UPDATE 2-U.S. Midwest expansion roars along in June

(Reuters) - CHICAGO, June 29 - Business activity in the U.S.
Midwest continued to grow at a rapid pace in June as new orders
poured in, reports showed on Friday.




The National Association of Purchasing Management-Chicago
business barometer eased to 60.2 from 61.7 in May.


Read more at Reuters.com Economic News

Investors cut euro corp bonds in June -Citigroup

(Reuters) - Hedge funds, which had been increasing positions in May,
also reduced positions this month to return close to levels seen
in March following a sell-off in Chinese stocks and jump in
corporate credit spreads.
"The subprime fallout probably has more in store,"
Citigroup's credit strategists wrote in a note released late on
Friday.




"But the reduction in positions gives us some comfort that
most credit investors will no longer feel compelled to react as
severely to negative news going forward," they wrote.


Read more at Reuters.com Bonds News

European Stocks Advance in Quarter; DaimlerChrysler, LVMH, Swatch Rise

(Bloomberg) -- European stocks rose, posting a
fourth consecutive quarterly advance, after reports in the U.S.
signaled the world's biggest economy will keep growing without
stoking inflation.

DaimlerChrysler AG and LVMH Moet Hennessy Louis Vuitton SA
led gains today by companies most dependent on the U.S. for
sales. Swatch Group AG rallied after Deutsche Bank AG recommended
buying shares in the watchmaker because revenue and profit
margins may increase. Total SA and Royal Dutch Shell Plc rose as
oil climbed to a 10-month high.


Read more at Bloomberg Stocks News

S.African stocks dip as rand hits miners, BCX drops

(Reuters) - South African stocks dipped on Friday as a firmer rand hit mining shares and IT outsourcing firm Business Connexion slid after a planned buy-out by Telkom fell through.

The Johannesburg Top-40 index of blue-chip stocks slipped 0.40 percent to 25,564.57 points while the All-share index fell 0.23 percent to 28,337.22 points.


Read more at Reuters Africa

Zimbabwe gold firms working below fifth of capacity

(Reuters) - Zimbabwe's gold producers are operating below 20 percent of capacity while some have suspended operations over a deepening economic crisis and electricity cuts, the mining chamber said on Friday.

The news came after President Robert Mugabe on Wednesday threatened to seize and nationalise mines, especially gold producers he accused of smuggling the metal outside the country and stashing foreign currency earnings abroad as part of a campaign to undermine his government.


Read more at Reuters Africa

EU conditionally OKs Nestle's buy of Novartis unit

(Reuters) - The European Union executive said it gave the green light after the world's largest food group offered to divest overlapping activities in France and Spain.



"In the light of these commitments, the Commission has concluded that the proposed transaction would not significantly impede effective competition in the European Economic Area or any substantial part of it," the executive said in a statement.


Read more at Reuters.com Mergers News

Boxing brand Everlast center of takeover fight

(Reuters) - Everlast had signed a "go-shop" provision allowing it to seek other suitors.




Hidary also said it would be prepared to consider a further increase if Everlast's termination fee in connection with the other deal was invalidated.


Read more at Reuters.com Mergers News

CORRECTION - - UPDATE 1-U.S. judge approves BAWAG settlement in Refco case

(Reuters) - NEW YORK, June 29 - A U.S. judge approved a $140
million final settlement on Friday between Austrian bank BAWAG
and investors in Refco Inc., a major commodity and futures
broker that collapsed in 2005.




The settlement resolves the complaint against one major
defendant and boosts the investors' efforts for recoveries
against others, including several banks, an accounting firm,
Refco and some of its executives.


Read more at Reuters.com Bonds News

Soybean, Wheat Prices Soar as U.S. Farmers Cut Acreage to Plant More Corn

(Bloomberg) -- Soybeans surged the maximum amount
allowed by the Chicago Board of Trade after the government said
U.S. farmers planted less than analysts expected and the fewest
acres in 12 years. Wheat rose to a record.

Soybeans were planted on 64.08 million acres, a 12-year
low, the Agriculture Department said today. That's down 4.6
percent from a forecast in March and 15 percent below last
year. Analysts surveyed by Bloomberg were expecting 67.84
million. U.S. production may fall 18 percent to a four-year
low, depleting global inventories already at record low levels.


Read more at Bloomberg Commodities News

Core inflation eases, consumers hold firm

(Reuters) - In a report released on Friday, the Commerce Department said it "core" personal consumption expenditures price index, which removes food and energy costs, rose 1.9 percent in May from a year ago, its smallest annual rise since March, 2004.




On a month-to-month basis, prices rose a stiff 0.5 percent in May but core prices edged up just 0.1 percent.


Read more at Reuters.com Business News

Bear Stearns shakes up asset management unit

(Reuters) - Marin will remain as a senior adviser to Lane, the company said.




Earlier this week, Bear Stearns said it would bail out only one of two struggling hedge funds, providing $1.6 billion of financing to save its High-Grade Structured Credit Strategies Fund.


Read more at Reuters.com Business News

SAfrica ANC opens door for Mbeki to remain leader

(Reuters) - Although Mbeki must step down as the country's president in
2009, the ANC's constitution does not prevent him from staying
on as its leader, and he has not ruled out making another bid
for the job.




Read more at Reuters.com Bonds News

NAPM-Milwaukee says purchasing index up in June

(Reuters) - The index of the region's blue-collar employment rose in
June to 67 from 60, while white-collar employment was up 2
points at 57.




New orders jumped 19 points to 75 and production was at 72
against 63 in May. Supplier lead times fell 6 points to 38 and
order backlogs were up 13 points to 68.


Read more at Reuters.com Economic News

US stock indexes rise on tame inflation

(Reuters) - U.S. stocks rose on Friday after a inflation gauge watched by the Federal Reserve showed its lowest reading since March 2004, putting the Dow industrials on track to end the quarter on a strong note.

Among top gainers, shares of Research In Motion Ltd. surged after the BlackBerry maker posted a quarterly profit above Wall Street estimates and announced a 3-for-1 share split. The results triggered a flood of brokerage upgrades. For details, see ID:nN2838412.


Read more at Reuters Africa

U.S. Stocks Advance on Signs of Economic Growth, Slowdown in Inflation

(Bloomberg) -- U.S. stocks gained after reports
showed the economy is expanding without spurring inflation and
Research In Motion Ltd. and Apple Inc. rallied on growing
demand for their mobile devices.

Research In Motion, the maker of the BlackBerry e-mail
phone, surged after it reported first-quarter earnings that
topped analysts' estimates. Apple Inc. climbed on the day its
iPhone goes on sale in the U.S.


Read more at Bloomberg Stocks News

Antares to raise $15 mln from private placement

(Reuters) - The company said it will issue about 9.4 million shares at
$1.60 a share, together with warrants to purchase up to about
3.3 million additional common shares at $2.00 a share.





Read more at Reuters.com Mergers News

Cocoa Rises to Four-Year High in New York as Ivory Coast Minister Attacked

(Bloomberg) -- Cocoa rose to a four-year high in
New York after an attack on the prime minister of Ivory Coast,
the world's biggest grower, raised concerns that fighting may
resume in the country and cut production.

Prime Minister Guillaume Soro wasn't hurt when his plane
was attacked with rockets and small-arms fire after landing at
an airport in the central Ivory Coast town of Bouake, spokesman
Issa Doumbia said. Soro, a former rebel leader, signed a peace
accord with the government of President Laurent Gbagbo in March
that sought to end a civil war that began in 2002.


Read more at Bloomberg Commodities News

Teachers' Union Targets Bush's No-Child Law for Change Under Democrats

(Bloomberg) -- The largest U.S. teachers' union is
urging the Democratic-controlled Congress to fix ``serious
flaws'' in the No Child Left Behind law, a plan by President
George W. Bush to make schools more accountable for improving
students' basic skills.

The National Education Association, representing 3.2
million teachers and other school staffers, put the five-year-
old measure
at the top of the agenda for its national convention opening
tomorrow in Philadelphia. Seven Democratic candidates for
president and one Republican will address the meeting.


Read more at Bloomberg Exclusive News

US clears Rexam deal for Owens-Illinois

(Reuters) - Rexam, the world's biggest drinks can maker, said earlier
this month it wanted to buy O-I Plastics.




The company hopes the purchase of O-I Plastics will help it
ride a boom in the plastic packaging market. The $4 billion
U.S. market is expanding 7 percent annually as an aging and
healthcare-conscious population uses more medicines.


Read more at Reuters.com Government Filings News

Shares of RIM jump 18 pct after strong earnings

(Reuters) - Analysts at UBS, Bear Stearns, Banc of America, Credit Suisse and Morgan Keegan all upgraded RIM shares.




Though some analysts have raised concerns that competition from Apple Inc.'s iPhone could hurt sales of RIM smartphones, RIM forecast higher-than-expected guidance for the current quarter.


Read more at Reuters.com Hot Stocks News

UPDATE 1-U.S. consumer sentiment ends June at 10-month low

(Reuters) - The Reuters/University of Michigan Surveys of Consumers
said its final June figure on consumer sentiment was 85.3,
above a median forecast of 84.0 and the preliminary June
reading of 83.7.




The Reuters/University of Michigan consumer index was 88.3
at the end of May. It read 82.0 in August 2006.


Read more at Reuters.com Bonds News

US STOCKS-Indexes rise on tame inflation

(Reuters) - NEW YORK, June 29 - U.S. stocks rose on Friday
after a inflation gauge watched by the Federal Reserve showed
its lowest reading since March 2004, putting the Dow
industrials on track to end the quarter on a strong note.




Among top gainers, shares of Research In Motion Ltd.
surged after the BlackBerry maker posted a
quarterly profit above Wall Street estimates and announced a
3-for-1 share split. The results triggered a flood of
brokerage upgrades. For details, see [ID:nN2838412.


Read more at Reuters.com Bonds News

Gauge of U.S. economy held flat in latest week-ECRI

(Reuters) - The index held steady as weaker housing activity offset
positive factors such as lower interest rates and jobless
claims, said Lakshman Achuthan, managing director at ECRI.




WLI annualized growth rate declined to 6.5 percent from 6.7
percent reported the prior week.


Read more at Reuters.com Bonds News

Degussa Reprieve in EU Cartel Case Shows Confessions Good for Bottom Line

(Bloomberg) -- Executives at Degussa AG, the world's
biggest specialty chemicals maker, in 2002 blew the lid off a
six-year-old conspiracy to fix the price of hydrogen peroxide by
handing over proof of its own involvement in the scheme.

That revelation allowed the German chemical maker, which had
already been penalized for other antitrust violations, to avoid
another 130 million-euro ($175 million) penalty for its
wrongdoing.


Read more at Bloomberg Exclusive News

UPDATE 1-Hudson's shareholder sells 14.9 mln shares

(Reuters) - Fleming Funds, which are finite-life partnerships and have
been investing in Hudson for more than eight years, have
reached a point in the partnerships' term that makes it
necessary to seek liquidity of the partnerships' remaining
investments, Hudson said in a statement.




Hudson said it purchased and retired 5.7 million of its
shares from Fleming Funds, which previously owned 19.1 million
shares of the company, while certain executive officers and one
key employee of the company purchased the remaining 9.2 million
shares.


Read more at Reuters.com Mergers News

U.K. Stocks Rebound; Shares of Northern Rock, Reed Elsevier, ITV Increase

(Bloomberg) -- U.K. stocks rebounded, paced by
Northern Rock Plc, Reed Elsevier Plc and ITV Plc.

The benchmark FTSE 100 Index added 11.40, or 0.2 percent,
to 6582.7 as of 2:55 p.m. in London. The measure earlier slid as
much as 0.8 percent. The FTSE All-Share Index rose 4.85, or 0.1
percent, to 3393.01. Ireland's ISEQ Index fell 8.48 to 9296.27.


Read more at Bloomberg Stocks News

Nymex Natural Gas Futures Advance as Buyers Hedge Against Possible Storms

(Bloomberg) -- Natural gas in New York rose as lower
prices from yesterday's 6 percent decline attracted buyers more
worried about supply disruptions from Atlantic Basin storms than
either mild weather or rising storage levels.

``The potential for disruption in the next 16 weeks
outweighs what we have in storage,'' said Michael Rose, trading
director at Angus Jackson Inc. in Fort Lauderdale, Florida. ``You
have to do some forecasting, April, May and June are premature to
be hurricane-worrying, but July, August, September and October,
you can really worry.''


Read more at Bloomberg Energy News

Brazil's Real Rises as U.S. Price Index Eases, Boosting Local Investments

(Bloomberg) -- Brazil's currency rose as signs of
slowing inflation in the U.S. boosted speculation that returns
on high-yielding local assets will remain attractive.

``Concerns about inflation and higher rates in the U.S.
seem to have lifted, so the real is back on its appreciating
trend,'' said Ovidio Pinho Soares, a currency strategist at
Finabank Corretora in Sao Paulo.


Read more at Bloomberg Currencies News

European Stocks Recover Earlier Losses as Linde, BASF, Shell Advance

(Bloomberg) -- European stocks recovered earlier
losses as shares of Linde Group, BASF AG and Royal Dutch Shell
Plc advanced.

The Dow Jones Stoxx 600 Index was little changed, adding
less than 0.1 percent to 391.78 as of 2:25 p.m. in London. The
gauge has climbed 4.7 percent this quarter, heading for its
fourth consecutive gain, on speculation companies will keep
increasing profit and takeovers will rise. The index fell as much
as 0.5 percent earlier today.


Read more at Bloomberg Stocks News

U.S. Stocks Gain After Inflation Gauge Matches Forecast; Apple Shares Gain

(Bloomberg) -- U.S. stocks advanced after a
government report showed a measure of inflation matched
forecasts last month, giving the Federal Reserve leeway to cut
interest rates should the economy slow.

Research In Motion Ltd. rallied after the maker of the
BlackBerry e-mail phone reported first-quarter earnings that
topped analysts' estimates. Apple Inc. climbed on the day its
iPhone goes on sale in the U.S.


Read more at Bloomberg Stocks News

Commerce Bancorp open to mergers that make sense

(Reuters) - "We've often been presented with M&A opporutnities. Our
plan is to stay the course with what is working so well for us,
which is de novo expansion," said Dennis DiFlorio, chairman of
the company's Commerce Bank NA unit, on a conference call. He
nevertheless said Commerce would consider transactions that
make "good strategic sense for the company."




Read more at Reuters.com Mergers News

Treasuries Advance as Inflation Gauge Preferred by Federal Reserve Slows

(Bloomberg) -- Treasuries rose after a government
report showed the Federal Reserve's most closely watched measure
of inflation slowed in May and consumer spending increased less
than economists forecast.

U.S. government securities also got a boost from investors
who typically buy Treasuries at the end of the month to match
changes in benchmark indexes. The 10-year note's yield has
declined on the last business day of June each of the past five
years.


Read more at Bloomberg Bonds News

London cocoa hits 4-year high after Ivory Coast attack

(Reuters) - London benchmark September cocoa futures hit a fresh four-year high of 1,118 pounds per tonne basis second month on speculative buying after news of a rocket attack on the Ivorian Prime Minister.

Ivory Coast is the world's top cocoa producing country.


Read more at Reuters Africa

U.S. soldiers kill 4 Afghan civilians: rights group

(Reuters) - The soldiers also arrested 15 civilians during the pre-dawn raid in Khogiani district which lies in the foothills of the provincial capital Jalalabad, Lal Gul, the head of Afghanistan's Human Rights Group said.




Those killed in the raid were an 85-year-old man, Mohammada Jan, two of his sons and a grandson, Gul told Reuters.


Read more at Reuters.com Business News

US STOCKS-Futures point to higher open on tame inflation

(Reuters) - NEW YORK, June 29 - U.S. stock index futures
pointed to a higher market open on Friday after a gauge of
inflation in May showed its lowest reading since March 2004.




In company news, shares of Research In Motion Ltd.
rose before the opening bell after the
BlackBerry maker posted a quarterly profit above estimates,
which was followed by several brokerage upgrades. For details,
see [ID:nN28384123]


Read more at Reuters.com Bonds News

Treasuries Advance as Inflation Gauge Used by Federal Reserve Slows in May

(Bloomberg) -- Treasury 10-year notes rose as a
government report showed a measure of inflation watched by the
Federal Reserve slowed in May as consumer spending increased
less than economists forecast.

Purchases by investors who habitually buy Treasuries on the
last business day of the quarter also pushed prices higher,
traders said. The 10-year note's yield has declined on the last
business day of June each of the past five years.


Read more at Bloomberg Bonds News

Gold, Silver Rally as Dollar Decline Boosts Demand for Precious Metals

(Bloomberg) -- Gold and silver rose in New York
after a decline in the value of the dollar against the euro
boosted the appeal of precious metals as alternative
investments.

Gold generally moves in the opposite direction of the
dollar, which today dropped the most against the euro in a week.
The dollar was also lower against a basket of six major
currencies. Before today, gold and the euro have gained 1.9
percent this year.


Read more at Bloomberg Commodities News

Personal Spending in U.S. Rises 0.5 Percent; Core Prices Gain 0.1 Percent

(Bloomberg) -- Consumer spending in the U.S. rose
less than forecast in May and the Federal Reserve's preferred
inflation gauge cooled, a sign moderating growth is restraining
price pressures.

The 0.5 percent rise in spending matched the gain in April,
the Commerce Department said today in Washington. Core prices,
which exclude food and fuel costs, rose at the slowest pace since
March 2004 in the year ended May.


Read more at Bloomberg Currencies News

Bond prices rise on tame inflation data

(Reuters) - ""Bonds are doing a little better. We have a benign core PCE deflator and another month of confirmation that consumer spending is slowing down significantly in the second quarter from its average pace of the first," said Josh Stiles, bond strategist with IDEAglobal in New York.




"That is good confirmation for the bond market right now. It will help the tone of the market at quarter end."


Read more at Reuters.com Hot Stocks News

European Stocks Fall, Led by Banks, Insurers; Segro Tumbles on Downgrade

(Bloomberg) -- European stocks fell on concern
government reports in the U.S. may show the world's largest
economy isn't expanding enough to fuel earnings growth.

Schroders Plc, London's biggest publicly traded money
manager, and Allianz SE, Europe's largest insurer, paced the
retreat. Segro Plc slid the most in four months after HSBC
Holdings Plc recommended selling shares of the U.K. property
company, saying the commercial real-estate boom is over.


Read more at Bloomberg Stocks News

A. Schulman posts higher quarterly profit

(Reuters) - Analysts, on average, had forecast earnings of 25 cents a
share, according to Reuters Estimates.




The Akron, Ohio-based company posted sales of $467 million,
a 9.3 percent increase from a year earlier.



Read more at Reuters.com Market News

US RATE FUTURES-May PCE data taken in stride

(Reuters) - The core personal consumption expenditures index rose by
0.1 percent in May, in line with Wall Street forecasts. The
year-on-year core PCE slowed to a 1.9 percent advance from 2.0
percent in April.




Read more at Reuters.com Bonds News

Canada's Dollar Advances to 30-Year High as Crude Oil Price Extends Gain

(Bloomberg) -- The Canadian dollar fell from a 30-
year high after a report showed the nation's economic growth was
flat in April.

Canada's currency traded at 94.38 U.S. cents at 8:32 a.m.
in Toronto, from 94.39 U.S. cents yesterday. One U.S. dollar
buys C$1.0596. The currency earlier touched C$1.0471, the
strongest since May 1977 as crude oil prices rose.


Read more at Bloomberg Currencies News

Japan Asks Brokerages for Views on 10-Year Auction After Call for Re-Issue

(Bloomberg) -- Japan's Ministry of Finance is
asking securities firms and banks their views on next week's 10-
year bond auction, including whether to issue a new security or
sell existing debt.

Some brokerages asked the ministry to re-issue the No. 286
10-year bond with a 1.8 percent coupon at the sale on July 3,
said Kazuo Katayama, director for market finance division of the
ministry's finance bureau. The brokers said there has been a
shortage of the debt in the repurchase market, in which debt is
lent out for an agreed time, according to Katayama.


Read more at Bloomberg Bonds News

Cell C bonds slip on balance sheet questions

(Reuters) - Bonds of South African mobile phone operator Cell C fell on Friday, dealers said, as some market participants raised questions about how the company might try to recapitalise its balance sheet.

Chief Executive Officer Jeffrey Hedberg on Thursday said he was pressing majority owner Oger Telecom to review the company's balance sheet to cut onerous debt repayments, with a buy back of some of the high-yield bonds a possibility.


Read more at Reuters Africa

Bond prices edge up ahead of inflation data

(Reuters) - "People yesterday were a bit concerned about the PCE deflator that is coming out this morning," said Doug Roberts, chief investment strategist at Channel Capital Research in Shrewsbury, New Jersey.




"Now they are realizing the Fed probably wouldn't have moderated their statement if they thought the PCE was going to come in somewhat ... massively different from what they anticipated. Although it might not come out on target, probably it will come in pretty close."


Read more at Reuters.com Hot Stocks News

Cocoa Jumps in London After Plane of Ivory Coast Prime Minister Attacked

(Bloomberg) -- Cocoa jumped in London after a plane
carrying the prime minister of Ivory Coast, the world's biggest
grower of the beans, was attacked.

The plane carrying Guillaume Soro was attacked with rockets
and small handguns shortly after landing at an airport in the
central town of Bouake today, said Lee Woodyear, a United Nations
spokesman. While three people were killed, Soro survived the
attack, Agence France-Presse reported.


Read more at Bloomberg Commodities News

UPDATE 1-Indonesia Telkom mulls acquisition, pays dividend

(Reuters) - State-run Telkom, the biggest company on the Jakarta Stock
Exchange with a market capitalisation of around $21 billion, did
not provide details on the target or the value of the potential
deal in its letter to the exchange on Friday.




"Telkom is reviewing and discussing the possibility of an
acquisition, in line with its strategic roadmap to achieve a
target of $30 billion market capitalisation by 2010," the
company said in the letter.


Read more at Reuters.com Mergers News

Futures fall with inflation data on tap

(Reuters) - In earnings news, Research In Motion Ltd. may give a lift to the Nasdaq after the maker of the Blackberry reported results that beat analysts' estimates.




Research in Motion stock jumped 8.1 percent to $179 in electronic trading.


Read more at Reuters.com Hot Stocks News

UPDATE 1-S.Africa's ANC nears decision on leadership spat

(Reuters) - ANC Secretary General Kgalema Motlanthe told a news
conference delegates were debating a number of non-binding
proposals on how to resolve a leadership crisis that arose after
Mbeki sacked his popular deputy president Jacob Zuma, once the
frontrunner to succeed him.




Mbeki, who has become an object of scorn for the country's
powerful trade unions and Communist party, has not ruled out
running for a third term as ANC chief although the constitution
prevents him from continuing to lead South Africa after 2009.


Read more at Reuters.com Bonds News