Pound May Fall Versus Dollar on Speculation U.K. Yield Advantage to Shrink

(Bloomberg) -- The pound may fall against the dollar
on speculation the yield advantage the U.K. has over the U.S.
will shrink further before the U.S. employment report.

The pound held above $2 yesterday, trading near its highest
in 26 years, after the Bank of England lifted interest rates. The
extra yield investors receive for holding 10-year gilts over
similar maturity Treasuries shrank to 38 basis points from 45
basis points on July 4 after private reports showed the U.S.
added more jobs in May than forecast and services industries
growth unexpectedly quickened.


Read more at Bloomberg Currencies News

Gold steady, Newmont news has little impact

(Reuters) - Gold firmed slightly on Friday ahead of the release of U.S. payrolls data, while Tokyo futures shed the previous day's gains to track losses in New York.

In a move seen as bullish for the price of gold, Newmont Mining Corp. said on Thursday it scrapped its entire 1.85 million-ounce gold hedge position.


Read more at Reuters Africa

Australian Cattle Price Unchanged After Reaching 3-Month High on Demand

(Bloomberg) -- Benchmark cattle prices in Australia,
the world's second-largest beef exporter, traded near a three-
month high as demand exceeded supply.

The Eastern Young Cattle Indicator, which measures auction
prices in eastern Australia, was unchanged at A$3.3875 ($2.90) a
kilogram today. Prices reached A$3.4225 this week, the highest
since April 4.


Read more at Bloomberg Commodities News

UBS Ousts Wuffli, Names Rohner CEO; Board Rejects Ospel's Successor Plan

(Bloomberg) -- UBS AG, buffeted by three quarters of
declining earnings and losses at one of its hedge funds,
replaced Peter Wuffli as chief executive officer of the world's
biggest money manager.

Marcel Rohner, the Zurich-based company's deputy CEO, will
succeed Wuffli, effective immediately, UBS said in a statement
late yesterday. Marcel Ospel, 57, agreed to stay on as chairman
for at least another three years after the board rejected his
proposal to have Wuffli succeed him.


Read more at Bloomberg Stocks News

Yellen Says Fed's 5.25 Percent Rate Will Foster Growth, Slow Inflation

(Bloomberg) -- Federal Reserve Bank of San Francisco
President Janet Yellen said the central bank's stance of keeping
interest rates unchanged is most likely to achieve faster growth
and slower inflation.

``The virtues of this path are that it avoids exposing the
economy to unnecessary risk of a downturn while, at the same
time, it is likely to produce enough slack in goods and labor
markets to relieve inflationary pressures,'' Yellen said in a
speech via satellite to a conference in Singapore.


Read more at Bloomberg Currencies News

Japanese Bonds Decline for Third Day on Signs of Stronger U.S. Job Growth

(Bloomberg) -- Japanese bonds dropped for a third
day after private U.S. reports showed job creation was faster
than expected and growth in service industries accelerated,
signaling the world's largest economy is gaining momentum.

Bonds in Japan headed for the biggest weekly decline in a
month after 10-year U.S. Treasuries yesterday had the largest
loss in three weeks. A Labor Department report today may add to
expectations stronger employment growth will boost U.S.
inflation. Faster expansion in the U.S., Japan's biggest export
market, may help the Asian nation's economy and back the case
for higher interest rates.


Read more at Bloomberg Bonds News

South Korea Stocks Rise, Led by Samsung Electronics, Hynix Semiconductor

(Bloomberg) -- South Korea's benchmark stock index,
the Kospi Index, rose 0.73 percent at 9:05 a.m.

The index of 731 companies traded on the Korea Exchange rose
13.49 to 1,861.28. Among the stocks in the index, 363 rose, 142
fell and 225 were unchanged.


Read more at Bloomberg Stocks News

Crude Oil May Rise Next Week on Supply, U.S. Gasoline Risks, Survey Shows

(Bloomberg) -- Crude oil may rise next week on
concern that oil supplies from Nigeria and Iran may be curbed and
U.S. gasoline output will drop because of unexpected refinery
closures.

Sixteen of 36 analysts surveyed, or 44 percent, said oil
prices will increase. Fourteen, or 39 percent, said prices will
fall and six forecast little change. Last week, 49 percent of
respondents said prices would rise.


Read more at Bloomberg Energy News

UPDATE 1-Calif. consumer unit urges Sempra utility rate cuts

(Reuters) - The Division of Ratepayer Advocates said Sempra's Southern
California Gas Co. unit should receive a $67.7 million rate
decrease instead of its proposed increase of $139.3 million, or
8.8 percent.




The DRA also said San Diego Gas & Electric Co.'s call for a
20.8 percent, $197.9 million electricity rate hike should be
reduced by $108 million, and SDG&E's proposed 15.1 percent,
$33.8 million natural gas increase should become a $4.3 million
rate reduction.


Read more at Reuters.com Bonds News

Orange Juice Declines as U.S. Retail Sales Fall, Hurricane Threat Eases

(Bloomberg) -- Orange-juice futures in New York fell
for the third straight session as Florida reported that
consumption declined and the threat of hurricanes eased.

Retailers in the U.S. sold 45.23 million gallons of orange
juice in the four weeks ending June 9, down 16 percent from the
same period a year earlier, according to a Florida Department of
Citrus report today. The average price per gallon rose to $6 from
$4.79, boosting retail revenue 5.8 percent to $271.6 million, the
department said.


Read more at Bloomberg Commodities News

Calif. consumer unit urges Sempra utility rate cuts

(Reuters) - The DRA also said San Diego Gas & Electric Co.'s call for a
20.8 percent, $197.9 million electricity rate hike should be
reduced by $108 million, and SDG&E's proposed 15.1 percent,
$33.8 million natural gas increase should become a $4.3 million
rate reduction.




DRA Director Dana Appling said the proposed reductions
total more than $60 million to both utilities' requested
funding of bonus and compensation programs.


Read more at Reuters.com Bonds News

Dollar-Yen Option Volatility to Fall on Rates, Standard Chartered Says

(Bloomberg) -- Investors should bet that option
volatility on the dollar-yen exchange rate will decline as a
four-month U.S. currency rally wanes, Standard Chartered Plc.
said.

Demand for the dollar should fall as U.S. interest rates
slip, reducing the currency's allure, the bank said in a research
note. Standard Chartered economists expect the Federal Reserve to
decrease the benchmark lending rate by 0.25 percentage point to 5
percent and the Bank of Japan to lift its key rate by 0.25
percent to 0.75 percent by year end.


Read more at Bloomberg Currencies News

UPDATE 1-Canada's airlines boost load factors

(Reuters) - Capacity, measured by available seat miles, rose to 1.17
billion from a year-earlier 1 billion. Revenue passenger miles,
a measure of traffic, climbed 21 percent to 940.3 million.




Year to date, WestJet's load factor is up 2.6 percentage
points at 81 percent.


Read more at Reuters.com Market News

Elliott Assoc. raises stake in Packeteer-filing

(Reuters) - Last week, Packeteer said that the U.S. Internal Revenue
Service claimed that the company owed $122 million in
additional taxes, plus $49 million in penalties, for 2003 and
2004. Packeteer said it intended to protest the claims.




Packeteer could not be immediately reached for comment on
Thursday.


Read more at Reuters.com Mergers News

ACR, GM, Hilton Hotels, Huntsman, Marriott, MGM: U.S. Equity Movers Final

(Bloomberg) -- The following is a list of companies
whose shares had unusual price changes on U.S. exchanges. Stock
symbols are in parentheses after company names. Share prices are
as of 4 p.m. in New York.

ACR Group Inc. (BRR US) jumped $2.01, or 44 percent, to
$6.61. Watsco Inc. (WSO US), the largest U.S. distributor of
heating and cooling systems, agreed to buy rival ACR for $81.7
million to expand in states including Texas, Florida and
California. Watsco rose $2.32, or 4.2 percent, to $57.84.


Read more at Bloomberg Stocks News

Fate of BCE management still undecided -Teachers'

(Reuters) - "We're just completely focused now on the transaction and
getting through the shareholder and regulatory approvals,"
Deborah Allan said, adding: "There is no plan."




A consortium led by Teachers', which includes U.S.-based
Providence Equity Partners and Madison Dearborn Partners, was
the winning bidder for BCE, Canada's biggest telecom company,
with a C$34.8 billion all-cash offer last week.


Read more at Reuters.com Mergers News

Coffee Falls in New York as Threat of Crop-Damaging Frost in Brazil Fades

(Bloomberg) -- Coffee fell in New York as forecasts
for warm weather reduced concerns that a frost would damage the
crop in Brazil, the world's largest producer.

Temperatures in Brazil's coffee-growing areas are expected
to be near to above normal, with lows of about 50 degrees
Fahrenheit (10 degrees Celsius), according to Meteorlogix LLC in
Woburn, Massachusetts. A ridge of high pressure will promote warm
and dry weather during the next week, the forecaster said.


Read more at Bloomberg Commodities News

FACTBOX-Corporate impact of Boeing's 787 Dreamliner

(Reuters) - -- Boeing has orders for 642 Dreamliners from 46 different
customers, worth about $100 billion.




-- The first order, for 50 787s, was placed by Japan's All
Nippon Airways in July 2004.


Read more at Reuters.com Mergers News

CFTC Seeks Contempt Order Against Lake Shore Asset Management Over Records

(Bloomberg) -- The Commodity Futures Trading
Commission is asking a U.S. court to hold the Chicago-based hedge
fund, Lake Shore Asset Management Ltd., in contempt of court for
not providing documents.

The commission filed a complaint last month against Lake
Shore, run by a former chairman of the Chicago Mercantile
Exchange, alleging that management overstated its assets, gave
inconsistent statements to regulators, and refused to make
documents available. A federal court froze $228 million of
investor money at the fund based on the complaint.


Read more at Bloomberg Energy News

Weak Dollar Alone Won't Fix Trade Gap, New York Federal Reserve Study Says

(Bloomberg) -- A weaker dollar is unlikely to close
the U.S. trade deficit because foreign exporters have a long-term
interest in maintaining market share in America, the New York
Federal Reserve Bank said in a research note released today.

``Evidence suggests that a weaker dollar will boost foreign
demand for U.S. exports, but this adjustment by itself is
unlikely to close the deficit,'' wrote New York Fed economist
Linda Goldberg and Eleanor Wiske Dillon, a Ph.D. candidate at the
University of Michigan who previously worked at the Fed.


Read more at Bloomberg Currencies News

ABN, ING merger talks broke down on price-report

(Reuters) - ING said in April that it looked at buying ABN in November
and had hired advisors, but decided not to pursue a merger with
its Dutch rival. At the time ABN's shares traded at around 23
euros.




In an interview with Dutch magazine Forum, ABN CEO Rijkman
Groenink said that ABN's share price had risen about 20 percent
during talks with ING, while ING's shares declined 10 percent,
making a merger less attractive.


Read more at Reuters.com Mergers News

Brazil stocks slip after record, currency falls

(Reuters) - The Brazilian currency, the real , weakened 0.21
percent to 1.915 per U.S. dollar.




Interest rates futures <0#DIJ:> on the BM&F futures
exchange in Sao Paulo were mostly higher as traders bet on
capital outflows.


Read more at Reuters.com Bonds News

WRAPUP 2-US jobs market picks up steam as service sector rises

(Reuters) - NEW YORK, July 5 - Growth in the U.S. service
sector rose unexpectedly in June, while the job market also
appeared to pick up some steam, according to reports on
Thursday that signaled strength in the economy.




The Institute for Supply Management's services index rose
to 60.7 in June from 59.7 in May. Analysts had expected the
index to ease to 58.0.


Read more at Reuters.com Economic News

TREASURIES-Bonds fall on stronger services, ADP jobs data

(Reuters) - NEW YORK, July 5 - U.S. Treasury debt prices fell
on Thursday after stronger-than-expected data on jobs and the
services sector suggested to investors the Federal Reserve will
not move to cut official interest rates any time soon.




Bonds got off to a rocky start, following euro zone debt
down before the European Central Bank left rates on hold at 4
percent, as expected, but also signaled a September increase is
likely. In Britain, the Bank of England raised rates by 25
basis points to a six-year high of 5.75 percent.


Read more at Reuters.com Bonds News

US HIGH YIELD-Market turmoil may spell end to easy money

(Reuters) - Following a tumultuous two weeks in which several junk bond
sales were pulled or terms sweetened to draw buyers, all eyes
will be on a spate of bond sales expected after this week's
Fourth of July holiday hiatus for a clue to the appetite for
risky debt.




Few are talking about a broad credit tightening, since it
is mostly the riskiest deals that have struggled to find
buyers, yet the days of freewheeling financing for all comers
are likely over, investors said.


Read more at Reuters.com Mergers News

Hilton would pay Blackstone break-up fee

(Reuters) - Break-up fees are customary in takeover deals and are put in place to dissuade the sides from walking away.




In the filing, Hilton said Blackstone received financing commitments from a group of banks including Bear Stearns , Bank of America , Goldman Sachs , and Morgan Stanley . The filing doesn't detail the amount of debt that will be used to finance the deal.


Read more at Reuters.com Business News

Rand weakens versus resurgent dollar

(Reuters) - South Africa's rand eased against the dollar on Thursday, relinquishing some of its gains earlier in the week, as the greenback rose on data showing greater than expected activity in the U.S. services sector.

The rand was at 7.0135 versus the dollar at 1455 GMT, down 0.62 percent from its previous close of 6.9700.


Read more at Reuters Africa

Chile's Peso Weakens on Lower-Than-Expected Economic Expansion During May

(Bloomberg) -- Chile's peso weakened after the
economy expanded at a lower-than-expected rate in May, reducing
the likelihood of an interest rate increase next week.

Chile's economy grew 4.8 percent in May from a year
earlier, the central bank said today on its Web site. South
America's fifth-biggest economy grew less than the 5.5 percent
median forecast in a Bloomberg survey of 16 economists. Chile's
economy expanded 6.6 percent in April.


Read more at Bloomberg Currencies News

Ford submits sole bid for Romania's Daewoo Craiova

(Reuters) - BUCHAREST, July 5 - Ford Motor Co has submitted the sole bid in a tendering for a majority stake in Romanian car-maker Daewoo Automobile Craiova, state privatisation agency AVAS said on Thursday. "AVAS received ... only one offer, from Ford Motor Co," the agency said in a statement.



Romania wants to sell a 72.4 percent stake in Daewoo Automobile Craiova. Earlier this year, Romania said it had received letters of intent from General Motors Corp. and Russian Machines, as well as Ford.


Read more at Reuters.com Mergers News

UPDATE 1-U.S. jobless claims rose 2,000 last week

(Reuters) - WASHINGTON, July 5 - The number of initial claims
for U.S. jobless aid filed last week rose 2,000, while a more
reliable barometer of labor trends climbed to its highest level
in two months, government data showed on Thursday.




First-time applications for state unemployment insurance
benefits rose to 318,000 in the week ended June 30 from an
upwardly revised 316,000 the prior week, the Labor Department
said.


Read more at Reuters.com Economic News

US STOCKS-Dow, S&P futures turn negative as yields rise

(Reuters) - S&P 500 futures fell 0.40 point, even with fair
value, a mathematical formula that evaluates pricing by taking
into account interest rates, dividends and time to expiration
on the contract.




Dow Jones industrial average futures were down 20
points, and Nasdaq 100 futures were up 3.50 points.


Read more at Reuters.com Bonds News

CVS June same-store sales rise 5.4 percent

(Reuters) - June same-store pharmacy sales increased 4.7 percent, while same-store sales of general, or "front-end," merchandise such as candy and cosmetics rose 6.8 percent.



In the second quarter same-store sales rose 5.7 percent. Pharmacy same-store sales rose 5.7 percent during the quarter, while front-end same-store sales rose 5.9 percent.


Read more at Reuters.com Market News

Wall St seen opening higher on M&A, data eyed

(Reuters) - Shares of Hilton Hotels Corp. will be in the spotlight after U.S. private equity firm Blackstone Group on Tuesday agreed to buy the company for about $20 billion plus debt -- the richest in a series of private equity offers for hotel companies.




The U.S. stock market was closed for the Independence Day holiday on Wednesday. Stocks rose in a shortened session on Tuesday, boosted by takeover news.


Read more at Reuters.com Business News

China's CSI 300 Index Slides the Most in a Month: World's Biggest Mover

(Bloomberg) -- China's stocks fell the most in a
month on concern $20 billion of planned share sales will
overwhelm demand for equities as regulators seek to damp
speculation in Asia's best-performing stock market.

China Petroleum & Chemical Corp. and Baoshan Iron & Steel
Co. were among the biggest contributors to today's decline.


Read more at Bloomberg Stocks News

Copper Declines in London on China Import Concern; Lead Drops From Record

(Bloomberg) -- Copper dropped from a seven-week high
on concern that China, the world's largest consumer, may slow
purchases following recent advances. Lead pared gains from a
record, while nickel fell.

China's copper imports dropped 37 percent in May from a month
ago, a second consecutive monthly decline. Imports will continue to
fall through August should copper prices remain high, according to
Nick Moore, an analyst at ABN Amro Holding NV in London.


Read more at Bloomberg Commodities News

European Union Warns Brazil on Environmental Impact of Biofuel Production

(Bloomberg) -- The European Union said Brazil must
protect farms and forests at home to pry open biofuel markets
abroad, seeking to prevent a clean-air campaign from causing
environmental damage.

Brazil, a pioneer in developing biofuels including ethanol,
is counting on export growth as Europe, the U.S. and Asia try to
reduce the use of higher-polluting oil. The EU wants biofuels,
made from crops such as sugar and grain, to make up 10 percent
of transport fuel by 2020 from a planned 5.75 percent in 2010.


Read more at Bloomberg Emerging Markets News

China's CSI 300 Index Slides the Most in a Month; Sinopec, Baoshan Slide

(Bloomberg) -- China's stocks plunged the most in a
month as new share sales heightened concern that funds will be
drained from existing equities and a state agency called on
policy makers to take action to damp short-term speculation.

China Petroleum & Chemical Corp. and Baoshan Iron & Steel
Co. were among the biggest contributors to today's decline.


Read more at Bloomberg Stocks News

Japan MOF Fujii: Rating move reflects solid economy

(Reuters) - "But in general, we believe Japan's sound economic
fundamentals and efforts to restore fiscal health are being
recognised internationally," he said.




Moody's said on Wednesday it had placed Japan's A2 sovereign
rating on review for a possible upgrade, saying Japan had reached
an "inflection point" in efforts to curb its massive government
debt.


Read more at Reuters.com Bonds News

Gold in Asian Trading Advances on Dollar's Weakness; Silver Little Changed

(Bloomberg) -- Gold rose for a second day in Asia,
supported by demand from investors for an alternative to the
weakening dollar and for a hedge against inflation as oil prices
traded near a 10-month high. Silver was little changed.

Gold has gained almost 2 percent in the past week as the
dollar-priced metal has become cheaper to investors holding other
currencies. The dollar traded near a record low against the euro
today and near the lowest in 26 years versus the British pound on
prospects for higher European interest rates.


Read more at Bloomberg Commodities News

Thai Baht Rises Past 34 to the Dollar for First Time Since September 1997

(Bloomberg) -- Thailand's baht rose to the highest in
almost a decade against the dollar on speculation a rally in the
nation's equities was drawing overseas investors.

The baht advanced 0.6 percent to 34.01 against the dollar in
onshore trading as of 2:50 p.m. in Bangkok, according to data
compiled by Bloomberg. The currency earlier reached 33.99,
strengthening past 34 for the first time since September 1997.


Read more at Bloomberg Emerging Markets News

U.K. Stocks Including Lloyds TSB Gain; Shares of Vodafone Decline

(Bloomberg) -- U.K. stocks including Lloyds TSB Group
Plc advanced. Citigroup Inc. suggested investors increase their
holdings in the U.K.'s largest provider of personal loans.

BHP Billiton led shares of mining companies higher.


Read more at Bloomberg Stocks News

Seadrill Jack-Up Oil Rig to Be Out of Service for as Long as Four Months

(Bloomberg) -- Seadrill Ltd., a Norwegian oil-rig
company, said its West Larissa jack-up rig will be out of service
for as long as four months because of damages to its legs.

The rig is on its way to a yard in Singapore for repairs,
Seadrill said today in a statement to the Oslo exchange. The
unit's legs were damaged while it was being positioned for
operations at a platform in Indonesia, the company said.


Read more at Bloomberg Energy News