Eastern U.S. to Sizzle in 100-Degree Heat as Fires Menace Western States

(Bloomberg) -- The eastern U.S. will sizzle in
triple-digit heat today as western states stay on alert for
lightning-caused wildfires, forecasters said. Texas faces more
soaking rain.

An excessive-heat warning was issued for noon to 6 p.m.
local time for New Jersey, southeastern Pennsylvania and
Delaware, where increasing humidity and temperatures may boost
the heat index to as high as 105 degrees Fahrenheit (41
Celsius).


Read more at Bloomberg Energy News

U.S. Economy's Rebound May Be Bumpier Than Fed Expects as Credit Tightens

(Bloomberg) -- The U.S. economy's take-off from a
near standstill in the first quarter may prove bumpier than the
Federal Reserve and many on Wall Street expect as tighter credit
acts as a headwind to growth.

What started as a financing squeeze in the subprime-
mortgage market now threatens other parts of the economy.
Borrowing costs for companies are climbing as banks and
investors demand more for their money. Consumers feel the pinch
from rising interest rates and sagging house prices.


Read more at Bloomberg Currencies News

Canada's Dodge May Raise Rates, Ignoring Pleas From Exporters and Unions

(Bloomberg) -- Bank of Canada Governor David Dodge
may raise interest rates for the first time since May 2006, as
exporters and unions warn an increase will send the currency to
parity with the U.S. dollar and cost jobs.

The central bank will lift the overnight rate by a quarter-
point to 4.5 percent tomorrow, according to all but one of 29
economists surveyed by Bloomberg News. Speculation grew after
the last decision May 29, when policy makers said a tightening
might be needed ``in the near term,'' citing ``excess demand''
in the world's eighth-biggest economy.


Read more at Bloomberg Currencies News

Australia's IAG in JV talks with India's HDFC-paper

(Reuters) - IAG, Australia's top car and home insurer, is in "advanced"
talks to buy the stake, the newspaper said, citing unnamed
sources.




Other "strong contenders" were U.S. insurer Travelers
and Munich Re's insurance unit ERGO
, the paper said, adding HDFC expected to receive a
premium for the stake.


Read more at Reuters.com Mergers News

Taiwan's Export Growth Probably Accelerated in June on Demand From China

(Bloomberg) -- Taiwan's export growth probably
accelerated in June on increased shipments to China, where
manufacturing was the strongest in more than two years.

Overseas sales rose 5.5 percent from a year earlier, faster
than May's 3.5 percent increase, according to the median
estimate of 11 economists surveyed by the Bloomberg News. The
Ministry of Finance will announce trade numbers at 4 p.m. today
in Taipei.


Read more at Bloomberg Emerging Markets News

Korean Won Falls on Speculation Central Bank Will Stem Gains as Yen Drops

(Bloomberg) -- The South Korean won dropped on
speculation traders were betting the central bank will sell the
currency to keep the price of exports from rising.

The won has strengthened 1.5 percent over the past month
while the yen has weakened by the same magnitude, putting Korean
export companies at a disadvantage versus their Japanese rivals.
The finance ministry and the Bank of Korea last week warned they
will take action in the market to stem excessive gains after the
currency reached the highest in a decade against the yen.


Read more at Bloomberg Currencies News

Japan's Nikkei 225 Average, Topix Rise; Honda Motor, Sony Lead Advance

(Bloomberg) -- Japan's Nikkei 225 Stock Average rose
77.57, or 0.4 percent, to 18,218.51 as of 9:05 a.m. in Tokyo. The
broader Topix index added 6.73, or 0.4 percent , to 1786.40.

Honda Motor Co. and Sony Corp. led the advances.


Read more at Bloomberg Stocks News

Yuan's Fastest Gains Fail to Quiet U.S. Lawmakers as Trade Deficit Widens

(Bloomberg) -- China's yuan is rising at the fastest
pace since the nation's central bank abandoned its link to the
dollar in 2005, and U.S. lawmakers still aren't satisfied.

The yuan appreciated 1.5 percent last quarter as prices for
items such as food, rent and transportation increased the most in
27 months. Goldman Sachs Group Inc. and JPMorgan Chase & Co.
predict that inflation will force America's second-largest
trading partner to let its currency strengthen at least 7.5
percent in the next year, more than twice as much as in 2006.


Read more at Bloomberg Currencies News

Crude Oil Trades Near a 10-Month High on Nigeria, North Sea Supply Risks

(Bloomberg) -- Crude oil was little changed near a
10-month high on concern unrest in Nigeria and maintenance of a
North Sea oil field will reduce supplies.

The main militant group in Nigeria's oil-producing Niger
River delta region condemned the kidnapping of a 3-year-old
British girl. Brent oil, produced in the North Sea, is also
rising because of planned maintenance at a field in the region.
Refineries in California, Texas and Kansas have shut or slowed
operations this week.


Read more at Bloomberg Emerging Markets News

Bear Market Tightens Grip on Treasuries as Jobs, Inflation Trump Housing

(Bloomberg) -- The bear market in U.S. Treasuries
is just getting started as investors turn their attention to
the strengthening labor market and faster inflation instead of
the decline in home prices.

That's the conclusion of economists at Lehman Brothers
Holdings Inc., Morgan Stanley and RBS Greenwich Capital. They
estimate 10-year government notes will return 1.28 percent this
year, not even enough to cover inflation. The performance would
be the worst since 1999, when they lost 8.25 percent, Merrill
Lynch & Co. index data show.


Read more at Bloomberg Bonds News

Companies earnings back in Asia focus

(Reuters) - Corporate earnings and outlooks from top Asian and U.S. firms in coming weeks are set to shape the trading landscape for Asian stocks, which along with global shares hit record highs in the first week of July.

Samsung Electronics, the world's top memory chip maker, Infosys Technologies Ltd., India's No. 2 software exporter, and Singapore Press Holdings, Southeast Asia's biggest newspaper publisher, are among major firms due to announce results this week.


Read more at Reuters Africa