U.K. Pound Gains for Fifth Week Versus Dollar on Outlook for Interest Rate

(Bloomberg) -- The pound posted its longest winning
run against the dollar in more than a year on speculation Bank of
England policy makers will keep raising interest rates while the
U.S. Federal Reserve stays on hold.

The U.K. currency gained for a fifth week as futures traders
bet the central bank will raise rates a quarter-point and start
pricing in a further move to 6.25 percent by year-end. The pound
touched a 26-year high after Moody's Investors Service cut
ratings on bonds backed by U.S. subprime mortgages and Standard &
Poor's threatened to do the same.


Read more at Bloomberg Currencies News

Japan's Bond Futures Advance After Downgrades of U.S. Subprime-Backed Debt

(Bloomberg) -- Japan's 10-year bond futures rose in
the past week after downgrades of debt backed by U.S. subprime
mortgages sparked demand for the safety of government securities.

Bond futures on July 11 had the biggest gain since August
after Moody's Investors Service cut ratings on $5.2 billion of
debt backed by loans to homeowners with poor credit histories.
Concern economic growth in the U.S., Japan's largest export
market, will slow helped bond futures rebound from the steepest
weekly drop since last month.


Read more at Bloomberg Bonds News

Wall St Week Ahead: Robust earnings to keep stocks charged

(Reuters) - Rising energy and food prices coupled with uneven retail
sales are not likely to slow down investors as they test the
market's limits. At the same time, the financial sector is
expected to avoid major losses from the subprime sector.




After a week where the Dow Jones industrial average and
Standard & Poor's 500 index reached record highs on mergers
and acquisitions activity and multibillion-dollar blue-chip
buyback plans, investors will eye profits, inflation data and
the Federal Reserve for signs of further good news.


Read more at Reuters.com Economic News

UPDATE 1-Hillary Clinton slams private equity tax loophole

(Reuters) - WASHINGTON, July 13 - New York Sen. Hillary
Clinton, the front-running Democratic presidential candidate,
on Friday urged closing a tax loophole that she said unfairly
benefits a few top Wall Street financiers.




Clinton called the loophole a "glaring inequity" and joined
other lawmakers in a push to raise the tax rate on "carried
interest" gains made by senior partners in the booming private
equity and hedge fund businesses.


Read more at Reuters.com Mergers News

Corn, Soybean Futures Rise as Hot, Dry Weather May Threaten U.S. Crops

(Bloomberg) -- Corn rose in Chicago to the highest
price in two weeks and soybeans extended a rally to a three-year
high on speculation unusually hot weather will damage crops in
the U.S., the biggest producer and exporter of both commodities.

Temperatures may reach 100 degrees Fahrenheit (38 Celsius)
west of the Mississippi River on fields already stressed after
receiving less than 25 percent of normal rain in the past 30
days, said Joel Widenor, a meteorologist for CropCast Services in
Rockville, Maryland. Most of the Midwest will be drier than
normal in the next two weeks as average temperatures rise as much
as 8 degrees Fahrenheit above normal, Widenor said.


Read more at Bloomberg Commodities News

UPDATE 1-Formation, JER buy Genesis Health for $1.52 bln

(Reuters) - The deal, valued at about $1.52 billion, excluding about
$475 million in debt, gives Genesis shareholders $69.35 in cash
for each share they own.




Private equity money has been flowing into health care
service companies for the past year. Last week, Manor Care Inc
, the biggest nursing home chain, agreed to be bought
for about $4.9 billion.


Read more at Reuters.com Mergers News

Kia, Resorts World and Shanghai Industrial: Asia Ex-Japan Equity Preview

(Bloomberg) -- The following stocks may rise or fall
in Asian markets, excluding Japan, on July 16. 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.

Fosun International Ltd. (656 HK): The Chinese company, which
has businesses ranging from pharmaceuticals to steel, raised
HK$11.5 billion ($1.5 billion) in an initial public offering,
selling 1.25 billion shares at HK$9.23 apiece. The stock will start
trading July 16.


Read more at Bloomberg Stocks News

S&P 500 hits lifetime record, surpasses 2000 high

(Reuters) - The Standard & Poor's 500 Index was up 5.99 points, or 0.39 percent, at 1,553.69.




The Dow Jones industrial average was up 49.99 points, or 0.36 percent, at 13,911.72. The Nasdaq Composite Index was up 1.37 points, or 0.05 percent, at 2,703.10.


Read more at Reuters.com Bonds News

TREASURIES-Bonds flat as sentiment, stocks trump retail data

(Reuters) - NEW YORK, July 13 - U.S. government debt prices
traded little changed on Friday after a robust reading on
consumer sentiment and the stock market's gains offset a
surprisingly weak report on U.S. retail sales.




The Commerce Department's June retail sales data hinted
that the slipping housing sector was taking a toll on
consumers, but a higher-than-expected July Reuters/University
of Michigan consumer sentiment reading appeared to signal the
economy was more resilient than previously thought.


Read more at Reuters.com Bonds News

Conrad Black co-defendants found guilty

(Reuters) - The co-defendants include former Hollinger International Inc. chief financial officer Jack Boultbee; Peter Atkinson, former vice president and general counsel for the same company, and Mark Kipnis, a former Hollinger lawyer.




Read more at Reuters.com Business News

Intel backs project to give laptops to poor kids

(Reuters) - Intel Corp. said on Friday it will support a Massachusetts Institute of Technology researcher's project to put computers in the hands of poor children around the world, reversing its long-standing opposition to the proposal.

The world's biggest chipmaker will join the board of the One Laptop Per Child Foundation, which developed the XO laptop -- a personal computer that it plans to put into production in September at a cost of $176.


Read more at Reuters Africa

European Bonds Decline for Second Day on Stocks, Interest-Rate Outlook

(Bloomberg) -- European government bonds fell for a
second day as a surge in global equity markets eroded demand for
less risky assets, and on speculation the European Central Bank
will keep raising interest rates.

The drop in debt pushed 10-year yields up from near the
lowest in a week, as concern waned that the downgrading of
subprime mortgage-backed bonds in the U.S. may crimp growth in
the wider economy. Bonds also fell as traders bet the European
Central Bank will keep lifting borrowing costs to curb inflation.


Read more at Bloomberg Bonds News

Treasuries Headed for a Weekly Advance on Concern Over Subprime Mortgages

(Bloomberg) -- Treasuries were headed for a weekly
advance on concern weakness in subprime mortgages may slow U.S.
economic growth.

Ten-year note yields were down more than 5 basis points for
the week. They dropped the most in more than four months on July
10 as Standard & Poor's and Moody's Investors Service warned
about the credit quality of subprime mortgages.


Read more at Bloomberg Bonds News

TREASURIES-Bonds pare gains after strong consumer gauge

(Reuters) - Benchmark 10-year Treasury notes were last up
6/32 in price on the day, yielding 5.10 percent. Before the
release they were up 9/32.




Read more at Reuters.com Bonds News

UPDATE 1-US July consumer sentiment climbs to 6-month high

(Reuters) - The Reuters/University of Michigan Surveys of Consumers
said its preliminary July consumer sentiment index came in at
92.4, well above a median forecast of 86.0 and June's final
reading of 85.3, for the highest reading since January's 96.9.




Although the jump in the index was impressive, it was
coming off a 10-month low in June.


Read more at Reuters.com Economic News

LBO Credit Quality Rises for First Day in Six, Loan Default Swaps Show

(Bloomberg) -- The credit quality of companies
acquired in leveraged buyouts improved for the first day in six,
according to traders of credit-default swaps on European loans.

The iTraxx LevX Index of credit-default swaps on high-risk,
high-yield loans to 35 companies increased 0.2 percent to 98.61
at 10:50 a.m. in London, according to data compiled by
Bloomberg. The index fell to 98.41 yesterday, the lowest since
the LevX was established in October.


Read more at Bloomberg Bonds News

UPDATE 1-Gecamines seeks advice on Camec bid for Katanga

(Reuters) - Katanga controls a partnership between Gecamines and
Kinross-Forrest Ltd formed to restart production at a
Kamoto mine through a company called Kamoto Copper Co ,
Gecamines said in a statement.




Gecamines said if Central African Mining & Exploration Co
buys Katanga it would have the effect of introducing a
new partner into the KCC project.


Read more at Reuters.com Mergers News

Kazakhstan's First-Half Crude Oil, Gas-Condensate Output Rises 6.8 Percent

(Bloomberg) -- Kazakhstan, the second-biggest oil
producer in the former Soviet Union after Russia, increased oil
and gas condensate production 6.8 percent in the first half of
the year compared with the same period in 2006.

The Caspian Sea state boosted output to 33.4 million metric
tons in the January-June period, the Almaty-based State
Statistics Agency said today in an e-mail. Crude production
advanced 4.1 percent to 27.1 million tons in the period.


Read more at Bloomberg Energy News

Idenix writes off hepatitis drug after FDA review

(Reuters) - Shares of the Cambridge, Massachusetts-based biotechnology company plunged 24 percent in pre-market trading after the U.S. Food and Drug Administration placed further development of the drug in the United States on hold.




While Idenix said it will discuss the issue with its partner, Swiss drugmaker Novartis AG , the company said it does not believe the drug can be rescued.


Read more at Reuters.com Hot Stocks News

Copper eases as Chilean strike ends

(Reuters) - Copper eased on Friday as workers agreed to a pay deal at Chile's Collahuasi mine but concerns remained about tight supplies as other strikes continued.

Copper for delivery in three months on the London Metal Exchange fell back 0.7 percent to trade at $7,770/7,780 a tonne by 1223 GMT after workers in top producer Chile ended a four-day strike.


Read more at Reuters Africa

UPDATE 2-GE profit meets forecast, to sell subprime unit

(Reuters) - BOSTON, July 13 - General Electric Co.
reported earnings in line with Wall Street's expectations on
Friday, citing strong demand for jet engines, gas turbines and
other heavy equipment, as well as solid results at its
commercial finance unit.




Those businesses helped offset weakness at the company's
WMC Mortgage subprime lending unit, which recorded a loss. GE
said it would sell that unit.


Read more at Reuters.com Market News

DEALTALK-Comparison Web sites pique interest at peak values

(Reuters) - Moneysupermarket.com is headed for a 1 billion pound public flotation at the end of July while UK motor insurer Admiral Group Plc only recently ended talks with suitors for its insurance premium comparison site Confused.com.




Cheapflights, which compares travel deals online, also hired a bank in May to explore a possible stake sale or IPO, while private equity firm Providence Equity Partners reportedly bought a majority stake in comparison site NexTag for $830 million.


Read more at Reuters.com Mergers News

Treasuries Little Changed Before Government Report on U.S. Retail Sales

(Bloomberg) -- U.S. Treasuries were little changed
before a government report that will probably show retail sales
declined last month, suggesting a housing slump and higher fuel
costs are contributing to weaker economic growth.

Standard & Poor's and Moody's Investors Service prompted
the biggest surge in Treasuries in more than four months on July
10 after they warned about the credit quality of U.S. subprime
mortgages. Benchmark 10-year notes have pared their gains in the
past two days as a rebound in global stock markets eased demand
for less risky assets such as government debt.


Read more at Bloomberg Bonds News

Lululemon sees IPO of 16.4 mln shares at $10-$12 a share

(Reuters) - In an amended filing, the company on Friday said it plans
to sell 2.3 million shares while certain stockholders are
selling the remaining 14.1 million shares.





Read more at Reuters.com Government Filings News

China's Yuan Has Biggest Weekly Advance Since 2005; Government Bonds Rise

(Bloomberg) -- The yuan had its biggest weekly
advance since the end of a dollar link in 2005 on speculation
pressure from the U.S. for quicker currency gains will increase
as the trade gap between the two nations widens.

China's trade surplus grew to a record in June, driving
foreign-exchange reserves to an all-time high, boosting excess
cash in the financial system and making it more difficult for
the government to cool economic growth. The U.S. trade deficit
with China widened in May, the Commerce Department said
yesterday.


Read more at Bloomberg Currencies News

Central European Benchmark Indexes Advance, Led by PKN Orlen, CEZ Shares

(Bloomberg) -- Central European stocks including PKN
Orlen SA gained. Poland's largest oil refiner said it may sell
its stake in a mobile-phone company within a year.

Intercell AG dropped after Goldman, Sachs & Co. recommended
selling shares of the Austrian biotechnology company.


Read more at Bloomberg Emerging Markets News

Gecamines seeks advice on Camec bid for Katanga

(Reuters) - State-owned Democratic Republic of Congo miner Gecamines said on Friday it had sought legal advice on whether its contracts with Katanga Mining Ltd would be affected by a proposed takeover by Camec.

Katanga controls a partnership between Gecamines and Kinross-Forrest Ltd (KFL) formed to restart production at a Kamoto mine through a company called Kamoto Copper Co (KCC), Gecamines said in a statement.


Read more at Reuters Africa

Bank of America satisfied with ABN court ruling

(Reuters) - In line with advice given by a court adviser two weeks ago,
the Supreme Court ruled that shareholders would not have to vote
on the sale of LaSalle.




"Obviously we can continue the transaction," the spokesman
added.


Read more at Reuters.com Mergers News

UPDATE 1-ABN's LaSalle sale can proceed - Dutch court

(Reuters) - The Supreme Court ruled that shareholders would not have to
vote on the sale of LaSalle, in line with advice given by a
court adviser two weeks ago.




" request for an interim injunction to suspend ... the
contract of sale regarding LaSalle was dismissed irrevocably,"
the court said.


Read more at Reuters.com Mergers News

Dutch Supreme Court begins delivering ABN ruling

(Reuters) - A commercial court in Amsterdam froze ABN's agreed deal to sell LaSalle to Bank of America for $21 billion in May, a ruling that is now being appealed before the Supreme Court by ABN.




The court had ruled that ABN would have to seek shareholder approval for the LaSalle sale, which could sway the acrimonious takeover battle for ABN between Barclays and a consortium led by Royal Bank of Scotland .


Read more at Reuters.com Mergers News

Fiat, BMW Lead First European Passenger Car Sales Increase in Five Months

(Bloomberg) -- Fiat SpA and Bayerische Motoren
Werke AG led the first gain in European car sales gain in five
months as surging demand in the eastern region more than made up
for a decline in the west.

New car registrations in June rose 0.7 percent to 1.54
million vehicles from 1.53 million a year earlier, the Brussels-
based European Automobile Manufacturers Association said today
in a statement. First-half sales declined 0.2 percent to 8.51
million vehicles.


Read more at Bloomberg Bonds News

Germany's DAX Index Climbs to Record, Led by Shares of BASF, Allianz

(Bloomberg) -- German stocks advanced, led by BASF
AG, Allianz SE and Deutsche Bank AG.

The benchmark DAX Index rose 83.97, or 1 percent, to a
record 8137.40 as of 9:10 a.m. in Frankfurt. The HDAX Index of
the country's 110 biggest companies climbed 1 percent.


Read more at Bloomberg Stocks News