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

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

Asian Currencies Complete Weekly Decline, Follow Drop in Regional Stocks

(Bloomberg) -- Asian currencies completed a weekly
decline, led by a 0.9 percent drop in the Indonesian rupiah, as
overseas investors reduced holdings in the region's stocks.

Global funds were net sellers of shares in South Korea,
Taiwan and Thailand this week as benchmark stock indexes dropped.
Indonesia's central bank said Aug. 1 it's not worried by the
rupiah's decline and the International Monetary Fund said the
next day the volatility in financial markets poses a risk to
economic growth.


Read more at Bloomberg Currencies News

Gold, Silver Little Changed After Drop on Concern Global Growth May Slow

(Bloomberg) -- Gold was little changed in Asia after
the biggest weekly decline in almost two months on concern that
global economic growth may slow, reducing the metal's appeal as a
hedge against inflation. Silver was also little changed.

Gold fell 3.3 percent last week amid a $2.1 trillion world
stock market rout and concern that U.S. subprime mortgage losses
may slow economic growth, reducing inflation. Investors usually
buy gold at time of rising raw material prices to preserve wealth.


Read more at Bloomberg Commodities News

US STOCKS-Indexes fall on persistent credit worries

(Reuters) - NEW YORK, July 27 - U.S. stocks fell on Friday as
persistent concern about financing for corporate takeovers amid
a broadening deterioration in credit markets offset positive
data on economic growth.




Comments by Treasury Secretary Henry Paulson briefly lent
some support, but the underlying tone on Wall Street remained
nervous, a day after equities suffered their second worst
decline of the year.


Read more at Reuters.com Bonds News

Dollar Rebounds as U.S. Stock-Index Futures Advance Before GDP Report

(Bloomberg) -- The dollar rebounded against the yen
and the euro as stock markets gained before a report expected to
show U.S. economic growth accelerated in the second quarter.

The dollar may trim this month's 1.8 percent decline versus
the euro as the Commerce Department will probably say the economy
expanded at an annualized 3.2 percent rate, the fastest in more
than a year, according to a Bloomberg survey. U.S. stock-index
futures rose and European stocks erased earlier losses.


Read more at Bloomberg Currencies News

Shanghai Copper Falls as World Stock Markets Tumble; Zinc, Aluminum Down

(Bloomberg) -- Copper futures in Shanghai fell as
stock markets dropped around the world, fueling concern that
economic growth may slow and curb demand for the metal, used in
housing, cars and appliances.

Asian stocks fell the most in four months today, continuing
a rout in global equities, as investors shunned riskier assets
because of a worsening U.S. housing recession. U.S. orders for
durable goods also fell unexpectedly last month, suggesting the
economy will slow in the second half of the year.


Read more at Bloomberg Commodities News

Philippine Bonds Slump on Fitch Rating Statement: World's Biggest Mover

(Bloomberg) -- Philippine bonds dropped, the
biggest fluctuation of any government debt market today, after
Fitch Ratings said the nation's fiscal deficit may almost double
this year due to lower-than-expected revenue. The peso fell.

Seven-year yields rose to highest in more than a week as
Fitch today said the budget deficit may reach 125 billion pesos
($2.8 billion) this year without asset sales, leaving the
government with less funds to spend on public works needed to
boost economic growth. President Gloria Arroyo, in an annual
address yesterday, reiterated plans to build more roads, ports
and bridges while lowering the cost of doing business.


Read more at Bloomberg Bonds News

JGB futures hit 6-week high, boosted by Treasuries

(Reuters) - Treasuries rallied on Friday after investors became
increasingly nervous that subprime mortgage losses would spread
to other markets and eventually shave economic growth.




Still, expectations remained that the Bank of Japan will
raise interest rates to a 12-year high of 0.75 percent from the
current 0.5 percent, and this was likely to limit further gains
in JGBs.


Read more at Reuters.com Bonds News

Brazil fixed-rate bond yields rise after bank move

(Reuters) - Brazil sold 548.84 million reais of the same bonds, known
as LTNs, due in October 2008 to yield 10.76 percent compared
with 10.84 percent when the 2008 bond was last sold on June 5.




The central bank's monetary policy committee voted 4-3 to
cut the benchmark Selic lending rate to a record low of 11.5
percent from 12 percent on Wednesday. Analysts said the close
vote may signal policy-makers will probably trim the size of
rate cuts to 25 basis points going forward as they balance the
risk that faster economic growth will stoke inflation.


Read more at Reuters.com Bonds News

South Korea, EU to Seek Progress on Free-Trade Agreement as WTO Hopes Fade

(Bloomberg) -- South Korea and the European Union
aim to move closer this week to a free-trade agreement that would
strengthen their 61 billion-euro ($84 billion) relationship while
creating jobs and fueling economic growth.

The EU wants greater access to South Korea's markets for
cars, pharmaceuticals, cosmetics, chemicals and machinery. South
Korea wants EU duties slashed on electronics and auto parts, and
more access to audio-visual industries such as broadcasting and
films. An agreement, which may come within a year, follows on the
heels of a U.S.-South Korea free-trade accord, or FTA.


Read more at Bloomberg Emerging Markets News

GLOBAL MARKETS-Dow, S&P500 set records even as oil jumps

(Reuters) - NEW YORK, July 13 - U.S. stocks rallied to record
highs on Friday on optimism about economic growth, takeovers
and corporate profits even as oil prices surged on concerns
about North Sea production problems.




The Dow blue-chip index set a record for the second
straight day and the Standard & Poor's 500, a broader measure
of large U.S. stocks, regained a life high after seven years.


Read more at Reuters.com Bonds News

U.S. Treasury Notes Rise First Time in Four Days on Concern Over Subprime

(Bloomberg) -- Treasuries advanced for the first
time in four days on speculation subprime mortgage losses may
slow U.S. economic growth.

Losses from bonds secured by subprime home loans may reach
$52 billion amid rising foreclosures on the mortgages, analysts
at Credit Suisse Group said in a research note. Benchmark yields
increased last week the most in more than a year on reports for
June showing the economy added more jobs than economists
forecast and services industries unexpectedly grew at the
fastest pace in 14 months.


Read more at Bloomberg Bonds News

U.S. Stocks Gain for a Second Week; S&P 500 Rises Most Since April on M&A

(Bloomberg) -- U.S. stocks advanced, giving the
Standard & Poor's 500 Index its biggest weekly gain since April,
propelled by $50 billion in announced takeovers and reports that
signaled economic growth is accelerating.

Hilton Hotels Corp. had the top advance in the S&P 500
after agreeing to a $20 billion buyout by Blackstone Group LP, a
record purchase for the hotel industry. Exxon Mobil Corp., the
world's largest oil company, surged to an all-time peak and
helped push the Dow Jones Industrial Average higher after crude
prices jumped above $72 a barrel.


Read more at Bloomberg Stocks News

Pound Falls Against Dollar as U.S. Services Growth Unexpectedly Quickens

(Bloomberg) -- The U.K. pound fell against the
dollar after a U.S. report showed growth in service industries
unexpectedly quickened to the fastest pace in 14 months.

The pound has climbed nearly 3 percent versus the dollar
this year on anticipation U.K. economic growth that's outpacing
the U.S. will prompt the Bank of England to keep raising
interest rates. Expansion in U.S. service businesses, which make
up almost 90 percent of the economy, adds to evidence growth
picked up last quarter.


Read more at Bloomberg Currencies News

US online help-wanted ads down in June, report says

(Reuters) - "Online job demand has been virtually unchanged over the last few months but continues to show a better than 20 percent gain over last year," said Gad Levanon, economist at the Conference Board.




"Tight labor markets in many areas of the country and in specific occupations and industries like IT and healthcare are forcing companies to advertise more aggressively than last year in order to find the employees they need. We do not expect economic growth to accelerate until the end of the year, but finding the right employee is already a challenge in many areas of the country," he added.


Read more at Reuters.com Economic News

Indonesian Inflation Slows to Seven-Month Low; Bank May Cut Interest Rate

(Bloomberg) -- Indonesia's inflation eased to a
seven-month low in June, and the pace may encourage the central
bank to cut interest rates further to spur economic growth.

Consumer prices rose 5.8 percent from a year earlier after
gaining 6 percent in May, the Central Statistics Bureau said in
Jakarta today. The median estimate of 16 economists surveyed by
Bloomberg News was for a 5.9 percent increase. Inflation
accelerated to 0.2 percent from a month earlier.


Read more at Bloomberg Emerging Markets News

European Bonds Post Steepest Quarterly Drop in Eight Years Amid Inflation

(Bloomberg) -- European government bonds logged
their steepest quarterly decline in almost eight years, as
quickening economic growth and inflation increased the likelihood
the European Central Bank will increase interest rates further.

German bunds, Europe's benchmark, fell for a fourth month in
June, as the ECB raised its lending rate to the highest since
2001 and indicated further increases are needed to curb
inflation. ECB President Jean-Claude Trichet has said borrowing
costs remain low enough to stimulate expansion in the $10.4
trillion economy.


Read more at Bloomberg Bonds News

US STOCKS-Wall Street drops on credit concerns

(Reuters) - NEW YORK, June 29 - U.S. stocks fell on Friday
as banks and brokers retreated on concerns about the impact of
tightening credit on takeovers and the subprime mortgage
industry.




Early gains evaporated as oil rose to $71 a barrel and
investors booked profits before the quarter's end and the July
4th holiday week. That offset data pointing to moderating
inflation and economic growth.


Read more at Reuters.com Bonds News

European Stocks Fall, Led by Banks, Insurers; BP, Shell Advance on Oil

(Bloomberg) -- European stocks fell before reports
that may shed light on the strength of economic growth in the U.S.

Schroders Plc, London's biggest publicly traded money manager,
and Allianz SE, Europe's largest insurer, paced the retreat.


Read more at Bloomberg Stocks News