TREASURIES-Stocks turn bonds negative

(Reuters) - A government report showed the U.S. economy grew at a
stronger-than-expected annual rate of 3.4 percent in the second
quarter, rebounding from a dismal start to the year.




The report's inflation gauge plunged, indicating that the
Federal Reserve now has more leeway if it needs to cut
benchmark interest rates in the second half of this year.


Read more at Reuters.com Bonds News

Freddie Mac to sell $2.5 billion bills on Monday

(Reuters) - -- $1.5 billion of three-month bills due Oct. 29, 2007 to
be sold Monday and settle Tuesday; and




-- $1.0 billion of six-month bills due Jan. 28, 2008 to be
sold Monday and settle Tuesday.


Read more at Reuters.com Bonds News

UPDATE 1-US July consumer sentiment up, risks linger-U.Mich

(Reuters) - The Reuters/University of Michigan Surveys of Consumers
said its final July reading on consumer sentiment was 90.4, a
touch below the median forecast of 91.2 and the preliminary
July reading of 92.4, which was a six-month high.




But it bounced back from June's final reading of 85.3, a
10-month low, and posted the index's best showing since
February, when it stood at 91.3.


Read more at Reuters.com Economic News

Gol, Sadia, TAM, Vivo and Vale do Rio Doce: Brazil Equity Market Movers

(Bloomberg) -- Brazil's main stock index fell for a
second day, led by mining company Cia. Vale do Rio Doce.

The Bovespa Index of the most-traded stocks on the Sao
Paulo exchange fell 71.66, or 0.1 percent, to 53,821.49 as of
10 a.m. New York time.


Read more at Bloomberg Stocks News

CORRECTED - UPDATE 2-American Axle 2nd-qtr earnings jump 67 pct

(Reuters) - American Axle also said its backlog of new business, a key focus of auto parts suppliers, has increased by about $400 million to $1.2 billion for vehicle programs starting in the 2008 to 2012 time period.



Net income rose to $34 million, or 64 cents per share, in the second quarter, from $20.4 million, or 40 cents per share, a year earlier.


Read more at Reuters.com Market News

Mozambique rail firm keen to cut Spoornet wagon link

(Reuters) - Mozambique's state-run railway company said on Friday it was investing $30 million to upgrade its commercial fleet in a move to cut $100 million in wagon hiring fees charged by South African rail freight firm Spoornet.

CFM, which operates the African nation's railways and ports, plans to refurbish 820 refurbished wagons with the investment, more than doubling the current number that travel lines to South Africa and Zimbabwe, spokesman Antonio Libombo said.


Read more at Reuters Africa

Horizon Lines quarterly profit rises

(Reuters) - Excluding one-time items, it earned 29 cents a share.




Analysts on average had expected the Charlotte, North
Carolina-based company to earn 32 cents a share, according to
Reuters Estimates.



Read more at Reuters.com Market News

Oil Rises After Government Report Shows U.S. Growth Exceeded Expectations

(Bloomberg) -- Crude oil rose after a government
report showed that the U.S. economy grew more than expected in
the second quarter, indicating fuel demand will rise in the
world's biggest energy consumer.

The economy grew 3.4 percent last quarter, the fastest pace
in more than a year. Economists surveyed by Bloomberg News before
the report predicted a 3.2 percent gain. The U.S. consumes 24
percent of global oil production.


Read more at Bloomberg Energy News

TREASURIES-Bonds add to gains on much softer PCE

(Reuters) - U.S. gross domestic product did rise more-than-expected in
the second quarter at 3.4 percent, but that was accompanied by
a pullback in the core personal consumption expenditures index
to 1.4 percent from 2.4 percent.




That put it well into the Fed's comfort range, and
heightened already rife speculation that a housing-led credit
crunch could force the central bank to cut interest rates
before the year is over.


Read more at Reuters.com Bonds News

Crude Oil Rebounds After U.S. Reports Economy Growing Faster Than Forecast

(Bloomberg) -- Crude oil rose after the U.S.
government reported its economy expanded more than expected in the
second quarter, indicating demand for energy will keep rising.

The U.S. economy grew 3.4 percent last quarter, the fastest
pace in more than a year. Economists surveyed by Bloomberg News
before the report predicted a 3.2 percent gain.


Read more at Bloomberg Commodities News

Moog posts higher quarterly earnings

(Reuters) - Sales in the latest quarter, rose 21 percent to $403.8
million. Analysts on average expected $370.6 million.





Read more at Reuters.com Market News

U.K. Pound Falls Most in Five Months as Investors Unwind Carry Trades

(Bloomberg) -- The pound fell the most against the
dollar in almost five months as global stocks slumped and
investors pared so-called carry trades on concern U.S. subprime
mortgage defaults will slow growth.

The U.K. currency dropped more than 1 percent against the
dollar today, falling from near a 26-year high, as investors
unwound purchases of assets funded by borrowing in Japan and
Switzerland, which have the lowest rates among major economies.
The pound this week fell 3 percent against the yen, its biggest
decline since March.


Read more at Bloomberg Currencies News

Cisco to buy $150 mln of VMware shares

(Reuters) - VMware, which plans to go public soon, also said it agreed
to consider the appointment of a Cisco executive to VMware's
board of directors at a future date.





Read more at Reuters.com Mergers News

Clear Channel Outdoor quarterly profit rises

(Reuters) - Revenue rose 12 percent to $836.7 million.





Read more at Reuters.com Market News

Clear Channel posts higher profit

(Reuters) - The radio station operator, which is preparing for a shareholder vote on a proposed $19.6 billion buyout, said earnings rose to $236 million, or 48 cents per share, from $197.5 million, or 39 cents per share, a year ago.



Net income from before discontinued operations was $209 million, or 42 cents per share, compared with $173 million, or 34 cents per share, in the year-ago period.


Read more at Reuters.com Mergers News

UPDATE 1-Medco 2nd-quarter profit rises 26 percent

(Reuters) - Medco, whose second-quarter results beat analyst estimates,
also raised its full-year forecast.




Net income rose to $214.9 million, or 76 cents per share,
from $170.9 million, or 56 cents per share, a year earlier.


Read more at Reuters.com Market News

Global financial markets stabilize after tremble

(Reuters) - Earlier, world stocks hit a 6-week low while credit spreads and emerging sovereign bond spreads burst wider as fears grew that a U.S. housing fallout might trigger a global credit crunch.




But European shares have since erased losses as auto shares rallied following strong Volkswagen results. U.S. stock futures pointed to a firmer open on Wall Street after it suffered the biggest fall since February.


Read more at Reuters.com Bonds News

South African Rand Headed for Weekly Decline on Risk Aversion

(Bloomberg) -- South Africa's rand headed for its
biggest weekly decline in almost five months as investors sold
emerging-market assets on concern losses related to defaults on
U.S. subprime mortgages will slow the global economy.

The rand is the second worst performer among the 16 most
heavily traded currencies this week while investors also reduced
holdings of bonds as inflation stayed above target for a third
consecutive month. South African stocks are set for their biggest
weekly fall since the beginning of March.


Read more at Bloomberg Currencies News

Metals steady as credit risks balance strike action

(Reuters) - Copper steadied on Friday as fears of credit risk in global markets were balanced by industrial action in the world's top copper producer.

Asian shares lost ground, tracking overnight losses in Wall Street as fears grew that a U.S. housing fallout might trigger a global credit crunch.


Read more at Reuters Africa

European shares bounce back, carmakers rally

(Reuters) - European shares reversed early sharp losses on Friday to rise nearly 0.7 percent on the day as robust corporate results from car makers helped offset worries over the credit market and the health of the U.S. economy.

At 0901 GMT, the pan-European FTSEurofirst 300 index was up 0.58 percent, at 1,536.49 points, after falling more than 1 percent in early trade. It dropped 2.8 percent on Thursday on signs of deteriorating conditions for corporate buyouts and further weakness in the U.S. housing market.


Read more at Reuters Africa

Japan Shares Drop on Concern U.S. Housing Slump Will Worsen; Canon Plunges

(Bloomberg) -- Japanese stocks tumbled by the most
in more than four months, on concern a worsening U.S. housing
slump will slow economic growth in the world's biggest economy
and prompt investors to shun equities.

Companies that rely on U.S. sales plunged. Canon Inc. slid
the most since October 2003 and Honda Motor Co. fell 2.5 percent.


Read more at Bloomberg Stocks News

Global Stock Sell-off to Be Short-Lived, Credit Suisse Strategists Say

(Bloomberg) -- The rise in bond yield spreads
doesn't amount to a credit crisis and losses in equities should
be short-lived, according to Credit Suisse Group's equity
strategists.

Corporate credit spreads, or the difference that companies
pay to take on debt relative to what governments would, have
risen too far in recent days, a team of strategists led by Andrew
Garthwaite wrote in a note today. Companies are earning enough
money and private-equity firms have enough investment to sustain
takeovers, buybacks and share gains, they wrote.


Read more at Bloomberg Stocks News

Infineon actively explores cutting Qimonda stake

(Reuters) - "We are actively exploring ways to reduce our stake," he
said, adding that he could not be more specific.




Infineon still owns 86 percent of Qimonda, which reported
large losses earlier this week.


Read more at Reuters.com Mergers News

Reuters China Forum-Beijing could issue more bonds to buy FX

(Reuters) - The foreign exchange assets will be managed by the new
investment agency, which will have a mandate to take more risks
in order to generate higher returns.




Jia Kang, president of the Institute of Fiscal Sciences, a
Ministry of Finance think-tank, said the transaction was unlikely
to be the last of its kind.


Read more at Reuters.com Bonds News

Cadbury delays U.S. drinks sale amid mkt turmoil

(Reuters) - Cadbury, the world's biggest confectionery group, said in a statement that the sale process for its North American beverage business is ongoing, and that interest remains strong.




"However, the leveraged debt markets have experienced extreme volatility in recent days. As a result, a decision has been taken to extend the sale timetable to allow bidders to complete their proposals against a more stable debt financing market," the group said in a statement.


Read more at Reuters.com Mergers News

Gold rebounds after sell-off, Tokyo hits 1-month low

(Reuters) - Gold recovered on Friday after tumbling to its lowest in two weeks the previous day, while Tokyo futures slipped for the fifth day in a row to a one-month low as investors ditched their holdings.

"A plunge in U.S. shares has triggered some sell-offs in commodities, but the market is not panicking now. We've seen a similar turbulence in the last several months, so I think the market is getting used to it," said Shuji Sugata, manager at Mitsubishi Corp Futures and Securities.


Read more at Reuters Africa

Platinum Futures Drop in Tokyo Trading as Stock Rout Cuts Risk Appetite

(Bloomberg) -- Platinum futures fell in Tokyo for a
fifth day as a rout in global equities and declines in prices for
other commodities dulled investors' demand for risk.

Asian stocks fell the most in four months on concern a
worsening U.S. housing recession would damp global growth. Copper
declined for a fourth session in New York, the longest slump in
more than a month, while crude oil had its biggest plunge in four
months yesterday.


Read more at Bloomberg Commodities News

BSkyB posts strong operating profit, revenue

(Reuters) - Analysts had expected operating profit of 775 million pounds
and revenue of 4.52 billion pounds according to Reuters
Estimates.




Read more at Reuters.com Market News

European Stocks May Drop, Led by Credit Suisse, Deutsche Bank, Infineon

(Bloomberg) -- European stocks may fall for a fourth
day on concern that financing difficulties in the credit market
will stifle mergers and acquisitions.

Credit Suisse Group and Deutsche Bank AG may follow their
U.S.-traded securities lower. Infineon Technologies AG, Valeo SA
and LVMH Moet Hennessy Louis Vuitton SA may drop after earnings
missed analysts' estimates.


Read more at Bloomberg Stocks News