US Midwest business expands strongly in June

(Reuters) - The employment component of the index fell to 52.7 from
57.3 in May. Prices paid fell to 68.1 from 70.2 and new orders
slipped to 65.7 from 71.1.




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US STOCKS-Indexes gain at open on tame inflation

(Reuters) - The Dow Jones industrial average was up 23.90
points, or 0.18 percent, at 13,446.18. The Standard & Poor's
500 Index was up 2.25 points, or 0.15 percent, at
1,507.96. The Nasdaq Composite Index was up 10.91
points, or 0.42 percent, at 2,619.28.




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Canadian Stocks May Gain on Research In Motion's Profit; BCE May Advance

(Bloomberg) -- Canadian stocks may rise after Research
In Motion Ltd. announced a stock split and first-quarter profit
exceeded analyst estimates.

Research In Motion, the maker of BlackBerry e-mail phones,
surged 17 percent in trading before the open of Canadian exchanges.
BCE Inc., Canada's biggest phone company, gained after the Ontario
Teachers' Pension Plan said it made bids for all BCE shares it
doesn't already own.


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US STOCKS-Futures turn higher after inflation data

(Reuters) - NEW YORK, June 29 - U.S. stock index futures
reversed direction on Friday, turning higher, after a gauge of
inflation in May showed its lowest reading since March 2004.




The report was likely to give the Federal Reserve some
assurance it is making progress in its effort to curb
inflation.


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U.S. Stock-Index Futures Gain After Inflation Measure Matches Forecasts

(Bloomberg) -- U.S. stock-index futures advanced
after a government report showed a measure of inflation matched
forecasts last month.

A gauge of consumer prices excluding food and energy gained
0.1 percent in May, the same as the previous month and
economists' estimates. Federal Reserve policy makers yesterday
said they continue to view inflation as the main threat to the
economy as they held the benchmark lending rate at 5.25 percent
for an eighth meeting.


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Bank of England's Jenkinson Warns on Weaknesses Shown by Subprime Fallout

(Bloomberg) -- The U.S. subprime lending crisis has
shown weaknesses in risk controls which could affect the whole
financial system in the event of a bigger shock to deeper markets
such as corporate credit, a Bank of England official said.

``Recent distress in the U.S. subprime lending market'' has
``exposed weaknesses in risk management,'' Nigel Jenkinson, the
bank's executive director for financial stability, said today.
``In a more severe stress scenario, perhaps in a more significant
market such as corporate credit,'' the effect ``could have more
serious consequences for the financial system.''


Read more at Bloomberg Bonds News

Michigan County Leads Week's Municipal Borrowers With Sales at Record Pace

(Bloomberg) -- U.S. state and local governments
sold $11 billion of bonds this week, led by New York State's
Dormitory Authority and Michigan's Oakland County, helping to
put sales of tax-exempt bonds on pace to top 2005's record.

It was the third straight week that sales of new municipal
bonds exceeded the average of $7.7 billion so far this year,
according to data compiled by Bloomberg. A rise in bond yields
since last month is drawing buyers, even as governments seeking
to refinance debt or raise money for projects in case borrowing
costs rise further flood the market with offerings.


Read more at Bloomberg Bonds News