European Government Bonds Decline on Speculation ECB to Keep Raising Rate

(Bloomberg) -- European government bonds fell for a
second day before a report that's expected to show business
optimism in the region's largest economy is buoyant, underpinning
the case for the European Central Bank to keep raising interest
rates.

The drop in debt pushed 10-year yields to near a five-year
high yesterday as investors reassessed the outlook for global
borrowing costs. An index tomorrow is likely to show German
business confidence held near the highest on record this month.
Futures show traders are adding to bets the ECB will raise rates
twice more this year.


Read more at Bloomberg Bonds News

Gold bounces, Tokyo futures off two-week highs

(Reuters) - Gold bounced on Thursday after falling more than 1 percent in New York, while Tokyo futures tracked losses in New York and traded below two-week highs hit the previous day.

Other precious metals dropped, with weakness in Japanese platinum futures dragging down the cash price. Platinum had rallied to its highest in early two weeks on Wednesday on supply concerns.


Read more at Reuters Africa

PRESS DIGEST - Wall Street Journal - June 21

(Reuters) - * The London Stock Exchange and Borsa Italiana are
discussing a merger that could give the London market greater
heft in any talks with Nasdaq.




* Boeing Co. and Airbus's rivalry over supplying
tankers for the Air Force is intensifying in a final push to
snare the contract.


Read more at Reuters.com Government Filings News

Oil holds over $70 after fall on U.S. crude stock jump

(Reuters) - London benchmark Brent crude rose 27 cents to $70.69 a barrel by 0339 GMT, regaining its poise after a $1.42 plunge a day ago. Prices had touched a 10-month high of $72.25 on Monday.




U.S. light, sweet crude inched 5 cents higher to $68.91 a barrel, after narrowing its unusually large discount versus Brent to under $2 amid ebbing inventories in the Cushing, Oklahoma, delivery point for the contract.


Read more at Reuters.com Hot Stocks News

Brookfield, Esco, Oakley, Sonic, Vector, Winnebago: U.S. Equity Preview

(Bloomberg) -- The following is a list of companies
whose shares may have unusual price changes in U.S. exchanges
today. This preview includes news that broke after exchanges
closed yesterday. Stock symbols are in parentheses after company
names.

The Andersons Inc. (ANDE US) rose $3.52, or 8.7 percent, to
$43.92 in trading yesterday after the official close of U.S.
exchanges. The company, which sells and stores grain, increased
its forecast, saying it expects to earn $2.80 to $3.05 a share
this year. That topped the company's previous prediction of as
much as $2.60 and beat the average estimate of $2.68 from
analysts in a Bloomberg survey.


Read more at Bloomberg Stocks News

Japan's May LNG Imports Surge 15 Percent on Demand From Power Producers

(Bloomberg) -- Japan, the world's biggest buyer of
liquefied natural gas, increased imports of the fuel for a second
month in May as electricity producers turned to LNG to make up
for shutdowns at some nuclear power plants.

Shipments jumped 15 percent from a year earlier to 6.03
million metric tons of LNG last month, the Ministry of Finance
said in a statement in Tokyo today. Crude oil imports fell 3.9
percent to 17.5 million kiloliters (110.1 million barrels),
reflecting the nation's declining demand for petroleum products.


Read more at Bloomberg Energy News

Malaysia's SP Setia to Start Vietnam Project as Housing Glut Looms at Home

(Bloomberg) -- SP Setia Bhd., Malaysia's biggest
developer, will form a joint venture this year to build homes in
Vietnam's Ho Chi Minh City, targeting one of the region's
fastest-growing economies in the company's first foreign venture.

SP Setia is negotiating with a government-linked company to
build a township in Ho Chi Minh City, Executive Director Voon Tin
Yow, 49, said in an interview. The project will be similar to the
company's 3.5 billion ringgit ($1 billion), 791-acre Setia Eco
Park development near the Malaysian capital of Kuala Lumpur.


Read more at Bloomberg Emerging Markets News

U.S. Notes Little Changed; Philadelphia Fed Manufacturing Index May Rise

(Bloomberg) -- U.S. Treasuries were little changed,
following their biggest slide in more than a week, before a
central bank report that economists say will show a pickup in
manufacturing this month.

Notes may drop for a second day on expectations the report
will indicate the economy is accelerating this quarter after
barely growing in the first three months of 2007. The slide in
Treasuries was fueled by concern traders will trim holdings to
guard against possible losses as companies including Home Depot
Inc. sell debt.


Read more at Bloomberg Bonds News

Japan's 20-Year Government Bonds Decline Ahead of Auction of Securities

(Bloomberg) -- Japanese 20-year government bonds
declined before an auction of the securities today.

The yield on the 2.1 percent bond due March 2027 gained 2
basis points to 2.305 percent as of 9:20 a.m. in Tokyo at Japan
Bond Trading Co., the nation's largest interdealer debt broker. A
basis point is 0.01 percentage point. Bond futures for September
delivery declined 0.24 to 131.46 on the Tokyo Stock Exchange.


Read more at Bloomberg Bonds News

South Korea's Kospi Index Declines, Led by Posco, Korea Electric Power

(Bloomberg) -- South Korea's benchmark stock index,
the Kospi Index, fell 0.50 percent at 9:05 a.m.

The index of 729 companies traded on the Korea Exchange
fell 8.95 to 1,774.84. Among the stocks in the index, 128 rose,
401 fell and 201 were unchanged.


Read more at Bloomberg Stocks News

Whole Foods Market to sell Henry's and Sun Harvest stores

(Reuters) - The sale is subject to it prevailing in a current lawsuit
with the U.S. Federal Trade Commission concerning merger with
Wild Oats Markets Inc. , the company added.





Read more at Reuters.com Mergers News

UPDATE 1-Greenberg sues AIG execs, directors over restatement

(Reuters) - NEW YORK, June 20 - Maurice "Hank" Greenberg, the
former American International Group Inc. chief
executive, sued 16 current and former executives and directors,
seeking to hold them liable for a results restatement and $1.64
billion regulatory settlement he considered unnecessary.




The complaint was filed on Wednesday in Delaware Chancery
Court in response to a lawsuit that the world's largest insurer
filed last week against Greenberg and former Chief Financial
Officer Howard Smith, seeking more than $1 billion in damages.


Read more at Reuters.com Government Filings News

WRAPUP 1-Bush vetoes stem-cell bill, disappoints advocates

(Reuters) - WASHINGTON, June 20 - President George W. Bush
vetoed legislation on Wednesday that would expand federally
funded embryonic stem cell research, triggering an uphill
battle to override him in the Democratic-led U.S. Congress and
likely pushing the issue onto the 2008 election agenda.




Two-thirds majority votes would be needed in the Senate and
House of Representatives to overcome Bush's opposition and make
the bill law. Backers admitted they were short of support. A
few dozen of Bush's Republicans in Congress back the measure.


Read more at Reuters.com Bonds News

Bush signals more combative tone on spending

(Reuters) - Bush and the Democratic-led Congress, who sparred for several months this year over a funding bill for the Iraq war, are headed for a clash in coming months over measures to fund items from homeland security to education and health care.




Meeting with Republican leaders in the Oval Office, Bush said the budget that Democrats have been preparing would "increase spending by a significant amount" and charged that ultimately would mean higher taxes.


Read more at Reuters.com Bonds News

Fording to take C$80 million charge on trust tax

(Reuters) - The government said last October that existing trusts would
lose a key tax break by 2011. The trusts have been able to
escape paying most corporate taxes if they distributed the bulk
of their profits to unitholders.




Fording also said it would pay investors a quarterly
distribution of 65 Canadian cents a unit, unchanged from the
first quarter. The payment will be made on July 16 to investors
who hold the units on June 29.


Read more at Reuters.com Market News

Atticus repeats call for Barclays to scrap ABN bid

(Reuters) - Atticus has built a small stake in Barclays and earlier this month urged management to pull out of the deal. It said it had an "open and constructive discussion" with management on Wednesday, but had not changed its view.



"During this discussion we reiterated our view that while management is running the company well, the proposed acquisition of ABN is not in the best interests of the company or its shareholders," a spokesman for Atticus said.


Read more at Reuters.com Mergers News

Asian Stocks Trading in U.S. Fall For 1st Time in 6 days; Oil Stocks Drop

(Bloomberg) -- Asian stocks trading in the U.S. fell
for the first time in six days as a decline in oil and gold
prices dragged down BHP Billiton and other commodity shares.

The Bank of New York Co.'s Asia ADR Index, tracking the
region's American depositary receipts, slipped 0.7 percent to
167.84. It reached its highest in more than five years yesterday.


Read more at Bloomberg Stocks News

Dollar Financial plans to offer up to $150 mln senior notes

(Reuters) - It also plans to grant the initial purchasers an option to
buy up to an additional $22.5 million aggregate principal
amount of such notes to cover any over-allotments.





Read more at Reuters.com Bonds News

Harbinger may halt Openwave pursuit after Thursday

(Reuters) - Harbinger said that the deal would only close if a minimum of over 40.4 million shares are tendered, the company's board resigns and appoints Harbinger candidates announced last week, and other conditions.




Read more at Reuters.com Mergers News

Force Protection wins $221.7 million contract

(Reuters) - Earlier, the maker of ballistic- and mine-protected vehicles said it will produce 455 vehicles for the U.S. Marine Corps' Mine Resistant Ambush Protected vehicle program.




"The company had told the Street that they were expecting an order for over 2,000 units before the end of July, and this order is smaller than expected," Stanford Group analyst Josephine Millward said by phone.


Read more at Reuters.com Hot Stocks News

Brazilian Real Declines Amid Concern Demand for Riskier Assets May Drop

(Bloomberg) -- Brazil's currency declined for the
first time in six days on concern rising yields on U.S.
Treasuries will lessen the allure of riskier emerging-market
assets to international investors.

``Our markets are looking for direction abroad today, so
rising Treasury yields and speculation of higher rates in the
U.S. are throwing some cold water on investor's mood here,'' said
Francisco Carvalho, head of currency trading at Liquidez
Corretora in Rio de Janeiro, Brazil's second-biggest foreign
exchange brokerage.


Read more at Bloomberg Currencies News

Cotton Futures Climb to Three-Year High on China Demand, Supply Concerns

(Bloomberg) -- Cotton rose to a three-year high in
New York on speculation that China will increase imports of the
commodity while supplies may be curtailed because of dry weather
forecast for the U.S. Southeast.

China, the world's biggest cotton grower and importer, may
need to increase foreign purchases as domestic supplies dwindle,
a government committee said last week. Dry, hot weather is
expected to return to areas in Mississippi, Alabama and Georgia,
according to a note today from Lehman Brothers in New York. Those
states produced about 25 percent of the U.S. crop last year.


Read more at Bloomberg Commodities News

FED FOCUS-Labor supply debated as slower output looms

(Reuters) - But the pace at which labor supply growth will slow is far
from clear, as debate at a conference hosted by the Boston
Federal Reserve Bank this week showed, and the Fed faces a
tough task as it seeks to properly calibrate interest rates.




The outlook may be dire. A paper presented by Bruce Fallick
of the Federal Reserve Board and Jonathan Pingle at Brevan
Howard Asset Management showed the projected population aging
will lower the aggregate labor force participation rate by 6
full percentage points over the next 35 years.


Read more at Reuters.com Bonds News

Akzo to hold off on further ICI approach: source

(Reuters) - Sources familiar with the matter had told Reuters on Saturday, before the disclosure of the terms of AKZO's initial approach, that the company would likely make a further takeover approach to Imperial Chemical Industries Plc "soon".




However the Dutch company is now planning to wait to see whether a counterbid emerges -- and at what value -- before deciding on its next move, so that it does not offer more than it needs to, the source said on Wednesday.


Read more at Reuters.com Mergers News

TREASURIES-Prices sink on spillover from Euro bond weakness

(Reuters) - NEW YORK, June 20 - U.S. Treasury debt prices
sank on Wednesday, ending their three-day rally, as weakness in
the European government bond market spilled into its U.S.
counterpart.




Concern over global inflation was fanned as German Bunds fell
after central banks in Europe signaled concerns over growing
price pressures.


Read more at Reuters.com Bonds News

Inspire delays $8 mln payment to Spain's Faes

(Reuters) - The move was based on feedback from the U.S. Food and Drug
Administration, Inspire said.




"Inspire will have no financial obligations for the oral
program while Faes is conducting the additional clinical work.


Read more at Reuters.com Government Filings News

Brazilian Stocks Fall, Led by Petrobras, on Concern Strike May Hurt Output

(Bloomberg) -- Brazil's main index fell for a second
day on investor concern that a possible strike at state-controlled
oil company Petroleo Brasileiro SA will hurt output.

The Bovespa Index of the most-traded stocks on the Sao Paulo
exchange fell 291.02, or 0.5 percent, to 54,352.70 as of 11:48 a.m.
New York time. Petrobras fell 54 centavos, or 1.1 percent, to 51.10
reais.


Read more at Bloomberg Stocks News

Oil slumps nearly $2 on U.S. stockpile surprise

(Reuters) - The U.S. Energy Information Administration said crude stocks rose by 6.9 million barrels last week, well over the 100,000 barrels forecast by analysts. Gasoline stocks were up 1.8 million barrels, almost double the market forecast.




"The completely unexpected build in crude stocks is the surprise of the day. And it is very bearish," said Tim Evans, analyst at Citigroup Global Markets.


Read more at Reuters.com Hot Stocks News

Buyout firms defend themselves to UK parliament

(Reuters) - "My own experience in private equity in this country has
only been positive, it's been positive for the companies I've
been involved with," Robert Easton, managing director of Carlyle
Group, told the committee.




"Private equity is a force for good," said Dominic Murphy,
a partner in Kohlberg Kravis Roberts & Co. [KKR.UL].


Read more at Reuters.com Mergers News

GKN, Spirit lead race to invest in Airbus UK plant

(Reuters) - Others include France's Latecoere , which is
bidding to buy the nose and cockpit sub-assembly factory in
Meaulte, France, and OHB unit MT Aerospace, formerly
known as MAN Technologie, which wants to invest in Nordenham, a
German factory responsible for fuselage shells.




"There are at least two credible bidders for Filton," a
source familiar with the sale process said. Two sources said GKN
and Spirit were leading the competition to invest in Filton and
had also expressed interest in other European sites.


Read more at Reuters.com Mergers News

Wal-Mart expanding its financial services

(Reuters) - NEW YORK, June 20 - Wal-Mart Stores Inc. said on Wednesday that it intends to open 1,000 Wal-Mart MoneyCenters and launch a reloadable prepaid Wal-Mart MoneyCard, in a major expansion of financial services the retailer provides to its base of low-income customers.



The company earlier this year withdrew an application with U.S. bank regulators to operate a specialty bank in the face of immense opposition from politicians, consumer groups and community banks.


Read more at Reuters.com Bonds News

Gold hovers below 2-week high, sentiment positive

(Reuters) - Gold traded just below the previous day's two-week highs on Wednesday, but sentiment was friendly and traders said the precious metal had a good chance of adding to recent gains.

Spot gold was quoted at $657.90/658.50 an ounce by 1426 GMT, compared with $660.70/662.20 in New York late on Tuesday, when it rose to $661.40, its highest since June 7.


Read more at Reuters Africa

Mortgage applications drop

(Reuters) - The Mortgage Bankers Association's mortgage application index slid 3.4 percent to a seasonally adjusted 643.7 in the week ended June 15.




The drop in applications piled on to reports from the country's builders and the government this week suggesting any sustained housing rebound could be next year's business.


Read more at Reuters.com Business News

Crude Oil Falls From Nine-Month High After Inventories Climbed Last Week

(Bloomberg) -- Crude oil fell from a nine-month high
after an Energy Department report showed that U.S. oil and
gasoline stockpiles increased.

Crude-oil inventories surged 6.9 million barrels to 349.3
million in the week ended June 15, the report showed. Gasoline
supplies rose 1.79 million barrels to 203.3 million. Prices
gained the past two days on concern Nigerian shipments would be
disrupted further because of a general strike.


Read more at Bloomberg Commodities News

Fannie Mae sells $3.0 billion in bills

(Reuters) - Settlement is June 20-21.




Read more at Reuters.com Bonds News

US STOCKS-Higher open eyed on Home Depot, Morgan Stanley

(Reuters) - NEW YORK, June 20 - U.S. stocks headed for a
higher opening on Wednesday, helped by news of a $22.5 billion
share repurchase plan from Home Depot Inc. and
investment bank Morgan Stanley's stronger-than-expected
profit.




Shares of Home Depot, a component of the Dow Jones
industrial average , were up 5.7 percent in electronic
trade, while Morgan Stanley's stock rose 2 percent.


Read more at Reuters.com Market News

Crude Oil Falls From Nine-Month High on Forecast U.S. Fuel Supplies Rose

(Bloomberg) -- Crude oil fell from a nine-month high
on expectations that an Energy Department report will show U.S.
gasoline stockpiles increased for a seventh week.

Gasoline supplies rose 1.19 million barrels last week,
according to a Bloomberg News survey. Prices rose the past two
days on concern Nigerian shipments would be disrupted further
because of a general strike. The strike, which began at midnight,
has had no effect on production by Chevron Corp.'s Nigeria unit,
a company spokesman said.


Read more at Bloomberg Commodities News

Apple says iPhone to access YouTube content

(Reuters) - The iPhone will be the first mobile device to use the new format, Apple said. More than 10,000 videos will be available on the iPhone when it hit stores on June 29, with more material added each week.




AT&T Inc. has an exclusive deal to sell iPhones with its wireless subscriptions.


Read more at Reuters.com Business News

Circuit City withdraws earnings forecast

(Reuters) - Analysts, on average, had been expecting a loss of 32 cents a share, according to Reuters Estimates.




Net sales declined 4.3 percent to $2.49 billion from $2.60 billion. Sales fell short of analysts' expectation of $2.44 billion.


Read more at Reuters.com Hot Stocks News

Benchmark Treasury Yields Near Lowest in Two Weeks on Slowdown in Housing

(Bloomberg) -- Treasuries were little changed, with
benchmark 10-year note yields near the lowest in two weeks, on
expectations a housing slowdown will keep the Federal Reserve
from raising interest rates.

Ten-year note yields have dropped over the past week from a
five-year high on reports showing housing construction decreased
for the first time in four months and confidence among
homebuilders was the lowest since 1991.


Read more at Bloomberg Bonds News

U.K.'s FTSE 100 Index Rebounds, Paced by Man, BA; Xstrata, Vedanta Climb

(Bloomberg) -- U.K. stocks rose for the first time
in three days, led by British Airways Plc after Standard & Poor's
lifted its credit rating for the airline. Lloyds TSB Group Plc
advanced on speculation the bank may be a takeover target.

Man Group Plc climbed after posting an increase in assets
for its AHL fund. Xstrata Plc and Vedanta Resources Plc led
mining companies higher as base metal prices rallied. DSG
International Plc paced declining shares after the electronics
retailer said charges almost eliminated full-year profit.


Read more at Bloomberg Stocks News

Uranium Price May Rise to $200 a Ton in Year Before Falling, Investec Says

(Bloomberg) -- Uranium prices may rise to $200 a
pound within the next year because of a shortage of the nuclear
material, Investec Securities said.

The metal, currently trading at $138 a pound, may average
$160 a pound in 2009 before declining to an average of $50 a
pound from 2013, Leon Esterhuizen, a Johannesburg-based analyst
at Investec, wrote in the report yesterday that was obtained by
Bloomberg. Esterhuizen declined to comment on the report when
called on his mobile phone.


Read more at Bloomberg Energy News

Nigerian Unions Strike; Chevron Says No Impact Yet on Its Oil Production

(Bloomberg) -- Nigerian unions began a strike at
midnight to protest an increase in domestic fuel prices, labor
leaders said.

``The strike is on,'' John Odah, the general secretary of
Nigeria Labour Congress, an umbrella of union organizations, said
in a text message sent to Bloomberg late yesterday.


Read more at Bloomberg Emerging Markets News

Kuwaiti, Greek banks to examine Egypt's Al Watany

(Reuters) - Al Watany Bank of Egypt said on Wednesday the central bank had agreed to allow three banks, including two from Kuwait, to conduct due-diligence studies that could lead to potential offers for the bank.

A Watany Bank spokeswoman told Reuters the three banks were the National Bank of Kuwait, the Commercial Bank of Kuwait and Greek lender EFG Eurobank.


Read more at Reuters Africa

Sawiris says Martin Marietta stake is investment

(Reuters) - On Tuesday, Sawiris, chief executive of Egyptian cement
maker Orascom Construction , said NNS owned
nearly 450,000 Martin Marietta shares. It also owns options for
an additional 3.7 million shares that mature within 60 days.




NNS said it "wishes to make clear that this investment in
Martin Marietta is not being made by OCI and is entirely
separate from the activities of that company".


Read more at Reuters.com Mergers News

China's Yuan Rises to Highest Since Dollar Link Scrapped; Bonds Unchanged

(Bloomberg) -- The yuan climbed to the highest
since a dollar peg was scrapped in 2005 as traders speculated
China will allow gains to help ease the record trade surplus.
Bonds were little changed.

China said yesterday it will reduce export rebates on 2,831
products to help ease friction with other countries that has
caused some U.S. lawmakers to accuse the nation of artificially
keeping its currency low. The yuan should be allowed to move
more to help the government's foreign-currency manager operate,
said Li Yang, a former adviser to the central bank.


Read more at Bloomberg Currencies News

U.K. Natural Gas Day Ahead Drops to Six-Week Low on Rising Supply Forecast

(Bloomberg) -- U.K. natural gas for delivery a day
ahead fell to the lowest in more than six weeks after forecasts
showed supply may outstrip demand.

Gas for delivery a day ahead at the National Balancing
Point, the U.K. trading hub, dropped 1 percent to 20.1 pence a
therm, the lowest since May 8, according to prices on Bloomberg
from broker ICAP Plc. That equals $4 a million British thermal
units. A therm is 100,000 Btus. Gas for same-day delivery traded
at 20 pence a therm.


Read more at Bloomberg Energy News

Kaupthing, Arcelor, Ericsson, Cofidis to Sell Debt: European Bond Alert

(Bloomberg) -- The following is a list of bond
sales denominated in euros or pounds and expected in the coming
days and weeks.

Investment-Grade Sales


Read more at Bloomberg Bonds News

Mortgage Rate Increase Pushes U.S. Housing Market, Economy to `Blood Bath'

(Bloomberg) -- The worst is yet to come for the
U.S. housing market.

The jump in 30-year mortgage rates by more than a half a
percentage point to 6.74 percent in the past five weeks is
putting a crimp on borrowers with the best credit just as a
crackdown in subprime lending standards limits the pool of
qualified buyers. The national median home price is poised for
its first annual decline since the Great Depression, and the
supply of unsold homes is at a record 4.2 million, according to
the National Association of Realtors.


Read more at Bloomberg Exclusive News

JGBs edge up on weak sentiment data, Treasury gains

(Reuters) - JGBs were also supported by a rise in U.S. Treasuries, which
extended gains for a third session on Tuesday and further
recovered from the heavy sell-off of the past few weeks.




Comments from Bank of Japan Deputy Governor Toshiro Muto kept
intact market expectations that the BOJ will lift rates to a
12-year high of 0.75 percent in August.


Read more at Reuters.com Bonds News

Thailand's Trade Surplus Widens as Exports Surge to Record, Imports Slow

(Bloomberg) -- Thailand's trade surplus widened in
May as rice, rubber and electronics product shipments increased
to a record, outpacing imports, the commerce ministry said.

The trade surplus rose to $800 million in May, compared
with $256 million a month earlier, Commerce Minister Krirk-Krai
Jirapaet said in a press briefing in Bangkok today.


Read more at Bloomberg Emerging Markets News