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

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

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.


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

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.


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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.


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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

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

Currency Option Volatility Edges Higher as Credit Risk Measures Increase

(Bloomberg) -- Option volatility on most major
exchange rates edged higher as investors demand safer assets and
indicators of corporate bond risk surged.

The perceived risk of owning European corporate bonds
soared to the highest in at least three years after Germany's
IKB Deutsche Industriebank AG reported losses on U.S. subprime
mortgages, credit-default swap prices show.


Read more at Bloomberg Currencies News

European Chemical Stocks Gain, Led by Imperial Chemicals; UBS, 3i Slide

(Bloomberg) -- European chemical stocks rose after
Imperial Chemical Industries Plc rejected a sweetened bid from
Akzo Nobel NV and Linde AG, the largest maker of industrial
gases, reported earnings that topped analysts' estimates.

UBS AG and 3i Group Plc led declines by financial companies
after IKB Deutsche Industriebank AG of Germany said profit will
be ``significantly'' lower than forecast, hit by the U.S.
subprime mortgage rout.


Read more at Bloomberg Stocks News

European Carbon Emissions Permits Climb After Rise in German Power Prices

(Bloomberg) -- European Union carbon dioxide
permits rose to the highest in almost three weeks, following
rising energy prices including German electricity.

Permits for December 2008 gained for a fifth day, climbing
as much as 50 cents, or 2.5 percent, to 20.80 euros ($28.43) a
metric ton on the European Climate Exchange in Amsterdam. They
traded at 20.65 euros at 3:23 p.m. local time.


Read more at Bloomberg Energy News

FTSE 100 Index Stocks Advance, Led by HSBC, Imperial Chemicals, Vedanta

(Bloomberg) -- U.K. stocks rose for the first time
in five days, led by HSBC Holdings Plc after Europe's largest
bank reported profit that topped analysts' estimates.

Imperial Chemicals Industries Plc also gained, while BHP
Billiton Ltd. led shares of mining companies higher.


Read more at Bloomberg Stocks News

Europe Government Bonds Slide on Speculation ECB to Indicate Higher Rates

(Bloomberg) -- European bonds fell on speculation
the European Central Bank will this week reiterate its preference
for higher interest rates as economic growth in the region
maintains momentum.

Ten-year German bunds, Europe's benchmark, declined for the
first day in five on speculation policy makers will leave rates
at a six-year high of 4 percent at their Aug. 3 meeting and
signal increases are likely by year-end. Debt also slid on views
the longest weekly rally since March last week drove yields too
low for the outlook for borrowing costs.


Read more at Bloomberg Bonds News

European Stocks Advance, Led by Imperial Chemicals, Linde; IKB Tumbles

(Bloomberg) -- European stocks rose for the first
time in five days, led by Imperial Chemical Industries Plc after
the company rejected a bid from Dutch rival Akzo Nobel NV.

Linde AG, the world's largest maker of industrial gases,
also gained after reporting earnings that topped analysts'
estimates. BHP Billiton Ltd. and Rio Tinto Group led mining
shares higher as copper increased.


Read more at Bloomberg Stocks News

European stocks tick up in early trade; miners help

(Reuters) - European stocks rose in early trade on Monday as gains in miners and chemicals group ICI offset fears over the impact of a credit crunch on liquidity and mergers and acquisitions.

BHP Billiton gained 2.1 percent and Rio Tinto rose 1.5 percent, helped by gains in Australian trading.


Read more at Reuters Africa

Europe Bonds Fall on Concern Recent Gains Aren't Justified By Rising Rates

(Bloomberg) -- European bonds fell on speculation
the longest run of weekly gains in five months isn't justified
by expectations for higher interest rates in the euro region.

The yield on the German 10-year bund, Europe's benchmark,
rose 2 basis points to 4.33 percent as of 7:21 a.m. in London,
after reaching 4.30 percent last week, its lowest since mid-May.
The price of the 4.25 percent security due July 2017 fell 0.16,
or 1.6 euros per 1,000-euro ($1,364) face amount, to 99.34.


Read more at Bloomberg Bonds News

Shanghai Auto tie-up may create Chinese car champion

(Reuters) - Shanghai Automotive Co. said on Friday that parent groups of the two companies had signed a letter of intent to discuss ways of achieving a "complete union" between the firms through business cooperation and restructuring.




China's central government and local authorities are pushing the tie-up as a way to build Shanghai Auto into a comprehensive auto maker that can compete with European, Japanese and U.S. giants at home and eventually overseas, industry sources and analysts said.


Read more at Reuters.com Business News