Oil steady near 11-month high above $76 as funds buy

(Reuters) - Oil held near an 11-month high above $76 a barrel on Friday, with news of recovering refinery operations in the United States threatening to cap a two-week influx of investment fund capital into the complex.

London Brent crude shed 15 cents to $76.25 a barrel by 0400 GMT, holding on to a near $1 gain the past session and still within sight of last August's all-time high of $78.65 after gaining more than $6 since near the end of the second quarter.


Read more at Reuters Africa

Posco Shares Surge to Record on Prices, Speculation of Takeover Defenses

(Bloomberg) -- Shares of Posco, Asia's third-
largest steelmaker, posted their biggest gain since 2002 on
expectations of higher prices and as the company buys its own
shares to strengthen defenses against takeover attempts.

``Posco still wants to raise its share price to deter
takeovers,'' said Kim Joo Hyoung, who helps manage $1.1 billion
at KTB Asset Management Co. in Seoul. Dongkuk Steel Mill Co.'s
decision to raise prices means Posco may do the same, he said.


Read more at Bloomberg Emerging Markets News

Shanghai Copper Falls For Third Day Amid Speculation Stockpiles to Rise

(Bloomberg) -- Copper prices fell for a third day in
Shanghai on speculation that local stockpiles of the metal
increased, adding to concern that China may take time to absorb
supply following higher-than-expected imports last month.

Shanghai copper stockpiles, which have been falling since
reaching a three-year high on June 14, may rise, as a deadline
for delivery against the expiring July futures contract
approaches. The Shanghai Futures Exchange will release this
week's data later today. China is also expected to issue June
import and output figures for refined copper early next week.


Read more at Bloomberg Commodities News

European Government Bonds May Drop for Second Day on Higher Rates Outlook

(Bloomberg) -- European government bonds may decline
for a second day on speculation the European Central Bank will
keep raising interest rates to curb quickening economic growth.

Benchmark debt fell, pushing 10-year yields up from a week-
low, as the ECB said rates are still low enough to support growth
and the European Union said the region's economy grew at a
faster-than-expected pace in the first quarter. A report July 16
may say inflation held at 1.9 percent, just below the ECB's 2
percent target, according to economists in a Bloomberg survey.


Read more at Bloomberg Bonds News

Asian Currencies Gain as Stock Rally Draws Investors to Emerging Markets

(Bloomberg) -- Asian currencies, including
Indonesia's rupiah and the South Korean won, gained on
speculation a regional stock rally will increase demand for
emerging-market assets.

Investors sold yen to fund higher-yielding currencies in
so-called carry trades, said Catherine Tan, head of emerging
markets at Forecast Singapore Ltd. A surge in U.S. stocks
yesterday eased concern a housing slump will stunt export-led
economic growth in Asia.


Read more at Bloomberg Currencies News

Australia's S&P/ASX Rises to a Record; BHP, Alumina Lead Miners Higher

(Bloomberg) -- Australia's S&P/ASX 200 Index climbed
to a record. BHP Billiton Ltd. and Alumina Ltd. jumped after Rio
Tinto Group's plan to buy Alcan Inc. spurred expectations of more
takeovers in the mining industry.

``It's more than likely that further consolidation will occur
in the mining sector,'' said Rob Patterson, who manages $3.2
billion at Argo Investments Ltd. in Adelaide, and holds BHP and
Rio Tinto shares. ``Rio clearly thinks it's a good idea and as a
shareholder I'm not going to pour acid on it.''


Read more at Bloomberg Stocks News

UPDATE 2-Samsung Elec Q2 profit hurt by DRAM; outlook strong

(Reuters) - SEOUL, July 13 - Samsung Electronics ,
the world's top memory chip maker, reported a smaller-than
expected 5 percent drop in quarterly profit on Friday as a
steep fall in computer memory chip prices overshadowed
improvements in flat screens.




But the outlook for the second half is brighter, with the
market for dynamic random access memory chips, used in
personal computers, expected to recover on the back of seasonal
demand, while the mobile phone and display units should
improve.


Read more at Reuters.com Mergers News

XTO Energy sells $1.25 bln debt in three-parts

(Reuters) - Proceeds from the offering are being used to partially fund
XTO's $2.5 billion purchase of oil and natural gas properties
from Dominion Resources Inc.




Read more at Reuters.com Bonds News

UPDATE 1-Canada panel to review competition, investing laws

(Reuters) - TORONTO, July 12 - The Canadian government
appointed a five-member independent panel on Thursday to
examine all aspects of competition and investment policy,
including limits on foreign ownership in certain sectors.




Two key laws -- the Competition Act and the Investment
Canada Act -- need updating, as trade agreements have opened up
markets and investing has become increasingly global, federal
officials said at a press conference.


Read more at Reuters.com Government Filings News

UPDATE 1-Fitch may cut ratings on 19 CDOs, revises methodology

(Reuters) - The rating action, along with warnings on four
collateralized debt obligations in late June, affect about $803
million in securities.




Fitch also said it has revised its CDO rating methodology
and has identified 170 U.S. subprime transactions as requiring
further analysis. Of those, the total amount of bonds rated in
the "BBB" category and below -- the most likely to face rating
actions -- is $7.1 billion.


Read more at Reuters.com Bonds News

Corel profit beats forecasts as revenue surges

(Reuters) - TORONTO, July 12 - Consumer software maker Corel Corp. reported a higher second-quarter profit on Thursday that beat forecasts, as revenues surged almost 50 percent.



Corel, which makes the WordPerfect and WinZip programs, said it earned $2.3 million, or 9 cents a share, in the three months ended May 31. That was up from a loss of $4 million, or 19 cents a share, in the same period a year earlier.


Read more at Reuters.com Market News

U.S. auto sales incentives rise in May: report

(Reuters) - "In previous months, we have seen year-over-year declines in incentives spending, but this month the trend reversed," Edmunds analyst Jesse Toprak said in a statement.




Major automakers will report monthly sales results on Friday. Analysts expect May sales to have fallen slightly from last year with forecast calling for the industry-wide annualized sales rate to slip to between 15.9 million to 16 million vehicles.


Read more at Reuters.com Business News

S&P corrects RMBS volume under review to $7.35 bln

(Reuters) - "It was an error and we corrected it," said S&P spokesman
Adam Tempkin. "It was human error. It is what it is."




Read more at Reuters.com Bonds News

Wheat Futures Rise in Kansas City as U.S. Cuts Crop Estimate After Rains

(Bloomberg) -- Wheat rose in Kansas City as the
U.S. Department of Agriculture cut its estimate for this year's
harvest after excessive rains hurt the winter crop in the
southern Great Plains.

U.S. farmers will harvest 2.138 billion bushels of wheat,
down 1.4 percent from a June estimate, the USDA said today in a
report. The rains damaged the hard-red winter crop in parts of
Texas, Oklahoma and Kansas.


Read more at Bloomberg Commodities News

Visual Sciences cuts Q2 view; to review potential sale

(Reuters) - For the quarter, the company now sees earnings of about 11
cents to 12 cents a share, excluding certain items, compared
with its previous view of 15 cents to 16 cents a share.




The provider of real-time analytics applications said it
expects total revenue of about $19.5 million to $19.8 million
for the quarter, compared with $21.3 million to $21.9 million
it had earlier expected.



Read more at Reuters.com Mergers News

GM no longer on review for downgrade - Fitch

(Reuters) - NEW YORK, July 12 - Fitch Ratings on Thursday said General Motors Corp. is no longer on review for a downgrade because a new labor contract with its key supplier Delphi Corp has reduced the risk of a work stoppage.



Fitch affirmed GM's issuer rating at "B," the fifth-highest junk rating. The outlook is negative, however, indicating the rating could still be downgraded over the long term.


Read more at Reuters.com Bonds News

Apollo to buy Huntsman, trumps Basell

(Reuters) - Huntsman's board unanimously approved the $28 per share cash bid from Apollo, the private equity firm founded by Leon Black, after Basell said late on Wednesday it would not raise its earlier bid of $25.25 per share.




The Huntsman-Hexion tie-up would create a global specialty chemicals company with more than $18 billion in sales.


Read more at Reuters.com Business News

UPDATE 1-American Medical suspends enrollment in Ovion study

(Reuters) - The Minnetonka, Minnesota-based company expects the
suspension to last about 4 months, it said in a filing with
U.S. regulators.




During the suspension, the company will assess early
placement results to determine if the placement technique or
device requires further changes before enrollment resumes.


Read more at Reuters.com Government Filings News

BoC's Dodge cool to idea of aggressive rate hikes

(Reuters) - "Our objective is to keep inflation at 2 percent over the
medium term. It's not to exacerbate fluctuations in the real
economy," he told a news conference.




Read more at Reuters.com Bonds News

J.C. Penney same-store sales beat expectations

(Reuters) - "They are continuing to be strong. I think you're going to see that growth continue," said Faith Hope Consolo, retail leasing and sales chairman at Prudential Douglas Elliman Retail Leasing. "They've retooled, refreshed and gone forward very strong."




Shares of J.C. Penney, which earlier rose as much as 5 percent, were up $2.38 at $73.54 in morning trade on the New York Stock Exchange.


Read more at Reuters.com Business News

Nymex stock up after analysts raise estimates

(Reuters) - Sandler O'Neill analyst Richard Repetto increased his per-share earnings estimate by 5 cents to $2.71 for 2007, and by 9 cents to $3.36 for 2008, saying Wednesday's price increase "highlights Nymex's pricing power."




Repetto maintained his "hold" rating on the stock, but raised his price target to $136.


Read more at Reuters.com Hot Stocks News

L'Oreal Q2 sales rise 10.4 pct, upbeat on full year

(Reuters) - "This strong momentum reflects both very rapid growth in new
markets as L'Oreal captures strategic positions, and sustained
growth in Western Europe and North America," Chief Executive
Jean-Paul Agon said in a statement.




"Despite the negative impact of exchange rates, these good
levels of performance mean that we are confident about the sales
and results outlook for the full year 2007," he added.


Read more at Reuters.com Market News

US STOCKS-Wall St indexes extend gains, Dow up 1 pct

(Reuters) - The Dow Jones industrial average was up 135.51
points, or 1.00 percent, at 13,713.38. The Standard & Poor's
500 Index was up 12.44 points, or 0.82 percent, at
1,531.20. The Nasdaq Composite Index was up 18.46
points, or 0.70 percent, at 2,670.25.




Read more at Reuters.com Bonds News

Boeing year orders up to 580, trailing Airbus

(Reuters) - German low-cost airline Air Berlin said at the weekend it would buy 25 787s, while Kuwait's Aviation Lease and Finance Co. said it would buy 10 more 787s, on top of its existing order for 12.




Boeing now has 677 firm orders for its lightweight, fuel-efficient 787, with Australia's Qantas Airways poised to order a further 20, according to remarks by the airline's chief executive at a Boeing event last week.


Read more at Reuters.com Bonds News

Abercrombie & Fitch, Alcan, KBR, Ross Stores, Wesco: U.S. Equity Movers

(Bloomberg) -- The following is a list of companies
whose shares are having unusual price changes in U.S. exchanges
today. Stock symbols are in parentheses after company names.
Share prices are as of 10:30 a.m. New York time.

Abercrombie & Fitch Co. (ANF US) rose $4.69, or 6.8 percent,
to $74.07. The clothing retailer for teens and college said June
comparable store sales rose 2 percent from a year earlier.
Analysts had estimated sales to fall 2.8 percent, according to a
report from Retail Metrics LLC.


Read more at Bloomberg Stocks News

UPDATE 1-Brazil's CVRD says doesn't rule out bid for Alcan

(Reuters) - CVRD, short for Companhia Vale do Rio Doce, said in a
statement that it "is always analyzing opportunities to
strengthen its strategic position, including acquisitions of
assets in the mining and metals industries."




CVRD issued the statement shortly after Anglo-Australian
miner Rio Tinto Plc/Ltd. agreed to buy Alcan
for $38.1 billion to create the world's biggest aluminum
producer. A source familiar with the deal told Reuters that
CVRD had also bid for Alcan, which has been fighting off
hostile advances by U.S. rival Alcoa Inc. .


Read more at Reuters.com Mergers News

Rio Tinto May Borrow as Much as $40 Billion to Finance Alcan Acquisition

(Bloomberg) -- Rio Tinto Group will borrow as much
as $40 billion to finance the acquisition of aluminum producer
Alcan Inc., according to Moody's Investors Service.

Rio Tinto, the world's third-largest mining company, hired
Royal Bank of Scotland Group Plc, Deutsche Bank AG, Credit Suisse
Group, and Societe Generale SA to finance the $38.1 billion deal,
the London-based company said today in a statement. The all-cash
offer for Montreal-based Alcan will be funded from banks, Moody's
said, which would make it the second-biggest loan in Europe.


Read more at Bloomberg Bonds News

UPDATE 2-M&T Bank profit tops views,mortgage pressure eases

(Reuters) - Results marked a recovery from the prior quarter, when the U.S. housing slump forced the northeast regional bank to buy back troubled loans it had sold, and slash its profit forecast. M&T shares rose more than 3 percent in early trading.




Quarterly net income for M&T, whose largest shareholders include Warren Buffett's Berkshire Hathaway Inc. , rose 1 percent to $214.2 million, or $1.95 per share, from $212.6 million, or $1.87, a year earlier.


Read more at Reuters.com Market News

ProLogis forms new $1.8 bln property fund

(Reuters) - ProLogis will retain a 20 percent equity interest in the
fund as well as full ownership of the land acquired in the
transaction.





Read more at Reuters.com Mergers News

M&T Bank profit tops views, mortgage pressure eases

(Reuters) - Results marked a recovery from the prior quarter, when the U.S. housing slump forced the northeast regional bank to buy back troubled loans it had sold, and slash its profit forecast. M&T shares rose more than 3 percent in early trading.




Quarterly net income for M&T, whose largest shareholders include Warren Buffett's Berkshire Hathaway Inc. , rose 1 percent to $214.2 million, or $1.95 per share, from $212.6 million, or $1.87, a year earlier.


Read more at Reuters.com Hot Stocks News

Rio Tinto May Borrow as Much as $38 Billion to Finance Alcan Acquisition

(Bloomberg) -- Rio Tinto Group may borrow as much
as $38 billion, the second-biggest loan in Europe, to finance
the acquisition of aluminum producer Alcan Inc.

Rio Tinto, the world's third-largest mining company, hired
Royal Bank of Scotland Group Plc, Deutsche Bank AG, Credit
Suisse Group, and Societe Generale SA to finance the deal, the
London-based company said today in a statement. The all-cash
offer for Montreal-based Alcan means the company may use bank
loans to finance the entire deal.


Read more at Bloomberg Bonds News

Chertoff says Qaeda not posing pre-Sept 11 threat

(Reuters) - Chertoff played down media reports the militant network has regained strength and was now as great a threat as in the months before the September 11 attacks on Washington and New York.




"I wouldn't put it at that level," he told ABC's "Good Morning America." "I do think we've accomplished an awful lot in dismantling their activities overseas and in building our own defenses. But I do think the level of intent on the part of the enemy remains very high."


Read more at Reuters.com Bonds News

U.K. Natural Gas Price Rises on Forecast on Forecast Decline in Supplies

(Bloomberg) -- U.K. natural gas rose as forecasts
indicated supplies of the fuel will probably decline today.

Gas for delivery intraday gained as much as 3.6 percent to
31.7 pence a therm, according to prices on Bloomberg from broker
ICAP Plc. It traded at 31 pence at 12:15 p.m. in London. That's
equivalent to $6.4 million British thermal units. A therm is
100,000 Btus.


Read more at Bloomberg Energy News

Fred's June same-store sales rise 1.5 pct

(Reuters) - The company said it remained on target to achieve its
financial goals for the second quarter.





Read more at Reuters.com Market News

UPDATE 1-J.C. Penney June same-store sales fall 1.5 percent

(Reuters) - Analysts expected same-store sales to fall 4 percent,
according to a Reuters survey.




The Plano, Texas-based company said total department store
sales rose 1.4 percent in the five weeks ended July 7, while
Internet sales were up 10 percent.


Read more at Reuters.com Market News

UPDATE 1-Family Dollar June same-store sales rise 1.5 pct

(Reuters) - Analysts, on average, had expected a same-store sales
increase of 1.9 percent, according to a Reuters survey. The
company had forecast a rise of 1 percent to 3 percent.




Total sales for the five weeks ended July 7 rose 4.6
percent to $645.8 million.


Read more at Reuters.com Market News

Pirate Capital in negotiations regarding lawsuit with Aquila

(Reuters) - Pirate Capital filed a lawsuit after Aquila agreed to be
bought by Great Plains Energy Inc. and Black Hills
Corp. .





Read more at Reuters.com Government Filings News

European Naphtha Falls for Second Day on Lower Demand for Fuel From Asia

(Bloomberg) -- European naphtha prices declined for
the second day on lower demand from Asia and on higher gasoline
inventories in the U.S. Propane was unchanged after rising for
five days.

Naphtha swaps prices for August fell $1.11, or 0.2 percent,
to $688.37 a metric ton as of 9:49 a.m. in London, according to
data from London-based energy broker PVM. The August spread
between naphtha and Brent crude widened 5 cents to $1.30 a barrel.


Read more at Bloomberg Energy News

UPDATE 1-BMW sells Brazilian motor venture stake to Chrysler

(Reuters) - It gave no financial details for the deal, which requires
regulatory approval.




"Chrysler Group has assumed the responsibility for exploring
long-term options for the Tritec operations whereby all possible
alternatives for continuing the business for the long run are
under analysis. This may include a sale of the facility to a
third party," it said in a statement.


Read more at Reuters.com Mergers News

Bank of America Says Use Options to Bet on Brazilian Real Drop Nex Year

(Bloomberg) -- Investors should use options to bet
the Brazilian real appreciates for the next six months against
the dollar before weakening as inflation starts to accelerate,
according to Bank of America Corp.

The currency will add to this year's 13 percent gain as
high interest rates and robust economic growth bolster demand
for the country's stocks and bonds, the Charlotte, North
Carolina-based bank, the biggest U.S. one by deposits, said in a
strategy note dated July 10.


Read more at Bloomberg Currencies News

Stocks set to edge up, M&A in spotlight

(Reuters) - The Indicative Dow Jones industrial average , which tracks the 30 blue chips as they are traded on the Deutsche Boerse's electronic trading platform, XETRA, and translates the prices into dollars, was 0.28 percent higher.




"Takeover action will be a trigger for U.S. shares today," said Heinz-Gerd Sonnenschein, strategist at Germany's Postbank, pointing to Rio Tinto Ltd./Plc.'s $38.1 billion bid for Canadian aluminum company Alcan Inc. .


Read more at Reuters.com Bonds News

Franc Climbs to Highest Since April Versus Dollar on U.S. Subprime Concern

(Bloomberg) -- The franc rose to near its highest
since April against the dollar as concern subprime mortgage
defaults may slow the U.S. economy caused its currency to weaken.

Switzerland's currency was the third best performer against
the dollar of the 16 most-traded currencies as investors unwound
so-called carry trades funded by borrowing the franc at its
relatively low interest rates. The U.S. currency traded near the
weakest in more than a month versus the yen today and fell to a
record low against the euro.


Read more at Bloomberg Currencies News

UPDATE 2-Experian Q1 in line, sees subprime woes easing

(Reuters) - LONDON, July 12 - Credit information firm Experian
said on Thursday first-quarter trading was in line with
its expectations despite headwinds in its key markets and said
it expected the impact of U.S. subprime lending woes to ease.




Spun out of conglomerate GUS last year, Experian has been
hit by a decline in unsecured lending in Britain, with fewer
lenders using its services to target new customers, while U.S.
subprime mortgage troubles have knocked its LowerMyBills unit.


Read more at Reuters.com Market News

MFS's Addeo Sells Junk Bonds, Buys Stocks to Reduce Risks in Mutual Fund

(Bloomberg) -- John Addeo is selling the lowest-
rated bonds from his top-performing MFS High Yield Opportunities
Fund and buying stocks after debt ranked below investment grade
fell for the first time in almost a year.

The $820 million MFS fund fell 1.2 percent in the past
month as losses in bonds backed by subprime mortgages mounted
and companies prepared to pile on $300 billion of debt to
finance leveraged buyouts.


Read more at Bloomberg Bonds News

Wesfarmers Seeks Australian Record $8.6 Billion Loan for Coles Takeover

(Bloomberg) -- Wesfarmers Ltd. is seeking a A$10
billion ($8.6 billion) loan to fund its takeover of Coles Group
Ltd., the largest borrowing by an Australia-based company.

Wesfarmers, the nation's biggest home-improvement chain,
hired Australia & New Zealand Banking Group Ltd., BNP Paribas SA
and National Australia Bank Ltd. to arrange the loan, according
to a statement today from the banks. The bid values Coles at
A$19.1 billion based on today's share price.


Read more at Bloomberg Bonds News

China Data Watch-China Q2 economic growth seen easing slightly

(Reuters) - * Growth to slow a touch, but tightening still in view




By Jason Subler and Zhou Xin


Read more at Reuters.com Economic News

China shares rise 0.79 pct, financials lead

(Reuters) - Analysts said investor confidence was recovering after gains late last week, despite state media reports on Thursday warning that the market would be "put to the test" as new IPOs list.




"The IPO listings are only one of many factors that affect the market," said Zhang Yanbing, analyst at Kinghing Securities, adding that many investors had already digested much of this information on Wednesday.


Read more at Reuters.com Hot Stocks News

Merrill Lynch ups bid for Italian fund Berenice

(Reuters) - It said the offer valued the stake at about 437 million
euros.




Berenice, managed by Italian real estate company Pirelli RE
, has assets were worth a little more than 800 million
euros at the end of 2006.


Read more at Reuters.com Mergers News

Palm Oil Little Changed in Malaysia Amid Speculation Supplies Set to Gain

(Bloomberg) -- Palm oil futures in Malaysia, the
benchmark for the commodity, were little changed near a five-
week high amid speculation the price may decline in the second
half of the year as supplies of the vegetable oil increase.

There's ``potential for weaker crude palm oil prices,''
analyst Andreas Bokkenheuser of PT UBS Securities Indonesia said
today from Jakarta. ``The majority of total-year production
occurs in the second half.''


Read more at Bloomberg Commodities News