Canada Dollar Reaches 30-Year High on Outlook for Interest Rate Increase

(Bloomberg) -- The Canadian dollar reached a 30-
year high on speculation the Bank of Canada will raise its
benchmark interest rate as soon as next month.

The currency gained 0.3 percent in June after the central
bank said the prior month that it may lift rates ``in the near
term'' from 4.25 percent. A quarterly survey by the central bank
yesterday showed Canadian companies reported the most difficulty
meeting new orders in almost seven years, and most expect
inflation to exceed the central bank's 2 percent target.


Read more at Bloomberg Currencies News

BCE agrees C$42.75/shr offer from Teachers' group

(Reuters) - "The all-cash transaction is valued at C$51.7 billion, including C$16.9 billion of debt, preferred equity and minority interests," it said.




Read more at Reuters.com Business News

S&P 500 Stalls on Concern Subprime Losses May Worsen; Dow Industrials Rise

(Bloomberg) -- The Standard & Poor's 500 Index
was little changed amid heightened concern that losses from
loans to the riskiest borrowers will mount, while the Dow
Jones Industrial Average gained, capping its biggest
quarterly advance since 2003.

Bear Stearns Cos., Goldman Sachs Group Inc. and Lehman
Brothers Holdings Inc. led financial firms to the second-
steepest retreat among 10 industries in the S&P 500. Bear
Stearns this week said it would spend $1.6 billion to bail
out two hedge funds that made bad bets on bonds backed by
subprime mortgages.


Read more at Bloomberg Stocks News

Treasuries Gain for Second Week, Pushing 10-Year Yield to Three-Week Low

(Bloomberg) -- U.S. Treasuries gained for a
second straight week, pushing the benchmark 10-year note's
yield to a three-week low before the release next week of
the first major economic reports for June.

The rally was fueled by a decline in the Federal
Reserve's preferred measure of inflation to a three-year
low and flight from riskier assets such as corporate and
emerging market bonds. Ten-year yields declined more than
shorter-maturity yields as the Fed kept the key short-term
rate unchanged at 5.25 percent and said it remained
vigilant against inflation.


Read more at Bloomberg Bonds News