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

Fujitsu Q1 oper profit down 80 pct, lifts outlook

(Reuters) - The company nudged up its forecast for full-year operating
profit to 195 billion yen from 190 billion, slightly exceeding a
consensus estimate of 194.6 billion yen by 15 analysts polled by
Reuters.




Fujitsu, the world's fifth-biggest maker of servers in a
market dominated by Hewlett-Packard Co. and IBM, is
seeking inroads abroad. It recently made a 395 million euro hostile bid for French computer services firm GFI
Informatique to tap information technology demand in
France and Spain.


Read more at Reuters.com Market News

UPDATE 1-InterGen cuts bond size, ups yields -source

(Reuters) - The iTraxx Crossover index , the most closely
watched barometer of European credit sentiment, widened another
15 basis points to trade as high as 358 basis points on Monday,
after a steep 34 basis-point rise on Friday.




InterGen now plans to price $1.2 billion to $1.3 billion of
10-year bonds at 99.189 with a coupon of 9 percent to yield
9.125 percent; 175 to 200 million pounds of 10-year bonds at
99.209 with a coupon of 9.5 percent to yield 9.625 percent; and
160 to 185 million euros of 10-year bonds with a coupon of 8.5
percent to yield 8.625 percent, the source said.


Read more at Reuters.com Bonds News

U.K. Day-Ahead Electricity Price Declines as Cost of Natural Gas Falls

(Bloomberg) -- U.K. power declined on cheaper
natural gas, which fuels about 40 percent of Britain's
electricity generation.

U.K. baseload power for delivery a day ahead dropped 23
percent to 27.95 pounds ($57.30) a megawatt hour, according to
prices on Bloomberg from the broker GFI Group Inc. It earlier
traded as high as 28.85 pounds a megawatt hour.


Read more at Bloomberg Energy News

Risk of Subprime Bonds Rises for a Second Day, Default Swaps Index Shows

(Bloomberg) -- The risk of owning bonds backed by
subprime mortgages rose a second day after surging yesterday
amid concern that losses will accelerate.

An index of credit-default swaps linked to 20 securities
rated BBB- and created in the second half of 2006 fell 1.2
percent to 44.75 at 2:57 p.m. in New York, data from broker GFI
Group Inc. show. The ABX-HE-BBB- 07-1 index dropped 7.5 percent
yesterday to 45.28, according to London-based Markit Group Ltd.


Read more at Bloomberg Bonds News

GLOBAL MARKETS-Stocks, dollar rise on fresh taste for risk

(Reuters) - The calming of fears over possible spillover effects from
troubles in the U.S. subprime mortgage market -- which caters to
borrowers with poor credit histories -- were also mirrored in
European government bond markets as debt prices fell.




The iTraxx Crossover index , the most widely
watched barometer of European credit sentiment, also entered
calmer waters after extreme subprime-related jitters.


Read more at Reuters.com Economic News

German Power for 2008 Declines as Carbon Emission Trade Near One-Week Low

(Bloomberg) -- German electricity for delivery next
year slipped for a third day as the price of carbon-emission
allowances declined, reducing the cost of generating power by
burning fossil fuels.

Next-year baseload power prices in Germany, Europe's
biggest electricity market, fell as much as 25 cents, or 0.5
percent, to 55.45 euros ($74) a megawatt-hour, according to
broker GFI Group Inc. at 9 a.m. Berlin time.


Read more at Bloomberg Energy News

German Power Prices Fall on Expected Gain in Electricity Output Capacity

(Bloomberg) -- German day-ahead electricity prices
fell on forecasts that production from wind turbines, the most
unpredictable source of energy, will increase in Europe's biggest
power market.

Baseload power for delivery tomorrow fell as much as 3.4
euros, or 9.1 percent, to 34 euros ($46.26) a megawatt-hour,
according to broker GFI Group Inc. on Bloomberg. It traded at
34.25 euros at 10:25 a.m. in Berlin. Baseload refers to
electricity delivered around the clock.


Read more at Bloomberg Energy News

German Day-Ahead Power Price Climbs to Week-High on Forecast for Less Wind

(Bloomberg) -- German power prices for next-day
delivery climbed to their highest in more than a week on
expectations wind-power capacity will return to normal, reducing
supplies in Europe's biggest electricity market.

Baseload German power climbed as much as 10 euros, or 34
percent, to 39 euros ($53) a megawatt-hour, according to prices
from GFI Group Inc. on Bloomberg. The contract traded at 37.30
euros at 11 a.m. in Berlin, the highest since June 21. Baseload
refers to electricity delivered around the clock.


Read more at Bloomberg Energy 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