Pound Heads for Biggest Weekly Rise in Two Months Versus Dollar on Rates

(Bloomberg) -- The pound headed for its biggest
weekly gain in two months versus the dollar on speculation the
Bank of England will raise interest rates next month, boosting
the appeal of holding assets denominated in the currency.

Nationwide Building Society will probably say next week the
pace of growth in U.K. house prices quickened during June,
according to economists in a Bloomberg survey. The pound climbed
this week after minutes of the Bank of England's June policy
meeting showed Governor Mervyn King and three other policy
committee members backed higher borrowing costs.


Read more at Bloomberg Currencies News

PRESS DIGEST - Wall Street Journal - June 22

(Reuters) - * Lawmakers are taking a broader look at curbing some of
the tax advantages of private-equity firms and hedge funds.
Blackstone Group raised $4.13 billion in one of Wall Street's
biggest IPOs.




* Archer Daniels Midland Co. plans to enter
Brazil's sugarcane-ethanol market, backing a rival to
corn-based ethanol made by most U.S. companies.


Read more at Reuters.com Mergers News

Asian Coal Price Forecast Raised at Daiwa on Increasing Demand From China

(Bloomberg) -- Asian contract prices for coal
burned in power stations may rise 5 percent in 2008 because of
increasing demand from China and export bottlenecks in Australia,
Daiwa Institute of Research Ltd. said.

Prices, excluding shipping costs, may climb to $58.40 a
metric ton in the year starting April 1, 2008, compared with a
previous forecast of $55.60 a ton, coal analyst Mark Pervan said
in a June 18 report. Daiwa expects 2009 prices to rise 10
percent after projecting no change in an April 12 estimate.


Read more at Bloomberg Energy News

SNS share issue, sale priced at 16.5 euros per share

(Reuters) - Gross proceeds from SNS's new share issue was 350 million
euros , the bank said. The controlling
foundation's stake in SNS now stands at 55.4 percent instead of
65.5 percent.




Read more at Reuters.com Mergers News

TREASURIES-Hold steady in Asia after fall in US

(Reuters) - At the same time, shorter-dated bonds were supported by
demand from investors seeking safe-haven assets amid growing
problems in the subprime mortgage market that were highlighted
recently by huge losses logged at two hedge funds managed by Bear
Stearns .




Traders said players were likely to stick to the sidelines,
keeping current benchmark yield levels ahead of a policy meeting
of the Federal Reserve next week.


Read more at Reuters.com Bonds News

Ecuador may charge Citibank exec over debt probe

(Reuters) - In a statement, the prosecutor's office said it started an
investigation on Citibank's representative in Ecuador, Bernardo
Chancin.




Citibank was not immediately available for comment. But the
world's largest bank by market value has said it would
cooperate with Ecuadorean authorities.


Read more at Reuters.com Bonds News

Taiwan Dollar Rises on Interest-Rate Increase; Government Bonds Advance

(Bloomberg) -- Taiwan's dollar rose to the highest
in five months after the central bank raised its benchmark
interest rate by twice as much as expected. Bonds gained.

The currency headed for its biggest weekly advance since
the five days to Dec. 1 after the central bank yesterday lifted
the discount rate on 10-day loans by 0.25 percentage point to
3.125 percent. Taiwan's rate is the second-lowest in Asia after
Japan, encouraging investors to borrow the currency to buy
higher-yielding assets abroad.


Read more at Bloomberg Bonds News

South Korean Stocks Fall; Korea Exchange Bank Declines on Share Sale

(Bloomberg) -- South Korean stocks fell. Korea
Exchange Bank dropped the most in six months after Lone Star
Funds sold a 13.6 percent stake in the company for 1.19 trillion
won ($1.3 billion).

Korea Electric Power Corp. slipped after UBS AG said
earnings may trail market estimates on higher coal prices.


Read more at Bloomberg Stocks News

Bear Stearns May Take on $3.2 Billion of Hedge Fund Loans, People Say

(Bloomberg) -- Bear Stearns Cos. may take over about
$3.2 billion of loans that banks and securities firms made to one
of its money-losing hedge funds to prevent creditors from seizing
more assets, according to people with knowledge of the plan.

Bear Stearns, the biggest broker to hedge funds, offered to
assume the loans after Merrill Lynch & Co. took assets that
backed $850 million in credit lines, said the people, who
declined to be named because the proposal is confidential. Lehman
Brothers Holdings Inc. and JPMorgan Chase & Co. also put some of
their collateral up for sale.


Read more at Bloomberg Bonds News

South Korea's Kospi Is Little Changed; Samsung, Daewoo Shipbuilding Rise

(Bloomberg) -- South Korea's benchmark stock index,
the Kospi Index, rose 0.05 percent at 9:05 a.m.

The index of 729 companies traded on the Korea Exchange rose
0.90 to 1,795.14. Among the stocks in the index, 349 rose, 184
fell and 197 were unchanged.


Read more at Bloomberg Stocks News

Australia Dollar Set For a Weekly Gain Against Japan's Yen on Carry Trade

(Bloomberg) -- The Australian dollar rose to its
highest in almost 16 years against the yen and is headed for a
weekly gain as investors are lured to the nation's higher
yielding assets.

So-called carry trades have lifted Australia's currency,
known as the Aussie, 23 percent against the yen the past year,
with investors attracted to a benchmark rate 5.75 percentage
points higher than Japan's, the lowest of major economies. The
Bank of Japan left borrowing costs unchanged last week and said
in its May minutes any increases would be ``gradual,'' spurring
bets the key rate won't be boosted this year.


Read more at Bloomberg Currencies News

UPDATE 1-Brookstreet Securities hurt by CMOs, may shut down

(Reuters) - "Disaster, the firm may be forced to close ...," the
Irvine, California-based company told employees in an e-mail on
Wednesday.




Reuters obtained a copy of it on Thursday.


Read more at Reuters.com Bonds News

Brambles, Newcrest Mining, Rinker, Westfield: Australian Equity Preview

(Bloomberg) -- The following is a list of companies
whose shares may rise or fall in Australia. This preview includes
news announced after markets closed yesterday. Prices are from
yesterday's close unless otherwise stated. Stock symbols are in
brackets after the company names.

The S&P/ASX 200 Index futures contract due in September added
0.2 percent to 6402 at 6:59 a.m. in Sydney. The Bank of New York
Australia ADR Index added 1.9 percent in New York.


Read more at Bloomberg Stocks News

Blackstone IPO raises $4.13 bln

(Reuters) - It also set the stage for its leading partners to cash in their stakes in the firm, reaping hundreds of millions of dollars.




The offering of 133 million common units sold for $31 per unit, compared with a range of $29 to $31, according to an underwriter.


Read more at Reuters.com Mergers News

UPDATE 1-Wells Fargo to buy CIT Group's construction unit

(Reuters) - Terms were not disclosed. CIT Construction, based in Tempe,
Arizona, had $2.4 billion of assets and 235 employees as of
March 31. It has offered construction financing since 1938.




The transaction is expected to close by June 30. It extends
Wells Fargo's strategy of making small, "fill-in"
acquisitions.


Read more at Reuters.com Bonds News

Yen Trades Near Four-Year Low Versus Dollar on Carry Trade, Interest Rates

(Bloomberg) -- The yen traded near the weakest level
in more than four years against the dollar on speculation Japan's
lowest interest rate among major economies spurred investment
funded by loans in the currency.

Japan's yen dropped yesterday as investors put on the so-
called carry trades. A rise in U.S. stocks may spill over into
Asian equities after Merrill Lynch & Co. backed away from a
threat to dump about $850 million of securities it seized from
Bear Stearns Cos. hedge funds, easing concern over losses in the
mortgage bond market.


Read more at Bloomberg Currencies News

Opponents vow to try to block immigration bill

(Reuters) - "The process has been rigged from the beginning, which we think gives us justification to use every measure possible to slow this thing down and stop it," said Sen. Jim DeMint, a South Carolina Republican, at a news conference.




DeMint and other Republican opponents argue the bill amounts to amnesty for millions of law-breakers with no guarantee that tough border security and workplace enforcement measures would go into effect. They argue the legalization program will only encourage more illegal immigration.


Read more at Reuters.com Bonds News

UPDATE 1-Bear Stearns CDO liquidation sparks contagion fears

(Reuters) - NEW YORK, June 21 - Even as Bear Stearns held out
hope of keeping two hedge funds from collapsing, worries over
their forced liquidation are reverberating through U.S.
financial markets, raising concern about broader contagion.




So far the risks seem contained, but the fallout may be
felt everywhere from leveraged buyouts, investment bank
earnings and sales of collateralized debt obligations. Those
securities have pushed sales of corporate and housing-related
debt to record highs in the past year.


Read more at Reuters.com Bonds News

Lawmakers urge SEC to delay Blackstone IPO

(Reuters) - "For this reason, we urge you to refrain from accelerating the IPO until Congress has had a chance to hold hearings on this matter," wrote Waxman. The letter was also signed by Rep. Dennis Kucinich, an Ohio Democrat and chairman of the panel's domestic policy subcommittee.




Read more at Reuters.com Business News

UPDATE 1-Canada opposition parties worried over BCE/Telus

(Reuters) - No. 2 phone company Telus says it is in talks to explore
the acquisition of bigger rival BCE and says the deal could
result in significant synergies.




The Liberal party -- which together with two other
opposition parties control Parliament -- said it feared the
Conservative government of Prime Minister Stephen Harper might
take an ideological pro-market approach to the deal.


Read more at Reuters.com Mergers News

US CREDIT-Broker debt likely to stay volatile

(Reuters) - Bear Stearns Cos. Inc. debt weakened late on
Wednesday and remains near its recent wides over concerns about
losses made by two of its hedge funds that made bad bets on
subprime mortgages.




The cost to insure Bear's debt with credit default swaps
has risen by around 6 basis points to about 46.5 basis points,
or $46,500 per year for five years to insure $10 million in
debt.


Read more at Reuters.com Bonds News

Starbucks high end of '07 view 'very challenging'

(Reuters) - NEW YORK, June 21 - Starbucks Corp.'s chief financial officer said on Thursday the high end of the coffee shop chain's 2007 earnings forecast will be "very challenging" due to current market conditions, including higher dairy costs.



CFO Michael Casey also said the company would maintain the number of U.S. store openings at about 1,700 annually for the next few years.


Read more at Reuters.com Bonds News

U.S. Stocks Rise on Economic Reports, Easing Concern About Mortgage Bonds

(Bloomberg) -- U.S. stocks rose after reports
showed Northeast manufacturing expanded at the fastest pace in
two years and concern eased over losses in the mortgage bond
market.

Advanced Micro Devices Inc., the second-biggest maker of
personal-computer processors, rallied after an analyst raised
his rating on the stock. Nvidia Corp., the No. 2 maker of
graphics chips, climbed the most in the Standard & Poor's 500
Index after Lehman Brothers advised clients to buy the stock.


Read more at Bloomberg Stocks News

Dollar General says holders approve KKR deal

(Reuters) - The discount retailer said that of the shares voted, 99 percent were voted in favor of the deal. Dollar General said it expects the merger will be effective on or about July 6.




Read more at Reuters.com Mergers News

Merrill Backs Away From Plan to Sell $850 Million Bear Assets, Person Says

(Bloomberg) -- Merrill Lynch & Co. backed away from
a threat to dump about $850 million of securities it seized from
Bear Stearns Cos. hedge funds, according to a person with
knowledge of the firm's plans.

Merrill sold a small portion of the collateralized debt
obligations through an auction, said the person, who declined to
be identified because the decision hasn't been announced. The
firm plans to hold onto the remaining securities for now, the
person said, without being more specific.


Read more at Bloomberg Bonds News

Most U.S. Stocks Fall on Concern About Losses in Mortgage Securities

(Bloomberg) -- Most U.S. stocks fell for a second
day on concern the paralysis of two Bear Stearns Cos. hedge
funds may spark losses in mortgage securities.

Citigroup Inc., American International Group Inc. and
Merrill Lynch & Co. led declines. Nokia Oyj, the biggest mobile-
phone maker, slipped after an analyst cut his recommendation on
the shares.


Read more at Bloomberg Stocks News

UPDATE 1-Freddie Mac sells $1.265 bln reference REMICs

(Reuters) - The guaranteed maturity class has a 6.00 percent coupon and
was priced at 99.8789 to yield 6.045 percent, or 102 basis
points over the interpolated Treasury curve. Settlement is June
26.




The joint lead managers on the sale were Citigroup Global
Markets, Credit Suisse and JP Morgan.


Read more at Reuters.com Bonds News

Crude Oil Declines for Second Day in a Row After U.S. Inventories Surge

(Bloomberg) -- Crude oil fell a second day in New
York after an Energy Department report showed that U.S.
inventories surged.

Crude-oil stockpiles rose 6.9 million barrels to 349.3
million last week, the biggest gain since the week ended March
19, 2004, the report showed. Gasoline supplies climbed 1.79
million barrels to 203.3 million, according to the department.


Read more at Bloomberg Commodities News

Telus in talks to buy Canada telecom BCE

(Reuters) - - At current prices, BCE has a market capitalization of about C$32.3 billion. Telus, Canada's no. 2 phone company, has a market cap of C$11.6 billion.




-In the key wireless business, BCE has 5.82 million subscribers and Telus has 5.1 million.


Read more at Reuters.com Government Filings News

FFCB to sell $1 billion 2-yr designated bonds Friday

(Reuters) - The joint lead managers on the sale are Merrill Lynch and
Nomura Securities International.




Read more at Reuters.com Bonds News

Platinum Falls From Two-Week High as Dollar Strengthens; Palladium Rises

(Bloomberg) -- Platinum fell from a two-week high in
New York as a stronger U.S. dollar reduced the metal's appeal as
a hedge against inflation. Palladium gained.

The dollar rose against the euro and traded near a four-year
high versus the yen earlier today on speculation that a report on
U.S. manufacturing will show economic growth is picking up from
the slowest pace in four years. The metal, which is mostly traded
in the dollar, generally moves in the opposite direction of the
U.S. currency.


Read more at Bloomberg Commodities News

News Corp. to explore options for outdoor ad group

(Reuters) - The company said it also has operations in Poland, Czech Republic, Romania, Ukraine and Bulgaria.




Read more at Reuters.com Mergers News

Prices mixed after jobless claims data

(Reuters) - "It was a little higher than expected," John Jansen, director of fixed-income sales at CastleOak Securities in New York, said of the latest claims report. "There's a bit of risk aversion going on."




Investors have been reducing their holdings of risky bonds, especially in subprime mortgages, amid problems at two hedge funds managed by Bear Stearns , traders said.


Read more at Reuters.com Hot Stocks News

Sunrise adds KPMG veteran to board amid probe

(Reuters) - "He shares Sunrise's mission and commitment to seniors, and
we believe his accounting and business expertise will be
extremely beneficial to the company," Doug Holladay, chairman
of Sunrise's nominating and corporate governance committee,
said in a statement.




Sunrise said in May that U.S. securities regulators had
launched a formal probe of its accounting practices, timing of
stock sales and options grants.


Read more at Reuters.com Government Filings News

American Greetings profit doubles

(Reuters) - Analysts on average were expecting 34 cents per share, according to Reuters Estimates.




Net sales rose over 3 percent to $418 million, beating analysts' average estimate of $393.9 million.


Read more at Reuters.com Market News

Uruguay to Sell $500 Million of Inflation-Linked, Peso-Denominated Bonds

(Bloomberg) -- Uruguay plans to sell $500 million of
inflation-linked, peso-denominated bonds in global markets,
according to a person familiar with the sale.

The bonds will pay fixed interest and mature in 2037, with
the principal to be repaid in three annual installments starting
in 2035, according to the person, who declined to be identified
because terms have not been set.


Read more at Bloomberg Bonds News

U.S. Stock Futures Fall on Rising Oil, Mortgage Concern; Citigroup Slips

(Bloomberg) -- U.S. stock-index futures fell after
oil approached $70 a barrel and concern spread that losses in
mortgage securities will reduce profits at financial firms.

Citigroup Inc., American International Group Inc. and
JPMorgan Chase & Co. declined in Europe. Home Depot Inc., the
largest home-improvement chain, and Nokia Oyj, the biggest
mobile-phone maker, slipped after analysts cut their
recommendations on the shares.


Read more at Bloomberg Stocks News

Ford knocks down Slovak plant report, eyes Romania

(Reuters) - But Todd Nissen, spokesman for Ford of Europe, told Reuters the story was purely "speculative".




"We cannot confirm anything like that ," he said.


Read more at Reuters.com Business News

UPDATE 1-Lone Star offers 11.3 pct of S.Korea's KEB-sources

(Reuters) - The sale not only enables Lone Star, facing a legal battle
over KEB, to cash in some investment gains but could also help
find a buyer for its controlling stake more easily in the
future, analysts said.




Lone Star saw its $7.3 billion agreement to sell KEB to the
country's biggest lender, Kookmin Bank , aborted in
November last year due to a legal dispute over its $1.2 billion
purchase of KEB in 2003.


Read more at Reuters.com Mergers News

Goldman Sachs Recommends Buying Apple Call `Spreads' Before IPhone Release

(Bloomberg) -- Investors should buy call options on
Apple Inc. while creating and selling separate ones with a
higher exercise price to benefit from moderate gains in the
shares before sales of iPhone begin, Goldman, Sachs & Co. said.

The New York-based brokerage recommended buying the so-
called call spreads because ``options are already pricing in
more volatility than they were a couple of months ago,''
according to a note dated June 20. Buying and selling call
options with different exercise prices on the same security is a
bet that the underlying stock will make a limited increase.


Read more at Bloomberg Stocks News

J.M. Smucker quarterly profit up

(Reuters) - Analysts on average expected the company to earn 64 cents
per share, according to Reuters Estimates.




Read more at Reuters.com Market News

Shire gets U.S. approval signal on new ADHD drug

(Reuters) - LONDON, June 21 - Shire Plc said on Thursday the U.S. Food and Drug Administration intended to approve Intuniv, its extended-release, non-stimulant treatment for attention deficit hyperactivity disorder .



Britain's third-biggest drugmaker said it had received an "approvable letter" from the U.S. medicines regulator for Intuniv, formerly known as Connexyn, signaling it will approve a new drug pending further information.


Read more at Reuters.com Government Filings News

S.Africa Solidarity union declares dispute with Kumba

(Reuters) - South African Solidarity union said on Thursday it had declared a dispute with Kumba Iron Ore, the first legal step towards a strike, after the company made a final wage offer of 8 percent against the union's demand of 12.5 percent.

Solidarity spokesperson Reint Dykema said in a statement the next step will be to ask the CCMA mediating body to appoint a facilitator in an attempt to reach a settlement.


Read more at Reuters Africa

Afghan Central Bank's Policies Are a `Monumental Success,' Governor Says

(Bloomberg) -- Afghanistan's efforts to stabilize its
currency and control inflation after decades of conflict have been
a ``monumental success,'' the nation's central bank governor
Noorullah Delawari said.

Six years after the U.S. invaded Afghanistan to oust the
Taliban regime, the country's currency is stable, and the
inflation rate, once as high as 48 percent, has been reduced to a
10th of that level, said Delawari, a former banker in California
who now heads the Kabul-based Da Afghanistan Bank.


Read more at Bloomberg Emerging Markets News

Nordstrom near deal to sell Faconnable-report

(Reuters) - Bids for the unit came in around $200 million, less than the $350 million Nordstrom paid for Faconnable in 2006, the Post said, citing sources. VF Corp. and Iconix Brand Group Inc. had looked at the brand but dropped out of the bidding, it added. The sale comes as Nordstrom concentrates on expanding its own department stores, including scouting for its first site in New York City, according to the report.



Nordstrom shares closed on Wednesday at $50.85. A spokesman was not immediately available to comment on the report.


Read more at Reuters.com Mergers News

Weir in $653 mln U.S. acquisition, shares jump

(Reuters) - LONDON, June 21 - British engineer Weir Group Plc said on Thursday it was buying U.S. SPM Flow Control Inc for $653 million, to cash in on the high level of demand for equipment for hydrocarbon exploration and production.



Weir, which makes pumps for moving minerals, oil and seawater, said Texas-based SPM, which makes high-pressure well service pumps and related flow control equipment, was forecast to have 2007 revenues of $320 million.


Read more at Reuters.com Mergers News

Germany's DAX Index Retreats, Led Lower by RWE, Deutsche Boerse Shares

(Bloomberg) -- German stocks declined, paced by RWE
AG, the country's second-largest utility, and Deutsche Boerse
AG, the operator of the Frankfurt stock exchange.

The benchmark DAX Index lost 65.15, or 0.8 percent, to
8025.34 at 9:47 a.m. in Frankfurt. DAX futures expiring in
September fell 0.9 percent to 8109. The HDAX Index of the
country's 110 biggest companies decreased 0.7 percent.


Read more at Bloomberg Stocks News

Israeli Stocks Fall, Led by Hapoalim, Leumi After Deutsche Bank Downgrade

(Bloomberg) -- Israeli stocks fell, sending the TA-
25 Index to its lowest in a week. Bank Hapoalim Ltd. and Bank
Leumi Le-Israel Ltd. led the retreat after Deutsche Bank AG cut
its recommendation on shares of the nation's largest banks.

The TA-25 lost 7.44, or 0.7 percent, to 1118.87 at 9:50 a.m.
in Tel Aviv, as 20 shares dropped and five climbed. The measure
has gained 1.2 percent this week.


Read more at Bloomberg Stocks News

Asian Stocks Rise on Higher Chip Prices, Japan Exports; Samsung Leads Gain

(Bloomberg) -- Asian stocks advanced for a sixth day,
the longest winning streak in almost eight months, after prices of
computer-memory chips jumped and a report today showed Japan's
export growth almost doubled in May.

Samsung Electronics Co. and Toshiba Corp. paced technology
shares higher, helping the Morgan Stanley Capital International
Asia Pacific Index to a record. China Mobile Ltd. led Hong Kong's
Hang Seng Index to a new high after the Chinese government gave
its approval for mainland brokerages to buy shares overseas.


Read more at Bloomberg Stocks News