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.


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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.


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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.


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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.


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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.


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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.


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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]


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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.


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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.


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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.


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CORRECTED-(OFFICIAL)-Fitch release on Doral Financial

(Reuters) - July 20 - Fitch Ratings has affirmed and removed all of
Doral Financial Corporation's ratings from Rating
Watch Negative and DRL's Rating Outlook is Positive. Fitch
currently rates DRL's long-term Issuer Default Rating
'CCC'. The Support Rating Floor for DRL and its principal
subsidiary remains unchanged at No Floor . Please see a
complete list of affected ratings at the end of this release.




DRL's Positive Rating Outlook is driven by the closing of
the equity sale and the payment of a significant impending debt
maturity. On July 19, DRL announced that it had received all
regulatory approvals and closed the equity sale of a 90% stake
to Bear Stearns Merchant Banking for $610 million. In addition,
DRL announced today that they have paid the impending $625
million debt maturity.


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Comcast net up, but shares down on subscriber loss

(Reuters) - Although Comcast's profit and revenue growth was in line with expectations, the company lost 95,000 basic video subscribers in the second quarter -- a much bigger loss than the 20,000 forecast by Bear Stearns analyst Spencer Wang or the 12,000 estimated by Sanford Bernstein analyst Craig Moffett.




Comcast usually loses some customers in the second quarter as university students terminate their contracts at the end of the school year, but analysts had expected that to be offset this quarter by subscriber gains elsewhere. Comcast had lost 91,000 basic video subscribers in the year-ago period.


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European Bond Yields Post Biggest Weekly Drop in 3 1/2 Years as Risks Rise

(Bloomberg) -- European government bonds rallied,
with 10-year yields posting their biggest weekly drop in 3 1/2
years, as the risk of owning corporate debt rose to a two-year
high and investors switched into the safest assets.

Bund yields slid to a seven-week low on concern defaults on
U.S. home loans to people with poor credit histories will spread
to the wider economy. Government debt around the world rose this
week after Bear Stearns Cos. told investors they weren't likely
to get their money back from two of its hedge funds that bet on
securities backed by subprime mortgages.


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Pound Advances to 26-Year High Versus Dollar on GDP Report, Rates Outlook

(Bloomberg) -- The pound rose to a 26-year high
against the dollar after a report showed U.K. economic growth
unexpectedly quickened in the second quarter, stoking
expectations of higher interest rates.

The U.K. currency headed for its longest rally in more than
a year on speculation the Bank of England will raise rates half a
percentage point from 5.75 percent by year-end while the Federal
Reserve stays on hold. The pound also advanced as the Fed trimmed
its forecast for economic growth and Bear Stearns Cos. reported
losses on hedge funds that bet on bonds backed by subprime loans.


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Pound Heads for Sixth Weekly Gain After GDP Report Stokes Rate Expectation

(Bloomberg) -- The pound headed for its longest
rally versus the dollar in more than a year after a report showed
U.K. economic growth unexpectedly quickened in the second
quarter, stoking expectations of higher interest rates.

The U.K. currency rose to a 26-year high this week on
speculation the Bank of England will raise rates half a
percentage point from 5.75 percent by year-end while the Federal
Reserve stays on hold. The pound also advanced as the Fed trimmed
its forecast for economic growth and Bear Stearns Cos. reported
losses on hedge funds that bet on bonds backed by subprime loans.


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European Bonds Rally, Pushing Benchmark Yield to the Lowest in Six Weeks

(Bloomberg) -- European bonds rallied, pushing 10-
year yields to the lowest in more than six weeks, as the risk of
owning corporate debt rose to a two-year high and investors
switched into safer government assets.

Benchmark yields were also headed for the biggest weekly
drop in more than a year on concern defaults on home loans to
people with poor credit histories will spread. Government debt
around the world rose this week after Bear Stearns Cos. told
investors they weren't likely to get money back from two of its
hedge funds that bet on securities backed by subprime mortgages.


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Pound Rises to Near 26-Year High Against Dollar After GDP Report, on Rates

(Bloomberg) -- The pound rose to near a 26-year high
against the dollar after a report showed U.K. economic growth
unexpectedly quickened in the second quarter, stoking
expectations of higher interest rates.

The U.K. currency headed for a sixth weekly gain on
speculation the Bank of England will raise rates half a
percentage point by year-end while the Federal Reserve stays on
hold. The pound advanced this week as the Federal Reserve trimmed
its forecast for economic growth and Bear Stearns Cos. reported
losses on hedge funds that bet on bonds backed by subprime loans.


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Bear Stearns, Lehman Bond Risks Soar as Worries About Subprime Losses Grow

(Bloomberg) -- The risk of owning securities firms'
bonds surged as Bear Stearns Cos. informed its hedge-fund
investors of ``unprecedented declines'' in the value of the
highest-rated securities backed by subprime mortgages.

Lehman Brothers Holdings Inc. and Bear Stearns, both based
in New York, led the leap in risk premiums, which reached their
highest since November 2002, credit-default swaps show. An index
tied to subprime mortgage bonds, known as ABX, dropped to a
record for the third day, signaling a higher default risk.


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Bear Stearns, Lehman Bond Risk Soar As Worries About Subprime Losses Grow

(Bloomberg) -- The risk of owning securities firms'
bonds surged, as Bear Stearns Cos. informed its hedge-fund
investors of ``unprecedented declines'' in the value of the
highest-rated securities backed by subprime mortgages.

Lehman Brothers Holdings Inc. and Bear Stearns, both based
in New York, led the jump in risk premiums, which reached their
highest levels since November 2002, credit-default swaps show.


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U.S. Stocks Retreat on Subprime, Earnings Concerns; Intel, Pfizer Decline

(Bloomberg) -- U.S. stocks fell after Bear Stearns
Cos. told investors there's little value left in its two failed
hedge funds while Intel Corp. and Pfizer Inc. said competition
hurt earnings.

Financial shares were the biggest drag on the Standard &
Poor's 500 Index after Bear Stearns said ``unprecedented
declines'' in securities used to bet on subprime mortgages wiped
out the funds. Intel, the world's biggest chipmaker, and Pfizer,
the largest drugmaker, led the Dow Jones Industrial Average down
from a fourth-straight record.


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