Investors buy protective puts on Lehman bond fund

(Reuters) - Investors often turn to equity puts, giving them the right
to sell a stock at a preset price within a specified time
period, to guard their holdings against downside risk.




The iShares Lehman 20+ Year Treasury Index
, which tracks bonds with longer maturities in the
Treasury market, rose 1.59 percent, or $1.33, to close at
$85.04 on the New York Stock Exchange. The fund is also traded
on the American Stock Exchange.


Read more at Reuters.com Bonds News

Argentina stocks close at record high, bonds slip

(Reuters) - The MerVal index of 21 leading inched up 0.19
percent to end at 2,253.30 points, after reaching an intraday
high of 2,267.17 points.




"The recent snowfall in Buenos Aires touched off more
investor speculation that tariffs could be changed
to avoid any serious problem in energy supplies," said Claudio
Szlaien, an analyst with Marlon Recursos Financieros.


Read more at Reuters.com Bonds News

UPDATE 1-Moody's takes various actions on second lien RMBS

(Reuters) - Moody's cut the ratings of 52 securities totaling $393
million while keeping 27 of those securities under review for
further downgrade. It also placed an additional 23 securities,
approximately $148 million, on review for possible downgrade.




The rating agency said most of the securities affected by
the negative actions were originated in 2005's second half and
held prior ratings of "Baa" and lower. Loans backing those
securities were originated in an environment of increasingly
aggressive underwriting, the rating agency said.


Read more at Reuters.com Bonds News

Yen Gains for Second Day as Drop in U.S. Stocks Prompts Carry Trade Unwind

(Bloomberg) -- The yen gained for a second day
against the dollar after a fall in U.S. stocks prompted
speculation investors will unwind so-called carry trades.

The yen was at 121.38 per dollar at 6:59 a.m. in Tokyo from
121.74 late in New York yesterday. Japan's currency traded at
167.09 per euro from 167.38.


Read more at Bloomberg Currencies News

UPDATE 1-Ryland warns of Q2 net loss on weak housing market

(Reuters) - LOS ANGELES, July 10 - The Ryland Group Inc. warned on Tuesday that it expects to post a second- quarter net loss of $1.25 to $1.35 per share due to continued deterioration in the housing market.



The home builder expects to book additional pre-tax charges of $145 million to $155 million related to inventory impairments and write-offs related to assets in Arizona, California, Florida and Nevada.


Read more at Reuters.com Market News

US STOCKS-Housing weakness woes drive stock indexes down

(Reuters) - NEW YORK, July 10 - U.S. stocks slid on Tuesday
as the subprime mortgage crisis escalated, undermining banking
shares, while Home Depot Inc. and other housing-related
companies lowered their outlooks.




Standard & Poor's roiled financial markets when it said it
may cut ratings on $12 billion of subprime-related debt on
forecasts of more delinquent and defaulted U.S. home loans.


Read more at Reuters.com Bonds News

Ryland warns of Q2 net loss on weak housing market

(Reuters) - LOS ANGELES, July 10 - The Ryland Group Inc. warned on Tuesday that it expects to post a second- quarter net loss of $1.25 to $1.35 per share due to continued deterioration in the housing market.



The home builder expects to book additional pre-tax charges of $145 million to $155 million related to inventory impairments and write-offs related to assets in Arizona, California, Florida and Nevada.


Read more at Reuters.com Bonds News

AXA Financial reports 11.2 percent stake in Macy's

(Reuters) - It also does not have to reveal the intentions behind the
transactions.




Trading in Macy's securities have been active recently,
fueled by speculation the retailer is ripe for a takeover.


Read more at Reuters.com Government Filings News

Stocks in U.S. Decline; Shares of D.R. Horton, Sears Retreat on Earnings

(Bloomberg) -- Builders, banks and retailers sent
the U.S. stock market tumbling for the first time in six days on
increasing evidence the housing slump is depressing earnings.

Home construction shares fell to the lowest in almost four
years after D.R. Horton Inc. said a decrease in orders will lead
to a third-quarter loss. Lehman Brothers Holdings Inc. and Bear
Stearns Cos. dropped after Standard & Poor's said mortgage
defaults may grow. Sears Holdings Corp., the biggest U.S.
department-store company, slid the most since 2003 on its
forecast profits will shrink.


Read more at Bloomberg Stocks News

Yen May Extend Gain Against Dollar on Prices, Interest-Rate Speculation

(Bloomberg) -- The yen may gain versus the dollar
for a second day before a report that is forecast to show June
wholesale prices in Japan rose the most in six months.

Japan's yen may extend its rebound versus the euro before
the nation's central bank issues its interest-rate announcement
tomorrow. The Bank of Japan might signal an August increase from
0.5 percent, the lowest rate among major economies. The yield
advantage of the 10-year U.S. Treasury note over a comparable-
maturity Japanese security fell the most in a month yesterday.


Read more at Bloomberg Currencies News

Chevron says production rose slightly in April, May

(Reuters) - Chevron has said it expects 2007 production to average
about 2.6 million boepd, down about 70,000 boepd from last
year.




Read more at Reuters.com Market News

Senators' Greenhouse Gas Measure Would Cut Emissions 20 Percent by 2030

(Bloomberg) -- Power producers, refiners and
steelmakers in the U.S. would be required to cut greenhouse gas
emissions 20 percent by 2030 under a Senate bill that will be
unveiled tomorrow.

Democratic Senator Jeff Bingaman, chairman of the energy
committee, and Republican Senator Arlen Specter would force
polluters to obtain an allowance for each ton of carbon they pump
into the air, according to a draft of the bill obtained by
Bloomberg News. Industries initially would be given about half of
the credits and would have to buy the rest or reduce their
emissions. The so-called cap-and-trade system would create a
market for the trading of greenhouse gas permits.


Read more at Bloomberg Energy News

US STOCKS-Housing weakness worries push indexes down

(Reuters) - NEW YORK, July 10 - U.S. stocks slid on Tuesday
as the subprime mortgage crisis escalated, undermining banking
shares while Home Depot Inc. and other housing-related
companies lowered their outlooks.




Standard & Poor's roiled financial markets when it said it
may cut ratings on $12 billion of subprime-related debt on
forecasts of more delinquent and defaulted U.S. home loans.


Read more at Reuters.com Bonds News

UPDATE 1-China's E-House files for $150 mln U.S. IPO

(Reuters) - Credit Suisse and Merrill Lynch & Co. are underwriting the
IPO, according to a preliminary filing with the U.S. Securities
and Exchange Commission.




The company intends to list its ADSs on the New York Stock
Exchange under the symbol "EJ" .


Read more at Reuters.com Government Filings News

DepoMed, Lehman, Live Nation, Level 3, NovaStar: U.S. Equity Movers Final

(Bloomberg) -- The following is a list of companies
whose shares had unusual price changes in U.S. exchanges today.
Stock symbols are in parentheses after company names. Share
prices are as of 4 p.m. New York time.

Shares of some U.S. securities firms and home-loan companies
declined after Standard and Poor's said it may cut ratings on $12
billion of bonds backed by subprime mortgages.


Read more at Bloomberg Stocks News

Coffee Rises Most in Five Weeks After Brazil Reduces Production Forecast

(Bloomberg) -- Coffee rose the most in five weeks
in New York after Brazil, the world's largest producer, cut its
forecast for this year's crop.

Farmers will harvest 2.2 million metric tons of coffee in
2007, less than the 2.25 million tons estimated last month, the
Brazilian Institute of Geography and Statistics said on its Web
site, without providing a reason for the reduction. Brazil's
harvest runs through October.


Read more at Bloomberg Commodities News

UPDATE 1-Part of NYC's Times Square shut down in bomb scare

(Reuters) - Several blocks of Seventh Avenue, including along the front
of the Reuters building, were closed to traffic as police
investigated the suspicious item.




A Reuters witness said the suspicious item was a red bag
and the bomb squad had arrived to inspect it.


Read more at Reuters.com Bonds News

E-House (China) Holdings files for $150 mln IPO

(Reuters) - The company intends to list its ADSs on the New York Stock
Exchange under the symbol "EJ" .




Read more at Reuters.com Government Filings News

Treasuries Advance Most Since February on Concern Over Subprime Mortgages

(Bloomberg) -- Treasuries advanced the most since
February after Standard & Poor's said it may cut credit ratings
on $12 billion of bonds backed by subprime mortgages, sending
investors to the safety of U.S. government debt.

Credit-default swaps, contracts used to speculate on a
company's ability to repay debt, rose to the highest premium in
more than a year in the U.S. and Europe. Stocks dropped on
concern the housing slump will hurt corporate earnings and slow
economic growth.


Read more at Bloomberg Bonds News

Pilot frustration mounts over US Airways merger

(Reuters) - The amalgamation of about 1,800 former America West pilots
and about 2,700 former US Airways pilots has barely progressed
in the nearly two years since those two airlines merged to form
the current company. And experts say the process is stalled on
two fronts.




It is unclear whether this is of any consequence to the
airline. But for the pilots, frustration is mounting as they
view their careers in limbo.


Read more at Reuters.com Mergers News

Chunghwa, Citic Pacific, Infosys, LG.Philips: Asia Ex-Japan Stock Preview

(Bloomberg) -- The following stocks may rise or fall
in Asian markets, excluding Japan. This preview includes news that
broke after markets closed. Prices are from the local market's last
close. Stock symbols are in parentheses after company names.

Chunghwa Telecom Co. (2412 TT): Taiwan's largest phone
operator's profit in the first half rose 11 percent to NT$24.6
billion ($751 million), the company said in an e-mailed statement.
Chunghwa Telecom slipped 10 cents, or 0.2 percent, to NT$63.40.


Read more at Bloomberg Stocks News

First Gulf Delays $3.5 Billion Bond Sale, PKN Postpones as Yields Rise

(Bloomberg) -- First Gulf Bank PJSC, a United Arab
Emirates-based lender, delayed indefinitely a plan to sell as
much as $3.5 billion of bonds, citing adverse market conditions.

``We're postponing for some time because we don't believe
pricing will meet our expectations in the current market
conditions,'' Karim Karawi, First Gulf's chief financial officer,
said in a phone interview from Abu Dhabi today. ``We're not in a
hurry,'' he said, declining to elaborate.


Read more at Bloomberg Bonds News

Oil Rises Above $73 on Expectations of Decline in U.S. Gasoline Production

(Bloomberg) -- Crude oil rose above $73 a barrel in
New York for the first time since August on speculation that
U.S. output of gasoline will slow because of unexpected refinery
shutdowns.

BP Plc closed the largest of three crude units at its
refinery in Whiting, Indiana, a person familiar with the plant
said yesterday. The refinery, the biggest in the Midwest,
supplies consumers in the Chicago area. Refineries in Texas and
Kansas shut units last week. The crude-oil market often follows
gasoline during the summer months, when motor-fuel demand peaks.


Read more at Bloomberg Energy News

Levi Strauss posts higher net income in quarter

(Reuters) - The company said it expects to report revenue of $328 million to $329 million for the quarter, ended March 31, below the $330 million to $338 million range it had previously forecast.



Analysts, on average, expected $333.7 million, according to Reuters Estimates.


Read more at Reuters.com Market News

Crude Oil Climbs Above $73 on Speculation U.S. Gasoline Output to Decline

(Bloomberg) -- Crude oil rose above $73 a barrel in
New York for the first time since August on speculation that
U.S. output of gasoline will slow because of unexpected refinery
shutdowns.

BP Plc closed the largest of three crude units at its
refinery in Whiting, Indiana, a person familiar with the plant
said yesterday. The refinery, the biggest in the Midwest,
supplies consumers in the Chicago area. Refineries in Texas and
Kansas shut units last week. The crude-oil market often follows
gasoline during the summer months, when motor-fuel demand peaks.


Read more at Bloomberg Commodities News

Bernanke-hopeful can move on communications policy

(Reuters) - The Fed chief also said interest paid on reserves might serve as an additional instrument of monetary policy control.




Read more at Reuters.com Business News

UPDATE 2-Bernanke: Anchored expectations mute price swings

(Reuters) - CAMBRIDGE, Mass., July 10 - Swings in volatile
energy and food prices will have minimal impact on inflation as
long as expectations of future price gains are held steady,
Federal Reserve Chairman Ben Bernanke said on Tuesday.




"If inflation expectations are well anchored, changes in
energy prices should have relatively little
influence on 'core' inflation, that is, inflation excluding the
prices of food and energy," Bernanke told the National Bureau
of Economic Research.


Read more at Reuters.com Bonds News

GLOBAL MARKETS-Subprime worries hurt shares but lift bonds

(Reuters) - NEW YORK, July 10 - U.S. stocks fell on Tuesday
on a spate of profit warnings and as new trouble in the
subprime mortgage market fueled a sell-off in financial shares
but drove up Treasury prices in a flight to safety.




Standard & Poor's said on Tuesday it may cut its ratings on
$12.1 billion of subprime debt on expectations of further
declines in U.S. home prices and more defaults on home loans.


Read more at Reuters.com Bonds News

UPDATE 1-US banks, brokers shares fall on subprime woes

(Reuters) - NEW YORK, July 10 - The shares of U.S. commercial
and investment banks fell on Tuesday after a bond rating agency
said it may downgrade billions of dollars of securities backed
by subprime bonds, triggering concerns that bond sales and
lending businesses could slow.




Declines were led by banks perceived to have high exposure
to mortgages and other fixed income businesses, including
Lehman Brothers Holdings Inc. , which fell as much as
3.3 percent, and Bear Stearns Cos. , which fell as much
as 2.6 percent.


Read more at Reuters.com Market News

Graphic Packaging to buy carton maker

(Reuters) - Graphic Packaging shareholders will own 60 percent of a new company and investors in Altivity, which is backed by private equity firm TPG Capital, will own the rest.




The deal, expected to close in the fourth quarter, will add to Graphic Packaging's earnings per share and free cash flow by 2008, the company said in a statement.


Read more at Reuters.com Mergers News

Dollar Falls to Record Low Against Euro on Housing Woes, Subprime Concern

(Bloomberg) -- The dollar fell to a record against
the euro and dropped the most since March versus the yen on
speculation the housing market's slump will worsen.

The U.S. currency also sank against the Swiss franc, British
pound and Danish krone after Standard & Poor's warned it may cut
ratings on $12 billion of bonds backed by subprime mortgages,
diminishing the appeal of dollar-denominated assets. Futures
contracts show traders forecast the Federal Reserve will keep
borrowing costs on hold through year-end.


Read more at Bloomberg Currencies News

UPDATE 1-Buyout firms bid for HeidelbergCement unit-sources

(Reuters) - The buyout firms were among those that submitted first-round
bids for the business last week, the sources said.




Other parties interested in the unit, which Germany's
largest cement maker plans to sell to pay for a takeover,
include EQT, CVC Capital Patners [CVC.UL] and Bain, Dow Jones
had reported after markets in Europe closed on Monday.


Read more at Reuters.com Mergers News

UPDATE 1-Alcan in $130 mln deal with Areva for power unit

(Reuters) - Alcan, which is currently the target of an unsolicited
takeover attempt by U.S. aluminum producer Alcoa ,
unveiled plans for the AP50 project last December.




Construction on the $550 million plant is expected to begin
early next year, Alcan said.


Read more at Reuters.com Mergers News

Alpharma's vancomycin to be made in Chinese firm's premises

(Reuters) - In a filing on Tuesday with the U.S. Securities and
Exchange Commission, Alpharma said it was seeking the necessary
regulatory approvals to sell the vancomycin produced at the new
site.





Read more at Reuters.com Government Filings News

US STOCKS-Housing weakness hits outlooks and indexes fall

(Reuters) - NEW YORK, July 10 - U.S. stocks fell on Tuesday
as the housing slump took a toll on companies' earnings
outlooks, while trouble in the subprime mortgage market hurt
financial companies' shares.




Home Depot Inc. , the largest U.S. home improvement
chain, cut its 2007 earnings outlook, citing fallout from the
housing slump, while D.R. Horton, the largest U.S. home
builder, forecast a third-quarter loss.


Read more at Reuters.com Bonds News

Canada Stocks Gain for Fourth Day on Oil; Suncor, Bank of Nova Scotia Rise

(Bloomberg) -- Canadian stocks advanced for a fourth
straight day, after the Bank of Canada increased borrowing costs
for the first time in more than a year, as oil and gold prices
rose. Suncor Energy Inc. and Bank of Nova Scotia paced gains.

Central bank policy makers raised the overnight lending rate
by one quarter point to 4.5 percent, a six-year high, saying
``modest'' further tightening may be needed to curb inflation. The
bank also increased its forecast for economic growth this year to
2.5 percent from an April forecast of 2.2 percent.


Read more at Bloomberg Stocks News

Corn Rallies as Unusually Hot, Dry Weather Threatens Crops in U.S. Midwest

(Bloomberg) -- Corn rose to a one-week high in
Chicago on speculation that hot, dry weather may damage crops in
the U.S., the biggest producer and exporter of the grain.

Parts of the western Midwest may receive less than 25
percent of normal rain the next three weeks and temperatures
will approach 100 degrees Fahrenheit (37.8 Celsius) starting
July 19, said Joel Widenor, a meteorologist for CropCast
Services Inc. in Rockville, Maryland. About 25 percent of
Midwest crops may be at risk, he said.


Read more at Bloomberg Commodities News

Appaloosa, Delphi in talks on restructuring deal

(Reuters) - Delphi said on Monday that it expected to complete a new
equity plan and outline for creditor recoveries in its
bankruptcy by the end of July to replace the deal led by
Appaloosa and Cerberus Capital Management LP [CBS.UL].




Delphi, which filed for bankruptcy in October 2005, still
believes it can exit bankruptcy in 2007 and has set a board
meeting for Monday to consider the matters.


Read more at Reuters.com Bonds News

CDOs could be Wall Street's next bogeyman

(Reuters) - Collateralized debt obligations, or CDOs, are complex bonds that repackage pieces of other loans, including "subprime" mortgages granted to borrowers with weak credit. Analysts say these investments could hurt profits at Merrill Lynch & Co. Inc. and other Wall Street companies.




CDO-related activity could shave about $132 million, or 1.6 percent, off Merrill's 2007 expected net income of $7.85 billion, Bernstein Research analyst Brad Hintz estimated.


Read more at Reuters.com Hot Stocks News

Soybeans Rise as Hot, Dry Weather May Threaten Crop Yields in U.S. Midwest

(Bloomberg) -- Soybeans rose for a fourth straight
session in Chicago, extending a rally to a three-year high, on
speculation that hot, dry weather may damage U.S. crops west of
the Mississippi River.

Parts of the western Midwest might get less than 25 percent
of the normal amount of rain in the next three weeks, and
temperatures will approach 100 degrees Fahrenheit (38 Celsius)
starting July 19, said Joel Widenor, a meteorologist for
CropCast Services Inc. in Rockville, Maryland. About a quarter
of crops in the Midwest may be at risk, he said.


Read more at Bloomberg Commodities News

Court delays Russian suit against Bank of New York

(Reuters) - "We have also been told that the Moscow office has no right to represent Bank of New York in the courts, and we have therefore asked Russia's Foreign Ministry to intervene and deliver all the necessary documents to BONY's head office," lawyer Maxim Smal told Reuters.




A new hearing was set for November 13.


Read more at Reuters.com Business News

Danone shares fall as Numico deal seen expensive

(Reuters) - They said Danone was paying a big premium for the strong growth of Europe's largest maker of baby food in a deal set on Monday, only days after Danone had agreed to sell its biscuits business to U.S.-based Kraft Foods for 5.3 billion euros.




But Danone Chairman and Chief Executive Franck Riboud said at a news conference the 55 euro offer per Numico share, which is 44 percent above Numico's average share price over the past three months, was within the limits the company's board had set.


Read more at Reuters.com Mergers News

PKN Orlen Cancels Bond Sale, Awaiting a More `Constructive Environment'

(Bloomberg) -- PKN Orlen SA, Poland's largest oil
company, postponed a sale of bonds in euros because of market
volatility, according to an e-mailed statement from the company,
sent by one of the managers of the sale.

``Given the current market volatility, PKN Orlen has
decided to place the envisaged transaction on hold,'' the
company said in a statement distributed by Societe Generale SA
today. ``PKN Orlen will continue to monitor the market and
execute the transaction in a more stable and constructive
environment.''


Read more at Bloomberg Bonds News

Copper slips as confidence crumbles, nickel tumbles

(Reuters) - Copper prices slipped on Tuesday alongside losses on equity markets as investor confidence crumbled in the face of profit warnings from U.S. companies.

Nickel also took a nosedive, tumbling nearly nine percent.


Read more at Reuters Africa

US STOCKS-Profit warnings, subprime worries weigh

(Reuters) - NEW YORK, July 10 - U.S. stocks fell on Tuesday
after profit warnings from Home Depot Inc. and Sears
Holdings Corp. , while trouble in the subprime mortgage
market fueled a sell-off among shares of financial companies.




Rating agency Standard & Poor's said it may cut $12 billion
of subprime-related debt on expectations of more delinquent and
defaulted U.S. home loans, hitting investment banks and
mortgage companies. For details, see [ID:nN10336254]


Read more at Reuters.com Bonds News

Mexican stocks fall on U.S. economy concerns

(Reuters) - The United States' largest home improvement chain, Home
Depot Inc , roiled markets by lowering its 2007 earnings
outlook, while Standard and Poor's warned that it may cut the
credit ratings of $12 billion worth of bonds backed by subprime
loans.




A slump in the housing market could dampen U.S. consumer
spending and hit Mexican economic growth, as the United States
buys nearly 90 percent of Mexico's exports.


Read more at Reuters.com Bonds News

Emission Permits May Fall as Utilities, Factories Curb Pollution, ICF Says

(Bloomberg) -- European Union carbon dioxide permits
may fall to as low as 8 euros ($10.92) a metric ton through 2012,
because utilities and factories can curb emissions and there are
enough United Nations credits, ICF International Inc. forecast.

Average prices in the five years starting next year may range
from 8 euros a metric ton to 20 euros, Alexandre Marty, managing
consultant at ICF in London, said today by telephone. The price
today is about 21.15 euros a ton on the European Climate Exchange
in Amsterdam.


Read more at Bloomberg Energy News

Chile's Peso Falls Most in a Week on U.S. Housing Weakness, Export Outlook

(Bloomberg) -- Chile's peso declined the most in a
week on speculation U.S. housing market weakness will slow Latin
American growth.

The peso fell from a seven-week high after Standard &
Poor's said it may cut the credit rating on $12 billion of bonds
backed by U.S. subprime mortgages. Currencies and stocks in
Brazil and Mexico also fell.


Read more at Bloomberg Currencies News

UPDATE 1-Bank of Montreal to buy two Wisconsin-based banks

(Reuters) - Bank of Montreal, Canada's fourth largest bank, has agreed
to buy Ozaukee Bank in a stock transaction worth $190 million.




Ozaukee has $694 million in assets and six branches in the
Milwaukee area.


Read more at Reuters.com Mergers News

Canada Raw-Materials Stocks Fall on Metals Prices Decline; Financials Gain

(Bloomberg) -- Canadian raw-materials producers'
stocks fell, led by nickel miner FNX Mining Co., as prices of
industrial metals dropped.

Financial stocks rose, led by Bank of Nova Scotia. The
Standard & Poor's/TSX Composite Index was little changed, slipping
6.27 from a record to 14,171.25 at 10:36 a.m. in Toronto.


Read more at Bloomberg Stocks News