US stock indexes erase gains on credit concerns

(Reuters) - U.S. stocks erased early gains and the Nasdaq index turned negative on Monday, less than 20 minutes into the session following Friday's sharp losses on credit-related concerns.

The Dow Jones industrial average was up 15.20 points, or 0.12 percent, at 13,197.11. The Standard & Poor's 500 Index


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Merrill Upgraded at UBS; Says Mortgage-Loss Risks Are Priced Into Stock

(Bloomberg) -- Merrill Lynch & Co. was raised to
``buy'' from ``neutral'' at UBS AG, which said the stock was
inexpensive after concern about losses in credit businesses drove
down the price of the world's biggest brokerage.

The shares rose $1.05 to $71.10 in trading before the open
of U.S. exchanges. Merrill ended last week down 25 percent this
year, compared with a 13 percent decline for the Standard and
Poor's 500 Financials Index.


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SAIC in talks on cooperation with Shanghai Engine

(Reuters) - SHANGHAI, Aug 6 - The parent companies of China's biggest car maker, Shanghai Automotive Co. , and engine manufacturer Shanghai Diesel are in initial talks on a possible business alliance, an executive at one of the companies said on Monday.



SAIC Motor Corp., the parent of Shanghai Auto, and Shanghai Electric Group Co. , which controls 50.32 percent of Shanghai Diesel Engine Co. , are discussing ways to cooperate in the engine business, an SAIC official, who asked not to be identified, told Reuters.


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UPDATE 1-Orbotech posts quarterly net loss as sales fall

(Reuters) - Orbotech, which makes automated inspection systems for
printed circuit boards and flat panel displays ,
posted a net loss of $3.4 million, or 10 cents per share,
compared with a year-earlier net profit of $15.3 million, or 46
cents per share.




Net loss in the second quarter included a $4.8 million
write-off of high-end PCB inventory from a previous generation,
and a $5 million write-off as the company decided against
investing further in Negevtech Ltd.


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Citigroup Unit to Buy $1.7 Billion of Bonds Convertible Into Fujitsu Stock

(Bloomberg) -- Fujitsu Ltd., Japan's biggest
computer-services company, will sell 200 billion yen ($1.7
billion) of bonds convertible into its stock to a unit of
Citigroup Inc.

Citigroup Global Markets Ltd. will buy 100 billion yen of
convertible bonds maturing in May 2010 and another 100 billion
yen due the following year, Tokyo-based Fujitsu said in a
statement today.


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Zoltek and certain shareholders to offer 4 mln shares

(Reuters) - The offering will consist of 3.6 million shares to be sold
by the company and 400,000 shares to be sold by certain selling
shareholders of the company.





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Lead May Plummet as Xstrata, Doe Run Increase Production, Ending Squeeze

(Bloomberg) -- Lead, the best-performing commodity
in 2007, has peaked and may plummet for the rest of the year.

A supply squeeze that doubled prices will ease by the end
of the year, say JPMorgan Chase & Co. and UBS AG. A U.K.
refinery run by Xstrata Plc is increasing shipments, and
companies are recycling more of the metal. Doe Run Resources
Corp., the world's second-largest lead refiner, will begin full
output this month after an explosion at its Missouri smelter cut
production. Ivernia Inc. plans to resume exports from Australia.


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Mobile-8 Telecom of Indonesia Postpones $150 Million High-Yield Bond Sale

(Bloomberg) -- PT Mobile-8 Telecom, an Indonesian
mobile-phone operator that counts Qualcomm Inc. as an investor,
delayed its plan to sell $150 million of bonds because of
concerns about the financial markets.

Investors have been selling riskier assets including
investments in emerging markets on concerns losses in the U.S.
mortgage market will erode economic growth. The Morgan Stanley
Capital International Asia Pacific Index fell 1 percent to
151.34 as of 4 p.m. Jakarta time.


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Credit Suisse Strategists Drop 7-Year-Old Negative Stance on U.S. Stocks

(Bloomberg) -- Credit Suisse Group's equity
strategists, who have been bearish on U.S. stocks since 2000,
recommended investors increase holdings of shares as a refuge
amid slowing global economic growth.

Investors should have 46.8 percent of their global equity
holdings in U.S. shares, matching a ``benchmark'' stance, a team
led by Andrew Garthwaite wrote in a report to clients today.
That's an increase from an allocation of 36.8 percent. The
strategists stopped short of an ``overweight'' recommendation.


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UPDATE 1-ICI opens books to Akzo after raised $16.3 bln bid

(Reuters) - LONDON, Aug 6 - Britain's Imperial Chemical
Industries has opened its books to Akzo Nobel
after receiving an improved 8 billion-pound
takeover proposal from its Dutch suitor, it said on Monday.




ICI, the maker of Dulux paints, said the new proposal was
670 pence a share in cash, up from the 650 pence a share it
rejected last week.


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Bank of Communications May Join Hang Seng Index, Nomura, Tung Tai Project

(Bloomberg) -- Bank of Communications Ltd., part
owned by HSBC Holdings Plc, may join Hong Kong's Hang Seng Index
after a quarterly review of the stock benchmark, Nomura Holdings
Inc. and Tung Tai Securities Ltd. said.

China Overseas Land & Investment Ltd., a Hong Kong-based
developer controlled by the nation's construction ministry, also
may be added, Sandy Lee, an analyst at Nomura, forecast in a
research report dated July 30. HSI Services Ltd., which compiles
Hong Kong's stock indexes, will announce the changes Aug. 10,
according to its Web site.


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FTSE 100 Drops, Wiping Out Advance for Year, Led by Northern Rock, Invesco

(Bloomberg) -- U.K. stocks fell for a second day,
wiping out the benchmark FTSE 100 Index's gains for 2007.
Financial companies including Northern Rock Plc, a mortgage
lender, and Invesco Plc, a money manager, led the retreat.

The FTSE 100 Index declined 24.40, or 0.4 percent, to
6199.90 at 8:40 a.m. in London, for a loss this year of 0.3
percent. The FTSE All-Share Index slipped 14.18, or 0.4 percent,
to 3209.66. Ireland's ISEQ Index dropped 157.91, or 1.8 percent,
to 8437.32.


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Pound Falls Against Euro as Traders Reduce Bets on Interest-Rate Increases

(Bloomberg) -- The pound declined against the euro as
investors cut expectations the Bank of England will raise
interest rates this year for a sixth time.

Traders are betting on one more rate increase on signs
borrowing costs at a six-year high are beginning to slow the
economy. The European Central Bank, by contrast, will raise rates
at least twice more, futures trading shows. Economists predict
U.K. industrial production almost stalled in June, adding to
signs the economy may be losing momentum.


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Spain's Abengoa says buys Brazil's Dedini Agro

(Reuters) - Abengoa will assume an additional 281 million euros of debt,
it said, adding it was now the world's only bio-ethanol producer
present in the three biggest markets: Brazil, Europe and the
United States.




As of a year ago, Dedini Agro was Brazil's 16th largest
ethanol producer with around 0.4 percent of national output.


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Infineon plans to cut Qimonda stake by 2009 AGM

(Reuters) - "The plan also envisages taking all necessary measures at
the Annual Shareholder Meeting 2008 required to enable
distrubution of Qimonda shares as a dividend in kind to Infineon
shareholders," the statement said.




Such a dividend would be possible after the 2009
shareholders' meeting.


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