Corporate Bond Risk Soars in Europe, Credit-Default Swap Prices Show

(Bloomberg) -- The risk of owning European
corporate bonds soared today, according to traders of credit-
default swaps.

Contracts based on 10 million euros ($13 million) of debt
included in the iTraxx Crossover Series 7 Index of 50 European
companies jumped 19,000 euros to 290,000 euros at 7:10 a.m. in
London, according to Deutsche Bank AG.


Read more at Bloomberg Bonds News

Dollar tumbles to record low vs euro on subprime fears

(Reuters) - The dollar steadied after tumbling to a record low against the euro and stuck near a 26-year trough against sterling on Wednesday as investors feared that growing U.S. subprime mortgage woes could spread to the wider economy.

The dollar's broad decline accelerated early in the Asian session, especially against the low-yielding yen, as investors cut back on their exposure to higher-yielding but riskier assets.


Read more at Reuters Africa

Saudi Basic Industries, Saudi Electric, Qatar Islamic: Islamic Bond Alert

(Bloomberg) -- The following is a list of pending
Islamic bond sales. The securities comply with the religion's ban
on paying interest and on investing in companies that have
businesses in alcohol, tobacco or gaming.

SAUDI BASIC INDUSTRIES CORP., the world's biggest chemical
maker by market value, won approval from Saudi Arabia's Capital
Markets Authority to sell as much as 5 billion riyals ($1.3
billion) of Islamic bonds. Saudi Basic will sell 20-year bonds in
six Gulf Arab states, including Kuwait and the United Arab
Emirates, said Alan Lowe, head of corporate finance at Riyad Bank,
which is arranging the sale with HSBC Holdings Plc.


Read more at Bloomberg Bonds News

CORRECTION: Asia stocks tumble, dollar at lows on s

(Reuters) - SINGAPORE - Asian stocks tumbled on Wednesday and the dollar plumbed a record low against the euro as investors fretted that growing problems in the U.S. subprime mortgage sector will spread to the wider economy.




Global markets were rattled on Tuesday after two leading rating agencies started to slash ratings for more than $17.3 billion of U.S. mortgage-related debt, raising concerns that the sector's woes are worse than previously thought.


Read more at Reuters.com Business News

Oil Trades Near 11-Month High After Gaining on Higher U.S. Gasoline Price

(Bloomberg) -- Crude oil was little changed near an
11-month high in New York, after rising yesterday as gasoline
prices climbed on speculation U.S. output of the fuel may slow
because of unplanned refinery shutdowns.

BP Plc closed the largest of three crude units at its
refinery in Whiting, Indiana, a person familiar with the plant
said July 9. The refinery, the biggest in the Midwest, supplies
consumers in the Chicago area. Refineries in Texas and Kansas
shut units last week. Refinery operating rates rose to 90 percent
of capacity in the week ended June 29 to meet demand.


Read more at Bloomberg Commodities News

Infosys Q1 net up 35 pct, beats forecast

(Reuters) - The firming rupee , which rose 6.8 percent against
the dollar in the June quarter to 40.72, poses a big problem
for software services exporters that get more than 60 percent
of their revenue from the United States.




Infosys shares had fallen 4 percent in April-June,
underperforming a 0.6 percent drop in the sector index
and a 12 percent rise in the main index on concerns
about margin pressure.



Read more at Reuters.com Market News

Philippines May Hold Key Interest Rate Until Money-Supply Growth Slows

(Bloomberg) -- The Philippine central bank will
probably keep its key interest rate unchanged along with lower
payments for larger overnight deposits as it waits for money-
supply growth to slow below 20 percent.

Bangko Sentral ng Pilipinas will keep its reverse
repurchase rate at 7.5 percent, according to all 15 economists
surveyed by Bloomberg News. Eleven of the economists expect the
central bank to maintain lower payments for amounts exceeding 5
billion pesos ($109 million), while the others didn't comment.
The decision is expected in Manila tomorrow.


Read more at Bloomberg Emerging Markets News

U.S. Treasury Notes Rise as Moody's Ratings Cuts Feed Demand for Safety

(Bloomberg) -- U.S. 10-year Treasury notes rose
after Moody's Investors Service cut the ratings on $5.2 billion
of bonds backed by subprime mortgages, feeding demand for the
relative safety of government debt.

The yield on the benchmark 10-year note fell 2 basis points
to 5.01 percent as of 10:20 a.m. in Singapore, according to bond
broker Cantor Fitzgerald LP. The price of the 4 1/2 percent
security due in May 2017 rose 1/8, or $1.25 per $1,000 face
amount, to 96 2/32.


Read more at Bloomberg Bonds News

Asian Stocks Fall on Lower Metals, U.S. Earnings Concern; Toyota Declines

(Bloomberg) -- Asian stocks fell for the first time
in three days after metals prices dropped and earnings reports in
the U.S. suggested demand is cooling in the region's biggest
export market.

Toyota Motor Corp., the world's largest automaker by market
value, and James Hardie Industries NV, the No. 1 supplier of home
siding in the U.S., led declines on concern a housing slump is
harming growth in the world's biggest economy. BHP Billiton Ltd.,
the largest mining company, was set for its biggest slide in
almost two months.


Read more at Bloomberg Stocks News

Japan's Bonds Head for Biggest Advance in Six Months on Subprime Concerns

(Bloomberg) -- Japan's 10-year bonds headed for the
biggest gain in six months after credit-rating downgrades of U.S.
subprime mortgages sparked demand for government debt.

The yield on the benchmark 1.8 percent bond due in June
2017 slid 5 basis points to 1.91 percent in Tokyo as of 9:30 a.m.
at Japan Bond Trading Co., the nation's largest interdealer debt
broker. The decline in yields, which move inversely to prices,
was the steepest since January 19.


Read more at Bloomberg Bonds News

UPDATE 2-Compuware says qtr only break even, shares slide

(Reuters) - LOS ANGELES, July 10 - Compuware Corp.'s
chief said on Tuesday he was "extremely disappointed" by its
break-even results in the latest quarter and that it would cut
costs further, sending the company's shares down 18 percent.




The business software developer said it expects to report a
break-even first quarter on sales of about $278 million. Wall
Street analysts, on average, had forecast a net profit of 12
cents on revenue of $301.6 million, according to Reuters
Estimates.


Read more at Reuters.com Market News

CORRECTED - Moody's weighs ratings as drug-patent lapses near

(Reuters) - NEW YORK, July 10 - Moody's Investors Service on
Tuesday said a wave of patent expirations on blockbuster drugs
between 2010 and 2012 could lead it to begin lowering its
credit ratings on a number of large U.S. drugmakers several
years before then.




Eli Lilly and Co. , Pfizer Inc. and
Bristol-Myers Squibb Co. are particularly vulnerable to
the downgrades because the top-selling drug of each expires in
that period.


Read more at Reuters.com Government Filings News

Asian Stocks Fall in U.S. Trading as Infosys Shares Drop; LG.Philips Rises

(Bloomberg) -- Asian stocks trading in the U.S.
slipped, led by Infosys Technologies Ltd., on expectation the
Indian software company will report the slowest profit growth in
more than a year.

The Bank of New York Co.'s Asia ADR Index, tracking the
region's American depositary receipts, fell 1.1 percent to 171.16,
the biggest drop since June 22.


Read more at Bloomberg Stocks News

Bear Stearns says SEC ends probe into muni sales

(Reuters) - Bear said it received a letter on June 4 that the SEC had
completed its investigation. It disclosed the letter in its
quarterly report filed with the agency on Tuesday.




The news was a positive during a difficult time for Bear,
which manages two hedge funds that have faced huge redemption
requests after suffering big declines earlier this year. Bear
bailed one out and said it would let the other one fail.


Read more at Reuters.com Government Filings News

Colombian says may up '08 external financing plan

(Reuters) - "Clearly, if we do not sell ISA and Isagen we will have to
think about increasing the amount of external indebtedness in
order to replace that loss in expected revenue," Julio Torres,
Colombia's director of public credit, told Reuters.




The Andean country plans $1 billion in external financing
next year. Should the ISA and Isagen deals be canceled, the
increase in indebtedness would not exceed $2 billion, meaning
that total new external debt next year would not be over $3
billion, Torres said.


Read more at Reuters.com Bonds News

S&P changes Sears' outlook to negative from stable

(Reuters) - "Although the company has made a strong effort to
implement programs to enhance merchandising, marketing,
in-stock positions, and labor productivity, this apparently has
not resonated with its customers," S&P said in a statement.




In the past, strong liquidity has been a key factor
supporting Sears' rating, S&P added. "We now anticipate that
the expanded share repurchase activity could diminish this
liquidity," the rating agency said.


Read more at Reuters.com Bonds News

StoneMor Partners files for $115 mln shelf offering

(Reuters) - Under a shelf registration, a company may sell securities
in one or more separate offerings with the size, price and
terms to be determined at the time of sale.




Read more at Reuters.com Government Filings News

UPDATE 1-China's E-House files for $150 mln U.S. IPO

(Reuters) - Credit Suisse and Merrill Lynch & Co. are underwriting the
IPO, according to a preliminary filing with the U.S. Securities
and Exchange Commission.




The company intends to list its ADSs on the New York Stock
Exchange under the symbol "EJ" .


Read more at Reuters.com Government Filings News

Pilot frustration mounts over US Airways merger

(Reuters) - The amalgamation of about 1,800 former America West pilots
and about 2,700 former US Airways pilots has barely progressed
in the nearly two years since those two airlines merged to form
the current company. And experts say the process is stalled on
two fronts.




It is unclear whether this is of any consequence to the
airline. But for the pilots, frustration is mounting as they
view their careers in limbo.


Read more at Reuters.com Mergers News

Atlantic City gamblers lose $419.8 million in June

(Reuters) - The closing of the Sands last November is partly responsible for the lower revenue, but the Atlantic City's 12 casinos are also challenged by new competition from gaming venues in nearby Pennsylvania and a partial smoking ban.




Excluding the Sands figures, Atlantic City casino revenue increased 1.5 percent in June, the regulator said.


Read more at Reuters.com Bonds News

US STOCKS-Indexes fall as housing woes hit profits

(Reuters) - NEW YORK, July 10 - U.S. stocks fell on Tuesday
as the housing slump took a toll on companies' earnings
outlooks, while trouble in the subprime mortgage market sparked
selling of financial companies' shares.




The major indexes stayed weak after Federal Reserve
Chairman Ben Bernanke stressed the importance of keeping
inflation expectations under control.


Read more at Reuters.com Bonds News

U.S. Raises Oil Price Forecasts Because of Increased Demand, OPEC Cuts

(Bloomberg) -- The U.S. government increased its
estimated price for crude oil this year and in 2008 because of
rising fuel consumption and production cuts by the Organization
of Petroleum Exporting Countries.

West Texas Intermediate crude oil, the U.S. benchmark, will
average $65.56 a barrel this year, the Energy Department said in
its monthly Short-Term Energy Outlook. The forecast is up 2.3
percent from $64.06 estimated last month. Oil will average
$66.92 in 2008, up 3.2 percent from $64.83 in last month's
forecast.


Read more at Bloomberg Energy News

Alpharma's vancomycin to be made in Chinese firm's premises

(Reuters) - In a filing on Tuesday with the U.S. Securities and
Exchange Commission, Alpharma said it was seeking the necessary
regulatory approvals to sell the vancomycin produced at the new
site.





Read more at Reuters.com Government Filings News

Mexico's Bolsa Falls, Led by Walmex, as Earnings Slow; Usiminas, CSN Slip

(Bloomberg) -- Mexico's Bolsa index fell for a second
day after Wal-Mart de Mexico SA, the biggest retailer in Latin
America, reported lower-than-expected earnings.

The Bolsa index slid 212.10, or 0.7 percent, to 31,876.15 as
of 12:20 p.m. New York time. Brazil's main stock index fell for the
first time in three days.


Read more at Bloomberg Stocks News

CDOs could be Wall Street's next bogeyman

(Reuters) - Collateralized debt obligations, or CDOs, are complex bonds that repackage pieces of other loans, including "subprime" mortgages granted to borrowers with weak credit. Analysts say these investments could hurt profits at Merrill Lynch & Co. Inc. and other Wall Street companies.




CDO-related activity could shave about $132 million, or 1.6 percent, off Merrill's 2007 expected net income of $7.85 billion, Bernstein Research analyst Brad Hintz estimated.


Read more at Reuters.com Hot Stocks News

Acuity, Comverse, Graphic Packaging, Noven, Pantry: U.S. Equity Movers

(Bloomberg) -- The following is a list of companies
whose shares are having unusual price changes in U.S. exchanges
today. Stock symbols are in parentheses after company names.
Share prices are as of 11:40 a.m. New York time.

Acuity Brands Inc. (AYI US) fell $2.59, or 4.1 percent, to
$60.95. The maker of lighting fixtures under the Gotham, Peerless
and Hydrel brands said it expects ``continued cost pressures''
and declining demand in the residential housing market. The
company also reported third-quarter earnings a share of 88 cents,
matching analysts' estimates.


Read more at Bloomberg Stocks News

FCC chief backs some open access in U.S. wireless auction

(Reuters) - Martin is expected to circulate his proposal among the
agency's other four commissioners sometime this week, the source
said.







Read more at Reuters.com Government Filings News

Emission Permits May Fall as Utilities, Factories Curb Pollution, ICF Says

(Bloomberg) -- European Union carbon dioxide permits
may fall to as low as 8 euros ($10.92) a metric ton through 2012,
because utilities and factories can curb emissions and there are
enough United Nations credits, ICF International Inc. forecast.

Average prices in the five years starting next year may range
from 8 euros a metric ton to 20 euros, Alexandre Marty, managing
consultant at ICF in London, said today by telephone. The price
today is about 21.15 euros a ton on the European Climate Exchange
in Amsterdam.


Read more at Bloomberg Energy News

Polish Benchmark Leads Slide in Central Europe: World's Biggest Mover

(Bloomberg) -- Polish shares led declines among
central European indexes on concerns the country may face early
elections following the dismissal of Deputy Prime Minister
Andrzej Lepper yesterday.

KGHM Polska Miedz SA, the company that mines more copper in
Europe than any competitor, and Bank Pekao SA led the drop. Pegas
Nonwovens SA also slipped.


Read more at Bloomberg Stocks News

UPDATE 1-PKN postpones bond issue on volatile market -lead

(Reuters) - "It has been postponed due to the current market
volatility," an official at one of the banks managing the sale
said. However, the company plans to continue monitoring the
market and plans to issue the bond once conditions improve, the
official added.




PKN early on Tuesday set price guidance of around 100 basis
points over mid-swaps on the bond.


Read more at Reuters.com Bonds News

Chile's Peso Falls Most in a Week on U.S. Housing Weakness, Export Outlook

(Bloomberg) -- Chile's peso declined the most in a
week on speculation U.S. housing market weakness will slow Latin
American growth.

The peso fell from a seven-week high after Standard &
Poor's said it may cut the credit rating on $12 billion of bonds
backed by U.S. subprime mortgages. Currencies and stocks in
Brazil and Mexico also fell.


Read more at Bloomberg Currencies News

Comverse Technology up for sale -report

(Reuters) - Comverse has shed 30 percent of its value following the disclosure of an options-backdating scandal last year, with the shares now trading at $20, reflecting a market value of $4.15 billion, compared with $29 a share in early 2006.



Comverse Technology's subsidiaries include Comverse, Verint Systems and Ulticom .


Read more at Reuters.com Mergers News

Nymex Gas Rises as Warmer Weather Increases Demand From U.S. Power Plants

(Bloomberg) -- Natural gas futures in New York rose
as hot weather persisted in much of the U.S. Northwest and
Northeast, driving up demand for electricity to power air
conditioners.

Demand in the Northwest will be more than double normal
levels for this time of year as temperatures soar, David Salmon
of Belton, Missouri-based Weather Derivatives Inc. said in a
report.


Read more at Bloomberg Energy News

Aracruz Celulose, Gol, Net, Vale do Rio Doce, Vivo: Brazil Equity Movers

(Bloomberg) -- Brazil's main stock index fell for the
first time in three days, led by mining company Cia. Vale do Rio
Doce.

The Bovespa Index of the most-traded stocks on the Sao Paulo
exchange fell 353.48, or 0.6 percent, to 56,090.25 as of 9:31 a.m.
New York time.


Read more at Bloomberg Stocks News

Canada Dollar Falls From Near 30-Year High After Central Bank Lifts Rates

(Bloomberg) -- The Canadian dollar was little
changed near a 30-year high after the central bank raised its
benchmark lending rate and said higher rates and a stronger
currency may ``moderate'' economic growth. Bonds rallied.

The currency has surged 11 percent this year against the
U.S. dollar amid a strengthening economy and higher prices for
Canada's commodity exports.


Read more at Bloomberg Currencies News

Chile's LAN June passenger traffic up 29.7 pct

(Reuters) - International passenger traffic accounted for 88 percent of
total passenger traffic and rose 29.0 percent as its load
factor increased 3.1 percentage points to 73.3 percent.




Read more at Reuters.com Market News

UPDATE 1-Danone credit rating eyed on Numico deal

(Reuters) - By Natalie Harrison



LONDON, July 10 - French food group Danone's acquistion of Dutch rival Numico has raised the risk its credit rating could be cut, with Moody's Investors Service the first agency to say a multi-notch downgrade may be on the cards.


Read more at Reuters.com Mergers News

Sears sees quarterly profit decline; shares down

(Reuters) - Sears said sales at Kmart stores open at least one year fell 3.9 percent in the first nine weeks of its 13-week second quarter, with declines across most categories at the discount chain.




Same-store sales fell 4 percent at U.S. Sears stores, with declines across most categories, although demand for women's apparel and footwear improved.


Read more at Reuters.com Market News

TREASURIES-Bonds up on weak stocks, ahead of Bernanke

(Reuters) - The benchmark 10-year note's price rose 2/32 for a yield of
5.13 percent , compared with 5.14 percent late on
Monday. Bond yields and prices move inversely.




U.S. home improvement retailer Home Depot lowered its 2007
earnings outlook because of the softer housing market and
futures pointed to a lower opening for U.S. stocks.


Read more at Reuters.com Bonds News

Helen of Troy first-quarter earnings rise

(Reuters) - Analysts on average expected earnings of 30 cents a share,
excluding exceptional items, on revenue of $142.1 million,
according to Reuters Estimates.





Read more at Reuters.com Market News

D.R. Horton says quarterly orders fall

(Reuters) - "Market conditions for new home sales declined in our June
quarter as inventory levels of both new and existing homes
remained high, and we expect the housing environment to remain
challenging," said Chairman Donald Horton, in a statement.




Read more at Reuters.com Economic News

Air Liquide sets guidance on 10-year euro bond -lead

(Reuters) - BNP Paribas, Calyon and Citigroup are managing the sale.




Shares in Air Liquide rose sharply on Tuesday on market talk
of bid interest from private equity group KKR [KKR.UL], traders
said.


Read more at Reuters.com Bonds News

Czech Government Must Lower Spending as Economy Prospers, EU Report Shows

(Bloomberg) -- The Czech government is failing to take
advantage of record economic growth to cut spending, overhaul the
pension and health-care systems and narrow the budget deficit, a
draft European Union document shows.

EU finance ministers meeting today in Brussels will warn the
government risks missing a 2008 deadline to cut the budget deficit
in line with EU norms, according to the document seen by Bloomberg.
The cabinet has pledged to cut the gap to 3.5 percent of gross
domestic product next year and 3.2 percent in 2009 from a projected
4 percent this year.


Read more at Bloomberg Emerging Markets News

Gazprom denies ENI buyout plans

(Reuters) - S&P Marketwatch quoted unsubstantiated rumours from various
financial sources that a buyout was possible.




Read more at Reuters.com Mergers News

German Electricity Prices Rise a Second Day on Nuclear Reactor Stoppages

(Bloomberg) -- German power prices for delivery in
August rose for a second day after production at Vattenfall
Europe AG's plants was halted.

Next-month baseload power prices in Germany, Europe's
biggest electricity market, climbed 0.7 percent to 37.50 euros
($51.10) a megawatt-hour by 9:15 a.m. in Berlin, according to
broker GFI Group Inc. Baseload refers to power delivered round
the clock.


Read more at Bloomberg Energy News

UPDATE 1-D.Post up 1 pct on talk of private equity interest

(Reuters) - "A rumour is going around that a financial investor is
interested in Deutsche Post," a trader said.




Dealers mentioned Blackstone Group and KKR & Co. as
potential bidders.


Read more at Reuters.com Mergers News

European Stocks Pare Gains After Home Depot Reduces Profit Forecast

(Bloomberg) -- European stocks erased earlier gains
after Home Depot Inc., the world's largest home-improvement
retailer, cut its profit forecast, citing the sale of a unit and
a weaker U.S. housing market.

Europe's Dow Jones Stoxx 600 Index slid 0.2 percent to
397.61 as of 9:39 a.m. in London. The Stoxx 50 fell 0.2 percent
and the Euro Stoxx 50, a measure for the euro region, dropped 0.3
percent.


Read more at Bloomberg Stocks News

FTSE edges up on oils, M&S but miners weigh

(Reuters) - Britain's top share index rose 0.2 percent early on Tuesday, edging closer to a near seven-year high, as gains in oil companies and Marks & Spencer outweighed losses in miners.

At 0739 GMT, the FTSE 100 was up 14.6 points at 6,727.3. European shares also firmed.


Read more at Reuters Africa

Russia X5 like-for-like sales up 18 pct in Q2

(Reuters) - X5, controlled by billionaire Mikhail Fridman's private
equity vehicle Alfa Group, was formed out of a merger last year
between discounter Pyaterochka and supermarkets group
Perekryostok.




X5 added 20,000 square metres of store space in the quarter,
of which 15,600 was added to the Pyaterochka chain and 4,400 to
Perekryostok.


Read more at Reuters.com Market News

LG.Philips Posts First Profit in Five Quarters on Higher Flat-Panel Prices

(Bloomberg) -- LG.Philips LCD Co., the world's
second-largest maker of liquid-crystal displays, reported its
first profit in five quarters after prices of monitor and
notebook panels rose.

Net income was 228 billion won ($248 million) in the three
months ended June 30, from a record loss a year earlier, Seoul-
based LG.Philips said today in a regulatory filing. Sales,
including overseas affiliates, rose 45 percent to 3.36 trillion
won. Profit beat analysts' estimates.


Read more at Bloomberg Emerging Markets News