UPDATE 1-Bear Stearns to be sued over subprime funds-CNBC

(Reuters) - The lawsuit will be brought by the firm of Bernstein
Litowitz Berger and Grossman LLP, which represented investors
against WorldCom Inc. over a massive accounting fraud, CNBC
said.




According to CNBC, the lawsuit will allege Bear Stearns
made material misrepresentations in offering documents,
misrepresented risks of the hedge funds in those documents, and
misrepresented its ability to control those risks.


Read more at Reuters.com Bonds News

Alcoa CEO boosts stake in co. after Alcan bid fails

(Reuters) - Alcoa spokesman Kevin Lowery told Reuters that by exercising stock options and other transactions, Belda now holds 146,000 more shares in Alcoa than he did two years ago.




He holds a total of 1,375,385 out of Alcoa's roughly 869.5 million shares outstanding, Lowery said.


Read more at Reuters.com Mergers News

Wall St Week Ahead: Stock bull riders eye home sales, earnings

(Reuters) - A sharp drop in shares of equipment-maker Caterpillar Inc.
on Friday showed just how badly a stock can be hurt
when there is an earnings shortfall. The company reported an
earnings decline that was greater than expected. The stock
fell 4.4 percent and spoiled the Dow's day.




Despite Caterpillar's problems, multinational corporations
have been in a position to benefit from stronger economies
overseas.


Read more at Reuters.com Economic News

Scholastic, After Harry Potter Finale, Faces Buyer Who Must Not Be Named

(Bloomberg) -- After the final adventures of Harry,
Hermione and Ron, Scholastic Corp. may face an exodus of
shareholders if the company doesn't consider selling itself.

Investors including Mark Boyar of Boyar Asset Management
Inc. say the New York-based publisher should be sold because
Chief Executive Officer Richard Robinson, who has run Scholastic
since 1975, hasn't used the windfall from ``Harry Potter,'' the
biggest hit in books in the past decade, to build successful new
businesses. Robinson said today he has no intention of selling.


Read more at Bloomberg Exclusive News

Internet Brands files for $100 million IPO

(Reuters) - Internet Brands did not reveal in the filing how many Class
A shares it plans to sell or the expected price. It also did
not reveal a symbol for its listed stock.




Read more at Reuters.com Government Filings News

UPDATE 2-Potash Corp. to spend $1.6 on new mine, expansion

(Reuters) - OTTAWA, July 20 - Potash Corp. of Saskatchewan
said on Friday it will spend $1.6 billion to build a
new potash mine and expand milling operations in Eastern
Canada.




The new mine will produce 2 million tonnes of potash a year
from the company's Picadilly deposit and, once fully developed,
will replace the existing underground operation, said Potash,
the world's biggest fertilizer producer by capacity.


Read more at Reuters.com Bonds News

UPDATE 1-Yum says may have to make material tax payments

(Reuters) - In a regulatory filing, Yum said the IRS had proposed
certain tax adjustments, claiming the company did not file gain
recognition agreements in connection with certain transfers of
foreign subsidiaries.




Yum said it will contest any proposed adjustment and that
it could not give a meaningful estimate for any potential
payments. It added, however, that "given our strong defenses to
the IRS' position, that any payments we would make ... would
not have a significant adverse impact on the company's
financial results or condition."


Read more at Reuters.com Government Filings News

UPDATE 1-ArcelorMittal US mill sale deadline extended

(Reuters) - The U.S. Department of Justice did not oppose the
extension, according to court documents.




The company, which had been ordered to sell the mill by the
DOJ after Mittal bought Arcelor, asked that the deadline be
moved until Aug. 6, according to documents filed with the U.S.
District Court for the District of Columbia on Friday. The
deadline had been July 20.


Read more at Reuters.com Mergers News

Citigroup, Wachovia profits top forecasts

(Reuters) - Profit rose 18 percent at Citigroup, the largest U.S. bank,
and 24 percent at Wachovia, the fourth largest.




Shares of both companies fell, however, as investors
worried that banks would get stuck with more soured consumer
loans or riskier corporate debt on their balance sheets.


Read more at Reuters.com Market News

"No guidance" policy jolts Google investors again

(Reuters) - Once again, analysts say, the culprit was Google's irascible stance of keeping Wall Street in the dark over its outlook -- resisting short-term profit pressures, but creating unnecessary volatility for investors, analysts complained.




On Thursday, Google reported a 58 percent jump in second-quarter revenue, matching the average analyst forecast. But profit fell short of expectations after a 13 percent spike in new hires over the last three months drove up payroll and operating expenses and ate into Google's margins.


Read more at Reuters.com Business News

Black&Decker recalls grass trimmer after injuries

(Reuters) - The trimmer, called the Black & Decker GH1000 Grasshog XP
String Trimmer/Edgers and made in China, was sold from November
2005 through January 2007 for about $70, the CPSC said.




The recall includes machines with date codes 200546 through
200645 and with black spool covers.


Read more at Reuters.com Government Filings News

UPDATE 1-U.S. Treasury says subprime woes appear contained

(Reuters) - WASHINGTON, July 20 - The U.S. Treasury
Department on Friday said the recent woes in the subprime
mortgage market appear to be contained and do not now threaten
the broader financial system.




A senior Treasury official, speaking on condition of
anonymity, said the recent mortgage market turmoil "appears
contained" and is not imperiling the broader economy or
financial markets.


Read more at Reuters.com Bonds News

UPDATE 2-JPMorgan: Storm brewing as mortgage rates move higher

(Reuters) - NEW YORK, July 20 - Borrowers of almost half of
the $500 billion of risky subprime mortgages facing higher
interest rates over the next 18 months will have trouble
refinancing, J.P. Morgan Chase & Co. said on Friday.




An inability by many homeowners with spotty credit
histories to refinance their mortgages would lead to more
mortgage delinquencies and defaults, increasing losses in
investment portfolios that hold securities backed by the
loans.


Read more at Reuters.com Bonds News

Orbitz Worldwide shares fall in NYSE debut

(Reuters) - The drop in Orbitz shares on the first day of trade indicates a perception in the market that the company's leaders are distracted as they face strong competition from Expedia Inc. and Priceline , one analyst said.




"This is the fourth transaction in as many years, and you have to consider what that does to management's focus," said Ben Holmes, publisher of MorningNotes.com.


Read more at Reuters.com Hot Stocks News

Peru's poor lose faith in market-friendly president

(Reuters) - Teachers, peasant farmers and trade unionists have all taken to the streets of the South American country in recent weeks in sometimes violent protests to press demands ranging from more roads, better education and cheaper fertilizers.




"He's not governing for poor people, he's governing for the rich. We want him to implement the responsible change he's promised, and if he can't do it, he should go," teacher Elma Suarez, 35, said during a protest in the capital, Lima.


Read more at Reuters.com Bonds News

Boston Scientific misses view as stent sales slide

(Reuters) - On that basis, the consensus estimate on Wall Street was for a profit of 19 cents per share, according to Reuters Estimates.




Net earnings were $115 million, or 8 cents per share, and included a special after-tax charge of $9 million, or less than a penny per share. That compares with a year-ago loss of $4.26 billion, or $3.21 per share, including an after-tax charge of $4.54 billion, or $3.42 per share, relating to the acquisition of Guidant.


Read more at Reuters.com Business News

UPDATE 1- Quest Energy Partners files for IPO

(Reuters) - The offering represents about 37 percent equity interest in
Quest Energy Partners.




A.G. Edwards & Sons Inc., Wachovia Capital Markets LLC and
RBC Capital Markets Corp. will act as joint lead book-running
managers for the transaction, with Friedman Billings Ramsey &
Co. Inc. acting as a co-manager.


Read more at Reuters.com Bonds News

CHRONOLOGY: China's measures to cool its economy

(Reuters) - JULY 20, 2007 - Central bank raises one-year deposit rate 0.27 percentage point to 3.33 percent and the one-year lending rate by 0.27 percentage point to 6.84 percent, effective July 21. Sight deposit rate also raised to 0.81 percent from 0.72 percent.




JULY 1, 2007 - China reduces or abolishes value-added tax rebates on 37 percent of its export categories to deter exports of energy-intensive products.


Read more at Reuters.com Business News

Citigroup 2nd-qtr profit rises 18 pct

(Reuters) - NEW YORK, July 20 - Citigroup Inc. , the largest U.S. bank, said on Friday that second-quarter profit rose 18 percent, helped by record revenue growth, especially outside the United States, and tight cost controls.



Net income increased to $6.23 billion, or $1.24 per share, from $5.27 billion, or $1.05, a year earlier.


Read more at Reuters.com Bonds News

UPDATE 1-Schlumberger 2nd-qtr profit up, tops Street view

(Reuters) - Still, Schlumberger cautioned the short-term outlook for
its North American business was uncertain due to record imports
of liquefied natural gas and continued weakness in Canada.




Net profit for the Houston-based company rose to $1.26
billion, or $1.02 cents per diluted share, from $857 million,
or 69 cents per share, a year earlier.


Read more at Reuters.com Market News

U.K.'s FTSE 100 Is Little Changed; Mining Shares Advance as Sage Retreats

(Bloomberg) -- U.K.'s mining stocks rose, paced by
Rio Tinto Plc after copper prices climbed in Asia. Kingfisher
Plc advanced after Deutsche Bank AG raised its recommendation on
shares of Europe's biggest home-improvement retailer.

Sage Group Plc, Britain's biggest maker of accounting
software, paced falling shares.


Read more at Bloomberg Stocks News

China Yuan Extends Loss as Central Bank Raises Interest Rates a Third Time

(Bloomberg) -- The yuan had the biggest drop in six
weeks after the central bank raised interest rates to cool an
economy growing at the fastest pace in more than 12 years.

The People's Bank of China boosted lending and deposit rates
by 27 basis points each just minutes before yuan trading ended.
Gains in the currency and higher borrowing costs may help reduce
excess funds in the banking system that are spurring lending and
investment.


Read more at Bloomberg Currencies News

Nigerian inflation climbs to 6.4 pct in June

(Reuters) - Nigerian consumer price inflation accelerated to 6.4 percent year-on-year in June from 4.6 percent in May, the National Bureau of Statistics said on Friday -- a setback to government which has made low inflation a priority.

"The rise in the index was caused mainly by increase in the price of some food items, fuels, some building materials, transportation and services," the bureau said in a statement.


Read more at Reuters Africa

Gold Drops in London on Speculation Weekly Rally Overdone; Silver Climbs

(Bloomberg) -- Gold fell from a two-month high in
London on speculation that a three-week rally was overdone, given
expectations for increased sales from central-bank reserves.

Gold earlier today climbed to $677.97 an ounce, the highest
since May 10, bringing the gain this month to 4.4 percent.
European central banks can sell as much as another 190 metric
tons of bullion by Sept. 26 as part of an agreement to limit
their sales to 500 tons a year, figures this week from the World
Gold Council show.


Read more at Bloomberg Commodities News

Club Med Chocolate Wraps, Foie Gras Pull Shareholders to Remade Resorts

(Bloomberg) -- Club Mediterranee SA invented the
market for low-cost, all-inclusive vacations before losing
customers to cheaper Internet competitors.

Now, it's making itself over as a more expensive resort
chain, winning back clients who've grown up, started families and
can now afford to splurge on spa treatments and horse lessons.
The company is also luring investors who expect its stock, worth
about a third of its record 152.9 euros, to rise as much as 11
percent by September.


Read more at Bloomberg Stocks News

Stora Enso Bid to Eclipse Record Value Turns on Brazilian Eucalyptus Trees

(Bloomberg) -- Stora Enso Oyj's prospects for a
return to record stock prices of seven years ago are growing in
South American forests far from the Finnish papermaker's
traditional timberlands.

The world's second-biggest papermaker may have found an
answer to higher fiber prices that have been eating up profit.
Stora is planting and harvesting faster-maturing trees, such as
eucalyptus, in Brazil and Uruguay to guarantee a source of less-
expensive wood pulp.


Read more at Bloomberg Exclusive News

HIGHLIGHTS-Ericsson <ERICb.ST earnings, comments

(Reuters) -




COMMENTS FROM NEWS CONFERENCE
Svanberg says the second half of the year is usually
stronger in terms of cash flow.


Read more at Reuters.com Market News

Tribune Debt Has 49% Default Risk, Higher Than Ford, Default-Swaps Show

(Bloomberg) -- Tribune Co. has an almost 50-50
chance of missing interest payments on some of the $13 billion
in debt it will have after real estate investor Sam Zell buys
the company, trading in the company's credit-default swaps
shows.

Prices of the swaps, financial contracts used to speculate
on a company' ability to repay debt, have jumped $309,000 since
the first step in the sale was completed in May. It costs
$748,000 to protect $10 million of Tribune bonds for five years,
according to CMA Datavision, indicating a 49 percent risk of
default. That's up from 32 percent on May 24, based on a
JPMorgan Chase & Co. pricing model.


Read more at Bloomberg Bonds News