Yen Falls to Record Low Against Euro on Differing Interest Rate Outlook

(Bloomberg) -- The yen fell to a record low against
the euro on speculation rising interest rates will increase the
appeal of European assets to Japanese investors.

The yen fell to a record low of 167.06 per euro at 7:08 a.m.
in London from 166.77 late yesterday in New York. Against the
dollar, it traded at 122.58 from 122.42.


Read more at Bloomberg Currencies News

Gold steady, Tokyo up but firmer yen caps gains

(Reuters) - Gold was steady on Tuesday after rising more than 1 percent the previous day on a weaker dollar and security concerns, while Tokyo futures rose to its highest in a week though a firmer yen curbed gains.

Trading was likely to be subdued ahead of the Independence Day holiday on Wednesday, when U.S. financial markets will be closed, players said.


Read more at Reuters Africa

Japan Shares Gain, Led by Honda, on U.S. Manufacturing Report; Sony Drops

(Bloomberg) -- Japanese stocks advanced, paced by
automakers such as Honda Motor Co., after manufacturing in the
U.S. unexpectedly climbed to a 14-month high, boosting
confidence Japan's largest export market will weather a weak
housing market.

JFE Holdings Inc. led declines by steel companies on
concern higher costs and overproduction will erode profits. The
Bank of Japan's quarterly Tankan survey that was released
yesterday showed sentiment among steelmakers slid to 38 points
from 46 at the last survey.


Read more at Bloomberg Stocks News

UPDATE 1-India's Patni says buys Europe's Logan-Orviss

(Reuters) - The deal included an upfront cash payment upon completion,
along with performance-linked incentive payments on achieving
financial targets spread over three years, Patni said in a
statement but gave no details.




Patni said the acquisition of Logan-Orviss, which reported
revenues of 11.8 million euros in 2006, would
strengthen Patni's presence in media and communications
business.


Read more at Reuters.com Mergers News

Gold Little Changed in Asia After Gaining on Dollar's Decline Against Euro

(Bloomberg) -- Gold was little changed in Asia after
gaining on the dollar's decline to near a record low against the
euro. Silver was unchanged.

Gold usually moves in the opposite direction to the dollar
as the U.S. currency's fall makes dollar-priced gold cheaper to
investors with other currencies. The precious metal was also
supported yesterday by oil's rise to a 10-month high.


Read more at Bloomberg Commodities News

U.S. Factory Orders Probably Dropped for First Time in Four Months in May

(Bloomberg) -- Orders placed with American factories
fell for the first time in four months in May, led by a drop in
bookings for aircraft and machinery, economists said before a
government report today.

The Commerce Department will report bookings fell 1.2
percent after a 0.3 percent gain in April, according to the
median forecast in a Bloomberg survey of 67 economists. An
industry report on pending home sales may show a gain for the
first time in three months.


Read more at Bloomberg Currencies News

Federal Reserve Will `Panic,' Cut Interest Rate This Year, Marc Faber Says

(Bloomberg) -- The U.S. Federal Reserve ``will
panic'' and cut rates this year to bolster the economy as
subprime mortgage defaults climb, Marc Faber said.

``My concern is that in the second half of the year, unlike
everyone expects, the U.S. economy will not recover,'' Faber, an
investor who predicted the stock market crash in 1987, said in
an interview today in Hong Kong.


Read more at Bloomberg Bonds News

Thai Airways Fills Fewer Seats as Bangkok Street Protests Deter Tourists

(Bloomberg) -- Thai Airways International Pcl, the
country's biggest airline, filled fewer seats last month than a
year earlier as street protests in Bangkok against the military-
appointed government deterred overseas visitors.

The airline's passenger load factor, or the proportion of
seats filled with paying customers, fell between 2 percentage
points and 3 percentage points in June, Thai Air President
Apinan Sumanaseni said, without giving detailed figures. The
carrier filled 74.9 percent of seats in June 2006 and 78.4
percent in April 2007, according to its latest data.


Read more at Bloomberg Emerging Markets News

U.S. Treasury Notes Decline as Gains in U.S. Stocks Ease Demand for Safety

(Bloomberg) -- Ten-year Treasury notes fell,
snapping two days of gains, after an advance in U.S. stocks
eased demand for the relative safety of government securities.

The yield on the benchmark 10-year note rose 2 basis points
to 5.01 percent as of 9:14 a.m. in Singapore, according to bond
broker Cantor Fitzgerald LP. The price of the 4 1/2 percent
security due in May 2017 fell 1/8, or $1.25 per $1,000 face
amount, to 96 3/32. A basis point is 0.01 percentage point.


Read more at Bloomberg Bonds News

Australian Stocks Rise, Led by BHP, Rio; Wesfarmers, Coles Slide After Bid

(Bloomberg) -- Australia's benchmark stock index, the
S&P/ASX 200 Index, rose 0.42 percent at 10:05 a.m.

The index of 201 companies traded on the Australian Stock
Exchange rose 26.00 to 6,289.30. Among the stocks in the index,
102 rose, 13 fell and 86 were unchanged.


Read more at Bloomberg Stocks News

Japan's Government Bonds May Rise as Terror Threats Spur Flight to Safety

(Bloomberg) -- Japan's 10-year bonds may advance
after terrorist plots in the U.K. spurred demand for the
relative safety of government debt in the U.S. and Europe.

Local bonds may follow gains in U.S. Treasuries, which rose
yesterday on speculation over potential terror threats and
weakness in the subprime mortgage market. Ten-year Treasury
yields, which yesterday dropped below 5 percent for the first
time in three weeks, had a 0.87 correlation with Japanese yields
in the past year, according to data compiled by Bloomberg.


Read more at Bloomberg Bonds News

Japan's Government May Set 1.9 Percent Coupon on New Bonds, Survey Shows

(Bloomberg) -- Japan's Ministry of Finance is likely
to set a 1.9 percent coupon on 10-year bonds it will sell today,
based on market yields, according to the median forecast of 10
traders, analysts and investors in a Bloomberg News survey.

Some brokerages asked the ministry to re-issue the No. 286
10-year bond sold last month with a 1.8 percent coupon at
today's auction, Kazuo Katayama, director for market finance
division at the ministry's finance bureau, said on June 29. The
brokers said there has been a shortage of the debt in the
repurchase market, according to Katayama.


Read more at Bloomberg Bonds News

Morgan Stanley hires execs for ultra-rich clients

(Reuters) - Morgan Stanley also announced two other hires from U.S.
Trust: Christine Guidera, a fiduciary officer and specialist in
family office operations, and Mary Davey, who has 25 years
experience serving wealthy clients.




Earlier Monday, Bank of America Corp. said it
completed its $3.3 billion purchase of New York-based U.S.
Trust from Charles Schwab Corp. . The second-largest
U.S. bank said it has seen "normal attrition" from U.S. Trust
since announcing the acquisition last November.


Read more at Reuters.com Mergers News

UPDATE 1-Chinese online game firm Perfect World eyes US IPO

(Reuters) - The company said in a registration statement with the
Securities and Exchange Commission that Morgan Stanley, Credit
Suisse, CIBC World Markets and Susquehanna Financial Group,
LLLP were underwriting the IPO.




The preliminary filing did not state how many ADSs the
company intends to offer or their expected price.


Read more at Reuters.com Government Filings News

UPDATE 1-Larry Ellison's NetSuite files for $75 mln IPO

(Reuters) - BOSTON, July 2 - NetSuite Inc., billionaire Larry
Ellison's software company that sells computer programs accessed
over the Web, filed on Monday to raise up to $75 million in an
initial public offering.




Ellison, the founder and chief executive of Oracle Corp.
, controls 74 percent of NetSuite common stock, according
to the company's S-1 filing with the U.S. Securities and Exchange
Commission.


Read more at Reuters.com Bonds News

TREASURIES-Bonds rally on security fears

(Reuters) - Traders said attempted car-bomb attacks in London on
Friday, Saturday's attack on Glasgow's airport in Scotland, and
the killing of seven Spanish tourists and two Yemenis in a
blast in Yemen kept a constant bid in the Treasury market.




A BBC television report that Britain's Stansted airport,
near London, was on alert after a suspicious package had been
found, gave bonds their latest boost.


Read more at Reuters.com Bonds News

Discounts seen fueling U.S. auto sales in June

(Reuters) - "Sales appear to have picked up nicely in June, following
the lackluster selling rate of the past three months," Lehman
Brothers analyst Brian Johnson said. "This is largely due to a
sizable increase in incentives so far this month, and the
generous new marketing programs."




General Motors Corp. and Ford Motor Co. last
week began offering qualified buyers zero-percent financing for
three years plus additional cash on select vehicles as they
tried to boost sales at the end of the month.


Read more at Reuters.com Bonds News

Asustek, Gas Negara, Filinvest, Hyundai Heavy: Asia Ex-Japan Stock Preview

(Bloomberg) -- The following stocks may rise or fall in
Asian markets, excluding Japan. This preview includes news that
broke after markets closed. Prices are from the local market's last
close. Stock symbols are in parentheses after company names.

PT Aneka Tambang (ANTM IJ): Indonesia's second-biggest nickel
producer said it may not be able to achieve its 2007 output target
of 20,000 tons as repairs to its newest smelter, which leaked last
month, are taking longer than expected. The shares gained 300
rupiah, or 2.4 percent, to 12,850.


Read more at Bloomberg Stocks News

Walgreen to buy Option Care

(Reuters) - Walgreen, one of the largest U.S. drugstore chains, has typically grown on its own rather than through acquisitions, but has been acquiring assets to expand its lineup of health-related services. Walgreen's latest move comes months after its main rival, CVS, became the largest provider of specialty pharmacy services with its acquisition of Caremark.




Walgreen expects the acquisition to close in a few months and add "slightly" to earnings in the first year and more in future years, Chief Financial Officer William Rudolphsen said during a conference call. He also said Walgreen anticipates pretax synergies of about $15 million in the first year.


Read more at Reuters.com Market News

Virgin Media says receives bid approach

(Reuters) - Virgin Media's Nasdaq-listed shares surged almost 20 percent to $28.88, giving the group a market capitalization of $9.4 billion. Analysts said an offer could be pitched between $30 and $35 per share and draw other bidders into an auction.




Virgin Media said in a statement it had already started a review of its strategic options, including a sale of the group, and the proposal would be considered as part of that process.


Read more at Reuters.com Business News

Coffee Falls in New York on Rising Stockpiles, Favorable Weather in Brazil

(Bloomberg) -- Coffee in New York fell as U.S.
inventories increased and favorable weather spread over growing
regions in Brazil, the world's largest producer.

Stockpiles in warehouses monitored by the New York Board of
Trade rose to 4.17 million bags as of June 28, a gain of almost
8,800 bags from the previous day. There were 4.06 million bags
stored at the exchange's delivery points in New York, New
Orleans, Antwerp, Hamburg and Miami at the end of May.


Read more at Bloomberg Commodities News

Proxy Governance recommends vote for CME-CBOT deal

(Reuters) - "We believe if this deal is voted down, CBOT's shares may
fall precipitously, and we do not see the board accepting an
ICE proposal," Proxy Governance said in a report.




Read more at Reuters.com Mergers News

Parmalat must defend US investor class-action suit

(Reuters) - The ruling is a defeat for the Italian dairy company and
Chief Executive Enrico Bondi. Both have been trying to distance
themselves from prior management, and are seeking billions of
dollars of damages from the company's former bankers.




Parmalat had filed Europe's largest bankruptcy under about
14 billion euros of debt, after uncovering a 4
billion euro hole in its accounts.


Read more at Reuters.com Bonds News

Agency Mortgage Bonds Have Worst Month Since July 2003, Lehman Index Shows

(Bloomberg) -- Mortgage-backed bonds guaranteed by
Fannie Mae, Freddie Mac and Ginnie Mae, a $4 trillion market
that rivals the scope of U.S. Treasuries, underperformed last
month by the most since July 2003 as investors sought the safety
of government debt and interest rates became more volatile.

So-called agency mortgage bonds in June returned
0.53 percentage points less than U.S. Treasury notes with
maturities similar to their expected lives, a Lehman Brothers
Holdings Inc. index shows.


Read more at Bloomberg Bonds News

Walgreen to buy Option Care for $19.50/shr

(Reuters) - Shares of the company fell over 4 percent to $17.28 in pre-market electronic trade after closing at $18.06 Wednesday on the New York Stock Exchange.






Read more at Reuters.com Mergers News

UPDATE 1-Benchmark subprime ABX indexes plunge to new lows

(Reuters) - NEW YORK, July 2 - Benchmark subprime mortgage
ABX indexes fell to fresh record lows in nervous trading on
Monday, as concerns mounted over rapidly deteriorating subprime
loans made last year, traders said.




"It's another big selling wave. There's really no new
information. The repricing in the index is more sentiment
driven," said one ABX trader.


Read more at Reuters.com Bonds News

CBOT says June average volume up 51 pct to record

(Reuters) - Total volume for the month was 102 million contracts, up 45
percent from June 2006.




A key element in the advance was the 57 percent increase in
interest rates derivatives trading, CBOT's largest segment, to
3.8 million contracts, also a record.


Read more at Reuters.com Mergers News

Manufacturing growth is stronger in June: ISM

(Reuters) - The June reading was the survey's highest since April of 2006 and the report reinforced the view that economic growth was recovering after nearly stalling in the first quarter.




"We continue to see a rebound in growth in the second half," said Don Kowalchik, debt strategist at A.G. Edwards & Sons in St Louis, Missouri.


Read more at Reuters.com Economic News

Trump Entertainment buyout fizzles, shares plunge

(Reuters) - NEW YORK, July 2 - Casino operator Trump Entertainment Resorts Inc. said on Monday it did not reach a deal with potential acquirers and has ended discussions to sell itself, sending its shares down 14 percent.



Trump Entertainment, which runs three casinos in Atlantic City, New Jersey, and emerged from bankruptcy about two years ago, said none of the indications of interest was likely to lead to a transaction that was in the best interests of the company and its shareholders.


Read more at Reuters.com Bonds News

White Sugar Falls for 2nd Day After F.O. Licht Raises Production Forecast

(Bloomberg) -- White sugar fell for a second
straight trading session in London after German commodity
research company F.O. Licht lifted its production forecast.

Global sugar-cane output, led by an increase from India,
will be 4.6 percent higher than previously forecast, bolstering
a surplus, F.O. Licht said in an e-mailed report today. Output
will be 130 million tons in the 2006-2007 season, up 19 percent
from last year, the Ratzeburg, Germany-based group said. India
is the world's second-biggest producer, after Brazil.


Read more at Bloomberg Commodities News

UPDATE 1-Carlyle to buy Manor Care for $4.9 billion

(Reuters) - NEW YORK, July 2 - Manor Care Inc. , the largest U.S. operator of homes for the elderly, said on Monday it agreed to be acquired by Carlyle Group for $4.9 billion, becoming the latest health care provider taken off the public market by a private equity buyer.



Manor Care shareholders will receive $67 per share, a 20 percent premium to the stock's closing stock price on April 10, the day before the company announced it was putting itself up for sale. The total value of the deal, including debt, is $6.3 billion, the company said.


Read more at Reuters.com Mergers News

99 Cents Only Stores quarterly loss narrows

(Reuters) - The results included a 1 cent per share charge from stock
option expenses.




Quarterly sales rose 9.4 percent to $277.9 million.
Same-store sales, a key retail measure of sales at stores open
at least a year, rose 2.9 percent during the quarter, the
company said.


Read more at Reuters.com Market News

Cemig, Grupo Imsa, Petrobras, Positivo, TV Azteca: Latin Equity Preview

(Bloomberg) -- The following stocks may make
significant gains or losses in Brazil and Mexico today. Symbols are
in parentheses after the company name, and stock prices are from
the last session.

In Brazil, preferred shares are the most commonly traded class
of stock. Markets in Chile are closed today for a holiday.


Read more at Bloomberg Stocks News

BCE Sale Will Force Canadian Investors to Seek Dividend Yields Elsewhere

(Bloomberg) -- BCE Inc., whose dividends made the
stock a popular gift for Canadian grandchildren, will disappear
from portfolios after its C$34.2 billion ($32.1 billion) buyout,
forcing retail investors to look elsewhere for returns.

``My grandmother gave me that stock,'' said Greg Deitcher,
38, a Toronto resident who's owned BCE since his teens and now
holds about 200 shares. ``BCE was well-known for paying a
dividend. I don't know what I'm going to do now.''


Read more at Bloomberg Stocks News

Treasuries Little Changed Ahead of U.S. Report on Manufacturing Growth

(Bloomberg) -- Treasuries were little changed before
a private report that's forecast to show growth in U.S.
manufacturing held near the highest in 13 months in June.

Businesses are expanding to rebuild inventories as the U.S.
recovers from a housing-led slowdown, economists said before
today's report by the Institute for Supply Management. Ten-year
yields, which move inversely to prices, rebounded from the
biggest drop in more than two weeks on June 29 when London
police found cars packed with explosive materials.


Read more at Bloomberg Bonds News

Dominion to sell gas assets to Linn Energy

(Reuters) - Last November, the Richmond, Virginia-based company said it would pursue the sale of most of its exploration and production assets as part of a restructuring. Prior to the Mid-Continent deal, Dominion had agreed to sell $11.84 billion of those assets.




The sale of the Mid-Continent operations, which are primarily in Oklahoma, is expected to close by the end of the third quarter. The rest of Dominion's asset sales have closed or are scheduled to close by that time, the company said.


Read more at Reuters.com Market News

US STOCKS-Futures signal higher open on deal activity

(Reuters) - Stocks will also get direction from a report on
manufacturing activity, which investors will scrutinize for
clues about the outlook for profits.




Canada's largest telephone company, BCE Inc
, agreed to a $48.5 billion buyout from a group that
includes the Ontario Teachers Pension Plan on Saturday, in the
biggest buyout in Canadian corporate history. For details, see
[ID:nN02315411].


Read more at Reuters.com Bonds News

Asian Stocks Climb, Paced by Caltex on Oil; Mitsubishi Estate Retreats

(Bloomberg) -- Asian stocks advanced for a third day,
led by energy-related shares, after declining U.S. fuel stockpiles
and attempted car bombings in the U.K. lifted the price of crude.

Caltex Australia Ltd., the nation's biggest oil refiner, rose
the most in two weeks. Mitsui & Co., a Japanese trading company
that generated about a sixth of last year's revenue from energy,
jumped by more than 3 percent for a second straight day.


Read more at Bloomberg Stocks News

Yen Rebounds Against Euro as U.K. Terror Attacks Spark Risk Aversion

(Bloomberg) -- The yen rebounded from a record low
versus the euro after terrorists targeted central London and
Glasgow, prompting investors to pare purchases of riskier assets.

Japan's yen advanced against 12 of the 16 most-actively
traded currencies tracked by Bloomberg as investors unwind so-
called carry trades. The yen also gained versus the dollar as the
Bank of Japan's Tankan report showed confidence among
manufacturers held near a two-year high, adding to expectations
the central bank will raise interest rates this year.


Read more at Bloomberg Currencies News

South Africa's Rand Reaches Six-Week High on Outlook for Interest Rates

(Bloomberg) -- South Africa's rand rose for a fourth
day, touching its highest in six weeks, on speculation the
country's relatively high rates will keep luring investors
looking for yield.

Foreign investors bought 728 million rand ($103.8 million)
more than they sold of the country's bonds June 29, reversing net
sales of 706 million rand the previous day, according to the Bond
Exchange of South Africa. The rand had risen as the gap in yield
between South African benchmark 10-year debt and similar maturity
Treasuries widened more than 30 points in the past month.


Read more at Bloomberg Currencies News

Gold, Silver Rise in London as Costs May Spur Demand for Inflation Hedge

(Bloomberg) -- Gold and silver rose in London on
speculation higher raw-material costs and a weaker dollar may
revive demand for precious metals as a hedge against inflation.

Bullion also gained after investors bought it as a haven
following attempted car bombings in London and an attack in
Glasgow last week, said Tom Kendall, a precious metals
strategist at Mitsubishi Corp. in London.


Read more at Bloomberg Commodities News

Treasuries Little Changed After U.K. Attack, Before U.S. Production Report

(Bloomberg) -- Treasuries were little changed after
U.K. police arrested five people following an attack on Glasgow
International Airport and two attempted London car bombings.

Ten-year yields stabilized after their biggest drop in more
than two weeks on June 29 when police discovered two cars with
explosive materials in London. Two men were arrested at Glasgow
airport the next day after their Jeep crashed into the terminal
entrance and caught fire. A report by the Institute for Supply
Management today is forecast to show U.S. manufacturing growth.


Read more at Bloomberg Bonds News

Germany's DAX Index Decreases; Shares of Allianz, E.ON Pace the Drop

(Bloomberg) -- Germany's benchmark index dropped for
the first time in three days, led by Allianz SE after Merrill
Lynch & Co. removed the stock from its ``most preferred'' list.
E.ON AG, the Germany's largest utility, also fell.

The DAX Index lost 52.03, or 0.7 percent, to 7955.29 at
9:56 a.m. in Frankfurt. DAX futures expiring in September fell
0.6 percent to 8029. The HDAX Index of the country's 110 biggest
companies retreated 0.6 percent.


Read more at Bloomberg Stocks News

Turkish Economic Growth Accelerated in First Quarter on European Exports

(Bloomberg) -- Turkey's economic growth accelerated in
the first quarter led by record exports to the European Union and
increased government spending.

Gross domestic product expanded an annual 6.8 percent,
compared with 5.2 percent in the previous three months, the state
statistics office in Ankara said today. The economy had been
expected to grow by 5.8 percent, according to the median estimate
of 10 economists surveyed by Bloomberg.


Read more at Bloomberg Emerging Markets News

Big private equity groups polish German image

(Reuters) - The new group includes Blackstone , Allianz Capital
Partners , Apax [APAX.UL], Advent, Bain Capital, BC
Partners, CVC [CVC.UL], KKR [KKR.UL], Permira [PERM.UL] and TPG
[TPG.UL].




The new group will commission studies from independent
research institutes on the economic importance of private equity
activities in Germany, with group members providing data about
their investments, BVK said.


Read more at Reuters.com Mergers News

Japan Tobacco to Sell $1.2 Billion in Bonds to Help Fund Gallaher Purchase

(Bloomberg) -- Japan Tobacco Inc., the world's
third-largest traded cigarette maker, said it plans to sell
about 150 billion yen ($1.2 billion) of bonds to repay debt for
the purchase of Gallaher Group Plc.

Tokyo-based Japan Tobacco hired Daiwa Securities SMBC Co.
and Nomura Holdings Inc. to handle the sale, said Yukiko Seto, a
spokeswoman for Japan Tobacco. The company is aiming to price
the bonds this month, Seto said in a telephone interview.


Read more at Bloomberg Bonds News