Iceland Will Probably Leave Benchmark Rate Unchanged at 13.3% Tomorrow

(Bloomberg) -- Iceland's central bank will probably
leave its benchmark interest rate unchanged at a record high
tomorrow as the inflation rate remains above the bank's target, a
survey of economists showed.

The bank will keep its repurchase rate at 13.3 percent, after
18 increases over the past three years, according to all seven
economists polled by Bloomberg. Sedlabanki will announce its
decision at 9 a.m. in Reykjavik.


Read more at Bloomberg Bonds News

Japan's Government Bonds Decline After Treasuries Slump on Signs of Growth

(Bloomberg) -- Japanese government bonds fell after
a report showed U.S. factory orders declined less than forecast,
easing concerns that export growth will slow.

Ten-year yields rose from near the lowest in a month after
benchmark Treasury yields climbed above 5 percent on speculation
U.S. manufacturing will help overcome the housing slump.
Confidence in Japan's economy was also bolstered after Moody's
Investors Service put the nation's debt rating on review for
upgrade, citing a ``sustained improvement'' in growth.


Read more at Bloomberg Bonds News

Blackstone to buy Hilton for $26 bln

(Reuters) - Under terms of the agreed deal, Blackstone will pay $47.50 for each share of Hilton, one of the most prominent global hotel brand names, and take on debt.




That's a 32 percent premium over Tuesday's closing price. Ahead of the post-close announcement, shares of Hilton had risen 6.4 percent to close at $36.05 on the New York Stock Exchange.


Read more at Reuters.com Business News

New Zealand Exporters Close Plants, Call for Rethink on Soaring Currency

(Bloomberg) -- New Zealand exporters say they're being
forced to close plants or relocate factories overseas because the
central bank is failing in its attempts to curb the soaring
currency.

The New Zealand dollar reached a 22-year high yesterday and
has gained 28 percent in the past 12 months, eroding earnings at
Fisher & Paykel Appliances Holdings Ltd., Cedenco Foods and other
exporters who make up 30 percent of the economy. The local dollar
surged even as the central bank sold the currency to drive it
lower, the first intervention since at least 1985.


Read more at Bloomberg Currencies News

Chery-built Chrysler cars aim to reach US in 30 mths

(Reuters) - The first auto built by Chery Automobile Co. for Chrysler could be exported to North America, but not the United States, said LaSorda, who made the forecast at a Beijing signing ceremony marking a strategic alliance between the two auto makers.




Chrysler -- which is being sold by DaimlerChrysler AG to Cerberus Capital Management -- and Chery will develop, manufacture and distribute Chery-made small and sub-compact cars in North America, Europe and other major automotive markets, they said.


Read more at Reuters.com Business News

JGBs down, hit by weak Treasuries, 10-year sale

(Reuters) - Traders said they were looking at the U.S. bond market for
direction as JGB prices were expected to move in narrow ranges
ahead of next week's policy meeting by the Bank of Japan, having
digested key data, the auction and speeches by BOJ officials.




"Sluggish demand for the new 10-year issue has weighed on
sentiment, at least in that sector, as the paper is seen as
expensive relative to other maturities," said Kenro Kawano, a
fixed income strategist at Credit Suisse.
The 10-year JGB sale on Tuesday drew lower-than-expected
demand from dealers despite a 1.9 percent coupon, which was the
highest since August, because dealers had wanted a re-opening of
the No. 286 1.8 percent issue to ease their shortage in the repo
market.


Read more at Reuters.com Bonds News

Taiwan's Bonds Drop for Sixth Day on Supply; Currency Slips for Third Day

(Bloomberg) -- Taiwan's 10-year government bonds
declined for a sixth day before an auction of NT$100 billion ($3
billion) today, double last month's debt sale. The currency
slipped for a third day.

Central Bank of the Republic of China (Taiwan) will
continue to issue certificates of deposits, via the open market
operations, to absorb excess reserves, it said in a statement
issued late July 2 on its Web site. The bank reiterated it urged
banks ``not to reject time deposits'' in a meeting with
executives of five major lenders.


Read more at Bloomberg Bonds News

NEWSMAKER-Buyout king Kravis follows rival with IPO

(Reuters) - The story of that brash deal was so compelling it was
immortalized in the bestselling book "Barbarians at the Gate".




But the barbarians of yesteryear are now known as private
equity investors, and they tend to take a more sophisticated
approach than busting down the doors of takeover targets.


Read more at Reuters.com Mergers News

Dollar Trades Near Record Low as ECB, BOE May Raise Rates Faster Than Fed

(Bloomberg) -- The dollar traded near a record low
against the euro and the weakest in 26 years versus the British
pound on speculation central banks in Europe will raise interest
rates faster than the Federal Reserve.

The dollar has declined against 14 of the 16 most-traded
currencies this year as a U.S. housing slump prompted traders to
bet the Fed will hold, or even lower, borrowing costs this year.
The Bank of England will probably raise rates tomorrow for a
third time this year and the European Central Bank may signal
plans to add to its two increases this year to tame inflation.


Read more at Bloomberg Currencies News

Japan's Nikkei 225 Stock Average, Topix Index Rise; Sony, Nissan Pace Gain

(Bloomberg) -- Japan's Nikkei 225 Stock Average
rose 18.86, or 0.1 percent, to 18,168.76 at 9:02 a.m. in Tokyo.
The broader Topix index added 2.58, or 0.1 percent, to
1784.44.

Sony Corp. and Nissan Motor Co. paced the advances.


Read more at Bloomberg Stocks News

FACTBOX-Some glimpses into private equity pioneer KKR

(Reuters) - * KKR called itself a "global alternative asset manager"
when it was founded in 1976, led by Henry Kravis and George
Roberts, two of the biggest names in leveraged buyouts.




* KKR now has 399 employees, including 139 investment
professionals, and offices in seven cities, including New York,
Menlo Park and Tokyo.


Read more at Reuters.com Government Filings News

Komatsu, in Quest to Dominate Caterpillar, Mines China for Sales, Profit

(Bloomberg) -- Komatsu Ltd. couldn't dislodge its
bigger rival, Caterpillar Inc., in the U.S. The Tokyo-based
mining- and construction-equipment maker is faring better in
China.

Komatsu had $1.018 billion in sales from China last fiscal
year, more than Caterpillar's $1 billion, and said it became the
biggest producer there with a 22 percent market share. New Chief
Executive Officer Kunio Noji pledged earlier this year to take on
Peoria, Illinois-based Caterpillar throughout Asia.


Read more at Bloomberg Exclusive News

Bolivar Falls to a Week low as Venezuela Opts Against Selling Dollar Bonds

(Bloomberg) -- Venezuela's currency fell to a one-
week low in unregulated markets after the government refrained
from selling dollar-denominated bonds to local banks last week.

The bolivar dropped 2.4 percent in the parallel market to
4,150 bolivars per U.S. dollar, traders said. The bolivar has
fallen 18 percent this year in the unregulated market.


Read more at Bloomberg Currencies News

UPDATE 2-United Capital latest hedge fund to suffer losses

(Reuters) - NEW YORK, July 3 - Providing liquidity while
making risky subprime mortgage bets proved to be a bad hand for
United Capital Asset Management and other hedge funds recently
gambling on risky investments.




Earlier this year, during an American Securitization Forum
industry conference in Las Vegas, John Devaney, founder and
chief executive of United Capital Markets, was among the most
passionate of panelists who highlighted their key roles as
willing traders of a market whose losses were mounting.


Read more at Reuters.com Bonds News

New Jersey says 141 sex offenders used MySpace

(Reuters) - New Jersey is among several states leading the way in working with MySpace to curb online sexual predators.




Of the 141 sex offenders identified as having been active on MySpace, 80 were found to be on parole or probation, and officials are working to determine if those individuals violated the terms of their sentences, said David Wald, a spokesman for New Jersey Attorney General Anne Milgram.


Read more at Reuters.com Bonds News

Bonds fall in short pre-holiday session

(Reuters) - Bonds briefly trimmed their losses after a report showed pending sales of existing U.S. homes in May unexpectedly fell to their lowest level in more than 5-1/2 years.




The rise was short-lived, however, as May factory orders posted a much smaller fall than predicted and April's rise was revised higher. Sellers stepped in after the market's second attempt this week to push benchmark yields decisively below 5 percent failed.


Read more at Reuters.com Hot Stocks News

CBOE says won't pull plug on CBOT rights for now

(Reuters) - But those rights will stay intact for now, until the U.S.
Securities and Exchange Commission makes a final ruling on
CBOE's earlier filing on the topic, an exchange spokeswoman
said.




In that filing, CBOE set forth its interpretation that if
CME absorbs CBOT to create CME Group Inc., "there will no
longer be CBOT members who may qualify to become and remain
exerciser members of CBOE."


Read more at Reuters.com Bonds News

UPDATE 2-Private equity bosses favour simpler UK tax system

(Reuters) - LONDON, July 3 - Four top private equity bosses on
Tuesday embraced a simpler UK tax regime amid broad criticism of
the industry that has focussed on their personal tax rates,
which can fall under 10 percent.




One of them even said during questioning by legislators that
raising the tax rate on private equity executives would probably
not have a harmful effect.


Read more at Reuters.com Bonds News

Guns N' Roses rocker tries new tune as businessman

(Reuters) - But the 43-year-old musician doubles as a savvy investor, overseeing a diverse portfolio ranging from property and stocks to vintage guitars.




While he draws the line at donning a suit and tie, McKagan also runs the business affairs for his new band, Velvet Revolver, which just released its second album, "Libertad."


Read more at Reuters.com Business News

Cocoa Futures Rise on Ivory Coast Tensions, Smaller Indonesian Supplies

(Bloomberg) -- Cocoa rose in New York on speculation
that renewed political tensions in Ivory Coast, the world's
largest producer, and dry weather in Indonesia may disrupt
global supplies.

Ivory Coast Prime Minister Guillaume Soro was unhurt when
his plane was attacked with rockets and small-arms fire after
landing at an airport in the central town of Bouake last week.
Indonesia, the third-largest grower, may produce 8.5 percent less
cocoa this year after drought in 2006 reduced the crop, the
Indonesian Cocoa Association said on June 29.


Read more at Bloomberg Commodities News

Hidary says Everlast violated merger pact

(Reuters) - In a letter filed with the U.S. Securities and Exchange Commission, Hidary said Everlast was "not entitled to terminate the merger agreement ... because the company had not received a superior proposal."




On June 28, Everlast terminated its merger pact with Hidary in favor of a deal with Brand Holdings. Both suitors raised their bids the next day, but Everlast stayed with its new partner, Brand Holdings.


Read more at Reuters.com Bonds News

Corn Falls to Eight-Month Low, Soybeans Drop as Midwest Rains Aid Crops

(Bloomberg) -- Corn fell to the lowest in eight
months in Chicago and soybeans dropped from a three-year high as
rain improved conditions for the two biggest U.S. crops.

Some fields from Iowa to Ohio may receive as much as 1 inch
(2.5 centimeters) of rain in the next 72 hours, boosting soil
moisture and cooling temperatures, said John Dee, president of
Global Weather Monitoring in Mohawk, Michigan. A second storm
front may move into the Midwest beginning July 9, bringing
heavier and more widespread rains, Dee said.


Read more at Bloomberg Commodities News

Kroger says Toledo labor contract OK'd by union

(Reuters) - NEW YORK, July 3 - Kroger Co. , the largest U.S. grocery chain, on Tuesday said a new labor agreement was ratified by a workers' union in Toledo, Ohio.



The three-year contract covers more than 3,100 Kroger employees at 27 stores in the Toledo metropolitan area, the company said.


Read more at Reuters.com Government Filings News

VW brand car sales up 15 pct in June in U.S.

(Reuters) - "This increase can be attributed to strong market acceptance of the entry level Rabbit model, and a 44.9 percent surge in deliveries of the sporty GTI," it said in a statement.



"The retractable hardtop convertible Eos posted its second best month ever, as summer is now in full swing," the company said.


Read more at Reuters.com Market News

TREASURIES-Bond prices ease on higher stock market

(Reuters) - NEW YORK - Treasury debt prices eased on Tuesday after stronger-than-expected manufacturing data did little to change investor expectations for the economy or inflation.




Treasuries briefly trimmed their losses after weaker-than-forecast pending home sales data, but the move was fleeting, outweighed in part by gains in the stock market. Bond trading was razor-thin a day before the U.S. July 4 Independence Day holiday


Read more at Reuters.com Bonds News

Housing sector, factory orders sag in May

(Reuters) - The National Association of Realtors said its Pending Home Sales Index, based on contracts signed in May, fell 3.5 percent to 97.7 from a downwardly revised level of 101.2 in April. The May index is the lowest since 89.8 in September 2001.




Wall Street analysts polled ahead of the report were expecting the May index to rise 0.2 percent.


Read more at Reuters.com Economic News

Continental, Movie Gallery, Wendy's, Western Alliance: U.S. Equity Movers

(Bloomberg) -- The following is a list of companies
whose shares are having unusual price changes on U.S. exchanges.
Stock symbols are in parentheses after company names. Share
prices are as of 10:10 a.m. in New York.

Anaren Inc. (ANEN US) fell $1.11, or 6 percent, to $17.50.
The maker of microwave communications gear said in a statement
that it may restate financial results for the second and third
quarters of 2007 because of accounting errors at its Chinese
subsidiary.


Read more at Bloomberg Stocks News

May pending home sales slip 3.5 percent: NAR

(Reuters) - The National Association of Realtors said its Pending Home Sales Index, based on contracts signed in May, fell 3.5 percent to 97.7 from a downwardly revised level of 101.2 in April. The May index is the lowest since 89.8 in September 2001.




Wall Street analysts polled ahead of the report were expecting the May index to rise 0.2 percent.


Read more at Reuters.com Business News

RBS group says doesn't know many of key ABN facts

(Reuters) - A U.S. regulatory filing by Spain's Santander for the first time showed details of the shareholder agreement it has with RBS and Belgian-Dutch Fortis to buy ABN, which was signed on May 28.



The agreement said the trio acknowledge "they do not know many of the key facts relating to the ABN AMRO Group, including the precise identity and ownership of the acquired businesses."


Read more at Reuters.com Government Filings News

RPT-Buyout head likens subprime woes to private equity

(Reuters) - LONDON, July 3 - Debt financing for leveraged
buyouts could be on the verge of drying up, a senior UK private
equity executive warned on Tuesday, drawing parallels to the
collapse of the U.S. subprime mortgage market.




"It could be very close. It could be a year or two forward.
It's very hard to call," said Jon Moulton, the managing partner
of buyout firm Alchemy, in remarks to a Treasury committee
investigating the private equity industry. "It is near future."


Read more at Reuters.com Bonds News

UPDATE 1-Embattled private equity bosses want simpler taxes

(Reuters) - LONDON, July 3 - Private equity bosses, under fire
from unions and politicians, called for a simpler UK tax regime
and warned British legislators on Tuesday that the current
system was too complex and could stifle business.




Partners from four top buyout firms answered questions from
a Treasury Committee for more than an hour, amid increased
scrutiny of the sector after a takeover spree that has included
household names such as drugstore chain Boots.


Read more at Reuters.com Mergers News

Walgreen June same-store sales rise 5.1 percent

(Reuters) - CHICAGO, July 3 - Walgreen Co. , one of the largest U.S. drugstore chains, on Tuesday posted a 5.1 percent rise in June sales at stores open at least a year as sales of general merchandise grew at a faster clip than sales of prescription drugs.



Pharmacy sales were pressured by the introduction of cheaper generic drugs and a calendar shift, Walgreen said.


Read more at Reuters.com Market News

Anaren, Avanir, Caterpillar, Ford, Parametric, Pool: U.S. Equity Preview

(Bloomberg) -- The following is a list of companies
whose shares may have unusual price changes in U.S. exchanges
today. This preview includes news that broke after exchanges
closed yesterday. Stock symbols are in parentheses after company
names. Share prices are as of 8:10 a.m. in New York.

American Capital Strategies Ltd. (ACAS US) rose $1.80, or
4.2 percent, to $44.80 in trading before U.S. exchanges opened.
The specialty finance company will replace Dollar General Corp.
(DG US) in the Standard & Poor's 500 Index, S&P said in a
statement.


Read more at Bloomberg Stocks News

China's Corn Production May Reach Record 150 Million Metric Tons This Year

(Bloomberg) -- China's corn harvest, the world's
second-largest after the U.S., may reach a record 150 million
metric tons this year if drought in some regions eases, helping
to meet demand and curb inflation.

``If weather becomes normal in July, we will get a bigger
crop,'' Wang Xiaohui, head of the grain division at the China
National Grain and Oils Information Center, said at a conference
in Beijing today. Production could beat the center's forecast
yesterday of 149 million tons, up 2.4 percent from last year, and
could even top 150 million tons, he said.


Read more at Bloomberg Commodities News

Mondi Expands and Modernizes Its Russian, Polish Plants for $1.19 Billion

(Bloomberg) -- Mondi Plc, the South African paper
and packaging company spun off by Anglo American Plc, will spend
875 million euros ($1.19 billion) on expanding and modernizing
plants in Russia and Poland over the next two years.

Boosting output and the efficiency of a Russian mill will
require 525 million euros, with the remainder to be spent on
adding a paper machine in Poland, Chief Executive Officer David
Hathorn said in a presentation at the Johannesburg stock market,
where Mondi shares officially began trading today.


Read more at Bloomberg Emerging Markets News

Thailand's SET Index Advances to a 10-Year High: World's Biggest Mover

(Bloomberg) -- Thailand's key stock index closed
above 800 points for the first time in a decade amid expectations
elections will be held this year to restore democracy.

``The next two or three months you'll see the market become
more stable because elections are under way and people have more
confidence in their local market,'' said Visit Tantisunthorn,
secretary general of Thailand's Government Pension Fund, which
manages about 320 billion baht ($9.3 billion) in assets.


Read more at Bloomberg Stocks News

Danone in talks to sell biscuits division to Kraft

(Reuters) - Kraft's widely rumored bid for Danone's cookie unit, which includes the LU, Prince and Tuc brands, will give the U.S. food giant a stronger foothold in Europe and in emerging markets and allows Danone to boost further the healthy range of its fast-growing fresh dairy and drinks business.




The offer is higher than the 3.5 billion to 4 billion euros given in several media reports and is more than double the 2.2 billion euros in sales the division made last year.


Read more at Reuters.com Business News

S.Africa vehicle sales down 12.1 pct yr/yr in June

(Reuters) - South African new vehicle sales declined by 12.1 percent to 50,056 units in June compared to the same month last year, the National Association of Automobile Manufacturers (NAAMSA) said on Tuesday.

A number of recent negative economic developments have clouded the short term outlook for the new vehicle market, including higher interest rates and increasing car prices.


Read more at Reuters Africa

UK stocks rebound on miners, but lag Europe

(Reuters) - Britain's leading index rose on Tuesday, buoyed by miners and strong U.S. gains overnight, but lagged its European counterparts as sterling rose above $2 to levels not seen for a quarter of a century.

The FTSE 100 was up 0.6 percent at 0826 GMT but slightly lower than other European markets as investors anticipated the Bank of England would raise rates to 5.75 percent from 5.5 percent on Thursday.


Read more at Reuters Africa

Lithuania Seeks Freedom From Russia's `Friendship' in New Sources of Oil

(Bloomberg) -- Among the pine forests of north-
eastern Lithuania, a dried-up oil pipeline called Druzhba --
Russian for friendship -- has become a symbol for the
increasingly hollow relations between the Baltic states and
Russia.

A year ago, a reported leak on Russian territory blocked
the flow of oil into AB Mazeikiu Nafta, the only refinery in the
three former Soviet republics. While deliveries have stopped
before at politically tense moments, this time the refinery
didn't wait for the leak to be fixed. It now pays more to buy
oil off tankers from Russia -- and from as far away as
Venezuela.


Read more at Bloomberg Exclusive News

Getronics says U.S. firm shows interest, shares spike

(Reuters) - "The board of management and the supervisory board have decided to explore this option and its strategic implications for the company going forward," Getronics said in a statement.




It did not disclose the name of the U.S. company.


Read more at Reuters.com Mergers News

Parmalat must defend US class action suit

(Reuters) - A Manhattan federal judge has rejected Parmalat SpA's request to dismiss an investor class-action lawsuit stemming from the Italian dairy company's December 2003 collapse in an accounting scandal.

The ruling is a defeat for Chief Executive Enrico Bondi, who is trying to distance the reorganized Parmalat from prior management, and is seeking billions of dollars of damages from the company's former bankers.


Read more at Reuters Africa