UPDATE 1-U.S. panel sets July 11 hedge funds risk hearing

(Reuters) - WASHINGTON, July 5 - The U.S. House of
Representatives Financial Services Committee said on Thursday
it will hold a July 11 hearing into systemic risks to the
economy and the financial system posed by hedge funds.




Chairman Barney Frank, a Massachusetts Democrat, said in a
statement that senior officials from the Federal Reserve, the
Treasury Department, the Securities and Exchange Commission and
the Commodity Futures Trading Commission are scheduled to
testify.


Read more at Reuters.com Government Filings News

Apple shares at new high on iPhone sales prospects

(Reuters) - Analyst estimates for iPhone sales in its first weekend run as high as 700,000 units, beating many investors' expectations, and some now expect the momentum to continue. The device went on sale last Friday.




AT&T Inc., the exclusive U.S. provider for the phone, said it had virtually sold out of the device in that time, though neither company has provided sales data.


Read more at Reuters.com Business News

TREASURIES-Strong data pummels bonds ahead of jobs report

(Reuters) - NEW YORK, July 5 - U.S. government bonds tumbled
on Thursday after strong data on jobs and services dimmed
remaining hopes of a Federal Reserve rate cut anytime soon,
while markets braced for Friday's monthly employment report.




The Institute for Supply Management's gauge of the service
sector hit its highest in over a year, while a report on
employment in the private sector showed surprising strength.
Both releases sent bonds lurching lower. For details, see
[ID:nN05325462].


Read more at Reuters.com Bonds News

US STOCKS-Nasdaq climbs on Apple, signs of growth

(Reuters) - NEW YORK, July 5 - The Nasdaq Composite rose on
Thursday as technology shares benefited from
stronger-than-expected economic data and Apple Inc.
shot to a record on expectations of strong sales momentum for
its iPhone.




But rising bond yields were a damper on the broader market,
leaving the Dow industrials and S&P 500 barely changed on the
day.


Read more at Reuters.com Bonds News

UPDATE 2-Fitch, S&P cut Hilton's rating on acquisition

(Reuters) - Another agency, Moody's Investors Service, said it may cut
Hilton's ratings and will base its decision on the company's
capital structure when the deal closes.




Blackstone agreed on Tuesday to buy Hilton for about $20
billion plus debt, the richest in a series of recent private
equity offers for hotel companies. For details see
[ID:nN03234692].


Read more at Reuters.com Mergers News

Healthways Q3 profit rises

(Reuters) - Net income rose to $10.8 million, or 29 cents a share, from $9.3 million, or 26 cents a share, a year ago.



Earnings from core commercial business rose to 43 cents a share from 30 cents a year ago, the healthcare services company said.


Read more at Reuters.com Market News

Peru Sol, Little Changed, May Gain as Miners, Other Exporters Pay Taxes

(Bloomberg) -- Peru's sol, little changed today, may
gain in coming days as mining companies and other exporters sell
dollars to pay monthly income taxes.

The sol was little changed at 3.1655 per dollar, leaving it
up 0.9 percent this year.


Read more at Bloomberg Currencies News

UPDATE 1-Advanced Medical bids $75/shr for Bausch&Lomb--WSJ

(Reuters) - Advanced Medical's offer is valued at $75 a share, of which
$45 is in cash and $30 in stock, according to the Wall Street
Journal report, which appeared on the Dow Jones newswire on
Thursday and cites people familiar with the situation.




The offer compares with the $65-per-share Warburg Pincus
offer, made in May.


Read more at Reuters.com Mergers News

Cotton Rises for Fourth Session on China's Imports, Drop in U.S. Plantings

(Bloomberg) -- Cotton rose a fourth-straight session
in New York, extending a rally to a three-year high, on
speculation China will boost imports as U.S. farmers plant less
of the fiber.

The U.S. will ship 32 percent more cotton in the year
starting Aug. 1 as China supplies its growing textiles industry,
the International Cotton Advisory Committee said July 2. U.S.
farmers planted 28 percent less land with cotton this year than
last, the Department of Agriculture said June 29.


Read more at Bloomberg Commodities News

Fate of BCE management still undecided -Teachers'

(Reuters) - "We're just completely focused now on the transaction and
getting through the shareholder and regulatory approvals,"
Deborah Allan said, adding: "There is no plan."




A consortium led by Teachers', which includes U.S.-based
Providence Equity Partners and Madison Dearborn Partners, was
the winning bidder for BCE, Canada's biggest telecom company,
with a C$34.8 billion all-cash offer last week.


Read more at Reuters.com Mergers News

Oil Rises to 10-Month High on Nigerian Supply Concern, U.S. Fuel Shortfall

(Bloomberg) -- Crude oil rose to a 10-month high, on
concern that unrest in Nigeria may curb oil shipments and
unexpected shutdowns at U.S. refineries will cut fuel production.

Nigerian gunmen kidnapped a three-year-old daughter of a
British expatriate on her way to school in the southern oil city
of Port Harcourt, a police spokesman said. Five contractors were
seized yesterday from a rig operated by Royal Dutch Shell Plc's
Nigerian venture. Futures pared gains after the Energy Department
reported that U.S. oil and fuel supplies rose last week.


Read more at Bloomberg Commodities News

Cablevision, GM, Hilton, Huntsman, Samsonite, Tefron: U.S. Equity Movers

(Bloomberg) -- The following is a list of companies
whose shares are having unusual price changes on U.S. exchanges.
Stock symbols are in parentheses after company names. Share
prices are as of 2:40 p.m. in New York.

ACR Group Inc. (BRR US) jumped $2.02, or 44 percent, to
$6.62. Watsco Inc. (WSO US), the largest U.S. distributor of
heating and cooling systems, agreed to buy rival ACR for $81.7
million to expand in states including Texas, Florida and
California. Watsco rose $2.17, or 3.9 percent, to $57.69.


Read more at Bloomberg Stocks News

Chile stocks fall as rate hikes loom, peso edges up

(Reuters) - Government data reported on Thursday showed Chile's
economic activity index grew a less-than-expected 4.8
percent in May.




Analysts said the figures were not weak enough to dispel
predictions, based on Wednesday's stronger-than-expected June
inflation figure, that the central bank will soon raise its
benchmark interest rate, a move that would reduce stock
valuations.


Read more at Reuters.com Bonds News

Fitch cuts Hilton's debt rating on acquisition

(Reuters) - Terms are not yet final, but the deal is likely to result
in a substantial increase in leverage, Fitch said in a
statement.




Fitch cut Hilton's issuer rating by four notches to "B,"
the fifth-highest junk rating, from "BB-plus."


Read more at Reuters.com Bonds News

Canadian Technology Stocks Gain, Led By Research In Motion; Banks Decline

(Bloomberg) -- Canadian technology stocks gained, led
by Research In Motion Ltd., on a report that the company obtained
permission to sell its BlackBerry e-mail phone in China.

Manulife Financial Corp. fell on the prospect that rising
borrowing costs will hurt banks and insurers.


Read more at Bloomberg Stocks News

Dura Automotive to sell Atwood unit for $160 mln

(Reuters) - Dura said Atwood Acquisition LLC, an affiliate of private equity firm Insight Equity, expects to complete the deal by the end of August.




A minimum rival bid would have to exceed $166.5 million, according to court papers. The deal includes a breakup fee of 2 percent of the purchase price and expense reimbursements of up to 1 percent of the purchase price.


Read more at Reuters.com Business News

REFILE-US HIGH YIELD-Market turmoil may spell end to easy money

(Reuters) - NEW YORK, July 5 - The lending window in the U.S.
junk bond market may still be open, but a shift to stricter
standards is likely here to stay, making it harder for private
equity firms to finance record-breaking buyouts.




Following a tumultuous two weeks in which several junk bond
sales were pulled or terms sweetened to draw buyers, all eyes
will be on a spate of bond sales expected after this week's
Fourth of July holiday hiatus for a clue to the appetite for
risky debt.


Read more at Reuters.com Bonds News

Copper Futures Gain for Sixth Session on Strikes, Inventory Speculation

(Bloomberg) -- Copper rose for a sixth straight
session in New York, extending a rally to a seven-week high, on
speculation supplies will be disrupted by mine strikes in Latin
America as stockpiles dwindle to 10-month lows.

Mexico's National Mining and Metal Workers Union began a
one-day strike today to press for better safety in mines, a
spokeswoman said. Copper stockpiles monitored by the London Metal
Exchange fell 2.2 percent to 107,950 tons, the exchange said
today, the lowest level since Aug. 10. Copper futures have risen
25 percent this year as inventories slumped 41 percent.


Read more at Bloomberg Commodities News

UPDATE 1-Moscow court delays $22.5 bln Bank of NY lawsuit

(Reuters) - NEW YORK, July 5 - A Moscow court on Thursday
delayed a hearing into a $22.5 billion lawsuit by Russia's
federal customs service against Bank of New York Mellon Corp.
after the bank submitted new documents in its defense, a
lawyer for the plaintiff said.




"They insist they are not representatives of the
organization that we identified in the suit," the lawyer, Maxim
Smal, said in an interview, referring to the bank. "We had to
ask for time to familiarize ourselves with the documents."


Read more at Reuters.com Mergers News

Mexico markets edge lower as hopes of Fed cut fade

(Reuters) - In the debt market, the price of the benchmark government
10-year peso bond slipped 0.191 point to bid
102.039, pushing its yield up 3 basis points to 7.67 percent.




ADP Employer Services said U.S. private employers likely
added more jobs in June than analysts had expected, while the
Institute for Supply Management's services index for June came
in above forecast at its highest level since April 2006.


Read more at Reuters.com Bonds News

ACR, GM, Hilton Hotels, MGM Mirage, Penson, Wyndham: U.S. Equity Movers

(Bloomberg) -- The following is a list of companies
whose shares are having unusual price changes on U.S. exchanges.
Stock symbols are in parentheses after company names. Share
prices are as of 1:15 p.m. in New York.

ACR Group Inc. (BRR US) jumped $2.01, or 44 percent, to
$6.61. The company, which sells air-conditioning, heating, and
refrigeration equipment, agreed to be bought by Watsco Inc. (WSO
US) for $6.75 a share. Watsco rose $2.03, or 3.7 percent, to
$57.55.


Read more at Bloomberg Stocks News

UPDATE 1-Watsco to buy ACR Group for $6.75/shr

(Reuters) - Shares of ACR Group rose more than 42 percent to $6.61 in
afternoon trade on the American Stock Exchange, while those of
Watsco rose about 4 percent to $57.64.




Coconut Grove, Florida-based Watsco said ACR will add 54
locations in its network in key heating, ventilation and air
conditioning markets.


Read more at Reuters.com Mergers News

U.S. SEC's country watch list draws fire

(Reuters) - Both business and humanitarian groups say the list,
available on the U.S. Securities and Exchange Commission's Web
site, is ill-conceived. The tool provides links to companies
whose annual reports contain "some reference" to business
related to Sudan, Syria, North Korea, Iran and Cuba.




"Not only has the SEC named and shamed the wrong companies,
it's missed many with significant operations in countries like
Sudan," Adam Sterling, director of the Sudan Divestment Task
Force, and Todd Malan, president and CEO of the Organization
for International Investment, wrote in an opinion piece in
Thursday's Wall Street Journal.


Read more at Reuters.com Government Filings News

UPDATE 1-Calif. urges power conservation during heat wave

(Reuters) - The power grid managed by the California Independent System
Operator is expected to hold without causing outages or calls
for involuntary cuts to electricity service, said Gregg Fishman,
spokesman for the Cal ISO.




Wednesday was a scorcher for much of the state but with
offices mostly shut for the holiday, power delivery systems were
not tested.


Read more at Reuters.com Bonds News

Brazil stocks slip after record, currency falls

(Reuters) - The Brazilian currency, the real , weakened 0.21
percent to 1.915 per U.S. dollar.




Interest rates futures <0#DIJ:> on the BM&F futures
exchange in Sao Paulo were mostly higher as traders bet on
capital outflows.


Read more at Reuters.com Bonds News

ABN, ING merger talks broke down on price-report

(Reuters) - ING said in April that it looked at buying ABN in November
and had hired advisors, but decided not to pursue a merger with
its Dutch rival. At the time ABN's shares traded at around 23
euros.




In an interview with Dutch magazine Forum, ABN CEO Rijkman
Groenink said that ABN's share price had risen about 20 percent
during talks with ING, while ING's shares declined 10 percent,
making a merger less attractive.


Read more at Reuters.com Mergers News

Gazprom-Shell Venture Tests Russia's First Liquefied-Gas Processing Plant

(Bloomberg) -- An OAO Gazprom and Royal Dutch Shell
Plc joint venture said they started testing a liquefied natural
gas plant at Sakhalin, eastern Russia, a further step toward the
country's first LNG export sales, scheduled for 2008.

The LNG facility at the Sakhalin-2 project will be
commissioned, or tested, using gas from Shell's LNG tanker
Granosa, which docked at the plant's jetty in Prigorodnoye
earlier today, the Sakhalin Energy Investment Co. venture said
in a statement.


Read more at Bloomberg Energy News

ACR Group, Champps, GM, Host Hotels, Penson, Wyndham: U.S. Equity Movers

(Bloomberg) -- The following is a list of companies
whose shares are having unusual price changes on U.S. exchanges.
Stock symbols are in parentheses after company names. Share
prices are as of 11:40 a.m. in New York.

ACR Group Inc. (BRR US) jumped $2.01, or 44 percent, to
$6.61. The company, which sells air-conditioning, heating, and
refrigeration equipment, agreed to be bought by Watsco Inc. (WSO
US) for $6.75 a share. Watsco rose $2.08, or 3.8 percent, to
$57.60.


Read more at Bloomberg Stocks News

WRAPUP 2-US jobs market picks up steam as service sector rises

(Reuters) - NEW YORK, July 5 - Growth in the U.S. service
sector rose unexpectedly in June, while the job market also
appeared to pick up some steam, according to reports on
Thursday that signaled strength in the economy.




The Institute for Supply Management's services index rose
to 60.7 in June from 59.7 in May. Analysts had expected the
index to ease to 58.0.


Read more at Reuters.com Economic News

E.ON Says Revenue From Emissions-Permits Sales Should Be Used to Cut Taxes

(Bloomberg) -- E.ON AG, Germany's biggest power
utility, said revenue from auctions of European Union carbon
dioxide permits should be used to curb energy taxes.

A German decision this year to auction some permits instead
of giving them all away for free was a ``step in the right
direction,'' E.ON said today in an e-mailed statement. ``Uniform
auctioning must be introduced throughout Europe.''


Read more at Bloomberg Energy News

WestJet boosts load factor, capacity in June

(Reuters) - Its capacity, measured by available seat miles, rose to
1.17 billion from a year-earlier 1 billion. Revenue passenger
miles climbed 21 percent to 940.3 million.




Year to date, WestJet's load factor is up 2.6 percentage
points to 81 percent.


Read more at Reuters.com Market News

Sawiris Might Sell Wind's Italian Telephone-Tower Unit for $2 Billion

(Bloomberg) -- Egyptian billionaire Naguib Sawiris
may sell the Italian telephone towers held by his Wind
Telecomunicazioni SpA wireless business to help cut debt, said
three people with knowledge of his plans.

Sawiris's Weather Investments Srl contacted investment banks
and may name an adviser on the potential sale soon, said the
people, who asked not to be identified because the talks are
confidential. The towers are valued at 1 billion to 1.5 billion
euros ($2 billion) at a minimum, one of the people said.


Read more at Bloomberg Exclusive News

Copper Futures Gain for Sixth Session on Labor Unrest in Mexico, Chile

(Bloomberg) -- Copper rose for a sixth straight
session in New York, extending a rally to a seven-week high, on
speculation supplies will be disrupted by mine strikes in Mexico
and Chile as stockpiles dwindle to 10-month lows.

Mexico's National Mining and Metal Workers Union plans a
one-day strike today to press for better safety in mines, a
spokeswoman said. Copper stockpiles monitored by the London Metal
Exchange fell 2.2 percent to 107,950 tons, the exchange said
today, the lowest level since Aug. 10. Copper futures have risen
25 percent this year partly as inventories slumped 41 percent.


Read more at Bloomberg Commodities News

Canada's Dollar Approaches 30-Year High as Building Permits Reach Record

(Bloomberg) -- Canada's dollar approached a 30-year
high after a report showed building permits climbed 21 percent
in May to a record.

A strengthening economy fuels speculation that the Bank of
Canada may raise interest rates more than once. Policy makers
next meet on July 10. The currency traded at 94.57 U.S. cents at
9:09 a.m. in Toronto. One U.S. dollar buys C$1.0573. The
Canadian dollar reached a 30-year high of 95.51 cents on June
29.


Read more at Bloomberg Currencies News

AMR, UAL to book gains from ARINC sale

(Reuters) - CHICAGO, July 5 - AMR Corp. said on Thursday that unit American Airlines is expected to record a gain of about $140 million from the sale of shares in ARINC to an affiliate of Carlyle Group [CYL.UL].



The sale of its stake in ARINC, a provider of transportation communications and systems engineering, is expected to close by Oct. 31. AMR said it expects to receive proceeds of about $194 million.


Read more at Reuters.com Mergers News

UPDATE 1-UniCredit faces hurdles in Polish talks-sources

(Reuters) - MILAN, July 5 - Italian bank UniCredit
is having a rough time clinching a deal to sell 200 bank outlets
in Poland as its counterpart GE Money maintains a tough
negotiating line, sources close to the talks said on Thursday.
In April, UniCredit entered exclusive talks with GE Money,
the financial arm of U.S. giant General Electric , to sell
200 BPH bank branches along with the BPH brand and
said at the time that a deal could be sealed in May.
But more than two months after the start of negotiations, a
deal is not yet in sight, meaning UniCredit risks delaying the
planned merger of the remaining BPH outlets into its other
Polish unit Bank Pekao .




"The Americans are playing hard ball," a source told
Reuters. "They know UniCredit is in a difficult situation and
that it wants to close this deal soon."


Read more at Reuters.com Mergers News

CardioTech to sell unit to Medos Medizintechnik for $7.5 mln

(Reuters) - Wilmington, Massachusetts-based CardioTech said it expects
to gain about $6 million in cash from the sale, after estimated
transaction costs of $500,000 and an escrow funding.




The sale is expected to close on or about July 9,
CardioTech said.



Read more at Reuters.com Mergers News

Treasuries Drop Most in Three Weeks on Increases in U.S. Hiring, Services

(Bloomberg) -- Treasuries declined the most in three
weeks after private reports showed the U.S. added more jobs last
month than economists forecast and services industries
unexpectedly accelerated.

Demand for U.S. government debt fell as the risk of holding
European corporate bonds dropped and concern over terrorist
incidents in the U.K. eased. A Labor Department report tomorrow
may increase speculation a stronger job market is increasing the
risk inflation will accelerate.


Read more at Bloomberg Bonds News

Italian Stocks Fall on Rate Concerns, Paced by Intesa Sanpaolo, Alitalia

(Bloomberg) -- Italian stocks fell for the first day
in six, led by Intesa Sanpaolo SpA, Italy's second-biggest bank,
on concerns interest rates will keep rising.

Alitalia SpA declined after Il Sole reported that some of
the banks funding Air One's bid for the national carrier may
drop out of the group.


Read more at Bloomberg Stocks News

U.S. Stocks Decline as Bond Yields Jump; GM, Financial Shares Lead Retreat

(Bloomberg) -- U.S. stocks fell for the first time
this week, led by financial shares, after a rise in Treasury
yields raised concern investors will buy bonds to lock in an
improving rate of return.

General Motors Corp., the biggest U.S. automaker, slid after
reporting a drop in U.S. sales last month. Bank of America Corp.,
JPMorgan Chase & Co. and Goldman Sachs Group Inc. led banks to
the steepest decline in the Standard & Poor's 500 Index.


Read more at Bloomberg Stocks News

Randgold to upgrade Ivorian mine, seeks output rise

(Reuters) - African miner Randgold Resources expects to upgrade planned production at its new mine in Ivory Coast, helping the firm to boost output by over 50 percent by 2011, its chief executive said on Thursday.

The firm, currently operating two mines in Mali, plans to ramp up production to around 650,000 ounces a year by 2011 from 400,000 ounces currently, CEO Mark Bristow told a presentation.


Read more at Reuters Africa

Carphone Warehouse Delays Debut Bond Sale, Citing Debt Market Volatility

(Bloomberg) -- Carphone Warehouse Group Plc, Europe's
largest mobile-phone retailer, postponed its debut sale of bonds
because of market volatility.

``We tested the water and the water was a bit cold,''
Peregrine Riviere, the London-based company's head of investor
relations, said in an interview today. ``We'll come again when
the market looks better.''


Read more at Bloomberg Bonds News

Treasuries Fall Most in Three Weeks as Private Jobs Report Beats Forecast

(Bloomberg) -- Treasuries fell the most in three
weeks after a private report showed companies in the U.S. added
more jobs last month than economists forecast, reducing the
likelihood of a cut in borrowing costs by the Federal Reserve.

Investors also sold government debt after the U.K. reduced
its terror alert and the U.S. Independence Day holiday passed
without incident, easing demand for the safety of government
debt. A Labor Department report tomorrow may increase
speculation a stronger job market is increasing the risk
inflation will accelerate.


Read more at Bloomberg Bonds News

U.S. jobless claims rose 2,000 last week

(Reuters) - Wall Street analysts had forecast a rise in claims to
315,000 from an initial reading of 313,000 in the week ended
June 23.




The closely watched four-week moving average, which
flattens the more volatile weekly fluctuations, rose for the
sixth straight week to its highest level since April 28. The
four-week average rose to 318,500 from 316,750.


Read more at Reuters.com Economic News

RPT-US services growth rises unexpectedly in June -ISM

(Reuters) - The Institute for Supply Management's services index rose
to 60.7 in June from 59.7 in May. The median forecast among
analysts polled Reuters was 58.0. A number above 50 indicates
growth in the sector.




Read more at Reuters.com Economic News

UPDATE 1-Canada purchasing activity jumps in June-Ivey

(Reuters) - The index, the joint project of the Purchasing Management
Association of Canada and the Richard Ivey School of Business,
rose to 67.4 in June from 62.7 in May.




A reading of 50.0 indicates that activity remained flat
from the preceding month, while a higher reading indicates an
increase and a lower reading reflects a slowing or decrease.


Read more at Reuters.com Economic News

Australian Dollar Rises to Highest in 18-Years on Attraction of Yields

(Bloomberg) -- The Australian dollar rose to an 18-
year high against the U.S. currency and the strongest in 16
years versus the yen as investors were attracted to the nation's
high-yielding assets.

The Australian currency has advanced 12 percent against the
yen this year as traders borrow in Japan, where the benchmark
interest rate is 0.5 percent, to fund investments elsewhere.
Australia's key borrowing cost is 6.25 percent. Stocks rose in
Asia and Europe, prompting investors to buy riskier assets.


Read more at Bloomberg Currencies News

Chile's Peso Weakens on Lower-Than-Expected Economic Expansion During May

(Bloomberg) -- Chile's peso weakened after the
economy expanded at a lower-than-expected rate in May, reducing
the likelihood of an interest rate increase next week.

Chile's economy grew 4.8 percent in May from a year
earlier, the central bank said today on its Web site. South
America's fifth-biggest economy grew less than the 5.5 percent
median forecast in a Bloomberg survey of 16 economists. Chile's
economy expanded 6.6 percent in April.


Read more at Bloomberg Currencies News

US STOCKS-Futures inch higher on M&A, data eyed

(Reuters) - NEW YORK, July 5 - U.S. stock futures edged
higher on Thursday, boosted by takeover news, but investors
were cautious before economic data that could give clues on the
outlook for interest rates.




Shares of Hilton Hotels Corp. rose 30 percent to
$47 before the bell after U.S. private equity firm Blackstone
Group on Tuesday agreed to buy the company for about $20
billion plus debt. For details, see [ID:nN03234692].


Read more at Reuters.com Bonds News

UPDATE 1-Concho registers IPO at $14-$16/shr price band

(Reuters) - In an amended filing with the U.S. Securities and Exchange
Commission, the company said it plans to sell about 13.3
million shares, while some stockholders will sell the remaining
about 7.9 million shares.




Midland, Texas-based Concho said it has been authorized to
apply for listing on the New York Stock Exchange under the
symbol "CXO."


Read more at Reuters.com Bonds News

BAE, Cadbury, Ladbrokes, Lloyds and Xstrata: U.K., Irish Equity 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 the market close yesterday.

The benchmark FTSE 100 Index advanced 33.30, or 0.5 percent,
to close at 6673.10 in London as 80 stocks rose, 21 fell and one
was unchanged. The FTSE All-Share Index gained 18.04, or 0.5
percent, to 3445.33.


Read more at Bloomberg Stocks News