S.Africa won't impose windfall tax on synfuel firms

(Reuters) - South Africa's National Treasury said on Monday the country will not impose a windfall tax on synthetic fuel producers such as Sasol and PetroSA.

"(The) government has also decided not to proceed with a tax on the windfall profits earned by existing synthetic fuel producers in the interest of a conducive environment for additional investments in domestic fuel security," the National Treasury said in a statement.


Read more at Reuters Africa

Singapore's Stocks Decline by Most in Five Months: World's Biggest Mover

(Bloomberg) -- Singapore's stocks declined by the
most in more than five months on concern losses in the U.S.
mortgage market will slow expansion in the nation's largest
export destination.

Oversea-Chinese Banking Corp. posted its biggest fall in
almost six years, leading the decline among banks on concern they
may incur losses on their credit investments because of defaults in U.S.
subprime housing loans.
Creative Technology Ltd. fell to an 11 year-low after reports
showed U.S. employers added fewer jobs in July and growth in the
service industries slowed.


Read more at Bloomberg Stocks News

U.S. Treasuries Are Little Changed on Growth Concern as Stocks Decline

(Bloomberg) -- Treasuries were little changed as
global stocks fell and speculation increased that losses tied to
subprime mortgages will slow economic growth.

Ten-year notes may extend their gains into a fifth week
after the risk of owning corporate bonds rose and a report showed
employers added fewer jobs than expected last month. Investors
increased bets the Federal Reserve will cut interest rates as
soon as October.


Read more at Bloomberg Bonds News

FACTBOX: Expected timetable in battle for ABN AMRO

(Reuters) - Britain's Barclays on Monday launched a rival offer for ABN. Its mostly share offer is currently worth about 64 billion euros.




Here is an expected timetable of events, based on information from the companies:


Read more at Reuters.com Mergers News

U.S. Stock-Index Futures Rise; Ford, Merrill Lynch Shares Gain in Europe

(Bloomberg) -- U.S. stock-index futures climbed as
investors speculated last week's losses may have been
exaggerated.

Ford Motor Co. advanced in Europe after the London Times
reported that Jacques Nasser, the company's former chief
executive officer, may visit the Land Rover and Jaguar factories
in the U.K. as part of an attempt to buy the brands. Merrill
Lynch & Co. gained after UBS AG recommended buying shares of the
third-largest U.S. securities firm.


Read more at Bloomberg Stocks News

U.K. Natural Gas Falls on Lower Demand Forecast; Pipeline Flips to Export

(Bloomberg) -- U.K. natural gas costs declined as a
drop in demand prompted a switch in the direction of flows on a
pipeline connecting England with mainland Europe.

Gas for delivery intraday slipped 3.4 percent to 28.25
pence a therm, according to prices on Bloomberg from the broker
ICAP Plc. The day-ahead price fell 2.6 percent to 28.5 pence a
therm. That's equivalent to $5.83 a million British thermal
units. A therm is 100,000 Btus.


Read more at Bloomberg Energy News

German 2008 Power Falls From Seven-Week High as Carbon Emission Costs Drop

(Bloomberg) -- German electricity for next year fell
from a seven-week high as emission-permit prices declined,
potentially reducing the cost of generating electricity at
plants that burn fossil fuels.

Electricity for delivery next year fell after two days of
gains, slipping 25 cents, or 0.4 percent, to 56.65 euros
($78.28) a megawatt-hour at 10:15 a.m. in Berlin, according to
GFI Group Inc. prices on Bloomberg. September prices dropped 1
percent to 34.90 euros.


Read more at Bloomberg Energy News

Credit, growth fears batter stocks, hit dollar

(Reuters) - European shares opened more than 1 percent lower before recovering slightly. Emerging market shares dropped around 1.8 percent and Japanese equities slipped 0.4 percent.




Heightened concerns for economic growth as a result of credit problems also knocked oil prices, which briefly dipped below $74.50, and dragged Shanghai copper futures down 3 percent.


Read more at Reuters.com Business News

Samsung to boost chip production after disruption

(Reuters) - Samsung's sprawling Kiheung complex was hit by a power shortage on Friday afternoon that shut down six of its chip production lines, raising the prospect of price increases and boosting shares of rival memory chip makers.




Shares in Samsung, the world's top memory chip maker, fell 1.02 percent, while rival Hynix Semiconductor Inc. , the second biggest, rose 0.67 percent in a falling Seoul share market as the firm is seen benefiting from Samsung's troubles.


Read more at Reuters.com Business News

FTSE dips, tracking Wall St. on credit concerns

(Reuters) - Britain's top share index dipped early on Monday on fresh concerns over global credit markets after Bear Stearns said it was weathering the worst storm in financial markets in more than 20 years.

At 0738 GMT, the FTSE 100 was down 21.1 points, or 0.34 percent, at 6,203.2, having closed 1.2 percent lower on Friday.


Read more at Reuters Africa

Fortis opens shareholder meeting on ABN buy

(Reuters) - Fortis is seeking approval for its proposed involvement and
for a 13 billion euro rights issue to help finance the deal.
Analysts have said they expect Fortis to win backing for both.




Read more at Reuters.com Mergers News

European shares fall amid credit market worries

(Reuters) - European shares fell in early trade on Monday, taking their cue from Friday's decline on Wall Street triggered by investment bank Bear Stearns saying credit markets were in their worst shape in two decades.

"We are seeing a flight to safe havens, to very short and very liquid assets, mainly cash," said Heinz-Gerd Sonnenschein, equity strategist at Postbank in Germany.


Read more at Reuters Africa

Germany's DAX Index Falls, Paced by DaimlerChrysler, Fresenius Medical

(Bloomberg) -- German stocks declined for a second
day, led by DaimlerChrysler AG, Fresenius Medical Care AG and
Allianz SE.

The benchmark DAX Index lost 37.04, or 0.5 percent, to
7398.63 as of 9:04 a.m. in Frankfurt. The HDAX Index of the
country's 110 biggest companies fell 0.6 percent.


Read more at Bloomberg Stocks News

European shares open 1 pct down, echoing Wall St

(Reuters) - European shares fell 1 percent at the opening on Monday, taking their cue from Friday's decline on Wall Street which was triggered by investment bank Bear Stearns saying credit markets were in their worst shape in two decades.

"Financial markets reflect a normalisation in risk tolerance -- the fall in equities being a function of rising cost of capital for the broad corporate sector and asset quality risks for the global financial sector," JPMorgan said in a note.


Read more at Reuters Africa

Securitas buys cash handling unit in Great Britain

(Reuters) - It said the unit will be consolidated in Loomis as of Aug.
6.




Read more at Reuters.com Mergers News

Nedbank lifts H1 headline EPS by 34 pct

(Reuters) - South African banking firm Nedbank Group increased first-half headline earnings per share by 34 percent as loans and advances increased, but it said on Monday bad loans were rising.

Nedbank, majority-owned by insurer Old Mutual, said headline EPS were 700 cents, while headline earnings for the six months to end-June increased to 2.775 billion rand.


Read more at Reuters Africa

Dry-Bulk Shipping Rates May Extend Gains Until 2009, Credit Suisse Says

(Bloomberg) -- Freight rates to transport coal, iron
ore and other dry goods in bulk may extend gains for at least
another two years, boosted by global demand and port congestion,
Credit Suisse said in a report.

``We think this upcycle will run harder and longer than
previous ones, helped by strong demand and supply constraints at
the shipyards, until 2009,'' Credit Suisse said in an Aug. 3
report. ``At the earliest, oversupply could happen in the second
half of 2009.''


Read more at Bloomberg Energy News

UPDATE 1-Wal-Mart, India Bharti set to announce India deal

(Reuters) - The two firms will hold a joint news conference in New
Delhi at 3:30 p.m. .




"Today's press conference is to announce a joint venture
with Wal-Mart for cash-and-carry," a spokesman for Bharti
Enterprises said.


Read more at Reuters.com Mergers News

Natixis sees little impact from IKB problems

(Reuters) - By Sudip Kar-Gupta



PARIS, Aug 6 - French bank Natixis said on Monday that current problems in the U.S. subprime mortgage sector would have a limited impact on the group, whose shares have slumped on fears over its subprime exposure.


Read more at Reuters.com Bonds News

Treasuries Fall on Speculation Yields Near Three-Month Low to Deter Buyers

(Bloomberg) -- Treasuries fell on speculation yields
near the lowest in three months overstated concern that the
weakness in the U.S. subprime mortgage market will spread.

The yield on the benchmark 10-year note rose 2 basis points,
or 0.02 percentage point, to 4.7 percent at 7:01 a.m. in London,
according to bond broker Cantor Fitzgerald LP. The price of the
4 1/2 percent notes due May 2017 fell 1/8, or $1.25 per $1,000
face amount, to 98 15/32.


Read more at Bloomberg Bonds News

Malaysia's Proton says studying Egypt car assembly

(Reuters) - Malaysian state carmaker Proton Holdings is studying plans to assemble cars in Egypt to help expand export sales, managing director Syed Zainal Abidin Syed Mohamed Tahir said on Monday.

"So from Egypt -- we plan to use that as a base to enter the African continent and the Middle East," he said.


Read more at Reuters Africa

Fortis has other options to fund ABN deal -report

(Reuters) - If Fortis shareholders do not approve the issue of shares,
Fortis could place shares with a friendly investor or sell some
businesses, Dutch daily Het Financieele Dagblad reported, citing
sources familiar with the bank.




A Fortis spokeswoman said the company would focus on
getting shareholder approval, but declined further comment.


Read more at Reuters.com Mergers News

India's Local Bond Rating to Be Kept at Non-Investment Grade, Moody's Says

(Bloomberg) -- India's local currency bonds will
keep a non-investment rating as the government isn't reducing
its budget deficit fast enough, Moody's Investors Service said.

The rating ``remains constrained'' at Ba2, two notches
below investment grade and the same level as Armenia and Jamaica,
as state debt equal to three-quarters of the economy ``leaves
public finances vulnerable,'' Moody's lead sovereign analyst for
India, Aninda Mitra, said in an e-mail to Bloomberg News.


Read more at Bloomberg Emerging Markets News

Natixis says sees little impact from IKB problems

(Reuters) - Natixis has a 2.5 percent stake in IKB and its shares fell
nearly 10 percent on Friday on fears over its exposure to the
U.S subprime mortgage sector.




Natixis said it had significantly reduced its exposure to
the U.S. subprime market since the start of 2007 and added that
its first half results due on August 30 would confirm the
company's "positive outlook".


Read more at Reuters.com Bonds News

Amazon leads investment in music site AmieStreet

(Reuters) - Started last October by three Brown University graduates, AmieStreet allows musicians to post songs with a variable pricing model, which is different from the one-price model used by Apple Inc.'s popular iTunes Music Store.




A new song on AmieStreet.com is initially priced at zero cents. The song is automatically given a starting price after users begin to download the song. The price rises gradually with popularity, to a maximum of 98 cents.


Read more at Reuters.com Business News

Asia-Pacific Corporate Bond Risk Increases on Subprime, Default Swaps Show

(Bloomberg) -- The risk of owning corporate bonds in
the Asia-Pacific region rose on concerns that losses tied to the
U.S. subprime mortgage market will widen.

The cost of default protection, measured by credit-default
swaps, increased in Australia and Japan, approaching the highest
in more than three years. Similar contracts tied to U.S. and
European corporate bonds rose on Aug. 3 after Bear Stearns Cos.,
the manager of two hedge funds that collapsed last month, had
its debt-rating outlook cut to negative by Standard & Poor's.


Read more at Bloomberg Bonds News

ICICI Hires 10 Arrangers for Yen Loan in Biggest Borrowing by Indian Bank

(Bloomberg) -- ICICI Bank Ltd. hired Goldman Sachs
Group Inc. and Calyon among 10 firms to arrange the biggest
borrowing by an Indian bank.

ICICI, India's largest lender to consumers, is seeking a
yen-denominated loan equivalent to $1.5 billion, said Calyon, the
investment-banking unit of Credit Agricole SA, in an e-mailed
statement today. HSBC Holdings Plc and Natexis Banques Populaires
are also among the arrangers that will invite other banks to join
the financing, according to the statement.


Read more at Bloomberg Bonds News

Platinum Futures Fall in Tokyo on Rising Yen, Concern That Demand May Slow

(Bloomberg) -- Platinum futures fell in Tokyo as a
rising Japanese currency reduced the appeal of buying yen-
denominated contracts for the dollar-priced metal, and as
a slump in world stocks raised concern that demand may drop.

The yen rose to 117.19 to the dollar, the highest since
March 29, on signs losses related to U.S. subprime mortgages are
starting to slow growth of the world's largest economy. Asian
stocks fell after the Standard & Poor's 500 Index had its biggest
three-week decline since 2003.


Read more at Bloomberg Commodities News

ICI, Sainsbury, Morgan Sindall, Standard Life: U.K., Irish Stock Preview

(Bloomberg) -- The following stocks may rise or fall
in U.K. and Irish markets today. Stock symbols are in parentheses
and prices are from yesterday's market close.

The benchmark FTSE 100 Index lost 76.00, or 1.2 percent, to
6224.30. The FTSE All-Share Index declined 34.49, or 1.1 percent,
to 3223.84.


Read more at Bloomberg Stocks News

UPDATE 1-Delphi, second biggest union reach tentative deal

(Reuters) - Union members will vote by mail on the tentative contract,
with the results expected by mid August, the International
Union of Electrical Workers-Communications Workers of America
said in a statement.




Delphi, which filed for bankruptcy in October 2005,
previously reached agreement with its biggest union, the United
Auto workers. Delphi has said it hopes to file a reorganization
plan in the third quarter and exit bankruptcy by the end of
2007.


Read more at Reuters.com Bonds News

Australia, New Zealand Dollars Decline as Carry Trades Cut on Stock Slide

(Bloomberg) -- The Australian and New Zealand
dollars fell a second day against the yen as global stocks slid
on concern U.S. mortgage losses will worsen, deterring investors
from buying higher-yielding assets funded by loans in Japan.

New Zealand's dollar has weakened 7.5 percent versus the
yen in the past month, the most among the 16 most-active
currencies, and Australia's retreated 4.8 percent, as traders
pared positions in so-called carry trades. Asian shares declined
today after The Standard & Poor's 500 Index fell the most in
five months in New York on Aug. 3.


Read more at Bloomberg Currencies News

Saudi Aramco Releases Crude Oil Prices for Asia for Export in September

(Bloomberg) -- Saudi Aramco, the world's
largest oil company, released the prices for its crude oil
for export to Asia in September, said Asian refinery
officials who received a notice from the company.

The following table gives the differentials in
relation to benchmark prices, the month-on-month change and
the degrees of gravity as defined by the American Petroleum
Institute.


Read more at Bloomberg Energy News

Banks in Australia Have Minimal Exposure to U.S. Subprime Debt, S&P Says

(Bloomberg) -- Australian banks have ``minimal''
exposure to U.S. subprime loans, according to Standard & Poor's,
which has cut its ratings on more than $2 billion of securities
linked to the troubled mortgages.

``In almost all cases their exposure to these instruments is
either minimal or manageable,'' S&P said in an e-mailed statement
today.


Read more at Bloomberg Bonds News

Taiwan Government Bonds Climb as Stock Losses Spur Demand; Currency Falls

(Bloomberg) -- Taiwan's 10-year government bonds
advanced on speculation a decline in stocks prompted investors to
seek the safety of debt's fixed income. The currency weakened.

Yields, which move inversely to prices, were the lowest in
three weeks on concern defaults on U.S. subprime mortgages are
spreading to the broader economy. Regional equity markets fell,
with the island's Taiex index of shares dropping as much as 2.1
percent.


Read more at Bloomberg Bonds News

Japan Shares Drop on U.S. Economy Concern, Strong Yen; Toyota Profit Gains

(Bloomberg) -- Japanese stocks declined, paced by
exporters, on fear losses in the U.S. mortgage market may slow
the world's biggest economy and after the yen strengthened to a
four-month high against the dollar.

Banks including Mizuho Financial Group Inc. and brokerages
such as Nomura Holdings Inc. fell on worry the subprime problem
will erode their profits.


Read more at Bloomberg Stocks News

Markets drop as worries grow

(Reuters) - "The outlook for today does not look good. On top of the worries about the exposure of funds to credit markets, now we've worries about weak U.S. economic data," said Choo Hee-yeop, deputy general manager of asset management strategy at Korea Investment and Securities.




At 0025 GMT, Tokyo's Nikkei average had slid 1.6 percent with exporters such as Canon Inc., electronics components maker Kyocera and chip-tester maker Advantest Corp. further hit by a firmer yen.


Read more at Reuters.com Hot Stocks News

Samsung shares pare losses following outage

(Reuters) - Samsung's Kiheung sprawling complex was hit by a power shortage on Friday afternoon that shut down six of its chip production lines, raising the prospect of price increases and boosting shares of rival memory chip makers.




Some analysts on Friday said the incident could wipe out as much as a month's worth of Samsung's total output of NAND flash memory chips, but the firm later said damage from the accident would be smaller than expected.


Read more at Reuters.com Hot Stocks News

Korean Won Declines to Near the Lowest in a Month as Investors Reduce Risk

(Bloomberg) -- The South Korean won fell, approaching
the lowest in more than a month, on speculation investors are
cutting investments in Asia as signs mount that the U.S. economy
is slowing.

Korea's currency and the benchmark stock index extended two
weeks of losses as reports Aug. 3 showed U.S. employers added
fewer jobs in July and service industries growth slowed. The Bank
of Korea the same day said it will restrict companies from
borrowing in foreign currencies to stem gains in the won that
threaten exporter's profits.


Read more at Bloomberg Currencies News

Japan's Government Bonds Advance on Speculation Investors Will Shun Risk

(Bloomberg) -- Japan's 10-year bond gained, pushing
yields to the lowest in more than two months, on speculation
increasing risk aversion spurred demand for government debt.

Corporate bond risk rose in Japan, approaching the highest
in more than three years. The nation's five-year notes completed
on Aug. 3 their longest series of weekly advances since May 2005
as losses linked to U.S. subprime mortgages caused assets such
as emerging-market bonds and stocks to extend declines.


Read more at Bloomberg Bonds News

South Korea's Kospi Index Falls, Led by Samsung, Posco and Kookmin Bank

(Bloomberg) -- South Korea's benchmark stock index,
the Kospi Index, fell 2.41 percent at 9:05 a.m.

The index of 733 companies traded on the Korea Exchange
fell 45.19 to 1,831.61. Among the stocks in the index, 88 rose,
566 fell and 79 were unchanged.


Read more at Bloomberg Stocks News

Philippines, Singapore, Sri Lanka, South Korea: Asian Local Bond Preview

(Bloomberg) -- The following events and economic
reports may influence trading in Asian local-currency bonds
today. Yields are from the previous session.

China: The nation should steadily work toward yuan
convertibility, China Money magazine reported Aug. 3, citing
Wang Yungui, deputy director general of the Balance of Payment
Department at the currency regulator. China should improve the
system of foreign-exchange settlements and increase the currency
market's demand and supply, Wang said according the magazine.
China Development Bank plans to sell 20 billion yuan ($2.64
billion) of fixed-rate seven-year bonds this week.


Read more at Bloomberg Bonds News

Shareholders to rule on Fortis's ABN purchase plan

(Reuters) - The Fortis shareholder meeting is the latest hurdle for the
consortium, albeit one Fortis is expected to clear.




Fortis shares have fallen almost 18 percent since it
announced its involvement and a plan to finance its 24 billion
euro share of the deal with Europe's second largest ever rights
issue.


Read more at Reuters.com Mergers News

Dollar Falls to Four-Month Low Against Yen on Concerns About U.S. Growth

(Bloomberg) -- The dollar fell to a four-month low
against the yen on signs losses related to subprime mortgages
are starting to slow U.S. economic growth.

The dollar also traded near a record low against the euro
after the yield spread between U.S. and German two-year bonds
narrowed to the least in 2 1/2 years. The Standard & Poor's 500
Index slid the most in five months and two-year Treasury yields
dropped to an 18-month low Aug. 3 as reports on employment and
services suggested housing market weakness is causing economic
growth to slow.


Read more at Bloomberg Currencies News

Fed's Bernanke May Alter Rhetoric, Not Interest Rates After Market Turmoil

(Bloomberg) -- Federal Reserve Chairman Ben S.
Bernanke may respond to the latest squall in financial markets
the same way he did when turbulence hit four months ago: with a
change in words rather than policy.

Bernanke and his colleagues may suggest after their
meeting tomorrow that the risks to economic growth have
increased following the rout in stock and credit markets -- just
as they did after their March meeting.


Read more at Bloomberg Currencies News

Vattenfall Prolongs Maintenance Shutdown by Six Days at Forsmark Reactor

(Bloomberg) -- Vattenfall AB, the Nordic region's
biggest utility, said its Forsmark B2 nuclear reactor will be
shut down for maintenance work six days longer than previously
reported.

The reactor, with a maximum capacity of 1,000 megawatts,
will be off until Aug. 23 instead of Aug. 17, Forsmark Kraftgrupp
AB said today in a statement distributed by the Nord Pool ASA
power exchange. The Forsmark nuclear plant is located on Sweden's
east coast, north of Stockholm.


Read more at Bloomberg Energy News

UPDATE 1-Bear Stearns says president Spector has resigned

(Reuters) - The resignation follows Bear Stearns' assertion on Friday
that it is weathering the worst storm in financial markets in
more than 20 years after a major rating company warned mortgage
credit problems could hurt the investment bank's profits.




In a statement, Bear Stearns said that, effective
immediately, Alan Schwartz has been named the company's sole
president, and Samuel Molinaro will become chief operating
officer in addition to chief financial officer.


Read more at Reuters.com Mergers News

Putin Favors Ruble Traders Over Oil Profits in Battle Against Inflation

(Bloomberg) -- Russian President Vladimir Putin's
plan to keep inflation from accelerating depends on favoring
foreign-exchange traders over the country's oil and gas
companies.

Putin will probably allow the central bank to double the
ruble's pace of appreciation this year because he has few options
outside the foreign exchange market to rein in consumer prices,
according to strategists at Bank of America Corp. and UBS AG.
Russia's 8.5 percent inflation rate is three times faster than
any other Group of Eight country.


Read more at Bloomberg Emerging Markets News

Netflix shares poised to rally: Barron's

(Reuters) - "At some point, Blockbuster will cry uncle and raise prices, and Netflix shares will almost certainly rally," said Barron's in its technology column.




Netflix might also be an acquisition target, notably by Amazon.com , said Barron's.


Read more at Reuters.com Hot Stocks News

ABN, RBS consortium say to continue takeover talks

(Reuters) - "ABN AMRO and the consortium have agreed to continue the constructive dialogue to resolve any outstanding questions regarding the offer of the consortium for ABN AMRO, and to maintain a level playing field," ABN and the RBS-led consortium said in a joint statement.




RBS , together with its partners Belgian-Dutch Fortis and Spain's Santander , is battling against Barclays to buy ABN in what would be the biggest ever bank takeover. Barclays' offer is worth about 65 billion euros.


Read more at Reuters.com Business News

Qatar bank's $6.1 billion Ahli United bid stalls

(Reuters) - International Bank, an affiliate of National Bank of Kuwait , said shareholders were insisting that a third party and not the Qatari firm have access to the books of Bahrain's biggest lender, and that due diligence be limited to one month rather than three.




"IBQ confirmed that they have been in discussions with certain shareholders of AUB but these discussions have stalled," International Bank said in a statement.


Read more at Reuters.com Business News

Jones says Fast Retailing tops Dubai bid for Barneys

(Reuters) - Jones Apparel said in a statement released in New York that
it intended to accept the Fast Retailing offer unless Istithmar
matched it within two business days of Aug. 6.




Read more at Reuters.com Mergers News

Qatar bank's $6.1 Ahli United takeover bid stalls

(Reuters) - International Bank, an affiliate of National Bank of Kuwait , said shareholders were insisting that a third party and not the Qatari firm have access to the books of Bahrain's biggest lender, and that due diligence be limited to one month rather than three.




"IBQ confirmed that they have been in discussions with certain shareholders of AUB but these discussions have stalled," International Bank said in a statement.


Read more at Reuters.com Business News

Dubai matches Fast Retailing's $900 mln Barneys bid

(Reuters) - Istithmar, owned by the government of Dubai, had agreed to buy the luxury retailer for $825 million before Fast Retailing entered the fray with a $900 million offer.




On August 1, Jones gave Istithmar three days to sweeten its bid.


Read more at Reuters.com Mergers News

Dubai's Istithmar raises Barneys bid to $900 mln

(Reuters) - "If this offer is not accepted, Istithmar is entitled to our break-up fee of $22.7 million," Istithmar said in a statement.




Read more at Reuters.com Business News

UPDATE 3-Bush tours site of wrecked Minnesota bridge

(Reuters) - MINNEAPOLIS, Aug 4 - Divers searched for bodies
in debris in the murky Mississippi on Saturday as President
George W. Bush toured the site of this week's deadly rush-hour
bridge collapse and promised quick federal help in rebuilding.




Bush got a bird's eye view of the ruined bridge in a
10-minute helicopter tour, then donned an orange hard hat and
wind-breaker to walk a section of the 40-year-old bridge on
foot as rain fell.


Read more at Reuters.com Bonds News

Freddie CEO wary of more subprime loans: NYT

(Reuters) - With credit pools drying up "there are some loans that are in difficulty," the Times quoted Syron as saying in a telephone interview.




"There are other loans that probably should never have been made and providing more liquidity will make that situation worse in the long term," Syron told the Times.


Read more at Reuters.com Business News

Freddie CEO wary of more subprime loans - NYT

(Reuters) - With credit pools drying up "there are some loans that are
in difficulty," the Times quoted Syron as saying in a telephone
interview.




"There are other loans that probably should never have been
made and providing more liquidity will make that situation
worse in the long term," Syron told the Times.


Read more at Reuters.com Bonds News

Barclays' ABN offer period runs until Oct 4 - filing

(Reuters) - The RBS-led consortium's offer is worth 71 billion euros
and 93 percent in cash, while Barclays
65-billion-euros offer is about 38 percent in cash.




ABN shareholders can tender shares under the Barclays offer
from Aug. 7 until Oct. 4, Barclays said in a filing to U.S.
regulator the Securities and Exchange Commission late on Friday.


Read more at Reuters.com Mergers News

Bear Stearns preparing to oust president-WSJ

(Reuters) - Bear Stearns' board is due to meet on Monday to consider
the departure of Spector, who heads up its stock and bond
trading operations, the paper said, citing a person familiar
with the situation.




Spector, 49, had widely been seen as a candidate to become
the firm's next chief executive, the Journal said.


Read more at Reuters.com Bonds News

Regulator seeks comments on "unfair" lending

(Reuters) - The proposal comes at a time when U.S. banking authorities, including the Federal Reserve, have been criticized for responding too late to problems in home loans made to borrowers with poor credit histories, so-called subprime loans.




The OTS, which regulates more than 800 savings and loan institutions with $1.5 trillion is assets, typically focuses on mortgage lending.


Read more at Reuters.com Bonds News

US STOCKS-Indexes flat after jobs data; ISM to come

(Reuters) - NEW YORK, Aug 3 - U S. stocks were little changed
on Friday after a report showing weaker-than-expected job
growth last month rattled investors already nervous about
losses in the mortgage industry.




Investors were bracing for data on the vast U.S. services
sector at 10 a.m. .


Read more at Reuters.com Bonds News

US STOCKS-Indexes fall further after services data

(Reuters) - The Dow Jones industrial average was down 65.36
points, or 0.49 percent, at 13,397.97. The Standard & Poor's
500 Index was down 9.64 points, or 0.65 percent, at
1,462.56. The Nasdaq Composite Index was down 14.85
points, or 0.58 percent, at 2,561.13.




Read more at Reuters.com Bonds News

Mexico markets down on weak U.S. job data

(Reuters) - The price of the benchmark 10-year peso bond
fell 0.062 point to bid 101.149 points, with a yield of 7.81
percent.




The U.S. July jobs report showed non-farm payrolls rose by
92,000, below expectations of 139,000. That suggested a
weakening U.S. economy, which buys most of Mexico's exports.


Read more at Reuters.com Bonds News

IKB subprime shockwaves continue to rattle Germany

(Reuters) - German commercial property financier Hypo Real Estate struggled to calm jittery investors by insisting it would be unaffected by the U.S. subprime fallout.




Its shares skidded more than 6 percent while Commerzbank -- which owns a property financier -- saw its stock fall over 4 percent.


Read more at Reuters.com Bonds News

S&P, Fitch cut Boston Scientific's debt to junk

(Reuters) - Saddled with debt after its $27 billion acquisition of
Guidant Corp. and hampered by slowing sales of its most
lucrative heart devices, the company said in March it was
exploring the partial sale for more than $1 billion.




"Fitch's prior rating for BSX was highly dependent on the
timely paydown of debt with cash proceeds from the potential
divestiture," Fitch said in a statement. "More pressure has now
been placed on BSX's operations, which are currently
challenged, to reduce debt and leverage."


Read more at Reuters.com Bonds News

REFILE-UPDATE 2-Bear Stearns, brokers debt protection costs rise

(Reuters) - NEW YORK, Aug 3 - The cost to insure the debt of
Bear Stearns Cos. jumped on Friday after Standard &
Poor's changed its outlook on the investment bank's debt to
negative, indicating it is more likely to be cut over the next
one to two years.




Recent developments, including problems at some of Bear
Stearns' managed hedge funds, have the potential to hurt the
company's performance for an "extended period," S&P said in a
statement. For details, see [ID:nN03300207]


Read more at Reuters.com Bonds News

Nomura subprime bond "failed" 6 months after sale

(Reuters) - Bond collateral "performance generally should not be
expected to begin changing the baseline cashflow distributions
this soon," said Christopher Sullivan, chief investment officer
for pension funds at the United Nations in New York. Worse
performance in older ABX indexes makes this move less
surprising, however, he said.




The issue is one of 20 in the benchmark ABX-HE 07-2 index
that was launched last month. The ABX indexes have become
widely watched since they are the most transparent way of
gauging prices on the securities and can be used by investors
to hedge their holdings of debt backed by risky mortgages.


Read more at Reuters.com Bonds News

Health insurers' subprime exposure limited: analyst

(Reuters) - Several health insurers report holding more than 20 percent of their portfolios in mortgage loans, but most companies have almost no exposure to subprime loans, CIBC analyst Carl McDonald said in an analysis published on Friday.




"Our work in the past couple days suggests that the recent issues in the mortgage market will have very little impact on the investment portfolios held by managed care plans," McDonald said in his report.


Read more at Reuters.com Bonds News

UPDATE 2-US regulator seeks comments on 'unfair' lending

(Reuters) - WASHINGTON, Aug 3 - The U.S. Office of Thrift
Supervision on Friday asked for comment on how to address
"unfair and deceptive acts or practices" associated with
lending products.




The proposal comes at a time when U.S. banking authorities,
including the Federal Reserve, have been criticized for
responding too late to problems in home loans made to borrowers
with poor credit histories, so-called subprime loans.


Read more at Reuters.com Bonds News

Stocks set for steady start ahead of jobs data

(Reuters) - By 6:05 a.m. EDT S&P and Dow futures were flat, while Nasdaq futures eased 0.1 percent. European stocks were steady but dipped from early highs.




Citigroup chief executive Charles Prince said the recent market pullback "feels sharp," but he was bullish on the bank's growth, the New York Times said on its Web site.


Read more at Reuters.com Hot Stocks News

Bond prices rise on subprime worries

(Reuters) - Signs of weakness in the economic data prompted investors to increase bets that the Federal Reserve may start cutting interest rates before the end of the year.




Investors also scurried for shelter in Treasuries due to a sell-off in stock markets on worries about banks' exposure to upheaval in the credit markets after a ratings agency gave investment bank Bear Stearns Cos. a negative outlook.


Read more at Reuters.com Hot Stocks News

Bear Stearns says S&P outlook change unwarranted

(Reuters) - "S&P's specific concerns over issues relating to certain hedge funds managed by are unwarranted as these were isolated incidents and are by no means an indication of broader issues at Bear Stearns," the company said.




S&P earlier on Friday changed its outlook on Bear's debt to "negative" from "stable," which means it is more likely to cut Bear's ratings over the next year or two.


Read more at Reuters.com Hot Stocks News

Miner Anglo to sell Tarmac; lifts profit, buyback

(Reuters) - Miner Anglo American unveiled plans to sell Tarmac, its UK-based road building unit, as it met forecasts with a 22 percent rise in first-half earnings and announced a further $4 billion share buyback.

The sale, which analysts believe could raise around $6 billion, is the latest move by Anglo aimed at focusing on its core mining business following bouts of underperformance against its peers and speculation it might attract a break-up bid.


Read more at Reuters Africa

IFC invests $32.5 mln in African cable project

(Reuters) - The World Bank's International Finance Corp. on Thursday said it was investing $32.5 million in a fiber-optic cable project that will provide Internet and international communication services for 21 African countries.

IFC, the private-sector arm of the World Bank that focuses on investing in emerging-market economies, said the cable project should improve telecommunications access for 250 million Africans and cut costs for individuals and businesses.


Read more at Reuters Africa

Highveld says H1 headline EPS at 648.2 cts

(Reuters) - South Africa's Highveld Steel and Vanadium Corporation's first half headline earnings per share increased to 648.2 cents from 404.9 cents a year ago, the firm said on Friday.

Highveld said headline earnings rose to 643 million rand, from 401 million rand.


Read more at Reuters Africa

S.Africa's c.bank governor says household debt costs to bite

(Reuters) - South Africa's central bank Governor Tito Mboweni warned on Friday that rising debt services costs were going to bite, and repeated calls for consumers to be careful about acquiring credit.

Official data last week showed growth in demand for credit by South Africa's private sector quicked to 24.92 percent year-on-year in June from 24.84 percent, hardening the case for higher interest rates later this month.


Read more at Reuters Africa

S.Africa 3-mth T-bill discount rate down at 8.84 pct

(Reuters) - The average discount rate for South African three-month Treasury Bills decreased to 8.84 percent on Friday from 8.86 percent last week, the Reserve Bank said.

The average yield was also down at 9.04 percent from 9.06 percent and applications for the 2.3 billion rand of bills on offer totalled 5.02 billion rand.


Read more at Reuters Africa

US jobs data hit stocks, dollar, boost bonds

(Reuters) - Stocks and the dollar fell while safe-haven government bonds rallied on Friday after weaker-than-expected U.S. jobs data fanned concerns about a U.S. economy already struggling with credit liquidity fears.

U.S. stock futures pointed to a weaker open on Wall Street while European stocks moved deeper in negative territory after data showed U.S. employers boosted payrolls in July at the slowest pace since February, adding 92,000 jobs.


Read more at Reuters Africa

Angola sees sustained economic boom, inflation cut

(Reuters) - Angola's prime minister said on Friday that his government would cut inflation despite an economic boom, whose benefits he insisted ordinary people would feel in a country still recovering from a devastating civil war.

"We are working very hard now and very soon we will bring it to a sustainable rate of a single digit, we are talking of about eight percent before the end of this year," Fernando da Piedade Dias Dos Santos told Reuters in an interview.


Read more at Reuters Africa

Pfizer seeks to quash Nigerian drug test report

(Reuters) - Pfizer has asked a Nigerian court to disregard an experts' report into drug tests it conducted on Nigerian children in 1996 and which are now the subject of four court cases, the company said on Friday.

The Nigerian federal government and the northern state of Kano are suing Pfizer for a total of about $8.5 billion in damages and also pressing criminal charges over what they say was unethical testing of Trovan, an antibiotic drug.


Read more at Reuters Africa

S.Africa artisans' union gets coal strike permission

(Reuters) - South African union Solidarity has received a certificate that allows it to launch a strike in the coal mining industry, the union said on Friday.

South African coal industry sources said that because Solidarity represents artisans or skilled workers, a strike by Solidarity would be likely to have more impact on coal production than that by the National Union of Mineworkers (NUM) which represents mostly unskilled workers.


Read more at Reuters Africa

Crude Oil Falls on Concern U.S. Economic Growth, Energy Demand Will Slow

(Bloomberg) -- Crude oil fell more than $1 a barrel
after a government employment report prompted concern that U.S.
economic growth will slow, reducing demand for gasoline and other
fuels.

Job growth slowed to 92,000 in July from 126,000 the prior
month, the Labor Department said today in Washington. The jobless
rate rose to 4.6 percent. Economic growth in the U.S. and China
has helped spur the rise in energy demand and fuel prices.
Gasoline, diesel and heating-oil inventories rose last week, a
government report showed on Aug. 1.


Read more at Bloomberg Energy News

U.S. jobs data hits stocks, dollar, ups bonds

(Reuters) - U.S. employers boosted payrolls in July at the slowest pace since February, adding 92,000 jobs as the national unemployment rate rose to a level last seen in January, the Labor Department reported.




The FTSEurofirst 300 was down 0.4 percent after the report and the euro rose to $1.3714 .


Read more at Reuters.com Economic News

UPDATE 1-US services growth eased considerably in July

(Reuters) - The Institute for Supply Management's services index
tumbled to 55.8 last month from 60.7 in June, well below
economists' median forecast for a drop to 59.0.




A number above 50 indicates the sector is still growing,
but the sharp pullback shows activity is much more subdued,
even as separate data point to a sluggish labor market.


Read more at Reuters.com Economic News

U.S. staffing stocks fall after July jobs report

(Reuters) - The U.S. economy added 92,000 nonfarm jobs in July, below the
130,000 expected, and jobs growth in May and June was revised down
slightly. The jobless rate moved up to 4.6 percent, the Labor
Department said.




Jonas Prising, who heads North American operations at Manpower
Inc. , said Manpower's clients are cautious in their
outlook, but they remain optimistic.


Read more at Reuters.com Economic News

Citigroup Says Asia Bond Investors Are Showing Growing Aversion to Risk

(Bloomberg) -- Asia's largest institutional fixed-
income investors are displaying increased risk aversion,
especially toward high-yield and longer-maturity debt, according
to a Citigroup Inc. survey.

The investors are positive on the outlook for the euro and
British pound while becoming even more negative on the U.S.
dollar, according to the quarterly survey.


Read more at Bloomberg Bonds News

Union Investment Halts Bond Fund Withdrawals After $137 Million Pulled

(Bloomberg) -- Union Investment Asset Management
Holding AG, Germany's third-largest mutual fund manager, halted
redemptions from a fund holding subprime mortgages after clients
withdrew about 10 percent of the assets in the past month.

Investors redeemed 100 million euros ($137 million) from the
950 million-euro ABS-Invest Fund, spokesman Markus Temme said
today. The fund, sold to institutional investors across Europe,
has about 6 percent of its assets in securities related to
subprime mortgage loans, Temme said.


Read more at Bloomberg Bonds News

Bear Stearns Debt Rating Outlook Is Cut by S&P Amid Mortgage Market Rout

(Bloomberg) -- Bear Stearns Cos., the manager of two
hedge funds that collapsed last month, had its credit-rating
outlook cut to negative by Standard & Poor's on concern declining
prices for mortgage-backed securities will reduce earnings.

The rating, which was raised one level in October, could be
lowered if the New York-based company incurs large losses, S&P
said today in a statement. Bear Stearns's debt is rated A+, the
fifth highest on the investment-grade scale.


Read more at Bloomberg Bonds News

PRESS DIGEST - New York Times business news - Aug 3

(Reuters) - * China's high-profile investment in the Blackstone Group
LP has produced an unusual backlash within China as
shares in the equity firm have dropped steeply since it went
public in June.




* Take-Two Interactive Software Inc. , the video
game publisher, said on Thursday that it was postponing the
release of the latest game in its wildly popular Grand Theft
Auto series. The delay is likely to have ripple effects on the
broader video game industry during its crucial holiday selling
season.


Read more at Reuters.com Mergers News

RBS says Corporate Mkts up in July despite turmoil

(Reuters) - Johnny Cameron, head of RBS's Corporate Markets division,
said it was difficult to predict when markets would return to
normal but said "by the end of this quarter I expect to see the
market back in business".




Goodwin also said he expected the cost of insurance claims
related to floods in Britain in July to be similar to the 125
million pounds of claims it suffered in June.


Read more at Reuters.com Mergers News

BA profit rise beats forecasts, warns on revenues

(Reuters) - LONDON, Aug 3 - British Airways posted a 28 percent rise in quarterly operating profit on Friday to beat analysts' forecasts, but warned a weak dollar and soaring fuel prices would slow full-year revenue growth and raise costs.



Earnings before interest and taxes for the three months to end-June rose to 263 million pounds , BA said in a statement to the London Stock Exchange.


Read more at Reuters.com Mergers News

IBM to buy data management solutions provider

(Reuters) - Princeton Softech, which provides data archiving, test data management, data classification and discovery software, has about 240 employees and more than 2,200 companies rely on its solutions, IBM said in a statement.







Read more at Reuters.com Mergers News

Italy's UniCredit seals Polish deal with GE Money

(Reuters) - UniCredit is to merge the remaining assets of BPH into its
other Polish unit Bank Pekao.




Read more at Reuters.com Mergers News

UniCredit Q2 net profit up 6.8 pct, tops forecast

(Reuters) - By Lisa Jucca



MILAN, Aug 3 - Italian bank UniCredit increased its second-quarter net profit by 6.8 percent to 1.827 billion euros, beating all analysts' forecasts, as it slashed costs while pushing volumes up across its business divisions.


Read more at Reuters.com Mergers News

Abe's Vision for `Beautiful Japan' Turns Ugly After Parliamentary Losses

(Bloomberg) -- Shinzo Abe's vision for a ``Beautiful
Japan'' has turned into a potentially ugly scenario for his
political future.

After losing control of the upper house of parliament in
elections July 29, Abe, 52, must ditch his plan to turn Japan
into a nation that's more assertive in international affairs,
proud of its traditions and loved by other countries, analysts
said. Now he must focus on the economy to ward off a move for an
early general election from the opposition Democratic Party of
Japan.


Read more at Bloomberg Exclusive News

Hedge Funds Pluck Money From Air in $19 Billion Weather Derivatives Gamble

(Bloomberg) -- Credit Suisse Group trader Patrick
Ayash rarely reads earnings estimates and just skims news about
inflation. One thing he never misses: the daily weather report.

Ayash, 31, is part of an army of mathematicians, hedge-fund
whizzes and programmers pouring into the $19 billion market for
weather futures, financial instruments tied to everything from
storms over Kansas, an early frost in the Netherlands, or a
frigid spring in New York.


Read more at Bloomberg Exclusive News

Taser Settled 10 of 52 Cases It Told Investors Were Dismissed by Courts

(Bloomberg) -- Taser International Inc., the world's
largest maker of stun guns, talks tough when the subject turns to
people who've sued the company for injuries or deaths allegedly
inflicted by electric shocks from its weapons.

``The word has gotten out: Taser doesn't settle,'' Taser
General Counsel Doug Klint said in an April interview. ``Anyone
who sues us is in for a fight.''


Read more at Bloomberg Exclusive News

Merkel Plan Gives Germans Rare Sense of Economic Optimism, Promotes Growth

(Bloomberg) -- Chancellor Angela Merkel has helped
kick-start the German economy, not to mention her own political
prospects, by pulling off the equivalent of a conjuring trick:
banishing Germans' pessimism and convincing them the glass is
half full.

Merkel has restored a rare sense of economic optimism, a
prerequisite for corporate investment, hiring and consumer
spending, economists and psychologists say. It's not so much what
she's done that's important as what she hasn't done: Merkel has
deliberately discontinued the unpopular economic-policy changes
pioneered by her predecessor, Gerhard Schroeder. That's propelled
her personal-approval rating to a record, to the consternation of
her coalition partners.


Read more at Bloomberg Exclusive News

Telus to abandon BCE pursuit: report

(Reuters) - BCE, which is Canada's largest telecommunications group, has accepted an offer worth C$34.8 billion from a group including the Ontario Teachers Pension Plan.




Since pulling out of bidding, Telus had been lobbying regulators and meeting the Canadian Competition Bureau, hoping to get some guidance before BCE held its shareholder vote, the paper reported, citing unnamed sources.


Read more at Reuters.com Government Filings News

UPDATE 1-CCS Medical sees $14-$16/shr price range for IPO

(Reuters) - Lehman Brothers, Goldman Sachs & Co., Wachovia Securities
and Raymond James were underwriting the IPO, the medical supply
management company said in a filing with the U.S. Securities
and Exchange Commission.




The company, which has applied for a Nasdaq listing under
the symbol "CCSM," has given the underwriters an option to buy
up to an additional 1.5 million shares to cover allotments.


Read more at Reuters.com Government Filings News

IKB subprime shockwaves continue to rock Germany

(Reuters) - German commercial property financier Hypo Real Estate struggled to calm jittery investors by insisting it would be unaffected by the U.S. subprime fallout. Its shares still skidded more than 5 percent while Commerzbank -- which owns a property financier -- saw its stock fall 4 percent.




Investor confidence was further dented as it emerged that French insurer Axa had also temporarily closed two subprime funds after sudden losses.


Read more at Reuters.com Government Filings News

South African Rand Poised for Weekly Gain; Investors Resume Carry Trades

(Bloomberg) -- South Africa's rand is headed for a
weekly gain against the dollar as a rebound in global stocks
prompted investors to resume buying emerging-market assets.

The rand also advanced against the Swiss franc and Japanese
yen as traders borrowed funds in those currencies to invest in
higher yielding stocks and bonds in South Africa, a strategy
known as the carry trade. The rand extended gains after central
bank Governor Tito Mboweni said he was concerned about inflation
in Africa's largest economy.


Read more at Bloomberg Currencies News

Fidelity Says Its U.S., Asia High-Yield Funds Have No Subprime Debt, CDOs

(Bloomberg) -- Fidelity International Ltd. said its
U.S. and Asian high-yield funds have no U.S. subprime mortgage
investments or collateralized debt obligations.

Fidelity International, a unit of Boston-based Fidelity
Investments, the world's largest mutual-fund company, sees buying
opportunities in U.S. and Asian high-yield markets, portfolio
managers Harley Lank and Andrew Wells said in a market update
late yesterday titled ``Sub-prime or a prime opportunity?''


Read more at Bloomberg Currencies News

Toyota says upward trend in U.S. sales intact

(Reuters) - The highest was July 2006, when industry volumes grew on back of big incentives being offered led by Detroit brands.




He also said U.S. sales incentives on the Tundra pick-up truck were on track to decline.


Read more at Reuters.com Business News

Samsung Electronics chip output hit by power cut

(Reuters) - The company said it did not expect the overall losses from the outage to exceed 50 billion won .




Analysts, however, put the potential losses much higher.


Read more at Reuters.com Business News

LBO exposure may hit Bear Stearns, Lehman

(Reuters) - Large commercial banks such as Citigroup Inc. are on the hook for loads of leveraged buyout debt they hoped to sell to investors, but with a $230 billion market capitalization, Citi is seen as having the balance sheet to absorb any losses without much of a headache.




Large commercial banks like Citi and JPMorgan Chase & Co. also benefit from more diversified businesses including revenue from consumer banking and broad international operations.


Read more at Reuters.com Business News

Futures turn negative on employment report

(Reuters) - Dow Jones industrial average futures fell 27 points, and Nasdaq 100 futures lost 3.75 points.




Read more at Reuters.com Business News

Cocoa Gains on Speculation Adverse Weather Will Hurt Indonesia's Harvest

(Bloomberg) -- Cocoa gained for the first time in three
days in London on speculation adverse weather in Indonesia, the
world's third-biggest producer, will lead to a smaller harvest.

Production in Indonesia's Central Sulawesi province may fall
``more than 10 percent'' this year after floods and landslides
last month damaged plantations and cut off distribution, Herman
Agan, head of the local chapter of the Indonesian Cocoa
Association, said in a telephone interview yesterday.


Read more at Bloomberg Commodities News

Crude Oil Rises on Report Gunmen Attack Boats Near Nigerian Oil Terminal

(Bloomberg) -- Crude oil rose after a reported that
Nigerian gunmen attacked two boats near an offshore terminal in
the Niger delta.

At least three men were killed during the attack, the
British Broadcasting Corp. reported, citing unidentified
security officials. Since last year, about a quarter of oil
output in Nigeria, Africa's largest producer, has been halted by
militant attacks.


Read more at Bloomberg Commodities News