Fitch, S&P Warn Investors About Risks of Subprime Mortgage CDOs, Bonds

(Bloomberg) -- Fitch Ratings and Standard & Poor's
today warned investors that subprime-mortgage securities similar
to those responsible for the near collapse of hedge funds run by
Bear Stearns Cos. are deteriorating quickly.

Fitch said it may cut ratings on four collateralized debt
obligations valued at about $3.1 billion that are linked to some
second-lien subprime loans. S&P downgraded 45 bonds backed by
subprime mortgages and said it may reduce ratings on 88 more,
following similar action by Moody's Investors Service last week.


Read more at Bloomberg Bonds News

Mexico's Bolsa Has Weekly Decline on Tax Proposal; Cemex, Televisa Slide

(Bloomberg) -- Mexico's main stock index fell for the
second week in three, led by Cemex SAB, on concern President Felipe
Calderon's proposed tax bill will reduce company profits.

The benchmark Bolsa index slid 0.6 percent today to 31,642.26,
for a weekly loss of 1.5 percent. Cemex, North America's largest
cement producer, was also hurt by concern that the U.S. housing
slump will hurt its earnings.


Read more at Bloomberg Stocks News

UPDATE 1-AIG files with US SEC for $22 billion mixed shelf

(Reuters) - AIG, the world's largest insurer, said in a registration
statement with the U.S. Securities and Exchange Commission it
will use the proceeds from the shelf offering for general
corporate purposes.




Under a shelf registration, a company may sell securities
in one or more separate offerings with the size, price and
terms to be determined at the time of sale.


Read more at Reuters.com Government Filings News

Scottish Re names chief restructuring officer

(Reuters) - In the newly created role, Roth will lead the Scottish Re transition program and be a member of its executive committee.



Prior to joining Scottish Re, Roth spent the last year with Cerberus Capital Management LP [CBS.UL] on its operations team. Private equity firm Cerberus and MassMutual Capital, a unit of the mutual insurance company, each contributed $300 million to get majority control of Scottish Re earlier this year.


Read more at Reuters.com Mergers News

Global stocks weaken on U.S. credit concerns

(Reuters) - U.S. stocks posted their biggest weekly decline in three months while investors fled to safe-haven U.S. government debt amid market uncertainty, snapping a six-week string of gains in the benchmark 10-year Treasury yield.




The dollar fell to a two-week low against the euro and a six-week trough against the British pound, as lower Treasury yields reduced their appeal to foreign investors.


Read more at Reuters.com Hot Stocks News

UPDATE 3-Mexico holds rates steady, talks tough on inflation

(Reuters) - MEXICO CITY, June 22 - Mexico's central bank held
interest rates steady on Friday, but sharpened its tone on
inflation by warning risks had increased, which raised the
possibility of a fresh hike as early as next month.




The Banco de Mexico, known as Banxico, held its key
overnight interest rate steady at 7.25 percent as expected, but
said inflation risks were heightened last month and monetary
policy maintained a restrictive bias.


Read more at Reuters.com Economic News

UPDATE 3-Lear delays vote on Icahn takeover after criticism

(Reuters) - NEW YORK, June 22 - Lear Corp. , which has
faced criticism for accepting billionaire Carl Icahn's
$36-per-share buyout offer, delayed a shareholder vote on the
deal until July 12, the auto parts maker said on Friday.




Lear shareholders had been scheduled to vote on the nearly
$2.9 billion offer from Icahn's American Real Estate Partners
on June 27.


Read more at Reuters.com Mergers News

Cantor Fitzgerald completes auction of Bear assets

(Reuters) - "We had a successful auction," said Cantor Fitzgerald spokesman Robert Hubbell, who didn't immediately have a figure on how much was sold. "We have no exposure to the Bear Stearns hedge fund. We have not lost a penny."




Read more at Reuters.com Bonds News

Oil Rises as Nigeria's Government Fails to Reach an Accord to End Strike

(Bloomberg) -- Crude oil rose after the government
of Nigeria failed to reach an agreement with unions to end a
three-day-old general strike in the largest oil-producing country
in Africa.

Yesterday, oil unions withdrew workers from export terminals
in a bid to halt shipments and intensify pressure on the new
administration of President Umaru Yar'Adua. About a third of the
nation's output was already halted by political and criminal
violence. The strike comes during the summer driving season, when
U.S. fuel consumption peaks.


Read more at Bloomberg Energy News

Brookstreet Securities says closes after CMO losses

(Reuters) - Brooks said the firm had a value of about $17 million at
the end of May which has evaporated. He said he turned down
several tentative offers to recapitalize the firm.




"I am flabbergasted," said Brooks, 59. "My life's work is
gone."


Read more at Reuters.com Bonds News

Harley-Davidson Options Trading Surges on Speculation of Possible Takeover

(Bloomberg) -- Trading in options to buy shares of
Harley-Davidson Inc. surged to a record on speculation that the
biggest U.S. motorcycle maker may be acquired.

``There are rumors of a potential takeover,'' said Frederic
Ruffy, an options analyst at Redwood City, California-based
Optionetics.com. ``Investors think it's credible. They expect an
announcement in the short term and a big move in the stock.''


Read more at Bloomberg Stocks News

KCBT says not going way of Winnipeg's ICE deal

(Reuters) - KCBT spokeswoman Sheila Summers said the KCBT had not had
any talks that would have it follow in the footsteps of the
Winnipeg exchange, which announced Friday a sale to
IntercontinentalExchange Inc. .




"We're not looking to sell at all," said Summers. "We're
happy with the way things are now."


Read more at Reuters.com Mergers News

MMI Investments acquires 9.4 pct stake in DJO for $82.8 mln

(Reuters) - In a filing with the U.S Securities and Exchange
Commission, the New York-based hedge fund, along with its
general partner MCM Capital Management, said it bought 2.2
million shares of DJO.




MMI Investment said it plans to hold up to $500 million in
DJO shares and intends to notify the company of its intention
to file a request for early termination of the waiting period
under the HSR Act.


Read more at Reuters.com Government Filings News

Coke may be eyeing Cadbury's Snapple: report

(Reuters) - "One source suggests it's a 'fair assumption' that Coke would have interest in Snapple," Beverage Digest reported.




Coke spokesman Ben Deutsch declined to comment.


Read more at Reuters.com Mergers News

Ethanol-producing co shares surge on energy bill OK

(Reuters) - per gallon, or to 35 miles per gallon by 2020.




Analysts said there was no other obvious reason to account for the rise in share prices of companies that produce the gasoline alternative made from corn or other crops.


Read more at Reuters.com Hot Stocks News

Africa must seal new trade deals with EU - Michel

(Reuters) - African countries must agree new trade deals with Europe by the end of the year or risk losing valuable commerce, European Commissioner for Development and Humanitarian Aid Louis Michel said on Friday.

The World Trade Organisation (WTO) outlawed the European Union's preferential trade terms for nearly 80 of its African, Caribbean and Pacific (ACP) former colonies in 2001, but granted a waiver until the end of 2007.


Read more at Reuters Africa

UPDATE 1-Paulson sees signs of change in Macau banking

(Reuters) - "We're still engaging with Banco Delta Asia on certain
remedial actions that I think will ultimately lead to
behavioral change," he added.




But Paulson declined to answer a question on whether the
Treasury believed that North Korea had stopped its
counterfeiting and money laundering activities now that $25
million in previously frozen accounts at Banco Delta Asia had
been transferred back to North Korea.


Read more at Reuters.com Bonds News

IMF says US soft landing scenario likely amid risks

(Reuters) - At the same time, economic growth is "uncomfortably close"
to the 2 percent stall speed associated with past recessions,
the IMF said. In addition, cost pressures from rising energy
and food prices could spur inflation, particularly if the
productivity of U.S. workers fails to pick up, the world
financial body said.




But IMF officials said resilient consumer spending, revived
business investment, and increased export opportunities
provided by strong global growth should support an acceleration
in U.S. output.


Read more at Reuters.com Bonds News

Cosan, Diagnosticos, Marcopolo, Vale do Rio Doce: Brazilian Equity Movers

(Bloomberg) -- Brazil's main stock index fell for the
third time in four days, led by mining company Cia. Vale do Rio
Doce.

The Bovespa Index of the most-traded stocks on the Sao Paulo
exchange fell 308.56, or 0.6 percent, to 54,348.32 as of 9:45 a.m.
New York time.


Read more at Bloomberg Stocks News

CME urges CBOT members to vote in favor of merger

(Reuters) - ICE has been pursuing a hostile bid for CBOT since March. On Thursday, it sent a letter to CBOT members and shareholders urging them to vote against the CME-CBOT merger.




CME issued its response in the form of a letter on Friday, saying that a CME-CBOT merger would add significantly more value than the ICE offer, as well as immediate growth prospects with the lowest risk.


Read more at Reuters.com Business News

U.S. judge accepts Parmalat injunction request

(Reuters) - An injunction was put in place in July 2004 and had been
extended several times.




Read more at Reuters.com Bonds News

Canadian Stocks Slip as Investors Await Merger Developments: Encana Falls

(Bloomberg) -- Canadian stocks fell as investors
awaited further developments on the potential takeovers of two of
the nation's biggest companies, Alcan Inc. and BCE Inc. Such energy
companies as EnCana Corp., among the biggest advancers yesterday,
declined.

Investors may decide to lock in gains today, said Fred
Ketchen, managing director of equity trading at Scotia McLeod Inc.
in Toronto.


Read more at Bloomberg Stocks News

UDPATE 1-Domtar to sell forest products unit for C$285 mln

(Reuters) - The deal, which is expected to close before the end of the
year, also includes about C$50 million of working capital, the
paper and pulp maker said in a statement.




The transaction includes sawmills and timber rights in
Ontario and Quebec.


Read more at Reuters.com Mergers News

Yen Drops to Record Low Against Euro as Interest Rates Spur Carry Trade

(Bloomberg) -- The yen dropped to a record low
against the euro and fell to the lowest level in more than four
years versus the dollar as global investors borrowed the nation's
currency to buy higher-yielding assets elsewhere.

Japan's lowest interest rates among major economies also
spurred the country's investors to put on the so-called carry
trades, adding to yen selling. The euro rose to a two-week high
against the dollar after European Central Bank President Jean-
Claude Trichet suggested he may extend interest-rate increases.


Read more at Bloomberg Currencies News

Adelphia releases Time Warner Cable shares

(Reuters) - Media conglomerate Time Warner Inc. spun off 16 percent of it cable division this year.




Read more at Reuters.com Hot Stocks News

Kenyan shilling eases slightly vs dollar, market quiet

(Reuters) - The Kenya shilling eased marginally against the dollar on Friday due to mild corporate dollar demand from the telecoms and energy sectors, dealers said.

At 1125 GMT, the shilling traded at 66.60/70 to the dollar, compared with Thursday's close of 66.55/65.


Read more at Reuters Africa

Jones Apparel near Barneys sale: report

(Reuters) - Jones Apparel did not immediately return a call seeking comment. A spokeswoman for Istithmar in Dubai declined to comment, saying that Friday was a day of prayer and rest in Dubai.




Istithmar, which has a global real estate portfolio valued at $7 billion to $8 billion, including prime properties in London and New York, has been aggressively buying up U.S. property and other assets over the past year. The investment firm owns off-price apparel retailer Loehmann's Holdings Inc. and a major stake in the Mandarin Oriental New York hotel.


Read more at Reuters.com Bonds News

Delphi Near Accord With Auto Workers to Emerge From Bankruptcy, People Say

(Bloomberg) -- Delphi Corp. and former parent
General Motors Corp. are close to an agreement with the United
Auto Workers union that would pave the way for the auto-parts
supplier to emerge from bankruptcy this year, people with
knowledge of the negotiations said.

UAW officials have summoned union plant leaders to Detroit
for a briefing today on the accord, which would provide Delphi
workers buyouts and job guarantees in exchange for plant
closings, the people said.


Read more at Bloomberg Exclusive News

UPDATE 1-Barclays says no big exposure to troubled US funds

(Reuters) - Barclays Capital has about $300 million exposed to Bear
Stearns hedge funds that are on the brink of collapse,
according to media reports. The Daily Telegraph said Barclays
Capital may have lent $1.2 billion to the funds.




Barclays confirmed in a statement that in the ordinary
course of its business Barclays Capital had some exposure to the
funds, but the bank did not quantify the amount other than to
say it would not have a big impact.


Read more at Reuters.com Bonds News

European Spot Carbon Emission Permits Fall to Record on Likely Oversupply

(Bloomberg) -- European Union carbon-dioxide
emission permits for immediate delivery fell to a record on a
likely oversupply this year.

Emission permits fell 3 cents, or 27 percent, to 8 euro
cents ($0.11) a metric ton on the Powernext exchange in Paris at
11:27 a.m. local time. Permits for December 2008 fell 42 cents,
or 1.9 percent, to 21.20 euros a ton, according to the European
Climate Exchange in Amsterdam.


Read more at Bloomberg Energy News

Treasuries Set to Halt Six-Week Losing Streak as German Confidence Weakens

(Bloomberg) -- U.S. 10-year Treasuries were poised
to end a six-week losing streak after Germany's Ifo institute
reported an unexpectedly steep decline in business confidence,
prompting speculation economic growth in Europe will plateau.

Treasuries have rebounded following a slump since early May
that pushed benchmark yields to a five-year high on signs of
faster global economic growth. Investors sought the safety of
shorter maturities this week, prompting the gap between yields
on two-year notes and 10-year debt to widen. European bonds rose
today after the German confidence figures pushed stocks lower.


Read more at Bloomberg Bonds News

U.K.'s FTSE 100 Index Drops for Fifth Day; National Grid, BHP Pace Retreat

(Bloomberg) -- U.K. stocks dropped, sending the
benchmark FTSE 100 Index lower for a fifth consecutive day.
National Grid Plc paced the retreat after Goldman, Sachs & Co.
recommended selling shares in the natural-gas pipeline operator.

BHP Billiton Ltd. led mining companies lower as copper
prices declined in Asia. Pearson Plc, Kingfisher Plc and Unilever
led advancing shares.


Read more at Bloomberg Stocks News

FTSE declines for 5th day but retailers gain

(Reuters) - British shares dipped on Friday, extending their decline to a fifth day, as a rally in the retail sector led by Tesco was offset by losses in some bank and energy stocks.

By 0809 GMT the FTSE 100 index of leading UK shares was down 0.3 percent at 6,577.9 points, having given up early gains.


Read more at Reuters Africa

NYSE Euronext rivals LSE for Italy bourse-report

(Reuters) - Italy's Borsa Italiana will discuss the LSE's offer again at
a board meeting on Friday. It spent hours discussing the LSE's
complex offer on Thursday.




"At the moment, the only offer under discussion is the one
from the LSE," a Borsa spokeswoman said on Friday. Borsa said
after Thursday's meeting ended there were no other offers.


Read more at Reuters.com Mergers News

European Stocks Rise; Pearson, Arcelor Mittal, BAE Systems Advance

(Bloomberg) -- European stocks advanced, led by
Pearson Plc after the U.K. publisher abandoned a possible bid for
Dow Jones & Co.

Arcelor Mittal gained after UBS AG raised its estimate for
the steelmaker's share price on prospects for cash returns and
further mergers and acquisitions.


Read more at Bloomberg Stocks News

Dollar Gains Capped at 124 Yen on Option Protection, Sumitomo Trust Says

(Bloomberg) -- The dollar's gains are stalling at
about 124 yen because of selling to protect options that would
become worthless should the currency rise further, according to
Sumitomo Trust & Banking Co.

Options grant holder the right to buy or sell a currency at
a set price on a fixed date. An option ceases to exist should
the underlying currency rise or fall to a knock-out trigger.
Traders use knock-outs to reduce the premium paid for options.
The dollar has traded just below 124 yen for the past week but
hasn't risen above that level.


Read more at Bloomberg Currencies News