UPDATE 1-U.S. new home sales fell 1.6 percent in May

(Reuters) - WASHINGTON, June 26 - Sales of new U.S. homes
fell 1.6 percent in May to a lower-than-expected level while
prices climbed from April, according to a government report on
Tuesday that continued to point to weakness in the housing
sector.




New single-family home sales fell to an annual rate of
915,000 from a downwardly revised rate of 930,000 in April, the
Commerce Department said.


Read more at Reuters.com Economic News

Bond prices mixed ahead of two-year auction

(Reuters) - "The market rallied quite a bit over the last couple of days and these numbers are largely priced into the market. People just started to take some profits," said Frank Hsu, director of global fixed income at Fimat in New York.




Benchmark 10-year Treasury notes were flat in price to yield 5.09 percent, versus 5.09 percent late on Monday.


Read more at Reuters.com Hot Stocks News

Treasury Two-Year Note Yields Advance From This Month's Low Before Auction

(Bloomberg) -- Treasury two-year note yields rose
from their lowest this month before today's auction of $18
billion of the securities.

Yields advanced even as reports showed purchases of new
homes dropped in May and a measure of consumer confidence fell
this month to the lowest level since August. Two-year yields had
fallen 10 basis points over the past two trading days on concern
a weak housing market will lead to losses for investors in
mortgage-backed securities.


Read more at Bloomberg Bonds News

New home sales ease, while confidence falls

(Reuters) - Sales of new U.S. homes fell 1.6 percent last month to an annual rate of 915,000 from a downwardly revised rate of 930,000 in April, the Commerce Department said on Tuesday. Analysts had been looking for May new home sales of 925,000.




While sales fell, sales prices rose. The median sales price of a new home climbed 1.5 percent in May to $236,100 from $232,700 in April. That marked a reversal for new homes from April, when prices fell a record amount but sales rose strongly.


Read more at Reuters.com Business News

Yen Rises as Omi Emphasizes the Risks of Betting Against Japan's Currency

(Bloomberg) -- The yen gained the most in more than
two months versus the dollar after Japan's Finance Minister Koji
Omi said investors are taking risks in one-way bets against the
currency.

Japan's yen rose versus all 16 of the most-active currencies
tracked by Bloomberg after Omi told reporters in Tokyo that
``disorderly moves of foreign exchange rates are undesirable.''
The remarks were aimed at discouraging investors who borrow yen
to buy higher-yielding assets in carry trades. The currency was
higher versus the dollar after U.S. reports showed consumer
confidence and new-home sales declined.


Read more at Bloomberg Currencies News

Corrected: Altria to close plant, move production

(Reuters) - The move also further separates operations between the company's Philip Morris USA and Philip Morris International tobacco businesses at a time when Altria has said it is considering a spinoff its international business.




The plan will cost about $675 million by 2011 for accelerated depreciation, severance, relocation and other items, the parent company of Phillip Morris USA and Philip Morris International said.


Read more at Reuters.com Business News

UPDATE 1-First Community Bancorp buys commercial finance firm

(Reuters) - The deal value of $35 million consists of $6 million in
cash and $29 million in First Community common stock, the bank
holding company said in a statement.




Shares of San Diego, California-based First Community were
trading up about 2 percent at $56.99 in morning trade on the
Nasdaq.


Read more at Reuters.com Mergers News

America Movil, Grupo Mexico and Wal-Mart de Mexico: Mexican Equity Mover

(Bloomberg) -- Mexico's main stock index was little
changed as retailer Wal-Mart de Mexico SAB fell and cement-maker
Cemex SAB rose.

The Bolsa index gained 5.84, or less than 0.1 percent, to
31,301.85 at 10:03 a.m. New York time.


Read more at Bloomberg Stocks News

UPDATE 3-Altria to close plant, move production to Europe

(Reuters) - CHICAGO, June 26 - Altria Group Inc. on
Tuesday said it plans to shut its Cabarrus, N.C., cigarette
manufacturing facility by the end of 2010 and move production
of cigarettes for non-U.S. markets to Europe as it looks to cut
costs and reduce excess capacity.




The move also further separates operations between the
company's Philip Morris USA and Philip Morris International
tobacco businesses at a time when Altria has said it is
considering a spinoff its international business.


Read more at Reuters.com Bonds News

Visa hires president pre-IPO; Visa USA CEO resigns

(Reuters) - At Visa Inc., Morris will have responsibility for all income-generating businesses. Morris, 48, has spent his 27-year career at Citigroup and its predecessors. Since November 2002, he has been chief financial officer of Citi Markets & Banking, which includes investment and corporate banking operations.




The publicly traded entity to be known as Visa Inc. will combine Visa USA, Visa International and Visa Canada. Smaller rival MasterCard Inc. went public in May 2006.


Read more at Reuters.com Bonds News

Egypt shares rebound, housing sector leads

(Reuters) - Egyptian shares rebounded on Tuesday after three days of declines, carried higher by gains in the volatile housing sector including Heliopolis Housing, traders said.

"In terms of turnover, Heliopolis Housing, Sixth of October Development and Investment, and Alexandria Real Estate are the three major players," said Walaa Hazem of HC Securities.


Read more at Reuters Africa

Emerging-Market Bonds Little Changed, at Seven-Week High For Risk Premium

(Bloomberg) -- Emerging-market bonds were little
changed, with yields over U.S. Treasuries holding at a seven-
week high, as concerns about losses linked to subprime mortgages
limit demand for riskier assets.

The average spread, or extra yield, over U.S. Treasuries on
emerging-market bonds was 1.66 percentage points, the highest
since May 7, according JPMorgan Chase & Co.'s EMBI Plus index.
The spread increased 7 basis points, or 0.07 percentage point,
yesterday, the most since April 30.


Read more at Bloomberg Emerging Markets News

UPDATE 1-PIMCO's Gross says "subprime crisis" not isolated

(Reuters) - Gross, the chief investment officer for Pacific Investment
Management Co., also said in his July investment outlook
newsletter posted at the firm's Web site that the recent Bear
Stearns Cos. hedge fund rescue was reminiscent of the
Long Term Capital Management episode nearly a decade ago.




"Shame on you Mr. Stearns, or whoever you were, for scaring
us investors like that and moving the Blackstone IPO to the
second page of the WSJ," writes Gross, referring to the Wall
Street Journal. "We should have had a week of revelry and
celebration of levered risk-taking."


Read more at Reuters.com Bonds News

Chile's LAN raises $320 mln through capital increase

(Reuters) - Some 97.5 percent of the new stock was taken up during the
global offer and the remaining 2.5 percent was sold in the
Chilean market on Monday, LAN said.




The company said earlier this year it planned to use the
money to expand its fleet and to help fund $2.6 billion in
investments through to 2011.


Read more at Reuters.com Bonds News

UPDATE 1-Dutch Basell to buy Huntsman for $9.6 bln

(Reuters) - Huntsman shares jumped 28.5 percent to $24.30 before the
bell from a close of $18.90 on the New York Stock Exchange.




"The combined company will have an extensive geographic
footprint, with operations on all continents of the world, and
will be well positioned in fast-growing markets such as China,
India, eastern Europe and Latin America," the companies said.


Read more at Reuters.com Mergers News

UPDATE 1-Telus says it won't bid for rival BCE

(Reuters) - "The inadequacies of BCE's bid process did not make it
possible for Telus to submit an offer," the company said in a
statement.




A company spokesman declined further comment.


Read more at Reuters.com Mergers News

BAE Credit-Default Swaps Surge as U.S. Begins Probe Into Saudi Arms Deals

(Bloomberg) -- The perceived risk of lending to BAE
Systems Plc, Europe's biggest weapons maker, surged by a record
after the U.S. Justice Department began a probe into the London-
based company's arms business in Saudi Arabia.

Credit-default swaps based on 10 million euros ($13 million)
of BAE debt jumped 11,000 euros to 28,000 euros, the biggest-ever
one-day increase, according to Deutsche Bank AG. The contracts
are at an eight-month high, indicating a deterioration in credit
quality.


Read more at Bloomberg Bonds News

Gafisa, Gol, Itau, Perdigao and Petroleo Brasileiro: Brazil Equity Movers

(Bloomberg) -- Brazil's main stock index gained for
the first time in three days, led by state-controlled oil company
Petroleo Brasileiro SA.

The Bovespa Index of the most-traded stocks on the Sao Paulo
exchange rose 350, or 0.7 percent, to 54,391.57 as of 9:29 a.m. New
York time.


Read more at Bloomberg Stocks News

U.S. Stocks Gain on Easing Subprime Concern; Freddie Mac, Apple Advance

(Bloomberg) -- U.S. stocks advanced after oil prices
fell and concerns eased that losses tied to subprime mortgages
will hurt financial company earnings.

Freddie Mac, the second-biggest U.S. mortgage finance
company, gained after its treasurer said the subprime slump is
``contained.'' Apple Inc., maker of the iPod music player, and
Google Inc., the world's most popular Internet search engine,
climbed after brokerages recommended buying the shares.


Read more at Bloomberg Stocks News

Alito Emerges as Champion of Business in First Full Term on Supreme Court

(Bloomberg) -- In what may have been the most pro-
business U.S. Supreme Court term in decades, standing out as
companies' No. 1 ally was no small feat. Justice Samuel Alito
managed it in his first full year.

As the court term comes to a close this week, Alito has
emerged as the justice friendliest to the interests of
corporations. He sided with the U.S. Chamber of Commerce, the
nation's largest business lobby, in 13 of 14 cases this term,
more often than any of his colleagues. He cast votes to limit
punitive damages, ease regulation and restrict suits by
investors, consumers and alleged victims of job bias.


Read more at Bloomberg Exclusive News

Altria to close plant, move production to Europe

(Reuters) - The parent company of Phillip Morris tobacco cited declining U.S. cigarette volume for moving production to Europe. The Cabarrus facility employs about 2,500 people.



Altria said it plans to consolidate U.S. cigarette manufacturing in Richmond, Va., and that Philip Morris International will shift the sourcing of about 57 billion cigarettes from Cabarrus to Europe by the third quarter of 2008.


Read more at Reuters.com Government Filings News

U.K. Benchmark FTSE 100 Recoups Losses; BT Group, Vodafone Shares Advance

(Bloomberg) -- U.K. stocks recovered earlier losses
as BT Group Plc and Vodafone Group Plc advanced.

The benchmark FTSE 100 Index lost 1.6, or less than 0.1
percent, to 6586.8 as of 2:18 p.m. in London after falling as
much as 0.7 percent.


Read more at Bloomberg Stocks News

US STOCKS-Futures rise on M&A news, homes data on tap

(Reuters) - NEW YORK, June 26 - U.S. stock index futures rose
on Tuesday as a takeover offer looked set to help lift the
health-care sector, while a dip in bond yields gave investors a
break from interest-rate worries.




Ventana Medical Systems Inc. , a tissue-based
diagnostics specialist, received a hostile takeover offer from
Swiss drug maker Roche late on Monday, sending Ventana
shares up nearly 50 percent to $77.30 in electronic composite
trading before the opening bell. For details, see
[ID:nWEN8975].


Read more at Reuters.com Bonds News

UPDATE 2-U.S. home prices fell in April-S&P/Case Shiller

(Reuters) - "A review of the decline in home price returns on a
regional level shows no region is immune to the weakening price
returns," Robert Shiller, chief economist at MacroMarkets LLC,
said in an S&P news release.




The composite month-over-month index of 20 metropolitan
areas fell 0.2 percent to 200.45 in April from March, bringing
the measure down 2.1 percent from April 2006.


Read more at Reuters.com Bonds News

Oil Falls on Speculation That U.S. Crude, Fuel Inventories Rose Last Week

(Bloomberg) -- Crude oil fell on forecasts that an
Energy Department report will show U.S. oil and fuel inventories
rose last week.

Crude-oil stockpiles increased 1.5 million barrels in the
week ended June 22, according to the median of responses by 13
analysts surveyed by Bloomberg News. Inventories of gasoline and
distillate fuel, a category that includes heating oil and diesel,
also rose, the survey showed.


Read more at Bloomberg Energy News

Vornado to buy 15 shopping centers for $209 mln

(Reuters) - The purchase price includes $120 million of cash and $89
million of newly issued preferred and common units. Vornado
would also assume $142 million of debt. The real estate
investment trust did not identify the seller. Vornado
representatives were unavailable for immediate comment.




Vornado expects to conduct the transaction in three stages
and complete it by the end of 2007.


Read more at Reuters.com Mergers News

Pound Rises to Two-Month High on View King to Signal Higher Interest Rates

(Bloomberg) -- The U.K. pound broke through the $2
barrier for the second time in as many days on speculation Bank
of England Governor Mervyn King will this week tell lawmakers
interest rates need to rise further to cap inflation.

The U.K. currency rose to its highest since May 1 against
the dollar as futures traders betting the pound had further to
appreciate pushed so-called net long positions to a four-month
high. King is due to testify before Parliament on June 28.


Read more at Bloomberg Currencies News

Platinum Advances as Buying by Manufacturers Increases; Palladium Declines

(Bloomberg) -- Platinum rose in London on buying by
manufacturers attracted by yesterday's slide in prices.

``We've seen a little bit more interest,'' said Mark
Bedford, director of precious-metals marketing at Johnson Matthey
Plc in Royston, England. ``When prices dropped yesterday, there
was more interest from industrial buyers.''


Read more at Bloomberg Commodities News

US April existing home prices fell-S&P/Case Shiller

(Reuters) - S&P said its composite month-over-month index of 10
metropolitan areas declined 0.3 percent in April to 218.93, for
a 2.7 percent year-over-year drop.




Read more at Reuters.com Bonds News

US STOCKS-Futures gain on M&A, steady bond yields

(Reuters) - Ventana Medical Systems Inc. , a tissue-based
diagnostics specialist, received a takeover offer from Swiss
drug maker Roche late on Monday, sending Ventana
shares up 52 percent to $78.75 in electronic composite
trading.




"There have been so many rumors that there will be no more
deals being done. VMSI getting taken out by Roche helps the
market out," said Todd Leone, head of listed trading at Cowen &
Co. in New York.


Read more at Reuters.com Bonds News

Kroger posts higher quarterly profit

(Reuters) - The company, which runs stores under such names as Kroger, Fred Meyer and Ralphs as well as the Littman and Barclay jewelry chains, said it still expects to earn $1.60 to $1.65 per share in the current fiscal year. That equates to 9 percent to 12 percent growth from the prior year, adjusted for an extra week in that year.




Kroger has been able to withstand strong pressure from supercenters such as Wal-Mart Stores Inc. , dollar stores, drugstores and natural-food chains such as Whole Foods Market Inc. by remodeling its stores, improving customer service, cutting some prices and promoting items such as fresher produce.


Read more at Reuters.com Business News

Kroger profit hit by labor charge

(Reuters) - Analysts, on average, had expected Cincinnati-based Kroger to earn 48 cents per share, according to Reuters Estimates.




The company, which runs grocery stores under such names as Kroger, Fred Meyer and Ralphs, as well as the Littman and Barclay jewelry chains, said charges related to a labor issue at one of its distribution centers reduced earnings by about 2 cents per share.


Read more at Reuters.com Market News

Marvell says shares to remain listed pending review

(Reuters) - Nasdaq had earlier decided to suspend Marvell's shares from
trading on June 28, if the company did not comply with the
continued listing requirements by June 26.





Read more at Reuters.com Government Filings News

U.K. Natural-Gas Prices Rises on Low Supplies; Next-Day Electricity Falls

(Bloomberg) -- U.K. natural gas for delivery today
rose as forecasts showed for a second day that demand may exceed
supply. Shippers withdrew gas from underground storage sites and
imported the fuel from Belgium. Power prices fell.

Gas for intraday delivery climbed to 23 pence a therm, an
increase of 4.5 percent from the last price for deliveries today
in trading yesterday. The price is equivalent to $4.6 a million
British thermal units. A therm is 100,000 Btus.


Read more at Bloomberg Energy News

Apple, Dow Jones, FreightCar America, Google, IXYS: 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. Shares prices are as of 7:30 a.m. New York time.

Apple Inc. (AAPL US) added $1.18 to $123.52 in trading
before U.S. exchanges opened. RBC Capital rated the shares
``outperform'' in new coverage, setting its price forecast at
$160. RBS said it saw further upside for Apple shares based on
the company's continued dominance of the MP3 player market with
its iPod and iTunes and gains from its Mac computers.


Read more at Bloomberg Stocks News

NY seeks Wal-Mart records on alleged surveillance

(Reuters) - The comptroller, who is the investment advisor for New York City's pension funds, said he wants to inspect and copy all books and records referring to the proponent of any shareholder proposal submitted to Wal-Mart between 2002 and the present.




As noted in Thompson's letter, news of the alleged surveillance was first reported on April 4 by the Wall Street Journal. On April 20, Wal-Mart sent shareholders a letter saying it had conducted a "lengthy internal investigation" and denied the surveillance had occurred, Thompson recounted.


Read more at Reuters.com Business News

Altria to move some cigarette production to Europe

(Reuters) - The parent company of Phillip Morris tobacco cited declining U.S. cigarette volume for moving production to Europe. The Cabarrus facility employs about 2,500 people.



Altria said it plans to consolidate U.S. cigarette manufacturing in Richmond, Va., and that Philip Morris International will shift the sourcing of about 57 billion cigarettes from Cabarrus to Europe by the third quarter of 2008.


Read more at Reuters.com Mergers News

No quick profit in China credit card market: survey

(Reuters) - The survey, commissioned by a unit of First Data Corp. , a credit card transaction processor, found that 85 percent of respondents believe the prospects for credit cards in China are promising.




But 43 percent of retail bankers reckon it will be hard to make money in the market over the next three years, due in part to inadequate payment and regulatory infrastructure and a deep-rooted savings culture that shuns plastic, the survey found.


Read more at Reuters.com Bonds News

RPT-U.S. panel to ask SEC about proxy access, hedge funds

(Reuters) - WASHINGTON, June 26 - All five commissioners of
the U.S. Securities and Exchange Commission are to appear on
Tuesday at a Congressional hearing that is expected to explore
hedge fund activities, access to corporate proxy statements and
so-called soft-dollar arrangements.




House Financial Services Chairman Barney Frank, a
Massachusetts Democrat, told Reuters he wants to question all
of the commissioners "just to find out what they're saying."


Read more at Reuters.com Mergers News

Futures edge up, housing data looms

(Reuters) - Lennar Corp. , the No. 2 U.S. home builder, reported a quarterly loss and forecast another loss for the third quarter. Lennar said it continues to see weak and "perhaps deteriorating market conditions" for the remainder of 2007.




Shares of Lennar traded in Frankfurt fell 2.5 percent.


Read more at Reuters.com Business News

Cracker Barrel parent says June sales rose 1.1 percent

(Reuters) - In the company's gift shops, same-store sales rose 2.9 percent in the four weeks that ended June 22, the company said.



) Keywords: CBRL SALES/


Read more at Reuters.com Market News

ITT says plans to acquire IMC for $395 mln

(Reuters) - The company also forecast the deal to be slightly dilutive
to ITT's earnings per share in 2007, although it expects it to
be accretive to earnings in 2008.




Read more at Reuters.com Mergers News

Hiroshi Watanabe to End Term as Japan's Top Currency Official, Person Says

(Bloomberg) -- Hiroshi Watanabe will step down as
Japan's top currency bureaucrat after presiding over a 12
percent decline in the yen against the dollar, a Finance
Ministry official said.

Watanabe will be replaced as vice finance minister for
international affairs by Naoyuki Shinohara, the official said on
the condition of anonymity. The ministry usually reshuffles its
top personnel around this time of the year.


Read more at Bloomberg Currencies News

US STOCKS-Futures edge up, housing data looms

(Reuters) - Lennar Corp. , the No. 2 U.S. home builder, reported
a quarterly loss and forecast another loss for the third
quarter. Lennar said it continues to see weak and "perhaps
deteriorating market conditions" for the remainder of 2007.




Shares of Lennar traded in Frankfurt fell 2.5
percent.


Read more at Reuters.com Bonds News

Help sought in Chinese tire recall after accident

(Reuters) - The New Jersey importer, Foreign Tire Sales, has told U.S. safety officials the tires were sold under the names Westlake, Telluride Compass and YKS, according to lawyers representing families of people involved in the fatal car accident blamed on the tires.




U.S. traffic safety officials were not immediately available for comment; nor was Foreign Tire Sales in Union, New Jersey.


Read more at Reuters.com Government Filings News

UPDATE 1-Help sought in Chinese tire recall after accident

(Reuters) - The tires, made by Hangzhou Zhongce Rubber Co., have an
insufficient or missing gum strip, a safety feature that helps
prevent them from separating, the lawyers and a consumers'
group said in a statement. The group, Safety Research &
Strategies, is urging retailers and wholesalers to stop selling
the tires.




The New Jersey importer, Foreign Tire Sales, has told U.S.
safety officials the tires were sold under the names Westlake,
Telluride Compass and YKS, according to lawyers representing
families of people involved in the fatal car accident blamed on
the tires.


Read more at Reuters.com Government Filings News

Fuel costs, competition push SAA into operating loss

(Reuters) - High fuel costs and competition from low-cost carriers dragged South African Airways into an operating loss of 603 million rand in the financial year to March, former parent Transnet said on Tuesday.

This compared with a profit of 425 million rand in the previous year, state rail and logistics group Transnet said in its results.


Read more at Reuters Africa

Subprime Turmoil Is `Severe But Contained,' Freddie Mac's Bitsberger Says

(Bloomberg) -- Freddie Mac Treasurer Timothy
Bitsberger said the subprime mortgages slump is ``severe but
contained.''

While rising defaults on subprime loans have pushed at least
60 mortgage companies to close or sell their operations and
forced Bear Stearns Cos. to offer a $3.2 billion bailout for one
of two money-losing hedge funds, the number of borrowers
potentially affected is limited, Bitsberger said in a speech in
London today.


Read more at Bloomberg Bonds News

U.S. Stock-Index Futures Advance; Apple, Google Shares Climb in Europe

(Bloomberg) -- U.S. stock-index futures advanced
after brokerages recommended buying shares of Apple Inc., the
maker of the iPod music and video player, and Google Inc., owner
of the world's most popular Internet search engine.

Oracle Corp., the world's third-largest software maker,
gained before reporting fourth-quarter earnings.


Read more at Bloomberg Stocks News

Spanish Property Developer Martinsa Faces Premium on 3 Billion-Euro Loan

(Bloomberg) -- Grupo Martinsa, the Spanish property
developer buying bigger rival Fadesa Inmobiliaria SA, increased
the interest offered on 3 billion euros ($4 billion) of loans to
finance the takeover, bankers involved in the transaction said.

Martinsa, run by Real Madrid soccer club's former president
Fernando Martin, will pay interest of 3.5 percentage points more
than benchmark lending rates on a 970 million-euro portion, 1
percentage point more than it initially sought to pay, said two
bankers involved in the deal.


Read more at Bloomberg Bonds News