Crude Oil Falls From Nine-Month High After Report of U.S. Inventory Gains

(Bloomberg) -- Crude oil fell more than $1 a barrel
from a nine-month high after an Energy Department report showed
that U.S. oil and gasoline stockpiles increased.

Crude-oil inventories surged 6.9 million barrels to 349.3
million in the week ended June 15, the report showed. It was the
biggest one-week gain since the week ended March 19, 2004.
Gasoline supplies rose 1.79 million barrels to 203.3 million.
Prices gained the past two days on concern Nigerian shipments
would be disrupted further because of a general strike.


Read more at Bloomberg Energy News

U.S. gold declines with oil

(Reuters) - Most-active gold futures for August on the COMEX division of the New York Mercantile Exchange slipped $4.80 to $659.90 an ounce, pulling off an early high at $665.40. On Tuesday, August gold extended its rally up to a 10-day high at $665.80 which nearly matched the June 8 high of $665.90.




"Gold got up to $665 and just stalled. And the ring was a little bit long at that point. So with the lower oil and unwinding long positions that put a little crimp in the rally," a trader said, referring to the August contract.


Read more at Reuters.com Hot Stocks News

UPDATE 1-Russia merges top energy shippers

(Reuters) - "You know that I have signed a decree forming a new company
on the basis of the two existing ones -- Sovcomflot and
Novoship," Putin was quoted by RIA Novosti news agency as
telling Sovcomflot's Director General Sergei Frank.




Russia has been seeking to merge Sovcomflot and Novoship
for several years, in line with the Kremlin's
strategy of enhancing control over the strategic energy sector
by creating mighty state giants.


Read more at Reuters.com Mergers News

European Stocks Rise on Takeover Speculation; Clariant, Ciba, Allianz Gain

(Bloomberg) -- European stocks advanced for the
first time in three days on speculation Clariant AG and Ciba
Specialty Chemicals AG may receive offers and Allianz SE may sell
its Dresdner Bank unit.

Clariant and Ciba surged after Huntsman Corp. of the U.S.
told Switzerland's Handelszeitung that the companies would be
``interesting'' takeover candidates. Allianz, Europe's largest
insurer, gained for a fifth day. CRH Plc climbed the most in two
weeks on expectations private equity groups may bid for the
building-materials maker.


Read more at Bloomberg Stocks News

Colgate, 3D Systems, Federated, LSI, Morgan Stanley: 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 10:10 a.m. New York time.

3D Systems Corp. (TDSC US) dropped $2.56, or 10 percent, to
$22.43. The maker of systems to create three-dimensional models
said it sold 1.25 million shares in a private placement for
$17.50 each. Proceeds from the sale, which amounted to about 6
percent of the shares outstanding prior to the offering, will be
used in part to fund the launch of its previously announced V-
Flash 3-D Modeler, the company said.


Read more at Bloomberg Stocks News

TREASURIES-Bonds fall, led by downturn in Bunds

(Reuters) - NEW YORK, June 20 - U.S. Treasury bond prices
fell on Wednesday, snapping a three-day rally, as a downturn in
European government bond prices touched off selling in
Treasuries.




Prices for German Bunds fell after central banks in Europe
signaled concerns over growing price pressures.


Read more at Reuters.com Bonds News

Mortgage applications drop

(Reuters) - The Mortgage Bankers Association's mortgage application index slid 3.4 percent to a seasonally adjusted 643.7 in the week ended June 15.




The drop in applications piled on to reports from the country's builders and the government this week suggesting any sustained housing rebound could be next year's business.


Read more at Reuters.com Business News

Xcel settles tax dispute over insurance policies

(Reuters) - As a result of the proposed settlement, the company expects to record a loss ranging from about $35 million to $45 million in 2007. Xcel now sees 2007 earnings of $1.20 to $1.32 per share.




Analysts had, on average, expected the company to earn $1.42 per share in 2007.


Read more at Reuters.com Government Filings News

Platinum Rises in New York After Impala Labor Talks; Palladium Also Gains

(Bloomberg) -- Platinum rose to a two-week high in
New York after Impala Platinum Holdings Ltd., the world's
second-largest producer, failed to reach a pay agreement with
workers in South Africa.

Talks ``are far from settlement,'' Eddie Majadibodu, chief
negotiator for the National Union of Mineworkers, said in an
interview. The union, which seeks a 15 percent pay increase, has
declared a dispute that paved the way for a possible strike.


Read more at Bloomberg Commodities News

TREASURIES-Prices sag with downturn in Bunds

(Reuters) - "The Bund market really had a strong reversal and that has
had a huge negative impact on Treasuries," said Tom Tucci, head
Treasuries trader at RBC Capital Markets in New York.




The September Bund future was down 18 ticks at
110.21, after posting a session high of 110.82, falling due to
the market's broadly bearish bias which emerged on renewed
jitters about rising global interest rates.


Read more at Reuters.com Bonds News

US' Paulson:China helping growth, must boost reform

(Reuters) - "While we agree with the Chinese on the direction of change
in their economic reforms, we differ over the pace," Paulson
said, adding: "I advocate an increased pace of reform at every
opportunity."




Read more at Reuters.com Bonds News

UPDATE 1-US' Paulson:China helping growth, must boost reform

(Reuters) - Paulson, in prepared testimony before the House of
Representatives Financial Services Committee, said he would
continue to press China for greater flexibility in the exchange
rate of its yuan currency, despite a decision not to label
Beijing a currency manipulator in a recent report.




"While we agree with the Chinese on the direction of change
in their economic reforms, we differ over the pace," Paulson
said, adding: "I advocate an increased pace of reform at every
opportunity."


Read more at Reuters.com Bonds News

European Bonds Fall as Central Banks Warn Interest Rates May Keep Rising

(Bloomberg) -- European government bonds fell,
sending 10-year yields to near the highest since August 2002,
after central banks in Europe warned of inflationary risks and
the possibility of higher interest rates.

Bunds were driven lower after minutes of the Bank of
England's last policy meeting unexpectedly showed Governor Mervyn
King and three other policy committee members voted for higher
interest rates. The Dutch central bank also forecast accelerating
inflation, and in Sweden policy makers increased rates for the
eighth time in 18 months, and said they'll need to raise them
further.


Read more at Bloomberg Bonds News

Yen Declines to Near Record Against Euro as BOJ Signals Rates to Stay Low

(Bloomberg) -- The yen fell to near a record low
against the euro and declined versus the dollar after minutes
from the Bank of Japan's May meeting said central bankers stuck
to a policy of raising interest rates ``gradually.''

Japan's currency also dropped to the weakest since September
1992 against the British pound and a two-decade low versus New
Zealand's dollar as fund managers increased investments using
borrowed yen in the so-called carry trade. Minutes from the Bank
of England added to speculation of an interest-rate increase as
soon as July, lifting the pound and adding to yen selling.


Read more at Bloomberg Currencies News

Uganda legal wrangles stall power projects - IMF

(Reuters) - Uganda has the resources to fix its crumbling infrastructure, seen as the last barrier to meeting its 7 percent growth target, but is being held up by legal disputes over projects, the IMF said on Wednesday.

IMF's Uganda country director Abebe Aemro Selassie told Reuters in an interview that Uganda's budget was in a strong position to finance urgently-needed road and energy projects.


Read more at Reuters Africa

US stock indexes slip as rising yields spur rate worry

(Reuters) - U.S. stocks slipped on Wednesday as a rise in benchmark Treasury bond yields rekindled concern that higher interest rates would cut into corporate profits.

Worries about higher interest rates overshadowed news of Home Depot Inc.'s plan for a $22.5 billion share buyback and a report of a stronger-than-expected profit at Morgan Stanley.


Read more at Reuters Africa

UPDATE 1-UK experts back cervical cancer vaccine for girls

(Reuters) - LONDON, June 20 - British medical experts have
recommended that girls aged 12 to 13 should be routinely
vaccinated against a virus that causes most cases of cervical
cancer, the Department of Health said on Wednesday.




The move follows similar recommendations in other countries
and is a further boost for Merck & Co Inc. and
Sanofi-Aventis SA , who jointly market Gardasil, the
only such vaccine so far approved in Europe.


Read more at Reuters.com Government Filings News

UPDATE 1-Markets may spoil wealth management party - survey

(Reuters) - A boost in equity markets, which form the main source of
income for wealth managers, was one key reason for the sector to
thrive, said Scorpio Partnership, which undertook the survey, as
well as new money put in by rich clients.




"There is a feeling that there is easy money to make at the
moment, but our research shows that long-term successes are only
built on sensible strategies," the London-based consultancy
group said in a statement on Wednesday.


Read more at Reuters.com Market News

US STOCKS-Indexes slip as rising yields spur rate worry

(Reuters) - NEW YORK, June 20 - U.S. stocks slipped on
Wednesday as a rise in benchmark Treasury bond yields rekindled
concern that higher interest rates would cut into corporate
profits.




Worries about higher interest rates overshadowed news of
Home Depot Inc.'s plan for a $22.5 billion share buyback
and a report of a stronger-than-expected profit at Morgan
Stanley .


Read more at Reuters.com Market News

Wall Street Rivals in Central Park Run for Charity, Bragging Rights, Beer

(Bloomberg) -- Credit Suisse Group's Michael
Marriott and Andrew Kimura have $1,000 riding on the JPMorgan
Chase Corporate Challenge, the charity race that will draw 30,000
runners to Central Park tonight and tomorrow night.

``In terms of bragging rights, this is for the full year,''
said Marriott, 44, who said he's been training for the event.


Read more at Bloomberg Exclusive News

UPDATE 1-Infineon CEO sees no Qimonda stake cut till Aug 9

(Reuters) - When asked on Wednesday whether the time was right to start
reducing Infineon's stake, Wolfgang Ziebart said: "No."




"At the moment we have a phase until the first year is over
during which we could only sell with a complete SEC filing,
which means this wouldn't be a convenient time to sell," Ziebart
said on the fringes of a corporate conference.


Read more at Reuters.com Mergers News

Canada Dollar Falls on Crude Oil Prices as Traders Await Retail Sales Data

(Bloomberg) -- The Canadian dollar declined the
most in a week after crude oil prices slipped from a nine-month
high.

Commodities, such as oil, make up more than half of
Canada's exports. A 36 percent gain in crude oil prices since
they hit a recent low of $49.90 of Jan. 18 contributed to the
currency's 9 percent advance against the dollar this year.


Read more at Bloomberg Currencies News

U.S. Stocks Rise on Home Depot Buyback, Morgan Stanley's Profit Jump

(Bloomberg) -- U.S. stocks fell after the yield on
the benchmark Treasury bond rose for the first time in four
days, reviving concern higher borrowing costs will curb growth.

Citigroup Inc., JPMorgan Chase & Co. and Wells Fargo & Co.
led declines in companies that benefit from low interest rates.


Read more at Bloomberg Stocks News

Crude Oil Falls From Nine-Month High on Forecast U.S. Fuel Supplies Rose

(Bloomberg) -- Crude oil fell from a nine-month high
on expectations that an Energy Department report will show U.S.
gasoline stockpiles increased for a seventh week.

Gasoline supplies rose 1.19 million barrels last week,
according to a Bloomberg News survey. Prices rose the past two
days on concern Nigerian shipments would be disrupted further
because of a general strike. The strike, which began at midnight,
has had no effect on production by Chevron Corp.'s Nigeria unit,
a company spokesman said.


Read more at Bloomberg Commodities News

UPDATE 1-Merrill seizes $800 mln Bear hedge fund assets

(Reuters) - The move makes it unlikely that the funds will be able to
restructure. Merrill's selling such a large quantity of
illiquid assets, which are mainly collateralized debt
obligations, could force prices in that market markedly lower,
sources said.




The two funds suffered double-digit losses through April
after making bad bets on securities backed by subprime loans.


Read more at Reuters.com Bonds News

DCP Midstream to privately place $130 mln of units

(Reuters) - The placement is expected to close on June 22, the natural
gas company said.





Read more at Reuters.com Bonds News

Fannie Mae sells $3.0 billion in bills

(Reuters) - Settlement is June 20-21.




Read more at Reuters.com Bonds News

Morgan Stanley profit beats estimates

(Reuters) - Net revenue rose 32 percent from last year to a record $11.5 billion, exceeding forecasts by about 16 percent. On a continuing operations basis, Morgan Stanley said earnings reached a new high.




Shares of Morgan Stanley were up $1.71, or 1.9 percent, to $89.51 in pre-market electronic trade.


Read more at Reuters.com Business News

Apple says iPhone to access YouTube content

(Reuters) - The iPhone will be the first mobile device to use the new format, Apple said. More than 10,000 videos will be available on the iPhone when it hit stores on June 29, with more material added each week.




AT&T Inc. has an exclusive deal to sell iPhones with its wireless subscriptions.


Read more at Reuters.com Business News

European Government Bonds Decline; 10-Year Yield Advances to 4.64 Percent

(Bloomberg) -- European government bonds fell in
London, erasing earlier advances.

The yield on the 10-year bund rose 4 basis points to 4.64
percent by 2:18 p.m. The price of the 4.25 percent bond due July
2017 fell 0.29, or 2.9 euros per 1,000-euro ($1,343) face amount,
to 96.91. Bond yields move inversely to prices.


Read more at Bloomberg Bonds News

Kenya's Safaricom 06/07 pretax profits rise 40 pct

(Reuters) - Kenya's leading mobile phone company Safaricom said pretax profit rose 40 percent to a "record" 17.19 billion shillings in the year ended March 31.

Safaricom also forecast a rise in subscriber numbers to 8 million by the end of the year from 6.8 million currently.


Read more at Reuters Africa

UPDATE 1-Canada leading indicator up 0.5 pct in May

(Reuters) - "The components related to household spending improved
markedly, while export demand for manufacturers' remained the
weakest sector," Statscan said in its report.




Housing starts flew up to a 4-month high, accompanied by
strong demand for furniture and household appliances. A strong
job market and robust economic growth kept consumer demand hot
for automotive products and services in general.


Read more at Reuters.com Economic News

Circuit City withdraws earnings forecast

(Reuters) - Analysts, on average, had been expecting a loss of 32 cents a share, according to Reuters Estimates.




Net sales declined 4.3 percent to $2.49 billion from $2.60 billion. Sales fell short of analysts' expectation of $2.44 billion.


Read more at Reuters.com Market News

Lender wariness signals peak for REIT buyouts

(Reuters) - Acquisitions such as Blackstone Group's $23 billion purchase of Chicago-based Equity Office Properties in February sent property prices soaring on talk of more such deals to come, particularly for office REITs.




But valuation and credit concerns have undermined lender confidence in commercial real estate, threatening private equity firms' strategy of funding takeovers by flipping properties soon after completing a deal.


Read more at Reuters.com Bonds News

UPDATE 1-Oplink to take Optical Communication private

(Reuters) - The offer represents a 5 percent premium to Optical's
Tuesday closing price of $1.57.




In June, Oplink bought a controlling stake of 58.1 percent
in the fiber optic components maker from Japanese cable maker
Furukawa Electric Co. Ltd. .


Read more at Reuters.com Bonds News

Copper Rises in London as Strike Threat Looms; Lead Advances to Record

(Bloomberg) -- Copper rose in London as stockpiles
fell and on speculation that strikes will disrupt production at
operations in Peru and Chile that account for at least 5 percent
of global supply. Lead jumped to a record and nickel climbed.

Workers at Codelco, the biggest copper company, Chile's
Collahuasi mine and Southern Copper Corp.'s Peruvian operations
have threatened to strike over pay demands. Inventories tracked
by the London Metal Exchange fell for the 23rd consecutive day,
the exchange said today in a daily report.


Read more at Bloomberg Commodities News

UPDATE 1-Canada April wholesale trade unexpectedly lower

(Reuters) - The decline, the sharpest since August 2003, followed a
revised growth rate of 2.3 percent in March and 0.9 percent in
February. Analysts had forecast, on average, that wholesale
trade would climb by 0.5 percent.




Wholesalers' inventories swelled by 0.5 percent in April,
which pushed the inventory-to-sales ratio up to 1.28, near a
3-year high, from 1.23 in March.


Read more at Reuters.com Economic News

Morgan Stanley profit rises, beats estimates

(Reuters) - NEW YORK, June 20 - Morgan Stanley on Wednesday said its second-quarter profit rose 40 percent, trouncing expectations as a number of trading and investment banking businesses achieved record results.



The No. 2 investment bank by market value said net income rose to $2.58 billion, or $2.45 a share, in the quarter ended May 31 from $1.84 billion, or $1.75, in the year-earlier period. The results beat the average analyst profit estimate of $2.00 a share, according to Reuters Estimates.


Read more at Reuters.com Market News

GLOBAL MARKETS-World stocks rally on hunt for risk, yen soft

(Reuters) - In the absence of market moving U.S. data on Wednesday,
investors will focus on speeches by Federal Reserve officials
and movements in oil prices -- which fell from this week's
10-month high -- for their impact on risk appetite.




Soft U.S. data over the past week has erased expectations
for a growth-dampening U.S. interest rate hike, which was
triggered by a jump in bond yields earlier this month.


Read more at Reuters.com Economic News

Darden, MGM Mirage, Morgan Stanley, NYSE Euronext: U.S. Equity Preview

(Bloomberg) -- The following is a list of companies
whose shares may have unusual price changes in U.S. exchanges
today. This preview includes news that broke after exchanges
closed yesterday. Stock symbols are in parentheses after company
names. Share prices are as of 7:35 a.m. New York time.

Brown Shoe Company Inc. (BWS US): The owner of the Famous
Footwear retail chain plans to open more than 500 stores in China
by 2012 through a joint venture with Hongguo International
Holdings Ltd. Shares of Brown Shoe gained 13 cents to $26.16 in
regular trading yesterday.


Read more at Bloomberg Stocks News

Nuveen agrees to $5.75 billion buyout

(Reuters) - The terms value Nuveen at $65 per share, or a 20 percent to the company's Tuesday closing price of $54.16. The transaction includes $550 million of assumed debt.



Chicago-based Nuveen becomes the latest financial industry company to agree this year to a buyout, following such companies as student lender Sallie Mae and transaction processor First Data Corp. .


Read more at Reuters.com Mergers News

Futures rise on Home Depot, earnings in focus

(Reuters) - Shares of Home Depot, a component of the Dow Jones industrial average were up 5.2 percent in Europe.




The home improvement chain announced its share repurchase plan late on Tuesday, when it also said its board had approved a $10.3 billion sale for its supply unit.


Read more at Reuters.com Business News

Morgan Stanley 2nd-qtr earnings rise

(Reuters) - Analysts' average earnings forecast was $2.01 a share,
excluding items, on revenue of $9.9 billion, according to
Reuters Estimates.




Rival Wall Street firms last week delivered mixed results,
with subprime mortgage losses weighing on trading results as
equities trading, mergers and debt underwriting have soared.


Read more at Reuters.com Bonds News

US mortgage applications drop, housing mired in slump

(Reuters) - NEW YORK, June 20 - Applications to buy and refinance homes dropped last week, an industry trade group said on Wednesday, the latest sign that U.S. housing remains mired in a downturn.



The Mortgage Bankers Association's mortgage application index slid 3.4 percent to a seasonally adjusted 643.7 in the week ended June 15.


Read more at Reuters.com Bonds News

Swedish Krona Gains by Most in Almost Five Years as Riksbank Raises Rates

(Bloomberg) -- Sweden's krona advanced by the most
in almost five years against the euro after the country's central
bank lifted its benchmark interest rate and said it will increase
it twice more this year as rising employment threatens to feed
inflation.

The krona soared to its highest this month, and climbed to a
two-week high versus the dollar, after Sweden's central bank, the
Riksbank, raised borrowing costs to 3.5 percent and said its repo
rate would have to be around 4 percent at the end of the year, up
from a previous forecast of 3.5 percent.


Read more at Bloomberg Currencies News

Hungarian Economy Minister Says Forint Limits Hobble Inflation Battle

(Bloomberg) -- Hungarian Economy Minister Janos
Koka said the forint's trading limits are hobbling the central
bank's ability to cut the European Union's highest inflation
rate, the first Cabinet member to suggest they may need to be
abolished.

Scrapping the trading band would allow the forint to
strengthen enough to cut import prices and bring down the annual
inflation rate, at 8.5 percent in May. Koka's comments contrast
those of central bank Governor Andras Simor, who says inflation
can be slowed without freeing the forint, and Finance Minister
Janos Veres, who says the Cabinet is not ready to lift the
limits.


Read more at Bloomberg Emerging Markets News

Lead at fresh record high on stocks, copper firm

(Reuters) - Lead rose to a new record high on Wednesday, boosted by low inventory levels while a slew of looming strikes at mines drove copper prices higher.

Nickel gained around 2.5 percent after tumbling around $3,000 on Tuesday but analysts see more downside potential as more stainless steel producers cut back production.


Read more at Reuters Africa

S.African union threatens dispute against Lonmin

(Reuters) - A South African trade union threatened on Wednesday to declare a dispute with the world's third biggest platinum producer Lonmin Plc about working overtime.

Solidarity union demanded a response to grievances by Friday or a dispute would be declared, the first legal step towards going on strike.


Read more at Reuters Africa

Kobe, Cleveland-Cliff in joint iron ore project

(Reuters) - Last November, Kobe, Cleveland-Cliff, Steel Dynamics Inc.
and another partner suspended efforts to jointly
develop a reduced iron plant, to convert taconite into nearly
pure iron in nugget form, using Kobe's technology called ITmk3.




The parties were unable to reach economic and commercial
terms for the project, including completion of non-recourse
financing.


Read more at Reuters.com Mergers News

L'Oreal says Sanofi share sale not imminent

(Reuters) - "We stick to our position," a L'Oreal spokesman said on Wednesday. "Our stake is not strategic, its historical. We don't have any particular project in mind with the participation of about 10 percent in Sanofi. A share sale is not imminent."



Oil company Total and L'Oreal, which together own about 23 percent of Sanofi, have both said they don't consider their stakes as strategic.


Read more at Reuters.com Mergers News