UPDATE 2-Jones Apparel agrees to sell Barneys for $825 mln

(Reuters) - Under the agreement with Istithmar, Jones Apparel can weigh
other offers made for Barneys by July 22, and it can explore
bids for the whole company through August 11.




Jones Apparel, which owns clothing, shoes and accessories
brands such as Nine West, Gloria Vanderbilt and Jones New York,
put itself up for sale last year, but failed to find a buyer.


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Brazilian Real Posts Its Biggest Decline Since February Amid Risk Aversion

(Bloomberg) -- Brazil's currency fell the most since
February on concern losses U.S. hedge funds losses may prompt
investors to avoid riskier emerging-market securities.

``It's definitely a factor that's causing stress in emerging
markets and is leading to a correction here in Brazil,'' said
Reginaldo Galhardo, manager of the foreign-exchange trading desk
at Gradual Corretora in Sao Paulo.


Read more at Bloomberg Currencies News

U.S. Xpress Enterprises management makes $20/shr tender offer

(Reuters) - U.S. Xpress officials could not be contacted for comment.





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Democrats challenge private equity pay

(Reuters) - Throwing down a challenge to some of the nation's savviest and richest financiers, the bill would set a higher tax rate for "carried interest." That is the 20-percent cut of profits beyond targeted returns typically kept by senior managers of private equity firms and other firms on major transactions.




The bill, introduced with the backing of two senior Democratic committee chairmen, ratcheted up a confrontation between Congress and the booming private equity sector, a driving force behind a global surge in corporate buyouts.


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Coke may be eyeing Cadbury's Snapple-report

(Reuters) - Citing several Coke executives, Beverage Digest reported that "Coke might be interested -- or in words of some, should be interested -- in buying Snapple to beef up its tea business."



Snapple, which sells flavored teas, lemonades and juice drinks, was the third-largest bottled tea brand in the first quarter, ahead of Coke's entire tea portfolio, which includes Nestea, Gold Peak and recently acquired Fuze, according to Beverage Digest data.


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US CREDIT-Peltz Kraft interest not deathly for spreads

(Reuters) - Peltz's Trian Fund Management LP has acquired a 3 percent
stake in Kraft and wants the company to jettison unsuccessful
brands and find better uses for its cash, a source familiar
with the situation said on Thursday. For details, see
[ID:nN21400640]




Kraft, the maker of Oreo cookies, Jell-O and Oscar Mayer
hot dogs, declined to comment. Trian could not be immediately
reached for comment.


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GM, Delphi deal with UAW expected Friday: source

(Reuters) - The person involved in the negotiations attended that meeting and said an announcement would come Friday.




A tentative deal between GM, Delphi and the UAW would clear a major hurdle for the parts supplier to emerge from bankruptcy and remove a major operational risk for GM.


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Boston Scientific seen pursuing divestitures

(Reuters) - They also forecast that Boston Scientific, which recently
hired a new chief financial officer, Sam Leno, is poised to
announce big job cuts in the second half of this year as sales
in its key stent business wane.




"I think accelerates the whole process. He is
focused on operating margins, which are very depressed right
now," said Jeff Jonas, a portfolio manager at Gamco Medical
Opportunities Fund.


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Sugar Rises to Two-Month High as Brazil Increases Use of Cane for Fuel

(Bloomberg) -- Sugar in New York rose to the
highest since April, capping the biggest weekly gain in a month,
as Brazil, the largest sugar-cane grower, uses more of the plant
to make ethanol.

Brazil used 57 percent of the cane harvested in the main
center-south growing region to produce ethanol and 43 percent to
make sugar in the first five months of the year, Reuters
reported, citing an industry association. The country will
harvest 528 million metric tons of sugar cane through November,
up 11 percent from a year earlier, the government said May 31.


Read more at Bloomberg Commodities News

Canada's Harper says telecoms merger not political

(Reuters) - "The government is going to be very loathe to substitute
political judgment on a matter that we think should be settled
at arm's length from the government," he said.




Read more at Reuters.com Government Filings News

Bear Stearns CFO says is overcollateralized on loan

(Reuters) - Bear Stearns is still trying to restructure the Bear Stearns High Grade Structured Credit Enhanced Leveraged Fund, and that could take several months, said Bear Chief Financial Officer Sam Molinaro.




But so far, all parties that have threatened to sell assets seized from the fund have not done so, Molinaro said. There are not additional Bear Stearns managed funds with similar market exposure, he added.


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DealTalk: Success of Blackstone IPO spurs rivals into action

(Reuters) - That caution quickly changed in recent days, when demand for Blackstone's initial public offering soared, with bankers and investors saying the IPO was six to seven times oversubscribed.




The heavy demand convinced firms such as Kohlberg Kravis Roberts & Co. and TPG Capital that the prospect of a higher tax burden was not enough to sap demand.


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UPDATE 2-Blackstone up 15 percent in NYSE debut

(Reuters) - NEW YORK, June 22 - Blackstone Group LP units
rose 15 percent in their first day of trading on Friday, as the
first major U.S. private-equity firm went public and minted
billions of dollars of new wealth for its founders.




The highly anticipated issue shot up as much as 23 percent to
$38.00 in early trade on the New York Stock Exchange. But the
units then fell from the high and dipped below the opening price,
indicating some investors sold on concerns of higher U.S. taxes or
worries whether the ideal conditions of recent years would
persist.


Read more at Reuters.com Bonds News

UPDATE 2-IMF says US soft landing scenario likely amid risks

(Reuters) - WASHINGTON, June 22 - The U.S. economy is likely
to rebound amid ebbing inflation as consumer and business
spending overcome the drag from a stumbling housing market, the
International Monetary Fund said on Friday.




"The most likely scenario is a soft landing as growth
recovers and inflation falls," the IMF said in a statement
summarizing staff views after a review of the U.S. economy.


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Brazil orders arrest of controllers over air chaos

(Reuters) - A work slowdown by controllers, most of them air force
officers, caused long flight delays and cancellations on Friday
for the fourth consecutive day. The controllers are demanding
higher pay, modern equipment and a lighter work load.




Angry passengers, many of whom slept on overcrowded airport
floors, have stormed airline counters and scuffled with company
officials in recent days.


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UAW leaders say strike an option in national talks

(Reuters) - The union begins contract talks with General Motors Corp. , Ford Motor Co. and Chrysler Group, which DaimlerChrysler AG AG is selling this summer.




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Lear delays vote on Icahn takeover

(Reuters) - Lear shareholders had been scheduled to vote on the nearly $2.9 billion offer from Icahn's American Real Estate Partners on June 27.




The move is aimed at giving Lear time to set the record straight with investors after criticism of the deal this week, including a negative report from proxy advisory firms including Institutional Shareholders Services and comments by money manager Pzena Investment Management, Lear said.


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Chile's Peso Falls as Hedge Fund Drop Reduces Emerging-Market Money Flows

(Bloomberg) -- Chile's peso declined as investors
sought refuge from Bear Stearns Cos. hedge fund losses,
curtailing money flows to emerging markets.

``With all this noise about the Bear Stearns fund falling
apart, there is a flight-to-quality move,'' said David Oyarce, a
trader in Santiago at HSBC Bank Chile.


Read more at Bloomberg Currencies News

Platinum, Palladium Rise as Falling U.S. Dollar Boosts Investment Appeal

(Bloomberg) -- Platinum and palladium rose in New
York along with other precious metals as a decline in the U.S.
dollar boosted their appeal as alternative investments.

The dollar fell to a two-week low against the euro after
European Central Bank President Jean-Claude Trichet suggested he
may extend interest-rate increases. Platinum, mostly traded in
dollars, has risen 14 percent this year as the dollar dropped
1.5 percent against a basket of six major world currencies,
including the euro.


Read more at Bloomberg Commodities News

Blackstone jumps over 20 percent in debut

(Reuters) - The $4.13 billion offering, closely watched by Wall Street to Washington, was the largest U.S. IPO in five years and the sixth-biggest ever. People familiar with the offering said Blackstone shares were about seven times oversubscribed, indicating strong demand.




The IPO broke new ground for an industry that has become a driving force in global finance by pursuing ever-larger takeovers and raising record amounts of capital.


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Mexico stocks flat, peso off as cenbank holds rate

(Reuters) - Mexico's central bank warned that it was still concerned about
medium-term inflation expectations being above target.




Gains in market leader America Movil , whose stock
rose 0.79 percent to 34.60 pesos, were countered by a decline in
Wal-Mart de Mexico , down 1.37 percent at 42.40
pesos.


Read more at Reuters.com Bonds News

Treasury Yield Curve Reaches Steepest Since 2005 as Investors Seek Safety

(Bloomberg) -- The difference in Treasury 10-year
and two-year note yields widened to the most since October 2005
as investors sought a haven from hedge fund losses.

Two-year notes were poised for their first weekly gain
since April, while 10-year notes were down for a seventh week,
widening the yield advantage of the longer-term debt to 21 basis
points. Investors bought two-year notes as creditors moved to
liquidate assets from two Bear Stearns Cos. hedge funds.


Read more at Bloomberg Bonds News

UPDATE 1-Freddie Mac's portfolio grows 3.8 pct in May

(Reuters) - For the year to date, the portfolio has expanded by 2.6
percent after falling by 0.9 percent in 2006 to end the year at
about $704 billion.




The company is growing within the constraints of a
voluntary agreement with its regulator, the Office of Federal
Housing Enterprise Oversight, to limit the expansion of its
mortgage holdings while emerging from an accounting crisis.


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Lear affirms support for Icahn buyout, delays vote

(Reuters) - Other large shareholders, including Pzena Investment Management, also have opposed the offer as too low for Lear, which produces automotive seating and electronics.




Read more at Reuters.com Business News

Prices flat, rate and fund worries linger

(Reuters) - Given the lack of major economic reports, Treasuries will likely take directions from stocks, oil and overseas debt, analysts said.




Bond prices retreated from overseas gains tied to stronger Bunds in reaction to a surprising weak reading of German business confidence in June.


Read more at Reuters.com Hot Stocks News

Eaton to sell mirror controls division for $111 mln

(Reuters) - The division, part of Eaton's automotive group, makes mirror actuators and power-fold actuators for exterior automotive mirror systems, and had sales of about $135 million in 2006, the diversified manufacturer said in a statement.






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Canadian Dollar Volatility Surges as Investors Buy Protection Amid Surge

(Bloomberg) -- Volatility on options for the
Canadian dollar is at the highest since January as investors use
the derivatives to protect against the greater-than-anticipated
rally against the U.S. currency.

Futures traders, who speculate on currencies, now hold
record bets Canada's currency will strengthen, a reversal from
record so-called net shorts in January, according to figures from
the Washington-based Commodity Futures Trading Commission.


Read more at Bloomberg Currencies News

Copper May Fall in London on China Concern; Nickel Heads for Weekly Drop

(Bloomberg) -- Copper may fall in London on
speculation demand growth in China, the metal's largest user,
will slow after the nation bought more than it needed earlier
this year. Nickel headed for a third straight weekly drop.

Purchases of refined copper and alloy dropped to 121,383
metric tons last month, from 192,069 tons in April, according to
revised figures issued by the Beijing-based customs office
today. The drop, 5 percentage points more than preliminary data
reported on June 15, was the biggest since October.


Read more at Bloomberg Commodities News

S.African union declares dispute against De Beers

(Reuters) - South Africa's National Union of Mineworkers (NUM) said on Friday it had declared a dispute against the local unit of the world's biggest diamond producer De Beers.

The NUM, South Africa's biggest mining union, declared the dispute, the first legal step towards a strike, after wage talks deadlocked on Thursday, spokesman Lesiba Seshoka said.


Read more at Reuters Africa

Crude Oil Falls Amid Speculation Nigerian Strike Won't Disrupt Its Exports

(Bloomberg) -- Crude oil fell as some analysts and
traders speculated a strike in Nigeria would fail to affect exports
from Africa's largest producer.

Oil workers left Nigeria's export terminals yesterday as part
of a general strike protesting an increase in domestic fuel prices
and taxes. Oil traders and analysts doubt the strike has further
disrupted supplies from Nigeria. About a third of the nation's
output was already halted by political and criminal violence.


Read more at Bloomberg Energy News

Rand slightly firmer, looks to inflation data

(Reuters) - The rand opened slightly firmer versus the dollar and market players said it will likely be rangebound on Friday though next week's inflation data will give some direction.

At 0638 GMT the rand stood at 7.1350 to the dollar, about 0.25 percent firmer than its New York close of 7.1550 on Thursday.


Read more at Reuters Africa

Nigeria Strike Continues After Government, Unions Fail to Reach Agreement

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

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


Read more at Bloomberg Emerging Markets News

South Korea Stocks Drop, Snapping Record of 15 Weekly Advances; Banks Fall

(Bloomberg) -- South Korean stocks fell, rounding
off their first losing week since March. Korea Exchange Bank slid
after controlling shareholder Lone Star Funds sold a 13.6 percent
stake, heightening uncertainty about the sale of the lender.

Kookmin Bank, which had planned to buy Korea Exchange before
Lone Star shelved the deal last year, also slid.


Read more at Bloomberg Stocks News

Lone Star to sell S.Korea Kukdong Eng for $712 mln

(Reuters) - The deal is the second divestment of South Korean assets held
by Lone Star on Friday, following the $1.28 billion sale of a
13.6 percent stake in Korea Exchange Bank in an
overnight block trade.





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