UPDATE 2-Porsche's VW stake gains rev up profit forecast

(Reuters) - STUTTGART, Germany, June 26 - German sports car
maker Porsche said on Tuesday it expects its 2006/2007 profit to
streak past 2.1 billion euros thanks to hefty
gains from its stake in Europe's biggest car maker Volkswagen.




Porsche , the Stuttgart-based maker of
high-powered iconic sports cars like the 911 and Carrera GT,
raised its profit forecast despite reporting almost stagnant car
sales and revenues for the first ten months of the business
year.


Read more at Reuters.com Market News

UPDATE 1-Texas Pacific, consortium set to bid for UTAC-sources

(Reuters) - SINGAPORE, June 26 - U.S. private equity firm
Texas Pacific Group [TPG.UL] is expected to bid for Singapore's
microchip-testing firm United Test and Assembly Center
as part of a consortium, banking sources said on
Tuesday.




The deal may be worth as much as S$1.8 billion , dealers and analysts said.


Read more at Reuters.com Mergers News

Mbeki Uses South Africa's Burgeoning Influence to Defy Bush on Sudan, Iran

(Bloomberg) -- Down the road from Cape Town's
signature Table Mountain, construction cranes soar above the site
for a stadium where World Cup soccer matches will be played in
2010. For President Thabo Mbeki, bringing the most-watched
sporting event to Africa for the first time spotlights his drive
to spread South Africa's influence.

The U.S. is counting on that influence to help it confront
Africa's toughest challenges, from AIDS to war. Instead, it's the
Bush administration that South Africa is confronting as it seeks
to position itself as a counterweight to U.S. power.


Read more at Bloomberg Exclusive 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

ABN Amro, Standard Chartered Cut Forecasts for Yen on Carry Trade Outlook

(Bloomberg) -- ABN Amro Holding NV and Standard
Chartered Plc cut their forecasts for the yen as the lowest
interest rate among major economies prompts Japanese individuals
to buy higher-yielding assets overseas.

The yen will drop 2 percent against the dollar through the
end of September as investors use the currency to fund so-called
carry trades, Thomas Harr, senior foreign exchange strategist,
said in an interview. The two lenders disagree with Deutsche
Bank AG and UBS AG, the world's two biggest currency traders,
who forecast a stronger yen.


Read more at Bloomberg Currencies News

European Stocks Decline, Paced by Barclays, BNP Paribas, BAE Systems

(Bloomberg) -- European stocks dropped for a fourth
day as U.S. equities retreated. Barclays Plc, Britain's third-
largest bank, and BNP Paribas SA, France's biggest, paced the
decline after their U.S.-traded securities fell.

BAE Systems Plc tumbled after Europe's largest weapons maker
said the U.S. Justice Department started a probe of the company's
compliance with anti-corruption laws. Arcelor Mittal declined
after Merrill Lynch & Co. downgraded the steelmaker's shares.
Iberdrola SA dropped after the Spanish power company agreed to
buy U.S.-based Energy East Corp. for $4.5 billion.


Read more at Bloomberg Stocks News

Air Berlin, Infineon, Loewe, Porsche May Move: German Equity Preview

(Bloomberg) -- The following stocks may rise or fall
in German markets. Stock symbols are in parentheses after the
company names and prices are from the Xetra close unless
otherwise stated.

DAX futures expiring in September slid 76.50, or 1 percent,
to 7940.50 at 8:20 a.m. in Frankfurt. The DAX declined 0.2
percent to 7930.61 on the Xetra electronic-trading system.


Read more at Bloomberg Stocks News