(Reuters) -
The Inspector General for the U.S.
commodity-futures regulator has officially begun an
investigation into an inter-agency report on commodity markets,
the Wall Street Journal said citing a person close to the
matter.

Earlier in the month four U.S. senators had sent a letter
to Inspector General Roy Lavik questioning the Commodity
Futures Trading Commission's role in an inter-agency task force
interim report that said "supply and demand factors" were
responsible for the surge in fuel prices.

The interim task-force report, which came out just days
ahead of a Senate vote on the bill, said skyrocketing energy
prices were the result of supply-and-demand fundamentals and
not speculation.

The senators, including senior members of the Energy and
Natural Resources Committee, allege that the CFTC knowingly
included "seriously flawed" data and the timing was
"suspicious."

The Inspector General was taking the issue "very seriously"
and was conducting interviews in a number of CFTC offices, the
paper said citing a person close to the matter.

No one at CFTC was immediately available for comment.

(Reporting by Sweta Singh in Bangalore; Editing by Greg
Mahlich)

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HONG KONG (Reuters) -
Shares in Esprit Holdings, the
world's No. 5 fashion retailer, plunged nearly a fifth on
Thursday to their lowest in two years after the firm missed
earnings forecasts and warned investors of tougher times ahead.

Esprit (0330.HK) fell 19.2 percent to end Thursday morning
at HK$64.95, a level last seen in September 2006. It has fallen
more than 30 percent so far in 2008, walloped by fears that
slowing economies in Europe -- which accounts for more than
four-fifths of its revenue -- will severely damage is bottom
line.

"This is the first time I'm sounding a note of caution
about the future. I am afraid this time ... we see a kind of
'consumer strike' now with people refusing to spend money,"
Esprit chairman and CEO Heinz Krogner told a post-results news
briefing on Wednesday.

Krogner also ruled out making an acquisition for now, after
speculation had swirled for over a year that the cash-rich firm
was on the verge of buying an international brand, because of
lingering uncertainty over the global economic outlook.

Esprit, which competes with Hennes & Mauritz (HMb.ST),
Benetton (BNG.MI) and Gap (GPS.N), had cash reserves of HK$6.5
billion ($833 million) as of end-June and a shareholder mandate
to buy back over 121 million shares.

In July, the company managed to halt a sharp slump in its
share price by buying back over 2 million shares.

"I'm not going to say we will buy back more shares, that
will only encourage speculators. But we think our shares are
worth a lot and we'll do our best to preserve shareholder
interest," Krogner said, without elaborating.

GLOOMY OVERHANG

On Thursday, Merrill Lynch downgraded Esprit to
underperform from buy after the fashion retailer posted a 12.5
percent increase in second-half net profit to HK$3.15 billion,
lagging forecasts.

The U.S. investment bank also cut its earnings estimates on
Esprit by 15 to 16 percent for 2009 to 2010, and lowered its
target price on the firm's stock to HK$75.8 from HK$105.5 per
share.

"For the first time, the company has dropped its standard
earnings guidance due to the tough environment, which is a
major departure from their usual attitude that the macro is no
excuse," Merrill Lynch said in its report.

Esprit derives half its turnover from Germany alone.

German business and consumer morale hit multi-year lows as
Europe's biggest economy shrank in the second quarter, raising
the specter of recession.

British clothing retailer Next Plc (NXT.L) last month
posted a 6 percent fall in first-half underlying sales, in line
with forecasts, and said it expected a similar decline in the
second half.

And rival Marks & Spencer (MKS.L) posted a 6.2 percent drop
in like-for-like clothing and homeware sales in the 13 weeks to
June 28.

(US$1=HK$7.8)

(Reporting by Parvathy Ullatil; editing by Jonathan
Hopfner)

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(Reuters) -
Struggling tabloid publisher American Media Inc
has secured the backing of many of its creditors for a new bond
offering to refinance $570 million in existing debt, the Wall
Street Journal said.

The backing of creditors comes as a ray of hope for the
publisher of the National Enquirer and Star magazines, which
has been hit hard by a relentless decline in ad sales and
burdened by more than $1 billion in debt.

Under the terms of the bond offering, holders will be able
to exchange existing debt for discounted notes that pay higher
interest and warrants for up to a 20 percent stake in the
company.

The exchange offer gives American Media enough running room
to continue improving its profitability, the paper said citing
sources familiar with Thomas Lee Partners, a private equity
firm which owns the publisher along with Evercore Partners.

American Media had earlier said if it couldn't refinance at
least $389.5 million in debt by February 1, 2009, it would have
to liquidate assets or seek protection from creditors.

"This transaction, if it's successful, will take the
pressure off them," said John Page, a senior analyst at Moody's
Investors Service.

(Reporting by Sweta Singh in Bangalore; Editing by Kim
Coghill)

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