European Bonds Advance as Global Stocks Drop on Subprime, Risk Aversion

(Bloomberg) -- European government bonds rose for a
second day, pushing two-year yields to near the lowest in three
months, as stocks slid on concern U.S. subprime mortgage losses
will slow economic growth and drive-up global financing costs.

Bunds gained as credit-default swaps trading showed the risk
of owning European corporate debt rose and as investors pulled
out of equities. Bear Stearns Cos. ousted Co-President Warren
Spector after credit-market losses and eroding investor
confidence, stoking appetite for the safety of government debt.


Read more at Bloomberg Bonds News

US stock futures rise, suggest respite before Fed

(Reuters) - The Fed releases its decision on Tuesday and is expected to
leave interest rates unchanged at 5.25 percent. Interest rate
futures <0#FF:> show traders are betting on the central bank
delivering at least one rate cut by the end of this year.




By 0927 GMT September S&P futures were up 0.5 percent
in Europe but still around their lowest in nearly five months.


Read more at Reuters.com Bonds News

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

Global Stocks Decline on Mortgage Concern, Paced by UBS, BNP, Macquarie

(Bloomberg) -- Stocks in Europe and Asia fell,
following a drop in the U.S. last week, as concern mounted that
losses in the U.S. mortgage market will erode economic growth and
raise financing costs for companies.

UBS AG and BNP Paribas SA led a decline by financial shares
in Europe, while Macquarie Bank Ltd. and Mizuho Financial Group
Inc. paced falling shares in Asia. Royal Philips Electronics NV
and Lafarge SA decreased as the dollar traded near a record low
against the euro. BHP Billiton Ltd. and Rio Tinto Group declined
after copper fell in Shanghai.


Read more at Bloomberg Stocks 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

Garmin to buy its Italian distributor

(Reuters) - Aug 3 - Navigational devices maker Garmin Ltd. said it plans to buy its Italian distributor, Synergy S.p.A., to strengthen its European sales and marketing presence.



Financial terms of the proposed deal were not disclosed.


Read more at Reuters.com Mergers News

BA profit rise beats forecasts

(Reuters) - Earnings before interest and taxes of 263 million pounds for the three months to end-June beat all forecasts ranging from 206 million to 237 million pounds in a Reuters Estimates poll of four analysts.




Europe's third-largest airline cited lower severance charges and pensions costs as well as a more favorable tax rate to explain the year-on-year gain.


Read more at Reuters.com Market News

UPDATE 1-EU executive sees no pan-EU fallout from IKB

(Reuters) - Officials working for Internal Market Commissioner Charlie
McCreevy, the bloc's top financial regulator, and for Economic
and Monetary Affairs Commissioner Joaquin Almunia are studying
the situation at IKB, a Commission spokesman said.




"We see no particular reason at this moment in time to be
worried. We see no pan-European implications. The matter has
been dealt with by the competent authorities," he said.


Read more at Reuters.com Bonds News

Vallourec Q2 earnings ahead of expectations

(Reuters) - The average forecast by seven analysts in a Reuters poll was
for second quarter sales of 1.498 billion euros, an EBITDA
operating profit of 445 million and a net profit of 245 million.
The net profit rose 7.5 percent to 257.7 million.
Vallourec said it expected a sales rise of between 7 and 10
percent in the second half while the gross operating margin in
the second half should be close to that of the first half,
before taking into account seasonal effects such as maintenance
expenses seen at 40 million euros for the year.




It added that a further weakening of the dollar would reduce
the contributions of non-European units in group results.


Read more at Reuters.com Market News

U.S. Stocks Rally on Earnings, M&amp;A Speculation; GM, Dow Jones Shares Gain

(Bloomberg) -- U.S. stocks rose for a second day on
better-than-estimated earnings and renewed takeover speculation.

General Motors Corp., the biggest U.S. automaker, gained on
improved results in Europe and North America. Sun Microsystems
Inc., the world's fourth-largest maker of server computers,
posted its steepest advance since January after component costs
fell. Dow Jones & Co. and Wendy's International Inc. jumped on
expectations they'll be bought. Stocks in Europe and Asia also
extended a recovery from last week's $2.1 trillion global rout.


Read more at Bloomberg Stocks News

Treasuries Fall as Gains in Corporate Bonds, Stocks Reduce Safety Demand

(Bloomberg) -- Treasuries fell as gains in
corporate bonds and stocks sapped demand for the safety of
government securities.

A rebound in higher-risk assets combined with yields near
the lowest since May provided investors with few reasons to buy
Treasuries. The risk of owning European corporate bonds fell by
a record today, according to traders of credit-default swaps.


Read more at Bloomberg Bonds News

European Carbon Emission Permits for December 2008 Rise for a Sixth Day

(Bloomberg) -- European Union carbon dioxide
permits rose for the sixth straight day, the longest consecutive
run of price gains since May 21.

Permits for December 2008 rose as much as 60 cents, or 2.9
percent, to 21.45 euros ($29.39) a metric ton on the European
Climate Exchange in Amsterdam. They traded at 21 euros a ton at
8:52 a.m. local time.


Read more at Bloomberg Energy News

European Stocks Fall, Led by IKB, UBS, Commerzbank; ICI Gains on New Bid

(Bloomberg) -- European stocks fell for a fifth day,
led by financial-services companies after IKB Deutsche
Industriebank AG of Germany said profit will be ``significantly''
lower than forecast, hit by the U.S. subprime mortgage rout.

IKB tumbled 20 percent. UBS AG, the biggest money manager,
and 3i Group Plc, Europe's largest publicly traded buyout and
venture-capital firm, led declines by financial companies.
Commerzbank AG slid after saying it expects to make provisions
for losses tied to the U.S. subprime mortgage market.


Read more at Bloomberg Stocks News

Lehman Strategist Bennett Says Corporate Bond Risk `Only For The Brave'

(Bloomberg) -- Ben Bennett, a credit strategist at
Lehman Brothers Holdings Inc. in London, comments on today's
increase in corporate bond risk.

Contracts on 10 million euros ($13.8 million) of debt
included in the iTraxx Crossover Series 7 Index of 50 European
companies increased by 28,000 euros to 474,000 euros, according
to JPMorgan Chase & Co. Earlier the index rose as high as
504,000 euros.


Read more at Bloomberg Bonds News

Euro Advances Against Yen, Dollar as Stocks Rise, Investors Return to Risk

(Bloomberg) -- The euro gained the most in six weeks
against the yen as a recovery in stock markets lured investors to
riskier assets.

The euro rose against the dollar as Asian and European
equities rebounded, prompting investors to buy higher-yielding
assets with borrowings in Japan, which has the lowest interest
rate among major economies. The yen also retreated today as a
technical indicator signaled the currency's rally last week was
too fast.


Read more at Bloomberg Currencies News

European Stocks Decline on Credit Concerns; Allianz, Anglo American Slide

(Bloomberg) -- European stocks had their biggest
weekly drop in almost five months on concern difficulties in the
credit market may curb mergers and acquisitions as investors are
shying away from risky debt.

Allianz SE and UBS AG led declines by financial companies.
Anglo American Plc, the world's second-largest mining company,
paced a retreat in mining shares as copper prices fell on
speculation a slump in homebuilding will reduce demand in the
U.S.


Read more at Bloomberg Stocks News

Platinum Falls Most in Eight Months on Stronger Dollar; Palladium Declines

(Bloomberg) -- Platinum fell the most in eight
months in New York as the dollar strengthened, reducing the
metal's appeal as an alternative investment. Palladium also
dropped.

Platinum is traded mostly in dollars, which rose to a two-
week high against the euro, making the metal more expensive for
holders of the European currency. U.S. stocks extended
yesterday's drop, the biggest in five months, as investors
shunned riskier investments in favor of bonds.


Read more at Bloomberg Commodities News

Credit Suisse poaches Lehman metals/mining banker

(Reuters) - He will be part of Credit Suisse's European energy group and
report to Jeremy Fletcher, chairman of the bank's EMEA metals
and mining unit. He is slated to start Sept. 3 and will be based
in London.




Tory, who also previously worked as an attorney, has advised
Anglo-American, Glencore International and Rio Tinto .
Lehman was advising Alcoa on a possible bid for Alcan
before the Canadian company agreed to be bought by Rio Tinto.


Read more at Reuters.com Mergers News

US economy, exports driven by global growth-Paulson

(Reuters) - "Now I believe what we're seeing is a strong global
economy. This is the strongest global economy I've seen in 32
years. The growth rate in Europe has doubled. We've got growth
throughout Asia. Japan is now growing, so I think this is being
driven by strong growth outside of the U.S."




The Commerce Department said earlier that U.S. economic
growth rebounded to 3.4 percent during the second quarter, its
strongest pace since the beginning of last year on a surge in
business investment, increased government spending and improved
trade performance. The data marked a big turnaround from anemic
0.6 percent growth in the first quarter, a figure previously
reported as 0.7 percent.


Read more at Reuters.com Economic News

Gold Heads for Weekly Decline in London on Dollar Rebound; Silver Drops

(Bloomberg) -- Gold fell in London, heading for the
biggest weekly decline in more than four months, as gains in the
dollar reduce demand for the metal as an alternative investment.
Silver also dropped.

Gold has declined 3.3 percent this week after the dollar
headed for the first weekly advance in seven against the euro.
European central banks have sold about two-thirds of the bullion
allowed under an agreement that runs through Sept. 26, World Gold
Council figures show.


Read more at Bloomberg Commodities News