US Fed rate rollback likely by mid 2007: S&P
Mumbai: Global credit rating agency Standard and Poor's said in its latest report that central banks in US, Japan and Europe are likely to further hike their benchmark interest rates during their upcoming monetary policy meetings. The report added that the US Federal Reserve is expected to hike its benchmark rate once again, most likely at its next meeting on August 8, but might cut the funds rate back to 5 per cent level by mid-2007.

The US central bank raised its benchmark rate at its 17th consecutive Federal Open Market Committee (FOMC) meeting earlier this month to 5.25 per cent. Another hike of 25 basis points might hike the rate to 5.5 per cent. Both the Bank of Japan and European Central Bank are also likely to announce rate hikes at their upcoming meetings, S&P said.

The BoJ is holding a two-day meeting - today and tomorrow - after which it might decide on a possible change in its zero-interest rate policy.
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Sony Music and BMG merger annulled
London: The European Union's approval of a 2004 merger between Sony Music and BMG has been annulled by a European court. The unprecedented ruling by the European Court of First Instance also cast doubt on the viability of combining EMI Group and Warner Music, which are trying to buy each other out.

The European Commission said it would have to re-examine the merger that created Sony BMG, a 50-50 joint venture between Japanese electronics giant Sony Corp. and German media group Bertelsmann AG. It can also appeal the ruling.

The decision means Sony Music and BMG, home to such artists as Bruce Springsteen and Kelly Clarkson, would have to submit its merger plan again to the EC, which would then revisit it taking into account updated industry information.
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