RPT-TREASURIES-Dow surge fuels bonds' worst week in nearly a yr

(Reuters) - NEW YORK, May 18 - U.S. Treasury debt prices took
a spill on Friday, elevating benchmark yields to their highest
in three months as yet another record-setting session on Wall
Street diverted investments away from bonds.




It was a grueling week for bond bulls, with the Dow
climbing to new heights and data depicting a rather benign
economic outlook.


Read more at Reuters.com Bonds News

Copper Futures Rebound in New York as U.S. Consumer Confidence Gains

(Bloomberg) -- Copper futures gained in New York,
erasing an earlier slide, after a report showed that U.S. consumer
confidence unexpectedly rose in May.

The price of copper tumbled as much as 2.3 percent before
rebounding. The metal still plunged 7.8 percent this week, the most
in three months, on speculation demand in China, the biggest
consumer, will slow. The Reuters/University of Michigan's
preliminary index of consumer sentiment increased to 88.7 from
87.1 in April.


Read more at Bloomberg Commodities News

Nymex Natural Gas Declines as Ample Supplies Ease Warm Weather Concerns

(Bloomberg) -- Natural gas in New York fell, erasing
earlier gains, as ample supplies offset concerns over potential
supply disruptions and a forecast for hot summer weather

Inventory levels are sufficient to meet demand, which will
push prices lower, said David Pursell, research analyst with
Pickering Energy Partners Inc. in Houston.


Read more at Bloomberg Energy News

Crude Oil Is Little Changed Amid Speculation Refinery Demand Will Climb

(Bloomberg) -- Crude oil in New York was little
changed amid signs that U.S. refineries will increase operating
rates as they try to replenish gasoline stockpiles.

Refineries operated at 89.5 percent of capacity last week
the third straight weekly gain, according to the Energy
Department. The profit margin for turning oil into fuels rose to
the highest since at least 1989 yesterday, based on closing
futures prices. Valero Energy Corp., ConocoPhillips and Murphy
Oil Corp. have shut units for repairs this week.


Read more at Bloomberg Commodities News

Democrats in Congress Urge Bush Not to Weaken the G-8 Climate Declaration

(Bloomberg) -- Democratic leaders in Congress are
urging President George W. Bush not to weaken a Group of Eight
declaration on climate change.

The Bush administration wants the G-8 to scrap some targets
for cutting greenhouse-gas emissions and remove language
stressing the need for urgent action from the group's proposed
statement on climate change, according to a draft copy of the
statement.


Read more at Bloomberg Energy News

Coffee Falls for First Day This Week in New York as Brazil Skirts Frost

(Bloomberg) -- Coffee in New York fell for the first
time this week as the risk of frost diminished in Brazil, the
world's largest producer.

Favorable coffee-growing weather is expected in Sao Paulo
and Minas Gerais states, Massachusetts-based forecaster
Meteorologix LLC said. Coffee rose 3.1 percent yesterday on
forecasts for a likely frost that might damage crops.


Read more at Bloomberg Commodities News

Saudi Basic Will Buy GE's Plastics Unit for About $11 Billion, People Say

(Bloomberg) -- Saudi Basic Industries Corp., the
world's biggest chemical company by market value, will buy
General Electric Co.'s plastics unit for about $11 billion, two
people familiar with the negotiations said.

The acquisition is the largest ever for the Persian Gulf
and the price is above the $8 billion to $10 billion estimated
by some investors. Both people requested anonymity because a
decision hasn't been made public.


Read more at Bloomberg Energy News

European Stocks Climb the Most in Four Weeks, Led by Cairn Energy, Cadbury

(Bloomberg) -- European stocks climbed the most in
four weeks as takeover speculation swept through the energy,
banking, food and electrical components industries.

Cairn Energy Plc rose after Citigroup Inc. advised buying
the shares, citing a possible bid. Cadbury Schweppes Plc jumped
to a record after the Daily Telegraph said private-equity groups
may buy the company's U.S. drinks unit. Legrand SA advanced as
investors bet ABB Ltd. will approach the company.


Read more at Bloomberg Stocks News

Corn Rises in Chicago After Report Shows Improved Demand For U.S. Exports

(Bloomberg) -- Corn futures in Chicago rose to the
highest in almost two weeks after a U.S. government report showed
increased overseas demand for the grain.

Export sales of U.S. corn rose to 1.514 million metric tons
in the week ended May 10, more than three times the previous
week, the U.S. Department of Agriculture said yesterday. Sales
for delivery before Aug. 31 are up 8.8 percent from a year
earlier. Cash corn prices in Illinois have jumped 7.5 percent
since April 1, topping the 5.1 percent rally in Chicago futures.


Read more at Bloomberg Commodities News

UPDATE 1-Wolfowitz row seen hurting Africa anti-graft drive

(Reuters) - DAKAR, May 18 - The World Bank has roared against
corruption in Africa for years but its credibility has been
badly mauled by the favouritism scandal that sent the bank's
U.S. chief Paul Wolfowitz limping off into retirement.




Governments in Africa, whose reputation for corruption goes
hand in hand with its status as the world's poorest continent,
had grown used to being lectured by World Bank delegations, some
headed by "Wolfie" himself, about good governance and
transparency.


Read more at Reuters.com Bonds News

European Bonds Record Biggest Drop in Five Weeks as Growth Quickens

(Bloomberg) -- European bonds posted the biggest
weekly decline in five weeks after reports showed European
economies expanded faster than expected in the first quarter.

The gap in yields between 10-year European notes and U.S.
Treasuries narrowed to the least in 2 1/2 years this week as
economic growth in the euro region accelerated and U.S. expansion
slowed. European two-year yields also traded near the highest in
almost five years after European Central Bank President Jean-
Claude Trichet signaled higher interest rates.


Read more at Bloomberg Bonds News

UPDATE 2-Indian Tata Motors profit up 26 pct, beats forecasts

(Reuters) - The New York-listed company in its fiscal
fourth-quarter to March, on net sales which grew 20.3 percent to
82.67 billion.




A Reuters poll of 11 analysts had forecast net profit at
5.51 billion rupees on sales of 80.36 billion.


Read more at Reuters.com Market News

NSTAR Electric files shelf for up to $400 mln in debt securities

(Reuters) - Under a shelf registration filed with the U.S. Securities
and Exchange Commission, a company may sell securities in one
or more separate offerings with the size, price and terms to be
determined at the time of sale.





Read more at Reuters.com Government Filings News

Colombia to Freeze Public Debt at Dec. 2006 Level, President Uribe Says

(Bloomberg) -- Colombia plans to freeze its public
debt at the same level it had in December as part of its plan to
reduce spending, President Alvaro Uribe said late last night.

Colombia's public debt fell to between 30 percent and 32
percent of gross domestic product in December 2006 from 50
percent four years ago, Uribe said at a meeting at the
University of Los Andes, according to the presidential Web site.


Read more at Bloomberg Bonds News

Canadian Stocks Decline From Record as Alcan, Financials Lead Retreat

(Bloomberg) -- Canadian stocks fell from a record,
paced by declines for raw-material producers including Alcan Inc.
and banks such as Bank of Montreal.

The Standard & Poor's/TSX Composite Index slipped 19.85, or
0.1 percent, to 14,080.86 as of 10:28 a.m. The benchmark index
notched its seventh record this month yesterday and has still
gained 0.4 percent this week so far.


Read more at Bloomberg Stocks News

U.S. Stocks Rise on Takeovers; aQuantive, General Electric, Intel Advance

(Bloomberg) -- U.S. stocks rose after Microsoft Corp.
agreed to buy aQuantive Inc. for $6 billion, extending this year's
record pace of mergers and acquisitions.

AQuantive surged after Microsoft, the world's biggest
software maker, said it will buy the company to expand online
advertising services. General Electric Co. rose on expectations
the world's second-biggest company by market value will sell its
plastics unit to Saudi Basic Industries Corp. for about $11
billion.


Read more at Bloomberg Stocks News

Nymex Gas Rises on Buying by Power Generators Stocking Up for the Summer

(Bloomberg) -- Natural gas in New York rose as power
generators locked in supplies in anticipation that hot summer
weather will increase electricity demand to run air conditioners.

Most of the U.S. is forecast to have warmer-than-average
temperatures from June to August, the Climate Prediction Center
said yesterday. La Nina conditions may affect U.S. weather
patterns later this year, the center said. A La Nina occurs when
ocean temperatures cool below normal, and it can alter conditions
around the globe.


Read more at Bloomberg Energy News

Crude Oil Rises on Expectations of Increased Demand From U.S. Refineries

(Bloomberg) -- Crude oil rose amid signs that U.S.
refineries will increase operating rates as they try to replenish
gasoline stockpiles.

Refineries operated at 89.5 percent of capacity last week
the third straight weekly gain, according to the Energy
Department. The profit margin for turning oil into fuels rose to
the highest since at least 1989 yesterday, based on closing
futures prices. Valero Energy Corp., ConocoPhillips and Murphy
Oil Corp. have shut units for repairs this week.


Read more at Bloomberg Energy News

Treasuries Little Changed as China Widens Yuan Trading Band, Raises Rates

(Bloomberg) -- Treasuries were little changed, with
the two-year note's yield trading at a two-month high, as China
increased the amount its currency can appreciate.

A stronger yuan may reduce Chinese exports to the U.S. and
slow the accumulation of dollar reserves that can be invested in
Treasuries. China is the second-largest foreign holder of U.S.
government debt, with $420.2 billion at the end of March.


Read more at Bloomberg Bonds News

UPDATE 1-STATS ChipPAC says Temasek acquired 83 pct of firm

(Reuters) - Singapore state holding company Temasek launched a $1.6
billion bid in March for the 64.4 percent of STATS ChipPAC that
it did not already own. The deadline for acceptances was the
close of business in Singapore on Friday.




"Temasek has been a long term shareholder of STATS ChipPAC
since 1995. We are happy to have succeeded in increasing our
stake in the company," Temasek said in a separate statement.


Read more at Reuters.com Mergers News

Canada's Dollar Reaches Highest in Almost 30 Years on Economy's Strength

(Bloomberg) -- Canada's dollar climbed to the highest
level in almost 30 years as the nation's economy showed signs of
strength and prices of its main commodity exports surged.

The Canadian dollar is the second-best performer this year
among most-actively traded currencies as the growing economy
fueled speculation the Bank of Canada will raise interest rates
in 2007.


Read more at Bloomberg Currencies News

UPDATE 1-PPL to sell El Salvadoran unit for $180 mln

(Reuters) - Ashmore Energy International will acquire 86.4 percent of
in PPL Corp.'s San Salvador-based unit through a stock purchase
agreement. The deal is expected to close within 30 days.




PPL Corp. expects to record an aftertax gain of between $88
million and $93 million, or 22 cents to 23 cents per share, in
the second quarter.


Read more at Reuters.com Mergers News

Carbon Emission Permits Advance to Highest Since June on Delivery Concern

(Bloomberg) -- European Union carbon dioxide permits
rose to their highest since June on concern emission-reduction
projects may generate fewer credits than expected through 2012,
curbing supply.

Emission permits for 2008 climbed 35 cents, or 1.6 percent, to
21.75 euros ($29) a metric ton, according to prices from the broker
Spectron Group Plc on Bloomberg at 7:46 a.m. in London. That's
their highest since June 2.


Read more at Bloomberg Energy News

Dr. Reddy's posts strong Q4 net on generics sales

(Reuters) - MUMBAI, May 18 - Indian drug maker Dr. Reddy's Laboratories Ltd. versus a loss of 236 million rupees reported a year ago.


Read more at Reuters.com Market News

Dubai International Actively Considering EADS Stake, Says Dell Undervalued

(Bloomberg) -- Dubai International Capital LLC, a
private equity company owned by the emirate's ruling sheikh, is
```actively'' considering buying a stake in European
Aeronautics, Defence & Space Co., owner of plane-maker Airbus
SAS.

``Probably we will invest'' in EADS if the Paris-based
company's management demonstrates it understands its cost
problems, Chief Executive Officer Sameer al-Ansari said in an
interview in Jordan's Dead Sea resort today. Al-Ansari expects
to make a decision on investment on EADS in ``the next couple
of months.''


Read more at Bloomberg Emerging Markets News

Starent sets IPO of 9 mln shares at $9-$11/shr

(Reuters) - Starent, which provides infrastructure hardware and
software products for mobile telephony, said it applied for a
Nasdaq listing under the symbol "STAR."





Read more at Reuters.com Government Filings News

China Widens Daily Trading Band, Allows Yuan to Rise Faster Against Dollar

(Bloomberg) -- China widened the yuan's daily
trading limit against the U.S. dollar, allowing faster gains in
the currency to cool the economy and cut a record trade surplus
that has strained ties with the U.S. and Europe.

``Widening the band is to further improve the yuan's
mechanism, but it doesn't mean the yuan will fluctuate by a lot
or appreciate by a large magnitude,'' the People's Bank of China
said in a statement in Beijing. The yuan will be allowed to move
as much as 0.5 percent either side of a daily fixing rate
against the dollar, up from 0.3 percent, the central bank said.


Read more at Bloomberg Currencies News

Gold hedging falls 4.12 mln oz in 1st quarter - GFMS

(Reuters) - Gold hedging by fell 4.12 million ounces to 39.89 million in the first quarter of 2007 from the previous quarter, and the full year decline is seen in the range of 8 and 10 million, a report said.

"Producer sentiment remained strongly bullish towards the outlook for the gold price, reflected by another wave of buy-backs in the March quarter," said the report, produced by metals consultant GFMS Ltd. on behalf of Societe Generale Corporate and Investment Banking.


Read more at Reuters Africa

UPDATE 2-Sarkozy appoints government, reaches out to left

(Reuters) - PARIS, May 18 - French President Nicolas Sarkozy unveiled a broad-based cabinet on Friday, naming popular leftist Bernard Kouchner and a centrist to key posts in a slimline government that radically reshaped various ministries.

Maintaining an election promise, Sarkozy appointed seven women to his 15-strong team, cutting back the number of posts and downgrading many other positions.


Read more at Reuters.com Mergers News

Korean Won Drops This Week as Officials to Stem Gain, Peso 6 1/2-Year High

(Bloomberg) -- South Korea's won had the worst week since August after the government and central bank said they will take action to stem gains in the currency if needed.

The won has slumped more than 1 percent since Ahn Byung Chan, the Bank of Korea's top currency official, said May 16 the won is ``highly overvalued.'' The Japanese yen has weakened this quarter while the won strengthened, pushing up the price of Korean exports relative to those of its Asian neighbor. Shipments account for about 40 percent of Korea's economy.


Read more at Bloomberg Currencies News

U.K. Pound Advances Against Dollar Before April Retail Sales Report

(Bloomberg) -- The U.K. pound advanced against the dollar before a report expected to show that retail sales rose for a third month in April, reinforcing the case for the Bank of England to keep raising interest rates this year.

The pound advanced versus the dollar for only the second day this week and against the euro for a second day after a quarterly report by the Bank of England two days ago said the outlook for prices is ``unusually uncertain.'' The bank also said it expects ``upside risks'' to inflation.


Read more at Bloomberg Currencies News

Gold Rises in London After Recent Drop Spurs Jewelry Demand; Silver Falls

(Bloomberg) -- Gold gained in London on increased demand from jewelers, the biggest buyers of the metal.

Prices dropped 2.3 percent in the past two days, with the declines accelerating during New York trading hours as gains in the dollar against the euro spurred selling by commodity funds. Jewelers made up 69 percent of gold consumption in the first quarter, up from 61 percent a year earlier, figures this week from the producer-funded World Gold Council show.


Read more at Bloomberg Commodities News

Pound Is Little Changed Versus Dollar Before April Retail Sales Report

(Bloomberg) -- The U.K. pound was little changed before a report expected to show that retail sales rose for a third month in April, reinforcing the case for the Bank of England to keep raising interest rates this year.

The pound traded near a two-month low versus the euro and a four-week low against the dollar after inflation slowed last month and the BOE said in a quarterly report two days ago that the outlook for prices is ``unusually uncertain.'' The bank also said it expects ``upside risks'' to inflation.


Read more at Bloomberg Currencies News

India Plans to Boost Coal Production 6.8 Percent on Demand, Curb Imports

(Bloomberg) -- India, which uses coal to power half of its electricity-generation capacity, plans to boost output 6.8 percent in the year to March 2008 as demand rises, a minister said. Imports may decline by more than a quarter.

The South Asian nation plans to mine 462 million metric tons of the fuel in the 12-month period compared with 433 million tons a year earlier, Dasari Narayana Rao, mines minister, said in a written reply to Parliament in New Delhi.


Read more at Bloomberg Commodities News

Oil treads water after surge on gasoline anxiety

(Reuters) - Brent crude hovered above $70 a barrel on Friday after surging to an eight-month high on fears that more U.S. refinery outages will constrict gasoline supplies already at unusually low pre-summer levels.

London Brent crude slipped 11 cents to $70.16 a barrel by 0226 GMT, eroding only a fraction of the previous day's more than $2 or 3.3 percent gains, the biggest one-day rise since a 5 percent surge in late January.


Read more at Reuters Africa

Indian Bonds Pare Gains on Concern Central Bank May Increase Debt Sales

(Bloomberg) -- India's bonds fell, paring earlier gains, on concern the central bank will increase debt sales to drain excess cash from the financial system to curb inflation.

Ten-year yields rose on concern the Reserve Bank of India will announce today a debt sale or other measures to absorb money from banks. Finance Minister Palaniappan Chidambaram told the parliament yesterday that the government and central bank may take more fiscal and monetary steps to curb inflation.


Read more at Bloomberg Bonds News