LBOs Attack Finance Company Bonds; SLM, CIT American Express Debt Unravels

(Bloomberg) -- Finance company bonds, the fastest-
growing part of the corporate debt market, are no longer a haven
from leveraged buyouts.

Bondholders were ambushed by last month's $25 billion
takeover of SLM Corp., the student loan company known as Sallie
Mae. They had assumed that companies whose profits depend on
investment-grade credit ratings couldn't afford to pile on debt.


Read more at Bloomberg Bonds News

Areva, JCDecaux, France Telecom, Valeo, Vinci: French Equity Preview

(Bloomberg) -- Shares of the following companies may
rise or fall on the Paris stock exchange. Symbols are in
parentheses after company names and prices are from the last
close.

The CAC 40 Index declined 11.23, or 0.2 percent, to 6089.91
as about the same number of shares rose as fell. The SBF 120
Index dropped 0.1 percent.


Read more at Bloomberg Stocks News

French Households' Debt Level Reached Record Last Year, Central Bank Says

(Bloomberg) -- French households' debt reached a
record last year as home loans climbed, a report by the central
bank showed.

Household debt as a portion of gross available income rose
to 68.4 percent from 64.1 percent in 2005, according to the Bank
of France's May bulletin published today.


Read more at Bloomberg Bonds News

Malaysia's Cagamas to Sell $177 Million of Securities Backed by Loans

(Bloomberg) -- Cagamas Bhd., Malaysia's biggest buyer
of home mortgages, plans to sell 600 million ringgit ($177
million) of securities backed by loans to small and medium-sized
businesses, the company said.

The firm will sell within a month so-called credit-linked
notes maturing in five years, the company said in a statement
today. Aseambankers Malaysia Bhd. and Citibank Bhd. are advising
and arranging the transaction.


Read more at Bloomberg Bonds News

Platinum Falls in Asia as Dollar Holds Near Three-Month High Versus Yen

(Bloomberg) -- Platinum fell for a fourth day in five
in Asian trading as the dollar traded near a three month high
against the yen, cutting the value of the metal as an investment
to offset a weakening U.S. currency.

The dollar rose as much as 0.51 percent to 121.63 yen
yesterday in late New York trading, the highest since Feb. 23.
The currency traded at 121.47 yen at 10:48 a.m. Tokyo time today.


Read more at Bloomberg Commodities News

U.S. 10-Year Note Yields Hold Near Three-Month High After S&P 500 Gains

(Bloomberg) -- U.S. 10-year yields held near a three-
month high after the Standard & Poor's 500 Index climbed toward a
record, indicating the economy is growing enough to deter the
Federal Reserve from cutting interest rates.

``There are signs of asset allocation from bonds into
stocks,'' said Adam Donaldson, head of debt research at
Commonwealth Bank of Australia in Sydney. ``There's increasing
confidence that the U.S. economy is touching bottom.''


Read more at Bloomberg Bonds News

Malaysian Ringgit at Highest Since 1998 on Central Bank's Policy Comment

(Bloomberg) -- Malaysia's ringgit held at its
strongest since February 1998 after the central bank said China's
new yuan trading band won't prompt changes to its own policy.

The ringgit yesterday extended a nine-week rally to the
strongest since February 1998 after China widened the yuan's daily
trading band. Economic and currency policies in China and Malaysia
are independent of each other, Bank Negara Malaysia Governor Zeti
Akhtar Aziz said late yesterday.


Read more at Bloomberg Currencies News

Taiwan's Unemployment Rate Probably Stayed Near Lowest Level in Six Years

(Bloomberg) -- Taiwan's jobless rate probably held
close to the lowest level in six years as credit-card issuers
such as Taishin Financial Holdings Co. added more workers to
regenerate business lost after incurring bad loans two years ago.

The seasonally adjusted rate was 3.9 percent in April,
unchanged from March, according to the median estimate of eight
economists surveyed by Bloomberg News. That was close to
September and October's 3.8 percent, the lowest since February
2001. The report is scheduled for release at 4 p.m. in Taipei.


Read more at Bloomberg Bonds News

Japan's Nikkei Average, Topix Index Rise; Sumitomo Mitsui, Sony Lead Gain

(Bloomberg) -- Japan's Nikkei 225 Stock Average
rose 23.40, or 0.1 percent, to 17,580.27 at 9:02 a.m. in Tokyo.
The broader Topix index added 2.93, or 0.2 percent, to
1713.60.

Sumitomo Mitsui Financial Group Inc. and Sony Corp. led the
advances.


Read more at Bloomberg Stocks News

UPDATE 1-ValueVision to cut 12 pct jobs; posts Q1 profit on gain

(Reuters) - The company also reported a profit in the first quarter
helped by a gain of $40.2 million on the sale of its 12.5
percent equity stake in Polo.com.




For the quarter, the company posted a profit of $34.4
million, or 80 cents a share, compared with a loss of $2.1
million, or 6 cents a share, a year ago. Revenue rose to $188.1
million from $178.7 million.


Read more at Reuters.com Mergers News

FDA reviewing risks of Glaxo diabetes drug

(Reuters) - A study published in the New England Journal of Medicine said Avandia increased the risk of cardiac-related deaths by 64 percent and heart attacks by 43 percent. Dr. Robert Meyer, head of the FDA office that reviews diabetes drugs, said other data contradicted those findings.




"FDA has not confirmed the clinical significance of the reported increased risk in the context of other studies," Meyer told reporters during a conference call.


Read more at Reuters.com Business News

UPDATE 1-Fed's Moskow on PBS: Still wants inflation lower

(Reuters) - CHICAGO, May 21 - Chicago Federal Reserve
President Michael Moskow said on Monday that inflation is
likely to fall further over time even as the U.S. economy picks
up steam over the course of 2007.




"Our expectation is that inflation rates will continue to
come down as well during this period and I would expect the
unemployment rate will not go up a great deal," Moskow said in
an interview to air Monday on PBS's "Nightly Business Report"
television show.


Read more at Reuters.com Economic News

Taro says acquisition by Sun to proceed after court ruling

(Reuters) - Franklin Advisers Inc. and Templeton Asset Management Ltd. moved an Israeli court to restrain Taro from concluding any deal that could hurt minority interests.



As part of the court proceedings, Taro agreed to decrease the interim funding of $45 million by 9.5 percent, the Israeli generic drug maker said.


Read more at Reuters.com Mergers News

Small China steps could mean big Treasuries shift

(Reuters) - China has $1.2 trillion in foreign exchange reserves and holds $420.2 billion of U.S. Treasuries, making it the second biggest foreign holder after Japan.




The country's purchase of a $3 billion stake in U.S. private equity firm Blackstone Group is one confirmation that China is branching out into riskier assets in search of higher returns, and that its purchases of safer government bonds may diminish, analysts say.


Read more at Reuters.com Business News

New Century wins court OK to sell servicing unit

(Reuters) - The price is about one-third more than Carrington offered
prior to the auction, and may be adjusted.




Irvine, California-based New Century had been one of the
largest U.S. providers of home loans to people with poor credit
histories before filing for Chapter 11 bankruptcy protection on
April 2 amid the U.S. housing slowdown.


Read more at Reuters.com Bonds News

Williams Cos. Bond Risks Fall on Sale of Assets, Credit-Default Swaps Show

(Bloomberg) -- The perceived risk of owning bonds of
Williams Cos. fell to the lowest in at least five years on
speculation that the sale of the pipeline company's energy-
trading assets will boost its debt to investment grade,
according to credit-default swap traders.

Credit-default swaps based on $10 million of the Tulsa,
Oklahoma-based company's bonds dropped $29,500 to $76,500,
according to CMA Datavision. That's the lowest since at least
April 2002, prices from Credit Suisse Group show. A decrease in
the five-year contracts, used to bet on the company's ability to
repay debt, signals improvement in the perception of credit
quality.


Read more at Bloomberg Bonds News

Higher Mills revs not seen until late '07 -Simon CFO

(Reuters) - Sterrett was in Las Vegas attending the International
Council of Shopping Centers' annual convention, where
retailers, shopping center owners, brokers and bankers convene
to do deals. Investors also attend to get a better ground-level
view on the industry.




On April 3, Simon and hedge fund Farallon Capital
Management closed on the roughly $7.9 billion acquisition of
Mills, which was forced to sell after an accounting scandal.
The Simon/Farallon joint venture acquired ownership of 20
regional malls. It also acquired 17 Mills-type shopping
centers, which usually combine different types of shopping
ventures under a theme.


Read more at Reuters.com Mergers News

UPDATE 1-US FDA says reviewing risks of Glaxo diabetes drug

(Reuters) - "FDA has not confirmed the clinical significance of the reported increased risk in the context of other studies," Meyer told reporters during a conference call.




"Further, the FDA does not know whether the other approved treatments in the same class of drugs ... have less, the same, or other greater such risks," he said.


Read more at Reuters.com Government Filings News

UPDATE 1-BOC's Dodge-Unified N. America currency "possible"

(Reuters) - However, Dodge, answering questions from the audience after
a speech on global economic institutions, said the countries
involved would have to "tear down borders in terms of labor
flows" to make a joint currency work.




Instead, borders between Canada, the United States and
Mexico have "gotten a bit thicker" in recent years, he said.


Read more at Reuters.com Bonds News

Treasury 10-Year Note's Yield Trades Near Three-Month High on Fed Outlook

(Bloomberg) -- Treasuries were little changed, with
the 10-year note's yield near a three-month high, as signs of
U.S. economic strength reduced the likelihood of a cut in
borrowing costs by the Federal Reserve this year.

U.S. government debt dropped last week the most since
January on reports showing higher-than-expected hiring and
consumer confidence. An advance in U.S. and European stocks
today weighed on fixed-income assets.


Read more at Bloomberg Bonds News

Lowe's posts lower profit, cuts year forecast

(Reuters) - The company's shares were down nearly 4 percent in afternoon trading.




Earnings came to $739 million, or 48 cents a share, for the first quarter that ended May 4, down 12 percent from $841 million, or 53 cents, a year earlier.


Read more at Reuters.com Business News

Commercial Mortgage Bond Premiums Rise to Highest in More Than Two Years

(Bloomberg) -- Yield premiums on bonds backed by
mortgages for offices, hotels and malls reached the highest in
more than two years because of investors' concerns about lax
lending standards.

The average yield premium for commercial mortgage-backed
securities is 81 basis points, or 0.81 percentage point, more
than benchmark Treasuries, the widest spread since September
2004, according to Merrill Lynch & Co. CMBS are backed by pools
of commercial loans sliced into bonds of different credit
ratings and maturities.


Read more at Bloomberg Bonds News

OPEC Has No Plans to Boost Crude Oil Output, Libyan, Qatari Officials Say

(Bloomberg) -- OPEC, which supplies about two-fifths of
the world's oil, won't heed calls from consumers to increase output
for the summer driving season, officials from Libya and Qatar said.

``We are convinced that the market is not short of supply,''
Qatari Energy Minister Abdullah Al-Attiyah told reporters in the
Persian Gulf nation's capital Doha today. Geopolitical risks in the
Middle East and Africa, not lack of production, are pushing oil
prices higher, he said.


Read more at Bloomberg Energy News

Soybeans Rise to 12-Week High; Dry Spell May Harm Newly Planted U.S. Crop

(Bloomberg) -- Soybean prices rose to a 12-week high
in Chicago on concern that dry weather in the eastern Midwest
will harm the second-biggest U.S. crop.

The dry conditions that have created moderate to extreme
drought from Alabama to North Carolina may move west in the next
month, increasing stress on newly planted crops in Ohio and
elsewhere that are already short of moisture, said Drew Lerner,
president of World Weather Inc. in Kansas City, Kansas.


Read more at Bloomberg Commodities News

UPDATE 1-Merrill Lynch takes minority stake in GSO Capital

(Reuters) - Financial terms were not disclosed.




Merrill is one of several Wall Street brokerages which have
been boosting their exposure to the fast-growing hedge fund
industry as they seek to boost exposure to leveraged loans and
private equity.


Read more at Reuters.com Bonds News

Murdoch may walk away from Dow Jones bid: analyst

(Reuters) - Greenfield wrote that News Corp. might say it is backing off its plan to buy Dow Jones in the next couple of weeks.




"While there is strategic merit to a acquisition of Dow Jones, it is not a 'must-have' for News Corp.," he said.


Read more at Reuters.com Hot Stocks News

Hologic, Luna, NetBank, Pegasystems, The9, Altria, EGL: U.S. Equity Movers

(Bloomberg) -- The following is a list of companies
whose shares are having unusual price changes in U.S. exchanges
today. Stock symbols are in parentheses after company names.
Share prices are as of 11:40 a.m. New York time.

Alltel Corp. (AT US) rose $4.69, or 7.2 percent, to $69.90
and traded as high as $70.45. Goldman Sachs Group Inc. and TPG
Inc. agreed to buy Alltel for about $24.7 billion in the largest
leveraged buyout of a telecommunications company. Investors will
get $71.50 a share, the mobile-phone company said in a statement.
The offer is 9.6 percent more than Alltel's last closing price.
Including debt, the bid values Alltel at $27.5 billion.


Read more at Bloomberg Stocks News

U.S. loan derivative index launch to spur liquidity

(Reuters) - Credit default swaps are insurance-like securities
that protect against borrowers defaulting on their debt.




"I think it will have a significant impact in the market
and will increase liquidity in single-name loan CDS," said
Jeremy Vogelmann, loan credit default swap trader at Barclays
Capital in New York.


Read more at Reuters.com Bonds News

Terra Firma plans to keep EMI intact -source

(Reuters) - "Terra Firma sees significant opportunity on both sides of
the business," said the source, who requested anonymity. "It
believes in the digital growth opportunity in the music market,
in general, and so the expectation is that the business will be
held together."




EMI has agreed to be acquired by Terra Firma for about 2.4
billion pounds , or 265 pence a share.


Read more at Reuters.com Mergers News

Rand softer as greenback gains

(Reuters) - South Africa's rand weakened versus the dollar on Monday, as the greenback hit a five-week high due to short-covering and lowered expectations that the U.S. Federal Reserve would cut interest rates.

At 1455 GMT, the rand stood at 7.0345 to the dollar, about 0.5 percent softer than its New York close of 6.9975 on Friday. Robust demand for the South African currency pushed it to its strongest level of 6.9808/dollar earlier in the session.


Read more at Reuters Africa

Hungarian Forint Gains After Central Bank Unexpectedly Keeps Rates on Hold

(Bloomberg) -- The Hungarian forint snapped a four-day
losing run after the central bank unexpectedly held interest rates
today at the highest in the European Union.

The forint had its biggest one-day gain in seven weeks today
as Hungary's rate-setting Monetary Council kept the two-week
deposit rate at 8 percent for a seventh month. Economists surveyed
by Bloomberg News had forecast a quarter-point cut. Hungary's high
benchmark makes the forint a favorite for carry trade investors,
who borrow in low interest rate currencies like the yen or Swiss
Franc to fund higher-yielding investments elsewhere.


Read more at Bloomberg Currencies News

Crude Oil Is Little Changed as Refineries Boost U.S. Gasoline Production

(Bloomberg) -- Crude oil was little changed in New
York, above $65 a barrel, as refineries stepped up production of
gasoline to meet increased demand for summer.

U.S. refineries have boosted fuel production in recent weeks
after disruptions earlier in the year cut output. Gasoline
inventories rose to 195.2 million barrels the week ended May 11,
the second consecutive weekly increase, according to a U.S.
Energy Department report on May 16. The increase left supplies
7.5 percent below the five year average.


Read more at Bloomberg Commodities News

Fed official says don't choke off subprime lending

(Reuters) - Braunstein was speaking before a House of Representatives government oversight panel hearing in Cleveland. A text of her speech was made available to reporters in Washington.




Read more at Reuters.com Bonds News

Kuwait Ends Currency's Peg to Dollar, Pressuring UAE, Qatar to Follow Suit

(Bloomberg) -- Kuwait became the first Middle
Eastern country to abandon its currency's peg to the dollar to
help curb inflation, putting pressure on the United Arab
Emirates and Qatar to do the same.

The dinar rose 0.4 percent against the dollar after Kuwait
ended the peg and switched to a basket of currencies. A slump in
the dollar has pushed up the cost of imports from Europe and
Asia for Middle Eastern consumers. Yesterday's decision may make
it more difficult for Kuwait to meet a timetable to join five
other Gulf Arab monarchies in forming a single currency by 2010.


Read more at Bloomberg Currencies News

Banco Bradesco, Brasil Telecom, Telemar and Tim: Brazilian Equity Movers

(Bloomberg) -- Brazil's main stock index rose for a
second day, led by telephone company Tele Norte Leste Participacoes
SA.

The Bovespa Index of the most-traded stocks on the Sao Paulo
exchange gained 175.35, or 0.3 percent, to a record 52,253.03 as of
9:56 a.m. New York time.


Read more at Bloomberg Stocks News

Freddie Mac to sell $4 bln 2-year notes Wednesday

(Reuters) - The joint lead managers on the sale will be Bear Stearns,
Citigroup Global Market and Credit Suisse,




Including this offering, Freddie Mac will have issued $25
billion of reference notes in 2007 and will have about $238
billion in reference notes and bonds outstanding.


Read more at Reuters.com Bonds News

Crude Oil Is Little Changed as U.S. Refineries Boost Gasoline Production

(Bloomberg) -- Crude oil was little changed in New
York, above $65 a barrel, as refineries stepped up production of
gasoline to meet increased demand for summer.

U.S. refineries have boosted fuel production in recent weeks
after disruptions earlier in the year cut output. Gasoline
inventories rose to 195.2 million barrels the week ended May 11,
the second consecutive weekly increase, according to a U.S.
Energy Department report on May 16. The increase left supplies
7.5 percent below the five year average.


Read more at Bloomberg Commodities News

Nymex Gas Falls on Forecasts for Mild Weather in U.S., Ample Fuel Supplies

(Bloomberg) -- Natural gas declined in New York as
forecasts for mild weather across much of the nation are likely
to weaken demand, allowing storage of the power-plant and heating
fuel to build.

``It's going to be a very mild week,'' said Stephen A.
Smith, of Stephen Smith Energy Associates, in an interview ahead
of the opening of the market. ``The surplus will keep building
for at least a couple more weeks.''


Read more at Bloomberg Energy News

S&P 500 Futures Erase Gains as Oil Rises; Alltel Climbs on Buyout Offer

(Bloomberg) -- Standard & Poor's 500 Index futures
erased a gain after the price of oil rose, offsetting the
largest leveraged buyout of a telecommunications company.

Alltel Corp., the fifth-biggest U.S. wireless company,
climbed after a $24.7 billion offer from Goldman Sachs Group
Inc. and TPG Inc. Lowe's Cos. fell after the second-largest
home-improvement retailer reported profit that trailed analyst
estimates.


Read more at Bloomberg Stocks News

Hungarian Forint Extends Gain After Central Bank Keeps Main Rate on Hold

(Bloomberg) -- The Hungarian forint extended its gains
against the euro after the central bank unexpectedly kept interest
rates unchanged at the highest in the European Union today.

The rate-setting Monetary Council kept the two-week deposit
rate at 8 percent for a seventh month. Economists surveyed by
Bloomberg News had forecast a quarter-point cut. The relatively
high interest rates in Hungary make the forint a favorite for
carry trade investors which involves borrowing in a low interest
rate currency like the yen or Swiss Franc and investing in higher-
yield assets elsewhere.


Read more at Bloomberg Currencies News

Cytyc, DaimlerChrysler, Elan, Virgin Media, Allstate: U.S. Equity Preview

(Bloomberg) -- The following is a list of companies
whose shares may have unusual price changes in U.S. exchanges
today. This preview includes news that broke after exchanges
closed. Stock symbols are in parentheses after company names.
Share prices are as of 8:10 a.m. New York time.

Allstate Corp. (ALL US): The second-largest U.S. home and
auto insurer said a federal grand jury in Mississippi subpoenaed
the company as part of a probe into the industry's handling of
Hurricane Katrina claims. The stock rose 26 cents to $62.75 in
regular trading.


Read more at Bloomberg Stocks News

Nordic Benchmark Indexes Advance, Led by Statoil, Norsk Hydro; Volvo Rises

(Bloomberg) -- Nordic stocks gained, led by Statoil
ASA and Norsk Hydro ASA, the largest oil and gas producers in the
region, as crude oil climbed above $65 a barrel in New York.

Volvo AB, Europe's second-biggest truckmaker, also rose.


Read more at Bloomberg Stocks News

Alltel, Lowe's, Sigma Designs, Topps Co., USG Corp.: U.S. Equity Preview

(Bloomberg) -- The following is a list of companies
whose shares may have unusual price changes in U.S. exchanges
today. This preview includes news that broke after exchanges
closed. Stock symbols are in parentheses after company names.
Share prices are as of 7:21 a.m. New York time.

Allstate Corp. (ALL US): The second-largest U.S. home and
auto insurer said a federal grand jury in Mississippi subpoenaed
the company as part of a probe into the industry's handling of
Hurricane Katrina claims. The stock rose 26 cents to $62.75 in
regular trading.


Read more at Bloomberg Stocks News

Argentina, Brazil, Peru, Venezuela: Latin America Local Bond Preview

(Bloomberg) -- The following events and economic
reports may influence trading in Latin American local bonds
today. Bond yields are from the previous session.

Argentina: Industrial output climbed 6.8 percent in April
from a year earlier, the National Statistics Institute reported
in a May 18 report. The annual increase was lower than the 7
percent median estimate of nine economists in a Bloomberg survey.


Read more at Bloomberg Bonds News

Asian Development Bank Starts Selling 5 Billion Philippine Pesos in Debt

(Bloomberg) -- The Asian Development Bank will sell
5 billion Philippine pesos ($108 million) of five-year bonds to
help fund operations, according to a document obtained from one
of the arrangers.

The Manila-based bank seeks to pay between 80 percent and
85 percent of the yield on the Philippine government's five-year
benchmark note, ADB Assistant Treasurer Juanito Limandibrata
said in a phone interview today. That is equivalent to a yield
between 4.9 percent and 5.2 percent, according to Bloomberg
calculations based on today's rate.


Read more at Bloomberg Bonds News

Ellerine says H1 headline EPS up 15 pct

(Reuters) - South African furniture and appliance retailer Ellerine Holdings on Monday said its first half headline earnings per share rose 15 percent to 493.9 cents.

Ellerine said revenue for the six months to end-February was up 9.6 percent to 4.4 billion rand.


Read more at Reuters Africa

Universal Cuts Forecast for Tobacco Output on Drought in Georgia, Florida

(Bloomberg) -- Universal Corp., the world's biggest
tobacco-leaf merchant, lowered its forecast for global
production of flue-cured tobacco after a drought cut plantings
in the U.S. states of Georgia and Florida.

The company, based in Richmond, Virginia, forecast a crop
of flue-cured tobacco, the top grade of the leaf, of 3.85
billion kilograms (8.49 billion pounds). That's 1.8 percent
lower than last month's forecast, the company said on its Web
site in a report dated May 18.


Read more at Bloomberg Commodities News

U.K. FTSE 100 Index Rebounds; Anglo American, Xstrata and Lonmin Advance

(Bloomberg) -- U.K. stocks rebounded, paced by Anglo
American Plc, Xstrata Plc and Lonmin Plc.

The benchmark FTSE 100 Index increased 10.6, or 0.2 percent,
to 6651.5 at 10:21 a.m. in London, after falling as much as 0.3
percent earlier. The FTSE All-Share Index rose 0.2 percent to
3456.45. Ireland's ISEQ Index gained 0.8 percent to 9743.23.


Read more at Bloomberg Stocks News

U.K. Natural Gas Prices Decline as Ample Inventory Levels Reduce Demand

(Bloomberg) -- U.K. natural-gas prices for delivery
in June declined as high inventory levels reduced demand from
users who store gas in the summer for withdrawal next winter.

Gas for June delivery at the National Balancing Point, the
U.K. trading hub, fell 2.7 percent to 23.4 pence a therm at 8:50
a.m. in London, according to broker ICAP Plc. That equals $4.62
per million British thermal units. A therm is 100,000 Btus.


Read more at Bloomberg Energy News

U.S. Treasuries Gain as Yields Near Three-Month High Attract Investors

(Bloomberg) -- U.S. 10-year notes rose as yields near
their highest in three months attracted investors who are betting
on slower economic growth and lower interest rates.

Treasuries fell the most since January last week. Ten-year
yields, which move in the opposite direction to prices, rose to
4.81 percent last week, approaching the 2007 high of 4.90 percent
reached on Jan. 26. Inflation expectations, as measured by the gap
between two-year nominal and inflation-linked bonds, fell to 260
basis points from 281 basis points at the start of this month.


Read more at Bloomberg Bonds News

European Stocks Retreat From 6 1/2 Year High; Novartis, Daimler Pace Drop

(Bloomberg) -- European stocks declined from a 6 1/2-
year high as investors bet share price gains have exceeded
earnings prospects.

Novartis AG and DaimlerChrysler AG paced the drop. Societe
Generale, Axa SA, and STMicroelectronics NV weighed on markets as
they traded without the right to their latest dividend. Capitalia
SpA fell after UniCredit SpA agreed to buy the Italian bank for
21.8 billion euros ($29.5 billion).


Read more at Bloomberg Stocks News

China's CSI 300 Index Advances; Ping An, Insurers Climb After Rate Raise

(Bloomberg) -- China's stocks rallied on speculation
higher interest rates won't deter investors in the nation. Ping
An Insurance (Group) Co. led gains among insurers on expectations
increased deposit rates will boost investment returns.

The ``rate changes are bullish for insurance stocks as they
help boost investment returns and therefore earnings,'' said Sun
Cheng, an asset manager for Pacific Asset Management Co.


Read more at Bloomberg Stocks News

Scottish Power's Damhead Creek Power Plant Starts After Three-Week Closure

(Bloomberg) -- Scottish Power Plc, the U.K. unit of
Iberdola SA, said its Damhead Creek gas-fired power plant
started production over the weekend after a three-week shutdown.

The plant in Kent, southeast England, was available for
production from about 7 a.m. on May 19, data on a Web site
operated by National Grid Plc showed. The plant shut for
maintenance on April 27.


Read more at Bloomberg Energy News

Greece, Espirito Santo, Gazprom Plan to Sell Debt: European Bond Alert

(Bloomberg) -- The following is a list of bond sales
denominated in euros or pounds and expected in the coming days
and weeks.

Investment-Grade Sales


Read more at Bloomberg Bonds News

U.S. Economy to Slow This Year, Hurt by Housing, Business Economists Say

(Bloomberg) -- The U.S. economy will slow this year,
hurt by a protracted housing slump and a pullback in business
investment, according to a survey by the National Association
for Business Economics.

Economists cut estimates for growth this year to 2.2
percent, according to the median of 48 forecasts, from 2.7
percent in the group's February survey. Capital spending will
rise 3 percent, down from a 5.4 percent forecast in the prior
survey, according to the poll taken April 19 to May 8.


Read more at Bloomberg Bonds News