UPDATE 2-Blaming begins in Minneapolis bridge collapse

(Reuters) - MINNEAPOLIS, Aug 3 - The Minneapolis Fire Chief
said on Friday it was a miracle that only five people had so
far been confirmed dead in the collapse of one of the city's
main road bridges over the Mississippi River.




Minnesota Gov. Tim Pawlenty said outside experts would
review the decisions of state engineers to delay certain repair
work on the heavily traveled 40-year-old bridge, which crumpled
during evening rush hour on Wednesday.


Read more at Reuters.com Bonds News

UPDATE 1-Alaska sets session to revisit disputed oil tax

(Reuters) - ANCHORAGE, Alaska, Aug. 3 - A new oil tax that is
a subject of a wide-ranging Alaska corruption investigation
will get a rewrite at a special legislative session on
Oct. 18, Gov. Sarah Palin said on Friday.




The Petroleum Profits Tax, enacted last year at the urging
of former Gov. Frank Murkowski, has proved less lucrative for
the state than advertised and has been clouded by revelations
about political corruption, Palin said at a Juneau news
conference.


Read more at Reuters.com Bonds News

Berkshire Hathaway profit rises 33 pct

(Reuters) - Operating profit, excluding gains from investments and derivatives, rose 22 percent to $2.51 billion, or $1,625 per share, from $2.05 billion, or $1,331.




Analysts on average had expected profit of $1,460 per share, according to Reuters Estimates.


Read more at Reuters.com Market News

Brazil stocks, currency slide on US credit worries

(Reuters) - The benchmark Bovespa index of the Sao Paulo Stock
Exchange slid 3.37 percent to close at 52,846.38 points, its
worst one-day decline since July 26 when the index lost 3.76
percent amid similar concerns about the U.S. credit market.




Brazil's currency, the real , weakened 1.4 percent to
close at 1.902 per U.S. dollar.


Read more at Reuters.com Bonds News

Ternium says will merge Mexico's Hylsamex and IMSA

(Reuters) - "The coming week I will announce the new organizational
structure of both companies working together as a sole entity from
the managerial standpoint in order to be able to get all the
synergies and all the value creation that we expect to get,"
Novegil said.




In 2005, Ternium bought Mexico's No. 2 steelmaker Hylsamex, or
Hylsa as it is now called on the company Web site. In late July,
Ternium completed its purchase of IMSA, another leading
steelmaker, in an operation valued at some $3.2 billion.


Read more at Reuters.com Mergers News

Monsanto seeks $100 mln damages from Novartis

(Reuters) - CHICAGO, Aug 3 - Biotech crop company Monsanto Co said on Friday it filed an arbitration claim against Novartis AG's Sandoz unit, seeking to recover at least $100 million in damages it says were caused by Sandoz in suppling a Monsanto product.



St. Louis-based Monsanto said it filed a claim against Sandoz in an international arbitration proceeding, arguing Sandoz' failure to meet U.S. Food and Drug Administration quality standards disrupted supplies to Monsanto.


Read more at Reuters.com Government Filings News

TREASURIES-Bond prices extend gains on weak services data

(Reuters) - The benchmark 10-year note was 11/32 higher in
price for a yield of 4.73 percent from 4.75 percent before the
data and 4.77 percent late on Thursday, while the two-year note
_was 5/32 in price for a yield of 4.51 percent from
4.53 percent.




Read more at Reuters.com Bonds News

S&P, Fitch cut Boston Scientific's debt to junk

(Reuters) - Saddled with debt after its $27 billion acquisition of
Guidant Corp. and hampered by slowing sales of its most
lucrative heart devices, the company said in March it was
exploring the partial sale for more than $1 billion.




"Fitch's prior rating for BSX was highly dependent on the
timely paydown of debt with cash proceeds from the potential
divestiture," Fitch said in a statement. "More pressure has now
been placed on BSX's operations, which are currently
challenged, to reduce debt and leverage."


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Mexican markets slip on weak U.S. jobs data

(Reuters) - The benchmark IPC stock index fell 0.81 percent to
30,145 points, while the peso currency slipped
0.10 percent to 10.9680 per dollar.




The price of the benchmark 10-year peso bond fell 0.124 points to bid 101.088 points, with a yield of 7.82
percent.


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US STOCKS-S&P, Nasdaq fall 1 percent on credit worries

(Reuters) - The S&P 500 and the Nasdaq fell more than 1 percent.




The Dow Jones industrial average was down 104.37
points, or 0.78 percent, at 13,358.96. The Standard & Poor's
500 Index was down 19.34 points, or 1.31 percent, at
1,452.86. The Nasdaq Composite Index was down 30.22
points, or 1.17 percent, at 2,545.76.


Read more at Reuters.com Bonds News

Wells Fargo, other lenders curb mortgage loans

(Reuters) - Wells Fargo, the second-largest U.S. mortgage lender, said it is curtailing issuance of "Alt-A" home loans through brokers, while Wachovia has stopped entirely. Wachovia also said one lending unit has temporarily halted its Alt-A production.




Lenders are making fewer home loans once thought to be safe because investors now perceive those loans to be risky. The changes could worsen the U.S. housing slump by putting home ownership beyond the reach of a larger number of Americans.


Read more at Reuters.com Bonds News

European Stocks Drop, Paced by BMW, Philips, Hypo Real Estate, Depfa

(Bloomberg) -- European stocks fell after reports in
the U.S. showed employers added fewer jobs than forecast last
month and growth in U.S. service industries slowed, reigniting
concern the world's biggest economy is cooling.

Bayerische Motoren Werke AG and Royal Philips Electronics NV
paced declines among companies that rely on sales in the U.S. The
Dow Jones Europe Stoxx Oil & Gas Index dropped to the lowest in
three months, led by Total SA and BP Plc after Citigroup Inc.
reduced its recommendation for the oil industry. Hypo Real Estate
Holding AG, the mortgage bank spun off from HVB Group, and Depfa
Bank Plc led financial shares lower.


Read more at Bloomberg Stocks News

Chile's Madeco first-half net profit falls 36.5 pct

(Reuters) -







Read more at Reuters.com Market News

Use Swaptions to bet U.K. Interest Rates Have Peaked, Credit Suisse Says

(Bloomberg) -- Investors should use swaptions to bet
the Bank of England won't raise benchmark interest rates beyond
5.75 percent because inflation has peaked, according to Credit
Suisse.

Prices for swaptions, options on interest rate swaps,
signal traders expect further rate increases. Investors can
profit with swaptions if benchmark rates hold steady, analysts
at Credit Suisse, Switzerland's second-biggest bank, said in a
strategy note.


Read more at Bloomberg Currencies News

UPDATE 1-C-BASS retains Blackstone to seek more capital

(Reuters) - C-BASS faces a liquidity crisis that has forced its two
biggest investors, MGIC Investment Corp. and Radian
Group Inc. , to consider writing down more than $1
billion worth of their investment in C-BASS.




C-BASS said in a statement that it has been working with a
number of investors to resolve its liquidity problems and
create "a long-term partnership."


Read more at Reuters.com Mergers News

Muni Tobacco Debt Has Worst Month Since 2005 in July, A.G. Edwards Says

(Bloomberg) -- Tax-exempt bonds backed by the 1998
national tobacco settlement had their worst monthly performance
in July since late 2005, prompting one borrower to shelve a
scheduled tobacco debt sale and another to sell its offering
sooner than planned on concerns of a further decline.

The extra yield, or spread, investors demand on benchmark
municipal tobacco bonds compared with top-rated municipal debt
widened by 35 basis points, the most in more than 18 months, to
124 basis points, A.G. Edwards Inc. said in a report. Puerto
Rico postponed its $238 million sale July 31, while California's
Riverside County sold a $295 million deal a week sooner than
planned. A basis point is 0.01 percentage point.


Read more at Bloomberg Bonds News

Air Liquide says KKR bid talk "barely credible"

(Reuters) - Potier added that Air Liquide had a long-term shareholder
base and highlighted the company's regular earnings growth.




Read more at Reuters.com Mergers News

Fortis seen clearing shareholder hurdle over ABN

(Reuters) - If it does not garner enough support it could spell the end not only to Fortis's ambitions of expanding in the Benelux but also the joint 71 billion euro bid of its consortium partners Royal Bank of Scotland and Spain's Santander .




Fortis will ask shareholders, who have seen their stock drop by almost 18 percent since it confirmed its approach for ABN in April, to back the planned takeover in general and its financing through Europe's second largest rights issue.


Read more at Reuters.com Mergers News

Suit by Bayou hedge fund investor dismissed

(Reuters) - Bayou, which once managed around $400 million, collapsed in
2005 after the discovery of multiple frauds by its managers led
by Sam Israel III and Daniel Marino, both of whom later pleaded
guilty to various charges and await sentencing.




New York-based Hennessee, which is managed by Lee Hennessee
and her husband Charles Gradante, claimed it undertook a
rigorous, five-step due diligence review before recommending
clients invest in any hedge fund.


Read more at Reuters.com Mergers News

Germany faces political pressure over IKB exposure

(Reuters) - KfW, which generally funds development projects, owns 38
percent of IKB and pledged earlier this week to take
responsibility for an 8 billion euro guarantee
given by the troubled lender for now uncertain U.S. investments.




The plan to use state funds to support a bank that got into
trouble by investing in the U.S. subprime mortgage market has
drawn criticism from opposition politicians and a senior finance
policy figure in Chancellor Angela Merkel's conservatives.


Read more at Reuters.com Government Filings News

Global stocks steady after earnings soothe credit nerves

(Reuters) - Almost two weeks of a sell-off in equity and credit markets stemmed from concerns that a fallout in the U.S. housing sector will trigger a broad repricing of risks in a market which enjoyed cheap money and high appetite for high-yielding assets.




But a string of forecast-beating results from major companies, including Allianz , Royal Bank of Scotland and British Airways on Friday, has helped soothe such concerns. Investors are keen to see U.S. jobs data due later in the day for more clues on the strength of the economy.


Read more at Reuters.com Hot Stocks News

Miner Anglo to sell Tarmac

(Reuters) - The copper, platinum and gold specialist said on Friday it made underlying earnings of $3.1 billion in the six months to June 30, broadly in line with analysts' average forecast of $3.2 billion, according to Reuters Estimates, and said the outlook for most of its metals and minerals remained positive.




Read more at Reuters.com Business News

Workers at Vodacom halt strike

(Reuters) - Workers at South African mobile phone operator Vodacom have halted a strike around union recognition and pay, Vodacom said on Thursday.

The Communication Workers Union -- which has around 1,200 members -- went on strike last month after it said Vodacom had refused to recognise it on the grounds that it is too small.


Read more at Reuters Africa

Miners, banks push S.Africa Top-40 index 1 pct up

(Reuters) - South Africa's blue chip Top-40 index gained over one percent in early trade on Friday, boosted by mining and bank stocks as global stock markets recovered.

The Top-40 index rose as much as 1.28 percent to 25,518 points. By 0748 GMT, the index was 0.97 percent firmer at 25,493 points.


Read more at Reuters Africa

S.Africa's Mboweni warns on inflation, hints on rates

(Reuters) - South African central bank chief Tito Mboweni warned on Friday inflationary pressures were "more worrying", hinting interest rates may have to rise again in Africa's biggest economy.

The Reserve Bank governor told parliament's finance committee there was no other instrument to tame inflation except rates, referring to commercial bank reserve requirements and restrictions on credit providers.


Read more at Reuters Africa

S.African stocks slide on global jitters; Lewis up

(Reuters) - South African stocks hit an almost four-month low on Friday as weaker global markets rattled financial stocks but retailer Lewis bucked the trend after it said sales rose and its credit book was in good shape.

The Johannesburg Top-40 index of blue-chip stocks dropped 1.11 percent to 24,915.31 points, its lowest closing level since April 11. The All-share index fell 1 percent to 27,582.01 points.


Read more at Reuters Africa

UPDATE 1-Jobs data show US economy strong-WH's Lazear

(Reuters) - "I think the jobs numbers, although lower than the previous
month, are still within range and we still think of these as
good, solid numbers," Council of Economic Advisers Chairman
Edward Lazear told reporters.




He was speaking after data showed a less-than-expected
92,000 new U.S. jobs were created in July versus a downwardly
revised 126,000 the previous month.


Read more at Reuters.com Economic News

Gold, Silver Rise as Lack of Higher U.S. Interest Rates May Erode Dollar

(Bloomberg) -- Gold and silver rose in New York on
speculation a slowing U.S. economy may keep the Federal Reserve
from raising interest rates, weakening the dollar and boosting
the appeal of precious metals as alternative investments.

Five of the past six bear markets for the dollar have
resulted in a higher gold price. The metal is up 6.7 percent
this year as the dollar has declined to a record low against the
euro. Investment in StreetTracks Gold Trust, an exchange-traded
fund backed by bullion, reached a record 507 tons on Aug. 1.


Read more at Bloomberg Commodities News

Toyota says upward trend in U.S. sales intact

(Reuters) - The highest was July 2006, when industry volumes grew on back of big incentives being offered led by Detroit brands.




He also said U.S. sales incentives on the Tundra pick-up truck were on track to decline.


Read more at Reuters.com Market News

D.Post Q2 tops consensus, may hike FY goal after Q3

(Reuters) - BONN, Germany, Aug 3 - German mail and logistics group Deutsche Post stuck to its full-year earnings goal despite a 10 percent rise in second-quarter operating profit, boosted by its DHL express delivery and logistics units.



Post said it continued to expect 2007 earnings before interest and tax excluding one-off items of at least 3.6 billion euros , up from 3.51 billion last year. Group 2006 EBIT including one-off items was 3.87 billion euros.


Read more at Reuters.com Market News

Telus profit falls on charges, abandons BCE quest

(Reuters) - Net earnings declined to C$253.1 million , or 75 Canadian cents a diluted share. That is down from a profit of C$356.6 million, or C$1.02 a share, in the same period last year. Telus, which confirmed its 2007 financial forecasts, also said it will not make a takeover bid for rival BCE , saying that it can generate growth on its own.






Read more at Reuters.com Market News

U.S. staffing stocks fall after July jobs report

(Reuters) - The U.S. economy added 92,000 nonfarm jobs in July, below the
130,000 expected, and jobs growth in May and June was revised down
slightly. The jobless rate moved up to 4.6 percent, the Labor
Department said.




Jonas Prising, who heads North American operations at Manpower
Inc. , said Manpower's clients are cautious in their
outlook, but they remain optimistic.


Read more at Reuters.com Market News

`Uncle Ted' Stevens's Corruption Probe Imperils Federal Dollars for Alaska

(Bloomberg) -- The federal corruption investigation
of U.S. Senator Ted Stevens not only threatens the career of the
longest-serving Republican in Senate history, it also puts at
risk the billions of dollars that ``Uncle Ted'' steers to
Alaska.

``Republicans, Democrats, everybody still hopes that
nothing has gone wrong here, since he's so important to the
state,'' said Republican State Representative Ralph Samuels, the
majority leader in Alaska's House.


Read more at Bloomberg Exclusive News

Australian, New Zealand Dollars Rise as U.S. Stock Gain Lifts Carry Trade

(Bloomberg) -- The Australian and New Zealand
dollars gained for a second day against the yen as a rally in
U.S. stocks attracted investors to higher-yielding assets funded
by loans from Japan.

The two currencies headed for weekly gains, recovering from
two-month lows, as the Dow Jones Industrial Average had the
first two-day gain in two weeks. New Zealand's 7.75 percentage
point and Australia's 5.75 point interest-rate premium over
Japan make the currencies favorites for so-called carry trades.


Read more at Bloomberg Currencies News

European Carbon Emission Permits Fall as U.K. Natural-Gas Prices Decline

(Bloomberg) -- European Union carbon dioxide permits
fell as U.K. natural-gas prices dropped, making the cleaner-
burning fuel more attractive to power producers.

Permits for December 2008 lost as much as 30 cents, or 1.5
percent, to 20.40 euros ($27.94) a metric ton on the European
Climate Exchange in Amsterdam. They traded at 20.57 euros at
11:13 a.m. local time. That's the second drop in three days.


Read more at Bloomberg Energy News

Carry Trade a `Threat' to Markets, Yen Too Weak, South Korea's Kwon Says

(Bloomberg) -- South Korea's Finance Minister Kwon
Okyu said the yen's weakness isn't justified and that carry
trades based on the Japanese currency threaten to destabilize
global markets.

Borrowing cheaply in Japan to buy assets with higher
returns is ``a potential threat to the international financial
markets and there is a need for a global reaction,'' Kwon said
in a statement after a meeting of Asia Pacific Economic
Cooperation finance ministers in Coolum, Australia.


Read more at Bloomberg Emerging Markets News

CCS Medical sees IPO of 10 mln shares at $14-$16 each

(Reuters) - The company said it had applied for a Nasdaq listing under
the symbol "CCSM."





Read more at Reuters.com Bonds News

EURO CREDIT-Index liquidity seen good despite turmoil

(Reuters) - The iTraxx Crossover index , viewed as a
barometer for European credit sentiment, has this week moved
between 380 and 505 basis points, a huge range that in the
credit market is more likely to be seen over a period of a year
or more rather than a week.




Single-name credit default swap and cash bond liquidity has
suffered, with bid-offer spreads widening sharply and traders
saying little business is being transacted.


Read more at Reuters.com Bonds News

UPDATE 1-US RATE FUTURES-Chances of Fed cuts up on weak job data

(Reuters) - CHICAGO, Aug 3 - U.S. short-term interest rate
futures on Friday boosted the implied chances for Federal
Reserve rate cuts this year after weak July payrolls growth and
a rise in the unemployment rate.




The U.S. Labor Department said 92,000 nonfarm payroll jobs
were created in July, below the median forecast of 130,000. The
July jobless rate inched up to 4.6 percent from 4.5 percent in
June, for its highest since January.


Read more at Reuters.com Bonds News

Japan's Topix Gains as Earnings Ease U.S. Growth Concern; Konica Advances

(Bloomberg) -- Japan's Topix index advanced after
better-than-forecast earnings in the U.S. lifted indexes there
and eased investor concern that the subprime loan problem will
derail growth in Japan's largest export market.

Exporters also got a boost after the yen weakened against
the dollar and companies including Konica Minolta Holdings Inc.
reported rising profits. Konica jumped the most in three weeks.


Read more at Bloomberg Stocks News

U.S. Stock-Index Futures Retreat After Jobs Growth Trails Forecasts

(Bloomberg) -- U.S. stock-index futures declined
after a government report showed employers added fewer jobs than
economists forecast in July and concern grew that credit-market
losses are spreading.

American Home Mortgage Investment Corp., which caters to
borrowers who can't satisfy all the terms of a prime mortgage,
plunged after telling staff it will shut down. Network Appliance
Inc. decreased after the maker of data-storage computers said
profit missed its forecast because big customers cut spending.


Read more at Bloomberg Stocks News