GM seen posting profit, analysts remain cautious

(Reuters) - Still, analysts remained cautious about the weakness in the
U.S. housing market, which could weigh on GM's results through
the remainder of the year, and about sustainable profitability
in its North American operations.




Analysts, on average, expect GM to post on Tuesday a
second-quarter net profit of $1.10 a share, compared with a net
loss of $5.98 a share a year earlier. The per-share profit
estimates range from $1.00 to $1.28.


Read more at Reuters.com Bonds News

Japan's 10-Year Bonds Have Biggest Weekly Gain Since August as Stocks Drop

(Bloomberg) -- Japan's 10-year bonds had the
biggest weekly gain since August after a slump in global stocks
and corporate debt spurred demand for the relative safety of
government securities.

Benchmark bond yields fell to the lowest in eight weeks on
speculation a U.S. housing slump will slow growth in the biggest
market for Japanese exporters, making it harder for the Bank of
Japan to justify raising interest rates. A government report
today showed consumer prices declined for a fifth month.


Read more at Bloomberg Bonds News

Japanese Bonds Gain for Third Day as Stock Decline Spurs Flight to Safety

(Bloomberg) -- Japanese bonds rose, pushing 10-year
yields to the lowest in more than seven weeks, after a slump in
global stocks and corporate debt spurred demand for the relative
safety of government securities.

Benchmark bonds headed for a second weekly advance on
speculation a U.S. housing slump will slow growth in the biggest
market for Japanese exporters, making it harder for the Bank of
Japan to justify raising interest rates. A government report
today showed consumer prices fell for a fifth month.


Read more at Bloomberg Bonds News

New home sales fall, durable goods orders weak

(Reuters) - Major U.S. stock indexes ended down more than two percent on signs of further deterioration in the U.S. housing market, a jump in oil prices and a worsening climate for financing corporate takeovers. That caused the New York Stock Exchange to impose curbs on computer program trading.




The Dow Jones Industrial Average closed down 311 points and the Standard & Poor's 500 Index closed down 35 points.


Read more at Reuters.com Business News

Copper Futures Drop in New York on Signs That U.S. Demand May Remain Weak

(Bloomberg) -- Copper fell for a third session in
New York, the longest string of declines in more than a month, on
signs demand may weaken in the U.S., the world's second-largest
consumer of the metal.

Permits for new U.S. home construction fell 7.5 percent in
June to an annual rate of 1.406 million, from 1.52 million in
May, the Commerce Department said today. Builders are the biggest
users of copper in the U.S. The metal has fallen 12 percent since
reaching a high in May 2006 as a U.S. housing slump slashed
demand.


Read more at Bloomberg Commodities 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

Australian Dollar Drops Most in Two Weeks Against Yen as Carry Trades Cut

(Bloomberg) -- The Australian dollar dropped the
most in two weeks against the yen as a drop in U.S. stocks
prompted investors to pare investments funded by loans in the
Japanese currency.

The local dollar declined for a second day after the
Standard & Poor's 500 Index fell the most in a month on concern
mortgage defaults will worsen a U.S. housing slowdown. Japan's
0.5 percent overnight lending rate has prompted investors to
borrow yen to take advantage of Australia's 6.25 percent interest
rate. The so-called carry trade has helped the currency gain 11
percent versus the yen this year.


Read more at Bloomberg Currencies News

Dollar down broadly on US financial sector woes

(Reuters) - The dollar fell broadly and the yen and Swiss franc rallied on Monday as concerns about U.S. housing market woes spilling into the wider economy dented risk appetite and led investors to buy low yielding currencies.

Concerns about the U.S. subprime mortgage market -- amplified in recent week by trouble at two Bear Stearns-managed hedge funds -- have dented investors' appetite for risk.


Read more at Reuters Africa

U.S. construction spending up 0.9 percent in May

(Reuters) - Spending on private homebuilding, however, fell 0.8 percent
to a seasonally adjusted $549 billion annual rate, the 15th
consecutive monthly decrease as U.S. housing market troubles
continue.




On the non-residential side, private construction spending
was up 2.7 percent in May. Public spending was up 2.2 percent,
the department said.


Read more at Reuters.com Economic News

Japanese Exporter Shares May Rise as Yen Ends Advance; Sony Seen Gaining

(Bloomberg) -- Japan's exporter stocks may advance,
helping the Nikkei 225 Stock Average rebound from a four-day
slide, after the yen reversed a strengthening trend and some U.S.
investment houses said they see few risks of widespread turmoil
in credit markets.

Sony Corp. lost 4.4 percent during the past three sessions
as the yen strengthened and concerns about the U.S. housing
market spread. Honda Motor Co. fell 1.6 percent.


Read more at Bloomberg Stocks News

Brazil Real Declines on Worry About CPI Target, U.S. Hedge Funds, Housing

(Bloomberg) -- Brazil's currency fell as a slowing
U.S. housing market and concerns with losses in subprime
mortgages increased aversion to riskier, emerging market assets.

``The scenario in the U.S. is worrisome, with news about
the Bear Stearns funds starting to damp market mood last week,
and now worse-than-expected housing data,'' said Luiz Carlos
Barroso Simao, partner and chief strategist at Questus Asset
Management in Rio de Janeiro.


Read more at Bloomberg Currencies News

Bear Stearns not planning to bail out second fund

(Reuters) - NEW YORK, June 26 - Bear Stearns Cos. Inc. does not plan to bail out a second struggling fund that invests in repackaged debt securities, a source familiar with the matter said on Tuesday, while a company the investment bank set up to invest in the securities withdrew plans for an initial public offering.



The hedge fund is one of two managed by Bear Stearns that are suffering from investments in repackaged subprime mortgages, which have suffered from rising defaults as a downturn in the U.S. housing market has proven deeper and lasted longer than expected.


Read more at Reuters.com Bonds News

Lennar posts quarterly loss on lower revenue

(Reuters) - Analysts on average had forecast earnings of 1 cent a share, according to Reuters Estimates.




The U.S. housing market has been suffering from a steep downturn for more than a year, as high prices and climbing interest rates have repelled prospective buyers. Speculators, who bought homes to quickly sell, also have retreated from the market, unloading their investments.


Read more at Reuters.com Business News

Asian Stocks Decline on Concern Over U.S. Home Sales; China Shares Plunge

(Bloomberg) -- Asian shares fell, led by Sony Corp.
and BHP Billiton Ltd., on concern figures this week will show a
drop in U.S. home sales, signaling declining demand in the
region's largest export market.

``Stocks globally take a fall every time there's more bad
news on U.S. housing-related or lending data because there's a
threat that this may spill over into other parts of the
economy,'' said Eric Betts, a strategist at Nomura Australia Ltd.
in Sydney. ``This wouldn't be good for companies that depend on
the U.S. consumer.''


Read more at Bloomberg Stocks News

Asian Shares Decline on Concern Over U.S. Home Sales; Taiwan Stocks Climb

(Bloomberg) -- Asian shares fell, led by Toyota
Motor Corp. and BHP Billiton Ltd., on concern figures this week
will show a drop in U.S. home sales, signaling declining demand
in the region's largest export market.

``Stocks globally take a fall every time there's more bad
news on U.S. housing-related or lending data because there's a
threat that this may spill over into other parts of the
economy,'' said Eric Betts, a strategist at Nomura Australia Ltd.
in Sydney. ``This wouldn't be good for companies that depend on
the U.S. consumer.''


Read more at Bloomberg Stocks News

Treasuries Gain for Fourth Day, Longest Rally Since February, on Housing

(Bloomberg) -- Treasuries rose for a fourth day,
the longest rally since February, before a report on mortgage
applications that may add to evidence of a housing slowdown.

Yields on benchmark 10-year notes have fallen 11 basis
points this week as reports showed house construction declined
for the first time in four months and confidence among
homebuilders dropped to the lowest since 1991. Bonds have risen
on speculation a slowdown in the U.S. housing market will keep
the Federal Reserve from increasing interest rates.


Read more at Bloomberg Bonds News

Euro Falls From All-Time High Versus Yen on Declining German Confidence

(Bloomberg) -- The euro fell from an all-time high
against the yen after a report showed investor confidence in
Germany unexpectedly declined.

The euro weakened for the first time in a week versus the
Japanese currency as optimism regarding Europe's economy waned
among analysts. The dollar accelerated its decline against the
yen after a government report showed U.S. housing starts last
month fell while building permits increased.


Read more at Bloomberg Currencies News

Oil stocks push European share indexes higher

(Reuters) - Europe's main share indexes rose in early trade on Tuesday as oil majors gained on the back of higher oil prices and market players awaited key U.S. housing data.

Among major movers, Tesco fell 2.4 percent after the world's fifth-largest retailer reported a slowdown in its core UK sales in the first quarter, dragging the DJ Stoxx European retail sector index down 0.7 percent.


Read more at Reuters Africa

GLOBAL MARKETS-Stocks stall amid China volatility, yen soft

(Reuters) - LONDON, June 5 - Global stocks stalled after
hitting a record peak for a fourth day running on Tuesday as
wild trade in China shares sounded a note of caution, but still
buoyant risk appetite pushed the yen to fresh lows.




The dollar extended losses while U.S. Treasuries edged off
their lows after comments on the U.S. housing market and economy
from Federal Reserve chairman Ben Bernanke.


Read more at Reuters.com Economic News

Fremont sells loan unit for $1.9 billion

(Reuters) - The deal could eventually lead to the investor group owning 20 percent of the outstanding stock of the company, one of several lenders to less credit-worthy home buyers who have scrambled to overcome rising defaults and late payments amid a U.S. housing slowdown.




Santa Monica, California-based Fremont also said the buyer in its previously disclosed agreement to sell its subprime residential real estate business was hedge fund Ellington Capital Management.


Read more at Reuters.com Mergers News