Corporate Bond Risk Soars to 2-Year High on Bear Stearns Hedge Fund Losses

(Bloomberg) -- The risk of owning corporate bonds
soared to the highest in two years in Europe after Bear Stearns
Cos. said investors in two U.S. subprime hedge funds will get
little or no money back, credit-default swap prices show.

Contracts on 10 million euros ($13.8 million) of debt
included in Europe's iTraxx Crossover Series 7 Index jumped as
much as 36,000 euros to 324,000 euros, according to Deutsche
Bank AG. The risk premium is the highest since 2005 when General
Motors Corp. and Ford Motor Co. had their ratings cut to high
risk, high-yield.


Read more at Bloomberg Bonds News

Vattenfall's Brunsbuettel Nuclear Reactors Is Halted Output for Cleaning

(Bloomberg) -- Vattenfall Europe AG, Germany's fourth-
largest utility, halted its Brunsbuettel nuclear plant to allow it
to clean an oil-circulation system.

Output was halted early today and will remain cut for eight to
10 hours, the Berlin-based company said today in an e-mailed
statement.


Read more at Bloomberg Energy News

Persian Gulf Oil-Tanker Rates May Stay Near Three-Month Low on Vessel Glut

(Bloomberg) -- The cost of shipping crude from the
Middle East to Asia, the world's busiest oil-tanker route, may
stay near a three-month low as an oversupply of ships competing
for cargoes negates a probable increase in demand.

Saudi Arabia, Kuwait and the United Arab Emirates all told
oil companies this week when they must have tankers in place to
collect crude from the region's ports next month, said Mathieu
Philippe, a shipbroker for Paris-based Barry Rogliano Salles. Any
resulting jump in demand may not be enough boost rates for the
next several days because of a glut of tankers, he said.


Read more at Bloomberg Energy News

Russia's Annual June Industrial Production Accelerates to 10.9 Percent

(Bloomberg) -- Russian industrial production grew an
annual 10.9 percent in June, the fastest pace in two-and-a-half
years, led by steam turbines, tractor-trailers and television
sets.

Growth accelerated from 6.7 percent in the previous month,
the Moscow-based Federal Statistics Service said in an e-mailed
statement today. The median forecast of 16 economists was for 6.6
percent. Output grew 12.5 percent in November of 2004.


Read more at Bloomberg Emerging Markets News

U.S. Stock-Index Futures Fall; Bear Stearns, Intel, IBM Slide in Europe

(Bloomberg) -- U.S. stock-index futures dropped
after Bear Stearns Cos. told investors there's little value left
in its two failed hedge funds and Intel Corp. and Yahoo! Inc.
said competition is reducing earnings.

Bear Stearns, the second-biggest underwriter of mortgage-
backed securities, retreated in Europe. Intel, the world's
largest computer-chip maker, and Yahoo, the most-visited U.S. Web
site, also fell in Europe.


Read more at Bloomberg Stocks News

FTSE down on US subprime woes; Sainsbury rises

(Reuters) - Britain's top share index fell 0.7 percent early on Wednesday on rising concerns over risky U.S. subprime mortgages, but Sainsbury rose after receiving a bid approach.

At 0735 GMT, the FTSE 100 was down 48.2 points, or 0.72 percent at 6,610.9, after slipping 0.6 percent in the previous session on concerns of higher UK interest rates. European shares also fell.


Read more at Reuters Africa

Philippine Bonds Gain as Government Sells Assets; Peso Ends Four-Day Rally

(Bloomberg) -- Philippine bonds rose after the
government sold part of its stake in Philippine National Bank,
raising speculation funds from privatization of state assets
will be enough to offset declining revenue.

``The government may not need to borrow more,'' which may
cause yields to fall, said Yvette Marquez, who helps manage the
equivalent of $5.3 billion of assets at BPI Asset Management in
Manila. ``The sale will help the government offset their
problems with their collection targets.''


Read more at Bloomberg Bonds News