Sunday, May 6, 2007

Gold Little Changed Near Two-Week High on Weak Dollar; Tokyo Rises Limit

(Bloomberg) -- Gold was little changed in Asia after reaching a near two-week high as investors' concerns about the weak U.S. dollar supported the precious metal. Tokyo gold futures rose the daily limit.

Investors usually prefer holding gold to store value when the U.S. currency is declining. The dollar has fallen to a near 10-year low, according to a Federal Reserve index that weighs trade with 38 countries including China, Mexico, Canada and countries in Europe.


Read more at Bloomberg Commodities News

UPDATE 1-ABN rejects $24.5 bln RBS LaSalle bid, to hold vote

(Reuters) - The offer by RBS and its partners Santander for all of ABN, but ABN said the consortium's financing, as well as various regulatory, tax and legal issues carried "uncertainty and execution risks".


Read more at Reuters.com Mergers News

Indonesia's Rupiah Rises to One-Year High on Rates: World's Biggest Mover

(Bloomberg) -- Indonesia's rupiah rose to the strongest in almost a year, the biggest fluctuation of any currency today, after buying by foreign investors drove the benchmark stock index to a record. Ten-year bonds advanced for a 15th day.

The rupiah had its largest gain since July 2006 as the central bank may cut interest rates tomorrow to boost economic growth. The rupiah also rose after a U.S. government report on May 4 showed employers added the fewest jobs in more than two years.


Read more at Bloomberg Currencies News

Asian Stocks Advance to a Record, Paced by Japan Air on Profit; DBS Rises

(Bloomberg) -- Asian stocks climbed to a record, led by companies due to announce results this week, after Japan Airlines Corp. said operating profit rose to an all-time high.

Japan Air, Asia's biggest carrier by sales, jumped the most in a month. Tokyo Electron Ltd., the world's No. 2 supplier of chip-making equipment, had its largest gain in three weeks after a newspaper reported the company's profit this year will climb to a record.


Read more at Bloomberg Stocks News

Daimler, Deutsche Telekom, Escada and Volkswagen: German Equity Preview

(Bloomberg) -- The following stocks may rise or fall in German markets. Stock symbols are in parentheses after the company names and prices are from the Xetra close unless otherwise stated.

Germany's X-DAX Index added 0.5 percent to 7518.24. The index provides an estimate of the DAX Index, based on trading in DAX futures after the Xetra electronic market closes. The DAX increased 0.5 percent to 7516.76 on the Xetra electronic-trading system.


Read more at Bloomberg Stocks News

Asian Stocks Advance to a Record; Tokyo Electron Gains on Earnings Report

(Bloomberg) -- Asian stocks climbed to a record, led by Japanese companies that are set to announce earnings this week, after a newspaper report said Tokyo Electron Ltd.'s profits this year will climb to an all-time high.

Japan's Topix index was poised for the biggest advance since March as it resumed trading after a two-day holiday last week, when benchmarks in Australia, Hong Kong, South Korea, Singapore, Malaysia and Indonesia set new highs.


Read more at Bloomberg Stocks News

RPT-Sarkozy win may boost merger-driven Paris bourse

(Reuters) - PARIS, May 7 - Conservative Nicolas Sarkozy's comfortable election win looked set to appeal to reform-hungry French markets on Monday, but investors said the presidency would take a backseat to burgeoning merger activity.

"French CAC-4O leaders were for Sarkozy. His victory had been widely expected by the market," said Francois Garnier, fund manager at HMG Finance in Paris.


Read more at Reuters.com Bonds News

Malaysia to Sell 20-Year Debt at Record Low Yield This Month, Survey Says

(Bloomberg) -- Malaysia will reduce its borrowing cost at a 20-year bond sale this month to the lowest since it started selling its longest-maturity debt in 2005, a Bloomberg News survey shows.

The government will sell 2.75 billion ringgit ($804 million) of bonds due in 2027 at an auction due between May 7 and May 31, according to the median forecast of six principal dealers who must bid at treasury debt sales. The securities may be sold at a yield of 3.643 percent, the survey showed. The central bank typically announces the size and date of its sale a week in advance.


Read more at Bloomberg Bonds News

Dollar Drops for a Second Day Against Yen on Slowing U.S. Economic Growth

(Bloomberg) -- The dollar fell for a second day against the yen on speculation reports this week will show a dip in sales at U.S. wholesalers and retailers, adding to signs the world's largest economy is slowing.

A weakening economy may fuel bets the Federal Reserve will lower interest rates this year, undermining support for the dollar. The U.S. currency on May 4 snapped a three-day rally against the yen after a government report showed U.S. employers added the fewest jobs in more than two years.


Read more at Bloomberg Currencies News

Taiwan's 10-Year Bonds Rise on Slower Inflation; Currency Little Changed

(Bloomberg) -- Taiwan's 10-year government bonds advanced after a report last week showed inflation slowed.

Weaker inflation reduces the need for the central bank to further tighten money supply, said Ernest Lee of Mega Securities Co., leaving more funds in the banking system and helping bonds gain. Consumer prices in April rose 0.67 percent from a year earlier, after climbing a revised 0.84 percent in March, the statistics bureau in Taipei said May 4 after the market closed.


Read more at Bloomberg Bonds News

Japan's Shares Climb, Led by Canon, on U.S. Interest-Rate Cut Expectations

(Bloomberg) -- Japanese stocks advanced, led by exporters on speculation that slowing U.S. jobs growth and wage increases will prompt the Federal Reserve to cut borrowing costs in Japan's biggest overseas market.

The Topix index headed for the biggest gain since March 8 with Canon Inc. jumping 3.1 percent and Honda Motor Co. climbing 1.5 percent.


Read more at Bloomberg Stocks News

Australian Mining Stocks Gain, Led by BHP; Santos Drops on Lower Crude Oil

(Bloomberg) -- Australian mining stocks rose, led by BHP Billiton Ltd. and Minara Resources Ltd. after copper prices climbed and nickel jumped to a record high.

``Mining companies will eventually get re-rated by the market if metals prices manage to stay close to these levels because it will demonstrate that their earnings are more sustainable than the market has been giving them credit for,'' said Adnan Kucukalic, a Sydney-based strategist at Credit Suisse Group.


Read more at Bloomberg Stocks News

UPDATE 1-News Corp sells 7.5 pct stake in Fairfax

(Reuters) - "Yes, we have sold all our shares in Fairfax," a Sydney-based News Corp spokesman said.

A parcel of 75 million shares valued at A$381 million was sold to institutional investors by Goldman Sachs JBWere earlier Monday at A$5.07 per share, sources familiar with the transaction told Reuters.


Read more at Reuters.com Mergers News

JGBs fall as Tokyo shares surge, eye on 10-year sale

(Reuters) - The Nikkei share average of 10-year bonds on Tuesday. At current market levels, the coupon could be set at 1.6 percent, the lowest since a 1.6 percent issue was offered in March 2006.


Read more at Reuters.com Bonds News

Merrill Lynch, Franklin, SBI Buy India Debt, Anticipating Slower Inflation

(Bloomberg) -- Merrill Lynch & Co. and Franklin Resources Inc. are increasing purchases of Indian government debt, predicting the central bank will end 2 1/2-years of interest-rate increases.

DSP Merrill Lynch Fund Managers Ltd., a unit of New York- based Merrill, last week raised 2.8 billion rupees ($68 million) for its first Indian bond fund since 2002. Franklin Templeton India, part of the San Mateo, California-based money manager, doubled holdings of benchmark debt in one of its funds in March.


Read more at Bloomberg Bonds News

Dollar slips vs. yen in wake of soft jobs data

(Reuters) - The data helped temper a rally in the dollar, which had gained some reprieve last week after data showed strength in the U.S. manufacturing and services sectors.

Such data had helped the dollar pull away from record lows struck against the euro in late April.


Read more at Reuters.com Hot Stocks News

Mexican Peso Options Are a Good Way to Bet on Rally, Lehman Brothers Says

(Bloomberg) -- Investors should use options to capture Mexican peso gains against the dollar amid expectations for fiscal reforms, according to Lehman Brothers Holdings Inc.

Mexico's central bank unexpectedly lifted the overnight benchmark rate to 7.25 percent on April 27, surprising all 16 economists surveyed by Bloomberg, who predicted the rate would be left at 7 percent. The peso has appreciated about 0.6 percent since the rate increase, trading at 10.8958 per dollar on May 4.


Read more at Bloomberg Currencies News

Sarkozy win may boost merger-driven Paris bourse

(Reuters) - "French CAC-4O leaders were for Sarkozy. His victory had been widely expected by the market," said Francois Garner, fund manager at HMG Finance in Paris.

"It will not have a significant impact on the CAC-40 stock market, which has been mainly rising on the back of merger and acquisition activity, but his victory should satisfy the market," he added.


Read more at Reuters.com Bonds News

Aeon Mall, Idemitsu Kosan Are Among Japanese Stocks Added to MSCI Indexes

(Bloomberg) -- The following stocks may be active when Japan's markets open for trading today. They were added or deleted from MSCI Barra's equity benchmarks, according to an annual review announcement on the index provider's Web site on May 3. Japan's markets were closed for a holiday on May 4.

Shares of nine Japanese companies were chosen for inclusion, replacing nine companies which will be dropped from the indexes.


Read more at Bloomberg Stocks News

Aiful, Fujitsu, Honda, Japan Airlines, Orix, TDK: Japanese Equity Preview

(Bloomberg) -- The following stocks may move in Japanese markets on May 7. Markets will be shut for national holidays tomorrow and May 4. Prices are as of the close of trading. Statements were released after the close. Stock symbols are in parentheses.

Aiful Corp. (8515 JT): Japan's largest consumer lender by assets had a full-year loss as provisions swelled due to changes in accounting rules. Aiful had a net loss of 411.2 billion yen ($3.4 billion) in the year ended March 31, compared with a profit of 65.8 billion yen a year earlier, according to a preliminary statement. It had forecast a 185.5 billion yen loss. Aiful gained 150 yen, or 4.9 percent, to 3,200.


Read more at Bloomberg Stocks News

Bank Indonesia May Resume Cutting Interest Rates After Inflation Slowed

(Bloomberg) -- Indonesia's central bank will probably resume cutting its benchmark interest rate after inflation unexpectedly slowed last month and the rupiah surged.

Bank Indonesia Governor Burhanuddin Abdullah will reduce the rate used as a reference for bill sales by a quarter point to 8.75 percent, the lowest since August 2005, according to 16 of 19 economists surveyed by Bloomberg News. The central bank decision is due tomorrow in Jakarta.


Read more at Bloomberg Bonds News

WellPoint shares could hit $100: paper

(Reuters) - WellPoint can continue to deliver annual earnings growth of 15 percent or more, even in a slower-growth economy, says R. Hutchings Vernon of Alex Brown Investment Management, according to the article.

Wellpoint closed up 0.27 percent, or 22 cents, at $81.43 on the New York Stock Exchange on Friday.


Read more at Reuters.com Hot Stocks News

Hamilton Sundstrand workers approve new contract

(Reuters) - The new contract includes an annual wage increase of 3.5 percent, improvements to the workers pension plan and a ratification bonus, another company spokesman told Reuters.

About 1,100 workers at the Windsor Locks, Connecticut-based unit represented by the International Association of Machinists were covered by a contract due to expire at midnight on Sunday.


Read more at Reuters.com Bonds News

India, Indonesia, Malaysia, South Korea, Taiwan; Asia Local Bond Preview

(Bloomberg) -- The following events and economic reports may influence trading in Asian local-currency bonds today. Yields are from the previous session.

China: Financial markets are closed today for a public holiday.


Read more at Bloomberg Bonds News

Conrad Black trial readies for key witness Radler

(Reuters) - The trial, which is entering its eighth week, will reach a crescendo when Radler, who was once operations chief at Hollinger International Inc., takes the witness stand some time on Monday and then faces what is sure to be withering cross-examination from each of the four defendants' lawyers.

Federal prosecutors get first crack and will try to paint Radler, 64, as Black's co-conspirator in skimming $60 million from Hollinger as the two dismantled the Chicago-based company they had built into one of the world's largest newspaper publishers.


Read more at Reuters.com Business News

Russian oil contractor abducted in Nigeria

(Reuters) - Gunmen have kidnapped a Russian woman who works as an oil industry contractor in Nigeria's main oil city of Port Harcourt, the woman's employer said on Sunday.

The latest abduction brings to 28 the number of foreign workers seized in the world's eighth largest oil exporter in six attacks in five days. Eight have been released.


Read more at Reuters Africa