Radian-Backed U.S. Municipal Bonds Face Possible Cut in Ratings by Fitch

(Bloomberg) -- Fitch Ratings put 934 municipal bond
issues insured by a Radian Asset Assurance Inc. under review for
a possible ratings cut following losses by its parent on an
investment in a subprime mortgage lender.

Radian Group Inc. and MGIC Investment Corp., which
announced plans in February to merge, yesterday said their
combined stakes of more than $1 billion in Credit-Based Asset
Servicing and Securitization may be worthless. Radian Asset
Assurance is rated AA, while Radian Group is ranked A.


Read more at Bloomberg Bonds News

Wells Fargo sued for racial bias in mortgage loans

(Reuters) - In their complaint, Nancy and Johnny Jeffries accused Wells
Fargo of marking up interest rates or adding fees for black
borrowers seeking mortgages after agreeing to lend based on
more well-defined criteria such as credit histories and home
values. The southwest Chicago homeowners said this violates the
federal Fair Housing Act and Equal Credit Opportunity Act.




The lawsuit seeks class-action status, and was filed on
Monday against San Francisco-based Wells Fargo in the U.S.
District Court for the Northern District of California.


Read more at Reuters.com Bonds News

UPDATE 1-Inmet Mining profit rises on higher metal prices

(Reuters) - The mid-tier copper, zinc and gold miner earned C$138
million , or C$2.86 a share, in the quarter ended
June 30. That was up from C$132 million, or C$2.74 a share, in
the year-before period.




Analysts polled by Reuters had expected, on average, profit
of C$2.81 a share.


Read more at Reuters.com Market News

US STOCKS-U.S. stocks fall as credit worries return

(Reuters) - NEW YORK, July 31 - U.S. stock indexes fell on
Tuesday, giving up earlier earnings-driven gains as worries
about the deteriorating credit market resurfaced.




American Home Mortgage Investment Corp. was the
latest casualty of the housing slump. The mortgage lender said
it can't fund home loans and may have to liquidate.


Read more at Reuters.com Bonds News

GM beats second-quarter estimates

(Reuters) - GM posted a second-quarter profit of $891 million against a massive $3.4-billion loss a year ago, bolstered by gains in Europe, Latin America and Asia, sales of higher-margin vehicles and a one-time, tax-related gain.




The automaker also sharply narrowed its losses in its troubled home market, but vowed to keep the pressure on costs, the overriding issue in a crucial round of ongoing labor talks with its major union.


Read more at Reuters.com Business News

UPDATE 2-Coach fourth-quarter profit, outlook up; shares fall

(Reuters) - NEW YORK, July 31 - Coach Inc. said on
Tuesday that quarterly profit rose nearly 37 percent and raised
its 2008 outlook due in part to strong sales in Japan and the
introduction of its Ergo line of handbags.




But Coach shares were down 3.5 percent in afternoon trade as
some investors focused on a decline in quarterly gross margin and
others took profits a day after expectations had boosted shares 5
percent, according to one analyst.


Read more at Reuters.com Market News

Teck Cominco says still in hunt for acquisitions

(Reuters) - "There are a number of opportunities that we have been
looking at but unable to conclude a deal at this
point," Don Lindsay, Teck's president and CEO, told a
conference call.




"We don't want to telegraph any moves in advance ... but we
are committed to diversification."


Read more at Reuters.com Mergers News

U.S. Swaptions Interest Rate Volatility Falls as Perceived Bond Risk Eases

(Bloomberg) -- Volatility on options on interest-
rate swaps fell from a 17-month high for a second day as the
perceived risk of owning corporate bonds declined.

The risk of holding corporate debt dropped by the most in
at least three years after home lender GMAC LLC said subprime
mortgage losses narrowed and Citadel Investment Group LLC said
yesterday that it bought the assets of a failed hedge fund.


Read more at Bloomberg Currencies News

Chile stocks rise following growth data, peso gains

(Reuters) - "The market has completely recovered since last week," a
trader said. "Today in Chile data on unemployment, industrial
production and other figures were released. They were better
than the market expected."




June industrial production grew 6.7 percent over 12 months,
easily outpacing analysts' forecasts of 4.8 percent, while
second-quarter unemployment came in at 6.9 percent, the lowest
for the period in nine years.


Read more at Reuters.com Bonds News

US STOCKS-Earnings lift blue chips, credit woes linger

(Reuters) - NEW YORK, July 31 - U.S. blue-chip stocks rose on
Tuesday, lifted by positive earnings from companies, including
General Motors Corp. , and by reassuring reports on the
economy.




But two major stock indexes were off their highs for the
session and the Nasdaq was little changed as concerns about
deteriorating credit conditions -- which led to last week's
market rout -- returned.


Read more at Reuters.com Bonds News

Avon quarterly profit falls on costs

(Reuters) - The world's largest direct seller of cosmetics said net income fell to $113 million, or 26 cents a share, from $151 million, or 33 cents a share, in the year-ago period.




Income included pretax costs of about $82 million on restructuring and revamping its products. Excluding the charges, the company earned 38 cents per share, according to Reuters Estimates, missing Wall Street's forecast of 42 cents.


Read more at Reuters.com Bonds News

CORRECTED - UPDATE 1-Aspen Technology settles SEC charges

(Reuters) - Cambridge, Massachusetts-based Aspen, which develops
computer software for oil refineries and other process
industries, agreed to cease and desist from future violations
and settled the case without admitting or denying any
wrongdoing, the SEC said.




The SEC did not announce any monetary penalty against the
company, which is required to retain an independent consultant
to review its financial and accounting policies and
procedures.


Read more at Reuters.com Government Filings News

Economist testifies against Whole Foods, Wild Oats

(Reuters) - By Peter Kaplan



WASHINGTON, July 31 - Competition between Whole Foods Market Inc and Wild Oats Markets Inc had led to lower profit margins, an economist told a U.S. federal judge on Tuesday who is weighing whether to block a merger of the organic grocers.


Read more at Reuters.com Government Filings News

U.S. construction spending fell 0.3 pct in June

(Reuters) - Private nonresidential construction rose 0.3 percent to a
$347 billion annual rate, a record high.




But private residential construction slipped 0.7 percent to
a $544 billion annual rate, the lowest level since March 2004.


Read more at Reuters.com Economic News

UPDATE 1-Vallourec Q2 earnings ahead of expectations

(Reuters) - Gross operating income rose 3.6 percent to 466.6 million
euros on sales up 11.4 percent at 1.558
billion. Net profit rose 7.5 percent to 257.7 million.




The average forecast of seven analysts in a Reuters poll was
for sales of 1.498 billion euros, an EBITDA operating profit of
445 million and net profit of 245 million.


Read more at Reuters.com Market News

Bre-X gold scam figure not guilty on all counts

(Reuters) - Shares of the company, which had soared to value the firm at C$6 billion, collapsed to nothing, costing thousands of investors their savings, and leaving ruined shareholders to sell their stock certificates off as bitter souvenirs to a public fascinated by the story.




Felderhof's lawyers had argued that Felderhof was not aware the results were false.


Read more at Reuters.com Business News

Nymex Gas Falls With U.S. Inventories on Track to Reach Record by Winter

(Bloomberg) -- Natural gas in New York fell on
speculation U.S. gas inventories probably rose toward a record
and speculators ended buying spurred by an earlier outlook for
hot weather and tropical storms.

Analysts expect U.S. gas in storage likely rose 75 billion
cubic feet last week, the median response of eight analysts in a
Bloomberg survey. Estimates ranged from 60 billion to 77 billion.
The five-year average increase for the week is 51 billion cubic
feet, according to department statistics.


Read more at Bloomberg Energy News

IAC's Diller says not sure of interest in HSN swap

(Reuters) - "Whether or not it will ever be in our
interest to do so or their interest, I can't really tell you,"
Diller said on a conference call with analysts.




Separately, Diller said he expected a return to share
repurchases for IAC and online travel site Expedia once tighter
credit market conditions abate. Diller curtailed a larger
buyback for Expedia last week, blaming a lack of attractive
financing available in credit markets.


Read more at Reuters.com Mergers News

Rogers CEO shoots down talk of Shaw takeover

(Reuters) - His remarks came after a Canaccord Adams analyst published a research note last week in which he speculated the two big Canadian cable-TV and telecoms companies could be in talks for a deal that would value Shaw at as much as C$14.4 billion .




Rogers called the speculation "plain irresponsible" and also criticized the media for reporting on "some completely theoretical diatribe".


Read more at Reuters.com Mergers News

Dow Jones, Faro, Fresh Del Monte, IndyMac, Midwest Air: U.S. Equity Movers

(Bloomberg) -- The following is a list of companies
whose shares are having unusual price changes in U.S. exchanges.
Stock symbols are in parentheses after company names. Share
prices are as of 1:10 p.m. in New York.

Aftermarket Technology Corp. (ATAC US) rose the most since
January 2001, jumping $6.75, or 25 percent, to $33.24. The car-
parts maker increased its 2007 forecast, saying it expects to
earn $1.55 to $1.70 a share. The company earlier predicted profit
of as much as $1.55.


Read more at Bloomberg Stocks News

Wheat Falls as Harvest Pace Increases in U.S. Great Plains, Adds to Supply

(Bloomberg) -- Wheat fell for a second-straight day
in Chicago as the U.S. winter-crop harvest in the southern Great
Plains neared completion and farmers to the north sped up
spring-crop cutting, increasing supplies.

About 88 percent of the winter crop was harvested as of
July 29, up from 81 percent a week earlier, the U.S. Department
of Agriculture said in a report yesterday. Ten percent of the
spring crop was collected compared with 2 percent the previous
week, the USDA said. Growers probably will sell wheat to make
room for corn, which will be collected starting in late August.


Read more at Bloomberg Commodities News

S.Africa Telkom gets ok from regulator on price cuts

(Reuters) - South Africa's communications regulator has approved fixed-line operator Telkom's plans to drop its prices by 1.2 percent overall, the firm said on Tuesday.

Telkom -- which has been under pressure from government to lower telecoms costs that are among the highest globally -- filed its price changes last month with the Independent Communications Authority of South Africa (ICASA).


Read more at Reuters Africa

IndyMac intends to maintain stock dividend

(Reuters) - IndyMac, which makes many mortgages considered just below
"prime" in quality, said it is trying not to take excessive risks
as borrowers miss more payments and amid lessening liquidity in
secondary markets.




"What we're focused on right now is safety and soundness,"
Perry said on a conference call discussing quarterly results.



Read more at Reuters.com Bonds News

UPDATE 2-News Corp, Dow Jones deal expected Tuesday-source

(Reuters) - NEW YORK, July 31 - Rupert Murdoch's News Corp.
is likely to secure a deal to buy Dow Jones & Co. Inc.
on Tuesday after drawing the support of a sufficient
number of votes held by the company's controlling family,
according to The Wall Street Journal.




The two sides are expected to reach a definitive agreement
by Tuesday evening, capping Murdoch's three-month pursuit of
the publisher of The Wall Street Journal, a source familiar
with the matter said.


Read more at Reuters.com Bonds News

RLPC-Myers Industries postpones $950 mln LBO financing

(Reuters) - The financing, which was being arranged by Goldman Sachs,
consisted of a $685 million bank loan and $265 million in
senior subordinated notes.




Read more at Reuters.com Bonds News

TREASURIES-Bond dip on firmer stocks, credit markets

(Reuters) - NEW YORK, July 31 - U.S. Treasuries eased on
Tuesday as stocks rose for a second day and credit markets
rallied on waning fears over tighter access to funding.




Government bonds were little moved by mixed economic data
that painted a picture of benign inflationary pressures and
slower economic growth, but surprisingly upbeat consumer
sentiment. For details, see [ID:nN30403317], [ID:nN30443227]


Read more at Reuters.com Bonds News

Agco quarterly earnings rise

(Reuters) - Net income in the second quarter rose to $63.8 million, or 67 cents a share, from $40.9 million, or 45 cents share, a year earlier. Net sales grew about 18 percent to $1.71 billion from $1.45 billion in the year-ago period.



Analysts on average expected the Duluth, Georgia-based company to report a profit of 53 cents a share, before items, on revenue of $1.6 billion, according to Reuters Estimates.


Read more at Reuters.com Market News

UPDATE 1-Apria Healthcare posts rise in profit

(Reuters) - Second-quarter net income was $20.8 million, or 47 cents
per share, compared with $18.5 million, or 43 cents per share,
in the second quarter of 2006.




Analysts on average had forecast earnings of 45 cents per
share, according to Reuters Estimates.


Read more at Reuters.com Market News

UPDATE 1- Regal-Beloit second-quarter earnings rise

(Reuters) - Net income for the quarter rose to $36.3 million, or $1.06
a share, from $33.3 million, or 99 cents a share, in the same
period a year earlier, the manufacturer of motion control and
power generation products said.




Quarterly net sales increased 5.6 percent to $459.8
million.


Read more at Reuters.com Market News

UPDATE 1-Timken quarterly profit falls on weak auto demand

(Reuters) - Earnings fell to $55.6 million, or 58 cents per share, from
$64.9 million, or 69 cents per share, a year earlier.




Excluding special items, income from continuing operations
fell to 73 cents per share from 80 cents a year ago. On that
basis, analysts' average forecast was 72 cents per share,
according to Reuters Estimates.


Read more at Reuters.com Market News

UPDATE 1-Arch Chemicals second-quarter net declines

(Reuters) - Net income was $22.8 million, or 93 cents a share, compared
with $29.5 million, or $1.22 a share, a year earlier, the
Norwalk, Connecticut-based company said.




Excluding one-time items, earnings from continuing
operations rose to $1.41 a share from $1.22 a year ago.


Read more at Reuters.com Market News

George Weston quarterly profit drops 30 pct

(Reuters) - The results were lower than analysts' average expectation of a profit of C$1.02 a share, according to Reuters Estimates.



Sales for the quarter were C$7.74 billion, up from C$7.51 billion in the corresponding quarter of last year.


Read more at Reuters.com Market News

UPDATE 1-Waste Management profit beats forecasts, shares up

(Reuters) - Excluding one-time items, the Houston-based company posted
a second-quarter profit of 56 cents per share, up from 45 cents
a year earlier. Analysts on average had expected 52 cents per
share, according to Reuters Estimates.




"The dynamics within this performance were familiar, with a
lower base of revenues more than compensated by much better
margin trends," Deutsche Bank analyst Nigel Coe wrote in a note
to clients.


Read more at Reuters.com Market News

Northwest posts quarterly profit on cost cuts

(Reuters) - CHICAGO, July 31 - Northwest Airlines Corp. , the No. 5 U.S. airline, reported a second-quarter profit that was inflated by reorganization items, reversing a year-ago loss.



The No. 5 U.S. airline, which completed a bankruptcy reorganization in May, said on Tuesday profit was $2.15 billion, compared with a loss of $285 million a year earlier.


Read more at Reuters.com Market News

Auxilium reaffirms 2007 net revenue view

(Reuters) - Shares of the specialty pharmaceutical company were trading
up nearly 7 percent, or $1.08, at $17.19 in morning trade on
the Nasdaq.





Read more at Reuters.com Market News

Nymex posts higher 2nd-qtr profit, shares rise

(Reuters) - NEW YORK, July 31 - Metals and energy exchange operator NYMEX Holdings Inc. said on Tuesday second-quarter profit rose on growth in transaction and clearing fees.



The operator of the New York Mercantile Exchange said net income rose to $41.7 million, or 44 cents per share, from $38.1 million, or 44 cents per share, a year earlier. The earnings per share remained the same because of an increase in the number of shares outstanding during the latest quarter.


Read more at Reuters.com Market News

Marathon to buy Western Oil Sands

(Reuters) - Marathon said it will pay about $3.6 billion in cash plus 34.3 million shares or securities exchangeable for shares. It will also assume about $650 million of debt.




Houston-based Marathon -- which also posted a higher-than-expected second quarter profit -- has been looking for a partner in the Canadian oil sands for two years.


Read more at Reuters.com Market News

Vallourec Q2 earnings ahead of expectations

(Reuters) - It added that a further weakening of the dollar would reduce
the contributions of non-European units in group results.




Read more at Reuters.com Market News

Canada's Dollar Pares Early Gain as U.S. Currency Rises on Confidence Data

(Bloomberg) -- Canada's dollar retreated from early
gains, trading near the monthly low, as the U.S. dollar
strengthened after a report showing consumer confidence in the
world's largest economy jumped to the highest in almost six
years.

Earlier, the currency benefited as equity markets worldwide
rebounded and a report showed Canada's economy expanded in May.
The currency is poised to record its first monthly loss since
January as investors sold commodity-linked currencies on
concerns that the U.S. subprime lending losses will spread,
slowing the global growth.


Read more at Bloomberg Currencies News

Marathon Agrees to Purchase Canada's Western Oil Sands for $5.46 Billion

(Bloomberg) -- Marathon Oil Corp., the biggest
refiner in the U.S. Midwest, agreed to buy Canada's Western Oil
Sands Inc. for C$5.8 billion ($5.46 billion), gaining access to
crude deposits that may be the largest outside of Saudi Arabia.

Owners of Calgary-based Western will get C$3.8 billion in
cash and C$2 billion of Marathon stock, the Houston-based buyer
said today in a statement. The maximum cash payment, C$35.50 a
share, is 4 percent higher than Western's close yesterday.


Read more at Bloomberg Energy News

Avon profit falls on costs

(Reuters) - Net income included pretax costs of about $82 million on initiatives including restructuring its operations and revamping its product offerings.




Excluding the charges, the company earned 38 cents per share, according to Reuters Estimates, missing analysts' expectations of 42 cents.


Read more at Reuters.com Hot Stocks News

Lead Advances in London as Stockpiles Decline; Tin Gains to 18-Year High

(Bloomberg) -- Lead advanced the most in more than
a month in London as the amount of available metal dropped,
fueling speculation supply will fall short of demand. Tin
climbed to the highest since 1989 and nickel had its biggest
rise in six weeks.

Inventories of lead tracked by the London Metal Exchange,
or LME, declined 3.7 percent to 37,575 tons, the exchange said
today in a daily report. That's the biggest daily drop since
Nov. 30. Prices for the metal, used mostly in car batteries,
jumped 86 percent this year and outpaced other industrial metals
as supplies from Australia were disrupted and demand improved.


Read more at Bloomberg Commodities News

Jones Apparel gets new offer from Fast Retailing

(Reuters) - Jones said it was in talks with Fast regarding its proposal. Jones would be required to pay a break-up fee of $22.7 million if it terminated its existing agreement to sell Barneys to Dubai-owned private equity firm Istithmar for $825 million.




Jones, which owns clothing, shoes and accessories brands such as Nine West, Gloria Vanderbilt and Jones New York, put itself up for sale last year but failed to find a buyer. It agreed to sell Barneys in June after several months of negotiations.


Read more at Reuters.com Bonds News

UPDATE 1-US July consumer confidence at 6-year high-Conf Bd

(Reuters) - The Conference Board said its index of consumer sentiment
rose to 112.6 in July, the highest reading since August 2001
and above an upwardly revised 105.3 in June.




"An improvement in business conditions and the job market
has lifted consumers' spirits in July," said Lynn Franco,
director of The Conference Board Consumer Research Center, in a
press release.


Read more at Reuters.com Bonds News

UPDATE 1-US Midwest business grew more slowly in July

(Reuters) - CHICAGO, July 31 - Business activity in the U.S.
Midwest expanded less than expected in July and at its slowest
pace since April, constrained by a drop in new orders even as
hiring expanded, a report showed on Tuesday.




The National Association of Purchasing Management-Chicago
business barometer fell to 53.4 from 60.2 in June.


Read more at Reuters.com Bonds News

UPDATE 1-UST to acquire Stag's Leap wine in joint venture

(Reuters) - Ste. Michelle will own 85 percent of the joint venture with
privately held Marchesi Antinori, a UST spokesman said. UST
already distributes Antinori wine in the United States.




The acquisition, while small, adds to UST's commitment to
its wine business, which represented about 16 percent of UST's
sales through the first half of 2007. Only four years ago, the
company was deciding whether to keep its wine business.


Read more at Reuters.com Bonds News

Barloworld to spin off, list coatings unit

(Reuters) - South African industrial group Barloworld will list its coatings unit on the Johannesburg Stock Exchange before the end of 2007, it said on Tuesday.

Barloworld, which markets Caterpillar earth-moving machines and Avis car hire, has said it plans to focus on its equipment, motor, materials handling and logistics divisions, and is disposing of its other units.


Read more at Reuters Africa

Egypt's indexes recover, OCI leads blue chips

(Reuters) - Egyptian shares rebounded on Tuesday after two consecutive sessions of declines, led by Orascom Construction Industries (OCI) as foreigners returned to buying, brokers said.

Mostafa Badra of National Securities said recovery in global markets drove foreigners back to buying mostly affecting OCI," he added.


Read more at Reuters Africa

UPDATE 1-Bre-X gold scam figure not guilty on all counts

(Reuters) - The Ontario Securities Commission, Canada's main market
regulator, accused him in 1999 of four counts each of insider
trading and misleading investors, saying he sold C$84 million
of Bre-X stock in 1996, months before
independent surveys showed the company's much-touted gold
deposit in Indonesia was worthless.




Shares of the company, which had soared to value the firm
at C$6 billion, collapsed to nothing, costing thousands of
investors their savings, and leaving ruined shareholders to
sell their stock certificates off as bitter souvenirs to a
public fascinated by the story.


Read more at Reuters.com Government Filings News

Ireland's Norkom buys U.S. Digital Harbor

(Reuters) - "The experience and domain expertise of Digital Harbor's
people are a perfect match for our own and will supplement our
position as experts in the field," Norkom Chief Executive Paul
Kerley said in a statement.




The acquisition would enhance earnings per share on an
adjusted basis in the financial year ending March 2009, he
added.


Read more at Reuters.com Mergers News