Oil Rises to Record Close of $78.21 on Speculation Demand to Exceed Supply

(Bloomberg) -- Crude oil rose to a record close of
$78.21 a barrel in New York on speculation demand will outpace
supply as refiners increase fuel production.

Bets on rising prices by hedge funds and other speculators
rose to a record earlier this month, according to U.S. Commodity
Futures Trading Commission data. Global demand will climb 1.7
percent in 2008, showing no sign of slowing because of high
prices, a Deutsche Bank AG report showed. A government report
tomorrow may show U.S. oil supplies fell for a fourth week.


Read more at Bloomberg Commodities News

Former Amaranth head energy trader sues FERC

(Reuters) - FERC informed Hunter on July 20 that it intended to bring
an enforcement action against him for "alleged manipulation of
settlement prices of natural gas futures," according the suit.




But Hunter said in the suit that FERC has jurisdiction only
in regulating the physical wholesale energy markets, not the
futures markets, which is the jurisdiction of the Commodity
Futures Trading Commission, or CFTC.


Read more at Reuters.com Mergers News

Oil Is Steady After Nearing a Record in London on Reduced North Sea Output

(Bloomberg) -- Crude oil was little changed after
approaching a record in London, as a damaged pipeline in the
North Sea curtailed production.

Chevron Corp. and ConocoPhillips cut North Sea output last
week because BP Plc shut an undersea pipeline. Hedge-fund
managers and other speculators increased their net-long position
in New York oil futures, bets on rising prices, to the highest
in at least 13 years, according to U.S. Commodity Futures
Trading Commission data.


Read more at Bloomberg Energy News

Copper Futures Fall as Summer Holidays Curb Industrial Demand; Zinc Drops

(Bloomberg) -- Copper prices fell in Asia as demand
waned during the northern hemisphere summer, traditionally a
weak period for demand due to holidays.

The slowdown ``makes for a weaker physical market, which
weighs on the futures market,'' Wu Jian Jian, an analyst at
Zhejiang Yongan Futures, said. ``In the same way, the weakness
in Shanghai spilled over to the LME.''


Read more at Bloomberg Commodities 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

China Prepares Stock-Index Futures to Help Investors Hedge Financial Risks

(Bloomberg) -- China published rules for stock-index
futures, paving the way toward financial products that will let
investors hedge risk in a market that's almost doubled this year.

The China Financial Futures Exchange said investors are
required to put up 10 percent of a contract's value to buy, sell
or short-sell CSI 300 Index-based futures, according to rules on
the exchange's Web site. No date was given for when the products
will start trading.


Read more at Bloomberg Stocks News

U.K. Pound Falls Against Dollar, Euro on View Yesterday's Rally Excessive

(Bloomberg) -- The U.K. pound declined against the
dollar as traders judged its rise to an eight-week high yesterday
was excessive.

The pound broke through the $2 barrier yesterday for the
first time since May 2 as investors bet Bank of England Governor
Mervyn King will this week tell lawmakers interest rates need to
rise further to cap inflation. Futures traders have raised bets
the U.K. currency will rise, pushing so-called net long positions
to a four-month high.


Read more at Bloomberg Currencies News

European 10-Year Bonds Drop for Second Day Before German Confidence Report

(Bloomberg) -- European bonds fell for a second day
before a report that's expected to show business optimism in the
region's largest economy is buoyant, underpinning the case for
the European Central Bank to keep lifting interest rates.

The drop in debt pushed 10-year yields to near a five-year
high as investors reassess the outlook for global borrowing
costs. An index tomorrow is likely to show German business
confidence held near the highest on record this month. Futures
show traders are adding to bets the ECB will raise rates twice
more this year.


Read more at Bloomberg Bonds News

Coffee in New York Declines as Concern of Imminent Frost Recedes in Brazil

(Bloomberg) -- Coffee fell in New York, erasing
earlier gains, after weather forecasters suggested there will be
no damaging cold this month in the main coffee-growing regions in
Brazil, the world's biggest producer.

Brazilian states including Parana, Minas Gerais and Sao
Paulo will receive no frost through the end of June, said
Drew Lerner, senior agricultural meteorologist for World Weather
Inc. in Overland Park, Kansas. Futures in New York have risen 13
percent since the start of May on concerns freezing temperatures
will affect Brazil's coffee crop.


Read more at Bloomberg Commodities News

Shanghai copper up 2.9 percent, supply woes support

(Reuters) - Shanghai copper rose almost 3 percent on Monday, with the market shrugging off warnings from China that it will take further steps to cool the economy, and instead focused on threats to supply and limited world stocks.

The most-active August copper contract on the Shanghai Futures Exchange rose 2.9 percent to 64,930 yuan a tonne at the close, from 63,130 yuan on Friday.


Read more at Reuters Africa

Hong Kong to simplify licensing of hedge funds

(Reuters) - Hong Kong's Securities and Futures Commission said the
changes include speeding up the licensing process for some U.S.
and UK-registered hedge fund managers, and exempting some staff
at hedge funds from having to take exams.




Hong Kong is home to more hedge fund assets than any other
Asian city. But a growing number of hedge fund managers are
choosing to set up in Singapore, where authorities have sought
to attract the industry with accommodative regulation.


Read more at Reuters.com Government Filings News

Sugar Rises After Slump in Prices to Lowest in Two Years Triggers Buying

(Bloomberg) -- Sugar in New York rose after a price
slump to a two-year low spurred buying and a holiday yesterday
in Brazil, the world's largest producer, reduced sales.

Futures on June 5 fell to 8.52 cents a pound, the lowest
since May 2005, as India, the second-biggest producer, prepares
to export raw sugar for the first time in the year starting in
October. Financial markets in Brazil were closed yesterday for
the Corpus Christi holiday and a slow pace of sales continued
today, said Alex Oliveira, vice president at Fimat USA LLC.


Read more at Bloomberg Commodities News

Coffee Falls as Brazil and Colombia Sell Beans Following Three-Week Rally

(Bloomberg) -- Coffee fell in New York after Brazil
and Colombia sold beans to take advantage of a three-week rally.

Futures had jumped 15 percent since May 1 to a three-month
high on June 4. Brazil, the world's biggest coffee grower, and
Colombia, the third-largest, are locking in prices after some
sales by speculators, said George Saffadi, a trader with Olam
Americas Inc. in White Plains, New York.


Read more at Bloomberg Commodities News

Copper Prices Fall on Concern China's Imports to Slow as Demand Weakens

(Bloomberg) -- Copper prices fell for a third day in
Shanghai on concern that buying by China, the world's biggest
consumer of the metal, may slow following a surge in imports this
year and on expectations of weaker demand as summer approaches.

China's imports probably fell by at least 48 percent to
100,000 metric tons in May, the biggest monthly drop in three
years, after inventories increased and prices soared, traders and
analysts, including Xue Feng at Maike Futures Co., said on June 6.
The northern hemisphere summer is a traditionally weak period for
copper consumption because of holidays.


Read more at Bloomberg Commodities News

Copper Declines for Third Day on Speculation China's Demand May Tumble

(Bloomberg) -- Copper fell for the third-straight
day in New York on speculation that demand will slacken in
China, the world's biggest consumer of the metal.

China's imports in May might have dropped by the most in
three years after inventories increased and prices soared,
traders and analysts including Xue Feng at Maike Futures Co.
said. Stockpiles monitored by the Shanghai Futures Exchange more
than tripled this year as imports reached a record. Before
today, the price of copper climbed 19 percent in 2007.


Read more at Bloomberg Commodities News

Treasuries Decline; Yield Reaches 5 Percent for First Time Since August

(Bloomberg) -- U.S. Treasuries fell, pushing the 10-
year yield above 5 percent for the first time since August, as
traders added to bets interest rates will rise around the world.

Two-year yields also gained after New Zealand policy makers
unexpectedly raised rates today and the European Central Bank
lifted its benchmark to a six-year high yesterday. Futures
traders added to wagers today on further increases by the ECB
and the Bank of England, and reduced bets the Federal Reserve
will need to lower borrowing this year to fuel economic growth.


Read more at Bloomberg Bonds News

Shanghai copper off 0.9 pct on Chile pay agreement

(Reuters) - Shanghai copper eased nearly 1 percent on Monday after workers at a large copper mine in Chile voted to accept an early pay offer.

The most-active August contract on the Shanghai Futures Exchange fell 610 yuan or 0.92 percent to 65,520 yuan a tonne at 0101 GMT.


Read more at Reuters Africa

TREASURIES-Slip in Asia as chance of Fed rate cut seen fading

(Reuters) - Futures now reflect a less than 20 percent chance of the Fed
trimming rates by a quarter-point from the current 5.25 percent
later in the year after having priced in the possibility of two
cuts in 2007 a little more than a month ago.




Adam Mackillop, head of U.S. rates trading at Barclays
Capital in Tokyo, said the flows in Asia have become more two-way
as some investors pare back their holdings in the sell-off,
rather than the steady buying that usually predominates.


Read more at Reuters.com Bonds News

Italian Stocks Rise; UniCredit, Assicurazioni Generali, Monte Paschi Gain

(Bloomberg) -- Italian stocks advanced, led by
UniCredit SpA and Assicurazioni Generali SpA. Banca Monte dei
Paschi di Siena SpA shares also climbed.

The S&P/MIB Index added 141, or 0.3 percent, to 43,160 at
9:10 a.m. in Milan, as 28 stocks increased, 10 fell and two were
unchanged. Futures expiring in June gained 126, or 0.3 percent,
to 43,240.


Read more at Bloomberg Stocks News

Monte Paschi, Pop. Dell'Emilia, Edison, Pirelli: Italian Equity Preview

(Bloomberg) -- The following stocks may rise or fall
in Italy. Stock symbols follow company names and prices are from
the last close.

The S&P/MIB increased 79, or 0.2 percent, to 43,019. The
number of declining shares outweighed those advancing. The gauge
dropped 3 percent last week, its worst performance since the five
days ended March 2. Futures expiring in June gained 73, or 0.2
percent, to 43,150.


Read more at Bloomberg Stocks News