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