JGBs jump as Treasuries extend their rally in Asia

(Reuters) - Treasuries added to the gains they had made on Tuesday, when
Standard & Poor's said it might cut its ratings on $12.1 billion
of subprime mortgage-related debt on expectations of an 8 percent
drop in U.S. home prices and more mortgage defaults.




"It seems like the issue of subprime mortgages is having an
impact globally," said a proprietary trader in JGB futures.


Read more at Reuters.com Bonds News

UBS aiming for top five U.S. M&A ranking - report

(Reuters) - Alex Wilmot-Sitwell, the bank's other joint global head of
investment banking, noted UBS had not been involved in "jumbo
deals" like TXU Corp.'s $32 billion buyout by a private
equity group led by Kohlberg Kravis Roberts & Co. [KKR.UL].




"In order to change our positioning in this market ... we
have to bank the large clients," Wilmot-Sitwell told the
newspaper.


Read more at Reuters.com Mergers News

Julius Baer CEO confident of meeting goals-report

(Reuters) - The bank has set itself a target of a gross margin in the
private bank of 100 basis points for 2008.




Its target for net new money inflows into the private bank
is at least 5 percent of assets under management.


Read more at Reuters.com Mergers News

Baht to Gain From Decade-High as Rate Cuts Spur Stock Demand, UBS Says

(Bloomberg) -- The Thai baht will extend its gains
from the highest in almost a decade as interest-rate cuts prompt
overseas investors to buy the nation's stocks, UBS AG said.

The currency, which traded at 33.20 per dollar at 10:57 a.m.
in Bangkok, will climb to 33 within a month, said Nizam Idris, a
Singapore-based strategist at UBS, the world's second-biggest
currency trading firm. The baht has gained 3.8 percent over the
past month, the best performance among 42 currencies in the
Asia-Pacific region.


Read more at Bloomberg Currencies News

BG Group, Kingfisher, Burberry, RBS and Shell: U.K., Irish Equity Preview

(Bloomberg) -- The following stocks may rise or fall
in U.K. and Irish markets today. Stock symbols are in parentheses
and prices are from yesterday's market close.

The benchmark FTSE 100 Index fell 81.80, or 1.2 percent, to
close at 6630.90 in London. The FTSE All-Share Index declined
40.70, or 1.2 percent, to 3422.92.


Read more at Bloomberg Stocks News

UPDATE 2-Gerdau Ameristeel to buy Chaparral for $4.22 bln

(Reuters) - NEW YORK, July 10 - Gerdau Ameristeel Corp.
said on Tuesday it agreed to acquire Chaparral
Steel Co. for $4.22 billion, in a move to diversify
its product offering into high value added steel products.




Gerdau will pay $86.00 per share in cash for shares of
Chaparral, a premium of 13.6 percent to Chaparral's closing
price of $75.69 on Tuesday on the New York Stock Exchange.


Read more at Reuters.com Bonds News

Yuan's Two-Day Gain Beats Rise for Whole of June on Record Trade Surplus

(Bloomberg) -- The yuan extended gains to 0.44
percent over the past two days, signs the central bank is
allowing faster appreciation to cut a record trade surplus.

The advance equaled the currency's rise for the whole of
June after a government report yesterday showed the trade gap
exceeded expectations, giving U.S. lawmakers more reason to press
for changes in the foreign-exchange regime. Exports at an all-
time high are flooding the economy with cash, stoking lending and
investment and making it difficult for China to cool growth.


Read more at Bloomberg Currencies News

Nikkei down 1.1 pct on Wall St fall

(Reuters) - The broader TOPIX index slipped 1.14 percent to 1,768.77.




Read more at Reuters.com Business News

Spain's Telefonica Raises 30 Billion Yen in Its First Samurai Bond Sale

(Bloomberg) -- Telefonica SA, Spain's biggest
telephone company, raised 30 billion yen ($247 million) selling
yen-denominated bonds in Japan for the first time.

Telefonica, based in Madrid, sold 15 billion yen of five-year
bonds which will pay interest of 2.11 percent, according to data
compiled by Bloomberg. The company also sold 15 billion yen of
floating-rate notes with the same maturity.


Read more at Bloomberg Bonds News

U.K. Lawmakers Form `Peak Oil' Committee to Study Falling Energy Reserves

(Bloomberg) -- The U.K. parliament formed a group to
study peak oil, the theory that world oil production is
approaching its zenith, as British lawmakers face up to the
country's future as an energy importer.

The All-Party Parliamentary Group on Peak Oil and Gas, which
held its first meeting June 26, comprises 32 members of the House
of Commons, or lower chamber, and seven from the House of Lords,
or upper chamber.


Read more at Bloomberg Energy News

Japan Should Diversify $700 Billion of Currency Reserves, Adviser Ito Says

(Bloomberg) -- Japan, the largest overseas holder
of U.S. Treasuries, should invest $700 billion of its currency
reserves in higher-yielding assets such as stocks and corporate
bonds, said Takatoshi Ito, an adviser to the prime minister.

The reserves should be managed by a special fund that will
gradually diversify into euros, Australian dollars and emerging
market currencies, he said in an interview in Tokyo. Ito said
that the Ministry of Finance, which expanded its currency
reserves by selling yen in 2003 and 2004, has essentially
borrowed the funds from the Japanese people.


Read more at Bloomberg Currencies News

Bond bears turn tail in subprime scare

(Reuters) - Credit ratings agency Standard & Poor's stunned markets on Tuesday by warning of possible downgrades to a slew of mortgage-backed debt, boosting Treasuries but sending shivers through the riskier sectors of the fixed-income market.




Even though the economy has bounced back from earlier scares in the subprime sector, which targets borrowers of lower credit quality, this latest bout of jitters should still tamp down yields until the scope of the damage is known.


Read more at Reuters.com Business News

US STOCKS-Housing weakness woes drive stock indexes down

(Reuters) - NEW YORK, July 10 - U.S. stocks slid on Tuesday
as the subprime mortgage crisis escalated, undermining banking
shares, while Home Depot Inc. and other housing-related
companies lowered their outlooks.




Standard & Poor's roiled financial markets when it said it
may cut ratings on $12 billion of subprime-related debt on
forecasts of more delinquent and defaulted U.S. home loans.


Read more at Reuters.com Bonds News

Sealy posts profit on higher international sales

(Reuters) - NEW YORK, July 10 - Mattress maker Sealy Corp. posted a higher quarterly profit on Tuesday, helped by rising international sales.



The maker of Sealy Posturepedic, Stearns & Foster and other brands had earnings of $16.1 million for its fiscal second quarter, or 17 cents a share, compared with profit of $126,000, or break-even on a per-share basis a year earlier.


Read more at Reuters.com Market News

Yen May Extend Gain Against Dollar on Prices, Interest-Rate Speculation

(Bloomberg) -- The yen may gain versus the dollar
for a second day before a report that is forecast to show June
wholesale prices in Japan rose the most in six months.

Japan's yen may extend its rebound versus the euro before
the nation's central bank issues its interest-rate announcement
tomorrow. The Bank of Japan might signal an August increase from
0.5 percent, the lowest rate among major economies. The yield
advantage of the 10-year U.S. Treasury note over a comparable-
maturity Japanese security fell the most in a month yesterday.


Read more at Bloomberg Currencies News

UPDATE 1-Moody's cuts 399 mortgage bonds, most tied to subprime

(Reuters) - The affected securities were issued in 2006 and are backed
mostly by first-lien adjustable and fixed-rate subprime loans.




Standard & Poor's, a rival credit-rating agency, said on
Tuesday it may soon cut ratings on $12.1 billion of
mortgage-related debt. For details, see [ID:nN10336254].


Read more at Reuters.com Bonds News

Wheat Rebounds on Demand From Japan, Egypt, Prospects for Global Shortfall

(Bloomberg) -- Wheat rose in Chicago on demand for
U.S. grain from Japan and Egypt amid forecasts for the lowest
global inventories in 26 years.

Japan plans to buy 40,000 metric tons of U.S. varieties.
Egypt said it purchased 60,000 tons. Advance sales of U.S.
supplies for delivery before May 31 are up 22 percent from a
year earlier, Department of Agriculture data showed. Global
stockpiles may fall to 112 million tons by May 31, the lowest
since 1982, the U.S. agency said on June 11.


Read more at Bloomberg Commodities News

Chunghwa, Citic Pacific, Infosys, LG.Philips: Asia Ex-Japan Stock 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.

Chunghwa Telecom Co. (2412 TT): Taiwan's largest phone
operator's profit in the first half rose 11 percent to NT$24.6
billion ($751 million), the company said in an e-mailed statement.
Chunghwa Telecom slipped 10 cents, or 0.2 percent, to NT$63.40.


Read more at Bloomberg Stocks News

Short-term money-inflation link is weak -Bernanke

(Reuters) - Bernanke also said monetary policy was not a good tool to "pop" inflated asset prices.




Read more at Reuters.com Business News

Bernanke-hopeful can move on communications policy

(Reuters) - The Fed chief also said interest paid on reserves might serve as an additional instrument of monetary policy control.




Read more at Reuters.com Business News

Liberty likely to seek rest of DirecTV shrs-analyst

(Reuters) - NEW YORK, July 10 - Liberty Capital , the holding group of media mogul John Malone, will likely seek full control of satellite operator DirecTV Group within 12 months, according to an analyst report.



"We see 75 percent chance that Liberty tenders for DirecTV within 12 months," said Citigroup analyst Jason Bazinet in a note to clients. "We believe Liberty could offer $30 per share."


Read more at Reuters.com Mergers News

Alcan contracts Areva to build Saguenay power unit

(Reuters) - Alcan unveiled plans for the AP50 project in December of
last year. The Montreal-based aluminum producer is currently
the target of an unsolicited takeover attempt by U.S. rival
Alcoa .




Read more at Reuters.com Mergers News

Venezuelan Heavy-Oil Output Declined After Venture Takeovers, Ramirez Says

(Bloomberg) -- Venezuela, South America's largest
oil producer, saw a drop in output of heavy crude by joint
ventures that the government seized in May from Exxon Mobil
Corp., ConocoPhillips and other international producers.

Production has declined to 418,000 barrels a day at the
ventures, according to a statement today by Energy and Oil
Minister Rafael Ramirez on the Web site of state oil company
Petroleos de Venezuela SA. That's down from the 482,000 barrels
a day reported by Petroleos de Venezuela on May 9.


Read more at Bloomberg Energy News

US STOCKS-Profit warnings, subprime worries weigh

(Reuters) - NEW YORK, July 10 - U.S. stocks fell on Tuesday
after profit warnings from Home Depot Inc. and Sears
Holdings Corp. , while trouble in the subprime mortgage
market fueled a sell-off among shares of financial companies.




Rating agency Standard & Poor's said it may cut $12 billion
of subprime-related debt on expectations of more delinquent and
defaulted U.S. home loans, hitting investment banks and
mortgage companies. For details, see [ID:nN10336254]


Read more at Reuters.com Bonds News

Motorola to buy software developer Leapstone

(Reuters) - Privately-held Leapstone works with such clients as AT&T Inc. and Verizon Wireless. The deal is expected to close in the third quarter. Financial terms were not disclosed.



) Keywords: MOTOROLA LEAPSTONE/


Read more at Reuters.com Mergers News

Oil nears another 11-month high above $76

(Reuters) - Oil neared another 11-month high on Tuesday, extending nine days of gains that have lifted crude by $6 to within striking distance of its record above $78.

The rally to an 11-month high of $76.34 a barrel on Monday has coincided with a big rise in investment flows. Speculators boosted their long positions in the New York Mercantile Exchange crude oil market to a record in the week to July 3.


Read more at Reuters Africa

D.R. Horton orders fall, sees loss; stock slumps

(Reuters) - "Market conditions for new home sales declined in our June quarter as inventory levels of both new and existing homes remained high, and we expect the housing environment to remain challenging," Chairman Donald Horton said in a statement.




Regionally, the sharpest decline came in California, where the value of orders fell 61.9 percent to $307.1 million.


Read more at Reuters.com Hot Stocks News

U.S. Stocks Fall on Earnings Outlooks; D.R. Horton, Bear Stearns Decline

(Bloomberg) -- U.S. stocks fell for the first time
in six days on concern the housing slump will hurt earnings
after D.R. Horton Inc. forecast a loss and Standard & Poor's
said it may cut ratings on bonds backed by subprime mortgages.

D.R. Horton, the second-largest U.S. homebuilder, slid
after saying it sees no sign of a housing rebound. Bear Stearns
Cos., the second-biggest U.S. underwriter of mortgage-backed
securities, retreated after S&P said losses in mortgage bonds
will rise beyond its previous expectations.


Read more at Bloomberg Stocks News

US STOCKS-Profit warnings knock market lower

(Reuters) - NEW YORK, July 10 - U.S. stocks fell on Tuesday
as profit warnings from retailer Sears Holdings Corp.
and home builder D.R. Horton Inc fueled concerns about
the economy's health and the earnings outlook.




Home Depot Inc. , the largest U.S. home improvement
chain, also rattled the market, at least initially, with a
warning. But news that it planned to buy back about 12 percent
of its stock lifted the share price.


Read more at Reuters.com Bonds News

Gold hits fresh one-month high as dollar falls

(Reuters) - Gold rose to a new one-month high on Tuesday as the weaker dollar stimulated buying and investor sentiment towards the precious metal strengthened.

Gold's comeback began the previous day when most commodity markets rallied to take leading indexes back up to 2006 highs after crude oil hit an 11-month peak and copper a two-month high.


Read more at Reuters Africa

South African Gold Producers Boost Pay Offer to 7 Percent, Union Says

(Bloomberg) -- South Africa's biggest gold producers
boosted their wage-increase offer to 7 percent at talks today,
the Solidarity labor union said.

The offer by AngloGold Ashanti Ltd., Gold Fields Ltd. and
Harmony Gold Mining Co. will now be considered by Solidarity, the
National Union of Mineworkers and the United Association of South
Africa, Reint Dykema, a spokesman for Solidarity, said in an
interview from Johannesburg.


Read more at Bloomberg Commodities News

S&P May Cut $12 Billion of Subprime Mortgage Bond Ratings as Losses Rise

(Bloomberg) -- Standard & Poor's said it may cut
credit ratings on $12 billion in bonds backed by subprime mortgages
because losses will rise beyond its previous expectations.

Ratings of 612 classes of residential mortgage-backed
securities were placed on CreditWatch with negative implications,
New York-based S&P said today in an e-mailed statement. The bonds
represent 2.1 percent of the $565.3 billion of similar bonds
rated by S&P during 2006.


Read more at Bloomberg Bonds News

Blast rocks Mexican gas pipeline, fire controlled

(Reuters) - Pemex said in a statement no injuries were reported. Predawn television images showed flames jumping dozens of meters into the air, and Pemex said nearby communities were evacuated.




The pipeline was shut off following the explosion, as were a 14-inch liquefied petroleum pipeline and a 16-inch crude oil pipeline.


Read more at Reuters.com Business News

Akamai, BigBand, Google, Pepsi Bottling, Sears, Taser: 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. Share prices are as of 9:05 a.m. New York time.

Akamai Technologies Inc. (AKAM US) gained $1.92, or 4
percent, to $49.45 before the open of U.S. exchanges. The
Cambridge, Massachusetts-based company, whose software speeds the
delivery of Internet data, will replace Biomet Inc. in the
Standard & Poor's 500 Index, S&P said.


Read more at Bloomberg Stocks News

Home Depot sees deeper profit drop on housing woes

(Reuters) - ATLANTA, July 10 - Home Depot Inc. on Tuesday forecast a deeper profit drop for 2007, citing weakness in the U.S. housing market.



The home improvement industry leader said it expected per-share profit for the full year to fall 15 percent to 18 percent to a range of $2.30 to $2.36 per share. In May, Home Depot had said earnings per share would fall 9 percent this year.


Read more at Reuters.com Economic News

EU probes UK state aid to Vauxhall car plant

(Reuters) - EU rules only allow state aid that provides a genuine
incentive for additional training, it said.
The Commission has authority over any financial government
help given to companies and can prohibit such state aid.




Read more at Reuters.com Government Filings News

Treasuries Rise on Speculation Housing Slump to Slow U.S. Economic Growth

(Bloomberg) -- Treasuries rose on concern the
housing market slump may slow the U.S. economy.

The yield on the benchmark 10-year note fell almost 3 basis
points, or 0.03 percentage point, to 5.11 percent at 8:25 a.m.
in New York, according to bond broker Cantor Fitzgerald LP. The
price of the 4 1/2 percent security due in May 2017 rose 6/32,
or $1.88 per $1,000 face value, to 95 10/32.


Read more at Bloomberg Bonds News

Futures drop on Home Depot; Bernanke eyed

(Reuters) - Shares of Dow-component Home Depot fell 1.5 percent in Europe after the largest U.S. home improvement chain cut its 2007 profit outlook, citing a weak housing market.




Home Depot joins other companies, including printer maker Lexmark International Inc , whose lowered outlooks could temper hopes for strong profits in the reporting season now under way.


Read more at Reuters.com Hot Stocks News

US STOCKS-Futures drop on Home Depot; Bernanke eyed

(Reuters) - Shares of Dow-component Home Depot fell 1.5 percent in
Europe after the largest U.S. home improvement chain cut its
2007 profit outlook, citing a weak housing market.




Home Depot joins other companies, including printer maker
Lexmark International Inc , whose lowered outlooks could
temper hopes for strong profits in the reporting season now
under way.


Read more at Reuters.com Bonds News

Danone credit rating cut seen likely on Numico deal

(Reuters) - Danone's 12.3 billion euros
takeover of Numico , announced on Monday, follows an
agreement by the company last week to sell its biscuits business
to Kraft Foods Inc. .




The Numico deal, expected to generate net debt of 7 billion
euros, will likely prompt a downgrade of Danone's current A1 and
and A+ ratings from Moody's Investors Service and Standard &
Poor's, although by how much will depend on how the deal is
financed.


Read more at Reuters.com Bonds News

UPDATE 2-NEC puts heat on chip unit, to keep 70 pct stake

(Reuters) - President Kaoru Yano also said that NEC, which is under
pressure from shareholders to lower its stake in NEC Electronics
Corp. , will keep its 70 percent stake in the unit, even
after the chipmaker said the stake could lead to a delisting.




"We have told that we are not satisfied
with their targets of 800 billion yen in sales
and 5 percent operating profit margin in 2009," Yano told a news
conference. "As a shareholder, we hope for higher targets to
help raise NEC's profitability."


Read more at Reuters.com Market News

Dutch court to rule on ABN's LaSalle

(Reuters) - The court is considering whether to unfreeze the suspended sale of LaSalle Bank to Bank of America for $21 billion. The smaller bank's fate could tip the balance in a deal potentially worth nearly $100 billion which would be the biggest-ever bank takeover.




Britain's Barclays , which has offered to buy ABN for nearly 63 billion euros , is up against a consortium of three banks led by Royal Bank of Scotland which says it is willing to pay 71 billion euros .


Read more at Reuters.com Business News

Deutsche Bahn Plans to Sell 12-Year Bonds in Euros, Hires Three Banks

(Bloomberg) -- Deutsche Bahn AG, Germany's
government-owned railway, plans to sell bonds in euros, according
to an e-mailed statement sent by Royal Bank of Scotland Group
Plc, one of the managers of the sale.

Berlin-based Deutsche Bahn also hired Citigroup Inc. and
Credit Suisse Group to manage the sale of the fixed-rate bonds
maturing in 12 years, the statement said. The bonds will be
issued by Deutsche Bahn Finance BV and be guaranteed by Deutsche
Bahn.


Read more at Bloomberg Bonds News

Egypt's CASE 30 Benchmark Index Advances to Record: World's Biggest Mover

(Bloomberg) -- Egypt's main stock index rose for an
eighth day, climbing to a record on speculation that the sale of
the state-owned Banque du Caire SAE will spur more international
investment.

Orascom Telecom Holding SAE, the largest mobile phone
company in the Middle East, and Orascom Construction Industries
led the advance.


Read more at Bloomberg Stocks News

North Sea Brent Oil Daily Shipments Will Increase 16 Percent in August

(Bloomberg) -- Daily shipments of North Sea Brent
crude, part of the price benchmark for almost two-thirds of the
world's oil, will increase 16 percent next month.

Tankers are set to load 209,613 barrels a day of Brent crude
in August, from 180,645 in July, according to the loading program
of field operator Royal Dutch Shell Plc, Europe's largest oil
company.


Read more at Bloomberg Energy News

UPDATE 1-Air Liquide shares rise on KKR bid talk - traders

(Reuters) - LONDON, July 10 - Shares in French industrial
gases group Air Liquide rose sharply on Tuesday on
market talk of bid interest from private equity group KKR
[KKR.UL], traders said.




At 0814 GMT, Air Liquide stock was up 4.5 percent, topping
gainers on France's CAC 40 index , which was up 0.05
percent.


Read more at Reuters.com Mergers News

European Stocks Rise, Led by Marks & Spencer, Numico, Unilever, Nestle

(Bloomberg) -- European stocks advanced for a third
day, led by Marks & Spencer Group Plc after the retailer reported
first-quarter British sales that topped analysts' estimates and
takeover speculation lifted food and beverage companies.

Marks & Spencer shares jumped the most since February. Royal
Numico NV climbed 24 percent. Groupe Danone SA said yesterday
after the market close it offered to buy the Dutch company for
12.3 billion euros ($16.8 billion). Unilever SA, the world's
second-biggest maker of food and detergent, and Switzerland's
Nestle SA paced today's gain.


Read more at Bloomberg Stocks News

European stocks steady, M&S up on buoyant update

(Reuters) - European stock markets edged up in early trade on Tuesday, with British retailer Marks & Spencer taking pole position with a 3 percent jump after its trading update beat market estimates.

By 0715 GMT, the pan-European FTSEurofirst 300 index was 0.1 percent stronger at 1,627.3, extending a two-day winning run and up nearly 10 percent so far this year.


Read more at Reuters Africa

U.K. Stocks Including Marks & Spencer, Drax Rise; BHP Billiton Declines

(Bloomberg) -- U.K. stocks including Marks & Spencer
Plc and Drax Group Plc advanced. Antofagasta Plc and BHP Billiton
paced declining shares.

The benchmark FTSE 100 Index added 7.2, or 0.1 percent, to
6719.9 in London at 8:06 a.m. The FTSE All-Share Index added 2.9,
or 0.1 percent, to 3466.53. Ireland's ISEQ Index slipped 29.89 to
9403.08.


Read more at Bloomberg Stocks News

Baht Rises to Decade High on Speculation Thailand's Exporters Are Buying

(Bloomberg) -- Thailand's baht climbed to the
strongest in almost a decade on speculation exporters
accelerated buying of the currency after it rose beyond 34 to
the dollar.

Foreign purchases of Thai stocks have pushed the currency
to the highest since the Asian financial crisis, eroding
overseas earnings of the nation's food producers and
manufacturers. Bank of Thailand Governor Tarisa Watanagase urged
exporters to refrain from ``panic'' selling of U.S. dollars as
the baht took its advance to almost 3 percent the past nine days.


Read more at Bloomberg Currencies News