Goldman, JPMorgan Get Stuck With LBO Debt They Can't Sell to Investors

(Bloomberg) -- Goldman Sachs Group Inc., JPMorgan
Chase & Co. and the rest of Wall Street are stuck with at least
$11 billion of loans and bonds they can't readily sell.

The banks have had to dig into their own pockets to finance
parts of at least five leveraged buyouts over the past month
because of the worst bear market in high-yield debt in more than
two years, data compiled by Bloomberg show.


Read more at Bloomberg Exclusive News

Wells Fargo profit rises 9 pct to record

(Reuters) - NEW YORK, July 17 - Wells Fargo & Co. , the fifth-largest U.S. bank, said on Tuesday second-quarter profit rose 9 percent, as growth in several fee categories offset a decline in mortgage banking income.



Net income for the San Francisco-based company increased to a record $2.28 billion, or 67 cents per share, from $2.09 billion, or 61 cents, a year earlier. Revenue rose 13 percent to $9.89 billion.


Read more at Reuters.com Market News

Russian Stocks Fall After U.K. Expels Diplomats; Gazprom Leads the Decline

(Bloomberg) -- Russian stocks dropped for the first
time in five days after the U.K. expelled four Russian
diplomats, adding to political tensions between the two
countries. OAO Gazprom led the retreat.

``Politics is certainly affecting sentiment,'' said Julian
Rimmer, head of sales trading at UralSib Financial Corp. in
London.


Read more at Bloomberg Emerging Markets News

Yen Approaches Record Low Versus Euro as Rising Stocks Spur Carry Trades

(Bloomberg) -- The yen dropped to near a record low
versus the euro and the weakest since 1992 against the pound as
concern eased that losses will mount in securities backed by
subprime mortgage loans.

Investors pushed the yen lower as U.S. stocks advanced on a
better-than-expected earnings report from Merrill Lynch & Co.,
the third-biggest U.S. securities firm, cooling speculation that
U.S. financial companies would be hurt by losses in subprime
debt. Rallying stocks encouraged buying of risky assets funded
by loans in Japan, a strategy known as the carry trade. The yen
also fell versus the dollar.


Read more at Bloomberg Currencies News

TREASURIES-Bonds slip on PPI jump, firmer Wall St

(Reuters) - NEW YORK, July 17 - U.S. Treasury debt prices
fell on Tuesday as a gauge of producer prices rose more than
forecast and stronger earnings raised the possibility of a
firmer open on Wall Street.




Industrial output also came in higher than estimates,
rising 0.5 percent and making any interest rate cut by the
Federal Reserve appear even less likely this year.


Read more at Reuters.com Bonds News

Atlanta Fed names new research director

(Reuters) - His start date is being determined.




Read more at Reuters.com Bonds News

Oil Rises to $75 in New York on Expectations Refineries to Use More Crude

(Bloomberg) -- Crude oil rose above $75 a barrel in
New York for the first time in more than 11 months on
expectations that U.S. demand will rise as refiners bolster
gasoline production.

Valero Corp., Exxon Mobil Corp. and BP Plc, three of the
four biggest U.S. refiners, started up units over the past week.
A government report tomorrow may show that U.S. oil supplies
fell last week as refineries increased production. Iran, OPEC's
second-biggest producer, said there was no need for the group to
hold an emergency meeting.


Read more at Bloomberg Commodities News

Strauss-Kahn to make lobbying trip on IMF candidacy

(Reuters) - Dominique Strauss-Kahn, the French candidate to head the International Monetary Fund, said on Tuesday he would tour key world capitals in the North and South to convince IMF members of his merits.

European Union countries have said they support Strauss-Kahn's candidature to head the body, but many countries in the developing world question the tradition that a European heads the IMF and an American leads the World Bank.


Read more at Reuters Africa

U.K. Stocks Decline, Paced by BHP Billiton, Lonmin; Tate & Lyle Rallies

(Bloomberg) -- U.K. stocks fell for a second day,
paced by BHP Billiton Ltd. after Deutsche Bank AG downgraded the
shares and metal prices retreated. Lonmin Plc dropped to a one-
month low.

Rolls-Royce Group Plc and Kelda Group Plc declined as
brokerages lowered their recommendations for the companies'
stocks. Reed Elsevier Plc dropped after it agreed to sell
Harcourt Education for $4 billion. Tate & Lyle Plc surged after
Goldman, Sachs & Co. said investors should buy the shares.


Read more at Bloomberg Stocks News

American Express, Assurant, IPC, Lyondell, Nautilus: U.S. Equity Preview

(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 9:35 a.m. New York time.

American Express Co. (AXP US) rose $2.35, or 3.8 percent, to
$64.23. The No. 4 U.S. credit-card issuer was upgraded to ``buy''
from ``neutral'' at Goldman, Sachs & Co., which said its card-
network business was ``undervalued'' compared with its rivals.


Read more at Bloomberg Stocks News

Metabasis diabetes drug fails trial; shares plunge

(Reuters) - The diabetes drug, CS-917, failed to significantly lower glycosylated hemoglobin, a measure of glucose load, in patients with type 2 diabetes, the most common form of the disease.




"We are surprised and disappointed by the results we have seen so far in this important Phase 2b clinical trial," Dr. Mark Erion, executive vice president of research and development, said in a statement.


Read more at Reuters.com Hot Stocks News

UPDATE 1-Polaris profit beats Street view as margins rise

(Reuters) - Net income rose to $22.7 million, or 62 cents per share,
from $20.6 million, or 48 cents per share, a year earlier.




Profit from continuing operations came to 62 cents per
share, topping analysts' average forecast of 58 cents as
compiled by Reuters Estimates.


Read more at Reuters.com Market News

Novartis aims to resubmit Galvus in U.S. n 2009

(Reuters) - Novartis expects to start a new study in the fourth-quarter this year.



"It will likely take until at least the end of 2008 to complete," Novartis pharma development head James Shannon said on a conference call. "And then we would propose to resubmit the dossier to the FDA sometime in mid-2009."


Read more at Reuters.com Government Filings News

Ford's China 2007 vehicle shipments seen up 30 pct

(Reuters) - Ford is expected to ship 300,000 to 350,000 vehicles to dealers in the country this year, up from 260,000 to 270,000 units in 2006, the source said.




Ford declined to comment on the matter.


Read more at Reuters.com Business News

Rebel investor seeks to turn up heat on Vodafone

(Reuters) - "At last Vodafone seems to have recognized that it must have a coherent strategy for its investment in Verizon Wireless," ECS Chairman Glenn Cooper said in a statement.




"The ill-conceived plans leaked to the Financial Times show Vodafone does not have one."


Read more at Reuters.com Business News

TREASURIES-Bonds slip on PPI jump, stubborn Wall St

(Reuters) - NEW YORK, July 17 - U.S. Treasury debt prices
fell on Monday as producer prices rose more than forecast and
stronger earnings raised the possibility of a firmer open on
Wall Street .




Wholesale inflation outside food and energy, tracked by the
Federal Reserve, surged 0.3 percent in June. This brought
year-on-year price gains to 1.8 percent from 1.6 percent, and
should keep policy-makers on edge about lower interest rates.


Read more at Reuters.com Bonds News

Markets inured to Anglo-Russian friction -analysts

(Reuters) - Russian stocks shed 1 percent after Britain escalated its
response to Russia's refusal to extradite Andrei Lugovoy, the
prime suspect in the fatal poisoning last year of emigre
Alexander Litvinenko.




State-controlled oil firm Rosneft scrapped a $2
billion Eurobond, blaming volatile markets and preferring to
wait to refinance some of its $22 billion in short-term debt.


Read more at Reuters.com Bonds News

WRAPUP 1-Upside core PPI surprise reinforces rates outlook

(Reuters) - The U.S. producer price index, a gauge of prices paid at
the farm gate and factory door, declined by 0.2 percent last
month after shooting up by 0.9 percent in May, the first
decline since January.




But after stripping out volatile food and energy costs,
core prices in June climbed 0.3 percent after gaining 0.2
percent in May. Gasoline prices dropped 3.9 percent, the
biggest decline since a 13 percent plunge in January. That
trend has since been reversed as crude oil has surged to 11
month highs in July and gasoline prices have rebounded.


Read more at Reuters.com Bonds News

Foreign Buying of U.S. Assets Unexpectedly Surges to Record $126.1 Billion

(Bloomberg) -- Foreign buying of U.S. financial
assets unexpectedly climbed to a record in May as international
investors snapped up American stocks and corporate bonds.

Total holdings of equities, notes and bonds climbed a net
$126.1 billion, from $80.3 billion the previous month, the
Treasury said today in Washington. The demand for stocks and
bonds more than offset a second straight month of sales by China
of its holdings of Treasuries.


Read more at Bloomberg Bonds News

Plains Exploration to Buy Pogo Producing for $3.6 Billion in Cash, Stock

(Bloomberg) -- Plains Exploration & Production Co.,
a U.S. oil and natural-gas producer, agreed to acquire Pogo
Producing Co. for about $3.6 billion in cash and stock.

Pogo stockholders will receive 0.68201 share of Plains
Exploration and $24.88 in cash for each of their shares,
according to a statement today from Houston-based Plains
Exploration.


Read more at Bloomberg Energy News

Rand Trades Near Two-Week High Versus Dollar on Concerns About U.S. Growth

(Bloomberg) -- South Africa's rand traded near a
two-week high against the dollar on speculation a slowdown in the
U.S. housing market will spill over to the rest of the economy.

The rand yesterday touched its highest since July 3,
supported by investors seeking out South Africa's 9.5 percent
interest rate in trades funded by borrowing Japanese yen or Swiss
francs more cheaply. The dollar traded near a record low against
the euro today before reports that are expected to show inflation
and home building slowed.


Read more at Bloomberg Currencies News

Tel Aviv Bourse May Agree to Partial Sale, Foreign Partnership, Chief Says

(Bloomberg) -- The Tel Aviv Stock Exchange may be
partly sold to a foreign bourse or financial institution in a
bid to win more overseas investment, Chief Executive Officer
Ester Levanon said.

The Israeli exchange, which has a market value of about 861
billion shekels ($201 billion), may also seek to buy stakes in
one or more international stock exchanges, Levanon said in an
interview at the bourse's Tel Aviv headquarters today. The TASE
isn't interested in being acquired or merging with another
bourse, she said.


Read more at Bloomberg Emerging Markets News

Russian Stocks End Four-Day Gain as U.K. Expels Diplomats; Gazprom Falls

(Bloomberg) -- Russian stocks dropped for the first
time in five days after the U.K. expelled four Russian
diplomats, adding to political tensions between the two
countries. OAO Gazprom led the retreat.

``Politics is certainly affecting sentiment this morning,''
said Julian Rimmer, head of sales trading at UralSib Financial
Corp. in London.


Read more at Bloomberg Stocks News

U.S. Stock Futures Decline After Gauge of Wholesale Inflation Advances

(Bloomberg) -- U.S. stock-index futures declined
after a gauge of wholesale inflation rose more than forecast,
spurring concern that higher prices will hinder economic
growth.

Prices paid to producers excluding food and energy
increased 0.3 percent in June, compared with a 0.2 percent gain
forecast by economists in a Bloomberg survey. The report may
bolster the Federal Reserve's assessment that a pickup in
inflation is the biggest risk to economic growth.


Read more at Bloomberg Stocks News

Sallie Mae quarterly earnings rise

(Reuters) - Sallie Mae, known legally as SLM Corp. , said earnings rose to $966 million, or $1.03 a share, from $724 million, or $1.52 a share, a year earlier.






Read more at Reuters.com Bonds News

U.S. overall producer prices fall in June

(Reuters) - But after stripping out volatile food and energy costs, core prices in June climbed 0.3 percent after gaining 0.2 percent in May. Gasoline prices dropped 3.9 percent, the biggest decline since a 13 percent plunge in January.




Part of the rise in core prices came from higher prices for new cars and trucks. A department official said that excluding cars and trucks, core prices rose 0.1 percent in June.


Read more at Reuters.com Economic News

Rio Tinto says to unwind Alcan hedgebook

(Reuters) - "Assuming we go through with the deal, it will all be wound
down," a Rio Tinto spokesman said on Monday.




Read more at Reuters.com Mergers News

Merrill Lynch Q2 profits rise 31 percent

(Reuters) - The world's largest brokerage said net earnings were $2.1 billion, or $2.24 a diluted share, compared to $1.6 billion, or $1.63, in the year-earlier period.




Analysts, on average, looked for Merrill Lynch to earn $2.02 a share, according to Reuters Estimates.


Read more at Reuters.com Mergers News

Canada Dollar Little Changed Near 30-Year High as Inflation May Accelerate

(Bloomberg) -- Canada's dollar traded near a 30-
year high before a government report tomorrow that is forecast
to show consumer inflation accelerated in June.

The currency has gained 11.7 percent this year as the Bank
of Canada raised its benchmark interest rate after inflation
exceeded the bank's target of 2 percent.


Read more at Bloomberg Currencies News

Miceli Resignation Amid Cash Probe May Hurt Kirchner in Argentine Election

(Bloomberg) -- Argentine Economy Minister Felisa
Miceli's resignation, sparked by a probe of cash found in her
ministry office, may further erode the government's popularity
less than four months before national elections.

Miceli, 54, said last night she left President Nestor
Kirchner's government to avoid tarnishing its image and to
``clarify'' her situation. Yesterday, a prosecutor sought to
question her about $31,000 in U.S. currency and 100,000 pesos
($32,300) discovered last month in a bag in her office bathroom.
She was replaced by Industry Secretary Miguel Peirano, 40.


Read more at Bloomberg Emerging Markets News

Gold Falls in London on Central Bank Sales Speculation; Silver Declines

(Bloomberg) -- Gold fell in London for a second
consecutive day on speculation that central banks are increasing
sales of the metal. Silver declined.

Bullion has gained for the past two weeks, partly because
central banks had slowed sales, New York-based Morgan Stanley
analysts led by Hussein Allidina said in a report yesterday.
European central banks have sold 305 tons out of the 500 tons
allowed under an agreement that covers the period through Sept.
26, London-based World Gold Council investment research manager
Natalie Dempster said.


Read more at Bloomberg Commodities News

State Street reports higher quarterly profit

(Reuters) - The company, a competitor to Bank of New York Mellon and
Northern Trust as well as large asset managers like Franklin
Resources, said revenue rose to $1.9 billion from $1.7
billion.





Read more at Reuters.com Market News

UPDATE 1-Merrill Lynch Q2 profits rise 31 percent

(Reuters) - Merrill Lynch's subprime mortgage-related activities did
not sap overall results, a concern of investors heading into
the quarter. The company easily beat earnings and revenue
estimates.




The world's largest brokerage said net earnings were $2.1
billion, or $2.24 a diluted share, compared to $1.6 billion, or
$1.63, in the year-earlier period.


Read more at Reuters.com Bonds News

US STOCKS-Futures fall as inflation data, earnings loom

(Reuters) - Among earnings reports due later on Tuesday are Merrill
Lynch & Co. , SLM Corp. , U.S. Bancorp
and Wells Fargo .




Year-to-date, financial stocks are the worst performers of
the ten major S&P industry groups and the sole sector with
losses for that period.


Read more at Reuters.com Bonds News

KeyCorp net rises 8 percent on fee income growth

(Reuters) - Profit from continuing operations rose 11 percent to $337 million, or 85 cents per share, from $303 million, or 74 cents per share.




Analysts on average forecast earnings of 70 cents per share, according to Reuters Estimates.


Read more at Reuters.com Business News

UPDATE 1-SSAB Q2 pretax disappoints, shares tumble

(Reuters) - SSAB, which said it expects the Ipsco takeover to be
completed this week, reported a pretax profit of 1.86 billion
crowns versus a forecast 2.31 billion crowns in a
Reuters poll and 1.78 billion in the same quarter of 2006.




SSAB fell sharply on the news, and were trading 9.4 percent
lower at 284.50 at 1040 GMT.


Read more at Reuters.com Market News

Assurant CEO, CFO placed on leave following SEC notice

(Reuters) - The ruling prevents the defendants from obtaining U.S. Food and Drug Administration approval to market a generic version of Allergan's product Acular, for temporary relief of eye itching associated with seasonal allergic conjunctivitis.



In 2006 the defendants appealed a ruling by the U.S.District Court for the Northern District of California that the defendants' proposed generic product infringed a patent owned by Roche Palo Alto LLC and licensed to Allergan.


Read more at Reuters.com Government Filings News

Basell to buy Lyondell for about $12.14 billion

(Reuters) - The deal value of $12.14 billion is based on Lyondell's shares outstanding as of March 31.




Basell has been on the look out for acquisitions in the chemical sector and recently lost out to Saudi-based SABIC in the auction process for General Electric Co.'s GE Plastics.


Read more at Reuters.com Business News

Corporate Bond Risk Soars in Europe After Subprime Index Selloff in U.S.

(Bloomberg) -- The risk of owning European
corporate bonds soared after an index of securities linked to
U.S. subprime mortgages slumped to a record low, according to
traders of credit-default swaps.

Contracts based on 10 million euros ($13 million) of debt
included in the iTraxx Crossover Series 7 Index of 50 European
companies jumped 19,500 euros to 287,000 euros at 11:20 a.m. in
London, according to JPMorgan Chase & Co. Credit-default swaps,
based on bonds and loans, are used to speculate on the ability
of companies to repay debt and an increase indicates worsening
perceptions of credit quality.


Read more at Bloomberg Bonds News

Barclays "confident" of winning ABN bid battle

(Reuters) - He declined to comment on a revised bid from a consortium led by Royal Bank of Scotland announced on Monday, which includes more cash.




Read more at Reuters.com Market News

Russian Stocks Fall After U.K. Expels Diplomats; Gazprom Lead the Decline

(Bloomberg) -- Russian stocks dropped for the first
time in five days after the U.K. expelled four Russian
diplomats, adding to political tensions between the two
countries. OAO Gazprom led the retreat.

``Politics is certainly affecting sentiment this morning,''
said Julian Rimmer, head of sales trading at UralSib Financial
Corp. in London.


Read more at Bloomberg Emerging Markets News

Barclays 'confident' of winning ABN bid battle

(Reuters) - He declined to comment on a revised bid from a consortium
led by Royal Bank of Scotland announced on Monday, which
includes more cash.




Read more at Reuters.com Mergers News

Dollar Near Record Low Against Euro Before Reports on Inflation, Housing

(Bloomberg) -- The dollar traded near a record low
against the euro before government reports today that are
forecast to show inflation and home building slowed.

The U.S. currency fell to a 26 year-low against the pound
and the weakest since March 1985 versus the New Zealand dollar
on speculation the Federal Reserve will keep interest rates on
hold this year. The euro pared earlier gains against the dollar
after a report showed German investor confidence declined for a
second month in July.


Read more at Bloomberg Currencies News

Working group to mull EADS "golden share"-Germany

(Reuters) - "There is no preference. There are various possibilities
that will be jointly evaluated and discussed by the experts and
the idea of so-called 'golden shares' belongs to these."




Read more at Reuters.com Bonds News

Arcandor says Q2 development according to plan

(Reuters) - The company said its department stores' profit in the second
quarter was "slightly better" than in the second quarter a year
earlier.




Read more at Reuters.com Market News

Erdogan Gains From Turkey's New Islamic Businesses in Re-Election Bid

(Bloomberg) -- From a factory in central Turkey,
Islamic businessman Celal Hasnalcaci annually churns out $15
million worth of hip-hugging pants and tight T-shirts --clothing
that would horrify many devout Muslims.

Hasnalcaci, 53, exemplifies a growing class that balances
Islamic values with support for market economic forces and
Turkey's bid for membership of the European Union. That's
exactly the mix that is propelling Prime Minister Recep Tayyip
Erdogan toward victory in July 22 national elections.


Read more at Bloomberg Exclusive News

REFILE-Older and cheaper pills just fine for diabetes

(Reuters) - WASHINGTON, July 16 - Older and cheaper pills are
just as effective for treating diabetes as some of the more
expensive new drugs, U.S. researchers reported on Monday.




A comparison of 10 diabetes drugs showed they all worked
well to reduce levels of glucose, or sugar, in the blood. But
each one has drawbacks, the federally funded researchers found.


Read more at Reuters.com Government Filings News

Swiss Franc Advances to Seven-Month High as Investors Unwind Carry Trades

(Bloomberg) -- The Swiss franc rose to a seven-month
high against the dollar as investors avoided riskier assets and
scaled back so-called carry trades.

Switzerland's currency also gained versus the euro as
investors unwound trades funded by borrowing the franc and the
Japanese yen at their relatively low interest rates. The franc
was also buoyed by a report that showed retail sales in the
Alpine economy rose for a 12 month in May.


Read more at Bloomberg Currencies News

Electrolux CEO says Europe launches done by Q3

(Reuters) - "Step by step we will get through this and the way things
look right now the launches will be carried out during the third
quarter," Chief Executive Hans Straberg told Reuters.




"What is very positive is that we are seeing our new
products being very well received. It would be worse if we were
out there in the stores and the products were not liked by
consumers."


Read more at Reuters.com Market News

Zambia to export 200,000 tonnes maize to DRC, Namibia

(Reuters) - Zambia's government will allow a farmers' group and three other associations to export a total of 200,000 tonnes of white maize to the Democratic Republic of Congo (DRC) and Namibia, an industry official said on Tuesday.

The Grain Traders of Zambia (GTA), the Zambia National Farmers Union (ZNFU), Millers Association of Zambia (Maz) and the state Food Reserve Agency (FRA) will be given permits to export 50,000 tonnes of surplus maize and ground maize each, Maz general secretary Allan Sakala said.


Read more at Reuters Africa