Wall Street droops as oil tops $69 a barrel

(Reuters) - U.S. stocks slipped on Monday as oil climbed toward a 10-month high near $70 a barrel, taking a toll on energy-dependent sectors, while more worrisome data from the housing sector weighed on home builders.

Adding to the wary mood, The Wall Street Journal said Merrill Lynch & Co. took control of $400 million of loan assets underlying a troubled hedge fund at Bear Stearns Cos. Inc. Merrill was a chief lender to the fund, which was heavily invested in subprime loans.


Read more at Reuters Africa

Algeria plans to develop solar power for export

(Reuters) - Algeria plans to make use of its hot southern desert to develop solar power for export and domestic consumption, the OPEC member country said on Monday.

The scheme is due to be completed by 2015 in Africa's second-largest country, where most of the 33 million peopele live in the northern coastal strip. Temperatures in the desert south are high.


Read more at Reuters Africa

Gold Little Changed as Decline in Dollar Boosts Appeal of Precious Metal

(Bloomberg) -- Gold was little changed in Asia amid
speculation a decline in the dollar may boost the appeal of the
precious metal as a hedge against the U.S. currency.

Gold often moves in the opposite direction to the dollar,
which fell for a second day against the euro after a report
yesterday showed U.S. homebuilders' confidence fell, according to
traders including Osao Iizuka at Sumitomo Trust & Banking Co.


Read more at Bloomberg Commodities News

UPDATE 3-BHP eyeing rival bid for Alcan - sources

(Reuters) - NEW YORK/SYDNEY, June 19 - BHP Billiton Ltd.
, the world's largest mining group, is considering a
bid to rival a $28.7 billion offer for aluminium producer Alcan
Inc. , and has hired investment bank Merrill Lynch & Co.
, sources familiar with the matter said.




The emergence of BHP as a possible white knight in the face
of Alcoa Inc.'s hostile offer for Alcan came as Alcoa's
stock hit a six-year high on a report that the U.S. aluminum
company, and not its Canadian rival Alcan, was a target of BHP.
Alcoa stock eased to close less than 1 percent higher.


Read more at Reuters.com Mergers News

ING Agrees to Buy Oyak Bank for $2.67 Billion, Adding Branches in Turkey

(Bloomberg) -- ING Groep NV, the Netherlands'
biggest financial-services company, agreed to buy Oyak Bank
of Turkey for $2.67 billion.

Oyak Bank has 1.2 million ``active retail customers''
and 360 branches in Turkey, Amsterdam-based ING said in a
statement sent via Hugin today.


Read more at Bloomberg Emerging Markets News

Cemex, Gerdau, Perdigao, Sadia, IXE Grupo Financiero: Latin Equity Preview

(Bloomberg) -- The following stocks may make
significant gains or losses in Brazil and Mexico today. Symbols
are in parentheses after the company name, and stock prices are
from the last session.

In Brazil, preferred shares are the most commonly traded
class of stock.


Read more at Bloomberg Stocks News

April Group, Aeroports de Paris, EADS, Millimages: French Equity Preview

(Bloomberg) -- Shares of the following companies
may rise or fall on the Paris stock exchange. Stock symbols are
in parentheses and prices are from the last close.

The CAC 40 Index declined 18.13, or 0.3 percent, to
6087.15. The SBF 120 Index also fell 0.3 percent.


Read more at Bloomberg Stocks News

Australian Shares Decline, Led by BHP Billiton, Rio Tinto on Lower Metals

(Bloomberg) -- Australian stocks fell, snapping three
days of gains. BHP Billiton Ltd. and Rio Tinto Group dropped after
metals prices declined.

``The bullishness we've seen among the mining stocks over the
past few years hasn't taken account of the risk of the global
economy slowing,'' said Angus Gluskie, who manages about $380
million at White Funds Management in Sydney. ``We have been very
aware of the potential for an economic pullback and so we haven't
been as keen on resources stocks as other investors.''


Read more at Bloomberg Stocks News

Indian Explorers Lose Oil Rigs as Mexico, U.K. Step Up Offshore Drilling

(Bloomberg) -- Indian oil explorers led by Oil &
Natural Gas Corp. are losing rigs to rivals in countries such as
Mexico and U.K. as higher prices spur drilling, a report by
service provider Baker Hughes Inc. shows.

The number of rigs used in India slipped to 81 in May from
86 in January, Baker Hughes said in a monthly report on its Web
site June 15. At the same time, the worldwide total excluding
the U.S., Canada, Sudan and Iran, increased to 1,007 from 972.


Read more at Bloomberg Emerging Markets News

ICICI Bank Lifts Indian Rupee Forecast as Central Bank May Allow Gains

(Bloomberg) -- ICICI Bank Ltd., India's biggest
lender by market value, raised its forecast for the Indian rupee
because the central bank has accepted that a flood of investment
will strengthen the currency.

Trade Minister Kamal Nath aims to double foreign direct
investment into India to $30 billion this year. More funds may
flow in as ICICI Bank prepares to raise as much as 175 billion
rupees ($4.3 billion) at home and overseas in the nation's
biggest share sale.


Read more at Bloomberg Currencies News

RPT-UPDATE 2-Michael Jackson settles breach of contract claim

(Reuters) - NEW YORK, June 18 - Pop star Michael Jackson
reached a settlement on Monday with a New Jersey financial
company that brought a $48 million breach-of-contract lawsuit
against him.




Prescient Acquisition Group, which claimed Jackson reneged
on payments he owed for helping him refinance more than $200
million in bank loans, settled with the entertainer as the case
was about to go to trial in U.S. District Court in Manhattan.


Read more at Reuters.com Bonds News

South Korea's Kospi Index Falls, Led by Posco, Kookmin Bank, Hyundai Motor

(Bloomberg) -- South Korea's benchmark stock index,
the Kospi Index, fell 0.05 percent at 9:05 a.m.

The index of 730 companies traded on the Korea Exchange
fell 0.88 to 1,806.00. Among the stocks in the index, 290 rose,
244 fell and 196 were unchanged.


Read more at Bloomberg Stocks News

New Zealand Dollar May Strengthen Versus Yen as High Yields Lure Investors

(Bloomberg) -- New Zealand's dollar traded near the
strongest in almost 20 years against the yen as investors were
attracted to returns from the nation's higher yields.

The currency has gained 31 percent against the yen in the
past 12 months, buoyed by so-called carry trades where investors
borrow yen at lower interest rates to buy higher-yielding assets
elsewhere. The Bank of Japan kept its benchmark rate at 0.5
percent last week, the lowest among major economies and 7.5
percentage points below New Zealand's key rate.


Read more at Bloomberg Bonds News

Mitsubishi Corp., Sansei Foods, Watami, Bit-isle: Japanese Equity Preview

(Bloomberg) -- The following stocks may move in
Japanese markets tomorrow. Prices are as of the close of trading.
Statements were released after the close. Stock symbols are in
parentheses.

Bit-isle Inc. (3811 JX): The Internet data center operator
said it will sell 15,000 new shares at 110,000 yen per share to
CSK Holdings Corp. (9737 JT), a computer-related services company.
The transaction will increase CSK's stake in Bit-isle to 10.97
percent from 2.16 percent, making CSK the third-largest
shareholder. Bit-isle climbed 8,000 yen, or 7.3 percent, to
118,000. CSK rose 50 yen, or 1.2 percent, to 4,270.


Read more at Bloomberg Stocks News

UPDATE 4-GE/Pearson consider Dow Jones bid, outcome unclear

(Reuters) - One possibility being considered could see the controlling
Bancrofts keep an interest in Dow Jones, which owns the Wall
Street Journal, that source said. That confirmed earlier
reports by the Financial Times and the Wall Street Journal.




General Electric owns the CNBC business television channel,
and faces competition from News Corp., which is
launching a business news channel of its own. Pearson owns the
pink-paged business paper the Financial Times and competes with
the Wall Street Journal.


Read more at Reuters.com Bonds News

UPDATE 1-Healing conflict at World Bank not easy -Zoellick

(Reuters) - BRASILIA, June 18 - Healing the wounds and
conflicts at the World Bank will be a difficult task in the
aftermath of an ethics scandal, Robert Zoellick, the bank's
likely next president, said on Monday.




"My role as a potential CEO is to try to heal this
institution, overcome some of the conflicts, the bruises, the
wounding, the frustrations," Zoellick told a news conference in
the Brazilian capital at the end of a two-week tour through
Africa, Europe and Latin America.


Read more at Reuters.com Bonds News

Astro, China Southern Air, Hanjin, Santos: Asia Ex-Japan Equity Preview

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

Airports of Thailand Pcl (AOT TB): The operator of six
airfields across Thailand said its passenger numbers rose 4.7
percent to 4.19 million travelers in May, the smallest gain this
year. Plane arrivals and departures rose 12 percent from a year
earlier to 32,141, based on date from its Web site. The stock was
unchanged at 58.50 baht.


Read more at Bloomberg Stocks News

TREASURIES-Bonds rise, supported by housing weakness

(Reuters) - NEW YORK, June 18 - U.S. government debt prices
rose on Monday posting a second straight session of gains for
the first time in a month after surprisingly stark signs of
further deterioration in the housing market.




With benchmark yields well off last week's five-year highs
above 5.30 percent, a move stoked by investors' worries about
global economic growth and central banks' raising interest
rates, higher yields have attracted more buyers, helping
Treasuries find a foothold, analysts said.


Read more at Reuters.com Bonds News

US mortgage rates fell on Monday - BestInfo

(Reuters) - The 30-year mortgage rate with one upfront point fell 1/8
of a percentage point to 6-3/4 percent.




The 30-year mortgage rate with two upfront points fell 1/8
of a percentage point to 6-1/2 percent.


Read more at Reuters.com Bonds News

Emerging debt-Prices rise on firmer Treasuries

(Reuters) - Overall emerging markets returns climbed 0.32 percent on JP
Morgan's EMBI+ index , while yield spreads over U.S.
Treasuries, an important measure of risk aversion, tightened 2
basis points to 151 basis points, close to an all-time low of
149 basis points.




Brazil's portion of the index tightened 4 basis points, to a
new record low of just 137 basis points, while the country's
global bond due 2040 , the most liquid emerging
market paper, rallied 0.438 point to be bid 131.938.


Read more at Reuters.com Bonds News

TREASURIES-Bonds edge up, bolstered by housing weakness

(Reuters) - NEW YORK, June 18 - U.S. government debt prices
edged up on Monday after signs of further deterioration in the
housing market underscored weakness in a key area of the U.S.
economy.




With benchmark yields well off last week's five-year highs
above 5.30 percent, a move stoked by investors' worries about
global economic growth and central banks' raising interest
rates, higher yields have attracted more buyers, helping
Treasuries find a foothold, analysts said.


Read more at Reuters.com Bonds News

Pimco's McCulley Says `Conundrum' to Unwind as Central Banks Diversify

(Bloomberg) -- Yields on longer-maturity Treasuries
are likely to climb as foreign central banks diversify their
holdings, said Paul McCulley, a bond fund manager at Pacific
Investment Management Co.

``The bond community is recognizing in the years ahead the
conundrum is going to be reversed as foreign central banks moved
out the risk spectrum,'' McCulley said in an interview from
Newport Beach, California.


Read more at Bloomberg Bonds News

UPDATE 1-Final arguments unfold at Conrad Black trial

(Reuters) - CHICAGO, June 18 - Conrad Black and his
associates systematically stole $60 million from the publishing
empire they once ran and then tried to hide what they did,
prosecutors told jurors in final arguments at the former media
baron's criminal fraud trial on Monday.




"We are not here because somebody made mistakes. We are not
here because somebody didn't disclose something in a timely
fashion," prosecutor Julie Ruder told the 12 women and four men
as the trial entered its 14th week.


Read more at Reuters.com Bonds News

UPDATE 1-JPMorgan names Smith card chief, Srednicki retires

(Reuters) - Smith joins from American Express Co. , where he had
spent his entire career of more than 25 years, most recently as
president of the global commercial card group. He led American
Express' consumer card services group from 2001 to 2005.




At JPMorgan, Smith will join the operating committee and
report to Chief Executive Jamie Dimon. The appointment is
effective immediately. None of the executives was immediately
available for comment.


Read more at Reuters.com Bonds News

Chrysler, Getrag to detail Indiana investment

(Reuters) - Getrag bought land in Tipton earlier this year to develop a
transmission plant after announcing that it had agreed to
supply new technology to DaimlerChrysler AG .




A Chrysler spokesman declined to provide further detail
ahead of Monday's announcement. A representative for Getrag,
which has supplied transmissions for Chrysler's PT Cruiser,
would not be immediately reached.


Read more at Reuters.com Bonds News

UPDATE 2-Labopharm gets Canada nod for once-daily tramadol

(Reuters) - Health Canada approved 100-milligram, 200-milligram and
300-milligram tablets of the once-daily version for sale.




The go-ahead comes a little more than two weeks after
Labopharm said the U.S. Food and Drug Administration declined
to approve its tramadol formulation until further conditions
are met.


Read more at Reuters.com Government Filings News

Yen Drops to Record Low as Bank of Japan Interest Rate Spurs Carry Trades

(Bloomberg) -- The yen dropped to a record low
against the euro and sank to the weakest in more than four years
against the dollar as investors sought higher-yielding assets
funded by loans in Japan.

The Japanese currency also declined to a 15-year low versus
the British pound as the nation's lowest interest rates among
major economies encouraged the so-called carry trades. The Bank
of Japan kept borrowing costs at 0.5 percent last week and
signaled further increases will be gradual.


Read more at Bloomberg Currencies News

FTSE falls as inflationary fears offset ICI glee

(Reuters) - The UK's leading share index drifted 0.4 percent lower on Monday, buckling under concerns over the outlook for inflation, but as ICI surged after rejecting an approach from Dutch group Akzo Nobel NV.

Bucking the trend in a sliding market, ICI soared more than 15 percent, leading the index after rejecting a 7.2 billion pounds takeover proposal from chemicals group Akzo Nobel.


Read more at Reuters Africa

Rand firms on appetite for high-yield risk

(Reuters) - South Africa's rand gained on the dollar on Monday, boosted by continued investor appetite for high-yielding currencies and stronger emerging markets in general.

The local unit was trading at 7.0875 against the greenback ay 1520 GMT, 0.5 percent firmer than its previous New York close and extending a rebound from a 2-1/2 month low of 7.3645 hit on June 8.


Read more at Reuters Africa

CHRONOLOGY: Chemicals company ICI's major M&A deals

(Reuters) - Here is a chronology of major M&A deals involving ICI in recent years:




Sept 25, 1990 - Anglo-Dutch foods-to-detergents conglomerate Unilever's U.S. subsidiary acquires the assets of the Katalco hydrotreating catalysts business from ICI for about 5 billion pounds .


Read more at Reuters.com Mergers News

Platinum Gains on Production Curb at South African Mine; Palladium Climbs

(Bloomberg) -- Platinum rose in New York after
Anglo Platinum Ltd., the world's largest producer, said it will
cut production at its biggest mine. Palladium also advanced.

Output at the mine in Rustenburg, South Africa, will drop
by as much as 15,000 ounces. The company plans to improve safety
after five workers were killed at the mine in the past two
weeks.


Read more at Bloomberg Commodities News

Mexican stocks rise, led by America Movil gains

(Reuters) - The benchmark 10-year government peso bond
gained 0.253 point in price, pushing its yield down 4 basis
points to 7.62 percent.




Shares of America Movil , one of Latin America's
most closely watched companies, led the rally, advancing 0.96
percent to 34.69 pesos. Its New York traded shares rose
0.52 percent to $64.26.


Read more at Reuters.com Bonds News

U.S. Stocks Decline as Bond Yields Rise; Exelon Leads Utility Shares Lower

(Bloomberg) -- U.S. stocks fell for the first time
in four days after an advance in bond yields sent shares of
utilities lower.

The Standard & Poor's 500 Index declined 1.94, or 0.1
percent, to 1530.97 as of 10:17 p.m. in New York. The Dow Jones
Industrial Average slipped 3.9 to 13,635.58. The Nasdaq
Composite Index retreated 5.88, or 0.2 percent, to 2620.83.


Read more at Bloomberg Stocks News

Copper Futures Gain for 4th Straight Session as Strikes Threaten Supplies

(Bloomberg) -- Copper futures rose for the fourth
straight session in New York as miners threatened strikes in
major producers including Chile, the world's biggest source of
the metal.

Contract workers at Codelco, the world's biggest copper
producer, plan to walk off the job on June 20 and employees at
the company's largest division may set up blockades to pressure
management to boost bonuses. Copper rose to a record in May 2006,
partly because labor unrest disrupted supplies.


Read more at Bloomberg Commodities News

Precision Castparts acquires Caledonian Alloys Group

(Reuters) - The acquisition, which is expected to be completed in the
second quarter of fiscal 2008, will immediately add to
earnings, the company said in a statement.





Read more at Reuters.com Mergers News

UPDATE1-China Medical Q4 net income rises, gives fiscal '07 view

(Reuters) - Shares of the company rose almost 9 percent to $29.65 in
early electronic trade on Monday.




The Chinese medical device company expects fiscal 2007
revenue to rise 51.7 percent to 59.1 percent.


Read more at Reuters.com Market News

South African Rand Gains Against Dollar as Investors Seek Higher Yields

(Bloomberg) -- The South African rand rose for a
fourth day, touching a two-week high, as investors returned to
the so-called carry trade in search of higher yields.

The rand was the second best-performing major currency
versus the dollar today as traders took advantage of the
relatively high interest rates in Africa's biggest economy.
Investors bought the country's assets, funding their purchases by
borrowing in the low interest rate Japanese yen and Swiss franc,
both of which fell to record lows against the euro today.


Read more at Bloomberg Currencies News

European Yields Hold Near Six-Year High on Policy Maker's Hawkish Remarks

(Bloomberg) -- European two-year note yields held
near the highest in more than six years as European Central Bank
official Jose Manuel Gonzalez-Paramo said monetary policy was
still accommodative, indicating interest rates in the region have
further to rise.

The drop in benchmark debt also sent 10-year bund yields to
near their strongest since August 2002 as traders add to bets the
ECB will lift borrowing costs twice more this year. Germany's
Bundesbank said in a report today first-quarter growth in
Europe's largest economy was ``remarkable.''


Read more at Bloomberg Bonds News

IBM sees software acquisitions key to profit rise

(Reuters) - International Business Machines Corp. is banking on software, which accounts for 20 percent of revenue but generates 40 percent of pretax earnings, to lift overall profitability of a company that spans computer hardware, services and software.




Gross profit margins at the company's software unit, led by Steve Mills, are typically the highest of IBM's four main businesses and stood at 83.6 percent in the first quarter. The hardware unit's profit margin, by comparison, was 34.8 percent, and global technology services came in at 29.2 percent.


Read more at Reuters.com Business News

U.K. FTSE 100 Stocks Including Vodafone Drop; ICI, Prudential Shares Rise

(Bloomberg) -- U.K. stocks including Vodafone Group
Plc, the world's largest mobile-phone company, fell.

Imperial Chemicals Industries Plc paced advancing shares.
The U.K. maker of Dulux and Glidden paints rejected a 7.2
billion-pound ($14.2 billion) bid from Akzo Nobel NV of the
Netherlands as too low. Shares of Prudential Plc also gained.


Read more at Bloomberg Stocks News

South African Stocks Advance, Led Higher by Impala Platinum and MTN Group

(Bloomberg) -- South African shares rose for a
fourth day, led by Impala Platinum Holdings Ltd. as the price of
the precious metal climbed the most in more than two weeks.

MTN Group Ltd., Africa's biggest publicly trade mobile phone
company, also gained.


Read more at Bloomberg Emerging Markets News

Israel blocks shipments bound for Gaza: letter

(Reuters) - Israel wants to isolate Hamas Islamists -- economically, diplomatically and militarily -- in the Gaza Strip, while allowing funds and trade to flow to the Western-backed emergency government set up in the occupied West Bank by Palestinian President Mahmoud Abbas.




"Given recent developments in the Gaza Strip and the closure of crossings between it and Israel, I hereby inform you that no cargo destined for the strip is to be released until further notice," an Israeli Finance Ministry official in charge of customs told international customs agents in the June 17 letter.


Read more at Reuters.com Bonds News

Miner Metorex says in talks, shares jump

(Reuters) - South African junior mining firm Metorex Ltd said on Monday it was in talks, sending its shares surging.

Metorex said in a statement to the stock exchange it had entered into talks that may have an effect on its share price, giving no further details.


Read more at Reuters Africa

U.K. Pound Gains Before Bank of England Minutes Back Case for Higher Rates

(Bloomberg) -- The pound rose to the highest in more
than a week against the dollar on speculation the minutes of the
Bank of England's last meeting will reinforce the case for higher
interest rates.

Since the June 7 meeting, Governor Mervyn King and policy
maker Paul Tucker have again expressed concern about inflation,
underpinning expectations of an increase in borrowing costs. The
BOE will release the minutes on June 20. The pound also gained as
accelerating house prices added to the case for higher rates.


Read more at Bloomberg Currencies News

Cadence Design buyout talks stall over price-NYT

(Reuters) - At $6.5 billion, Cadence may be too expensive for the firms,
the Times said. The Times first reported interest in Cadence on
June 4.




Neither Blackstone, KKR nor Cadence immediately returned
calls seeking comment.


Read more at Reuters.com Mergers News

European shares mixed in early trade; ICI sparkles

(Reuters) - European shares were mixed early on Monday as acquisition talk spurred gains in British chemicals group ICI but French stocks underperformed after President Nicolas Sarkozy failed to win a forecast landslide in parliamentary polls.

At 0718 GMT, the FTSEurofirst 300 index of top European shares was up 0.03 percent at 1,626.38 points, after rising 3.7 percent last week.


Read more at Reuters Africa

Rand holds firm vs dollar

(Reuters) - South Africa's rand stayed on firm ground against the dollar in quiet Monday trade, and should take direction during the session from overseas market trends, traders said.

At 0640 GMT the domestic currency was trading at 7.1060 per dollar, 0.2 percent stronger than its New York close of 7.1225 on Friday and pulling back from an earlier slip to 7.14/dollar.


Read more at Reuters Africa