European Government Bonds Decline as Report Shows Signs of Life in Economy

(Bloomberg) -- European 10-year government bonds
fell, reversing earlier gains, as a report today showed the
economy grew at an unexpectedly rapid pace in June.

Yields on longer-date debt rebounded to near a five-year
high after Royal Bank of Scotland Group Plc's combined index of
services and manufacturing showed the highest reading since
February, contrary to the decline predicted in a Bloomberg News
survey. A separate report tomorrow will probably show German
business optimism is buoyant, stoking expectations the European
Central Bank will keep raising interest rates.


Read more at Bloomberg Bonds News

UPDATE 2-Starbucks high end of '07 view 'very challenging'

(Reuters) - NEW YORK, June 21 - Starbucks Corp.'s
chief financial officer on Thursday said meeting the high end
of the coffee shop chain's 2007 earnings forecast will be "very
challenging" due to rising dairy costs and slowing growth in
its U.S. business, sending shares to a 20-month low.




CFO Michael Casey also said the company would maintain the
number of U.S. store openings at about 1,700 annually for the
next few years to relieve pressure on older outlets, and so the
company can funnel more resources into international markets
including China and Brazil.


Read more at Reuters.com Market News

TREASURIES-Short-dated debt rises on rate, credit fears

(Reuters) - NEW YORK, June 21 - Shorter-dated U.S. Treasury
debt prices rose modestly on Thursday as investors sought
safe-haven assets amid concerns about hedge fund problems
stemming from U.S. subprime mortgages.




Jittery investors who want to pare their exposure to
long-term rates or adjust their hedges on mortgage holdings
fueled demand for shorter-maturity Treasuries, analysts said.


Read more at Reuters.com Bonds News

Goldman Sachs real estate fund to buy Equity Inns

(Reuters) - Equity Inns owns more than 130 hotels under brands such as Courtyard, Hilton Garden Inn and Hampton Inn.




The hotel industry is in the midst of a multiyear boom as robust demand has allowed hoteliers to steadily raise rates. The upbeat market environment, supported by limited construction of new hotels, has made lodging assets hot commodities.


Read more at Reuters.com Business News

REFILE-Left-leaning Canada party worried about BCE/Telus

(Reuters) - The New Democrats, who together with two other opposition
parties control Parliament, said they were worried about
consolidation in the industry and the fact there could be less
competition in the wireless sector.




No. 2 phone company Telus confirmed early on Thursday that
it was in talks to explore the acquisition of bigger rival
BCE.


Read more at Reuters.com Mergers News

Copper Falls From Two-Week High in New York After Global Inventories Jump

(Bloomberg) -- Copper fell from a two-week high in New
York after inventories monitored by the London Metal Exchange
jumped the most in almost eight months.

Stockpiles rose 5,400 metric tons, or 4.7 percent, to 119,600
tons, the biggest gain since Oct. 25. Inventories climbed from the
lowest since October and were up for the first time in a month. The
price of copper had gained 20 percent this year, partly because of
the slump in supplies.


Read more at Bloomberg Commodities News

South Africa's Cell C Phone Company May Default Within Year, Moody's Says

(Bloomberg) -- Cell C Ltd., South Africa's third-
biggest mobile phone company, may default on $805 million of
bonds within the next year as the company fails to generate
enough cash to pay interest, Moody's Investors Service said.

Moody's downgraded Cell C's credit rating on May 21
indicating the company was ``very close to a default,'' Craig
Jamieson, a credit analyst for Moody's in South Africa, said in
an interview in Johannesburg. The company may default ``within
the next year,'' he said. Cell C says it is confident it can
meet its repayment obligations.


Read more at Bloomberg Emerging Markets News