UPDATE 3-Yahoo posts lower profit, gives weak 2007 forecast

(Reuters) - SAN FRANCISCO, July 17 - Yahoo Inc.
reported a dip in quarterly profit on Tuesday as corporate
advertisers spent less on its online ads, and the company gave
a weaker-than-expected forecast for the rest of 2007.




Shares in the Internet media company fell 4.2 percent in
extended trade.


Read more at Reuters.com Market News

Sugar Futures Increase as Higher Crude Oil Price May Boost Ethanol Demand

(Bloomberg) -- Sugar rose in New York on speculation
that higher energy prices may spur demand for ethanol, an
alternative fuel made from cane in Brazil.

Crude oil reached an 11-month high earlier today and has
increased 22 percent this year. Mills in Brazil's center-south
region, the source of 85 percent of the country's sugar cane,
produced more ethanol and less of the sweetener this season as of
July 1 compared with the previous year, the Center South Sugar
and Ethanol Industry Association, known as Unica, said last week.


Read more at Bloomberg Commodities News

Australian Dollar Trades Near Highest in 18 Years as Yields Lure Investors

(Bloomberg) -- The Australian dollar traded near
the strongest in 18 years against the U.S. currency and a 16-
year-high versus the yen on the attraction of the nation's
higher yields.

The local dollar is the third-best performer of the 16
most-active currencies in the past 12 months as investors have
taken advantage of Australia's yield advantage over Japan by
buying local assets with borrowed yen, as part of the so-called
carry trade. Australia's 6.25 percent interest rate compares
with 5.25 percent in the U.S. and Japan's 0.5 percent benchmark.


Read more at Bloomberg Currencies News

Bear Stearns Tells Investors in One Hedge Fund They Won't Get Money Back

(Bloomberg) -- Bear Stearns Cos. told investors in
one of its hedge funds that they won't get any money back after
creditors forced it to sell assets at depressed prices to repay
loans, according a letter sent by the firm.

While there's ``very little value for the investors'' in the
second fund, Bear Stearns said in the letter it doesn't expect to
sustain losses on the $1.6 billion in emergency funding it
provided last month. That fund contains ``sufficient assets'' to
cover the $1.4 billion it still owes the New York-based firm,
according to the letter.


Read more at Bloomberg Bonds News

New study slams safety of Glaxo's Avandia drug

(Reuters) - They found little evidence that Avandia improved the quality
or length of diabetics' lives and concluded it could actually
worsen complications of the disease, after studying pooled data
from 18 past trials involving 8,000 patients.




Dr Bernd Richter of Duesseldorf's Heinrich-Heine University,
who led the research, questioned whether it was ethical to
conduct any further clinical tests with Avandia, since "less
dangerous" alternative treatments were available.


Read more at Reuters.com Government Filings News

Argentina stocks up despite minister resignation

(Reuters) - The MerVal index of 21 leading stocks closed at
2,251.59 points, rising 0.12 percent from the previous day's
close.




"It was a day in which the departure of Miceli passed
unnoticed, as stocks followed the volatility of regional
markets," said Marcelo Paccione, an analyst with
ConsultCapital.


Read more at Reuters.com Bonds News

UPDATE 2-Senators urge US agencies to finalize Basel II

(Reuters) - "We both believe strongly that the decisions you take in
the next few days will have a significant impact on both the
safety and soundness and the competitiveness of the U.S.
financial system," Connecticut Democrat Christopher Dodd, the
committee's chairman, said in a letter.




The letter was also signed by Sen. Richard Shelby of
Alabama, the ranking Republican on the committee.


Read more at Reuters.com Bonds News

US CREDIT-Countrywide swaps may tighten on debt plans

(Reuters) - Countrywide said on Monday that pending
foreclosures as a percentage of outstanding loans more than
doubled in June from a year earlier and delinquencies hit a
six-month high. For details, see [ID:nN16240369].




The cost to insure the debt of Countrywide Home Loans,
which is the most actively traded credit derivative on
Countrywide's debt, rose by around 2 basis points to 62 basis
points on Tuesday, or $62,000 per year for five years to insure
$10 million in debt.


Read more at Reuters.com Bonds News

NEXT UP-Bond traders primed for mortgage theme from Bernanke

(Reuters) - Traders will listen for any suggestions from lawmakers
indicating they envision new waves of legislation to regulate
the credit industry, which many blame for loose practices that
led to the meltdown of the subprime mortgage sector.




Regulators, including the Federal Reserve Board, announced
on Tuesday their latest effort to come to grips with subprime
in a plan to conduct joint consumer-protection reviews of
non-depository sub-prime mortgage lenders. See
[ID:nN17237094].


Read more at Reuters.com Bonds News

FACTBOX-No subsidies to millionaires-US House bill

(Reuters) - House proposal




--People with adjusted gross income of more than $1 million
not eligible for crop or land stewardship payments.


Read more at Reuters.com Bonds News

UPDATE 1-Pulte sees second-quarter loss

(Reuters) - Pulte said the quarterly loss would include charges of $740
million to $770 million on a pretax basis, or $1.85 to $1.92
per share after taxes, related to impairments and lower land
values.




The company said the outlook also includes a pretax charge
of about $40 million, or 10 cents per share after taxes,
related to a 16 percent staff cut announced on May 29.


Read more at Reuters.com Market News

U.S. House Passes Energy Spending Bill Despite Threat of Veto From Bush

(Bloomberg) -- The U.S. House of Representatives
passed an energy spending bill that directs hundreds of millions
of dollars into renewable energy and efficiency.

The $32.1 billion fiscal year 2008 measure, which funds the
Energy Department and Army Corps of Engineers' water projects,
prevents the Energy Department from directing loans to nuclear
power plants and slashes funding from a proposal to promote
nuclear waste reprocessing. The bill passed by a 312-112 vote.


Read more at Bloomberg Energy News

CSX 2nd profit falls, tops expectations

(Reuters) - In post-market trading, CSX's stock hit a 12-month high.




Second-quarter net income fell 17 percent to $324 million,
or 71 cents a share, from $390 million, or 83 cents a share, in
the year-earlier quarter. Analysts had expected second-quarter
earnings per share of 64 cents, according to Reuters
Estimates.


Read more at Reuters.com Market News

Deutsche Bank Boosts S&P 500 Forecast on Profit Growth, Slowing Inflation

(Bloomberg) -- Deutsche Bank Securities boosted its
2007 forecast for the Standard & Poor's 500 Index by 4.5 percent
to 1610 on expectations of higher-than-forecast earnings and
slowing inflation.

The S&P 500 Index, which has gained 9.2 percent this year
and closed at a record on July 13, would need to rise another 3.9
percent by the end of the year to reach Deutsche Bank's new
forecast. The index fell 0.15 to 1549.37 today.


Read more at Bloomberg Stocks News

Retailer Lululemon resets IPO at 18.2 mln shrs

(Reuters) - According to its filing with the U.S. Securities and
Exchange Commission, it still expects the shares to price
between $10 and $12 each.




Goldman Sachs and Merrill Lynch are the lead underwriters
for the IPO by the Canadian company.


Read more at Reuters.com Government Filings News

Abitibi-Consolidated, Bowater name CEO, CFO for AbitibiBowater

(Reuters) - Bowater agreed in January to buy Abitibi and create
AbitibiBowater Inc.





Read more at Reuters.com Mergers News

ABC-Wash Post Consumer Comfort Index falls to -11

(Reuters) - Earlier on Tuesday, Investor's Business Daily and
TechnoMetrica Market Intelligence said their IBD/TIPP economic
optimism index fell deeper into pessimistic territory to 48.2
in July from 49.1 in June, under pressure from higher energy
and food costs.




Two of the three components of the ABC/Post survey were
down as Americans' positive views on their personal finances
and the buying climate fell 3 percentage points each to 55
percent and 36 percent, respectively.


Read more at Reuters.com Economic News

Warner highly unlikely to bid for EMI - source

(Reuters) - Warner has since been grappling with a decision on whether to counter-bid for its British rival.




Read more at Reuters.com Mergers News

House votes to allow police, firefighter unions

(Reuters) - "The House has gone on record in favor of better wages, benefits and working conditions for men and women who keep watch over neighborhoods and protect our nation," House Speaker Nancy Pelosi of California told reporters.




Lawmakers said some 20 states do not allow public safety workers to discuss or negotiate workplace matters.


Read more at Reuters.com Bonds News

US House Democrats to offer predatory lending bill

(Reuters) - Rep. Keith Ellison of Minnesota, a member of the House
Financial Services Committee, said the legislation takes a
tough stand against predatory lending by state-regulated
mortgage brokers and is modeled after a new Minnesota law.




"They are the protections that we believe the rest of the
nation deserves as well," Ellison said in a statement.


Read more at Reuters.com Government Filings News

Champion Enterprises Q2 earnings fall

(Reuters) - The year-ago quarter included $101.9 million of income from
the reversal of a previously recorded deferred tax asset
valuation allowance, the company said in a statement.





Read more at Reuters.com Market News

Corn Falls to 8-Month Low as Midwest Rains May Improve Prospects for Crop

(Bloomberg) -- Corn fell to an eight-month low in
Chicago, extending a slide that began yesterday, on forecasts
for Midwest rains that may improve prospects for U.S. crops
following a two-month heat wave.

Some fields from Iowa to Ohio may receive 2 inches (5.1
centimeters) of rain in the next 72 hours, said Joel Burgio, a
senior agricultural meteorologist for Meteorlogix LLC in Woburn,
Massachusetts. As much as 1.5 inches of rain fell from Minnesota
to Illinois in the past 24 hours and above-normal rains are
expected after July 23 in the Midwest.


Read more at Bloomberg Commodities News

Chrysler Forced to Pay Higher Interest Rates on Debt for Cerberus Buyout

(Bloomberg) -- Chrysler increased the interest rates
on $12 billion of loans it is seeking to fund a buyout by
Cerberus Capital Management LP after investors balked at the
money-losing carmaker's original terms, lenders said.

The company raised the yield it is willing to pay on a $10
billion term loan for its auto unit to 3.75 percentage points
over the London interbank offered rate from 3.25 percentage
points it was seeking on June 28. Chrysler is offering Libor plus
at least 7 percentage points on a $2 billion second-lien loan,
compared with the 6 percentage points initially proposed, said
three investors, who declined to be named because the terms
aren't public.


Read more at Bloomberg Bonds News

RLPC-UPDATE 1-Price talk widens on Chrysler buyout financing

(Reuters) - The changes come as potential loan investors have expressed
concerns that they could lose the bulk of their money if
Cerberus' planned turnaround of Chrysler fails, forcing the
automaker to seek bankruptcy protection.




The $10 billion first-lien loan is now talked in the 375
basis points over Libor range, up from 325 basis points over
Libor. Meanwhile, pricing on the $2 billion second-lien loan
has been widened to 700 basis points over Libor from original
talk of 600 basis points over Libor. The loan, which was
originally being sold at 100 cents to the dollar, is now
expected to clear at a discount.


Read more at Reuters.com Bonds News

Corporate Bond Risk Rises for a Second Day, Worries About Subprime Mount

(Bloomberg) -- The risk of owning U.S. and European
corporate bonds rose as investors speculated losses from
subprime mortgage securities will accelerate, according to
traders of credit-default swaps.

Contracts based on $10 million in the CDX North America
Investment-Grade Index of 125 companies rose $4,000 to an
offered price of $48,250 at 3:51 p.m. in New York, Deutsche Bank
AG prices show. The iTraxx Crossover Index of 50 European
companies jumped 20,500 euros ($28,252) to 288,000 euros at 5:30
p.m. in London, according to JPMorgan Chase & Co. An increase in
the indexes suggests deterioration in the perception of credit
quality.


Read more at Bloomberg Bonds News

Weak dollar blows a strong profit tailwind

(Reuters) - The currency's slide is delivering a generous boost to sales and earnings for many U.S. companies, a trend most analysts see continuing through the year.




Those deriving the greatest benefit generate a significant portion of business beyond U.S. borders, where the weak greenback makes their goods cheaper to foreign buyers and profits generated in those markets are amplified when translated back into dollars.


Read more at Reuters.com Market News

Ratings agencies may cut Lyondell Chemical on sale

(Reuters) - "We expect Basell to finance the purchase largely with
debt, which will result in a very aggressive capital
structure," Standard & Poor's said in a statement.




Moody's Investors Service awards Lyondell a "Ba3" corporate
family rating, which is three steps below investment grade. S&P
and Fitch Ratings assign the company a "BB-minus" corporate
credit and issuer default rating, respectively, each also three
steps below investment grade.


Read more at Reuters.com Bonds News

UPDATE 2-Tiscali 07 profit with Pipex seen at 160 mln euros

(Reuters) - MILAN, July 17 - Italian communications provider
Tiscali said on Tuesday it expects pro forma core profit
of 160 million euros this year, consolidating the broadband and
voice operations of Britain's Pipex for the last quarter.




The company clarified the target in a statement after Chief
Executive Tommaso Pompei had earlier said pro forma core profit,
or earnings before interest, tax, depreciation and amortisation,
would just be double last year's 100.4 million euros , including Pipex results for the full year.


Read more at Reuters.com Mergers News

4uropean Union Carbon Emissions Rebound From 11-Week Low as Coal Declines

(Bloomberg) -- European Union carbon dioxide
permits rebounded from their lowest in 11 weeks, as the price of
coal fell for the first day in 10, potentially increasing demand
for allowances to burn the fuel at power plants.

Permits for December 2008 rose 37 cents, or 2 percent, to
close at 19.25 euros ($26.54) a metric ton on the European
Climate Exchange in Amsterdam. They earlier dropped as much as
3.9 percent to 18.15 euros, their lowest since April 27.


Read more at Bloomberg Energy News

UPDATE 1-Mexico's 28-day Cetes yield rises to 7.19 pct

(Reuters) - Longer-term Cetes yields were mixed at the central bank's
weekly auction. The bank auctioned the 20-year peso bond at a
yield of 7.68 percent, up 12 basis points from the last time it
was sold on June 5.




Mexico's central bank is expected to leave its key rate at
7.25 percent at its monthly monetary policy decision on July
27.


Read more at Reuters.com Bonds News

Starbucks shakes up management, adds COO post

(Reuters) - Jim Alling, the head of Starbucks' U.S. business, will replace Coles as president of the company's international unit. Alling has worked for Starbucks since 1997 and has held his current post since 2005.




Launi Skinner, who joined Starbucks in 1993 and most recently served as senior vice president of store development, will become president of Starbucks Coffee U.S.


Read more at Reuters.com Business News

CBOE profit rises 31 pct

(Reuters) - Earnings after taxes for the quarter rose to $18.7 million from $14.2 million a year ago. Before taxes, quarterly profits were $32.2 million, compared to $23.7 million during the same period a year ago, the exchange said.




Second-quarter revenues grew 20 percent to $84.6 million from $70.5 million a year earlier. The rise in revenues resulted from higher trading volumes, which raised transaction fees by $11.3 million, the CBOE said.


Read more at Reuters.com Hot Stocks News

US court approves Doral lawsuits settlement

(Reuters) - The lawsuits were filed after Doral's 2005 announcement
that it would need to restate financial statements from 2000 to
2004.





Read more at Reuters.com Mergers News

Fed's Hoenig-workforce growth in process of change

(Reuters) - The Fed bank president, speaking to a group here also
cautioned that monetary policy cannot determine potential
growth rates.




"It cannot change the long-run growth rate," said Hoenig,
who is a voting member this year on the Federal Reserve's
interest rate-setting committee.


Read more at Reuters.com Bonds News

Southern Copper H1 profit rose significantly - CEO

(Reuters) - Southern Copper is controlled by Grupo Mexico
.




Read more at Reuters.com Market News

LKQ to buy Keystone Automotive for $811 mln

(Reuters) - Shares of Chicago-based LKQ were up more than 13 percent at $28.75 in afternoon trade on the Nasdaq.




"Keystone is by far the biggest acquisition they have ever done, this will almost double the size of the combined company", William Armstrong, analyst with CL King and Associates, said by phone. The deal, which is expected to close early in the fourth quarter, will slightly add to earnings in 2008, LKQ said.


Read more at Reuters.com Hot Stocks News

Treasuries Little Changed on Report Showing Homebuilder Confidence Dropped

(Bloomberg) -- Treasuries were little changed after
an industry report showed confidence among U.S. homebuilders
fell this month to the lowest level in 16 years.

The yield on the benchmark 10-year note rose almost 2 basis
points, or 0.02 percentage point, to 5.06 percent at 1:47 p.m.
in New York, according to bond broker Cantor Fitzgerald LP. Bond
yields and prices move in the opposite direction. The price of
the 4 1/2 percent security due in May 2017 fell 3/32, or 94
cents per $1,000 face amount, to 95 23/32.


Read more at Bloomberg Bonds News

U.S. Stocks Advance, Dow Average Tops 14,000 as Financial Shares Rally

(Bloomberg) -- U.S. stocks rose, sending the Dow
Jones Industrial Average past 14,000 for the first time, after
wholesale inflation unexpectedly declined and Goldman Sachs Group
Inc. recommended American Express Co. shares.

American Express, the fourth-biggest U.S. credit-card
issuer, helped push the Dow average to a fourth-straight record.
Novellus Systems Inc. surged the most since October 2002 and led
shares of semiconductor-equipment makers higher after it forecast
orders this quarter above analysts' projections.


Read more at Bloomberg Stocks News

Motorola reshuffles its business units

(Reuters) - The deal would add 17 cents to 20 cents a share to earnings for the 12 months following completion, Psychiatric Solutions said in a statement. Psychiatric Solutions will pay Horizon stockholders $20 in cash for each Horizon share, and assume about $105 million of debt.






Read more at Reuters.com Market News

TREASURIES-Prices slip on stock gains, data surprise

(Reuters) - The decline in Treasury prices was mitigated by ongoing
worries about subprime mortgages and an industry report showing
the housing market is still stuck in a slump.




The National Association of Home Builders said its index on
its members' sentiment fell to 24 in July, a 16-1/2-year low.


Read more at Reuters.com Bonds News

Mexico's Bolsa Falls on Earnings Concern, Led by Cemex: Bancolombia Gains

(Bloomberg) -- Mexico's Bolsa index fell for a second
day on concern that second-quarter earnings reports will show
stocks are overvalued.

The Bolsa declined 248.71, or 0.8 percent, to 32,017.22 as of
1:01 p.m. New York time. Brazil's Bovespa index of most-traded
shares on the Sao Paulo exchange was little changed, rising 47.76,
or 0.1 percent, to 57,422.16.


Read more at Bloomberg Stocks News

Dutch law backs EADS golden share -French senator

(Reuters) - However it would need the support of two thirds of EADS
shareholders before it could be introduced under Dutch law,
which is the legal framework for Dutch-registered EADS.




"Under the present pact, the French state has shares but
doesn't participate in all decisions, while the German
government has no shares but German interests are very present
via DaimlerChrysler," Le Grand told Reuters.


Read more at Reuters.com Bonds News

Corporate Bond Risk Jumps in Europe, U.S. Following Subprime Index Rout

(Bloomberg) -- The risk of owning U.S. and European
corporate bonds rose today after indexes of securities linked to
U.S. subprime mortgages slumped to a record low, according to
traders of credit-default swaps.

Contracts based on 10 million euros ($13 million) of debt
included in the iTraxx Crossover Index of 50 European companies
jumped 20,500 euros to 288,000 euros at 5:15 p.m. in London,
according to JPMorgan Chase & Co. The CDX North America
Investment-Grade Index of 125 companies rose $2,000 to an offered
price of $46,000 at 11:40 a.m. in New York, Deutsche Bank AG
prices show. An increase in the indexes suggests deterioration in
the perception of credit quality.


Read more at Bloomberg Bonds News

UPDATE 1-Metronet to file for administration -sources

(Reuters) - LONDON, July 17 - Metronet, the company
maintaining and upgrading nine of London's 12 underground lines,
is to file for administration because of a cash shortage caused
by overspending, sources close to the situation said on Tuesday.




Accountancy firm Ernst & Young [ERNY.UL] is set to be
appointed as the administrator, one of the sources told Reuters.


Read more at Reuters.com Bonds News

UPDATE 2-TD Bank to chip in C$3.8 bln for BCE takeover

(Reuters) - VANCOUVER, British Columbia, July 17 -
Toronto-Dominion Bank will put up C$3.8 billion , including C$500 million of equity, to finance the
buyout of BCE Inc. , Canada's biggest telecoms company,
the bank said on Tuesday.




TD said it has underwritten C$3.3 billion of a
C$34.3-billion credit facility and also provided a C$500
million equity bridge facility to the buyout consortium, which
is led by the Ontario Teachers' Pension Plan Board.


Read more at Reuters.com Bonds News

Mexican stocks drop, hurt by Cemex losses

(Reuters) - The benchmark IPC stock index slipped 1.2 percent to
31,872 points, while the peso firmed 0.20
percent to 10.759 pesos per dollar after news of
stronger-than-expected U.S. factory output in June.




Shares in Cemex slumped 2 percent to 38.27
pesos on ongoing concerns about problems in the U.S. housing
market. Its U.S.-traded shares were off 1.3 percent at
$35.58.


Read more at Reuters.com Bonds News

Couche-Tard reports bigger fourth-quarter profit

(Reuters) - TORONTO, July 17 - Alimentation Couche-Tard Inc. , North America's third biggest convenience store operator, posted a bigger fourth-quarter profit on Tuesday on the back of higher sales from acquisitions.



The gas station and convenience store company earned $33.4 million, or 16 cents a share, for the period ended April 29. That was up from a profit of $29.4 million, or 15 cents a share, in the year-prior period.


Read more at Reuters.com Mergers News

Crude Oil Is Little Changed Amid Signs U.S. Gasoline Inventories Climbed

(Bloomberg) -- Crude oil was little changed,
retreating from an 11-month high in New York, on speculation
that U.S. gasoline inventories will rise as refineries increase
output.

Gasoline prices in New York have plunged 12 percent in the
past five days. The oil market often follows gasoline during the
summer months, when motor-fuel demand peaks. A government report
tomorrow may show that U.S. oil supplies fell last week as
refineries increased production.


Read more at Bloomberg Commodities News

Sale of Dominion assets gets US antitrust approval

(Reuters) - Loews, a conglomerate with other energy investments, has
agreed to pay about $4.03 billion for Dominion's gas assets in
the Permian Basin in Texas as well as in Michigan and Alabama.




XTO, a natural gas producer, will pay about $2.5 billion
for the operations in the Rocky Mountains and South Texas
region, including the Gulf Coast, San Juan Basin and
Louisiana.



Read more at Reuters.com Government Filings News

Gold, Silver Futures Climb in New York on Speculation Dollar to Weaken

(Bloomberg) -- Gold and silver climbed in New York
on speculation a decline in the value of the dollar will boost
demand for the precious metals as alternative investments.

Gold generally moves in the opposite direction of the
dollar, which was little changed against the euro today after
falling to a record last week. Gold and the euro both have
gained close to 4.5 percent this year.


Read more at Bloomberg Commodities News