JGBs fall on weak Treasuries, Nikkei surge

(Reuters) - Super-long maturities were weighed down by concerns about
auctions later in the month, while investors wary of the sharp
rebound in stocks unwound their holdings of medium-term JGBs.




Comments by Bank of Japan Governor Toshihiko Fukui the
previous day that were seen as signalling a rate hike as early as
August also kept buyers on the sidelines, traders said.


Read more at Reuters.com Bonds News

U.K. Pound May Decline on Signs Pace of House-Price Inflation Is Slowing

(Bloomberg) -- The pound may decline for a second
day on evidence house-price growth in the U.K. is slowing,
fueling speculation higher borrowing costs are starting to cool
the property-market boom.

The U.K. currency slipped from its highest since June 1981
after a report yesterday showed property values in Britain rose
at the slowest rate since January 2006 last month. Interest-rate
futures trading shows traders have scaled back bets the Bank of
England will raise interest rates to 6.25 percent this year.


Read more at Bloomberg Currencies News

Yen Trades Near Record Low Against Euro as Stock Rally Fuels Risk Appetite

(Bloomberg) -- The yen traded near a record low
against the euro as a surge in global stocks encouraged investors
to borrow the currency to buy higher-yielding assets.

The Japanese yen headed for a second weekly drop as the
Nikkei 225 Stock Average rose by the most since May, following a
rally in the Dow Jones Industrial Average yesterday. The currency
also declined against the Australian dollar, a favorite for so-
called carry trades because of its 6.25 percent benchmark rate.


Read more at Bloomberg Currencies News

GM plans diesel passenger cars in US by 2010-paper

(Reuters) - In a video blog on the company's website dated Thursday, GM
Vice Chairman Bob Lutz confirmed the top U.S. automaker would
use clean diesel engines in passenger cars, sport utility
vehicles and other light-duty trucks.




He stressed, however, that emissions hardware and control
systems needed to meet the standards would add another $2,000 to
$2,800 to the $1,000-$2,000 premium that already exists for
diesels over gasoline-engine cars.


Read more at Reuters.com Government Filings News

U.S. Retail Sales Probably Fell in June, Led by Drop in Automobile Demand

(Bloomberg) -- Retail sales in the U.S. probably
fell last month following the biggest gain in more than a year,
restrained by a drop in demand for automobiles and home
supplies, economists said before a government report today.

Sales declined 0.1 percent after a 1.4 percent gain the
prior month, according to the median estimate in a Bloomberg
News survey of 75 economists. Purchases excluding automobiles
probably increased 0.2 percent.


Read more at Bloomberg Currencies News

TREASURIES-Extend losses in Asia after equities rally

(Reuters) - "There was pretty much movement, at least by the standards
we're used to seeing during Tokyo trading hours," said a senior
trader for a U.S. investment bank.




"The moves seemed to be aimed at triggering stop-loss
selling, but there have been some buy-backs since such offers
never emerged and because retail sales data are looming ahead,"
the trader said.


Read more at Reuters.com Bonds News

China to Lend $800 Million to Malaysia for Construction of Penang Bridge

(Bloomberg) -- Export-Import Bank of China plans to
lend $800 million to Malaysia for the construction of a west
coast bridge, in China's largest loan for an overseas project.

Malaysia's UEM Group Bhd., which is managing the building of
the 23-kilometer (14-mile) second Penang bridge, will sign a
contract with China Harbour Engineering Co. and UEM Construction
for the project, China Harbour said in a statement today given to
reporters in Kuala Lumpur.


Read more at Bloomberg Emerging Markets News

Neo-China Sells $400 Million of Bonds With Warrants After Increasing Yield

(Bloomberg) -- Neo-China Group (Holdings) Ltd., a
Hong Kong-based builder, raised $400 million selling bonds after
increasing the yield and attaching warrants to attract demand.

The company priced the bonds, maturing in seven years, to
yield 9.75 percent, or 4.7 percentage points more than U.S.
Treasuries of similar maturity, according to data compiled by
Bloomberg. The company had sought a yield of 9.5 percent on July
10.


Read more at Bloomberg Bonds News

U.S. Treasury Notes Decline; Stock Gains Signal Demand for Riskier Assets

(Bloomberg) -- U.S. Treasuries fell for a third day
as a global rally in stocks extended to Asia, suggesting waning
demand for the relative safety of government debt.

Treasury notes added to losses from yesterday, when the
Standard & Poor's 500 Index rose to a record and Federal Reserve
Bank of San Francisco President Janet Yellen said employment
growth is ``robust.'' The comment helped ease concern that
losses tied to bonds backed by subprime mortgages will dent
economic growth.


Read more at Bloomberg Bonds News

Google's Brin does not see Facebook up for sale

(Reuters) - "If they come to us, we'd certainly be open to talking," Brin said, answering a reporter's question at the 25th annual Allen & Co. media deal-makers conference in Sun Valley, Idaho. "But I think they're building a great company of their own."




Facebook membership has exploded in recent weeks to more than 29 million active members from 24 million in late May. By comparison, rival MySpace has attracted about 60 million unique users in the United States and about 90 million globally.


Read more at Reuters.com Mergers News

New Zealand's Dollar Surges After May Retail Sales Rise More Than Expected

(Bloomberg) -- New Zealand's dollar rose to near the
highest in 22 years after a government report showed retail sales
increased twice as fast as expected in May, prompting bets the
central bank will boost interest rates again.

Retail sales rose 1.2 percent from April, when they fell 1.2
percent, adding to evidence the central bank's three increases to
the benchmark rate this year have failed to curb consumer
spending. The currency has gained 28 percent in the past 12
months as the record 8 percent official cash rate lures investors
to the nation's higher-yielding fixed-income assets.


Read more at Bloomberg Currencies News

Samsung Elec prepares for hostile M&A bids-paper

(Reuters) - Possible defence measures include selling some of its shares
to friendly investors, the newspaper said.




A Samsung spokesman declined to comment on the report when
contacted by Reuters.


Read more at Reuters.com Mergers News

US senator's bill bolsters FCC indecency standard

(Reuters) - The bill introduced by Democratic Sen. John Rockefeller, of
West Virginia, would authorize the Federal Communications
Commission to take action in cases where the agency finds that
a single expletive was uttered fleetingly.




At issue is an FCC ruling in March 2006, in which the
agency concluded that News Corp.'s Fox television
network had violated decency rules when expletives were uttered
by singer Cher during the 2002 Billboard Music Awards broadcast
and actress Nicole Richie during the 2003 awards.


Read more at Reuters.com Government Filings News

UPDATE 1-First Bancorp to acquire Great Pee Dee

(Reuters) - Under the terms, Great Pee Dee shareholders will receive
1.15 First Bancorp shares for each share held, the companies
said in a joint statement.




Based on First Bancorp's Thursday closing price of $18.28,
the deal values Great Pee Dee at $21.02 per share. The offer
represents a premium of more than 35 percent to Great Pee Dee's
Thursday closing price of $15.50.


Read more at Reuters.com Mergers News

Broker watchdog to change its name

(Reuters) - The Securities Industry Regulatory Authority, or SIRA, was the name that had been announced to represent the combination of NASD and NYSE Regulation.




SIRA, which will be regulator for all securities brokers and dealers doing business with the public in the United States, is now considering the name Financial Industry Regulatory Authority, or FINRA.


Read more at Reuters.com Business News

Natural gas trader sues hedge fund Amaranth

(Reuters) - "When defendants' unlawful scheme of highly leveraged
trading collapsed in September 2006, the price of natural gas
and natural gas futures contracts traded on NYMEX experienced
an almost unprecedented drop," the complaint alleged.




"Defendants' manipulative trading caused traders of natural
gas futures contracts, including plaintiff, to suffer
substantial losses," it said.


Read more at Reuters.com Government Filings News

Teknion profit falls on slower growth, currency

(Reuters) - Toronto-based Teknion, which designs and makes workplace
furniture, chairs and storage systems, said industry growth has
moderated but it still expects year-over-year revenue growth in
the third quarter and for the full year.




Overall sales grew 1 percent in the second quarter to
C$165.7 million, it said.


Read more at Reuters.com Market News

Fitch may cut ratings on 19 CDOs, revises methodology

(Reuters) - Fitch said it has also revised its CDO rating methodology
and has identified 170 U.S. subprime tranactions as requiring
further analysis. Of those, the total amount of bonds rated in
the "BBB" category and below, the most likely to face rating
actions, is $7.1 billion.




Read more at Reuters.com Bonds News

UPDATE 1-Fed's Yellen: Policy on track, price risks linger

(Reuters) - ANCHORAGE, Alaska, July 12 - San Francisco
Federal Reserve President Janet Yellen said on Thursday that
current U.S. interest rate policy should promote a gradual drop
in inflation but risks remain skewed toward higher prices.




As a result, Yellen said, an "asymmetric policy tilt" is
appropriate for the Fed at the moment, along with "considerable
flexibility" in responding to incoming data.


Read more at Reuters.com Bonds News

TEXT-Moody's release on Bear Stearns deal

(Reuters) - The underlying pools in the transaction are below the overcollateralization
target as of the 6/25/2007 reporting date. Complete rating actions are as
follows: Issuer: Bear Stearns Asset Backed Securities I Trust Review for
possible downgrade: Series 2004-BO1; Class M-6, current rating Baa1, under
review for possible downgrade; Series 2004-BO1; Class M-7, current rating Baa2,
under review for possible downgrade; Series 2004-BO1; Class M-8, current rating
Baa3, under review for possible downgrade.




Read more at Reuters.com Bonds News

Canada names panel to review investment policy

(Reuters) - Two key laws -- the Competition Act and the Investment
Canada Act -- need updating, as trade agreements have opened up
markets and investing has become increasingly global, federal
officials said at a press conference.




The policies "have not been substantially changed in more
than two decades," Finance Minister Jim Flaherty said.


Read more at Reuters.com Government Filings News

U.S. posts $27.48 billion June budget surplus

(Reuters) - The June surplus, fueled by strong tax receipts, was 34 percent above the surplus of $20.52 billion recorded in a year earlier in June 2006, the Treasury said.




During the first nine months of fiscal 2007 that ends on September 30, the cumulative deficit has fallen by 41 percent to $120.97 billion from $206.48 billion in the comparable nine-month period in fiscal 2006.


Read more at Reuters.com Economic News

Lawyers eye raters, underwriters in subprime cases

(Reuters) - Litigation stemming from the collapse of the subprime mortgage market is expected to grow as more investors run for cover after suffering losses on bonds tied to mortgage-backed securities.




Plaintiffs' lawyers say they want to know more about the relationship between the credit rating services and investment banks that assembled complex debt structures known as collateralized debt obligations, or CDOs, tied to risky mortgages. Two leading rating services this week downgraded billions in subprime debt, but critics say they should have acted earlier.


Read more at Reuters.com Bonds News

Australian gov't agency calls Google ads deceptive

(Reuters) - The claims are the latest in a string of cases centered on
trademark rights that argue Google's pay-per-click advertising
system -- the company's mainstay revenue generator -- is used
by competitors to unfairly grab business from rivals.




The Australian Competition and Consumer Commission, or
ACCC, said in a statement on its Web site that it has filed a
case in the Federal Court in Sydney against auto dealer Trading
Post Australia Pty Ltd. and various Google subsidiaries.


Read more at Reuters.com Government Filings News

Mirant to Pay $11 Million Fine for Giving False Trade Data to Publications

(Bloomberg) -- Mirant Corp., a U.S. power producer,
will pay an $11 million fine for submitting false trade data to
industry publications in 2002 to bolster its natural-gas trading
positions, the U.S. Justice Department said.

Former traders at the Atlanta-based company's Mirant Energy
Trading unit provided false information about natural gas trades
to publications using the data to calculate price indexes on
which some sale contracts are based, the government said today in
a statement. The company won't be charged with a crime, under a
deferred-prosecution agreement with the government.


Read more at Bloomberg Energy News

Bush denies al Qaeda at pre-September 11 strength

(Reuters) - Bush spoke after media reports, citing a new intelligence assessment, said the militant network is now as great a threat to U.S. soil as in the months before the 2001 hijack-plane attacks.




"There is a perception in the coverage that al Qaeda may be as strong today as they were prior to September 11. That's just simply not the case," Bush told reporters.


Read more at Reuters.com Bonds News

Moody's Says Loans From Washington Mutual, GE Helped Prompt Downgrades

(Bloomberg) -- Units of Washington Mutual Inc. and
General Electric Co. were among four subprime lenders whose loans
helped prompt Moody's Investors Service to downgrade 399 mortgage
bonds, the ratings company said.

Washington Mutual's Long Beach Mortgage, GE's WMC Mortgage,
New Century Financial Corp. and Fremont General Corp. made loans
that backed about 60 percent of the $5 billion bonds that were
downgraded, Nicolas Weill, Moody's chief credit officer for asset
finance, said today on a conference call. Their loans accounted for
30 percent of subprime-mortgage bonds issued last year, Weill said.


Read more at Bloomberg Bonds News

Oil Climbs Above $73 as U.S. Inventories Decline, North Sea Output Drops

(Bloomberg) -- Crude oil rose above $73 a barrel to
a 10-month high in New York after a government report showed
that U.S. inventories dropped last week and Chevron Corp. said
it cut North Sea output.

Crude-oil stockpiles dropped 1.5 million barrels to 352.6
million barrels last week, according to the Energy Department.
In the North Sea, Chevron cut oil output at its Erskine field
because the Central Area Transmission System natural-gas
pipeline was forced to close, a company spokesman said today.


Read more at Bloomberg Commodities News

Personal Finance: Parachuting into retirement

(Reuters) - The greater challenge is figuring out what to do with your time and your life. Now, 35 years after "What Color Is Your Parachute?" became a best-seller by guiding readers through their "what-to-be-when-I-grow-up" decisions, author Richard Bolles has a sequel aimed at the pre-retired.




"What Color Is Your Parachute? For Retirement: Planning Now for the Life You Want" By Bolles and John E. Nelson deals with questions of how to find money and how to find meaning once you've actually quit that day job.


Read more at Reuters.com Business News

TJX same-store sales rose 5 pct in June

(Reuters) - Framingham, Massachusetts-based TJX, which operates the
T.J. Maxx and Marshalls chains, said its total sales for the
five weeks ended July 7 were $1.7 billion, up 9 percent from
the year-ago period.





Read more at Reuters.com Market News

Sallie Mae Share Decline is a `Buying Opportunity,' Says Thomas Weisel

(Bloomberg) -- A plunge in shares of SLM Corp.
yesterday has created a ``buying opportunity'' for investors as
the group planning to buy the largest U.S. student-loan provider
is unlikely to drop its offer because of congressional plans to
reduce subsidies for lenders, Thomas Weisel Partners Group said.

SLM, known as Sallie Mae, said yesterday it was warned by
buyers, led by private-equity firm J.C. Flowers & Co., that the
pending legislation ``could result in a failure'' to close the
purchase.


Read more at Bloomberg Stocks News

UPDATE 1-XTO Energy to sell $1.25 bln debt in 3 parts

(Reuters) - The sale is expected to include a minimum $300 million
five-year note issue, a minimum $300 million 10-year note issue
and a minimum $300 million 30-year bond issue.




Proceeds from the offering will be used to partially fund
XTO's $2.5 billion purchase of oil and natural gas properties
from Dominion Resources Inc. .


Read more at Reuters.com Mergers News

UPDATE 1-Canada new housing prices up by 1.1 pct in May

(Reuters) - Market operators had on average forecast that prices would
increase by 0.6 percent in May from April.




On a year-over-year basis new home prices rose by 8.6
percent, the slowest rate since the 8.2 percent recorded in
April 2006. That said, May marked the 14th consecutive
month of year-on-year increases above eight percent.


Read more at Reuters.com Economic News

Treasuries Little Changed on Evidence of Slump in U.S. Housing Industry

(Bloomberg) -- Treasuries were little changed on
additional evidence weakness in the housing market may curb
economic expansion.

The number of U.S. properties in foreclosure climbed 87
percent last month from a year earlier, according to RealtyTrac,
a seller of foreclosure data. Interest-rate swap trading
suggested investors remained concerned over higher borrowing
costs for companies.


Read more at Bloomberg Bonds News

Calpine reaches settlement with debtholder group

(Reuters) - The agreement is subject to approval by the U.S. Bankruptcy
Court for the Southern District of New York, said Calpine.





Read more at Reuters.com Bonds News

Uganda coffee output to rise 14 pct in 2007

(Reuters) - Uganda's coffee production is expected to increase by about 14 percent to at least 2.5 million 60 kg-bags in 2007 from 2.2 million previously, the coffee board said on Thursday.

The east African nation has seen coffee exports and earnings rise this year, as production recovered from a 2006 drought.


Read more at Reuters Africa

UPDATE 1-Limited same-store sales rise 3 pct in June

(Reuters) - Analysts, on average, expected a same-store sales gain of
3.1 percent, with estimates ranging between 1 percent and 4.5
percent, according to a Reuters survey.




Net sales for the company, which recently announced plans
to shed its apparel lines to concentrate on its Victoria's
Secret and Bath & Body Works chains, were $1.21 billion for the
five weeks ended July 7, up from $1.08 billion a year earlier.


Read more at Reuters.com Market News

UPDATE 1-AnnTaylor June same-store sales fall 8.4 pct

(Reuters) - Analysts, on average, expected the company to post a 4.8
percent decline in same-store sales, according to a Reuters
poll.




Total sales for the five weeks ended July 7 fell 1.4
percent to $232.4 million.


Read more at Reuters.com Market News

Canada Dollar Rises on Speculation Company Acquisitions to Boost Demand

(Bloomberg) -- The Canadian dollar rose for the
first time this week on speculation that acquisitions of
Canadian companies will increase demand for the currency.

Rio Tinto Group, the London-based miner, agreed to buy
Montreal-based Alcan Inc. for $38.1 billion to form the world's
biggest aluminum maker.


Read more at Bloomberg Currencies News

UPDATE 1-Pacific Sunwear June same-store sales rise 4.5 pct

(Reuters) - Analysts, on average, expected a 3.2 percent rise in the
company's June same-store sales, according to a poll by
Reuters.




The operator of PacSun, the largest mall-based chain of
surfing-inspired apparel stores said total sales rose 9.1
percent to $132.9 million for the five weeks ended July 7.


Read more at Reuters.com Market News

UPDATE 1-Nexen reports lower results, sees project delays

(Reuters) - Net earnings fell to C$368 million , or 68
Canadian cents a share, from C$408 million, or 76 Canadian
cents a share, a year earlier.




Analysts were expecting the company to earn an average of
60 Canadian cents a share according to Reuters Estimates.


Read more at Reuters.com Market News

UPDATE 1-Marriott earnings rise on higher room rates

(Reuters) - Marriott, which typically manages hotels instead of owning
them, said net income rose to $207 million, or 51 cents per
share, from $186 million, or 43 cents per share, a year
earlier.




On an adjusted basis, which excludes earnings from
Marriott's synthetic fuel business and charges from the
settlement of a tax dispute, the company earned 57 cents a
share.


Read more at Reuters.com Market News

Japan Small-Caps Rally as Tougher Post-Livedoor Standards Buoy Confidence

(Bloomberg) -- Shares of Japan's smallest listed
companies, Asia's worst performers last year, are staging a
comeback as tougher accounting standards revive confidence in
earnings reports and consumer spending rebounds.

The Russell/Nomura Small Cap Index, whose 1,332 members
have an average market value of $630 million, has outperformed
the Nikkei 225 Stock Average in six of the last seven weeks. The
measure trailed the Nikkei in all but two of the previous 17
months after executives of Internet provider Livedoor Co. were
arrested in January 2006 for fabricating profits, sparking
investor concern about the finances of second-tier companies.


Read more at Bloomberg Stocks News

UPDATE 1-SGL Carbon plans composites venture with Benteler

(Reuters) - "This promises new business for SGL," one trader said.




The new venture announced on Thursday will develop
structural components, bumpers and axles for the automotive
industry. Each partner will hold 50 percent of the venture, but
no other financial details were released.


Read more at Reuters.com Mergers News

Nokia seen gaining from Motorola woes

(Reuters) - Nokia was up 1.2 percent at 21.21 euros by 0827 GMT, against a DJ Stoxx technology index up just 0.2 percent.




"With Motorola losing market share in several regions -- Europe and Asia -- I think the biggest beneficiary is Nokia," FIM Securities analyst Jussi Hyoty said.


Read more at Reuters.com Business News

Copper Rises in Asia, Reversing Losses on Latin America Supply Concerns

(Bloomberg) -- Copper prices rose in Shanghai,
reversing earlier losses, on concern labor disputes at Latin
American mines may disrupt supplies at a time of falling global
inventories.

Codelco, the world's biggest copper producer, said yesterday
that protests by striking contract workers cut output for a third
straight day. Inventories tracked by the London Metal Exchange
fell for the 13th consecutive day to 98,625 tons today, the
lowest in almost a year, the exchange said.


Read more at Bloomberg Commodities News

Total Picked to Develop Gazprom's Shtokman Gas Field, Own 25 Percent Stake

(Bloomberg) -- OAO Gazprom, the world's largest
natural-gas producer, chose Total SA to help develop Shtokman, an
Arctic offshore field that may hold enough natural gas to supply
Europe for more than three years.

Paris-based Total will take 25 percent in an operating
company to develop the project, while the Russian company will
hold the rest, Gazprom Chief Executive Officer Alexei Miller said
in an e-mailed statement. Gazprom scrapped its original plan to
let foreign partners take an equity stake in the project in
October.


Read more at Bloomberg Energy News

Treasuries Rise on Speculation Subprime Defaults to Slow Economic Growth

(Bloomberg) -- U.S. Treasuries rose on speculation
losses on debt backed by subprime mortgages will exacerbate a
housing slowdown and curb economic growth.

The yield on benchmark 10-year notes fell 2 basis points to
5.07 percent as of 9:37 a.m. in London, according to bond broker
Cantor Fitzgerald LP. The price of the 4 1/2 percent security
due in May 2017 rose 5/32, or $1.56 per $1,000 face amount, to
95 10/16. A basis point is 0.01 percentage point.


Read more at Bloomberg Bonds News

JGBs trim losses after BOJ vote, rate view intact

(Reuters) - BOJ Governor Toshihiko Fukui, who spoke at a news conference
following the BOJ's decision to leave interest rates unchanged at
0.5 percent, shed no new light to significantly change market
expectations for a rate hike as early as August, traders said.




"The 8-1 vote left an impression that BOJ board members were
more cautious about a rate hike than previously thought, spurring
short-covering in bonds," said Takeo Okuhara, a bond strategist
at Daiwa Institute of Research.


Read more at Reuters.com Bonds News

Poles Snap Up Stock-Market `Promises,' Evoking Memories of Internet Bust

(Bloomberg) -- Piotr Skowron started his company six
weeks ago and already has one eye on the stock market.

``We have contracts in Poland and abroad, and we want to
sell shares,'' says Skowron, 45, whose biotechnology company
specializes in cloning genes. ``We want to get more capital and
be recognizable across the world.''


Read more at Bloomberg Exclusive News

Dollar Falls on Speculation Subprime Mortgage Defaults Will Slow Economy

(Bloomberg) -- The dollar fell against the yen and
approached a record low against the euro on speculation subprime
mortgage defaults will curb growth in the U.S. economy.

``The bias is leaning toward dollar selling,'' said Takeshi
Tokita, vice president of foreign exchange sales at Mizuho
Corporate Bank in Tokyo. ``Subprime loan defaults are a deep-
rooted problem. People in Europe entering the currency market
are likely to reduce risky bets on dollar gains.''


Read more at Bloomberg Currencies News

CEVA plans $1.4 bln bonds for EGL purchase -lead

(Reuters) - Credit Suisse, Goldman Sachs, Morgan Stanley, Bear Stearns,
UBS, JP Morgan and ABN AMRO are managing the sale.




Read more at Reuters.com Bonds News