Rand holds firm after overnight gains

(Reuters) - South Africa's rand was steady early on Thursday, after firming overnight against the dollar on a higher gold price, and may get a further leg up from talk of another local bank takeover.

The rand was trading at 6.93 to the dollar at 0640 GMT, a touch firmer than its previous New York close after earlier touching 6.9225, its strongest level since May 16 according to Reuters data.


Read more at Reuters Africa

Morocco unveils reforms for freer capital movement

(Reuters) - Morocco will make it easier for local businesses to hold assets in foreign currencies and lend money to export clients from next month, as part of long-term plans to integrate its strengthening economy into world markets.

Finance Minister Fathallah Oualalou said the government would allow companies to hold 50 percent of their export income in foreign currencies, up from 20 percent previously, reducing their currency risks and foreign exchange costs.


Read more at Reuters Africa

Subprime woe, Bernanke talk hit US stocks; IBM up late

(Reuters) - U.S. stocks fell on Wednesday on deepening concerns that a crisis in lending could spread and a warning from the Federal Reserve chairman that weakness in housing could hurt economic growth for some time.

Disappointing results from technology bellwethers also weighed on stocks. Shares of Intel Corp. and Yahoo fell nearly 5 percent after their quarterly scorecards fell short of some expectations.


Read more at Reuters Africa

TPG plans to buy control in Russian grocer -paper

(Reuters) - The deal might be closed on Sept. 3. The Russian sellers
would be the current top owners of the chain, businessmen
Vladimir Gruzdev and Alexander Zanadvorov.




The purchase could become the largest ever retail sector
acquisition in Russia, outpacing the previous record deal in
which Alfa Group paid around $900 million for a major stake in
retailer Pyaterochka.


Read more at Reuters.com Mergers News

Trichet's Rift With French President Sarkozy Deepens Over ECB Independence

(Bloomberg) -- Jean-Claude Trichet's rebuke of a
French demand for a greater voice for governments in setting
interest rates deepened a rift with President Nicolas Sarkozy.

``Such declarations are not acceptable,'' European Central
Bank spokeswoman Regina Schueller said yesterday on behalf of
Trichet. ``The president of the ECB repeats with gravity that any
attempt'' to influence the ECB violates the European Union's
founding treaty.


Read more at Bloomberg Currencies News

South Korean Won Climbs to Highest This Year; Malaysian Ringgit Advances

(Bloomberg) -- The South Korean won rose to the
strongest this year on signs growth in Asia is accelerating.

The currency has strengthened almost 1 percent in July as
the central bank and government raised this year's growth
forecasts. Vice Finance Minister Kim Seok Dong said today the
government will stabilize the won when necessary. China's economy,
South Korea's biggest export market, grew at the fastest pace in
12 years in the second quarter, a report today showed.


Read more at Bloomberg Currencies News

China Economy Expands 11.9 Percent in Second Quarter, Fastest in 12 Years

(Bloomberg) -- China's economy grew at the fastest
pace in 12 years in the second quarter and inflation accelerated
the most in nearly three, adding pressure on the government to
raise interest rates and cool investment.

Gross domestic product expanded 11.9 percent from a year
earlier, the statistics bureau said in Beijing today, up from
11.1 percent in the first quarter. Inflation climbed to 4.4
percent in June, breaching the central bank's annual 3 percent
target for a fourth month.


Read more at Bloomberg Bonds News

TVS Expects New Motorcycles in India, Overseas Expansion to Boost Profit

(Bloomberg) -- TVS Motor Co., India's third-largest
motorcycle maker, expects profit to rise for the first time in
four years as it introduces new domestic models and expands to
Indonesia.

The company will start selling new variants of the Victor
and Apache motorcycles in India, TVS Chairman Venu Srinivasan
said in an interview in Jakarta yesterday. Profit at the company
fell 43 percent to 666 million rupees ($16.5 million) for the
year ended March 31 after TVS cut prices and cost of raw
materials such as steel and aluminum rose.


Read more at Bloomberg Emerging Markets News

Sakhalin Energy Sells Vityaz Crude Oil to GS Caltex for September Loading

(Bloomberg) -- Sakhalin Energy Investment Co. sold a
cargo of Vityaz crude oil for loading in September, said traders
who submitted bids to buy cargoes.

GS Caltex Corp., South Korea's second-biggest refiner,
bought the cargo, said the traders who asked not to be identified
because of company policy.


Read more at Bloomberg Energy News

South Korea's Kospi Has First Rise in Three Days; Kookmin, LG Chem Advance

(Bloomberg) -- South Korean stocks climbed, breaking
a two-day slide, on speculation strong exports and domestic demand
will fuel a recovery in the economy. Kookmin Bank led advances.

LG Chem Ltd. gained after reporting quarterly profit that was
more than double analysts' estimates.


Read more at Bloomberg Stocks News

Chipmakers, Oil-Dependents, LG Chem, Pusan Bank: South Korea Stock Preview

(Bloomberg) -- The following shares may rise or fall
in South Korea. Prices refer to the previous close. This preview
includes news announced after markets shut yesterday. Stock
symbols are in brackets after the company names.

The Kospi index retreated 1 percent to 1930.70. The Kosdaq
fell 0.1 percent to 818.92. Kospi 200 futures expiring in
September slipped 1.2 percent to 245.80, while the underlying
index dropped 1.2 percent to 244.92.


Read more at Bloomberg Stocks News

Dollar May Extend Drop Versus Yen as Fed Lowers Economic Growth Outlook

(Bloomberg) -- The dollar may fall a second
straight day against the yen on speculation signs of weakening
U.S. economic growth will reduce demand for the nation's assets.

The U.S. currency dropped yesterday after the Federal
Reserve lowered its forecasts for economic growth. U.S. reports
today are forecast to show the economic outlook is worsening,
while manufacturing slowed. A drop in stocks may push investors
to pare riskier assets funded by loans in Japan, adding to the
yen's advance.


Read more at Bloomberg Currencies News

US CREDIT-Bear Stearns, brokers, wider on mortgage fears

(Reuters) - Spreads of other brokers including Lehman Brothers Holdings
Inc. , Merrill Lynch & Co. and JP Morgan Chase &
Co. also weakened on Wednesday on concerns that losses
in residential mortgages may be spreading from subprime to
higher-rated loans.




The cost to insure the debt of Bears Stearns Cos.
jumped as investors anticipated the company's statement on
Tuesday, and continued rise after the statement's release. For
details, see [ID:nN17260293].


Read more at Reuters.com Bonds News

Dow Jones director Li probed on insider trade: WSJ

(Reuters) - Li is chairman and chief executive officer of Bank of East Asia , a mid-tier Hong Kong lender. He is also a member of Hong Kong's Legislative Council.




Dow Jones's board on Tuesday endorsed a $5 billion buyout offer from Rupert Murdoch's News Corp., sending the deal to Dow Jones' controlling Bancroft family for final approval. Dow Jones representatives were not immediately available for comment on Li.


Read more at Reuters.com Business News

CIT eyes change-of-control provisions to debt

(Reuters) - Speaking on a conference call, CIT CFO Joe Leone said the company is considering adding "change of control" provisions to debt that it issues. Generally, these provisions are designed to protect bond investors if a company should be acquired, particularly if the commercial and consumer lender were to sell itself to private equity investors.



CIT is leaning toward putting these provisions in new bonds that it issues on a case-by-case basis, should the market demand them, Chief Executive Jeff Peek told Reuters in an interview.


Read more at Reuters.com Bonds News

TREASURIES-Subprime fears, Bernanke growth view boost bonds

(Reuters) - NEW YORK, July 18 - U.S. government bond prices
climbed on Wednesday as investors flocked into low-risk assets
on fears of the subprime mess and Federal Reserve Chairman Ben
Bernanke's view of the housing drag on growth.




There were heightened worries about the health of Wall
Street investment banks after Bear Stearns said late
Tuesday the pair of hedge funds it managed, which had invested
heavily in subprime mortgages, have "very little value."


Read more at Reuters.com Bonds News

Senate panel resets session on FDA tobacco bill

(Reuters) - Kennedy's bill is backed by dozens of other senators, major public health groups and Altria Group Inc. unit Philip Morris USA, maker of top-selling Marlboro cigarettes.




Opposed by smaller cigarette makers as too favorable to Philip Morris, the bill would let the FDA restrict tobacco advertising; prevent cigarette sales to minors; toughen warning labels; bar misrepresentation of tobacco's dangers; and order removal of harmful ingredients from cigarettes.


Read more at Reuters.com Mergers News

Foreign direct investment good for economy-Bernanke

(Reuters) - Bernanke also said using the Social Security system and
simplication of the U.S. tax code would provide incentives to
encourage consumers to save more.




"One might consider using the existing Social Security
system...possibly an add-on account whereby individuals had a
chance through their payroll taxes to contribute to a
independent account that would be in their name," he said.


Read more at Reuters.com Bonds News

US STOCKS-Indexes fall 1 percent on subprime worries, Bernanke

(Reuters) - The Dow Jones industrial average was down 143.72
points, or 1.03 percent, at 13,827.83. The Standard & Poor's
500 Index was down 15.70 points, or 1.01 percent, at
1,533.67. The Nasdaq Composite Index was down 38.03
points, or 1.40 percent, at 2,674.26.




Read more at Reuters.com Bonds News

Treasuries Rise on Forecasts From Bernanke, Weakness in Subprime Mortgages

(Bloomberg) -- Treasuries rose, pushing the
benchmark 10-year note's yield below 5 percent, after Federal
Reserve Chairman Ben S. Bernanke predicted inflation will recede
and said housing market weakness may slow economic growth.

The Fed also trimmed its forecast for economic growth this
year because of a slowdown in homebuilding, and an index linked
to the lowest-rated securities backed by subprime mortgages fell
to a record.


Read more at Bloomberg Bonds News

Enron creditors recover $149 mln in settlement

(Reuters) - The settlement with Enron Creditors Recovery Corp., which legally changed its name from Enron Corp. on March 1, resolves claims against roughly 80 defendants, court papers show. Enron accused the defendants of receiving preferential treatment and fraudulent transfers at the expense of other creditors.




Among the settling defendants are affiliates of Allstate Corp , Lehman Brothers Holdings Inc , Merrill Lynch & Co , Northern Trust Co and Prudential Financial Inc , court papers show.


Read more at Reuters.com Bonds News

World airports saw record passengers in 2006

(Reuters) - ACI, the Geneva-based Airports Council International, said the 1,640 airports operated by its members in 178 countries also processed nearly 86 million tonnes of cargo last year -- up 3.6 percent on 2005, reflecting booming world trade.




"The statistics tell a great story -- growth and stability," ACI Director General Robert J. Aaranson said in a statement issued with the figures. "Three-quarters of airports worldwide reported positive passenger growth."


Read more at Reuters.com Business News

UPDATE 1-Silgan second-quarter earnings climb

(Reuters) - Silgan, whose customers include Nestle, Del Monte and
Campbell, said profit rose to $26.8 million, or 70 cents a
share, from $16.4 million, or 43 cents a share, a year
earlier.




Excluding items, earnings rose to 74 cents a share from 53
cents.


Read more at Reuters.com Market News

Bear Stearns Says There is `No Value Left' for Investors in Failed Funds

(Bloomberg) -- Bear Stearns Cos. told investors in
its two failed hedge funds that they will get little if any money
back after ``unprecedented declines'' in the value of AAA rated
securities used to bet on subprime mortgages.

Estimates show there is ``effectively no value left'' in the
High-Grade Structured Credit Strategies Enhanced Leverage Fund
and ``very little value left'' in the High-Grade Structured
Credit Strategies Fund, Bear Stearns said in a two-page letter.
The second fund still has ``sufficient assets'' to cover the $1.4
billion it owes Bear Stearns, which as a creditor gets paid back
first, according to the letter, obtained yesterday by Bloomberg
News from a person involved in the matter.


Read more at Bloomberg Bonds News

US RATE FUTURES-Little change to Fed ideas on data

(Reuters) - The data did little to change expectations for Federal
Reserve interest rate policy, especially ahead of two days of
testimony to Congress from Fed Chairman Ben Bernanke due to
start at 10 a.m .




Futures show the market favors the Fed holding overnight
lending rates steady at 5.25 percent in August . Implied
Prospects for a rate cut by year-end slipped to 16
percent from as high as 22 percent earlier.


Read more at Reuters.com Bonds News

UPDATE 2-Amphenol quarterly profit higher, raises forecast

(Reuters) - Amphenol also raised its financial forecast for the year.




Net income in the second quarter rose to almost $84
million, or 46 cents a share, from $53.3 million, or 29 cents a
share, a year earlier. The profit was a penny above what
analysts polled by Reuters Estimates had expected.


Read more at Reuters.com Market News

June housing starts up 2.3 pct, permits plummet

(Reuters) - Building permits fell 7.5 percent in June to a pace of
1.406 million units. That's just above the 1.402 million unit
rate seen in June 1997 and below the 1.48 million unit rate
that economists had expected.




Wednesday's data comes a day after a report indicating that
home-builder confidence is sinking as mortgages become more
difficult to obtain, with banks tightening their lending
standards.


Read more at Reuters.com Bonds News

Acciona agrees 1.8 bln euro loan for Endesa buy

(Reuters) - Enel and Acciona, who together control 46 percent of Endesa,
plan to launch a takeover bid for the rest valuing the company
at 42.5 billion euros.




Read more at Reuters.com Bonds News

UPDATE 1-Altria profit falls on charge, Kraft spinoff

(Reuters) - The company, which saw earnings pressured by its spinoff of
Kraft Foods Inc. , also cut its full-year earnings
forecast to reflect additional charges for asset impairment and
other costs.




The parent of Philip Morris USA and Philip Morris
International posted second-quarter profit of $2.22 billion, or
$1.05 a share, compared with $2.71 billion, or $1.29 a share, a
year earlier.


Read more at Reuters.com Market News

ABN AMRO assessing 2 bids for bank, no disposal plans

(Reuters) - ABN said it would "assess the proposed offers in a fair and
transparent manner" and, in response to a conditionality in the
consortium's bid that ABN refrain from disposing of major
assets, said it had no intention of selling off big parts of its
business.




Read more at Reuters.com Mergers News

Mexico's Central Bank Halts Dollar Auctions for the First Time Since 2003

(Bloomberg) -- Mexico's peso rose to the highest
against the dollar in almost a month amid a surge in the price of
oil, the biggest source of government revenue.

``Oil has a big effect on the peso,'' said Eduardo Perez,
who helps oversee $5 billion in assets in Mexico City at Grupo
Nacional Provincial SA, the country's biggest insurance company.
``The incoming flows prop up the currency.''


Read more at Bloomberg Emerging Markets News

Corporate Bond Risk Soars to 2-Year High on Bear Stearns Hedge Fund Losses

(Bloomberg) -- The risk of owning corporate bonds
soared to the highest in two years in Europe after Bear Stearns
Cos. said investors in two U.S. subprime hedge funds will get
little or no money back, credit-default swap prices show.

Contracts on 10 million euros ($13.8 million) of debt
included in Europe's iTraxx Crossover Series 7 Index jumped as
much as 36,000 euros to 324,000 euros, according to Deutsche
Bank AG. The risk premium is the highest since 2005 when General
Motors Corp. and Ford Motor Co. had their ratings cut to high
risk, high-yield.


Read more at Bloomberg Bonds News

Russia's Annual June Industrial Production Accelerates to 10.9 Percent

(Bloomberg) -- Russian industrial production grew an
annual 10.9 percent in June, the fastest pace in two-and-a-half
years, led by steam turbines, tractor-trailers and television
sets.

Growth accelerated from 6.7 percent in the previous month,
the Moscow-based Federal Statistics Service said in an e-mailed
statement today. The median forecast of 16 economists was for 6.6
percent. Output grew 12.5 percent in November of 2004.


Read more at Bloomberg Emerging Markets News

Ivory Coast Cocoa Arrivals Decline 12 Percent This Season, Exporters Say

(Bloomberg) -- Cocoa deliveries to Ivory Coast's
ports for shipment abroad have declined as much as 12 percent
since the start of the main harvesting season due to a lack of
rains, according to exporters with access to the information.

Arrivals at the ports of Abidjan and San Pedro from farms
in the country, a measure of production in the world's biggest
growing country, were 1.13 million to 1.14 million metric tons
from Oct. 1 to July 15, the exporters said today. They based
their estimates on figures provided by the state-run Bourse du
Cafe et du Cacao and their own data. They declined to be named
because the data are confidential.


Read more at Bloomberg Commodities News

European Bonds Advance on Concern Worsening U.S. Subprime Losses to Spread

(Bloomberg) -- European bonds advanced on concern
that defaults on U.S. subprime mortgages will worsen, prompting
investors to seek the safety of government debt.

U.S. and Japanese government bonds also rose after Bear
Stearns Cos. reported losses on hedge funds that bet on bonds
backed by the mortgages to people with poor or limited credit.
The risk of owning European corporate bonds soared today,
according to traders of credit-default swaps.


Read more at Bloomberg Bonds News