CBOE says won't pull plug on CBOT rights for now

(Reuters) - But those rights will stay intact for now, until the U.S.
Securities and Exchange Commission makes a final ruling on
CBOE's earlier filing on the topic, an exchange spokeswoman
said.




In that filing, CBOE set forth its interpretation that if
CME absorbs CBOT to create CME Group Inc., "there will no
longer be CBOT members who may qualify to become and remain
exerciser members of CBOE."


Read more at Reuters.com Mergers News

WRAPUP 2-US housing sector, factory orders sag in May

(Reuters) - WASHINGTON, July 3 - Pending sales of existing U.S.
homes hit the lowest level in more than five years in May and
factory orders dipped modestly, according to reports on Tuesday
that showed the economy struggling to keep moving forward.




The National Association of Realtors said its index of
pending home sales -- a forward-looking gauge -- slumped by 3.5
percent in May to 97.7, its lowest level since September 2001.


Read more at Reuters.com Economic News

CHRONOLOGY-Divestments by Danone since 1997

(Reuters) - Following is a chronology of the biggest divestments by
Danone since 1997, when it announced it will focus on diary
products, beverages and cereals:







Read more at Reuters.com Mergers News

US STOCKS-Indexes end up in shortened session; Apple up

(Reuters) - Based on the latest available data, the Dow Jones
industrial average rose 41.87 points, or 0.31 percent,
to end unofficially at 13,577.30. The Standard & Poor's 500
Index was up 5.44 points, or 0.36 percent, to finish
unofficially at 1,524.87. The Nasdaq Composite Index
was up 12.65 points, or 0.48 percent, to close unofficially at
2,644.95.




Read more at Reuters.com Bonds News

U.S. Stocks Advance on Factory Orders, Takeovers; Wendy's, Apple Climb

(Bloomberg) -- U.S. stocks gained for a second day
after factory orders fell less than forecast and $8.5 billion
of takeovers spurred speculation that mergers and acquisitions
will extend the rally.

Wendy's International Inc., the third-biggest hamburger
chain, advanced the most in two months after billionaire
investor Nelson Peltz said he may make a bid for the company.
Apple Inc. jumped to a record and Oracle Corp. reached a six-
year high in trading that ended at 1 p.m. before the
Independence Day holiday.


Read more at Bloomberg Stocks News

Argentina's Credit Rating Hurt by Arrears With Paris Club, Moody's Says

(Bloomberg) -- Argentina's refusal to settle its $6
billion debt with Paris Club creditors is hurting the country's
chances of getting credit ratings increases, said Mauro Leos, an
analyst at Moody's Investors Service.

Argentina hasn't made payments on its debt with the Paris
Club since 2001, when it also defaulted on $95 billion of bonds.
The government has refused to pay even after economic growth of
more than 8 percent in each of the past four years helped it post
budget surpluses, Leos said at a conference in Buenos Aires.


Read more at Bloomberg Emerging Markets News

UPDATE 1-United Capital says hedge funds to stay open

(Reuters) - NEW YORK, July 3 - United Capital Asset
Management said on Tuesday it will continue operating its
Horizon Strategy group hedge funds that invested in
subprime-mortgage bonds after temporarily halting payments to
investors.




"We wish to emphasize that UCAM and Horizon are not liquidating and intend to
continue in operation," it said in a statement.


Read more at Reuters.com Bonds News

TREASURIES-Bonds fall in holiday-thinned trade

(Reuters) - NEW YORK, July 3 - U.S. Treasuries fell in
holiday-thinned trade on Tuesday as firm equities and
surprisingly strong factory orders offset weak data on housing
and any lingering safe-haven bid on global security concerns.




Bonds briefly trimmed their losses after a report showed
pending sales of existing U.S. homes in May unexpectedly fell
to their lowest level in more than 5-1/2 years. For details,
see [ID:nN0385388].


Read more at Reuters.com Bonds News

Treasuries Fall Most in Three Weeks as Demand for Riskier Bonds Stabilizes

(Bloomberg) -- Treasury 10-year notes declined the
most in three weeks as a drop in a measure of the perceived risk
of owning U.S. corporate bonds reduced demand for the safety of
government debt.

The CDX North America Crossover Index, made up of the debt
of 35 companies, fell for the first time in five days after
rising to a 10-month high yesterday, according to Deutsche Bank
AG.


Read more at Bloomberg Bonds News

UPDATE 1-Alcan rebuffs Alcoa request for talks on bid

(Reuters) - Alcan's chief executive, Richard Evans, told Alcoa CEO
Alain Belda in a letter that Alcan had no reason for any
further discussion with Alcoa "at this time."




In an exchange of letters late last month included in a
filing by Alcoa with the U.S. Securities and Exchange
Commission, Belda had offered to meet Evans in Montreal to
discuss Alcoa's offer, which Alcan has rejected.


Read more at Reuters.com Mergers News

Hidary says Everlast violated merger pact

(Reuters) - In a letter filed with the U.S. Securities and Exchange Commission, Hidary said Everlast was "not entitled to terminate the merger agreement ... because the company had not received a superior proposal."




On June 28, Everlast terminated its merger pact with Hidary in favor of a deal with Brand Holdings. Both suitors raised their bids the next day, but Everlast stayed with its new partner, Brand Holdings.


Read more at Reuters.com Mergers News

Cocoa Futures Rise on Ivory Coast Tensions, Smaller Indonesian Supplies

(Bloomberg) -- Cocoa rose in New York on speculation
that renewed political tensions in Ivory Coast, the world's
largest producer, and dry weather in Indonesia may disrupt
global supplies.

Ivory Coast Prime Minister Guillaume Soro was unhurt when
his plane was attacked with rockets and small-arms fire after
landing at an airport in the central town of Bouake last week.
Indonesia, the third-largest grower, may produce 8.5 percent less
cocoa this year after drought in 2006 reduced the crop, the
Indonesian Cocoa Association said on June 29.


Read more at Bloomberg Commodities News

Dendreon and Marvell Technology Group: U.S. Equity Option Market Movers

(Bloomberg) -- The following is a list of companies
with unusual option trading in U.S. exchanges today. Stock
symbols are in parentheses after company names. Option trading
and stock prices are as of 12 p.m. in New York. U.S. markets
close at 1 p.m. for the Independence Day holiday.

Each call option gives investors the right to buy 100 shares
of a company at a certain price, called the strike price, by a
given date. A put conveys the right to sell 100 shares.


Read more at Bloomberg Stocks News

Wheat Futures Fall in Kansas City as Farmers Speed up Winter-Crop Harvest

(Bloomberg) -- Wheat fell in Kansas City as drier
weather allowed farmers to accelerate harvesting of the winter
crop in Kansas, the biggest producing state, and in some fields
east of the Mississippi River, boosting supplies.

About 40 percent of the U.S. winter crop was cut as of
July 1, compared with 22 percent a week earlier, the Department
of Agriculture said yesterday. About 59 percent of the winter
wheat in Kansas was harvested, up from 20 percent. Still, the
overall harvest is behind the five-year average of 54 percent
because of heavy rains in parts of the Great Plains.


Read more at Bloomberg Commodities News

Euro Little Changed on View Recent Gains Reflect Outlook for Interest Rate

(Bloomberg) -- The euro was little changed, after
earlier reaching an all-time high versus the yen, on speculation
recent gains already reflect expectations the European Central
Bank will raise interest rates this year.

The 13-nation currency also retreated from its two-month
high against the dollar as investors cut risks before the U.S.
Independence Day holiday tomorrow and the ECB's interest-rate
meeting. Economists surveyed by Bloomberg News forecast policy
makers will hold borrowing costs at 4 percent on July 5.


Read more at Bloomberg Currencies News

Nymex Gasoline Futures Fall on Forecasts of Increases in U.S. Inventories

(Bloomberg) -- Gasoline futures fell before an
Energy Department report that may show an increase in U.S.
inventories.

Supplies probably grew 500,000 barrels last week, according
the median of 13 estimates in a Bloomberg News survey of
analysts. Refineries operated at 90.2 percent of nationwide
capacity, up 0.8 percentage point from the previous week, the
survey predicted. The Energy Department will release the report
on July 5.


Read more at Bloomberg Energy News

Alcan rebuffs Alcoa request for talks on bid

(Reuters) - In an exchange of letters included in a filing by Alcoa with the U.S. Securities and Exchange Commission, Belda had offered to meet Evans in Montreal to discuss Alcoa's offer, which Alcan has rejected.




Read more at Reuters.com Mergers News

DaimlerChrysler U.S. sales down 2 percent

(Reuters) - Sales at Chrysler Group, which consists of Jeep, Dodge and Chrysler brands, fell 1 percent to 183,347 vehicles.




Sales at the Mercedes-Benz unit fell 6 percent to 19,589 vehicles.


Read more at Reuters.com Business News

Kroger says Toledo labor contract OK'd by union

(Reuters) - NEW YORK, July 3 - Kroger Co. , the largest U.S. grocery chain, on Tuesday said a new labor agreement was ratified by a workers' union in Toledo, Ohio.



The three-year contract covers more than 3,100 Kroger employees at 27 stores in the Toledo metropolitan area, the company said.


Read more at Reuters.com Bonds News

Rand steady vs dollar, no further gains see

(Reuters) - South Africa's rand largely held onto the previous day's gains against the greenback on Tuesday but is unlikely to strengthen further this week, with the central bank seen buying dollars off the market.

The rand was at 6.9720/dollar at 1520 GMT, just 0.24 percent off its New York close of 6.9550 on Monday, when it rose to six-week highs, mainly reflecting the dollar's fall against the euro, the currency of South Africa's main trading partner.


Read more at Reuters Africa

Treasuries Drop as Index Shows Demand for Riskier Bond Assets Stabilizes

(Bloomberg) -- Treasuries fell as a drop in a
measure of the perceived risk of owning U.S. corporate bonds
reduced demand for the safety of government debt.

The CDX North America Crossover Index, made up of the debt
of 35 companies, fell for the first time in five days after
rising to a 10-month high yesterday, according to Deutsche Bank
AG.


Read more at Bloomberg Bonds News

GE's WMC subprime unit says sells $3 bln in loans

(Reuters) - The loans sold included a mix of first and second liens, said GE Money spokesman Michael Ettlemyer.




The Burbank, California-based business was one of scores of lenders targeting the subprime market, or borrowers with weaker credit histories. Defaults in this segment of the market have surged this year, leading some borrowers to lose their homes and causing about 50 subprime lenders to close.


Read more at Reuters.com Bonds News

TREASURIES-Bond prices ease on higher stock market

(Reuters) - NEW YORK - Treasury debt prices eased on Tuesday after stronger-than-expected manufacturing data did little to change investor expectations for the economy or inflation.




Treasuries briefly trimmed their losses after weaker-than-forecast pending home sales data, but the move was fleeting, outweighed in part by gains in the stock market. Bond trading was razor-thin a day before the U.S. July 4 Independence Day holiday


Read more at Reuters.com Bonds News

WRAPUP 1-US housing sector, factory orders sag in May

(Reuters) - The National Association of Realtors said its index of
pending home sales -- a forward-looking gauge -- slumped
sharply by 3.5 percent in May to 97.7, its lowest level since
September 2001.




The steep drop came as a surprise to financial markets
since economists polled by Reuters had forecast the May index
would instead rise, by 0.2 percent.


Read more at Reuters.com Economic News

African Diamonds sees late 2009 Botswana mine start

(Reuters) - AIM-listed diamond explorer African Diamonds expects to start production at the AK6 project in Botswana in late 2009, the company said on Tuesday.

"AK6 is a done deal. It will happen," John Teeling, the company's executive chairman, told delegates at the Numis Metals and Mining Conference in London.


Read more at Reuters Africa

EBay Chief Meg Whitman Says Changes Are Needed to Placate Auction Sellers

(Bloomberg) -- EBay Inc., the world's largest online
auction company, will upgrade its Web site to placate sellers
and revitalize the company's slumping sales growth, Chief
Executive Officer Meg Whitman said.

``You'll see more changes in the next 12 months on our site
than you've probably seen in the last three or four years,''
Whitman said in an interview. ``EBay was so successful that we
did not keep up with the user experience that was required.''


Read more at Bloomberg Exclusive News

Airline shares gain after Continental revenue gain

(Reuters) - Continental shares gained 6.44 percent to $36.05 on the New York Stock Exchange.




"We view this unexpected strength as sufficient not only to potentially boost Continental consensus estimates but legacy equities as well," said JP Morgan airline analyst Jamie Baker.


Read more at Reuters.com Hot Stocks News

Rio Narcea recommends Lundin's sweetened bid

(Reuters) - The bid, initially made on April 20, was extended to July
16 from June 29. Under a support agreement between Lundin and
Rio Narcea, the offer cannot be extended beyond June 19.




Lundin said it has entered lock-up agreements with major
shareholders representing about 30.9 percent of Rio Narcea's
shares. It said shareholders with an additional 12.3 percent
stake have indicated their intent to tender their shares to the
amended offer.


Read more at Reuters.com Mergers News

Archeus hedge fund sues GlobeOp over fund's demise

(Reuters) - The suit could dampen investor enthusiasm for GlobeOp's
pending initial public offering. GlobeOp disclosed June 15 that
it plans to raise 52 million pounds in a listing
on the London Stock Exchange.




"GlobeOp acted with reckless indifference to the rights of
Archeus, the Animi Funds and their investors in a manner that
smacked of intentional wrongdoing," Archeus said in its
lawsuit.


Read more at Reuters.com Mergers News

Guaranty Trust to Sell $750 Million of Shares in London and Nigeria

(Bloomberg) -- Guaranty Trust Bank Plc, Nigeria's
fifth-largest lender by market value, plans to sell stock in
London to fund growth.

Lagos, Nigeria-based Guaranty will offer $750 million of
shares, three people with knowledge of the transaction said. The
lender intends to raise $500 million from international investors
by selling global depositary receipts and the rest from
Nigerians, said the people, who declined to be identified because
the details are private.


Read more at Bloomberg Emerging Markets News

Corrected: Danone in talks on $7.2bln biscuit sale to Kraft

(Reuters) - PARIS - French food group Danone is in exclusive talks to sell its biscuit and cereal unit for 5.3 billion euros in cash to Kraft Foods Inc , the world's biggest cookie maker, they said on Tuesday.




Kraft's bid for Danone's cookie unit, which includes the LU, Prince and Tuc brands, will give the U.S. food giant a stronger foothold in Europe and in emerging markets.


Read more at Reuters.com Bonds News

US STOCKS-Indexes rise on M&A; data eyed

(Reuters) - NEW YORK, July 3 - Wall Street started a
holiday-shortened session slightly higher on Tuesday, boosted
by the latest takeover news, ahead of data on the manufacturing
and housing sectors.




Kraft Foods Inc. is in exclusive talks to buy
Danone's biscuit and cereal unit for 5.3 billion
euros in cash, the companies said. For details,
see [ID:nL03276080]. Kraft's shares fell 1.3 percent to
$35.10.


Read more at Reuters.com Bonds News

UPDATE 1-United Capital says halts hedge fund refunds

(Reuters) - "We have temporarily suspended redemptions," said Michael
Gregory, spokesman for United Capital Markets in Key Biscayne,
Florida. The firm offered no further comment but said a
statement would be forthcoming later on Tuesday.




The funds hold most of the firm's assets under management,
which stood at about $619 million as of March. The company has
had an unusually high number of redemption requests, including
one from an investor who had put up about 25 percent of the
funds' money, and it did not want to be a forced seller of
securities, according to a report on Bloomberg News' Web site.



Read more at Reuters.com Bonds News

RPT-World stocks hit new record high

(Reuters) - LONDON, July 3 - World stocks hit a new all-time
high on Tuesday as equity investors put June's worries about
higher interest rates and greater borrowing costs behind them.




MSCI's main world stock index rose as high
as 406.08, eclipsing the previous high of 405.99 reached a month
ago on June 5.


Read more at Reuters.com Bonds News

UPDATE 1-U.S. May factory orders fall 0.5 percent

(Reuters) - Analysts polled by Reuters were expecting orders to slide
1.2 percent. April orders were revised higher to show a 0.5
percent gain from the 0.3 percent rise first reported.




The data contrasts with other reports pointing to strength
in U.S. manufacturing such as Monday's Institute for Supply
Management report, which said manufacturing growth accelerated
in June while price pressures eased.


Read more at Reuters.com Economic News

First Quantum Congo copper mine starts up

(Reuters) - First Quantum's Frontier copper mine project in the Democratic Republic of Congo (DRC) is starting commissioning as part of the Canadian company's growth plans, an official said on Tuesday.

"The Frontier project is starting commissioning as we speak," the company's President Clive Newall told delegates at a Numis Metals Mining Conference in London.


Read more at Reuters Africa

Euro Falls on View Recent Gains Already Reflect Outlook for Interest Rates

(Bloomberg) -- The euro declined from a record
against the yen on speculation recent gains already reflect
expectations the European Central Bank will raise interest rates
this year.

The European currency rose to the highest level in two
months yesterday versus the dollar before the ECB's monthly rate-
setting meeting this week. Economists surveyed by Bloomberg News
forecast policy makers will hold borrowing costs at 4 percent
July 5. The euro's rally this year is putting European
manufacturers at a disadvantage, French President Nicolas Sarkozy
said yesterday.


Read more at Bloomberg Currencies News

UK drugs body backs Tysabri for severe form of MS

(Reuters) - LONDON, July 3 - Irish drugmaker Elan Corp and U.S. partner Biogen Idec said on Tuesday that Britain's cost-effectiveness drugs panel had recommended their Tysabri drug to treat a severe form of multiple sclerosis.



The decision reverses a provisional ruling by Britain's National Institute for Health and Clinical Excellence and, assuming no successful appeal, will be ratified as guidance to the state-run National Health Service in August.


Read more at Reuters.com Government Filings News

May pending home sales slip 3.5 percent: NAR

(Reuters) - Wall Street analysts polled ahead of the report were expecting the May index to rise 0.2 percent.




Read more at Reuters.com Business News

Avanir, First Mutual, Ford, Movie Gallery, Wendy's: U.S. Equity Movers

(Bloomberg) -- The following is a list of companies
whose shares are having unusual price changes on U.S. exchanges.
Stock symbols are in parentheses after company names. Share
prices are as of 9:35 a.m. in New York.

American Capital Strategies Ltd. (ACAS US) rose $1.75, or
4.1 percent, to $44.75. The specialty finance company will
replace Dollar General Corp. (DG US) in the Standard & Poor's 500
Index, S&P said in a statement.


Read more at Bloomberg Stocks News

Canada's Government Bond Yields Fall as Bets on Rate Increases Subside

(Bloomberg) -- Canada's government bonds rose for a
third straight day as traders pared bets that the Bank of Canada
will lift interest rates multiple times this year.

Canada's economy unexpectedly stalled in April on lower
wholesale sales and oil and gas exploration, Statistics Canada
said on June 29. Following a national holiday yesterday, 10-year
yields dropped to the lowest in almost a month.


Read more at Bloomberg Bonds News

US STOCKS-Wall St set to open higher on M&A; data eyed

(Reuters) - NEW YORK, July 3 - Wall Street was set to start a
shortened session higher on Tuesday, boosted by the latest
merger and acquisition news and before data on the
manufacturing and housing sectors.




Kraft Foods Inc. is in exclusive talks to buy
Danone's biscuit and cereal unit for 5.3 billion
euros in cash, the companies said. For details,
see [ID:nL03276080]. Kraft's shares rose 1.8 percent in
Europe.


Read more at Reuters.com Bonds News

DealTalk: Coles private equity pullout highlights debt worries

(Reuters) - Wesfarmers Ltd. , which agreed to buy Coles for A$20.7 billion in cash and stock on Monday, was the lone bidder after the owner of hardware stores saw its private equity partners, Permira and Pacific Equity Partners , withdraw over the weekend on concerns about the rising cost of debt, according to a source familiar with the matter.




Rival private equity firm Texas Pacific also quit the Coles auction last week on debt market worries.


Read more at Reuters.com Bonds News

Crude Oil Futures Decline on Signs Refiners Will Meet U.S. Gasoline Demand

(Bloomberg) -- Crude oil fell from a 10-month high on
speculation that U.S. refineries will meet gasoline demand during
the summer driving season.

Gasoline inventories rose 500,000 barrels last week,
according to the median of 13 responses in a Bloomberg News
survey. Refiners probably operated at the highest rate since May,
the survey showed. Crude-oil prices often follow gasoline during
the driving season, which lasts from late May to early September.


Read more at Bloomberg Energy News

Copper gains as dollar buckles, lead hits high

(Reuters) - Copper prices jumped to fresh seven-week highs on Tuesday as the dollar tumbled and the market worried about supply disruption, while lead hit a record peak on concerns about Chinese output.

Copper for three months delivery on the London Metal Exchange traded at $7,735 in the official rings. up from $7,710 at the close on Monday. It touched $7,805 -- its highest since May 14.


Read more at Reuters Africa

Canadian Stocks May Rise on BCE, Aur Resources Takeovers; Telus May Gain

(Bloomberg) -- Canadian stocks may rise after BCE Inc.,
Canada's biggest phone company, was sold for C$34.2 billion ($32.1
billion) in the largest leveraged buyout.

Speculation that there will be more takeovers was stoked by
copper producer Aur Resources Inc.'s agreement to be bought by Teck
Cominco Ltd. for C$4.1 billion in cash and stock, to raise annual
copper output by 43 percent


Read more at Bloomberg Stocks News

Algeria's foreign workforce grows sharply

(Reuters) - The size of the foreign workforce in Algeria almost doubled to 32,000 in 2006 from 2005 amid a quickening of the OPEC-member country's post-war economic development, an official said in remarks published on Tuesday.

Employers in the north African country had 18,191 foreigners on their payrolls in 2005, itself a big increase from the 543 foreign workers in Algeria in 1999, labour ministry official Bachir Bouzid was quoted as saying by El Watan newspaper.


Read more at Reuters Africa

Danone biscuit break to speed up acquisition hunt

(Reuters) - Earlier on Tuesday, the world's biggest cookie maker Kraft
Foods agreed to pay 5.3 billion euros in
cash for the second-largest biscuit operation to boost the U.S.
group's European and Asian presence.




Analysts said the deal will wipe out Danone's 2.9 billion
euro debt and give it the money to chase acquisition targets
such as Dutch baby food group Numico , or raise its
stake in Russian food group Wimm-Bill-Dann , buy out
Chinese partner Wahaha or raise its holding in Japan's Yakult
.


Read more at Reuters.com Mergers News

Walgreen June same-store sales rise 5.1 percent

(Reuters) - CHICAGO, July 3 - Walgreen Co. , one of the largest U.S. drugstore chains, on Tuesday posted a 5.1 percent rise in June sales at stores open at least a year as sales of general merchandise grew at a faster clip than sales of prescription drugs.



Pharmacy sales were pressured by the introduction of cheaper generic drugs and a calendar shift, Walgreen said.


Read more at Reuters.com Market News

Late payments up on US home loans, down on credit cards

(Reuters) - In its quarterly study of U.S. consumer borrowing, the American Bankers Association said late payments rose in the first quarter from the fourth quarter in every category related to home ownership.




Delinquencies rose to 2.15 percent from 1.92 percent on home equity loans, to 2.94 percent from 2.82 percent on mobile home loans, and to 0.60 percent from 0.57 percent for home equity lines of credit.


Read more at Reuters.com Economic News