Hilton stock, option trading raises questions

(Reuters) - At a glance, the hallmarks of suspicious trading are there:
Hilton shares surged 6.4 percent on Tuesday, their biggest
daily advance in 18 months, with trading volume in a
holiday-shortened session more than three times its daily
average.




And it wasn't just the stock behaving oddly ahead of time.
Hilton options also became suddenly busy on Tuesday, and some
investors stand to bank gains of perhaps 14 times their outlay
by one estimate.


Read more at Reuters.com Bonds News

Coffee Falls in New York as Threat of Crop-Damaging Frost in Brazil Fades

(Bloomberg) -- Coffee fell in New York as forecasts
for warm weather reduced concerns that a frost would damage the
crop in Brazil, the world's largest producer.

Temperatures in Brazil's coffee-growing areas are expected
to be near to above normal, with lows of about 50 degrees
Fahrenheit (10 degrees Celsius), according to Meteorlogix LLC in
Woburn, Massachusetts. A ridge of high pressure will promote warm
and dry weather during the next week, the forecaster said.


Read more at Bloomberg Commodities News

FACTBOX-Corporate impact of Boeing's 787 Dreamliner

(Reuters) - -- Boeing has orders for 642 Dreamliners from 46 different
customers, worth about $100 billion.




-- The first order, for 50 787s, was placed by Japan's All
Nippon Airways in July 2004.


Read more at Reuters.com Mergers News

Mexican Peso Falls Most in Two Weeks on Reduced Risk Demand; Bonds Decline

(Bloomberg) -- Mexico's peso fell the most in two
weeks as rising interest rates in developed countries trimmed
demand for riskier assets.

``There's an increase in risk aversion,'' said Francisco
Diez, director of emerging-markets trading in Toronto at RBC
Capital Markets. ``This is affecting all emerging-market
currencies, including the peso.''


Read more at Bloomberg Currencies News

CFTC Seeks Contempt Order Against Lake Shore Asset Management Over Records

(Bloomberg) -- The Commodity Futures Trading
Commission is asking a U.S. court to hold the Chicago-based hedge
fund, Lake Shore Asset Management Ltd., in contempt of court for
not providing documents.

The commission filed a complaint last month against Lake
Shore, run by a former chairman of the Chicago Mercantile
Exchange, alleging that management overstated its assets, gave
inconsistent statements to regulators, and refused to make
documents available. A federal court froze $228 million of
investor money at the fund based on the complaint.


Read more at Bloomberg Energy News

UPDATE 1-Statoil, Hydro shareholders approve oil merger

(Reuters) - OSLO, July 5 - Shareholders in Norway's Statoil
and Norsk Hydro have approved Statoil's
planned $36 billion acquisition of Hydro's oil and gas business
to create a Norwegian giant capable of competing globally.




Extraordinary general meetings of both companies on Thursday
endorsed the plan for the biggest merger in Norwegian corporate
history, which was first announced in mid-December.


Read more at Reuters.com Mergers News

Hotel Companies' Bond Risk Rises on Speculation Others Could Follow Hilton

(Bloomberg) -- The perceived risk of owning hotel
company bonds rose as a proposed $20 billion leveraged buyout of
Hilton Hotels Corp. stoked speculation that other chains could be
next, according to credit-default swap traders.

Credit-default swaps based on $10 million of Starwood Hotels
and Resorts Worldwide Inc. bonds jumped $12,800 to $152,300, and
earlier touched $157,500, more than a two-year high, according to
CMA Datavision in London. Contracts based on the bonds of
Bethesda, Maryland-based Marriott International Inc., the world's
biggest hotel operator, rose $5,000 to $45,500 and earlier rose
to $47,500, the highest since October, CMA prices show.


Read more at Bloomberg Bonds News

Treasuries Drop Most in Three Weeks on Hiring Gains, Growth in Services

(Bloomberg) -- Treasuries declined the most in
three weeks after private reports showed the U.S. added more
jobs last month than economists forecast and services industries
unexpectedly accelerated.

Demand for U.S. government debt fell as the risk of holding
European corporate bonds dropped and concern over terrorist
incidents in the U.K. eased. A Labor Department report tomorrow
may increase speculation a stronger job market is increasing the
risk inflation will accelerate.


Read more at Bloomberg Bonds News

RBS-led consortium gets ABN offer extension to July 23

(Reuters) - RBS and its partners -- Spain's Santander and Belgian-Dutch Fortis -- have offered to buy Dutch rival ABN for 71.2 billion euros.



The consortium said in a statement it expects to make its formal offer for ABN by mid-July.


Read more at Reuters.com Mergers News

Canadian housing prices continue to climb - report

(Reuters) - The number of transactions is seen rising by 8 percent to
522,306 units.




"The most profound story in Canadian real estate today is
the extraordinary interest that people across our country
continue to have in buying and selling homes," Phil Soper,
president and chief executive of Royal LePage, said in a
release.


Read more at Reuters.com Economic News

US STOCKS-Rising Treasury yields drag on shares

(Reuters) - NEW YORK, July 5 - U.S. stocks fell on Thursday,
dragged down by rising bond yields that countered early
optimism about the $20 billion buyout of Hilton Hotels Corp.
.




Stronger-than-expected job market news drove up Treasury
yields. Rising yields can lead to higher borrowing costs, which
can cut into corporate profits.


Read more at Reuters.com Bonds News

TREASURIES-Bonds fall on stronger services, ADP jobs data

(Reuters) - NEW YORK, July 5 - U.S. Treasury debt prices fell
on Thursday after stronger-than-expected data on jobs and the
services sector suggested to investors the Federal Reserve will
not move to cut official interest rates any time soon.




Bonds got off to a rocky start, following euro zone debt
down before the European Central Bank left rates on hold at 4
percent, as expected, but also signaled a September increase is
likely. In Britain, the Bank of England raised rates by 25
basis points to a six-year high of 5.75 percent.


Read more at Reuters.com Bonds News

Moscow court delays $22.5 bln Bank of New York lawsuit

(Reuters) - A new hearing is set for July 10, Smal said.




In May, Russia accused Bank of New York of helping
illegally transfer $7 billion through its accounts in the late
1990s. A former bank executive and her husband pleaded guilty
in 2000 to being part of a conspiracy to transfer the funds.


Read more at Reuters.com Mergers News

CBOT says CBOE trying to quash trading rights

(Reuters) - CBOE, the largest U.S. options mart, has been attempting to
end the historic right held by some Board of Trade members to
also trade options at CBOE, known as the exercise right.




The options mart contends that if CME absorbs CBOT to
create CME Group Inc., there will no longer be CBOT members who
qualify for CBOE trading rights.


Read more at Reuters.com Mergers News

Italian Stocks Fall on Rate Concerns, Paced by Intesa Sanpaolo Shares

(Bloomberg) -- Italian stocks fell for the first time
in six days, led by Intesa Sanpaolo SpA, Italy's second-biggest
bank, on concerns interest rates will keep rising.

Alitalia SpA declined after Il Sole/24 Ore reported that
some of the banks funding Air One's bid for the national carrier
may drop out of the group.


Read more at Bloomberg Stocks News

US STOCKS-Wall Street slips as yields overshadow M&A

(Reuters) - NEW YORK, July 5 - U.S. stocks slipped on
Thursday as worries about rising bond yields overshadowed
strong economic data and news of a $20 billion buyout of Hilton
Hotels Corp.




Rising yields can lead to higher borrowing costs, which can
cut into corporate profits. The yield on the benchmark 10-year
Treasury note rose to 5.11 percent from 5.05
percent on Tuesday after stronger-than-expected data on the
jobs market.


Read more at Reuters.com Bonds News

Tecumseh shares leap on debt outlook

(Reuters) - Baird upgraded the stock to "outperform" from "neutral" and raised the price target to $20, saying the partial sale of Fasco motors will significantly reduce Tecumseh's debt.




The brokerage added that the company's cash position should be bolstered further upon the likely sale of the engines business and the liquidation of one pension plan.


Read more at Reuters.com Hot Stocks News

S.African stock market up on resource strength

(Reuters) - South Africa's stock market ended in the positive on Thursday, driven by strong performance of resources stocks such as BHP Billiton despite continued nervousness around interest rates.

"Generally the market is uncertain, interest rates is worrying investors particularly with the Bank of England raising interest rates," Tubby Goodwin, a trader from Investec Securities said.


Read more at Reuters Africa

CORRECTED - CORRECTED-Hearst Communications reports 22.4 pct stake in Local.

(Reuters) - The company said it owned about 2.7 million shares, which
included ownership of about 1.5 million convertible notes,
Series A warrant to buy 597,105 shares and Series B warrant to
buy another 597,105 shares.




The filing reflects new warrants which were revised after
cancellation on March 29 to include, but not limited to,
changes in exercise period.


Read more at Reuters.com Government Filings News

Oil Falls From a 10-Month High on Expectations of Growing Gasoline Supply

(Bloomberg) -- Crude oil was little changed after
surging to a 10-month high in New York amid expectations that
U.S. gasoline inventories will increase during July.

Gasoline stockpiles rose 1.85 million barrels to 204.4
million last week, according to an Energy Department report. U.S.
refineries operated at 90 percent of capacity, up 0.6 percentage
point from the prior week. Gasoline output rose 0.6 percent to a
record 9.4 million barrels a day. Implied demand for the fuel was
little changed at 9.56 million barrels a day.


Read more at Bloomberg Energy News

Pound Holds Above $2 After Bank of England Increases Interest Rates

(Bloomberg) -- The pound held above the $2 mark after
the Bank of England raised interest rates and signaled that
further increases may be needed to curb inflation.

Policy makers lifted borrowing costs a quarter-point for the
fifth time in 12 months, to a six-year high of 5.75 percent. The
BOE said inflation risks in the medium term ``lie to the
upside.'' Expectations for further rate increases this year rose
to a record high after today's decision, futures trading showed.


Read more at Bloomberg Currencies News

American Airlines to book gain from ARINC sale

(Reuters) - The sale of its stake in ARINC, a provider of transportation communications and systems engineering, is expected to close by Oct. 31.



) Keywords: AMR ARINC/


Read more at Reuters.com Mergers News

UPDATE 1-Champps Entertainment to be bought for $74.8 mln

(Reuters) - The $5.60 a share offer is 21 percent above Champps'
closing share price on Tuesday.




Shares of the company rose almost 17 percent to $5.40 in
morning trade on the Nasdaq.


Read more at Reuters.com Mergers News

Dubai stake reflects EADS' positive outlook-Germany

(Reuters) - "EADS will remain a European company with a special
German-French responsibility," he added.




Read more at Reuters.com Mergers News

Use Swap Options to Hedge Risk of Morgtgage Bond Loss, Credit Suisse Says

(Bloomberg) -- Investors should use options on
interest rate swaps to protect against the risk that losses in
subprime mortgages dim demand for risky assets and increase the
yield premium on mortgage debt, according to Credit Suisse.

Mortgage-backed bonds guaranteed by Fannie Mae, Freddie Mac
and Ginnie Mae underperformed Treasuries last month by the most
since July 2003 as investors sought the safety of government
debt. The near collapse last month of two hedge funds run by
Bear Stearns Cos. that invest in subprime mortgage bonds and so-
called collateralized debt obligations has fed concern that
risky assets may falter.


Read more at Bloomberg Bonds News

H&R Block falls as mortgage unit loses credit line

(Reuters) - In a late Tuesday filing with the U.S. Securities and Exchange Commission, H&R Block said Lehman Brothers Holdings Inc. did not renew a "warehouse" facility with the subprime unit, Option One Mortgage Corp., after it expired June 28.




The facility provided at least $1 billion of borrowing capacity, according to regulatory filings. Its non-renewal left Option One with $8 billion of committed borrowing capacity and $2 billion of uncommitted capacity, H&R Block said.


Read more at Reuters.com Business News

Canada Stocks Fall as Rising Interest Rates Hurt Manulife Financial, Banks

(Bloomberg) -- Canadian stocks fell, led by Manulife
Financial Corp. and banking shares, as the prospect of rising
interest rates reduced the allure of equity dividends.

The Canadian two-year bond yield rose after building permits
in May climbed to a record, prompting traders to raise bets the
Bank of Canada will increase interest rates. The European Central
Bank said inflation remains a risk and the Bank of England
increased its benchmark lending cost.


Read more at Bloomberg Stocks News

Rand weakens versus resurgent dollar

(Reuters) - South Africa's rand eased against the dollar on Thursday, relinquishing some of its gains earlier in the week, as the greenback rose on data showing greater than expected activity in the U.S. services sector.

The rand was at 7.0135 versus the dollar at 1455 GMT, down 0.62 percent from its previous close of 6.9700.


Read more at Reuters Africa

Bonds fall on lower euro debt, firm U.S. services data

(Reuters) - Euro zone debt fell on Thursday before an interest rate decision by the European Central Bank which left rates on hold at 4 percent, as expected. In Britain, the Bank of England raised rates by 25 basis points to a six-year high of 5.75 percent, and most analysts expect another rate increase in 2007.




U.S. Treasuries extended their losses after the Institute for Supply Management's services index for June came in above forecasts, suggesting to investors that the economy may be growing at a faster pace than originally expected.


Read more at Reuters.com Hot Stocks News

European Government Bonds Drop as Trichet Says ECB Rates `Accommodative'

(Bloomberg) -- European bonds fell for a third day
after European Central Bank President Jean-Claude Trichet
signaled the ECB will raise interest rates further this year.

Yields on the 10-year bund rose to the highest since June 25
as Trichet said inflation needs ``careful monitoring'' after the
central bank kept borrowing costs at 4 percent today. Investors
increased bets policy makers will lift rates as much as half a
percentage point by year-end, futures trading shows.


Read more at Bloomberg Bonds News

UPDATE 1-US private sector adds 150,000 jobs in June-report

(Reuters) - Over the three months ending in June, estimated job growth
in the report has averaged about 103,000, said ADP Employer
Services, whose employment report was jointly developed with
Macroeconomic Advisers LLC.




The consensus estimate of 23 economists surveyed by Reuters
was for the ADP report to show 100,000 new private sector jobs
in June.


Read more at Reuters.com Economic News

UPDATE 1-U.S. jobless claims rose 2,000 last week

(Reuters) - WASHINGTON, July 5 - The number of initial claims
for U.S. jobless aid filed last week rose 2,000, while a more
reliable barometer of labor trends climbed to its highest level
in two months, government data showed on Thursday.




First-time applications for state unemployment insurance
benefits rose to 318,000 in the week ended June 30 from an
upwardly revised 316,000 the prior week, the Labor Department
said.


Read more at Reuters.com Economic News

UPDATE 2-Canada May building permits soar to record high

(Reuters) - OTTAWA, July 5 - Canada's construction sector
appeared headed for a busy summer as the value of building
permits issued in May soared to a record high, largely due to
plans for office buildings in Western Canada.




Building permits jumped 21.4 percent in value in May from
April to C$6.8 billion , Statistics Canada said
on Thursday. That was more than triple the 5.6 percent gain
forecast by analysts in a Reuters poll.


Read more at Reuters.com Economic News

Paladin OK to market contraceptive in Canada: Barr

(Reuters) -



) Keywords: PALADIN SEASONALE/CANADANOD


Read more at Reuters.com Government Filings News

Colombia's Peso Weakens, Bonds Decline on U.S. Rates, June Employment Data

(Bloomberg) -- Colombia's peso weakened the most in
a week and local government bonds declined amid expectations
that pressure on U.S. interest rates from an expanding economy
will diminish demand for riskier, emerging-market assets.

Yields on U.S. Treasuries rose today after a report showed
U.S. companies added more jobs than expected in June.


Read more at Bloomberg Currencies News

Euro Falls From Record Against Yen as ECB Leaves Interest Rate Unchanged

(Bloomberg) -- The euro fell from an all-time high
against the yen after the European Central Bank kept borrowing
costs unchanged.

The common currency also fell against the dollar after
policy makers left the benchmark interest rate at a six-year high
of 4 percent, as forecast. ``Our monetary policy is still on the
accommodative side,'' ECB President Jean-Claude Trichet said at a
press conference after the decision.


Read more at Bloomberg Currencies News

REFILE-TREASURIES-Bonds fall with weaker European debt

(Reuters) - NEW YORK, July 5 - U.S. Treasury debt prices fell
early on Thursday, following the lead of weaker euro zone debt
ahead of data on U.S. employment and the service sector.




Euro zone debt fell on Thursday before an interest rate
decision by the European Central Bank, which, as expected, kept
rates on hold at 4 percent.


Read more at Reuters.com Bonds News

US STOCKS-Dow, S&P futures turn negative as yields rise

(Reuters) - S&P 500 futures fell 0.40 point, even with fair
value, a mathematical formula that evaluates pricing by taking
into account interest rates, dividends and time to expiration
on the contract.




Dow Jones industrial average futures were down 20
points, and Nasdaq 100 futures were up 3.50 points.


Read more at Reuters.com Bonds News

US STOCKS-Indexes edge lower at open; oil, rates rise

(Reuters) - The Dow Jones industrial average was down 40.57
points, or 0.30 percent, at 13,536.73. The Standard & Poor's
500 Index was down 2.44 points, or 0.16 percent, at
1,522.43. The Nasdaq Composite Index was down 1.03
points, or 0.04 percent, at 2,643.92.




Read more at Reuters.com Bonds News

CVC to acquire Samsonite for $1.7 billion

(Reuters) - NEW YORK, July 5 - Luggage maker Samsonite Corp. said on Thursday it agreed to be bought by private equity firm CVC Capital Partners [CVC.UL] in an all-cash deal of about $1.7 billion, including assumption of debt.



The deal, which was approved by Samsonite's board, values Samsonite at $1.49 a share, the company said in a statement.


Read more at Reuters.com Bonds News

U.S. Exporters Sell 100,000 Metric Tons of Winter Wheat to Iraq, USDA Says

(Bloomberg) -- U.S. exporters reported sales of
100,000 metric tons of hard-red winter wheat to Iraq, the
Department of Agriculture said.

Delivery of the wheat is scheduled in the 2007-2008
marketing year, which began June 1, the department said today
in a statement.


Read more at Bloomberg Commodities News

Cocoa Rises to Four-Year High on Political, Labor Turmoil in West Africa

(Bloomberg) -- Cocoa in New York rose to a four-
year high on speculation political tension in Ivory Coast, the
biggest producer, and labor disputes in Nigeria will disrupt
supplies of the beans used to make chocolate.

Three people were killed in a rocket attack on the plane
of Ivory Coast Prime Minister Guillaume Soro at an airport in
the central town of Bouake last week. Soro was unhurt. In
Nigeria, the fourth-largest producer, exports were disrupted by
a four-day strike in June that closed ports.


Read more at Bloomberg Commodities News

Jobs market shows strength, jobless claims up

(Reuters) - Another report, by a global online careers and recruiting firm, showed a gauge of U.S. online recruiting dipped in June, suggesting that a seasonal summer hiring slowdown may have come earlier than normal.




First-time applications for state unemployment insurance benefits rose to 318,000 in the week ended June 30 from an upwardly revised 316,000 the prior week, the Labor Department said.


Read more at Reuters.com Business News

GM, H&R Block, Hilton, Marriott, Samsonite, Starwood: 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 10:10 a.m. in New York.

General Motors Corp. (GM US) fell $1.69, or 4.5 percent, to
$36.29. The largest U.S. automaker was cut to ``peer perform''
from ``outperform'' by Bear Stearns & Co. after GM said June U.S.
sales declined. Separately, Deutsche Bank AG cut its full-year
earnings estimate for GM to $2 a share, a 30 percent reduction,
after ``surprisingly weak'' U.S. sales in June.


Read more at Bloomberg Stocks News

Oil Rises Above $72 to 10-Month High on Nigerian Unrest, Refinery Closings

(Bloomberg) -- Crude oil rose above $72 a barrel in
New York, a 10-month high, on concern that unrest in Nigeria may
curb oil shipments and unexpected shutdowns at U.S. refineries
will cut fuel production.

Nigerian gunmen kidnapped a three-year-old daughter of a
British expatriate on her way to school in the southern oil city
of Port Harcourt, a police spokesman said. Five contractors were
seized yesterday from a rig operated by Royal Dutch Shell Plc's
Nigerian venture. A refinery in Kansas and a gasoline-producing
unit at a Texas facility were shut this week.


Read more at Bloomberg Energy News

Angola airline prepares for final Europe flight

(Reuters) - Angola's national carrier, TAAG-Angola Airlines, is set to make its final flight from Europe on Thursday amid a deepening row with the European Union over aviation rights, a senior company official said.

TAAG was put on the European Union's blacklist due to safety concerns but its UK country manager, Joao Rodrigues, told Reuters the firm hoped the EU would reverse its decision.


Read more at Reuters Africa

Top executives seek to bolster UN business pact

(Reuters) - Top executives from some of the world's biggest companies sought on Thursday to bolster a U.N. corporate responsibility pact, saying their firms would benefit from stricter rules on corruption and the environment.

U.N. Secretary-General Ban Ki-moon backed calls from the heads of Coca-Cola, Anglo American and Petrobras for more checks and balances to ensure members of the seven-year-old Global Compact uphold its standards.


Read more at Reuters Africa

Generic drugs weigh on June sales at CVS, Rite Aid

(Reuters) - At each chain, the rise in same-store sales of general
merchandise such as candy and cosmetics, outpaced same-store
pharmacy sales. Such growth was also seen at Walgreen Co.
, which reported its June sales results on Tuesday.




Generic drugs sell at lower prices than their branded
counterparts but are generally more profitable for drugstores.


Read more at Reuters.com Market News

Hilton would pay $560 mln Blackstone break-up fee

(Reuters) - Break-up fees are customary in takeover deals and are put in place to dissuade the sides from walking away.




In the filing, Hilton said Blackstone received financing commitments from a group of banks including Bear Stearns , Bank of America , Goldman Sachs , and Morgan Stanley . The filing doesn't detail the amount of debt that will be used to finance the deal.


Read more at Reuters.com Mergers News

Siemens CEO says will consider binding VDO offers

(Reuters) - "If we receive binding offers, naturally we will consider them in the interests of our shareholders," Loescher said.



Loescher said Siemens continued to plan for a stock-market listing of up to half of VDO, the company's preferred option. VDO is valued at up to about 10 billion euros .


Read more at Reuters.com Mergers News