Asian Stocks Fall on Lower Metals, U.S. Earnings Concern; Toyota Declines

(Bloomberg) -- Asian stocks fell for the first time
in three days after metals prices dropped and earnings reports in
the U.S. suggested demand is cooling in the region's biggest
export market.

Toyota Motor Corp., the world's largest automaker by market
value, and James Hardie Industries NV, the No. 1 supplier of home
siding in the U.S., led declines on concern a housing slump is
harming growth in the world's biggest economy. BHP Billiton Ltd.,
the largest mining company, was set for its biggest slide in
almost two months.


Read more at Bloomberg Stocks News

Spain's Telefonica Raises 30 Billion Yen in Its First Samurai Bond Sale

(Bloomberg) -- Telefonica SA, Spain's biggest
telephone company, raised 30 billion yen ($247 million) selling
yen-denominated bonds in Japan for the first time.

Telefonica, based in Madrid, sold 15 billion yen of five-year
bonds which will pay interest of 2.11 percent, according to data
compiled by Bloomberg. The company also sold 15 billion yen of
floating-rate notes with the same maturity.


Read more at Bloomberg Bonds News

Yen Retreats From One-Month High; Speculation Japanese Individuals Selling

(Bloomberg) -- The yen retreated from a one-month
high against the dollar as Japanese individual investors took
advantage of a 1.4 percent rally yesterday to sell the currency
and buy higher-yielding assets.

The Japanese yen also pared gains against the Canadian
dollar on speculation the Bank of Japan will keep its overnight
lending rate at 0.5 percent tomorrow, encouraging so-called
carry trades. The yen surged yesterday as U.S. stocks slumped,
raising concern global fund managers will pare riskier holdings.


Read more at Bloomberg Currencies News

JGB futures surge, tracking rally in Treasuries

(Reuters) - Standard & Poor's fanned these fears, saying it might cut its
ratings on $12.1 billion of subprime mortgage-related debt on
expectations of an 8 percent drop in U.S. home prices and more
mortgage defaults, rattling financial markets.




Traders also said that after five sessions of selling, yield
levels appear to be attracting investors to buy.


Read more at Reuters.com Bonds News

Oil Trades Near 10-Month High After Gaining on Higher U.S. Gasoline Price

(Bloomberg) -- Crude oil was little changed in New
York, after rising yesterday as gasoline prices climbed on
speculation U.S. output of the fuel may slow due to unplanned
refinery shutdowns.

BP Plc closed the largest of three crude units at its
refinery in Whiting, Indiana, a person familiar with the plant
said July 9. The refinery, the biggest in the Midwest, supplies
consumers in the Chicago area. Refineries in Texas and Kansas
shut units last week. Refinery operating rates rose to 90 percent
of capacity in the week ended June 29 to meet demand.


Read more at Bloomberg Energy News

Australian Stocks Slide, Led by BHP, James Hardie on Metals, U.S. Concerns

(Bloomberg) -- Australian stocks fell for a second
day. BHP Billiton Ltd. led mining shares lower along with prices
of metals including copper and nickel.

James Hardie Industries NV led declines among companies with
U.S. earnings on increasing evidence a housing slump is depressing
profits in the world's largest economy.


Read more at Bloomberg Stocks News

UPDATE 2-Compuware says qtr only break even, shares slide

(Reuters) - LOS ANGELES, July 10 - Compuware Corp.'s
chief said on Tuesday he was "extremely disappointed" by its
break-even results in the latest quarter and that it would cut
costs further, sending the company's shares down 18 percent.




The business software developer said it expects to report a
break-even first quarter on sales of about $278 million. Wall
Street analysts, on average, had forecast a net profit of 12
cents on revenue of $301.6 million, according to Reuters
Estimates.


Read more at Reuters.com Market News

Nikkei may fall on Wall St. tumble, stronger yen

(Reuters) - NEC Corp. has also asked NEC Electronics Corp. to shoot for higher midterm sales and operating profit margin targets, the NEC Corp. president said on Tuesday.




"Today's market is likely to feel a big impact from the fall in U.S. stocks and the stronger yen, as it had risen on the reversed situation -- rising U.S. stocks and a softer yen," said Yutaka Miura, a deputy manager of the equity information department at Shinko Securities.


Read more at Reuters.com Business News

Exxon, OMV to Lead Exploration Efforts in New Zealand's Great South Basin

(Bloomberg) -- Exxon Mobil Corp., the world's
biggest oil company, and OMV AG, have been cleared to lead two
major exploration efforts off the southern coast of New Zealand.

Exxon is working with Todd Energy Ltd., the biggest New
Zealand-based oil company, Associate Energy Minister Harry
Duynhoven said today. OMV is leading a group including PTTEP
Exploration & Production Pcl and Mitsui & Co, he told journalists
at a press conference in Invercargill.


Read more at Bloomberg Energy News

New Zealand's Dollar Plunges Versus Yen as Investors Trim Riskier Bets

(Bloomberg) -- New Zealand's dollar fell to its lowest
in almost two weeks against Japan's currency as a decline in U.S.
stocks tied to concerns about subprime mortgages prompted traders
to unwind riskier bets.

So-called carry trades, where investors borrow cheaply in yen
to buy higher-yielding assets elsewhere, have boosted the New
Zealand dollar by 35 percent against the yen the past 12 months.
U.S. stocks fell for the first time in six days after Standard &
Poor's warned it may cut ratings on debt backed by subprime
mortgages because a U.S. housing slump is worse than it earlier
anticipated.


Read more at Bloomberg Currencies News

Perry Capital offers to buy stake in NEC Elec -paper

(Reuters) - The U.S. investment firm told NEC late on Tuesday it was
willing to buy 30.87 million shares in NEC Electronics for about
154 billion yen , or 5,000 yen a share, according
to the newspaper.




That would be a 65 percent premium on NEC Electronics'
average share price over the past three months, the Nikkei said.


Read more at Reuters.com Market News

UPDATE 2-US banks, brokers shares fall on subprime woes

(Reuters) - NEW YORK, July 10 - The shares of U.S. commercial
and investment banks fell on Tuesday after two bond rating
agencies started to downgrade billions of dollars of securities
backed by subprime bonds, triggering concerns that bond sales
and lending businesses could slow.




Declines were led by banks perceived to have high exposure
to mortgages and other fixed income businesses, including
Lehman Brothers Holdings Inc. , which fell 5 percent,
and Bear Stearns Cos. , which fell as much as 4.1
percent.


Read more at Reuters.com Bonds News

Compuware, Vital Images Shares Plunge; Tercica Advances: U.S. After-Hours

(Bloomberg) -- Compuware Corp. plunged in extended
U.S. trading after the software maker reported preliminary
first-quarter sales and earnings that missed analysts'
estimates.

Shares of the Detroit-based company dropped $2.17, or 18
percent, to $10 as of 6:52 p.m. in New York. Compuware said
sales totaled about $278 million in the period ended June 30.
The company said it will probably have break-even per-share
earnings for the quarter. Analysts on average estimated sales of
$302.9 million and profit of 10 cents a share, according to a
Bloomberg survey.


Read more at Bloomberg Stocks News

UPDATE 2-Dockers, Levi's help boost Levi Strauss' Q2 net

(Reuters) - LOS ANGELES, July 10 - Levi Strauss & Co.
reported a 14 percent rise in second-quarter earnings on
Tuesday, helped by strength in its Levi and Dockers brands in
the United States, as well as lower interest expense and
refinancing-related costs.




Net income rose to $45.7 million from $40.2 million a year
earlier. Net revenue increased 6 percent to $1.02 billion from
$960.8 million, the San Francisco-based company said.


Read more at Reuters.com Market News

Aeon, Kyocera, Ono Pharmaceutical, Tokushu Tokai: Japanese Equity Preview

(Bloomberg) -- The following stocks may move in
Japanese markets. Prices are as of the close of trading. Statements
were released after the close. Stock symbols are in parentheses.

Aeon Co. (8267 JT): Japan's largest supermarket operator said
first-quarter net income fell 38 percent to 8.02 billion yen ($65
million), mainly because of falling earnings at U.S. unit Talbots
Inc. Also, Aeon said it will ally with Maruetsu Inc. (8178 JT) and
Marubeni Corp. (8002 JT) in the procurement and development of
products to improve competitiveness in the Tokyo market. Aeon was
unchanged at 2,265 yen. Maruetsu added 2 yen, or 0.3 percent, to
595. Marubeni rose 16 yen, or 1.5 percent, to 1,110.


Read more at Bloomberg Stocks News

Moody's cuts second-lien subprime RMBS, raises others

(Reuters) - Moody's also upgraded 52 securities backed by second lien
RMBS.




Read more at Reuters.com Bonds News

Colombia trade deal too critical to fail: senator

(Reuters) - The Bush administration had hoped to win early approval of the Colombian free trade agreement, but it faces fierce opposition from U.S. labor groups closely tied to the Democratic Party.




Some Democrats in the House of Representatives want a vote delayed for one to two years so lawmakers can see whether Colombia has reduced violence against trade union members and thrown more killers in jail.


Read more at Reuters.com Bonds News

UPDATE 1-Strong oil prices, margins to boost Chevron earnings

(Reuters) - Analysts, on average, expect the company to post earnings
of around $2.17 a share, up from $2.10 a share last year.




The company said the price it received for oil in the first
two months of the quarter rose both domestically and
internationally compared with the first quarter. Still,
Chevron's prices declined from year earlier levels.


Read more at Reuters.com Market News

Marvell says interim CFO resigns

(Reuters) - Tate had agreed to remain with Marvell as its interim CFO
to see it "through a difficult period," the company said in a
statement.





Read more at Reuters.com Government Filings News

Adhesive blamed in Boston Big Dig tunnel collapse

(Reuters) - The $15 billion Big Dig highway and tunnel project -- the
costliest public works project in U.S. history -- has faced
construction problems and other controversy over the past two
decades.




Investigators found the construction industry had a
"general lack of understanding" about how the ceiling adhesive
would perform in the long term, and that the contractors on the
tunnel project failed to identify problems when they arose.


Read more at Reuters.com Bonds News

CORRECTED-U.S. atty in NY indicts 26 for mortgage fraud

(Reuters) - The superseding indictment added more than two dozen new
counts to the original indictment. Some of the defendants were
charged with obtaining millions of dollars in loans, partly to
pay for 10 rent-regulated condominium apartments at 243 West
98th Street on Manhattan's Upper West Side, Michael Garcia, the
U.S. attorney general for the Southern District of New York,
said in a statement.




Read more at Reuters.com Bonds News

UPDATE 1-U.S. atty in NY indicts 26 for mortgage fraud

(Reuters) - The new indictment added more than two dozen new counts to
an original indictment. Some defendants were charged with
obtaining millions of dollars in loans, partly to pay for 10
rent-regulated condominium apartments at 243 West 98th Street
on Manhattan's Upper West Side, Michael Garcia, the U.S.
attorney, said in a statement.




The probe, which included the Federal Bureau of
Investigation, Homeland Security and New York City Police
Commissioner Raymond Kelly, uncovered three new defendants,
including Galina Zhigun, who owns Brooklyn-based mortgage
brokerage AGA Capital NY, Inc. Many of the defendants worked
for Zhigun as mortgage brokers or loan processors.


Read more at Reuters.com Bonds News

Memory Pharmaceuticals files for $75 million shelf

(Reuters) - Under a shelf registration, a company may sell securities
in one or more separate offerings with the size, price and
terms to be determined at the time of sale.




Read more at Reuters.com Government Filings News

US lawmaker may seek to curtail Fed consumer powers

(Reuters) - Rep. Barney Frank, a Massachusetts Democrat and chairman of the House Financial Services Committee, said the Fed did not use its authority to curtail loans offered to borrowers with damaged credit during the recent housing boom and needs to set tougher lending standards or face losing some of its authority.




"The Fed has the authority under the Federal Trade Act to spell out consumer protection rules generally and they have not done that," Frank said, after a speech to the National Alliance to End Homelessness.


Read more at Reuters.com Bonds News

UPDATE 1-Sealy posts profit on higher international sales

(Reuters) - The maker of Sealy Posturepedic, Stearns & Foster and other
brands had earnings of $16.1 million for its fiscal second
quarter, or 17 cents a share, compared with profit of $126,000, or
break-even on a per-share basis a year earlier.




Sealy said quarterly sales climbed 6.7 percent to $401.8
million from $376.7 million during the year-earlier period.


Read more at Reuters.com Market News

ABC-Wash Post Consumer Comfort Index down to -9

(Reuters) - The measure ranges from -100 to +100. Its 2007 average is
-6.




Two of the three components of the survey were unchanged as
Americans' positive views on the national economy and the
buying climate held at 40 percent and 39 percent respectively.


Read more at Reuters.com Economic News

UPDATE 1-Moody's cuts 399 mortgage bonds, most tied to subprime

(Reuters) - The affected securities were issued in 2006 and are backed
mostly by first-lien adjustable and fixed-rate subprime loans.




Standard & Poor's, a rival credit-rating agency, said on
Tuesday it may soon cut ratings on $12.1 billion of
mortgage-related debt. For details, see [ID:nN10336254].


Read more at Reuters.com Bonds News

Buca Q2 comparable restaurant sales rise 3.7 pct

(Reuters) - Analysts on average were expecting revenue of $62.2
million, according to Reuters Estimates.





Read more at Reuters.com Market News

StoneMor Partners files for $115 mln shelf offering

(Reuters) - Under a shelf registration, a company may sell securities
in one or more separate offerings with the size, price and
terms to be determined at the time of sale.




Read more at Reuters.com Government Filings News

Canada Stocks Slip From Record, as Research in Motion Falls; Suncor Gains

(Bloomberg) -- Canadian stocks fell from a record, as
declining U.S. profits signaled that demand for Canadian exports
may slow and an increase in borrowing costs at home raised concern
that corporate expenses will climb.

Home Depot, the world's largest home improvement retailer,
said earnings will drop between 15 percent and 18 percent in the
fiscal year through Feb. 3. Canada's central bank lifted its
benchmark rate by one quarter point to 4.5 percent and signaled
further action may be needed.


Read more at Bloomberg Stocks News

S&P may cut ratings on $12.1 bln of subprime debt

(Reuters) - The move by S&P, a leading rater of corporate bonds, rattled global financial markets on fears the unfolding crisis stemming from risky home loans may have a wider impact on the economy and prompt investors to sell securities tied to so-called subprime debt.




S&P conceded that it failed to see the extent of losses when originally rating the debt, which include 612 residential mortgage securities. The agency said it is overhauling its methodology and reviewing its ratings of the $1 trillion market for debt structures known as collateralized debt obligations, or CDOs.


Read more at Reuters.com Bonds News

US STOCKS-Indexes slump on more housing weakness worries

(Reuters) - The Dow Jones industrial average was down 149.90
points, or 1.10 percent, to end unofficially at 13,500.07. The
Standard & Poor's 500 Index was down 21.79 points, or
1.42 percent, to finish unofficially at 1,510.06. The Nasdaq
Composite Index was down 30.86 points, or 1.16
percent, to close unofficially at 2,639.16.




Read more at Reuters.com Bonds News

Wheat Rebounds on Demand From Japan, Egypt, Prospects for Global Shortfall

(Bloomberg) -- Wheat rose in Chicago on demand for
U.S. grain from Japan and Egypt amid forecasts for the lowest
global inventories in 26 years.

Japan plans to buy 40,000 metric tons of U.S. varieties.
Egypt said it purchased 60,000 tons. Advance sales of U.S.
supplies for delivery before May 31 are up 22 percent from a
year earlier, Department of Agriculture data showed. Global
stockpiles may fall to 112 million tons by May 31, the lowest
since 1982, the U.S. agency said on June 11.


Read more at Bloomberg Commodities News

Oil Rises in New York Expectations of Decline in U.S. Gasoline Production

(Bloomberg) -- Crude oil rose, pulled higher by
gasoline on speculation that U.S. output of the fuel will slow
because of unexpected refinery shutdowns.

BP Plc closed the largest of three crude units at its
refinery in Whiting, Indiana, a person familiar with the plant
said yesterday. The refinery, the biggest in the Midwest,
supplies consumers in the Chicago area. Refineries in Texas and
Kansas shut units last week. The crude-oil market often follows
gasoline during the summer months, when motor-fuel demand peaks.


Read more at Bloomberg Energy News

Atlantic City gamblers lose $419.8 million in June

(Reuters) - The closing of the Sands last November is partly responsible for the lower revenue, but the Atlantic City's 12 casinos are also challenged by new competition from gaming venues in nearby Pennsylvania and a partial smoking ban.




Excluding the Sands figures, Atlantic City casino revenue increased 1.5 percent in June, the regulator said.


Read more at Reuters.com Bonds News

DepoMed, Lehman, Live Nation, Level 3, Natco, NovaStar: U.S. Equity Movers

(Bloomberg) -- The following is a list of companies
whose shares are having unusual price changes in U.S. exchanges
today. Stock symbols are in parentheses after company names.
Share prices are as of 2:45 p.m. New York time.

Shares of some U.S. securities firms and home-loan companies
declined after Standard and Poor's said it may cut ratings on $12
billion of bonds backed by subprime mortgages.


Read more at Bloomberg Stocks News

Treasuries Rise Most in Nearly a Month on Concern Over Subprime Mortgages

(Bloomberg) -- Treasuries advanced the most in
nearly a month after Standard & Poor's said it may cut credit
ratings on $12 billion of bonds backed by subprime mortgages,
sending investors to the safety of U.S. government debt.

Credit-default swaps, contracts used to speculate on a
company's ability to repay debt, rose to the highest premium in
more than a year in the U.S. and Europe. Stocks dropped on
concern the housing slump will hurt corporate earnings and slow
economic growth.


Read more at Bloomberg Bonds News

Michael Dell says long way to go for turnaround

(Reuters) - "We are making steady progress, but there is a lot to be done," he told reporters at a company event in New York.




In May, Dell said it planned to cut about 10 percent of its work force, which would translate into about 8,800 of its 82,800 permanent employees and 5,300 temporary staff. The cuts are expected to take place over the next year.


Read more at Reuters.com Business News

Alcoa gets $30 bln credit line to fund Alcan buy

(Reuters) - The move is yet another step in Alcoa's attempt to take over Alcan. In addition, the company has filed with some antitrust authorities and on Monday, it extended the expiration time of its offer until August 10 from July 10.




Alcan has rejected the $28.6 billion offer and its shares are trading above the offer price, indicating investors anticipate a higher offer from either Alcoa or a rival.


Read more at Reuters.com Bonds News

Short-term money-inflation link is weak -Bernanke

(Reuters) - Bernanke also said monetary policy was not a good tool to "pop" inflated asset prices.




Read more at Reuters.com Business News

Bernanke: Anchored expectations mute price swings

(Reuters) - Some analysts have suggested that policy makers may need to pay more attention to broad measures of inflation that include food and energy, given recent persistence of gains in these prices.




However, Bernanke appeared to firmly endorse the Fed's long-standing practice of focusing more heavily on core price measures in setting monetary policy.


Read more at Reuters.com Business News

Abercrombie & Fitch, Akamai, Comverse, Echelon, Unica: U.S. Equity Movers

(Bloomberg) -- The following is a list of companies
whose shares are having unusual price changes in U.S. exchanges
today. Stock symbols are in parentheses after company names.
Share prices are as of 1:10 p.m. New York time.

Abercrombie & Fitch Co. (ANF US) dropped $3.07, or 4.2
percent, to $69.97. The clothing retailer for teens and college
students was rated ``underweight'' in new coverage at Morgan
Stanley. Analyst Michelle Clark wrote in a note to clients that
the company faces rising clothing import costs and the absence of
a dominant fashion trend.


Read more at Bloomberg Stocks News

Mexican stocks fall hurt by U.S. economy concerns

(Reuters) - The benchmark IPC stock index dropped 0.89 percent
to 31,801 points, while the peso currency
weakened 0.21 percent to 10.7850 per dollar.




The United States' largest home improvement chain, Home
Depot Inc , roiled markets by lowering its 2007 earnings
outlook, while Standard and Poor's warned that it may cut the
credit ratings of $12 billion worth of bonds backed by subprime
loans.


Read more at Reuters.com Bonds News

U.S. Raises Oil Price Forecasts Because of Increased Demand, OPEC Cuts

(Bloomberg) -- The U.S. government increased its
estimated price for crude oil this year and in 2008 because of
rising fuel consumption and production cuts by the Organization
of Petroleum Exporting Countries.

West Texas Intermediate crude oil, the U.S. benchmark, will
average $65.56 a barrel this year, the Energy Department said in
its monthly Short-Term Energy Outlook. The forecast is up 2.3
percent from $64.06 estimated last month. Oil will average
$66.92 in 2008, up 3.2 percent from $64.83 in last month's
forecast.


Read more at Bloomberg Energy News

Genentech, Pepsi Bottling Group and Yum! Brands: U.S. Equity Option Movers

(Bloomberg) -- The following is a list of companies
with unusual option trading in U.S. exchanges today. Stock
symbols are in parentheses after company names. Option trading
and stock prices are as of 1:15 p.m. in New York.

Each call option gives investors the right to buy 100 shares
of a company at a certain price, called the strike price, by a
given date. A put conveys the right to sell 100 shares.


Read more at Bloomberg Stocks News

Bond Risk Soars to One-Year High as S&P Threatens Subprime CDO Downgrades

(Bloomberg) -- Corporate bond risk soared to the
highest in a year after Standard & Poor's said it may cut
ratings on $12 billion of subprime securities, according to
traders of credit-default swaps.

The CDX North American Investment-Grade Index of credit-
default swaps on 125 companies increased $3,000 to $46,000,
according to Phoenix Partners Group in New York, the highest
risk premium since June 2006. In Europe the iTraxx Crossover
Series 7 Index of 50 companies jumped as much as 24,500 euros to
271,000 euros, the biggest daily move in more than two years,
according to JPMorgan Chase & Co.


Read more at Bloomberg Bonds News

Liberty likely to seek rest of DirecTV shrs-analyst

(Reuters) - NEW YORK, July 10 - Liberty Capital , the holding group of media mogul John Malone, will likely seek full control of satellite operator DirecTV Group within 12 months, according to an analyst report.



"We see 75 percent chance that Liberty tenders for DirecTV within 12 months," said Citigroup analyst Jason Bazinet in a note to clients. "We believe Liberty could offer $30 per share."


Read more at Reuters.com Mergers News

UPDATE 2-Russia's Sistema 1st qtr net soars, stock slides

(Reuters) - MOSCOW, July 10 - Russian services group Sistema,
which owns Moscow's most famous toy shop, slightly beat earnings
forecasts on Tuesday with a fivefold rise in first quarter net
profit, boosted by the sale of its insurance business.




But Sistema shares still fell over 2 percent,
correcting a surge in the run up to the results, analysts said.


Read more at Reuters.com Mergers News

UPDATE 1-Credit derivatives sink on subprime, European weakness

(Reuters) - NEW YORK, July 10 - U.S. credit default swap
spreads hit their widest levels this year on Tuesday because of
fears of rating downgrades of subprime mortgage securities and
weakness in the European credit market, market sources said.




The investment-grade index widened about 2.5 basis points
to around 45.75 basis points, while an index of high-volatility
credits widened about 6 basis points to 112.25 basis points.


Read more at Reuters.com Bonds News

UPDATE 1-Israel's Voltaire files for $123.9 mln IPO

(Reuters) - In a filing with the U.S Securities and Exchange
Commission, the company said it will offer 5.8 million shares,
while selling shareholders will offer about 1.9 million, at an
expected price of between $12 and $14 per share.




Voltaire said it intends to use net proceeds to fund
research and development activities, repay a loan, acquire or
invest in complementary companies, products or technologies,
among others.


Read more at Reuters.com Bonds News