Rand holds firm while stocks, bonds slip

(Reuters) - South Africa's rand held firm on Wednesday, despite faltering metals prices and equities falling as investors spurned risky assets, but bonds continued to slide.

The local currency was trading at 7.1780 to the dollar at 1515 GMT, 0.22 percent stronger than its previous New York close and well off a session low of 7.2325, touched in early trade. It was little changed against the euro, at around 9.62.


Read more at Reuters Africa

WRAPUP 1-US May durable goods orders fall,stir growth fears

(Reuters) - It was the first drop in durable goods orders since January
and followed a 1.1 percent rise in April, the Commerce
Department said on Wednesday. Analysts were expecting orders to
slip by only 1 percent.




A separate report showed U.S. mortgage applications fell
for the second straight week as interest rates remained near
recent highs and made home buying more expensive.


Read more at Reuters.com Bonds News

Private equity firms see rising threat of lawsuits

(Reuters) - Almost half of 170 private equity professionals
surveyed by Marsh, a unit of the world's largest insurance
broker Marsh & McLennan Cos. Inc. , said they expected to
defend against more legal action over the next two years.




Only 6 percent said they expected less legal action.


Read more at Reuters.com Government Filings News

Nymex Gas Is Steady Amid Reduced Concern Over Hot Weather, Storm Threat

(Bloomberg) -- Natural gas in New York was little
changed as intense hot weather that spurs demand and storms that
pose a possible threat to production haven't materialized.

``It looks like it's trying to hold this $6.80 level as far
as the July contract goes, you may have the shorts come in and
take some profit and get a bounce,'' said Brad Florer, a trader
with Kottke Associates Inc. in Louisville, Kentucky. ``And a lot
of guys who are long, are thinking if they can just tread water
and hold here, they'll get a storm and a move, and everything
will be alright.''


Read more at Bloomberg Energy News

Puerto Rico funding probe swirls around governor

(Reuters) - In recent weeks, a grand jury has subpoenaed Acevedo Vila's
records at the University of Puerto Rico, where he was a
student, and, according to newspaper reports, heard testimony
from employees of swanky clothing stores where the governor and
his political party, the Popular Democratic Party , have
admitted to paying cash to buy him $40,000 worth of suits.




The local news reports -- some based on what the governor
has called leaks of false information -- have also said the
grand jury is investigating claims he received gifts of jewelry
and cosmetic surgery.


Read more at Reuters.com Bonds News

U.S. Stocks Retreat on Drop in Durable Goods; GE, Moody's Shares Decline

(Bloomberg) -- U.S. stocks fell for a fourth day
after a government report said orders for durable goods
declined more than forecast and concerns lingered that losses
may worsen in bonds tied to mortgage loans.

General Electric Co., which makes products ranging from
appliances to jet engines, retreated. Moody's Corp., whose
founder created credit ratings, helped push a gauge of
financial shares to its lowest since April.


Read more at Bloomberg Stocks News

Apple IPhone Reviewers Say Device Lives Up to Hype and Even Inspires Lust

(Bloomberg) -- Apple Inc.'s iPhone is a ``beautiful
and breakthrough'' mobile device that lives up to the hype.

That's the word from reviewers for the Wall Street Journal,
New York Times and USA Today, who praised the software and design
of Apple's melded mobile phone and iPod media player. The
iPhone's strengths outweigh its spotty network service and price
of as much as $600, they said.


Read more at Bloomberg Exclusive News

Home loan demand drops to 4-month low

(Reuters) - The Mortgage Bankers Association said its seasonally adjusted index of mortgage applications, which includes both refinancing and purchasing loans, for the week ended June 22 fell 3.9 percent to 618.6 -- its lowest in four months.




Applications, however, were 16.8 percent above their year-ago level. The four-week moving average of mortgage applications, which smooths the volatile weekly figures, was down 0.7 percent.


Read more at Reuters.com Business News

Norway's Krone Strengthens as Central Bank Raises Benchmark Interest Rate

(Bloomberg) -- Norway's central bank raised its
benchmark interest rate and said rates will be lifted more than
previously forecast as widespread labor shortages threaten to
boost wage growth and fuel inflation.

The bank increased the deposit rate by a quarter point to 4.5
percent. The rate will average 4.5 percent this year and 5.75
percent in 2008 and 2009, the bank said, lifting a previous
forecast by a quarter-point this year and half a point for the
next two years. In 2010, the bank sees the rate at 5.5 percent.


Read more at Bloomberg Currencies News

Iran Starts Rationing of Gasoline, Sparking Protests in Tehran's Streets

(Bloomberg) -- Iranians rioted in the streets of
Tehran after the government imposed rationing of gasoline, which
the country spends $5 billion a year to import.

Starting today, drivers will be allowed 100 liters, or about
26 gallons, of gasoline a month, Oil Minister Kazem Vaziri-Hamaneh
said on state television. Taxis will get 800 liters. Lawmakers said
earlier this month drivers would probably get five or six liters a
day, 50 percent more than the program actually grants them.


Read more at Bloomberg Energy News

Intergen plans $1.975 bln high-yield notes -lead

(Reuters) - Merrill Lynch, Lehman Brothers, Deutsche Bank and Barclays
Capital are managing the sale.




The company will meet with European investors between July 2
and July 5.


Read more at Reuters.com Bonds News

ServiceMaster restructures LBO debt financing

(Reuters) - To finance the acquisition, the company had initially
planned to sell $3.8 billion in debt, which included $1.15
billion in toggle payment-in-kind notes, said Robert Lee,
analyst at KDP Investment Advisors in Montpelier, Vermont.




Investor reticence toward this kind of note, however, led
them to reduce the PIK component to 50 percent, he said. The
remainder of the bond issue will now be bonds that have cash
interest payments.


Read more at Reuters.com Bonds News

Blockbuster, Netflix settle patent dispute

(Reuters) - Netflix sued Blockbuster last year for refusing to pay the online DVD rental company royalties. Blockbuster countersued Netflix on fraud and antitrust claims and said Netflix's patents were so broad as to be unenforceable.




Terms of the settlement were confidential, Blockbuster said in a regulatory filing on Wednesday. The company gave no further details, but said the settlement would have not material effect on its future earnings.


Read more at Reuters.com Business News

Chilean Copper Output Rises 3.9 Percent in May as Companies Expand Mines

(Bloomberg) -- Chile, the world's biggest copper
supplier, said output of the metal rose 3.9 percent in May as
companies expanded mines.

Output climbed to 479,049 metric tons from a revised
461,195 tons in May 2006, the Chilean government's National
Statistics Institute said today in Santiago.


Read more at Bloomberg Commodities News

RadioShack, Amazon.com Burn Short Sellers by Posting Top Gains in S&P 500

(Bloomberg) -- RadioShack Corp. and Amazon.com Inc.
have defied short sellers and Wall Street analysts this year by
posting the top gains in the Standard & Poor's 500 Index.

Shares of RadioShack, the third-largest U.S. electronics
chain, and Amazon, the world's biggest online retailer, were
among the 10 most-shorted in the S&P 500 as of June 15,
according to data from the New York Stock Exchange and the
Nasdaq Stock Market. Short sellers try to profit from stock
declines by selling borrowed shares and buying them back at a
lower price.


Read more at Bloomberg Exclusive News

UPDATE 1-EU hits gambling curbs in wave of legal action

(Reuters) - The Commission adopted 955 legal actions spanning telecoms,
energy, gambling and the financial sector.




"While important improvements have been made in recent
years, too many member states persistently infringe Community
law. That is why we are determined to act," Commission President
Jose Manuel Barroso said in a statement.


Read more at Reuters.com Government Filings News

US STOCKS-Futures fall on durable goods, risk jitters

(Reuters) - NEW YORK, June 27 - U.S. stock index futures fell
on Wednesday, suggesting a lower open on Wall Street, after
weaker-than-expected durable goods data added to uneasiness
about growth in the economy and corporate profits.




Futures were already pointing a weaker open before the
report. A rise in the yen against other major currencies and
pressure from the subprime mortgage market stirred concern that
the appetite for stocks might weaken.


Read more at Reuters.com Bonds News

People's United to buy Chittenden

(Reuters) - Chittenden shareholders will receive $20.35 plus 0.8775 times the average closing price of People's United in the five days prior to closing.




People's United said it will pay 55 percent of the purchase price, or roughly $1 billion, in cash.


Read more at Reuters.com Bonds News

UPDATE 1-KeyCorp freed from special Fed oversight

(Reuters) - Cleveland-based KeyCorp in a U.S. Securities and Exchange
Commission filing said the Office of the Comptroller of the
Currency and the Federal Reserve Bank of Cleveland have ended
their special oversight of its KeyBank N.A. unit.




KeyCorp in October 2005 had agreed with the regulators to
strengthen its anti-money laundering controls, including those
related to its obligations under the Bank Secrecy Act.


Read more at Reuters.com Bonds News

US STOCKS-Blue chips fall on durables, risk worry

(Reuters) - NEW YORK, June 27 - U.S. blue-chip stocks fell on
Wednesday after weaker-than-expected durable goods data added
to uneasiness about the outlook for corporate profits.




Stocks were also under pressure from worries about higher
interest rates and the troubled subprime mortgage market, which
weighed on the financial sector.


Read more at Reuters.com Bonds News

General Electric Calls, Puts Should Be Sold, According to Goldman, Sachs

(Bloomberg) -- Investors should sell options on
shares of General Electric Co. because implied volatility, a key
factor in pricing the contracts, is poised to decline at the
world's second-biggest company by market value, according to
Goldman, Sachs & Co.

Investors who don't own GE shares should sell September
$37.50 puts, derivative strategists Maria Grant and John Marshall
wrote in a note to clients. Current shareholders should create
September $40 calls and September $37.50 puts and then sell them
to other investors, they said.


Read more at Bloomberg Stocks News

U.S. Stocks Retreat on Drop in Durable Goods; GE, ConocoPhillips Decline

(Bloomberg) -- U.S. stocks fell for a fourth day
after a government report showed orders for durable goods
declined more than forecast and energy producers slipped on a
drop in oil.

General Electric Co., which makes products ranging from
appliances to jet engines, retreated. ConocoPhillips, the
third-largest U.S. oil company, slid after it said it will
record a $4.5 billion charge to write off Venezuela projects.


Read more at Bloomberg Stocks News

S.Africa unions hint may accept wage deal

(Reuters) - One of the biggest public sector unions taking part in a damaging wage strike in South Africa said on Wednesday it was ready to accept a pay offer from the government.

Members of the National Education Health and Allied Workers Union (NEHAWU) were due to vote on the motion later on Wednesday as union negotiators held another meeting with the government to try to resolve the strike, SAPA news agency said.


Read more at Reuters Africa

McCormick & Co. quarterly profit beats forecast

(Reuters) - Net income for the fiscal second quarter ended May 31 was
$41.4 million, or 31 cents per share, including charges of 4
cents a share related to the restructuring program.




Analysts, on average, had expected the Sparks,
Maryland-based company to earn 29 cents per share after
one-time charges, according to Reuters Estimates.


Read more at Reuters.com Market News

Yen Gains the Most in 10 Weeks as Investors Scale Back Their Carry Trades

(Bloomberg) -- The yen rose the most in 10 weeks
against the euro and dollar as investors pared holdings of
emerging-market bonds and stocks funded by loans in the Japanese
currency.

Japan's yen gained against all 16 of the most-actively
traded currencies tracked by Bloomberg. The yen extended its
rally after global equity markets declined as investors shunned
riskier assets, prompting an unwinding of the so-called carry
trade. A U.S. report showed sales of durable goods, a proxy for
business spending, fell more than forecast.


Read more at Bloomberg Currencies News

Nymex Gas Declines on Reduced Concern Over Hot Weather, Threat of Storms

(Bloomberg) -- Natural gas in New York fell for the
eighth consecutive session as intense hot weather that spurs
demand and storms that pose a possible threat to production
haven't materialized.

``Both July and August are down, basically anticipating
another big injection,'' said Phil Flynn, vice president of risk
management at Alaron Trading Corp. in Chicago. ``It seems we're
starting to put aside the fears of a long, hot summer and
hurricane season and just focusing on supply.''


Read more at Bloomberg Energy News

CommScope to acquire Andrew for $2.6 billion

(Reuters) - The latest $15-a-share offer also represents a 16 percent premium over Andrew's closing share price on Tuesday. At least 90 percent of it will be paid in cash, the companies said in a statement.




The move comes amid a wave of mergers in the telecommunications industry, among service providers and their equipment vendors.


Read more at Reuters.com Mergers News

Guitar Center to be acquired by Bain Capital

(Reuters) - The offer represents a 26 percent premium over Guitar Center's closing price on Tuesday.




The transaction is expected to close in the fourth quarter, the company said.


Read more at Reuters.com Business News

Flight from risk weighs on base metals

(Reuters) - Investors switching to safer assets due to fears of economic slowdown weighed on industrial metals on Wednesday, but strikes at mines capped losses.

Weaker metal prices hit London-listed miners. Xstrata, BHP Billiton and Rio Tinto shed around 2.5 percent, in line with falling European shares, which tracked losses in U.S. and Asian markets.


Read more at Reuters Africa

Egyptian shares slip, hit by foreign markets

(Reuters) - Egyptian shares slipped on Wednesday under the influence of depressed foreign markets and because Egypt's financial year ends this week, brokers said.

Major housing stocks fell on sentiment and Ezz Steel dropped 4.5 percent after the Ezz Group sold 10 percent at a large discount on the London GDR market.


Read more at Reuters Africa

U.K. Natural Day-Ahead Gas Little Changed After Imports Satisfy Demand

(Bloomberg) -- U.K. natural gas for delivery today
was little changed after an increase in imports through the
Langeled pipeline from Norway yesterday helped ensure supply
would meet demand.

Gas for intraday delivery traded at 22.3 pence a therm at
12:11 p.m. local time, compared with yesterday's last price for
day-ahead gas of 22.45 pence a therm, according to data from ICAP
Plc. The latest price is equivalent to $4.45 a million British
thermal units. A therm is 100,000 Btus. Day-ahead gas declined
1.6 percent to 22.1 pence a therm.


Read more at Bloomberg Energy News

Copper Falls in London on Slowing U.S Demand, China Rates; Nickel Declines

(Bloomberg) -- Copper fell to a two-week low in
London on signs of sluggish demand in the U.S. and speculation
that China, the world's biggest consumer of the metal, will
raise interest rates. Aluminum and nickel also dropped.

New home purchases in the U.S., the second-biggest user of
the metal, fell in May, a government report showed yesterday,
signaling demand is still weak in the second year of a housing
slump. Builders are the biggest copper consumers.


Read more at Bloomberg Commodities News

U.S. Stock-Index Futures Retreat; ConocoPhillips, General Electric Decline

(Bloomberg) -- U.S. stock-index futures fell after
energy producers retreated on a drop in the price of oil and a
government report said orders for durable goods declined more
than forecast.

ConocoPhillips, the third-largest U.S. oil company,
slipped after it said it will record a charge of $4.5 billion
to write off its Venezuela projects. General Electric Co., the
second biggest company by market value, also dropped.


Read more at Bloomberg Stocks News

Dollar Accelerates Losses Versus Yen as Durable Orders Decline in the U.S.

(Bloomberg) -- The dollar extended its loss versus
the yen after a report showed durable goods orders in the U.S.
declined last month more than economists had forecast.

Japan's yen earlier gained the most against the dollar in 10
weeks as investors pared holdings of emerging-market bonds and
stocks funded by loans in the Japanese currency. Signs of
weakness regarding demand for business equipment in the U.S. may
increase speculation of a cut in borrowing costs by the Federal
Reserve later this year to spur growth.


Read more at Bloomberg Currencies News

UPDATE 2-Wells Fargo names Stumpf CEO; Kovacevich stays chair

(Reuters) - NEW YORK, June 27 - Wells Fargo & Co. ,
the fifth-largest U.S. bank, on Wednesday named John Stumpf chief
executive effective immediately, replacing Richard Kovacevich,
who will remain chairman.




Stumpf, 53, has been president and chief operating officer
since August 2005, and was long considered to be a leading
candidate to replace Kovacevich. Last June, Stumpf joined
Kovacevich as the only inside directors on the bank's board.


Read more at Reuters.com Bonds News

Merck wins U.S. priority review for HIV drug

(Reuters) - The agency grants priority review to products that are considered to be potentially significant therapeutic advancements over existing therapies.



With priority review status, the U.S. Food and Drug Administration will make its decision on whether to approve the drug within six months, rather than the usual 10- to 12-month review period.


Read more at Reuters.com Government Filings News

TREASURIES-Bond prices rise on lingering subprime woes

(Reuters) - These fears have been heightened after Bear Stearns
was forced to bail out a hedge fund which suffered large losses
due to its dealings in subprime mortgages.




"The subprime issue has become a much more focused problem.
It has certainly caused some unease in terms of the overall
equity market and the overall leverage picture. We have seen
some money flow into Treasuries," said Doug Bender, managing
director with McQueen, Ball & Associates in Bethlehem,
Pennsylvania.


Read more at Reuters.com Bonds News

ConAgra profit beats estimates on trading strength

(Reuters) - The company posted net income of $192.0 million, or 39 cents a share, for the fourth quarter ended May 27, compared with $59.2 million, or 11 cents, a year earlier.




Income from continuing operations was 38 cents a share, including costs of 2 cents a share related to a recall of Peter Pan peanut butter and a benefit of 1 cent a share from a lower-than-expected tax rate.


Read more at Reuters.com Market News

Iberdrola Completes $4.7 Billion Share Sale to Buy Energy East, People Say

(Bloomberg) -- Iberdrola SA, the world's largest
owner of wind-power parks, completed a share sale aimed at raising
3.5 billion euros ($4.7 billion) to pay for U.S. utility Energy
East Corp., two people with direct knowledge of the offering said.

The Spanish utility planned to sell 85 million new shares
through a so-called accelerated offering, the Bilbao-based power
producer said earlier today in an e-mailed statement. The people
declined to be identified before Iberdrola makes an announcement.


Read more at Bloomberg Stocks News

Guitar Center agrees to be acquired by Bain Capital

(Reuters) - The offer represents a 26 percent premium over Guitar Center's closing price on Tuesday.






Read more at Reuters.com Mergers News

CommScope to acquire Andrew Corp for $2.6 billion

(Reuters) - The acquisition is expected to add to CommScope's earnings
in the first full year after closing, it said.





Read more at Reuters.com Mergers News

ConAgra quarterly profit rises

(Reuters) - Income from continuing operations was 38 cents a share,
including costs of 2 cents a share related to a recall of Peter
Pan peanut butter and a benefit of 1 cent a share from a
lower-than-expected tax rate.





Read more at Reuters.com Market News

Los Angeles, Colorado, Texas School District Lead U.S. Municipal Borrowers

(Bloomberg) -- Los Angeles, Colorado and a school
district in Texas will sell a combined $1.7 billion of bonds in
today's largest sales of U.S. state and local government debt.

Los Angeles will borrow $916 million with so-called tax-
and-revenue anticipation notes to cover the city's cash flow
needs until taxes are paid. Colorado will offer $500 million of
similar notes, while the Cypress-Fairbanks Independent School
District in Texas near Houston will sell $275 million of long-
term bonds for school construction.


Read more at Bloomberg Bonds News

Wells Fargo names Stumpf CEO; Kovacevich stays chair

(Reuters) - Kovacevich has said he would remain with the company no later than the end of 2008, when he will be 65.




Read more at Reuters.com Business News

American Oriental Bioengineering to offer 8 mln shares

(Reuters) - The underwriters for the offering are Piper Jaffray & Co.,
CIBC World Markets Corp., Lazard Capital Markets LLC, Jefferies
& Co Inc. and Brean Murray, Carret & Co. LLC.





Read more at Reuters.com Government Filings News

Franc Gains for Fourth Day Versus Euro on Bets Risk Aversion Will Continue

(Bloomberg) -- The Swiss franc gained for a fourth
day versus the euro, its longest winning run in more than a
month, on speculation investors will keep shifting out of riskier
assets as stocks markets decline.

Switzerland's currency, which investors often buy in times
of economic uncertainty, has benefited as concerns the housing
slump in the U.S. will hurt global growth caused investors to
sell equities. It has gained with Japan's yen, another currency
investors have used to fund so-called carry trades.


Read more at Bloomberg Currencies News

European Government Bonds Gain by Most Since April as Investors Shun Risk

(Bloomberg) -- European government bonds advanced by
the most in two months as concern a weak U.S. housing market will
lead to investor losses in mortgage-backed securities stoked
demand for the safest assets.

Debt's gains pushed yields on 10-year bunds, Europe's
benchmark, to the lowest in two weeks as investors turn more risk
averse by shunning stocks in favor of debt. Expectations a weaker
housing market and losses related to subprime mortgages in the
U.S. will hurt global growth and hold down inflation also helped
lift bonds. European equity markets fell for a fifth day.


Read more at Bloomberg Bonds News

China poised to set up $200 bln investment fund

(Reuters) - The embryonic agency has already spent $3 billion on a 10
percent stake in Blackstone, a U.S. private equity group, as
part of a drive by Beijing to earn higher returns by making
riskier investments.




Lawmakers started to review a proposal that would authorize
the Ministry of Finance to issue 1.55 trillion yuan in special treasury bonds to buy foreign exchange to
fund the start-up of the agency, Xinhua news agency reported.


Read more at Reuters.com Bonds News

Bain to buy German yacht maker for about $1.8 bln

(Reuters) - LONDON/FRANKFURT, June 27 - Private equity firm Bain Capital is buying Germany's biggest yacht builder, Bavaria Yachtbau GmbH, for about 1.3 billion euros with plans to expand the business into new markets.



The company produced 3,500 yachts in the year ended July 31, 2006, at its facility in Giebelstadt with sales of about 271 million euros. Bavaria Yachtbau employs about 620 people.


Read more at Reuters.com Bonds News

SCO Capital says will not tender Bioenvision shares for merger

(Reuters) - In his fourth letter to Bioenvision, Steven Rouhandeh said he and his SCO Capital Partners investment vehicle still opposed the deal, since it did not reflect "the true value of Bioenvision and the clofarabine franchise."






Read more at Reuters.com Government Filings News