Yield rises at Egyptian 63-day deposit auction

(Reuters) - The average yield rose at a 63-day deposit auction by the Central Bank of Egypt on Wednesday to 9.049 percent from 8.986 percent a week earlier.

The bank accepted bids for 1.51 billion Egyptian pounds ranging from 8.9 to 9.12 percent, the central bank said.


Read more at Reuters Africa

S.Africa's Mboweni warns interest rate "too low"

(Reuters) - South Africa's central bank Governor, Tito Mboweni, warned on Wednesday that interest rates may be too low, hinting they may have to rise again in Africa's biggest economy.

"Maybe we have been far too nice to our people and interest rates have been too low," he told a dinner in Pretoria, adding that inflation data released on Wednesday was disappointing.


Read more at Reuters Africa

UPDATE 2-Yamana, Northern Orion bid for Meridian Gold

(Reuters) - They said a three-way combination would create a gold
producer with a strong presence in Latin America, producing 1.4
million ounces of gold per year by 2009, more than double the
combined 2006 level. It would control six mining and development
projects in Brazil, Chile and Argentina.




Under the deal Northern Orion shareholders would receive
0.543 of a Yamana share, or C$7.07 based on Yamana's Wednesday
closing price. Meridian shareholders would receive 2.235 of a
Yamana share plus C$3.15 in cash, Yamana and Northern said.


Read more at Reuters.com Mergers News

Asian Oil-Product Tanker Rates Rise After Japan's Product Inventory Falls

(Bloomberg) -- Asian freight rates for shipping
jet fuel, gasoline and other clean petroleum products were
mostly higher on a dearth of vessels and may rise in the next
few days following a drop in Japan's oil product inventories.

The cost of hiring medium-range or MR tankers capable of
shipping 30,000-ton oil-product cargoes on the benchmark
Singapore-Japan rose for a third straight day, according to the
London-based Baltic Exchange. It added 2.2 percent to
Worldscale 203.33 yesterday, up 2.6 percent from June 22.


Read more at Bloomberg Energy News

Converium, Escada, Iberdrola, Merck, Tod's, UBS: European Equity Preview

(Bloomberg) -- The following stocks may rise or
fall in European markets. Prices are from the last close.

The Dow Jones Stoxx 600 fell 0.5 percent to 387.69. The Dow
Jones Stoxx 50 Index declined 0.3 percent to 3886.99. The Euro
Stoxx 50 Index, a benchmark for the 13 nations using the euro,
fell 0.5 percent to 4412.12.


Read more at Bloomberg Stocks News

Yen Recoups Loss as Traders Reduce Selling Before Fed Ends Rate Meeting

(Bloomberg) -- The yen recouped losses against the
dollar and euro as traders reduced bets on a weaker currency
before a Federal Reserve meeting that ends today.

The Fed is expected to keep its target rate for overnight
lending between banks at 5.25 percent. Futures show traders
priced in higher odds of an interest-rate cut this year. Japan's
yen had snapped a three-day winning streak, declining against 14
of the 16 most-active currencies, after U.S. stocks gained.


Read more at Bloomberg Currencies News

Japanese Government Bonds Drop, Halting Four-Day Rally, as Stocks Advance

(Bloomberg) -- Japan's government bonds dropped,
halting a four-day advance, after gains in stocks reduced demand
for debt.

Benchmark 10-year bonds ended the longest rally since March
as investors stayed away from securities with the lowest yields
in almost three weeks. The gain in stocks outweighed a
government report today that showed an unexpected decline in
industrial production.


Read more at Bloomberg Bonds News

Japanese Shares Rise as Yen Weakens; Honda Leads Gains, Bridgestone Jumps

(Bloomberg) -- Japanese stocks advanced, helping
the Nikkei 225 Stock Average rebound from a four-day slide,
after the yen reversed a strengthening trend and some U.S.
investment houses said they see few risks of widespread turmoil
in credit markets.

Honda Motor Co. jumped 2.3 percent, after sliding 1.6
percent during the past three sessions as the yen strengthened
and a weakening U.S. housing market increased concern consumer
demand would be curbed and that investors would favor bonds over
stocks. Toyota Motor Corp. rose after Goldman, Sachs & Co.
lifted its recommendation on the shares to ``buy.''


Read more at Bloomberg Stocks News

UPDATE 1-Image Entertainment post Q4 loss; sees 2008 profit

(Reuters) - "This quarter's loss is primarily because of the write-off
of distribution and music publishing advances paid to and on
behalf of one of our content providers, Source Entertainment,"
Chief Executive Martin Greenwald said in a statement.




He added that they also continue to accrue legal and other
expenses related to their takeover by BTP Acquisition Co. LLC.,
an investor group led by financier and film producer David
Bergstein, which pushed them into the red this quarter.


Read more at Reuters.com Market News

Schroder's Parbrook Likes China, Not China Stocks, for Top Hong Kong Fund

(Bloomberg) -- Robin Parbrook's fund has beaten its
rivals in Hong Kong in the past year by steering away from
companies in China, the world's fastest growing major economy and
home to the world's top-performing stock market.

Parbrook instead has focused on companies such as Hong Kong-
based Jardine Matheson Holdings Ltd., which runs hotels worldwide,
and Standard Chartered Plc, a London-based bank that makes most of
its money in Asia and is expanding in China.


Read more at Bloomberg Stocks News

UPDATE 1-U.S. panel backs CryoCor heart flutter device

(Reuters) - The advisers voted 8-2 to urge the FDA to approve the
Cryoablation System, with conditions on physician training,
labeling and other issues, FDA spokeswoman Karen Riley said.




The panel urged the FDA to request a post-approval study
comparing all patients treated with the CryoCor device and an
alternative treatment, Riley said.


Read more at Reuters.com Government Filings News

Timberland posts lower quarterly profit

(Reuters) - Revenue fell 3.9 percent to $336.3 million.





Read more at Reuters.com Market News

US CDC panel advises wider use of meningitis jab

(Reuters) - The vaccine was approved by the U.S. government in 2005 for
preventing bacterial meningitis, an infection that can cause
seizures, brain damage, memory loss and even death in otherwise
healthy people in less than 48 hours.




The relatively rare disease involves the inflammation of
membranes covering the brain and spinal cord. It is a more
serious infection than viral meningitis.


Read more at Reuters.com Government Filings News

Argentina stocks up but bonds continue to decline

(Reuters) - The MerVal index of 16 leading stocks rose 1.44
percent to close at 2,227.33 points.




"There is no doubt that the upcoming end of the month is
prompting institutional to make purchases as they
look to close the month and the semester in better shape," said
Nestor De Cesare, an analyst at Allaria Ledesma brokerage.


Read more at Reuters.com Bonds News

UPDATE 2-Corp bonds meet resistance on flood of high-yield sales

(Reuters) - NEW YORK, June 27 - A slew of companies were
required to restructure debt sales on Wednesday, as high
leverage and risky types of debt made investors reticent to
jump into a market flooded by leveraged buyout financings.




Dollar General Corp. , Nelson Education, the Canadian
publishing business of Thomson Corp. , and Community
Health Systems Inc. were all required to make changes
to their debt offerings. In addition, Magnum Coal Co. pulled
its $350 million junk bond deal due to weak market conditions,
according to Reuters Loan Pricing Corp. .


Read more at Reuters.com Mergers News

Comverge to acquire Enerwise Global Technologies

(Reuters) - After closing, former Enerwise shareholders will own
approximately 7 percent of the combined company.




Read more at Reuters.com Mergers News

TREASURIES-Stocks rally drains interest in bonds before Fed

(Reuters) - The market began to waver as soon as equities gained
traction. As the rise in stocks grew in conviction, bonds caved
and trickled into negative territory.




U.S. benchmark ten-year Treasury notes fell
3/32 in price and were offering a yield of 5.10 percent, up two
basis points on the day.


Read more at Reuters.com Bonds News

UPDATE 1-Mexico economic activity grew 3.2 pct in April

(Reuters) - Economic activity was up 0.76 percent in April from March,
according to the monthly IGAE index, which measures the vast
majority of Mexico's economic output.




The Mexican economy grew 4.8 percent in 2006 but is
expected to lose steam this year as the United States, the
country's main trade partner, enters a slowdown.


Read more at Reuters.com Economic News

NEWSMAKER-Trouble-shooter takes on crucial role at Bear

(Reuters) - Looking for a trouble-shooter, the investment bank has
turned to Thomas Marano, head of the firm's mortgage department
and an expert in specialized mortgage securities, a source
familiar with the funds disclosed on Tuesday. Marano's mandate
is to help Ralph Cioffi, the current manager, put one of the
funds back on its feet.




"I can't think of anyone in their whole operation, maybe in
the world, who understands about different types of mortgages
and different types of lending features than Tom," said a
senior trader who used to work with Marano at Bear Stearns.


Read more at Reuters.com Bonds News

Best Buy boosts buyback, dividend, store plans

(Reuters) - CHICAGO, June 27 - Best Buy Co Inc. said on Wednesday that it would open more North American stores than previously planned, buy back $5.5 billion in stock and raise its dividend by 30 percent. Shares of Best Buy, the top U.S. consumer electronics retailer, rose 2.2 percent in early electronic trading.



The plan comes after Best Buy reported quarterly earnings last week that missed analyst estimates by a wide margin and gave a disappointing full-year forecast as television sales cooled.


Read more at Reuters.com Bonds News

European Union Signals Support for New German Emission-Credit Import Limit

(Bloomberg) -- European Union regulators signaled a
readiness to approve a higher limit on Germany's imported
emission credits after the country decided to sell 9 percent of
new allowances instead of giving them away.

The German government aims to allow imported credits
covering emissions of about 90 million metric tons a year in
2008-2012. The European Commission, the EU's regulatory arm,
must endorse the limit, which is 20 percent of Germany's total
allowances to emit 453 million tons of carbon dioxide a year and
22 percent of the country's free permits.


Read more at Bloomberg Energy News

Treasury's Paulson-Higher rates a positive wake-up call

(Reuters) - And while interest rates remain low by historical
standards, he said their recent rise is "in many ways
positive."




"I clearly believe that this is a wake-up call to focus on
some of the excesses," he said.


Read more at Reuters.com Bonds News

Durable goods orders fall, stir growth fears

(Reuters) - Orders for durable goods, items meant to last at least three years, slid a larger-than-expected 2.8 percent after a 1.1 percent April rise, a Commerce Department report showed.




It was the first drop since January and reflected weak demand for a wide array of products, including goods businesses need to expand.


Read more at Reuters.com Business News

TREASURIES-Bonds steady, still up after 5-year notes sale

(Reuters) - The five-year note's price traded up 3/32 for a yield of
4.94 percent , versus 4.94 percent before the
auction and compared with 4.96 percent late on Tuesday. Bond
yields and prices move inversely.




Read more at Reuters.com Bonds News

Sugar Futures Fall in New York on Speculation Global Oversupply Will Widen

(Bloomberg) -- Sugar declined in New York on
speculation that rising Brazilian and Indian production will
widen a global surplus.

World production will exceed demand by 9.8 million tons this
year, according to London-based ED&F Man, the biggest trader of
the sweetener. Brazil and India, the largest producers, are
growing more sugarcane partly to meet rising demand for the
alternative fuel ethanol.


Read more at Bloomberg Commodities News

EU mergers and takeovers (June 27)

(Reuters) - JULY 17




-- AIG Capital Partners, an asset manager, buys Bulgarian
Telecommunications Co, which provides fixed and mobile
communications in Bulgaria


Read more at Reuters.com Government Filings News

UPDATE 2-US Treasury to review financial services rules

(Reuters) - "To maintain our capital markets' leadership, we need a
modern regulatory structure complemented by market leaders
embracing best practices," Treasury Secretary Henry Paulson
said in a statement.




The Treasury said it would release a "blueprint" for
regulatory reforms by early next year.


Read more at Reuters.com Bonds News

Wheat Futures Rise to Record as Rains Delay Harvest in U.S. Great Plains

(Bloomberg) -- Wheat futures rose to a record in
Chicago as wet weather in the southern Great Plains delays
harvesting of the U.S. winter crop, threatening yields.

As much as 3 inches (7.6 centimeters) of rain fell in
Oklahoma and Texas, leaving fields too muddy for heavy harvest
machinery. Only about half of the winter crop has been
harvested in the two states, compared with a year ago when most
of the grain had been collected, government data show. Oklahoma
is fourth in winter-wheat production. Texas ranks 14th.


Read more at Bloomberg Commodities News

Brazil's Real Erases Losses as Lower U.S. Treasury Yields Increase Demand

(Bloomberg) -- Brazil's currency was little changed,
erasing earlier losses, as declines in U.S. Treasury yields
helped lure some investors to the higher returns offered by the
country's debt.

U.S. stocks pared losses, which also helped spark demand for
riskier emerging-market assets, said Rodrigo Ferreira, a fixed-
income trader at Banco Alfa de Investimento in Sao Paulo.


Read more at Bloomberg Currencies News

Chile's Peso Weakens a Fourth Day on Lower-Than-Expected Industrial Output

(Bloomberg) -- Chile's peso dropped for a fourth
day after the country's industrial production grew less than
expected and copper fell.

Industrial production rose 3 percent in May from a year
ago, lower than the 4.9 percent median forecast from 11 analysts
in a Bloomberg survey. Copper, the country's biggest export,
fell on concern of slowing growth in the U.S., the world's
second-largest consumer of the metal.


Read more at Bloomberg Currencies News

UPDATE 1-EU hits gambling curbs in wave of legal action

(Reuters) - The Commission adopted 955 legal actions spanning telecoms,
energy, gambling and the financial sector.




"While important improvements have been made in recent
years, too many member states persistently infringe Community
law. That is why we are determined to act," Commission President
Jose Manuel Barroso said in a statement.


Read more at Reuters.com Government Filings News

Brazilian Coffee Growers Sell 4 Million Bags Offered at Subsidy Auction

(Bloomberg) -- Coffee growers in Brazil, the
world's biggest producer, sold all 4 million bags offered at an
auction today that was subsidized by the government.

The government will pay growers a subsidy of 39.99 reais
($20.40) a bag to supplement prices paid by roasters and
exporters, the Agriculture Ministry said on its Web site. Buyers
paid at least 260 reais per bag.


Read more at Bloomberg Commodities News

Treasury Two-Year Note Yields Reach Lowest in a Month on Outlook for Risk

(Bloomberg) -- Treasury two-year notes rose,
pushing yields to the lowest in a month, as investors dumped
riskier assets and a government report showed orders for durable
goods fell more than forecast in May.

U.S., European and Asian stocks fell and the perceived risk
of owning U.S. corporate bond rose to a 10-month high in the
derivatives market on concern over the extent of investor losses
arising from defaults on subprime mortgage loans. Treasuries
gained as dealers prepared to bid on $13 billion of five-year
notes in the monthly auction of the securities today.


Read more at Bloomberg Bonds News

S.Africa unions hint may accept wage deal

(Reuters) - One of the biggest public sector unions taking part in a damaging wage strike in South Africa said on Wednesday it was ready to accept a pay offer from the government.

Members of the National Education Health and Allied Workers Union (NEHAWU) were due to vote on the motion later on Wednesday as union negotiators held another meeting with the government to try to resolve the strike, SAPA news agency said.


Read more at Reuters Africa

US STOCKS-Indexes drop on durable goods, risk worries

(Reuters) - The Dow Jones industrial average was down 40.57
points, or 0.30 percent, at 13,297.09. The Standard & Poor's
500 Index was down 3.81 points, or 0.26 percent, at
1,489.08. The Nasdaq Composite Index was down 10.05
points, or 0.39 percent, at 2,564.11.




Read more at Reuters.com Bonds News

UPDATE 1-Fidelity National to buy eFunds for $1.8 bln

(Reuters) - The deal will expand Fidelity National Information
Service's distribution capabilities and boost the
company's product offering.




FIS expects to realize about $65 million in annual cost
savings. It will finance the purchase through cash on hand and
recently secured long-term debt commitments. The deal is
expected to close by the end of the third quarter.


Read more at Reuters.com Mergers News

Canada's Dollar Declines Versus U.S. as Oil Falls, Dims Growth Outlook

(Bloomberg) -- The Canadian dollar fell against the
U.S. currency as crude oil declined, dimming the prospect of the
country's economy.

Commodities including oil make up half of Canada's exports.
Copper and platinum also dropped today. The Canadian currency
dropped for a third day against the yen, the longest losing
streaks since March, as investors pared holdings of riskier
assets funded by loans in Japan, known as the carry trade.


Read more at Bloomberg Currencies News

May durable goods orders fell 2.8 percent

(Reuters) - Transportation orders fell 6.8 percent as civilian aircraft and parts orders tumbled 22.7 percent.




However, excluding volatile transportation orders, durables orders declined surprisingly by 1 percent as manufacturing, machinery, metals and electrical equipment orders fell.


Read more at Reuters.com Bonds News

U.S. Stock-Index Futures Retreat; ConocoPhillips, Lennar Shares Decline

(Bloomberg) -- U.S. stock-index futures fell after
energy producers retreated on a drop in the price of oil and a
report said mortgage applications slipped to a four-month low.

ConocoPhillips, the third-largest U.S. oil company,
declined after it said it will record a charge of $4.5 billion
to write off its Venezuela projects. Lennar Corp., the biggest
homebuilder, slid for a sixth straight day.


Read more at Bloomberg Stocks News

Hedge Funds Cash Out of Big Lots Shares After Price Doubles, Profit Slows

(Bloomberg) -- Big Lots Inc., the largest U.S.
seller of overstocked and discontinued items, has an online Wild
and Wacky Find museum where customers can submit items they
stumble upon while shopping at the company's stores.

There's Chick A Poo Organic plant food made from chicken
droppings, Shower Buzz vibrating body soap and Woofy Pop
chicken-flavored popcorn for dogs. While the goods make Big Lots
fun for shoppers, the enjoyment is waning for investors,
particularly hedge funds.


Read more at Bloomberg Exclusive News

CommScope to acquire Andrew Corp for $2.6 billion

(Reuters) - The acquisition is expected to add to CommScope's earnings
in the first full year after closing, it said.





Read more at Reuters.com Mergers News

Crude Oil Declines on Forecast for Increase in U.S. Gasoline Inventories

(Bloomberg) -- Crude oil fell to a nine-day low in New
York on forecasts U.S. gasoline supplies rose for an eighth
straight week.

An Energy Department report today will probably show U.S.
gasoline stockpiles gained 1 million barrels last week, according
to a Bloomberg News survey of analysts. A record 41.1 million
Americans may travel next week for the Independence Day holiday,
the AAA said in a survey released yesterday.


Read more at Bloomberg Commodities News

U.K. Electricity Prices Decline as Spare Output Capacity Margin Increases

(Bloomberg) -- U.K. power for next-day delivery
declined as forecasts predicted a widening volume of spare
generation capacity. The month-ahead dropped to a record.

Day-ahead baseload electricity for delivery in the U.K.
fell 1.8 percent to 22.45 pounds ($44.77) a megawatt-hour,
according to prices on Bloomberg from the energy broker GFI
Group Inc. Baseload power is delivered round the clock.


Read more at Bloomberg Energy News

S.Africa May CPIX quickens to 6.4 percent y/y

(Reuters) - South Africa's targeted CPIX inflation quickened to 6.4 percent year-on-year in May, from 6.3 percent in April, slightly above the market expectation, official data showed on Wednesday.

Statistics South Africa also said that the all-items consumer price index (CPI) increased by an annual rate of 6.9 percent in May, compared to 7.0 percent in April.


Read more at Reuters Africa

Iberdrola to Sell 85 Million New Shares to Pay for Energy East Acquisition

(Bloomberg) -- Iberdrola SA, the world's largest
owner of wind-power parks, plans to raise about 3.5 billion euros
($4.7 billion) in a share sale to pay for U.S. utility Energy
East Corp.

The Spanish utility will begin selling 85 million new shares
today through a so-called accelerated offering, the Bilbao-based
power producer said today in an e-mailed statement. ABN Amro
Rothschild, Credit Suisse Group and JPMorgan Chase & Co. are
managing the sale, aimed at fund managers.


Read more at Bloomberg Stocks News

European Stocks Drop for Fifth Day; Axa, BHP, Northern Rock Pace Retreat

(Bloomberg) -- European stocks fell for a fifth day
on speculation higher borrowing costs will reduce economic and
profit growth.

Deutsche Bank AG, Germany's biggest bank, and Axa SA,
Europe's second-largest insurer, paced declines by companies
sensitive to rising interest rates. Northern Rock Plc tumbled
more than 10 percent after the U.K. bank said earnings growth
will miss analysts' estimates as rates increased more than
expected. BHP Billiton Ltd., the world's biggest mining company,
paced a drop in metal stocks as copper prices fell.


Read more at Bloomberg Stocks News

OECD plays down emerging markets selloff risk

(Reuters) - Emerging markets have been hit by expectations that U.S.
interest rates will not fall soon, or may even rise further.
Weak stock markets, due partly to concerns about the
exposure of U.S. lenders to subprime mortgages, have also
reduced investor interest in risky assets around the world.




Read more at Reuters.com Economic News

U.K. Pound Holds Near 2-Month High Versus Dollar on Interest-Rate Outlook

(Bloomberg) -- The U.K. sterling traded near its
highest in two months after Bank of England policy maker John
Gieve indicated interest rates are still too low to curb credit
growth in Europe's second-biggest economy.

The U.K. currency broke through $2 for the second time in as
many days yesterday on views borrowing costs will rise further.
Gieve, who spoke late yesterday, joined BOE Governor Mervyn King
and two other members of the Monetary Policy Committee in voting
for a rate increase in June. They were outvoted by the other five
MPC members who favored holding rates at 5.5 percent.


Read more at Bloomberg Currencies News