Wednesday, July 11, 2007

Rio shares on trading halt amid Alcan bid reports

(Reuters) - Rio was near a deal to buy Alcan for about $100 per share, or $37 billion, topping Alcoa Inc.'s $28.8 billion offer already on the table, the Wall Street Journal Online reported earlier.




Read more at Reuters.com Hot Stocks News

U.S. Trade Deficit Probably Grew in May as Oil Imports Swamp Export Gain

(Bloomberg) -- The U.S. trade deficit probably
widened in May as a jump in imported oil costs swamped record
exports, economists said before a report today.

The gap in goods and services trade rose 2.6 percent to $60
billion from $58.5 billion in April, according to the median
forecast in a Bloomberg News survey of 71 economists.


Read more at Bloomberg Currencies News

Taiwan's CPC Plans to Shut Ethylene Plant for Maintenance Work in October

(Bloomberg) -- CPC Corp., Taiwan's state refiner,
plans to shut an ethylene plant for maintenance in October, a
company official said.

The plant, capable of making 230,000 metric tons of ethylene
a year from the crude oil distillate naphtha, is scheduled for a
40- to 45-day overhaul starting in October, said the official who
declined to be identified because of company policy. The refiner
hasn't set precise dates for the planned maintenance, he said.


Read more at Bloomberg Energy News

America Movil, Bancolombia, Televisa: Latin American Equity Preview

(Bloomberg) -- The following stocks may make
significant gains or losses in Brazil, Colombia and Mexico
today. Symbols are in parentheses after the company name, and
stock prices are from the last session.

In Brazil, preferred shares are the most commonly traded
class of stock.


Read more at Bloomberg Stocks News

Asian shares rebound on Wall Street; eye BOJ

(Reuters) - Tokyo's Nikkei was up 0.4 percent, led by trading houses such as Marubeni Corp., while a wide range of other shares rose on the back of a rebound in U.S. stocks and a slightly softer yen.




By 0301 GMT, MSCI's broadest index of shares excluding Japan rose 0.8 percent, resuming its climb after slipping 0.8 percent on Wednesday -- its first decline following nine straight sessions of gains.


Read more at Reuters.com Hot Stocks News

Dollar May Weaken to 116 Yen on U.S. Housing Slump, Daiwa's Kameoka Says

(Bloomberg) -- The dollar may weaken 5 percent to
116 yen by year-end on speculation a housing slump will curb
consumption, increasing pressure on the Federal Reserve to lower
interest rates, said Daiwa Institute of Research in Tokyo.

Signs of a weakening economy may prompt traders to place
more bets the Fed will cut rates. The U.S. currency fell to a
record low against the euro yesterday after the Standard & Poor's
500 Index a day earlier posted its worst decline in a month on
concern mortgage losses will worsen a housing slowdown.


Read more at Bloomberg Currencies News

Takeda's Diabetes Pill, Actos, Avoids Heart Risk Linked to Glaxo's Avandia

(Bloomberg) -- Takeda Pharmaceutical Co.'s Actos
diabetes pill may not have the heart-attack risk linked to
GlaxoSmithKline Plc's similar drug, Avandia.

An analysis of Takeda studies, scheduled for completion
this month, may show Actos is free of the cardiac side effect
and could catapult the Takeda drug past Avandia as the world's
best-selling oral diabetes medicine, analysts say. A report by
the Cleveland Clinic in May said Avandia may increase the
chances of heart attacks by 43 percent.


Read more at Bloomberg Exclusive News

UPDATE 2-Sony Ericsson Q2 sales up, profit below consensus

(Reuters) - NEW YORK, July 11 - Sony Ericsson, the world's
fourth-biggest mobile phone maker, posted higher second-quarter
sales on Wednesday but its profit and its average phone sale
prices were below analysts' estimates.




The cellphone venture of Sweden's Ericsson and
Japan's Sony Corp. , known for higher-end music
phones based on its Walkman brand, said it gained market share in
the quarter by selling lower-priced phones that widened its
potential customer base.


Read more at Reuters.com Market News

Yen Little Changed as Bank of Japan Will Probably Leave Rates Unchanged

(Bloomberg) -- The yen was little changed before a
Bank of Japan policy meeting that will probably leave the
benchmark interest rate unchanged at 0.5 percent, the lowest
among major economies.

The currency traded near a record low against the euro as
traders borrow in Japan to fund investments in higher-yielding
assets, known as carry trades. The central bank should consider
risks to economic growth when deciding whether to raise rates,
Chief Cabinet Secretary Yasuhisa Shiozaki said July 10.


Read more at Bloomberg Currencies News

Oil Trades Little Changed After Falling on Gain in U.S. Gasoline Supplies

(Bloomberg) -- Crude oil was little changed in New
York after falling yesterday on a U.S. government report that
showed gasoline stockpiles rose for a second week, easing
concerns about the availability of supplies.

U.S. inventories of the motor fuel climbed 1.14 million
barrels to 205.6 million in the week ended July 6, the Department
of Energy report showed, more than the 825,000 median increase
expected in a Bloomberg News survey of eighteen analysts.
Supplies are now 3 percent below the five-year average.


Read more at Bloomberg Energy News

Daewoo Shipbuilding, Dongkuk Steel Mill, NCsoft: 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 0.2 percent to 1889.96. The Kosdaq
rose 0.6 percent to 820.02. Kospi 200 futures expiring in
September lost 0.6 percent to 240.85, while the underlying index
slipped 0.2 percent to 240.46.


Read more at Bloomberg Stocks News

UPDATE 1-Resources Connection quarterly profit rises

(Reuters) - The company declared a special cash dividend of $1.25 per
share, payable on Aug. 21 to shareholders of record on Aug. 8.




In a statement, the company said its board approved a share
repurchase plan of up to $150 million.


Read more at Reuters.com Market News

UPDATE 1-Calamp forecasts first quarter loss

(Reuters) - CalAmp now sees a first quarter loss in the range of 47
cents to 49 cents, citing a $16 million pre-tax charge,
equivalent to about 41 cents per share share net of tax.




Analysts on average had forecast the company to post a net
loss of 8 cents on revenue of $44.9 million for the quarter,
according to Reuters Estimates.


Read more at Reuters.com Market News

U.S. certifies Virgin America Airlines for service

(Reuters) - Virgin America won regulatory approval of its business plan in May after agreeing to restructure its investor financing -- including millions from Branson's interests -- and promising to replace its chief executive, Fred Reid, to satisfy a U.S. law that limits overseas influence in domestic airlines.




Virgin America will still have a branding and marketing relationship with Branson's Virgin Group, which operates British-based Virgin Atlantic Airways. Some U.S. airlines had opposed Virgin America's entrance, saying Branson would be controlling the airline one way or another.


Read more at Reuters.com Bonds News

Groups attack bank fees on ATM, debit overdrafts

(Reuters) - The overdraft fees are a lucrative source of income for
financial institutions and House Democrats have introduced
legislation that would require them to first inform consumers
before assessing the fees.




Overdraft fees cost Americans $17.5 billion last year, up
from $10.3 billion in 2005, the Center for Responsible Lending
told a House Financial Services subcommittee hearing.


Read more at Reuters.com Government Filings News

Cerberus committed to Chrysler, confident of funding

(Reuters) - ROCHESTER, Mich., July 11 - Cerberus Capital Management Chairman John Snow said on Wednesday that the private equity firm is committed to making Chrysler Group a successful automaker. "We're committed to Chrysler. We're committed to making it an enormous success," Snow said to an audience of about 700 at the Detroit Economic Club.



Cerberus had agreed to buy the majority of automaker DaimlerChrysler's struggling Chrysler Group for $7.4 billion in May.


Read more at Reuters.com Mergers News

U.S. House slashes student lender subsidies

(Reuters) - The House bill and a similar measure in the Senate have been attacked by the $85 billion student-loan industry, but championed by industry critics, including some student groups.




The Bush administration has proposed similar cuts in lender subsidies, but on Tuesday threatened to veto the House bill, saying it would not direct enough funding to student grants and would set up too many costly new programs.


Read more at Reuters.com Bonds News

Hot Topic June same-store sales fall 4 pct

(Reuters) - Net sales at the teen retailer fell 1 percent to $60.9
million for the five weeks ended July 7, the company said in a
statement.





Read more at Reuters.com Market News

Mass. starts bailout fund to aid in subprime crisis

(Reuters) - The new fund will aid roughly 1,000 homeowners with subprime mortgages who are up to 60 days behind on their payments refinance into mortgages they can pay off in the next 40 years at a fixed 7.8 percent.




"Too many of our residents were put into loans they could not afford," Gov. Deval Patrick said, adding: "This innovative mortgage loan program will give some of our most vulnerable citizens a fighting chance to keep their homes."


Read more at Reuters.com Bonds News

UPDATE 1-Sallie Mae says buyers believe takeover threatened

(Reuters) - Sallie Mae in April accepted a takeover proposal from private equity firms J.C. Flowers & Co. and Friedman Fleischer & Lowe, as well as JPMorgan Chase & Co. and Bank of America Corp. .




On Wednesday, Sallie Mae said the acquiring group said it believes that current legislative proposals before the U.S. House of Representatives and U.S. Senate "could result in a failure of the conditions to the closing of the merger to be satisfied."


Read more at Reuters.com Bonds News

Gander Mountain shares rise as decks cleared for online foray

(Reuters) - Gander Mountain was unable to sell anything, be it through catalogs or on their Web sites, as Cabela's had gained ownership of their trademark over a decade ago, Friedman Billings Ramsey analyst Jeffrey Sonnek said by phone.




"Now that they have won the trademark back, you can expect them to get moving with an online presence in the near term," Sonnek added.


Read more at Reuters.com Hot Stocks News

UPDATE 1-Fremont to stop Mass. foreclosures for 90 days

(Reuters) - Martha Coakley, Massachusetts' attorney general, said her
office had reached a preliminary agreement in which the
California savings and loan will stop foreclosures on over
2,000 Massachusetts loans that the company services to give
state officials time to review all transactions.




"No foreclosures can occur until the Attorney General's
Office has been provided with documentation for each delinquent
loan and a 90-day period to review each transaction," Coakley
said in a statement.


Read more at Reuters.com Bonds News

AOL settles with states over cancellation complaints

(Reuters) - Under the agreement, AOL will change its policy and refund customers who have complained of unauthorized charges for the Internet service. The settlement also covers other consumer complaints about billing practices.




AOL will pay the states $3 million for costs and fees.


Read more at Reuters.com Government Filings News

US STOCKS-Oil sector, financials lift stock indexes

(Reuters) - Shares of Exxon Mobil Corp. , up 0.3 percent at
$86.77, also benefited from Lehman Brothers' increase in the
stock price target. U.S. crude oil futures rose 4 cents
to $72.85 a barrel.




The S&P index of financial shares rose 0.4
percent, reversing Tuesday's drop of 2.2 percent, its worst
decline since mid-March.


Read more at Reuters.com Bonds News

Moody's May Cut $5 Billion of CDOs Backed by Subprime Mortgage Securities

(Bloomberg) -- Moody's Investors Service may cut $5
billion of collateralized debt obligations after lowering the
ratings of the subprime mortgages that make up the securities.

A downgrade would affect 184 pieces of 91 CDOs, representing
about 3.6 percent of rated CDOs containing asset-backed
securities, Moody's said in a statement today. Moody's yesterday
sliced ratings on $5.2 billion of subprime bonds that back the
CDOs.


Read more at Bloomberg Bonds News

European Stocks Decline; Barclays, Siemens, Royal Dutch Shell Lead Drop

(Bloomberg) -- European stocks fell for a second
day, led by banks and exporters, on concern that mounting U.S.
mortgage losses will hamper the world's biggest economy and slow
global expansion.

Barclays Plc, the U.K.'s third-largest bank, and engineering
company Siemens AG led declines. Royal Dutch Shell Plc retreated
after Goldman, Sachs & Co. recommended investors sell the oil
producer's shares.


Read more at Bloomberg Stocks News

Yen Drops Versus Euro as Advance in Stocks Signals Return to Risky Assets

(Bloomberg) -- The yen fell versus the euro, dollar
and a dozen other major currencies as strength in U.S. stocks
signaled investors are returning to risky assets.

Investors sold the yen as they resumed so-called carry
trade bets, where they borrow in Japan to purchase securities in
countries where interest rates are higher. The yen gave up gains
posted earlier today and yesterday when investors fled risky
trades following Moody's Investors Service's move to cut ratings
on $5.2 billion of bonds backed by U.S. subprime mortgages.


Read more at Bloomberg Currencies News

Florida to introduce tough greenhouse gas targets

(Reuters) - Gov. Charlie Crist was expected to sign executive orders at
a global warming conference in Miami this week setting new
emissions targets for power companies, automobiles and trucks,
toughen conservation goals for state agencies and require
state-owned vehicles to use alternative fuels.




Florida would adopt many tough pollution standards set by
California and mimicked by other states, which have implemented
their own such regulations because Washington has failed to
pass national laws. President George W. Bush has also rejected
the international Kyoto agreement on reducing greenhouse gas
emissions.


Read more at Reuters.com Government Filings News

Treasuries Decline First Time in Three Days as Demand for Safety May Ease

(Bloomberg) -- Treasuries fell for the first time
in three days as U.S. stocks advanced, suggesting demand for the
safety of government debt may ease.

Investors sold bonds as Federal Reserve Bank of
Philadelphia President Charles Plosser said the housing slump is
unlikely to have large ``spillovers'' into the broader economy.
Ten-year note yields earlier dropped to the lowest in more than
a month after Moody's Investors Service yesterday cut the
ratings on $5.2 billion of bonds backed by subprime mortgages.


Read more at Bloomberg Bonds News

Castro says Cuba still facing hardships

(Reuters) - "It made my hair stand on end ... Where on earth did this
brute come from," he wrote.




Castro said the "special period," a euphemism for the dire
straits Cuba lived through after the collapse of the Soviet
Union in 1991, had "eased" but was not over due to record high
world prices for oil.


Read more at Reuters.com Bonds News

Pessimism on U.S. Stocks Rises the Most Since 2004, Newsletter Survey Says

(Bloomberg) -- Pessimism on U.S. stocks among
newsletter writers jumped by the most since August 2004 last
week, according to a survey by Investors Intelligence.

The number of bearish writers increased to 21.3 percent from
18 percent the prior week, according to New Rochelle, New York-
based Investors Intelligence. The Standard & Poor's 500 Index
rose 1.8 percent during the five-day period ended July 6, putting
the equity benchmark 0.6 percent away from its June 4 record.


Read more at Bloomberg Stocks News

UPDATE 1-Bush sees U.S. deficit falling to $205 billion

(Reuters) - WASHINGTON, July 11 - President George W. Bush
will estimate that the U.S. budget deficit for fiscal year 2007
will come in at $205 billion, a drop from last year, U.S.
administration officials said on Wednesday.




The deficit was $248 billion last year. The fresh estimate
in the White House "midsession review" revises the 2007
forecast downward from the February estimate that put it at
$244 billion.


Read more at Reuters.com Bonds News

Dendreon says SEC begins informal inquiry related to Provenge

(Reuters) - The inquiry also covers Dendreon's marketing application for Provenge, the U.S. Food and Drug Administration's review of the vaccine and related correspondence to and from the company from Jan. 1, the company said in a filing on Tuesday. In May, the biotechnology company said the FDA issued an "approvable letter" for Provenge but wanted additional clinical data and more information about chemistry, manufacturing and controls.



The company said it intends to fully cooperate with the SEC.


Read more at Reuters.com Government Filings News

UPDATE 1-Mercantile Bank posts lower Q2 profit, shares fall

(Reuters) - The holding company of Mercantile Bank of Michigan said it
earned $2.2 million, or 26 cents a share, for the quarter, a
fall of 56.5 percent from last year.




The company said it incurred a one-time charge of $1.2
million associated with the retirement of its former Chief
Executive Gerald Johnson.


Read more at Reuters.com Market News

TREASURIES-Bonds slip in technical trade but subprime lingers

(Reuters) - Earlier this week, Treasuries gained as worries about the
performance of mortgage-related securities sparked a sell-off
in riskier assets such as stocks and non-government bonds.




"We went back to the old highs of 4.98 percent on
10-year notes. Technically we are selling off because of that,"
said Thomas di Galoma, head of U.S. Treasury trading with
Jefferies & Co. in New York.


Read more at Reuters.com Bonds News

Leveraged Buyout Credit Quality at Nine-Month Low, Loan Derivatives Show

(Bloomberg) -- Investor confidence in the ability
of companies to repay debt used to finance leveraged buyouts
fell to the lowest in at least nine months in Europe as lenders
shun risky assets.

The iTraxx LevX Index of credit-default swaps on loans to
35 European companies owned by buyout firms from Blackstone
Group LP in New York to London-based Apax Partners Worldwide LLC
fell to 97.75, the lowest since the index started last October,
according to data compiled by Bloomberg. The LevX reached a high
of 101.53 in February and traded at 98.76 yesterday.


Read more at Bloomberg Bonds News

Baker Hughes, Snith Downgraded at Merrill Lynch on Slower Growth Prospects

(Bloomberg) -- Baker Hughes Inc. was downgraded at
Merrill Lynch & Co., which said growth is slowing at the world's
third-largest oilfield-services provider and the stock is no
longer inexpensive after an 18 percent gain this year.

Analyst Alan Laws lowered his rating to ``neutral'' from
``buy'' for the first time since initiating coverage in October
2005. The analyst is the third-most accurate on Baker Hughes out
of 25 surveyed on earnings accuracy, according to Starmine.com.


Read more at Bloomberg Stocks News

Lula Prepares Brazil Tax-Overhaul Plan Aimed at Stopping Cheats, Smugglers

(Bloomberg) -- In a parking lot above the Parana
River, 4,500 seized vehicles testify to the risks Brazilians take
to avoid their country's tax burden, the heaviest in Latin
America.

The trucks and cars baking in the tropical sun were
confiscated while crossing the border from Paraguay on the nearby
Friendship Bridge. Drivers on the span get ample warning of the
penalties for smuggling, yet Paraguay's low taxes induce
thousands to try. Brazil's custom officials will give most of the
forfeited vehicles to schools, hospitals and towns.


Read more at Bloomberg Emerging Markets News

U.S. Stock-Index Futures Rise; Yum! Brands, Genentech Gain Before Earnings

(Bloomberg) -- U.S. stock-index futures advanced
as investors speculated that second-quarter earnings will beat
analysts' estimates.

Genentech Inc., the world's largest maker of cancer
medicines, and Yum! Brands Inc. gained before reporting
results. Chaparral Steel Co. jumped after Gerdau Ameristeel
Corp., the U.S. unit of Latin America's biggest steelmaker,
agreed to buy the company for $4.22 billion.


Read more at Bloomberg Stocks News

US STOCKS-Futures slip as U.S. subprime worries spread

(Reuters) - NEW YORK, July 11 - U.S. stock futures slipped on
Wednesday as signs of a worsening impact from the U.S. housing
slump sent global equities lower and investors fled stocks and
other riskier assets for the safety of government bonds.




But bargain-hunting after Tuesday's sell-off, a decline in
oil prices and news of large takeover in the steel industry
could help Wall Street to recover, analysts said.


Read more at Reuters.com Bonds News

Canada's Dollar Falls as Investors Reduce Bets on Interest-Rate Increases

(Bloomberg) -- The Canadian dollar fell the most in
more than a week as investors pared bets on the future interest-
rate increases by the Bank of Canada.

The currency has dropped from a 30-year high set this week
after the central bank yesterday raised its benchmark lending
rate to 4.50 percent and said ``some modest'' further increase
in rates may be needed. Investors have been betting on a series
of rate boosts as inflation remains higher than the Bank of
Canada's target.


Read more at Bloomberg Currencies News

US STOCKS-Futures flat as housing worries linger

(Reuters) - News of Gerdau Ameristeel Corp.'s $4.22
billion takeover of Chaparral Steel Co could offer
support for the stock market.




In addition, retreating oil prices and the dollar's decline
were seen boosting overseas earnings of U.S. companies.


Read more at Reuters.com Bonds News

Zimbabwe tightens price controls amid panic buying

(Reuters) - Zimbabwe has imposed tight profit margins for businesses, stepping up a price rollback programme that has led to empty store shelves, long petrol queues and renewed fears of a total economic collapse.

President Robert Mugabe ordered that prices for a wide range of foodstuffs and consumer items be slashed two weeks ago, accusing businesses of raising prices as part of an effort by Western opponents to overthrow his 27-year-old government.


Read more at Reuters Africa

Citigroup to boost number of Japan branches 40 pct

(Reuters) - Three years after Japanese regulators forced Citigroup to shut down its private banking business due to rules violations, the world's largest financial firm is attempting to rebrand itself for the Japanese market.




This month it relaunched its local unit, Citibank Japan Ltd., as a Japanese bank, becoming the first foreign lender to receive a license to operate as a local entity.


Read more at Reuters.com Business News

Danone already owns 26 pct of Numico: filing

(Reuters) - A trader in the Netherlands said that Danone had most likely bought Numico shares on the open market, given the high volumes recorded on Tuesday.




More than 21 million shares in Numico traded hands daily, on average, in the last five days compared with a daily average of 3 million in the last three months, according to Reuters data.


Read more at Reuters.com Business News

U.S. Stock-Index Futures Rise; Genentech, Yum!, Exxon Mobil Gain in Europe

(Bloomberg) -- U.S. stock-index futures advanced as
investors shrugged off concern about the housing market, and bet
that second-quarter earnings will beat analyst estimates.

Genentech Inc., the world's biggest maker of cancer
medicines, and Yum! Brands Inc. gained before reporting results.
Exxon Mobil Corp., the world's biggest oil company, climbed in
Europe after Bear, Stearns & Co. raised its earnings estimates
for the biggest oil companies.


Read more at Bloomberg Stocks News

Impala Platinum Pay Talks With Union Fail, State Mediation Is Sought

(Bloomberg) -- Impala Platinum Holdings Ltd.'s pay
talks with a South African labor union failed after workers
refused to accept a two-year agreement offered by the company, a
union official said. State mediation will now be sought.

While willing to accept Impala's offer to boost pay 8
percent to 10 percent this year, workers were unhappy with the
offer for a 7 percent to 8 percent raise next year depending on
job grade, Eddie Majadibodu, a negotiator for the National Union
of Mineworkers, said today in an interview from Rustenburg,
northwest of Johannesburg.


Read more at Bloomberg Emerging Markets News

HSBC, Allied Irish Lead Retreat in U.K., Irish Stocks; Shell, BP Decline

(Bloomberg) -- U.K. stocks fell for a second day, led
by HSBC Holdings Plc and HBOS Plc on concern losses in subprime
mortgages in the U.S. will erode economic and earnings growth.

Royal Dutch Shell Plc and BP Plc dropped after Goldman,
Sachs & Co. downgraded the shares and crude oil retreated.


Read more at Bloomberg Stocks News

Nikkei down 1.1 pct on Wall St fall, stronger yen

(Reuters) - Investors sold a wide range of stocks including high-tech exporters such as Sony Corp. that had led the market's recent rally.




Shares of Millea Holdings Inc. and other insurers also declined on concerns that a fall in bond yields would hurt income from investments in government bonds. Insurers invest much of the money they collect from policy holders in bonds.


Read more at Reuters.com Hot Stocks News

European stocks fall as US subprime worry grows

(Reuters) - European shares opened lower on Wednesday as growing concern over the U.S. subprime mortgage market caused U.S. and Asian stocks to tumble and as the oil price hovered near an 11-months high.

Among major movers, BSkyB rose 2.3 percent after saying it had added 90,000 net new customers in the three months to the end of June, up 17 percent year-on-year.


Read more at Reuters Africa

Europe Bonds Gain for Third Day as S&P, Moody's Spur U.S. Subprime Concern

(Bloomberg) -- European bonds advanced for a third
day, the longest run of gains this month, on concerns about the
U.S. subprime mortgage sector prompted investors to seek the
safety of government debt.

Yields on benchmark 10-year bunds fell the most in a year
yesterday after Standard & Poor's said it may cut credit ratings
on $12 billion of bonds backed by subprime mortgages. Moody's
Investors Service later in the day lowered ratings on $5.2
billion of debt backed by home loans.


Read more at Bloomberg Bonds News