U.S. Stocks Fall for Week on Concern Housing Slump Will Lead to Defaults

(Bloomberg) -- U.S. stocks had their first
weekly decline in a month after concern grew that loan
losses at banks and brokerages will restrain corporate
profit growth.

Merrill Lynch & Co., Lehman Brothers Holdings Inc. and
Morgan Stanley helped financial shares in the Standard &
Poor's 500 Index tumble the most since March. Google Inc.,
Intel Corp. and Pfizer Inc. declined following their
quarterly reports.


Read more at Bloomberg Stocks News

UPDATE 3-Internet entrepreneur details Dow Jones proposal

(Reuters) - NEW YORK, July 20 - Internet entrepreneur Brad
Greenspan outlined a new proposal on Friday to keep Dow Jones &
Co Inc out of Rupert Murdoch's hands, saying his plan
could help boost the stock price to above $100.




Urging shareholders to reject Murdoch's $5 billion takeover
bid, Greenspan offered to lend members of the Bancroft family,
which controls Dow Jones, $400 million to $600 million to buy
out other Bancrofts who want to cash out at $60 per share --
the price Murdoch's News Corp has offered.


Read more at Reuters.com Mergers News

Citigroup, Lennar, State Street, Tessera Technologies: U.S. Equity Preview

(Bloomberg) -- The following is a list of companies
whose shares may have unusual price changes in U.S. exchanges on
July 23. This preview includes news that broke after exchanges
closed. Stock symbols are in parentheses after company names.

Amgen Inc. (AMGN US): The company's anemia drugs will be
restricted at high doses for patients on kidney dialysis
treatment, according to a statement from the U.S. health program
for the elderly and disabled. The policy will provide greater
restrictions on dosages when a patient's level of hemoglobin
exceeds 13 grams per deciliter of blood, the Medicare agency
said. The stock rose 61 cents to $56.18 in regular trading.


Read more at Bloomberg Stocks News

Bear Stearns to be sued over subprime funds: CNBC

(Reuters) - According to CNBC, the lawsuit will allege Bear Stearns made material misrepresentations in offering documents, misrepresented risks of the hedge funds in those documents, and misrepresented its ability to control those risks.




Officials at Bear Stearns and Bernstein Litowitz did not immediately return requests for comment.


Read more at Reuters.com Bonds News

UPDATE 2-Internet entrepreneur details Dow Jones proposal

(Reuters) - NEW YORK, July 20 - Internet entrepreneur Brad
Greenspan outlined a new proposal on Friday to keep Dow Jones &
Co Inc out of Rupert Murdoch's hands, saying his plan
could help boost the stock price to above $100.




Urging shareholders to reject Murdoch's $5 billion takeover
bid, Greenspan offered to lend members of the Bancroft family,
which controls Dow Jones, $400 million to $600 million to buy
out other Bancrofts who want to cash out at $60 per share --
the price Murdoch's News Corp has offered.


Read more at Reuters.com Mergers News

Alcoa CEO boosts stake in co. after Alcan bid fails

(Reuters) - Alcoa spokesman Kevin Lowery told Reuters that by exercising stock options and other transactions, Belda now holds 146,000 more shares in Alcoa than he did two years ago.




He holds a total of 1,375,385 out of Alcoa's roughly 869.5 million shares outstanding, Lowery said.


Read more at Reuters.com Mergers News

Global growth helps U.S. profits, big-cap stocks

(Reuters) - Appliance maker Whirlpool Corp. and Citigroup Inc.
were among companies on Friday that cited strong
international results as bolstering their quarterly earnings,
helping to offset weakness in U.S. results.




Also benefiting corporate bottom lines is the weakening
U.S. dollar, which has been trading near lows against major
currencies, including the euro. The currency rates mean that
when companies' overseas profits are converted into dollars
they are worth more.


Read more at Reuters.com Market News

SuccessFactors files to go public in $125 mln offer

(Reuters) - The filing did not provide details such as the number of
shares to be sold, expected share price, or expected stock
listing symbol.




Read more at Reuters.com Government Filings News

Subprime Investors Who Lost Money `Deserve It,' Fed's William Poole Says

(Bloomberg) -- Federal Reserve Bank of St. Louis
President William Poole said investors who lost money buying
subprime mortgage-linked securities got what they deserved.

Poole criticized the underwriting standards and interest-
rate assessments of Wall Street and endorsed the Fed's steps to
strengthen consumer safeguards. His remarks come after Chairman
Ben S. Bernanke committed to tougher rules to protect consumers
during his semiannual monetary policy testimony this week.


Read more at Bloomberg Bonds News

Scholastic, After Harry Potter Finale, Faces Buyer Who Must Not Be Named

(Bloomberg) -- After the final adventures of Harry,
Hermione and Ron, Scholastic Corp. may face an exodus of
shareholders if the company doesn't consider selling itself.

Investors including Mark Boyar of Boyar Asset Management
Inc. say the New York-based publisher should be sold because
Chief Executive Officer Richard Robinson, who has run Scholastic
since 1975, hasn't used the windfall from ``Harry Potter,'' the
biggest hit in books in the past decade, to build successful new
businesses. Robinson said today he has no intention of selling.


Read more at Bloomberg Exclusive News

Wall St fear gauge spikes upward on subprime woes

(Reuters) - The Chicago Board Options Exchange Volatility Index ,
shot up 11.3 percent on Friday, continuing an upward trend now
in its fourth month as investors fret over widening problems in
the U.S. credit and housing markets, and more recently,
earnings shortfalls.




The VIX, as it is commonly called, is Wall Street's
favorite measure of investor fear and measures projected stock
market volatility embedded in near-term Standard & Poor's 500
option prices.


Read more at Reuters.com Bonds News

Hogs Post Biggest Weekly Gain Since March on China; Cattle Futures Climb

(Bloomberg) -- Hog futures in Chicago had the
biggest weekly gain in four months on speculation China may
import more U.S. pork to make up for a drop in domestic
supplies. Cattle rose.

China may have to buy as much as 100,000 additional tons of
pork worldwide after the spread of ``blue ear,'' a respiratory
disease in pigs, led to a culling of herds that drove domestic
pork prices up 75 percent in the past year. Hog futures surged
4.7 percent this week, the most since mid-March.


Read more at Bloomberg Commodities News

Internet Brands files for $100 million IPO

(Reuters) - Internet Brands did not reveal in the filing how many Class
A shares it plans to sell or the expected price. It also did
not reveal a symbol for its listed stock.




Read more at Reuters.com Government Filings News

US STOCKS-Earnings misses, subprime woes punish Wall Street

(Reuters) - NEW YORK, July 20 - U.S. stocks tumbled on
Friday, battered by disappointing results from such
bellwethers as Caterpillar and Google, and more signals that
fallout from the risky subprime mortgage market may spread.




The day's losses were big enough to drag the major indexes
into negative territory for the week, snapping a three week
streak of gains for the Dow, the S&P 500 and the Nasdaq.


Read more at Reuters.com Bonds News

UPDATE 1-Mexico June unemployment rate edges up to 3.26 pct

(Reuters) - A Reuters survey of analysts had forecast an unemployment
rate of 3.42 percent for the month.




Mexico's economy grew 4.8 percent last year but is only
expected to expand 3.6 percent this year as U.S. economic
growth slows, affecting Mexican exports to its No. 1 market.


Read more at Reuters.com Economic News

Crude Oil Falls From 11-Month High as Refiners Open Plants, Boost Output

(Bloomberg) -- Crude oil fell from an 11-month high
in New York on speculation that U.S. fuel stockpiles will
increase because refineries are opening units.

Exxon Mobil Corp., BP Plc and Valero Energy Corp. started
units at refineries in Texas over the past week. Prices rose 2.2
percent this week after the Energy Department reported that U.S.
fuel stockpiles declined last week as gasoline demand increased.
Total SA said it restored normal output from an oil field in
Angola after cutting production to make repairs.


Read more at Bloomberg Commodities News

Citigroup profit up 18 pct, tops Wall St view

(Reuters) - Revenue rose faster than expenses for a second straight quarter. Credit losses soared, as they have at rival banks. Nearly half of profit and revenue came internationally, where Citigroup has made 10 acquisitions since October.




Chief Executive Charles Prince, nearing the end of his fourth year at the helm of New York-based Citigroup, has been trying to cut costs and boost revenue, especially overseas, amid pressure from shareholders demanding a higher stock price.


Read more at Reuters.com Business News

Wheat Falls as Rally, Gap With Corn, May Reduce Use in Livestock Feed

(Bloomberg) -- Wheat fell on speculation livestock
producers will use less of the grain in feed after the gap with
corn prices widened to a record.

September wheat futures yesterday rose to a premium of
$3.13 a bushel over corn for the same month in Chicago, more
than double the $1.37 average of the past year. Both grains can
be fed to livestock.


Read more at Bloomberg Commodities News

Alitalia board adjourns talks on fate to next week

(Reuters) - Alitalia, which the Rome government has warned could be shut down unless a buyer is found, set a board meeting for July 27 to finish talks it began over an industrial plan to guide the ailing airline in coming months.




Sources familiar with the matter have said the airline is working on a contingency plan for the next year focused on redesigning its network and curtailing losses.


Read more at Reuters.com Business News

U.S. gold hits two-month high, sharp ETF inflow seen

(Reuters) - Most-active gold for August delivery on the COMEX division of the New York Mercantile Exchange was up $6.60, or 1 percent, at $684.70 an ounce, dealing between $675.80 and $687.60 -- which marked its loftiest level since May 10.




Zachary Oxman, senior trader at Wisdom Financial in Newport Beach, California, said that gold's fundamentals were improving, citing renewed inflows by funds and a strengthening Indian rupee, which boosts jewelry demand from top gold consumer India.


Read more at Reuters.com Hot Stocks News

Credit Risk Surges as Subprime Woes Curb Investors' Appetite for Debt

(Bloomberg) -- The perceived risk of owning bank
loans, corporate bonds and securities based on the riskiest home
mortgages surged as worries about accelerating subprime losses
curbed credit investors' appetites.

Corporate bond risk rose to a two-year high in the U.S. and
Europe, according to credit-default swap indexes that allow
investors to speculate on the ability of companies to repay
their debt or hedge against the risk they won't. Indexes tied to
the risk of owning high-yield, high-risk loans fell to records,
suggesting demand is deteriorating for leveraged-buyout debt.
Indexes of credit-default swaps on subprime mortgage bonds also
plummeted to new lows.


Read more at Bloomberg Bonds News

UPDATE 2-WesBanco to buy Oak Hill Financial for $201 mln

(Reuters) - Shareholders of Ohio-based Oak Hill will receive either
1.256 shares of WesBanco common stock, or $38 a share in cash,
about 60 percent more than Oak Hill's Thursday close of $23.30.




"This is a very sizeable transaction for WesBanco, as it
will double our Ohio deposit market share and give WesBanco
more than a 30 percent increase in total assets," WesBanco
Chief Executive Paul Limbert said in a conference call.


Read more at Reuters.com Mergers News

Chrysler, UAW begin crucial contract talks

(Reuters) - Chrysler, which is being spun off by German parent DaimlerChrysler in a $7.4-billion deal, was the first of the three U.S. automakers to reach a deal with the UAW during the last round of labor talks in 2003.




Chrysler Chief Executive Tom LaSorda shook hands with UAW President Ron Gettelfinger at Chrysler's Auburn Hills, Michigan, headquarters in a choreographed photo opportunity that ushered in a period of deep uncertainty and heightened expectations for the U.S. auto industry.


Read more at Reuters.com Business News

US STOCKS-Earnings misses, subprime woes pummel shares

(Reuters) - NEW YORK, July 20 - U.S. stocks fell sharply on
Friday, battered by disappointing results from bellwether
stocks such as Caterpillar and Google, as well as worries about
the impact of the housing slump and losses from risky
mortgages.




Caterpillar Inc. , the heavy equipment maker, said
quarterly earnings fell more than expected due to a sharp drop
in truck engine sales and weakness in North American
construction. For details, see [ID:nL20191126]. Its stock
tumbled nearly 8 percent.


Read more at Reuters.com Bonds News

Bisys Group sets special dividend of $0.15/shr

(Reuters) - In May, Citigroup had agreed to buy Bisys Group for $1.45
billion.





Read more at Reuters.com Mergers News

Mexico's Bolsa Posts Weekly Drop, Led by Cemex, on Earnings, U.S. Housing

(Bloomberg) -- Mexico's main stock index fell and
headed for a second straight weekly decline, led by cement maker
Cemex SAB, on concern that slowing growth in the U.S. and domestic
economies will crimp profits.

The Bolsa index fell 1.7 percent this week, including a 1
percent decline today, to 31,833.98 at 12:15 p.m. New York time.
The index fell for the fourth in five days after Caterpillar Inc.
said second-quarter profit fell 21 percent, as the U.S. housing
recession hurt demand for its construction equipment.


Read more at Bloomberg Stocks News

UPDATE 2-U.S. junk bonds fall on subprime concerns

(Reuters) - NEW YORK, July 20 - U.S. junk bonds sold off
sharply on Friday, with some benchmark bonds collapsing to
their lows for the year, as worries about the subprime mortgage
crisis mounted, causing a broad repricing of risk.




"The market is in a really panicky state," said one trader.
"It's essentially been 40 straight days of lower levels and a
worsening environment."


Read more at Reuters.com Bonds News

UPDATE 1-Meridian urges patience on Yamana takeover bid

(Reuters) - Meridian said Goldman, Sachs & Co. and BMO Capital Markets
are acting as financial advisors, and that it will announce a
recommendation within the next 10 business days.




Yamana is offering 2.235 Yamana common shares and C$3.15 in
cash for each common share of Meridian, which is based in Reno,
Nevada.


Read more at Reuters.com Mergers News

European Bonds Surge; Benchmark Yields Drop Most in 3 1/2 Years This Week

(Bloomberg) -- European bonds surged, pushing 10-
year yields down the most in 3 1/2 years this week, as the risk
of owning corporate debt rose to a two-year high and investors
switched into safer government assets.

The benchmark bond yield fell to the lowest in seven weeks
today on concern defaults on U.S. home loans to people with poor
credit histories will spread. Government debt around the world
rallied this week after Bear Stearns Cos. told investors they
weren't likely to get money back from two of its hedge funds
that bet on securities backed by subprime mortgages.


Read more at Bloomberg Bonds News

InterGen delays bond pricing to Monday -banker

(Reuters) - InterGen on Thursday boosted the yields on offer on the debt
and boosted investor protections in the deal.




Merrill Lynch, Lehman Brothers, Deutsche Bank and Barclays
Capital are managing the bond sale.


Read more at Reuters.com Bonds News

UPDATE 1-Maple Leaf sees C$300 mln gain from Nutreco deal

(Reuters) - The company said it closed the sale, which it announced the
in May, to Dutch food group Nutreco for C$500 million
plus normal closing adjustments.




Maple Leaf said proceeds from the sale will be used to pay
down short-term debt, and to expand its protein and bakery
businesses.


Read more at Reuters.com Bonds News

Bid for Stelco unlikely to fetch premium -analysts

(Reuters) - A rush of takeovers in the steel industry has left
good-sized, affordable steel assets such as Stelco a scarce
commodity. But amid the merger mania, the company's valuation
seems to ignore its expensive pension and other post-employment
benefit obligations, analysts said.




"No one has told me why they think it's worth what it is,"
said David Tyerman, a steel analyst at Scotia Capital in
Toronto.


Read more at Reuters.com Mergers News