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

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

Kookmin Bank's Second-Quarter Profit Plunges to $256 Million on Back Taxes

(Bloomberg) -- Kookmin Bank, South Korea's largest,
said second-quarter profit fell 70 percent because of back taxes
related to the 2003 takeover of its credit-card unit.

Net income fell to 236.3 billion won ($256 million) from 777
billion won a year earlier, the Seoul-based company said in
regulatory filing today. Kookmin was expected to earn 672 billion
won, according to the average of six analyst estimates
compiled by Bloomberg.


Read more at Bloomberg Emerging Markets News

South Korean Won Falls Most in a Month; Finance Minister Predicts Decline

(Bloomberg) -- The South Korean won declined the
most in more than a month after Finance Minister Kim Sung Jin
said the currency is poised to drop from its strongest since
1997 as the current-account surplus shrinks.

``The won is overly highly valued and that's the view
shared among the government, the Bank of Korea,'' and other
research agencies, Seoul-based Kim said in a phone interview
yesterday. ``The chance of currency depreciation is greater than
for appreciation.''


Read more at Bloomberg Currencies News

Hyundai Motor May Say Net Income Rose on Higher South Korean Auto Demand

(Bloomberg) -- Hyundai Motor Co., South Korea's
third-largest exporter, will probably report the first increase
in profit in six quarters after selling more cars at home.

Net income at the Seoul-based automaker probably rose 30
percent to 502 billion won ($549 million) in the three months
ended June 30 from 387.3 billion won a year earlier, according
to the median estimate of 11 analysts surveyed by Bloomberg.
Sales probably gained 11 percent to 7.77 trillion won.


Read more at Bloomberg Emerging Markets News

South Korean Won Rises to Strongest This Year; Philippine Peso Declines

(Bloomberg) -- South Korea's won rose to the
strongest this year before a government report tomorrow that may
show the nation's economy grew at the fastest pace in 1 1/2 years
last quarter. Bonds gained.

The won has risen 1 percent this month and the Kospi index
advanced to a record as the central bank and government raised
their growth forecasts. The Bank of Korea may allow the won to
appreciate faster as a 2.3 percent rally in Japan's currency
against the dollar this month eased concern exporters will lose
competitiveness.


Read more at Bloomberg Currencies News

Korean Won Rises to Highest This Year and Bonds Gain Before Report on GDP

(Bloomberg) -- South Korea's won rose to the
strongest this year before a government report tomorrow that
economists say will show the nation grew at the fastest pace in
1 1/2 years last quarter. Government bonds gained.

The won has risen 1.6 percent in 2007 as the benchmark
Kospi index advanced to a record today and the central bank and
government raised their growth forecasts earlier this month. The
Bank of Korea may allow the won to appreciate faster as the 2.3
percent rally in Japan's currency against the U.S. dollar this
month eased concern local exporters will lose competitiveness.


Read more at Bloomberg Bonds News

Oil Prices to Keep Rising This Year on OPEC Supply Restrictions, CGES Says

(Bloomberg) -- Oil prices are likely to keep rising
for the rest of the year because of supply restrictions set by the
Organization of Petroleum Exporting Countries, the Centre for
Global Energy Studies said.

The price of crude won't decline as it did last year, when it
fell 27 percent from a record high in July through November, CGES
said in a monthly report today. OPEC, which last year agreed to
curtail output to keep prices around $60 a barrel, ought to raise
production, the report said.


Read more at Bloomberg Energy News

U.S. home builder woes reach into other industries

(Reuters) - Still, several investors remain positive about the long-
term outlook for U.S. home builders, although a rebound may be
years away.




"It won't really be until 2010 before we start seeing
normal levels of activity in most parts of the country," said
Mark Zandi, chief economist of Moody's Economy.com.


Read more at Reuters.com Bonds News

REFILE-Bombardier gets $590 million India train car order

(Reuters) - MONTREAL, July 19 - Bombardier Inc.
said on Thursday it won a $590 million order from Delhi Metro
Rail Corp. to supply 340 of its Movia metro cars.




The Canadian train and plane maker said deliveries are
scheduled for the last quarter of 2008 to 2010 to provide
public transport during the Commonwealth Games slated for New
Delhi in October 2010.


Read more at Reuters.com Mergers News

LG Electronics Reports Highest Profit in Three Years on Prada Phone Sales

(Bloomberg) -- LG Electronics Inc., Asia's second-
largest maker of mobile phones, reported its highest profit in
three years, driven by sales of its Shine and Prada handsets.

Second-quarter net income was 384.6 billion won ($420
million), compared with a loss of 9.7 billion won a year earlier,
Seoul-based LG said in a regulatory filing today. Sales rose 1.8
percent to 5.9 trillion won.


Read more at Bloomberg Emerging Markets News

Hyundai Heavy Unit to Purchase 1 Percent Posco Stake `to Improve Returns'

(Bloomberg) -- Hyundai Samho Heavy Industries Co.,
a private unit of the world's largest shipbuilder, will take a 1
percent stake in Posco, the South Korean steelmaker that is
shoring up its defenses against a possible takeover bid.

The company's board decided July 9 to buy 872,000 shares in
Asia's third-largest steelmaker to boost returns on capital, it
said in a regulatory filing July 16. At the close of trade that
day, the Posco stock was worth 484 billion won ($527 million).


Read more at Bloomberg Emerging Markets News

Asian Currencies Gain as Stock Rally Draws Investors to Emerging Markets

(Bloomberg) -- Asian currencies, including
Indonesia's rupiah and the South Korean won, gained on
speculation a regional stock rally will increase demand for
emerging-market assets.

Investors sold yen to fund higher-yielding currencies in
so-called carry trades, said Catherine Tan, head of emerging
markets at Forecast Singapore Ltd. A surge in U.S. stocks
yesterday eased concern a housing slump will stunt export-led
economic growth in Asia.


Read more at Bloomberg Currencies News

UAW chief says not in "concessionary mode"

(Reuters) - "It won't be an issue for us," Gettelfinger said, speaking on the sidelines of the National Association for the Advancement of Colored People event in Detroit. "We are not going in to these negotiations in a concessionary mode."




General Motors Corp , Ford Motor Co and Chrysler Group face a crucial round of contract talks with the UAW beginning this month.


Read more at Reuters.com Business News

Soybeans Extend Rally to Three-Year High as Rains Too Light to Boost Crop

(Bloomberg) -- Soybeans rose in Chicago, extending a
rally to a three-year high, on speculation that rains forecast
for the Midwest this week won't be enough to make up for dry
weather the past month.

Less than half an inch (1.3 centimeters) of rain will fall
in the eastern Midwest in the next five days, too little to
replenish soils, and none is expected west of the Mississippi
River, said Mike Tannura, a meteorologist for T-Storm Weather in
Champaign, Illinois. Some fields have received less than
25 percent of normal rain the past 30 days.


Read more at Bloomberg Commodities News

South Korean Won Falls After Kwon Says Government May Slow Currency Gains

(Bloomberg) -- South Korea's won fell on speculation
the central bank will sell it to support exports after the
currency closed yesterday at a seven-month high. Government
bonds dropped.

The currency snapped a four-day, 1.1 percent rally as
Finance Minister Kwon Okyu said today the government will take
measures to slow the won's gain when necessary. A rising won may
threaten growth by making Korean goods more expensive abroad,
reducing demand for the nation's exports.


Read more at Bloomberg Emerging Markets News

Bonds ease on higher stocks in thin trade

(Reuters) - Trade was thin however in an abbreviated session before the July 4 Independence Day holiday in the U.S., and the data was not expected to spur any significant changes in investor positions.




"The numbers won't have much impact on trading," due to the expected thin pre-holiday trade, Action Economics LLC said on Tuesday in a note to clients.


Read more at Reuters.com Bonds News

Asian Currencies: Korea's Won Rises to Highest Since December; Baht Gains

(Bloomberg) -- South Korea's won rose to its highest
close in almost seven months on speculation surging exports will
help accelerate economic growth.

The won had its biggest gain since May 21 as Moody's
Investors Service placed Korea's credit ratings on review for
possible upgrade, citing in part a favorable economic outlook.
Finance Minister Kwon Okyu yesterday said growth will quicken,
powered by overseas sales and domestic consumption.


Read more at Bloomberg Currencies News

China Eastern Wins Approval to Sell Stake to Singapore Airlines, Temasek

(Bloomberg) -- China Eastern Airlines Corp., the
nation's third-largest carrier, won preliminary approval to sell
a stake to Singapore Airlines Ltd., which is seeking better
access to the world's second-largest aviation market.

Singapore Airlines and parent Temasek Holdings Pte. plan to
buy about 25 percent of China Eastern, Li Fenghua, the Chinese
carrier's chairman, said at a shareholders' meeting in Shanghai
today. Final details of the plan are now under discussion after
the State Administration of State-Owned Assets Commission
approved the deal, he added.


Read more at Bloomberg Emerging Markets News

South Korea's Won Set for Quarterly Gain on Signs Economy Is Rebounding

(Bloomberg) -- South Korea's won headed for a
quarterly gain as growth in exports suggested the economy is
rebounding from a slowdown in the first three months of the year.

The nation's current account returned to surplus in May for
the first time in three months as shipments overseas increased,
the Bank of Korea said today. The won rose to the highest in
almost 10 years against the yen last week and touched the
strongest for 2007 in May versus the dollar, with consumer
confidence the highest in 14 months.


Read more at Bloomberg Currencies News