WRAPUP 5-US stocks mixed amid financing concerns, oil soars

(Reuters) - Shares of aircraft maker Boeing jumped to a record as the
stock led advances on the Dow Jones industrial average, while
Internet retailer Amazon.com shares soared more than 24 percent
to a 7-1/2-year high on Nasdaq.




U.S. stocks erased most of their early gains after news
that Chrysler had postponed a $12 billion auto loan deal.
Chrysler is raising cash to help fund a buyout by Cerberus
Capital Management. For details, see [ID:nN25373257]


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TREASURIES-Bonds steady after auction, watch stocks

(Reuters) - The fall in equities on credit concerns, sparked by news
that Chrysler Corp. had postponed a $12 billion auto loan deal,
could see bonds attract a flight-to-quality bid, strategists
said.




"It came slightly cheaper than expectations.
Nothing substantial at all. There's some short-term weakness at
the front of the curve over the next 24 hours because we have
5-years on sale later this week," said Adam Brown, head U.S.
Treasury trading Barclays Capital in New York.


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U.S. Stocks Decline on Financing Concern; Citigroup, JPMorgan Shares Drop

(Bloomberg) -- Most U.S. stocks fell for a second
day after concern grew that financing for takeovers is drying
up and a drop in metals prices hurt earnings prospects for
miners.

Citigroup Inc. and JPMorgan Chase & Co. led declines in
the Standard & Poor's 500 Index after people with knowledge of
the deals said lenders couldn't find investors to fund the
buyouts of Alliance Boots Plc and Chrysler. Freeport-McMoRan
Copper & Gold Inc. posted its steepest decline in five months
after copper prices plunged.


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Stocks up on Boeing, Amazon.com; housing eyed

(Reuters) - The drop followed news that DaimlerChrysler had postponed a $12 billion auto loan deal.




The Dow Jones industrial average was down 5.52 points, or 0.04 percent, at 13,711.43. The Standard & Poor's 500 Index was down 2.53 points, or 0.17 percent, at 1,508.51. The Nasdaq Composite Index was down 3.53 points, or 0.13 percent, at 2,636.33.


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UAW's Gettelfinger Stuck Between Reuther's Legacy, `Crashing' Car Industry

(Bloomberg) -- Ron Gettelfinger, chief of the United
Auto Workers, will sit at the bargaining table with the Big Three
automakers while holding one of the weakest hands in the 72-year-
old union's history. He'll also have the shadow of union icon
Walter Reuther looming over him.

Gettelfinger started negotiating today with companies that
lost a combined $15 billion last year -- a far cry from the era
when Reuther won health insurance and pensions for the rank-and-
file during two decades running the UAW until his death in 1970.
General Motors Corp., Ford Motor Co. and Chrysler now are looking
to roll back those so-called legacy costs, which include retiree
health-care liabilities of $114 billion.


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Delphi ends Cerberus deal; sees new plan in July

(Reuters) - Delphi terminated the $3.4 billion equity investment plan on Saturday. Cerberus, which is buying Chrysler Group from DaimlerChrysler AG , was a co-lead investor in the plan with Appaloosa, Delphi's biggest shareholder.




The developments are not expected to prevent Delphi from exiting bankruptcy this year and Delphi's board is scheduled to meet July 16 to consider the matters, it said.


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UPDATE 1-EU approves Cerberus purchase of Chrysler

(Reuters) - BRUSSELS, July 3 - U.S. buyout firm Cerberus Capital Management [CBS.UL] won approval from the European Commission on Tuesday to buy U.S. carmaker Chrysler from DaimlerChrysler .



The deal was approved under a special simplified procedure because neither customers nor competitors had lodged any objections, the Commission said.


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UAW May Hire Lazard for Health-Care Advice in U.S. Auto Talks, People Say

(Bloomberg) -- The United Auto Workers may hire
investment bank Lazard Ltd. to advise the union on health-care
concessions in contract talks with U.S. automakers, two people
with knowledge of the matter said.

The union told New York-based Lazard to be ready to assist
in negotiations that begin next month with General Motors Corp.,
Ford Motor Co. and DaimlerChrysler AG's Chrysler, said the
people, who asked not to be named because the plans are private.


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Road show planned to raise funds in Chrysler deal: WSJ

(Reuters) - J.P. Morgan Chase & Co., Bear Stearns Cos. , Goldman Sachs Group Inc. , Citigroup Inc. and Morgan Stanley are helping Cerberus raise some $62 billion in debt for the deal, which includes Chrysler's finance arm, WSJ said.




On May 14, DaimlerChrysler AG announced that it was selling Chrysler to Cerberus in a $7.4 billion deal.


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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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DaimlerChrysler sells stake in China bus venture

(Reuters) - He gave no financial terms for the sale.



DaimlerChrysler had to revamp its Chinese plans after Beijing limited foreign companies to two joint-venture projects.


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