.16 in
regular trading yesterday.


Read more at Bloomberg Stocks News

GLOBAL MARKETS-World stocks rally on hunt for risk, yen soft

(Reuters) - In the absence of market moving U.S. data on Wednesday,
investors will focus on speeches by Federal Reserve officials
and movements in oil prices -- which fell from this week's
10-month high -- for their impact on risk appetite.




Soft U.S. data over the past week has erased expectations
for a growth-dampening U.S. interest rate hike, which was
triggered by a jump in bond yields earlier this month.


Read more at Reuters.com Bonds News

US STOCKS-Futures rise on Home Depot, earnings in focus

(Reuters) - Shares of Home Depot, a component of the Dow Jones
industrial average were up 5.2 percent in Europe.




The home improvement chain announced its share repurchase
plan late on Tuesday, when it also said its board had approved
a $10.3 billion sale for its supply unit. For details, see
[ID:nN19471168].


Read more at Reuters.com Bonds News

UPDATE 1-US mortgage applications drop, housing mired in slump

(Reuters) - The Mortgage Bankers Association's mortgage application
index slid 3.4 percent to a seasonally adjusted 643.7 in the
week ended June 15.




The drop in applications piled on to reports from the
country's builders and the government this week suggesting any
sustained housing rebound could be next year's business.


Read more at Reuters.com Economic News

European Bonds Advance as Producer Price Inflation Slows in Germany

(Bloomberg) -- European government bonds gained for
a second day after a report showed producer-price inflation in
Germany, Europe's biggest economy, held near the lowest in almost
three years in May.

Benchmark debt was also buoyed by a rally in Treasuries
after reports this week showed U.S. house construction declined
for the first time in four months, and confidence among
homebuilders dropped to the lowest since 1991. Ten-year bunds had
their biggest gain in almost two months yesterday as a report
showed German investor sentiment unexpectedly worsened.


Read more at Bloomberg Bonds News

Copper Rises in London as Strike Threat Looms; Lead Advances to Record

(Bloomberg) -- Copper rose in London as stockpiles
fell and on speculation that strikes will disrupt production at
operations in Peru and Chile that account for at least 5 percent
of global supply. Lead jumped to a record and nickel climbed.

Workers at Codelco, the biggest copper company, Chile's
Collahuasi mine and Southern Copper Corp.'s Peruvian operations
have threatened to strike over pay demands. Inventories tracked
by the London Metal Exchange fell for the 23rd consecutive day,
the exchange said today in a daily report.


Read more at Bloomberg Commodities News

Mexican Congress to Consider Calderon's Proposal to Boost Tax Collections

(Bloomberg) -- Mexico's Congress will begin
consideration today of tax legislation proposed by President
Felipe Calderon to boost revenue collection and reduce the
government's dependence on oil.

The legislation, released last night in Mexico City and
scheduled for a first hearing today by a committee that meets
when Congress is adjourned, calls for a flat tax and limits on
tax deductions. It also proposes a 2 percent levy on cash
deposits of more than 20,000 pesos monthly ($1,863) to fight
evasion by small businesses and individuals.


Read more at Bloomberg Emerging Markets News

Rhodia unit boosts auto emissions control presence

(Reuters) - Aluminas are an important component in automotive catalytic
converters, and complement Rhodia's Rare Earth product range for
the fast-growing market for automotive emission control systems,
Rhodia said.




"This acquisition illustrates our strategy of profitable
growth and development of businesses in which we enjoy solid
leadership positions," Chief Executive Jean-Pierre Clamadieu
said in a statement.


Read more at Reuters.com Mergers News

PetroChina May Raise $6 Billion in Shanghai Share Sale to Fund Expansion

(Bloomberg) -- PetroChina Co. is planning the
nation's biggest share sale this year to raise as much as $6
billion in Shanghai for overseas acquisitions, increased oil
drilling and refinery construction.

The stock rose 5 percent in Hong Kong on expectations the
revenue will help develop the nation's largest oil find in almost
50 years. Beijing-based PetroChina, which said today it plans to
offer a maximum of 4 billion shares, overtook Royal Dutch Shell
Plc as the world's second-largest oil company by market value.


Read more at Bloomberg Energy News

Banks lift FTSE as global stocks advance

(Reuters) - The UK's leading share index jumped 0.4 percent on Wednesday, tracking gains in Asian and U.S. equities which took heart as a dip in U.S. Treasury bond yields eased global interest rate concerns.

Financial stocks, which put on a good show on Wall Street, extended gains in Europe.


Read more at Reuters Africa

UPDATE 2-H&M Q2 pretax, May sales lag despite pop divas

(Reuters) - STOCKHOLM, June 20 - Swedish fashion giant Hennes
& Mauritz second-quarter profits and May sales fell
short of expectations on Wednesday, despite high-profile
campaigns featuring pop icons Madonna and Kylie Minogue.




H&M reported pretax profit of 5.1 billion Swedish crowns
in the second quarter which ended in May,
against analysts' average forecast of 5.3 billion in a Reuters
poll and 3.9 billion in the same quarter last year.


Read more at Reuters.com Market News