Friday, July 20, 2007

Dollar Drops to Record Low Versus Euro as Subprime Losses Threaten Growth

(Bloomberg) -- The dollar dropped to a record
low versus the euro and the weakest in 26 years versus the
pound on speculation losses from subprime mortgages will
worsen the U.S. economic outlook.

The U.S. currency fell a sixth straight week against
the euro and pound, while tumbling to a 22-year low versus
the New Zealand dollar and the weakest in 18 years against
the Australian dollar. The dollar may extend its drop next
week as U.S. reports may show declining sales of existing
and new homes.


Read more at Bloomberg Currencies News

Shell ordered to suspend Arctic offshore drilling

(Reuters) - ANCHORAGE, Alaska, July 20 - A U.S. federal
appeals court has ordered Royal Dutch Shell Plc to
suspend oil exploration operations in the Beaufort Sea off the
north coast of Alaska pending a legal challenge being brought
by environmental activists and Alaska native groups.




The ruling deals a serious blow to Shell's plan to drill up
to four exploration wells during the brief Arctic summer to
test a $44 million bet the company placed on the region in
2005. Oral arguments in the case are set for August 14 in San
Francisco.


Read more at Reuters.com Bonds News

SEC suspends "terrorist" watch list Web tool

(Reuters) - SEC Chairman Christopher Cox said the agency would revamp the Web site tool so it would more accurately reflect a company's activities in the countries.




The site generated "exceptional public interest" with more than 150,000 hits from June 25 to July 16, and the SEC received both positive and negative comments about it, Cox said in a statement.


Read more at Reuters.com Government Filings News

UPDATE 2-US regulators agree on Basel II bank plan

(Reuters) - WASHINGTON, July 20 - U.S. regulators said on
Friday they agreed on a capital adequacy plan for the biggest
American banks under the international Basel II framework,
following weeks of mounting pressure from lawmakers and banks.




The Basel II pact aims to ensure that banks worldwide meet
similar requirements for matching their capital reserves to the
risks they face.


Read more at Reuters.com Government Filings News

UPDATE 1-Medicare to reduce US payments for anemia drugs

(Reuters) - Anemia drugs known as erythropoiesis-stimulating agents, or
ESAs, are sold by Amgen Inc. as Epogen and Aranesp and
by Johnson & Johnson as Procrit.




"In response to safety concerns, we are modifying the ESA
monitoring policy to provide greater restrictions on the dosage
amounts of ESAs for which payment is made" for patients with
hemoglobin levels above 13 grams per deciliter, the Centers for
Medicare & Medicaid Services said in a statement.


Read more at Reuters.com Government Filings News

Medicare to reduce U.S. payments for anemia drugs

(Reuters) - "In response to safety concerns, we are modifying the ESA
monitoring policy to provide greater restrictions on the dosage
amounts of ESAs for which payment is made" for patients with
hemoglobin levels above 13 grams per deciliter, the Centers for
Medicare & Medicaid Services said in a statement.





Read more at Reuters.com Government Filings News

US CREDIT-Credit weakness may scuttle McClatchy LBO fears

(Reuters) - But the risk of activism to lift the newspaper publisher's
share price, which is lagging that of its rivals, keeps the
risk of leveraged buyout on the table, and operational
challenges at the company may continue to weigh on its debt.




McClatchy on Thursday said quarterly profit fell 9.3
percent because of weaker newspaper advertising sales, but
expense-cutting helped the company beat Wall Street's
expectations. For details, see [ID:nN19408499]


Read more at Reuters.com Bonds News

UPDATE 1-US regulators agree on Basel II bank plan

(Reuters) - WASHINGTON, July 20 - After weeks of mounting
pressure from lawmakers and banks, U.S. regulators on Friday
announced agreement on a capital adequacy plan for the biggest
American banks under the international Basel II framework.




The Basel II pact aims to ensure that banks worldwide meet
similar requirements for matching their capital reserves to the
risks they face.


Read more at Reuters.com Bonds News

Caraco gets tentative FDA nod for generic sleep disorder drug

(Reuters) - Provigil tablets had U.S. sales of about $753 million for the 12-month period ended March 31, according to health information provider IMS Data, the company said in a statement.






Read more at Reuters.com Government Filings News

TREASURIES-Credit fears, stock losses spur bond rally

(Reuters) - NEW YORK, July 20 - The U.S. Treasury debt market
rallied on Friday, with benchmark yields falling to six-week
lows as investors flocked to government bonds from stocks and
other risky assets on subprime and credit worries.




Technically related buying also fueled the day's gains,
with bond bulls able to push through key levels on heightened
anxiety that subprime mortgage losses would spread to other
markets and eventually shave economic growth, analysts said.


Read more at Reuters.com Bonds News

Bisys Group sets special dividend of $0.15/shr

(Reuters) - In May, Citigroup had agreed to buy Bisys Group for $1.45
billion.





Read more at Reuters.com Mergers News

UPDATE 2-Boots extends loan deadline, to change terms

(Reuters) - LONDON, July 20 - UK health and beauty retailer
Alliance Boots is revising the terms on 9 billion pounds of bank
debt backing its buyout by Kohlberg Kravis Roberts and is
extending the deadline for investors to commit to the deal, one
of the debt arrangers said on Friday.




The stakeholders in the deal have yet to come to a consensus
on the details of the changes, which involve adjustments to the
pricing and the structure, although it is hoped that this will
happen over the weekend, a spokeswoman for Deutsche Bank said.


Read more at Reuters.com Mergers News

European Bonds Surge; Benchmark Yields Drop Most in 3 1/2 Years This Week

(Bloomberg) -- European bonds surged, pushing 10-
year yields down the most in 3 1/2 years this week, as the risk
of owning corporate debt rose to a two-year high and investors
switched into safer government assets.

The benchmark bond yield fell to the lowest in seven weeks
today on concern defaults on U.S. home loans to people with poor
credit histories will spread. Government debt around the world
rallied this week after Bear Stearns Cos. told investors they
weren't likely to get money back from two of its hedge funds
that bet on securities backed by subprime mortgages.


Read more at Bloomberg Bonds News

GLOBAL MARKETS-Stocks sink, US bonds jump on more subprime angst

(Reuters) - NEW YORK, July 20 - Global stocks and riskier
corporate bonds tumbled on Friday as investors scrambled to
get into safe-haven Treasuries amid an unrelenting stream of
worries about the U.S. subprime mortgage market.




U.S. junk bonds took a beating, while the dollar sank to a
record low against the euro and a 26-year trough against
sterling.


Read more at Reuters.com Bonds News

Fed's Poole: Subprime losses due to poor practices

(Reuters) - "I believe we should conclude that this year's markets punished mostly bad actors and/or poor lending practices," Poole said in remarks prepared for delivery to a real estate group.




"As is often the case, the market's punishment of unsound financial arrangements has been swift, harsh and without prejudice," he said.


Read more at Reuters.com Business News

IUE-CWA union plans to terminate Delphi contracts

(Reuters) - "Delphi has not delivered proposals that meet our members'
needs," the union's president, Jim Clark, said. "We are tired
of spinning our wheels in negotiations, while Delphi falls
short of these basic demands."




Under terms of the national contract, the notice allows the
locals to strike on Oct. 13.


Read more at Reuters.com Bonds News

Put-Option Trading on U.S. Bank Shares Surges on Subprime Lending Concern

(Bloomberg) -- Trading in options to sell an
exchange-traded fund tracking U.S. financial shares yesterday
surged to the highest in a year on speculation the subprime
mortgage crisis will further erode bank and broker earnings.

The number of put-option contracts traded on the Financial
Select Sector SPDR Fund rose to 372,247, the most since July 2006
and almost quadruple the average during the prior 20 days,
according to data compiled by Bloomberg. The ETF tracks the
Financial Select Sector Index, whose 92 members include Citigroup
Inc., Bank of America Corp., Goldman Sachs Group Inc. and Bear
Stearns Cos.


Read more at Bloomberg Stocks News

UPDATE 1-Fed's Poole-Subprime losses punished poor lending

(Reuters) - "I believe we should conclude that this year's markets
punished mostly bad actors and/or poor lending practices,"
Poole said in remarks prepared for delivery to a real estate
group.




"As is often the case, the market's punishment of unsound
financial arrangements has been swift, harsh, and without
prejudice," he said.


Read more at Reuters.com Bonds News

Lilly drug cuts some breast cancer risk-FDA staff

(Reuters) - Evista is already approved to treat osteoporosis in women
past menopause. The company is seeking approval to promote the
drug for the reduction in risk of invasive breast cancer in
postmenopausal women with osteoporosis and postmenopausal women
at high risk for breast cancer.




Studies provide less support for the proposed new use to
reduce the chances of invasive breast cancer in postmenopausal
women at high risk, FDA reviewers said.



Read more at Reuters.com Government Filings News

KKR's Banks Postpone Alliance Boots LBO Loans Until Next Week, Banker Says

(Bloomberg) -- Kohlberg Kravis Roberts & Co.'s
banks postponed a deadline to finance the buyout of Alliance
Boots Plc after failing to raise enough demand for the 9 billion
pounds ($18.5 billion) of loans, said a banker involved.

KKR and lenders led by Deutsche Bank AG started offering
the debt to investors three weeks ago and had asked them to
commit no later than today. The underwriting banks are now
giving potential investors until next week to join the loan with
the extra time designed to boost participation, said the banker
on the deal, who declined to be identified because the
discussions are private.


Read more at Bloomberg Bonds News

S. African Rand Gains in Week on Expectations Interest-Rate Gap to Widen

(Bloomberg) -- South Africa's rand advanced for a
fourth week, its best performance in almost a year versus the
dollar, on expectations the interest-rate gap with the U.S. will
widen.

The rand touched its highest in 11 months yesterday, buoyed
by expectations the Reserve Bank will keep raising borrowing
costs and on speculation the U.K.'s Standard Chartered Plc is in
talks to buy South Africa's Nedbank Group Ltd. The dollar held
near a record low against the euro on views slowing economic
growth will prevent the Federal Reserve from raising U.S. rates.


Read more at Bloomberg Currencies News

REFILE-Hugo Boss does not support Permira takeover offer

(Reuters) - FRANKFURT, July 20 - Hugo Boss on Friday declined to support private equity firm Permira's [PERM.UL] takeover offer for the German menswear group.



It said its supervisory and management board members found the offer not very attractive and would not tender their shares. But the members did not give a formal recommendation on the bid.


Read more at Reuters.com Mergers News

Natura Cosmeticos, Tam, Tim Participacoes, Vivo, Weg: Brazil Equity Movers

(Bloomberg) -- Brazil's main stock index fell for the
second time in three days, led by the country's second-biggest
mobile-phone company, Vivo Participacoes SA.

The Bovespa Index of the most-traded stocks on the Sao Paulo
exchange fell 237.20, or 0.4 percent, to 57,887.37 as of 9:30 a.m.
New York time.


Read more at Bloomberg Stocks News

LG Elec shares surge on strong earnings

(Reuters) - "News of Motorola's loss certainly helped LG shares as it highlights its handset margin, which came in higher than competitors," said Kevin Lee, an analyst at Woori Investment and Securities.




The world's fifth-biggest mobile phone maker on Thursday posted a second-quarter net profit of 385 billion won , well above analysts' forecasts. LG had posted a loss of 9.7 billion won a year earlier and a 122.6-billion-won shortfall in the previous quarter.


Read more at Reuters.com Business News

`Overlooked Asset,' Rupee Effect, Harry Potter and the Aftermath: Timshel

(Bloomberg) -- If Rupert Murdoch changed his mind
and bought Dow Jones & Co. in a stock swap, the purchase would
hardly dent News Corp.'s treasury.

The $5 billion that Murdoch has offered for the publisher
of the Wall Street Journal is equivalent to 204 million of his
company's Class A shares, which include voting rights, or 220
million non-voting Class B shares.


Read more at Bloomberg Stocks News

Lincoln Electric buys China-based stick electrodes maker

(Reuters) - The acquisition of Nanjing, which has annual sales of about
$10 million, is not expected to impact Lincoln Electric's
earnings in the first year, it added.





Read more at Reuters.com Mergers News

Journal Register says June ad sales fall

(Reuters) - "While this period's advertising revenues are not
unexpected given the trends we have seen thus far in 2007, we
still believe that the case for improvement in the latter part
of the year for advertising revenue growth remains compelling,"
Senior Vice President and Chief Financial Officer Julie Beck
said in a statement.





Read more at Reuters.com Market News

Kenyan shilling steady vs dollar, banks dominate trade

(Reuters) - The Kenya shilling held steady against the dollar on Friday, in trade dominated by banks, dealers said.

At 1000 GMT, commercial banks quoted the local currency at 67.05/15 to the dollar, the same as Thursday's close.


Read more at Reuters Africa

Niko Resources, Potash, Yamana and Meridian Gold: Canadian Equity Preview

(Bloomberg) -- The following is a list of companies
whose shares may have unusual price changes in Canadian markets.
This preview includes news that broke after markets closed. Symbols
are in parentheses after company names and prices are from the last
close.

The Standard & Poor's/TSX Composite Index rose 42.10, or 0.3
percent, to 14,625.76.


Read more at Bloomberg Stocks News

Brazil Vivo Q2 net loss narrows to 112.8 mln reais

(Reuters) - Vivo is a joint venture owned by Portugal Telecom
and Spain's Telefonica .






Read more at Reuters.com Market News

Whirlpool posts profit, expects US improvement

(Reuters) - ATLANTA, July 20 - Whirlpool Corp. , the world's biggest appliance maker, reported a 77 percent jump in second-quarter profit on Friday, topping estimates, as improved international results outstripped U.S. weakness.



The company backed its prior full-year profit forecast and said it expected performance in North America, its largest market, to improve in the second half as U.S. demand rises.


Read more at Reuters.com Market News

Potash Corp plans $1.6 bln mine in New Brunswick

(Reuters) - The four-year construction of the 2-million-ton project
will be financed using free cash flow and existing credit
facilities, the fertilizer maker said in a statement.




The project also earmarks $100 million for additional
upgraded granular production capability.


Read more at Reuters.com Government Filings News

Virgin Mobile USA files for $506 mln IPO

(Reuters) - The provider of wireless communications services said it
applied for a New York Stock Exchange listing under the symbol
"VM."




The filing did not reveal how many shares the company
planned to sell or the expected price.



Read more at Reuters.com Bonds News

Schlumberger second-quarter profit climbs

(Reuters) - Analysts on average had expected earnings of 96 cents a
share, according to Reuters Estimates.




Read more at Reuters.com Market News