Markets drop as worries grow

(Reuters) - "The outlook for today does not look good. On top of the worries about the exposure of funds to credit markets, now we've worries about weak U.S. economic data," said Choo Hee-yeop, deputy general manager of asset management strategy at Korea Investment and Securities.




At 0025 GMT, Tokyo's Nikkei average had slid 1.6 percent with exporters such as Canon Inc., electronics components maker Kyocera and chip-tester maker Advantest Corp. further hit by a firmer yen.


Read more at Reuters.com Business 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

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

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

Citadel Investment Group Takes Over Credit Holdings of Sowood Capital

(Bloomberg) -- Citadel Investment Group LLC took
over the credit holdings of Sowood Capital Management LP, the
hedge-fund firm started by former Harvard University endowment
manager Jeff Larson.

Terms of the transaction weren't disclosed in a statement
released today by Chicago-based Citadel.


Read more at Bloomberg Bonds News

TIPS Prove Poor Tip for Bond Traders Anticipating Inflation's Acceleration

(Bloomberg) -- Treasury investors say inflation is
abating, even if the oil bulls are right and crude heads to $100
a barrel.

Pacific Investment Management Co. and Fidelity Investments
sold Treasury inflation-protected securities maturing next year,
confident that consumer prices will remain in check. Money
managers lost as much as $275 million on so-called TIPS in the
second half of 2006 because oil fell from record highs and
gasoline prices dropped.


Read more at Bloomberg Bonds News

Corporate Bond Risk Soars on Absolute Hedge Fund Loss, Failed Buyout Loans

(Bloomberg) -- The risk of owning corporate bonds
soared after a hedge fund co-owned by ABN Amro Holding NV's
Australian unit suspended withdrawals and investors shunned
buyout debt in the U.S. and Europe, credit-default swaps show.

Contracts on 10 million euros ($13.8 million) of debt
included in the iTraxx Crossover Series 7 Index of 50 European
companies rose 36,000 euros to 400,000 euros, according to
JPMorgan Chase & Co. The cost of the credit-default swaps, used
to bet of the ability of companies to repay debt, is the highest
in more than two years. The U.S. benchmark CDX Investment Grade
Index jumped $6,000 to $62,750, Deutsche Bank AG said.


Read more at Bloomberg Bonds News

UPDATE 1-S.Korea pension picks foreigners to manage $2 bln

(Reuters) - The state-run pension agency, which has more than $200
billion under its management, said in a statement it plans to
entrust $1 billion with the World Bank, $500 million with a
Morgan Stanley unit and $450 million with a Credit Suisse
unit.




It said the plans were part of its strategic alliance formed
with Morgan Stanley Investment Management and Credit Suisse Asset
Management.


Read more at Reuters.com Bonds News

InterGen Delays Proposed $1.975 Billion Bond Sale Until July 23, KDP Says

(Bloomberg) -- InterGen, the Burlington,
Massachusetts-based power producer, delayed its proposed sale of
$1.975 billion of 10-year notes until Monday, according to KDP
Investment Advisors Inc.

InterGen planned to sell high-yield, high-risk bonds, which
were scheduled to be priced today, in dollars, euros and pounds,
KDP said.


Read more at Bloomberg Bonds News

Asian Stocks Rise for First Day in Four; Newcrest Advances on Metals Gain

(Bloomberg) -- Asian stocks rose for the first time
in four days. Newcrest Mining Ltd. and Sumitomo Metal Mining Co.
led an advance among commodity producers after copper, gold and
oil prices gained.

``Resources stocks generally trade off the back of macro
information and with commodities prices up, they're doing pretty
well,'' said Troy Angus, who helps manage the equivalent of $2.1
billion at Paradice Investment Management Ltd. in Sydney.


Read more at Bloomberg Stocks News

AmeriCredit prices $1.5 bln in asset-backeds

(Reuters) - Lead managers on the transaction are Barclays Capital,
Credit Suisse and Deutsche Bank Securities. The co-managers are
JPMorgan, Lehman Brothers, RBS Greenwich Capital and UBS
Investment Bank.




Read more at Reuters.com Bonds News

Prospect buys stake in Japan TOC amid takeover bid

(Reuters) - DaVinci plans to buy up to 79 million TOC shares, or 58
percent, at 1,308 yen apiece, and DaVinci President Osamu Kaneko
told Reuters in a recent interview that he was confident his
company would have enough shareholder support.




Prospect Asset Management has been actively lobbying with
asset managers for real estate investment trusts to
improve their share performance. It currently owns 22.65 percent
of Japan Single-Residence Reit Inc. and 25.94 percent of
TGR Investment Inc. .


Read more at Reuters.com Mergers News

Asian shares rise after strong Wall Street

(Reuters) - In Hong Kong, conglomerate Fosun International Ltd. is set to make its market debut after raising about $1.5 billion earlier this month in an initial public offering.




"Global markets continue to perform strongly, setting up the stage for more gains," said Kim Hak-kyun, an analyst at Korea Investment and Securities.


Read more at Reuters.com Hot Stocks News

Qatar bank offers up to $6.1 bln for Ahli United

(Reuters) - International Bank of Qatar has offered to buy Ahli United Bank, Bahrain's largest lender by market value, for up to $6.1 billion in cash and stock, an Ahli United shareholder said on Sunday.

International Bank of Qatar, an affiliate of National Bank of Kuwait, is offering between $2.05 and $2.25 per share in cash for a 55 percent stake and the rest in stock, Kuwait's Tamdeen Investment Co. said.


Read more at Reuters Africa

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 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

ISS says sweetened Icahn Lear buyout not enough

(Reuters) - Pzena Investment Management LLC, a firm that has led opposition to the Icahn bid, and the California State Teachers' Retirement System also have stated opposition to the Icahn offer. A shareholder vote is scheduled for Monday.




Read more at Reuters.com Mergers News

China Glass, Deutsche Telekom, Japan Tobacco, Neo-China: Asia Bond Alert

(Bloomberg) -- The following is a list of bond sales
in Asia expected in the coming days and weeks.

Investment Grade


Read more at Bloomberg Bonds News

South Korea's Stocks Gain for a Fourth Day; Samsung Rises on DRAM Prices

(Bloomberg) -- South Korean stocks advanced for a
fourth day, led by Shinsegae Co., after local consumers became
the most confident in 15 months, adding to speculation increased
spending will extend the longest economic expansion in a decade.

Shares also gained after Woori Investment & Securities Co.
lifted its estimate for the Kospi index, citing faster earnings
growth and rising local demand for stocks. Samsung Electronics Co.
paced the climb.


Read more at Bloomberg Stocks News

Volvo Plans More China Acquisitions to Tap Demand for Trucks, Excavators

(Bloomberg) -- Volvo AB, the world's third-largest
construction-equipment maker, aims to make further acquisitions
in China as road-building and real-estate projects boost sales
of wheel loaders, excavators and trucks.

``Acquisitions are natural and the most effective way to
expand,'' Lansi Jiang, vice president of Volvo (China)
Investment Co., said in an interview in Shanghai yesterday.
Volvo bought a 70 percent stake in Shandong Lingong Construction
Machinery Co. for 327.5 million yuan ($43 million) in January.


Read more at Bloomberg Emerging Markets News