UPDATE 1-Fortis to issue 2 bln euros of notes

(Reuters) - Fortis said the notes represented senior unsecured
obligations of the issuers -- various parts of Fortis -- and
that it expected them to carry a coupon of three-month EURIBOR
+15 to 20 basis points payable quarterly in arrears.




The notes must be exchanged into mandatory convertible
securities after completion of a preferential rights issue to
existing holders of Fortis shares.


Read more at Reuters.com Bonds News

PRESS DIGEST - Wall Street Journal - July 11

(Reuters) - * The federal regulator of thrifts is working on a proposal
that could lead to a ban on lending practices the agency labels
"unfair and deceptive," several people briefed on the matter
said.




* Liz Claiborne Inc. is seeking to divest itself of
16 of its 36 apparel brands, representing $800 million of its
$5 billion in annual sales.


Read more at Reuters.com Bonds News

Infosys Reduces Profit, Sales Forecasts on Stronger Rupee; Shares Decline

(Bloomberg) -- Infosys Technologies Ltd., India's
second-largest computer-services provider, cut its profit and
sales estimates after a stronger rupee eroded the value of
earnings from the U.S., its largest market.

Net income is expected to reach 78.2 rupees ($1.94) to 79
rupees per share in the year ending March 2008, Infosys said in a
statement today, less than the 80.29 rupees to 81.58 rupees
estimate in April. Sales will range from 162.38 billion rupees to
164.33 billion rupees, trailing the earlier forecast of at least
170.38 billion rupees.


Read more at Bloomberg Emerging Markets News

U.S. Senator Grassley Says Henry Paulson Has `Pussyfooted' on China's Yuan

(Bloomberg) -- U.S. Treasury Secretary Henry Paulson
has ``pussyfooted'' on the issue of the yuan, which hasn't risen
``fast enough,'' said Senator Charles Grassley, who's calling for
a bill to counter the benefits Chinese exporters are getting.

The law on determining currency manipulation ``gives the
secretary of Treasury too much leeway,'' Grassley said in an
interview from Washington yesterday. Some U.S. legislators deem
the yuan's 9.4 percent gain since the end of a dollar link in
July 2005 as insufficient to narrow the trade deficit with China.


Read more at Bloomberg Currencies News

Carrefour, Jacquet Metals, Laroche, Orapi, Safran: French Equity Preview

(Bloomberg) -- Shares of the following companies
may rise or fall on the Paris stock exchange. Symbols are in
parentheses after company names, and prices are from the
previous close.

The CAC 40 Index lost 85.44, or 1.4 percent, to 6019.22.
The SBF 120 index fell 1.3 percent.


Read more at Bloomberg Stocks News

UPDATE 1-Gerdau Ameristeel to buy Chaparral for $4.22 bln

(Reuters) - Gerdau will pay $86.00 per share in cash for shares of
Chaparral. The deal offers shareholders a premium of 13.62
percent, based on Chaparral's closing price of $75.69 a share,
Tuesday on the New York Stock Exchange.




The deal has been unanimously approved by the boards of
both Chaparral and Gerdau, the companies said in separate
statements.


Read more at Reuters.com Mergers News

South Korea's Brokerage Shares Fall on Commission Cut Plan; Samsung Gains

(Bloomberg) -- South Korea's Kospi index swung
between gains and losses. Daewoo Securities Co. dropped on
concern the government's plan to lower commissions on fund sales
will dent brokerages' profits.

Samsung Electronics Co. and Hynix Semiconductor Inc.
advanced on speculation flash-memory chip prices will rise.


Read more at Bloomberg Stocks News

Dollar tumbles to record low vs euro on subprime fear

(Reuters) - The dollar's broad decline accelerated early in the Asian session and was steepest against the low-yielding yen, as investors cut back on their exposure to higher-yielding but riskier assets.




The yen quickly erased most of its gains against the dollar as Japanese retail speculators bought back the U.S. currency, but a fall in Tokyo shares after a drop in U.S. stocks the previous session kept other investors cautious of further reductions of yen short positions.


Read more at Reuters.com Hot Stocks News

Oil Trades Near 10-Month High After Gaining on Higher U.S. Gasoline Price

(Bloomberg) -- Crude oil was little changed in New
York, after rising yesterday as gasoline prices climbed on
speculation U.S. output of the fuel may slow due to unplanned
refinery shutdowns.

BP Plc closed the largest of three crude units at its
refinery in Whiting, Indiana, a person familiar with the plant
said July 9. The refinery, the biggest in the Midwest, supplies
consumers in the Chicago area. Refineries in Texas and Kansas
shut units last week. Refinery operating rates rose to 90 percent
of capacity in the week ended June 29 to meet demand.


Read more at Bloomberg Commodities News

Banks and brokers shares fall on subprime woes

(Reuters) - Declines were led by banks perceived to have high exposure to mortgages and other fixed income businesses, including Lehman Brothers Holdings Inc. , which fell 5 percent, and Bear Stearns Cos. , which fell as much as 4.1 percent.




Lenders specializing in mortgages dropped as well. Countrywide Financial Corp. shares fell 3.7 percent, while the shares of subprime specialist NovaStar Financial Inc. fell 8.7 percent.


Read more at Reuters.com Business News

Australia Dollar Drops Most in 4 Months Versus Yen as Carry Trades Unwound

(Bloomberg) -- The Australian dollar dropped the
most in four months against the yen as a fall in U.S. stocks
prompted investors to pare positions funded by loans in Japan.

The local dollar declined for the second day after the
Standard & Poor's 500 Index fell the most in a month on concern
subprime mortgage losses will worsen a housing slowdown. Japan's
0.5 percent overnight lending rate has prompted investors to
borrow yen to take advantage of Australia's 6.25 percent interest
rate. The so-called carry trade has helped the currency gain 11
percent versus the yen this year.


Read more at Bloomberg Currencies News

Aeon, Kyocera, Ono Pharmaceutical, Tokushu Tokai: Japanese Equity Preview

(Bloomberg) -- The following stocks may move in
Japanese markets. Prices are as of the close of trading. Statements
were released after the close. Stock symbols are in parentheses.

Aeon Co. (8267 JT): Japan's largest supermarket operator said
first-quarter net income fell 38 percent to 8.02 billion yen ($65
million), mainly because of falling earnings at U.S. unit Talbots
Inc. Also, Aeon said it will ally with Maruetsu Inc. (8178 JT) and
Marubeni Corp. (8002 JT) in the procurement and development of
products to improve competitiveness in the Tokyo market. Aeon was
unchanged at 2,265 yen. Maruetsu added 2 yen, or 0.3 percent, to
595. Marubeni rose 16 yen, or 1.5 percent, to 1,110.


Read more at Bloomberg Stocks News

Paulson hedge fund wins big in subprime fallout

(Reuters) - The Paulson Credit Opportunities Fund surged 39.95 percent last month, giving it gains of some 129 percent in the first half of 2007 on bets the subprime market would decline, the source said.




Paulson, which is headed by investor John Paulson, also posted gains of 6.15 percent in its merger arbitrage fund in June, giving the fund gains of 27.7 percent year-to-date through June. Paulson is best-known as an event-driven hedge fund group, sometimes employing activist strategies.


Read more at Reuters.com Bonds News

Memory Pharmaceuticals files for $75 million shelf

(Reuters) - 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

Adhesive blamed in Boston Big Dig tunnel collapse

(Reuters) - The $15 billion Big Dig highway and tunnel project -- the
costliest public works project in U.S. history -- has faced
construction problems and other controversy over the past two
decades.




Investigators found the construction industry had a
"general lack of understanding" about how the ceiling adhesive
would perform in the long term, and that the contractors on the
tunnel project failed to identify problems when they arose.


Read more at Reuters.com Bonds News

US STOCKS-Indexes slump on more housing weakness worries

(Reuters) - The Dow Jones industrial average was down 149.90
points, or 1.10 percent, to end unofficially at 13,500.07. The
Standard & Poor's 500 Index was down 21.79 points, or
1.42 percent, to finish unofficially at 1,510.06. The Nasdaq
Composite Index was down 30.86 points, or 1.16
percent, to close unofficially at 2,639.16.




Read more at Reuters.com Bonds News

Oil Rises in New York Expectations of Decline in U.S. Gasoline Production

(Bloomberg) -- Crude oil rose, pulled higher by
gasoline on speculation that U.S. output of the fuel will slow
because of unexpected refinery shutdowns.

BP Plc closed the largest of three crude units at its
refinery in Whiting, Indiana, a person familiar with the plant
said yesterday. The refinery, the biggest in the Midwest,
supplies consumers in the Chicago area. Refineries in Texas and
Kansas shut units last week. The crude-oil market often follows
gasoline during the summer months, when motor-fuel demand peaks.


Read more at Bloomberg Energy News

Sugar Rises as Brazilian Ethanol Production Reduces Output of Sweetener

(Bloomberg) -- Sugar in New York rose to a 12-week
high as mills in Brazil, the world's biggest producer, use more
sugar cane to make ethanol instead of the sweetener.

The center-south region of Brazil produced 5.4 million
metric tons of sugar this year as of June 15, down from 6 million
tons at the same point last year, the London-based International
Sugar Organization said today in an e-mailed report. Ethanol
output jumped 10 percent to 4.2 billion liters, the group said.


Read more at Bloomberg Commodities News

Oil Rises Above $73 on Expectations of Decline in U.S. Gasoline Production

(Bloomberg) -- Crude oil rose above $73 a barrel in
New York for the first time since August on speculation that
U.S. output of gasoline will slow because of unexpected refinery
shutdowns.

BP Plc closed the largest of three crude units at its
refinery in Whiting, Indiana, a person familiar with the plant
said yesterday. The refinery, the biggest in the Midwest,
supplies consumers in the Chicago area. Refineries in Texas and
Kansas shut units last week. The crude-oil market often follows
gasoline during the summer months, when motor-fuel demand peaks.


Read more at Bloomberg Energy News

UPDATE 2-Bernanke: Anchored expectations mute price swings

(Reuters) - CAMBRIDGE, Mass., July 10 - Swings in volatile
energy and food prices will have minimal impact on inflation as
long as expectations of future price gains are held steady,
Federal Reserve Chairman Ben Bernanke said on Tuesday.




"If inflation expectations are well anchored, changes in
energy prices should have relatively little
influence on 'core' inflation, that is, inflation excluding the
prices of food and energy," Bernanke told the National Bureau
of Economic Research.


Read more at Reuters.com Bonds News

UPDATE 1-Buyout firms bid for HeidelbergCement unit-sources

(Reuters) - The buyout firms were among those that submitted first-round
bids for the business last week, the sources said.




Other parties interested in the unit, which Germany's
largest cement maker plans to sell to pay for a takeover,
include EQT, CVC Capital Patners [CVC.UL] and Bain, Dow Jones
had reported after markets in Europe closed on Monday.


Read more at Reuters.com Mergers News

U.S. job movement steady in May - Labor Dept.

(Reuters) - The hires rate, which gauges the number of employees added
to payroll, increased slightly to 3.6 percent from 3.5 percent
in April.




May's job openings rate increased most in leisure and
hospitality but dipped in trade, transportation and utilities.
Hires were strongest in the professional and business
services.


Read more at Reuters.com Economic News

Greenbrier quarterly profit up, shares surge

(Reuters) - Greenbrier results came in as a "pleasant surprise," compared to the last few quarters which were quite disappointing, D.A. Davidson analyst, JB Groh, said over phone.




The Lake Oswego, Oregon-based company said a majority of deliveries in the current quarter comprised conventional railcars that aided the 15.8 percent rise in quarterly revenue.


Read more at Reuters.com Hot Stocks News

S&P-13.5 pct of US hybrid CDOs exposed to subprime

(Reuters) - Of European CDOs, only 20, or less than 1 percent of
publicly rated CDOs, have exposure to U.S. subprime loans, an
S&P report said.




Read more at Reuters.com Bonds News

UPDATE 1-Bank of Montreal to buy two Wisconsin-based banks

(Reuters) - Bank of Montreal, Canada's fourth largest bank, has agreed
to buy Ozaukee Bank in a stock transaction worth $190 million.




Ozaukee has $694 million in assets and six branches in the
Milwaukee area.


Read more at Reuters.com Mergers News

China, Indonesia, Philippines, Taiwan, Thailand: Asia Local Bond Preview

(Bloomberg) -- The following events and economic
reports may influence trading in Asian local-currency bonds
today. Yields are from the previous session.

China: The central bank sold 10 billion ($1.3 billion) yuan
of one-year zero-coupon bonds at a yield of 3.0928 percent
yesterday. China Development Bank will auction 20 billion yuan of
10-year floating rate bonds today. The Ministry of Finance will
sell 35 billion yuan of three-year fixed-rate notes on July 13.


Read more at Bloomberg Bonds News

Emerging-Market Bonds Fall on Concern About U.S. Housing, Subprime Market

(Bloomberg) -- Emerging-market bonds fell on concern
the U.S. housing market slump may curtail growth in the world's
largest economy, reducing demand for the exports of developing
nations.

Home Depot Inc, the world's biggest home-improvement
retailer, cut its profit forecast, as weakness in the housing
industry deepened. The move triggered aversion to riskier assets
such as stocks and emerging-market bonds.


Read more at Bloomberg Emerging Markets News

Acuity, Gemstar, Greenbrier, International Speedway: U.S. Equity Movers

(Bloomberg) -- The following is a list of companies
whose shares are having unusual price changes in U.S. exchanges
today. Stock symbols are in parentheses after company names.
Share prices are as of 10:20 a.m. New York time.

Acuity Brands Inc. (AYI US) fell $3.23, or 5.1 percent, to
$60.31. The maker of lighting fixtures under the Gotham, Peerless
and Hydrel brands said it expects ``continued cost pressures''
and declining demand in the residential housing market. The
company also reported third-quarter earnings a share of 88 cents,
matching analysts' estimates.


Read more at Bloomberg Stocks News

UPDATE 1-ABX subprime index plummets on S&P rating move

(Reuters) - Standard & Poor's said on Tuesday it may cut 612
residential mortgage-backed securities backed by U.S. subprime
loans, traders said.




The ABX 2007-1 "BBB-minus" index, which references risky
home loans made in last year's second half, fell 6.5 points to
49 from 55.5 on Monday, traders said.


Read more at Reuters.com Bonds News

Dollar Falls to Record Against Euro on Housing Slowdown, Subprime Concern

(Bloomberg) -- The dollar fell to a record against
the euro and declined versus the yen on speculation a slumping
housing market will slow the U.S. economy more than expected.

The U.S. currency also weakened against the Swiss franc,
British pound and Danish krone after Standard & Poor's warned it
may cut ratings on $12 billion of bonds backed by subprime
mortgages, diminishing the appeal of dollar-denominated assets.
Futures show traders expect the Federal Reserve to keep
borrowing rates steady through the end of the year.


Read more at Bloomberg Currencies News

Liberty likely to seek rest of DirecTV shrs: analyst

(Reuters) - Citigroup raised its price target for DirecTV to $30 from
$24. The share closed at $24.39 on Monday on the New York Stock
Exchange.




Liberty agreed to exchange a stake in Rupert Murdoch's News
Corp. for a 38 percent controlling stake in DirecTV in a deal
that is expected to close by the end of the year.


Read more at Reuters.com Mergers News

Treasuries Rise Most in Week as S&P Says It May Cut Subprime Bond Ratings

(Bloomberg) -- Treasuries rose the most in more
than a week after Standard & Poor's said it may cut credit
ratings on $12 billion of bonds backed by subprime mortgages,
raising concern housing weakness may slow the U.S. economy.

Credit-default swaps, contracts used to speculate on a
company's ability to repay debts, rose to the highest premium
since March in the U.S. and Europe on concern over declining
earnings and speculation over subprime mortgage losses.


Read more at Bloomberg Bonds News

D.R. Horton says orders fall, sees loss

(Reuters) - "Market conditions for new home sales declined in our June quarter as inventory levels of both new and existing homes remained high, and we expect the housing environment to remain challenging," said Chairman Donald Horton, in a statement.




The company added that as a result of the weak market, it will post significant asset impairments which will result in a loss for both the third quarter and the nine-month period.


Read more at Reuters.com Business News

Canadian Stocks May Decline on Home Depot Forecast, Higher Interest Rates

(Bloomberg) -- Canadian stocks may fall for the first
time in four days, after Home Depot Inc. said profit will fall and
the Bank of Canada raised borrowing costs, signs that a slowing
housing market, higher interest rates and a soaring Canadian dollar
may hurt earnings.

Exporters of raw-materials including First Quantum Minerals
Ltd. may decline after U.S. based Home Depot, the world's largest
home improvement retailer, said earnings will drop between 15
percent and 18 percent in the fiscal year through Feb. 3, more than
a previous forecast of a 9 percent decline.


Read more at Bloomberg Stocks News

Primary dealers see 25 bps Bank of Canada rate hike

(Reuters) - All 13 of Canada's government securities dealers forecast
rates will rise 25 basis points.




Heading into the decision, the Canadian dollar was trading
at C$1.0496 to the U.S. dollar, or 95.27 U.S. cents. Government
bonds were higher.


Read more at Reuters.com Economic News

UPDATE 1-Monotype sees IPO of 11 mln shares at $13-$15 each

(Reuters) - In an amended filing with the U.S. Securities and Exchange
Commission, the provider of products to display and print high
quality digital text said it plans to sell 6 million shares
while stockholders will sell an additional 5 million shares.




The selling stockholders have granted the underwriters a
30-day option to purchase up to about 1.7 million shares of
common stock.


Read more at Reuters.com Government Filings News

UPDATE 1-Activision says quarterly results to top its view

(Reuters) - Activision shares climbed about 3 percent to $18.95 in
premarket trading after it released the data.




Activision said it shipped over 4 million "Spider-Man 3"
games, 2 million "Shrek the Third" games, about 1 million of
its "Transformers: The Game", and more than 1 million "Guitar
Hero II" games in the quarter.


Read more at Reuters.com Market News

IEA chief urges OPEC to increase output - Le Monde

(Reuters) - The head of the International Energy Agency urged OPEC on Tuesday to increase its output immediately, saying there was a risk that stocks of refined oil products might not suffice.

Mandil said he was concerned about oil prices. Brent oil futures rose to an intraday high of $76.34 on Monday, the highest since August last year.


Read more at Reuters Africa

Activision says quarterly results to top forecast

(Reuters) - The company did not give new forecasts. On May 31, it
forecast net revenue of $425 million for the first quarter and
earnings per share of 3 cents.





Read more at Reuters.com Market News

Court to hear arguments in "light" smokes case

(Reuters) - The defendants in the case include Altria Group Inc.'s Philip Morris USA unit; Reynolds American Inc.'s R.J. Reynolds Tobacco Co.; Loews Corp.'s Lorillard Tobacco unit; Vector Group Ltd.'s Liggett Group; and British American Tobacco Plc's British American Tobacco Ltd.




The appellate court's decision, although not expected on Tuesday, would help shape how far the case is ultimately allowed to go, said Benjamin Zipursky, professor at Fordham University School of Law.


Read more at Reuters.com Government Filings News

Robusta Coffee Advances in London on Concern Demand Will Outpace Supplies

(Bloomberg) -- Robusta coffee climbed in London on
concern demand for the bitter-tasting beans used to make espresso
and instant coffee will outpace supply.

Global coffee production may fall 9.2 percent to 120 million
60-kilogram (132-pound) bags in the next crop season ending
September 2008, commodity researcher F.O. Licht said in a report
last week. Vietnam, the world's biggest grower of robusta, has
exported almost all of its last harvest, while stockpiles in
European warehouses have fallen 12 percent this year, pushing
prices to a nine-year high of $1,945 a ton on June 22.


Read more at Bloomberg Commodities News

EU Emission Permits for Next Year Decline as U.K. Natural Gas Prices Fall

(Bloomberg) -- European Union carbon dioxide
permits declined as the cost of natural gas in the U.K. fell.

Emission permits for delivery in December 2008 dropped as
much as 32 cents, or 1.5 percent, to 20.80 euros ($28.38) a metric
ton and traded at 21 euros a metric ton at 11:24 a.m. in
Amsterdam, according to prices from the European Climate Exchange.


Read more at Bloomberg Energy News

Aeon Q1 profit falls 16 pct on weak Talbots sales

(Reuters) - Despite weak first-quarter results, Aeon stuck to its
forecast for an eighth year of record earnings, citing a
rebound in domestic superstore sales and the appointment of a
new chief executive at Talbots.




"We expect a significant recovery in earnings in the fiscal
second half," Aeon Executive Vice President Masaaki Toyoshima
told reporters in Tokyo. "We think that would make up for the
weak first quarter and help us realize our annual targets."


Read more at Reuters.com Business News

UPDATE 1-Mexico's Cemex clears way for full Rinker takeover

(Reuters) - The $14 billion Rinker takeover, the biggest ever by a
Mexican company, will consolidate Cemex's position as the
world's biggest building material company by revenue.




Monterrey-based Cemex declared its offer unconditional on
June 7 after gaining more than 50 percent of shareholder
acceptances, enough to give it majority control of Rinker. In
May it had lowered the number of acceptances it required to 50
percent from an original 90 percent in order to push through
the bid.


Read more at Reuters.com Mergers News

Sweden's Oskarshamn-3 Nuclear Reactor Start Delayed; No New Date Is Given

(Bloomberg) -- E.ON AG, Germany's biggest utility,
said the resumption of production has been delayed at its
Oskarshamn-3 nuclear reactor in Sweden, which was halted on July
8 following the discovery of a faulty valve.

The 1,150-megawatt unit will be halted for an unspecified
amount of time, the company said in a message distributed by the
Nord Pool ASA power exchange.


Read more at Bloomberg Energy News

U.S. Notes Little Changed; Fed's Bernanke May Reinforce Inflation Concern

(Bloomberg) -- U.S. Treasury notes were little
changed before a speech today by Federal Reserve Chairman Ben S.
Bernanke, who may say inflation is still a risk to the economy.

Notes have fallen this month as traders bet prices for goods
and services are rising fast enough to keep policy makers from
cutting the benchmark interest rate from a six-year high.
Treasuries dropped 0.4 percent so far in July, adding to losses
in May and June, according to Merrill Lynch & Co. data.


Read more at Bloomberg Bonds News

Germany's DAX Index Climbs; DaimlerChrysler, Allianz Gain After Upgrades

(Bloomberg) -- Germany's benchmark DAX Index climbed
for a third day, led by DaimlerChrysler AG, Allianz SE and
Deutsche Boerse AG after brokerages lifted their recommendations
or price estimates for the shares.

The DAX gained 24.72, or 0.3 percent, to 8102.11 at 9:42
a.m. in Frankfurt. DAX futures expiring in September increased
0.3 percent to 8165. The HDAX Index of the country's 110 biggest
companies added 0.3 percent.


Read more at Bloomberg Stocks News

Ahorro Corporacion Targets U.S. Investors With Spanish Mortgage Bonds

(Bloomberg) -- Ahorro Corporacion Financiera SV,
the investment group owned by 43 Spanish savings banks, is
turning to U.S. investors as a property slowdown makes it harder
to sell mortgage bonds in Europe.

Ahorro Corporacion plans to sell at least $2 billion of
notes backed by home loans, the biggest dollar-denominated
offering of so-called covered bonds from Spain, said Luis
Sanchez-Guerra, head of capital markets in Madrid. Banco Bilbao
Vizcaya Argentaria SA, the second largest Spanish lender, plans
its first U.S. sale of covered bonds, using public sector loans
as collateral for $1.5 billion of debt, according to a July 6
report from Moody's Investors Service.


Read more at Bloomberg Bonds News

Germany's DAX Index Rises, Led by DaimlerChrysler, Allianz and RWE

(Bloomberg) -- German stocks advanced, led by
DaimlerChrysler AG, Allianz SE and RWE AG.

The benchmark DAX Index rose 19.18, or 0.2 percent, to
8096.57 as of 9:06 a.m. in Frankfurt. The HDAX Index of the
country's 110 biggest companies climbed 0.2 percent.


Read more at Bloomberg Stocks News

Buybacks, solid earnings forecasts lift US stock indexes

(Reuters) - U.S. stocks rose on Monday on growing optimism about second-quarter earnings and plans by Johnson & Johnson and ConocoPhillips to buy back their own shares.

J&J gained 1 percent after the health-care company announced plans for a $10 billion share buyback. ConocoPhillips, which nearly quadrupled its repurchase plan to $15 billon, rose 3.7 percent.


Read more at Reuters Africa