TREASURIES-Bonds steady at higher levels after 5-yr auction

(Reuters) - The benchmark 10-year note was trading 25/32
higher in price for a yield of 4.80 percent from 4.90 percent
late on Wednesday, while the two-year note _was 9/32
higher in price for a yield of 4.58 percent from 4.74 percent.




Read more at Reuters.com Bonds News

UPDATE 1-H&R Block says Breeden role at KPMG poses conflict

(Reuters) - NEW YORK, July 26 - H&R Block Inc. said
on Thursday it has contacted federal investigators about a
possible conflict of interest involving dissident shareholder
Richard Breeden, the former U.S. Securities and Exchange
Commission chairman who is seeking three board seats.




Breeden was appointed by the Justice Department in 2005 to
monitor KPMG LLP's compliance with a $456 million settlement of
a probe accusing it of setting up fraudulent tax shelters for
wealthy clients.


Read more at Reuters.com Bonds News

Brazil domestic debt rises 2.1 pct in June

(Reuters) - At the end of the month, floating-rate bonds linked to the
benchmark Selic lending rate accounted for 37.6 percent of the
domestic debt, down from 40 percent at the end of May.




Fixed-rate bonds accounted for 38.71 percent of the debt,
up from 37.02 percent a month earlier.


Read more at Reuters.com Bonds News

UPDATE 1-US Treasury sees no breakthrough from China visit

(Reuters) - WASHINGTON, July 26 - U.S. Treasury Secretary
Henry Paulson will urge China to move faster to allow its yuan
currency to appreciate but does not expect a major breakthrough
on the issue when he visits Beijing next week, a senior
Treasury official said on Thursday.




Alan Holmer, the Treasury's special envoy to China, told
reporters that the trip was being made to support the
Treasury's strategic economic dialogue with China and was not
focused on near-term results.


Read more at Reuters.com Bonds News

Mexican markets hammered by U.S. economy worries

(Reuters) - MEXICO CITY, July 26 - Mexican stocks, bonds and
the peso were slammed on Thursday as weak U.S. economic data
and fears of a global credit crunch caused investors to bail
out of risky assets worldwide.




The benchmark IPC stock index slumped 3.56 percent
to 29,996.60 points, its steepest one-day fall since Feb. 27,
when tumbling Chinese shares rattled global markets.


Read more at Reuters.com Bonds News

Southern Co. earnings rise 11 percent

(Reuters) - Rate increases in Alabama and Mississippi to pay for environmental and infrastructure upgrades also helped results, Fanning said.




Those drivers were partly offset by higher operating costs from rising wages and commodity prices along with maintaining an expanding infrastructure. Interest expense also increased.


Read more at Reuters.com Hot Stocks News

Nuveen net up 5 pct, updates on buyout

(Reuters) - Providing an update on the $65-a-share buyout bid by private equity firm Madison Dearborn Partners LLC and other investors, Nuveen said it did not get any competing bids during the 30-day "go shop" period when it actively solicited other potential buyers.




"No proposals to acquire Nuveen were received during the go-shop period," Nuveen chief executive John Amboian told a conference call, adding that the Madison Dearborn buyout was expected to be completed by the end of 2007.


Read more at Reuters.com Mergers News

Verizon open to part of FCC auction proposal

(Reuters) - The statement by Verizon Wireless, a venture of Verizon
Communications Inc. and Vodafone Group Plc ,
signaled a less critical view of proposed conditions for
bidders in the U.S. government auction of wireless airwaves.




"We would agree to rules requiring a winning bidder to
allow any device onto the network in that piece of spectrum,
but there shouldn't be any requirement to guarantee that any
games or Web applications on that device would work properly,"
said spokeswoman Debra Lewis.


Read more at Reuters.com Government Filings News

UPDATE 2-Navigant Q2 profit down, cuts 2007 view; shares fall

(Reuters) - Tobey Sommer, an analyst with SunTrust Robinson Humphrey,
said the lower operating margin was due to the company's
underutilization of its available headcount.




"They didn't build as many hours as they would have liked,"
Sommer said by phone.


Read more at Reuters.com Market News

US Airways second-quarter net profit declines

(Reuters) - The airline, formed in 2005 from a merger of America West and US Airways, said its second-quarter profit amounted to $263 million, or $2.77 per share, compared with $305 million, or $3.25 per share, a year earlier.






Read more at Reuters.com Market News

Reddy Ice Q2 earnings below market view, cuts '07 outlook

(Reuters) - The company now expects a full year profit of $14.8 million
to $18.9 million, down from its prior view of $16.3 million to
$20.4 million. It expects earnings per share of 67 cents to 86
cents, down from its previous view of 74 cents to 93 cents.




Revenue in 2007 is expected to be $345 million to $355
million, down from its prior view of $350 million to $360
million.


Read more at Reuters.com Market News

UPDATE 1-MKS profit falls as costs climb, shares down

(Reuters) - The company said second-quarter net income fell to $22.5
million, or 39 cents per share, from $24.4 million, or 44 cents
per share, a year ago.




Excluding amortization and other one-time charges, earnings
per share was 43 cents, down from 48 cents a share a year ago.


Read more at Reuters.com Market News

Goodyear profit up, but shares fall

(Reuters) - CHICAGO, July 26 - Goodyear Tire & Rubber Co. said on Thursday quarterly profit rose as it focused on selling more expensive brand-name tires and working through a multiyear restructuring.



Goodyear is in a restructuring set to run through 2009 that includes expanding production in low-cost regions, increasing capacity for more expensive high-margin tires and divesting units not engaged in tire production.


Read more at Reuters.com Market News

UPDATE 2-UST profit up, beats estimates

(Reuters) - NEW YORK, July 26 - UST Inc. posted
higher second-quarter profit on Thursday, beating analysts'
estimates, on increased sales of wine and smokeless tobacco,
and raised its full-year earnings forecast.




Net income climbed to $139.9 million, or 87 cents per
share, from $134.6 million, or 83 cents per share, a year
earlier.


Read more at Reuters.com Market News

Microsoft says Windows Vista sales reach 60 million

(Reuters) - Microsoft Chief Executive Steve Ballmer took the stage at the company's headquarters in Redmond, Washington with a message that the software maker can still deliver growth by expanding its core desktop and server software business while succeeding in new areas like Web services.




Windows Vista is at the core of Ballmer's vision. New versions of Office and Windows, Microsoft's bread-and-butter software products, are yielding higher-than-expected renewal of multi-year agreements with large organizations, Ballmer said.


Read more at Reuters.com Market News

UPDATE 2-Alaska Air profit declines, misses Wall St view

(Reuters) - The company's shares fell 9.5 percent, while the Amex
airline index was down 5.6 percent amid a general
stock-market decline.




Seattle-based Alaska, the parent of Alaska Airlines and
Horizon Air, said net income fell to $46.1 million, or $1.13
per share, from $55.5 million, or $1.38 per share, a year
earlier.


Read more at Reuters.com Market News

Brooks Automation says indictment filed against former CEO

(Reuters) - The company said it is cooperating with both the agencies
and that it has not been charged in either the SEC complaint or
the indictment. Therrien retired as CEO of Brooks in 2004.





Read more at Reuters.com Government Filings News

Global stocks lower on credit woes

(Reuters) - As U.S. stocks continued to fall after a sharply lower opening, the decline triggered the New York Stock Exchange's downside restrictions on program trading at 11:06 a.m. ET.




At 11:42 a.m. the Dow Jones industrial average was down 202.41 points, or 1.47 percent, at 13,582.66. The Standard & Poor's 500 Index was down 26.88 points, or 1.77 percent, at 1,491.21 and the Nasdaq Composite Index was down 42.47 points, or 1.60 percent, at 2,605.70.


Read more at Reuters.com Hot Stocks News

Mauritius current account moves into surplus in Q1

(Reuters) - Mauritius registered its first current account surplus in two years in the first quarter of 2007, Central Bank figures showed on Thursday.

"Provisional estimates for the first quarter of 2007 suggest that the current account of the balance of payments registered a surplus of Rs 333 million ... against a deficit of Rs 501 million in the corresponding quarter of 2006," the bank's monthly statistical bulletin said.


Read more at Reuters Africa

Suez unit to buy Canadian group Ventus Energy

(Reuters) - Suez is currently seeking to merge with French peer Gaz de
France .




Read more at Reuters.com Mergers News

UPDATE 1-Colombia denies Mexichem merger with Pavco

(Reuters) - Citing concerns that the merger would be bad for
competition and for consumers, Colombia's Industrial and
Commercial Superintendency issued a statement denying the
deal.




The decision can be appealed before the superintendency by
the companies.



Read more at Reuters.com Mergers News

Bowater shareholders approve merger with Abitibi

(Reuters) - The deal, which was announced on Jan. 29, is expected to be
completed in the third quarter of 2007.





Read more at Reuters.com Mergers News

Calderon, Ebrard Blame Each Other as Mexico City Sewage Mess Seeps Closer

(Bloomberg) -- Summer rains threaten to overload
Mexico City's drainage system and flood Latin America's largest
urban area with sewage, as the president and mayor blame each
other for the predicament.

``We may witness the worst flooding in modern history in
Mexico City,'' President Felipe Calderon said in a speech last
month that Mayor Marcelo Ebrard refused to attend. Calderon said
the water and sewage drainage system ``faces problems more grave
than some authorities have reflected with their actions.''


Read more at Bloomberg Exclusive News

Greenspan says need to simplify tax system

(Reuters) - "I think we should go back to broaden the base and lower the rates and then figure out a political way to keep it there." Greenspan said. He said the ink had "barely dried" on the 1986 tax overhaul before interest groups began chipping away at it.




The former Fed chief left little doubt that he thought the current corporate tax structure was unwieldy and put a damper on companies' ability and willingness to invest.


Read more at Reuters.com Business News

Durable goods orders below expectations

(Reuters) - U.S. Treasury debt prices rose on Thursday, stretching to new session highs, after the weaker-than-expected data on durable goods suggested flagging business growth in the latter part of the second quarter.




The dollar fell to a two-and-a-half month low against the yen and was little changed against the euro.


Read more at Reuters.com Economic News

FTSE 100 Drops, Paced by Legal & General, Home Retail Shares; Shell Climbs

(Bloomberg) -- The U.K. FTSE 100 Index dropped to a
four-month low, paced by insurers after Legal & General Group Plc
said flood claims and a slowdown in new business held back first-
half profit. Prudential Plc dropped.

Home Retail Group Plc paced a retreat in retail shares,
while Bradford & Bingley Plc led banks stock lower as earnings
missed analysts' estimates.


Read more at Bloomberg Stocks News

Mexican Peso Declines to Six-Week Low Amid Equities Rout, Growth Concern

(Bloomberg) -- Mexico's peso fell to a six-week low
as investors retreated from riskier assets and global stock
markets declined.

The currency also slumped for a third day after the U.S.
said orders for durable goods excluding transportation also
unexpectedly fell 0.5 percent in June, raising concern that a
U.S. slowdown could spill over into Mexico.


Read more at Bloomberg Currencies News

MBIA second-quarter earnings fall 4 pct

(Reuters) - NEW YORK, July 26 - MBIA Inc. , the world's largest bond insurer, reported on Thursday that quarterly profit fell 4 percent, hurt by net losses on financial instruments and an increase in investment management expenses.



Net income fell to $211.8 million, or $1.61 a share for the second quarter from $221.4 million, or $1.62 a share, a year earlier.


Read more at Reuters.com Bonds News

UPDATE 1-US RATE FUTURES-Rally on weaker-than-expected durables

(Reuters) - The government said new orders for big ticket-items such as
airplanes and refrigerators rose 1.4 percent last month,
falling short of a 1.8 percent increase forecast among
economists polled by Reuters.




December federal funds futures were up 0.055 at
94.8800, implying traders priced in a 52 percent chance of the
Fed cutting rates by a quarter percentage point by year-end.
This compares with about a 30 percent chance at Wednesday's
close.


Read more at Reuters.com Bonds News

Bristol-Myers profit rises on newer drugs

(Reuters) - The company said it earned $706 million, or 36 cents per share, in the second quarter, compared with $667 million, or 34 cents per share, in the year-earlier period.



Excluding special items, the New York-based drugmaker earned 37 cents per share. Analysts on average expected 36 cents per share, according to Reuters Estimates.


Read more at Reuters.com Market News

Black & Decker quarterly profit falls

(Reuters) - Travelers, which changed its name from St. Paul Travelers earlier this year, said earnings were $1.09 billion, or $1.56 a share, up from $1.01 billion, or $1.41 a share in the year-ago quarter.



) Keywords: TRAVELERS RESULTS/


Read more at Reuters.com Market News

UPDATE 3-DSM raises full-year outlook, shares jump

(Reuters) - AMSTERDAM, July 26 - Dutch chemical company DSM NV
raised its full-year outlook on Thursday after
second-quarter core profit fell less than expected due partly to
higher penicillin prices, boosting its shares.




The company, which is restructuring some units under
pressure from activist shareholders, said it expected 2007
earnings before interest and tax from continuing
operations, excluding exceptional, items to be about 790 million
euros . That's above an earlier forecast of 760
million euros.


Read more at Reuters.com Market News

R.H. Donnelley posts quarterly profit

(Reuters) - Donnelley said second-quarter profit totaled $24.9 million,
or 34 cents per share, compared with a loss of $79.8 million,
or $1.15 per share, a year earlier. Year-ago results included
costs related to its purchase of Dex.




Revenue rose to $666.6 million from $432.3 million.



Read more at Reuters.com Market News

UPDATE 1-Check printer Deluxe posts profit, ups 2007 view

(Reuters) - Net income for the St. Paul, Minnesota-based company was
$36 million, or 69 cents per share. A year earlier, it posted a
net loss of $2.4 million, or 5 cents per share, reflecting a
large write-off.




Revenue fell 1 percent to $399.9 million, while selling,
general and administrative expenses dropped 4 percent.


Read more at Reuters.com Market News

R.H. Donnelley to buy Business.com for $345 mln

(Reuters) - Business.com is expected to generate revenues of greater than $50 million in 2007, the company said in a statement.



The deal is expected to close in the third quarter, it added.


Read more at Reuters.com Mergers News

UPDATE1-Tully's Coffee sees IPO of 3.5 mln shares at $10-$12/shr

(Reuters) - The specialty retailer and wholesaler of hand-craft
roasted, gourmet coffees said KeyBanc Capital Markets Inc.,
D.A. Davidson & Co. and Stifel Nicolaus & Co. Inc. were
underwriting the IPO, according to a filing with the U.S.
Securities and Exchange Commission.




The Seattle, Washington-based company, which has applied
for a Nasdaq listing under the symbol "TULY", has given
underwriters the option to buy up to 525,000 additional shares
to cover any over allotments.


Read more at Reuters.com Bonds News

South Korea's Kospi Index Falls Most in Four Months: World's Biggest Mover

(Bloomberg) -- South Korea's Kospi index fell the
most in four months as investors judged excessive the rally that
this week drove the Kospi index above 2,000 for the first time.
Samsung Electronics Co. led the decline.

``Today's loss is because of profit-taking,'' said Kim Ki
Bong, who oversees $2 billion at CJ Asset Management Co. in
Seoul. ``Shares have become more volatile of late as people are
quicker to sell if the market turns down and buy more heavily
during the rallies.''


Read more at Bloomberg Stocks News

Autoliv Q2 pretax lags consensus, margin outlook cut

(Reuters) - Excluding a legal reserve of $30 million, pretax profit was
$119 million.




The firm, which is based in Sweden but reports in dollars,
said it now saw its operating margin for 2007 as a whole at
close to 7.5 percent versus its previous expectation of close to
8 percent. It said this was due to the rise in legal reserves.


Read more at Reuters.com Market News

Moody's upgrades debt ratings for China, HK, Macau

(Reuters) - China earned an upgrade to its credit rating on Thursday from Moody's Investors Service to reflect exceptional strength in its external payments, favourable government debt trends and continued progress in economic reform.

Moody's also raised the ratings on Hong Kong and Macau, while Standard & Poor's maintained its ratings on China and Hong Kong but raised its outlook on both to positive from stable.


Read more at Reuters Africa

Pioneer Southwest Energy Partners files for $302 mln IPO

(Reuters) - The oil and gas company plans to list its shares on the New
York Stock Exchange under the ticker symbol "PSE."





Read more at Reuters.com Government Filings News

Zambia gives 10,000 tonnes of maize to feed hungry

(Reuters) - Zambia, a former recipient of food aid, has given the U.N World Food Programme (WFP) 10,000 tonnes of white maize to feed orphans and people living with AIDS, a senior aid official said on Thursday.

WFP country manager for Zambia, David Stevenson, said the government donation would be used to help feed hungry people in Zambia where the aid agency requires an additional $10 million to feed Zambians affected by floods in the last rainy season.


Read more at Reuters Africa

UPDATE 1-Hitachi Construction results outshine Caterpillar

(Reuters) - Hitachi Construction, a unit of Hitachi Ltd. and one
of the Japanese electronics conglomerate's few money-making
operations, also said a softer yen will likely help push up its
earnings. Its overseas sales accounted for 75 percent of overall
sales for the April-June quarter.




Hitachi Construction's upbeat results stood in contrast to an
earnings report last week from industry leader Caterpillar, whose
quarterly earnings fell more than expected due to lower truck
engine sales, weakness in North American construction markets and
higher production costs.


Read more at Reuters.com Market News

New Zealand Dollar Declines as Bollard Suggests Rate Increase May Be Last

(Bloomberg) -- New Zealand's dollar had the biggest
slide in a month and bonds rose after central bank Governor Alan
Bollard signaled an interest-rate increase today may be the last.

The local dollar fell against all of the 16 most-active
currencies as Bollard said a 1 percentage point move in rates
this year to a record 8.25 percent should be enough to contain
inflation. A 28 percent surge in New Zealand's currency against
the U.S. dollar in the past year is ``not sustainable'' he said.


Read more at Bloomberg Currencies News

German July Business Confidence Declines for Second Month as Economy Cools

(Bloomberg) -- German business confidence fell for a
second month in July, indicating Europe's largest economy is
losing momentum.

The sentiment index, based on responses from 7,000
executives, fell to 106.4 from 107 in June, the Munich-based Ifo
research institute said today. That's in line with the median
estimate of economists in a Bloomberg News survey. The index
reached an all-time high of 108.7 in December.


Read more at Bloomberg Bonds News

European Stocks Gain on Earnings; ABB, EADS, Lonza Group, DSM Lead Advance

(Bloomberg) -- European stocks rose for the first time
in three days as companies from ABB Ltd., the world's largest
builder of electricity networks, to European Aeronautic Defence &
Space Co. reported earnings that beat analysts' estimates.

``We're seeing a lot of earnings hitting or exceeding
estimates,'' said Peter Jarvis, the London-based director of
European equities at F&C Asset Management, which oversees about
$230 billion. ``Overall, the corporate picture looks pretty good.''


Read more at Bloomberg Stocks News

Palm Oil Gains in Malaysia as Festival Season Approaches, Demand to Rise

(Bloomberg) -- Palm oil futures in Malaysia, the
benchmark for the commodity, rose after exports from the
Southeast Asian nation picked up, indicating higher demand with
the approach of major festivals across Asia in the second half.

This year, China and Chinese people around Asia celebrate
the mid-autumn harvest in September, while Hindus mark their new
year in November. Muslims will fast for a month from mid-
September, starting and ending each day with communal meals.
Most palm oil is used in cooking.


Read more at Bloomberg Commodities News

MOL boosts direct stock stake to 4.12mln shrs

(Reuters) - Through financing deals and stock lending to banks, around
35 percent of MOL's stock is in friendly hands, analysts
estimate.




Read more at Reuters.com Mergers News

Platinum Gains in Asia Trade After UBS Report Says Swiss Stockpiles Drop

(Bloomberg) -- Platinum rose in Asian trading after
a report that stockpiles in Switzerland dropped by almost half
this year, and as wage talks in South Africa raised concerns that
a strike may disrupt supplies.

Inventories in Switzerland, the European storage hub, fell
to 14.7 tons in June from 29 tons in December, John Reade,
London-based head of metals strategy at UBS Investment Bank, a
unit of Zurich-based UBS, said in an e-mailed report yesterday.


Read more at Bloomberg Commodities News