Merrill eyes new China partner for JV

(Reuters) - Merrill Lynch signed a non-legal binding agreement in 2005 with Huaan Securities, based in the eastern province of Anhui, and the Chinese broker had agreed to be responsible for seeking government approval, the sources said.




However, they failed to win Beijing's greenlight for the planned venture partly because Chinese securities regulator launched a national campaign in late 2005 to restructure its brokerage sector, once in deep financial trouble, putting Merrill Lynch's plan on hold at the time, the sources said.


Read more at Reuters.com Government Filings News

Canadians acquiring a taste for maple bonds

(Reuters) - Maple bonds are foreign debt issued in Canadian dollars,
and have become a growing choice for investors looking to
diversify their holdings.




"Maples are approximately 50 percent of new issue supply in
the Canadian marketplace, year-to-date 2007," said Susan
Rimmer, managing director at Merrill Lynch.


Read more at Reuters.com Bonds News

Optimism for Global Stock Gains Reaches 16-Month High, Merrill Survey Says

(Bloomberg) -- Optimism that global stocks will
climb has increased to a 16-month high in July as investors cast
aside concerns about the effects of rising credit-default risk,
a Merrill Lynch & Co. survey showed.

Confidence that economic growth will continue spurred money
managers to buy riskier assets, including emerging-market
shares, while they reduced holdings of bonds and cash, according
to 186 poll respondents, who together manage $618 billion.


Read more at Bloomberg Stocks News

Merrill CFO says limited risk to Bear hedge funds

(Reuters) - During a conference call with analysts and investors, Edwards reassured them that Merrill Lynch took effective risk management measures before investing in the hedge funds.




He said the company's current exposure to Bear Stearns is "limited and well under control."


Read more at Reuters.com Market News

U.S. Notes Fall as Fed Chairman Bernanke May Reinforce Inflation Concern

(Bloomberg) -- U.S. Treasury notes fell on concern
Federal Reserve Chairman Ben S. Bernanke will say inflation is
still a risk to the economy when he speaks later today.

Notes have declined this month because of speculation the
Fed's concern about prices for goods and services will keep
policy makers from cutting their benchmark interest rate from a
six year-high. Treasuries dropped 0.4 percent in July, including
reinvested interest, adding to losses in May and June, according
to Merrill Lynch & Co. data.


Read more at Bloomberg Bonds News

U.S. Stocks Decline as Brokerage Shares Drop; Bear Stearn, Lehman Tumble

(Bloomberg) -- U.S. stocks dropped and the Standard
& Poor's 500 Index extended its worst weekly decline since
March, dragged down by financial shares on concern losses will
worsen on investments tied to subprime mortgages.

Bear Stearns Cos. fell the most in the S&P 500 after a
Merrill Lynch & Co. analyst said the second-biggest U.S.
underwriter of mortgage bonds may have to salvage another of its
teetering hedge funds. Moody's Corp., whose founder created
credit ratings, and MBIA Inc., the largest bond insurer, also
dropped.


Read more at Bloomberg Stocks News

Bear Stearns, Creditors May Help Save Hedge Fund, Person Familiar Says

(Bloomberg) -- Bear Stearns Cos., the biggest
broker for U.S. hedge funds, offered to provide $1.5 billion in
loans to help rescue a money-losing fund run by its asset-
management unit, a person familiar with the situation said.

The plan calls for New York-based Bear Stearns to provide
the money only if some of the hedge fund's creditors, which
include Merrill Lynch & Co. and JPMorgan Chase & Co., inject
$500 million of cash into the fund, said the person, who
declined to be named because the negotiations aren't public.


Read more at Bloomberg Bonds News

Wall Street droops as oil tops $69 a barrel

(Reuters) - U.S. stocks slipped on Monday as oil climbed toward a 10-month high near $70 a barrel, taking a toll on energy-dependent sectors, while more worrisome data from the housing sector weighed on home builders.

Adding to the wary mood, The Wall Street Journal said Merrill Lynch & Co. took control of $400 million of loan assets underlying a troubled hedge fund at Bear Stearns Cos. Inc. Merrill was a chief lender to the fund, which was heavily invested in subprime loans.


Read more at Reuters Africa

UPDATE 3-BHP eyeing rival bid for Alcan - sources

(Reuters) - NEW YORK/SYDNEY, June 19 - BHP Billiton Ltd.
, the world's largest mining group, is considering a
bid to rival a $28.7 billion offer for aluminium producer Alcan
Inc. , and has hired investment bank Merrill Lynch & Co.
, sources familiar with the matter said.




The emergence of BHP as a possible white knight in the face
of Alcoa Inc.'s hostile offer for Alcan came as Alcoa's
stock hit a six-year high on a report that the U.S. aluminum
company, and not its Canadian rival Alcan, was a target of BHP.
Alcoa stock eased to close less than 1 percent higher.


Read more at Reuters.com Mergers News

UPDATE 1-JetBlue reviews strategy for second time

(Reuters) - Dave Barger, who took over for David Neeleman a month ago,
told a Merrill Lynch conference that he would have a clearer
picture in about 60 days on the airline's direction.




JetBlue reduced its growth outlook last year. and Barger
said cost discipline since has been good. "But there is still
opportunity for improvement," he said.


Read more at Reuters.com Mergers News

US Air close on Boeing vs Airbus decision: CFO

(Reuters) - Boeing last year won back the title of biggest-selling planemaker from Airbus, due largely to sales of its 787.




US Airways, the No. 7 U.S. airline, in terms of revenue, is still negotiating with both companies, Derek Kerr said on a Webcast of a transportation conference sponsored by Merrill Lynch.


Read more at Reuters.com Business News

German, French Power Prices to Rise on Higher Costs, Merrill Lynch Says

(Bloomberg) -- German and French electricity prices
for 2008 may extend gains on higher carbon emission permits and
oil and coal costs, according to Merrill Lynch & Co., the
world's third-largest security firm.

Power for delivery next year in Germany, Europe's biggest
electricity market, is trading at an 11-month high while its
French counterpart is near the highest in seven months. There's
scope for further gains because input costs have outpaced power
prices, said London-based Merrill strategists including
Francisco Blanch and Sabine Schels.


Read more at Bloomberg Energy News

Colombia Peso Rally Will Turn Into Rout, Merrill, Citigroup, Goldman Say

(Bloomberg) -- Wall Street's biggest banks are
certain the Colombian peso, the world's hottest currency, will
tumble for the rest of 2007 and may even erase this year's 16
percent gain.

Merrill Lynch & Co., based in New York, says the peso will
be the worst performer in the foreign-exchange markets, losing
all of its advance against the dollar. Frankfurt-based Deutsche
Bank AG sees a 10.5 percent decline by mid-November, while
Citigroup Inc. in New York expects a 8.9 percent drop by year-
end and Goldman Sachs Group Inc., 6.3 percent.


Read more at Bloomberg Currencies News

Bank, Insurer Borrowing Costs Soar, Reaching Six-Month High in Europe

(Bloomberg) -- Borrowing costs of banks and
financial companies in Europe including Barclays Plc and Munich
Re rose to the highest since December after a surge in yields on
government securities and a decline in stocks this week.

The yield premium, or spread, that investors demand to hold
subordinated debt of banks and insurers instead of government
bonds increased this week by the most in three months, according
to Merrill Lynch & Co. indexes. The spread on Munich Re's 1.5
billion euros of 5.767 percent bonds due 2049 widened 8 basis
points to 137 basis points since the world's second-biggest
reinsurer issued the securities on June 5.


Read more at Bloomberg Bonds News

U.S. Stock-Index Futures Are Little Changed; Avaya Rises as Dell Declines

(Bloomberg) -- U.S. stock-index futures were little
changed before a service-industry report that may help investors
gauge the strength of economic growth and its implications for
Federal Reserve decisions on interest rates.

Avaya Inc. shares advanced in Europe after the company
agreed to be acquired by Silver Lake Partners and TPG Inc. in the
largest leveraged buyout of a computer-networking company. Dell
Inc., the world's second-largest personal-computer maker, fell.
Merrill Lynch & Co. downgraded the stock.


Read more at Bloomberg Stocks News

Treasuries May Fall; Report Will Probably Show Gain in Consumer Confidence

(Bloomberg) -- Treasuries may drop, lifting yields
on benchmark 10-year notes to the highest since January, before
a report that will probably show confidence among U.S. consumers
rose this month.

Ten-year yields have risen almost half a percentage point
in the past four weeks on expectations signs of economic growth
will limit the room for the Federal Reserve to cut interest
rates this year. Treasuries have handed investors a 0.8 percent
loss so far this month, the worst performance since December,
according to Merrill Lynch & Co.


Read more at Bloomberg Bonds News

Japan's Topix Index Falls, Led by Sompo, Insurers; Trading Companies Gain

(Bloomberg) -- Japan's Topix index declined, paced
by insurers after companies such as Sompo Japan Insurance Inc.
and Mitsui Sumitomo Insurance Co. reported their profits fell.

Limiting losses, Japan Tobacco Inc., the world's third-
largest traded cigarette maker, jumped the most in five months
after Merrill Lynch & Co. raised its recommendation on the stock.
Itochu Corp. climbed 4.1 percent after Mizuho Securities Co.
lifted its recommendation on Japan's five largest trading houses.


Read more at Bloomberg Stocks News

U.S. Treasury Yields Hold Near Highest Since February on Growth Outlook

(Bloomberg) -- U.S. 10-year yields held near their
highest since February on expectations a government report
tomorrow will show orders for durable goods rose for a third
month in April.

Ten-year yields have increased by a third of a percentage
point in 11 weeks on expectations signs of growth in the economy
will make it more difficult for the Federal Reserve to cut
interest rates. An index of Treasury securities handed investors
a loss of 0.7 percent so far in May, headed for its biggest
monthly decline since December, according to Merrill Lynch & Co.


Read more at Bloomberg Bonds News

Commercial Mortgage Bond Premiums Rise to Highest in More Than Two Years

(Bloomberg) -- Yield premiums on bonds backed by
mortgages for offices, hotels and malls reached the highest in
more than two years because of investors' concerns about lax
lending standards.

The average yield premium for commercial mortgage-backed
securities is 81 basis points, or 0.81 percentage point, more
than benchmark Treasuries, the widest spread since September
2004, according to Merrill Lynch & Co. CMBS are backed by pools
of commercial loans sliced into bonds of different credit
ratings and maturities.


Read more at Bloomberg Bonds News

U.S. 10-Year Treasury Yields Hold at Three-Month High as Equities Advance

(Bloomberg) -- Ten-year Treasury yields held at the
highest in more than three months after gains in U.S. stocks
added to speculation that economic growth is fast enough to keep
the Federal Reserve from cutting interest rates.

An index of Treasuries has incurred a 0.6 percent loss to
investors so far in May, heading for its biggest monthly drop
since March 2006, according to Merrill Lynch & Co. data. The Dow
Jones Industrial Average rose to a record, while durable goods
orders probably climbed for a third month, according to a
Bloomberg News survey before the government reports the figure
May 24.


Read more at Bloomberg Bonds News