Indian Bonds Drop on Concern Increase in Auctions to Drain Funds at Banks

(Bloomberg) -- Indian bonds fell for a third day on
concern an increase in debt auctions will drain the spare funds
at banks, the biggest buyers of government securities.

Investors demanded higher yields at a 90 billion rupee
($2.2 billion) debt sale yesterday, pushing 10-year yields to
the highest in a week. The government will today sell 65 billion
rupees of treasury bills and 50 billion rupees of two-year notes.
The central bank said last week it will raise the amount of
treasury bills it will auction this week by more than 50 percent.


Read more at Bloomberg Bonds News

European Bonds Little Changed Before ECB Meeting; Rate Increases Expected

(Bloomberg) -- European government bonds were little
changed amid speculation European Central Bank policy makers led
by President Jean-Claude Trichet will lift interest rates today a
quarter point and hint at additional increases.

Yields on two-year notes, more sensitive to interest-rate
expectations, are at a six-year high on concern the central bank
will have more to do to rein in inflation because economic growth
in the euro region is beating expectations. The bank will raise
its forecasts for inflation and economic growth, the Financial
Times Deutschland reported on June 4.


Read more at Bloomberg Bonds News

`Ghost Towns' Appear in Madrid as Spain's Decade-Long Housing Boom Ends

(Bloomberg) -- Javier Usua and Ruth Graneda never got
out of the car when they visited Sanchinarro and Las Tablas, two
of Madrid's biggest new suburban developments. The concrete-block
buildings and empty streets were all they needed to see.

``We came to look at apartments but found ghost towns,'' said
Usua, a 27-year-old taxi driver. ``You'd need to drive miles for a
loaf of bread or cigarettes and my girlfriend found it creepy and
unsafe so we turned around and left.''


Read more at Bloomberg Currencies News

Productivity in U.S. Probably Slowed More Than Estimated in First Quarter

(Bloomberg) -- U.S. worker productivity last quarter
grew less than previously estimated and labor costs rose, giving
the Federal Reserve reason to remain concerned about inflation,
economists said before a government report today.

Productivity, a measure of how much an employee produces
for each hour of work, rose at an annual rate of 1 percent, down
from the 1.7 percent gain estimated last month, according to the
median estimate of 70 economists surveyed by Bloomberg News. A
measure of labor costs rose at a 1.3 percent rate, more than
double the 0.6 percent rate initially reported.


Read more at Bloomberg Bonds News

Australian Stocks Fall, Led by Woolworths on Rates Concerns; Toll Declines

(Bloomberg) -- Australian stocks fell, led by
Woolworths Ltd. and Telstra Corp. after a report showed the
economy grew faster-than-expected in the first quarter, stoking
concern interest rates may rise and sending bond yields higher.

The risk of an interest rate increase this year ``must now be
regarded as high,'' said Shane Oliver, who helps oversee $83
billion at AMP Capital Investors in Sydney. ``Higher bond yields
are a risk for shares.''


Read more at Bloomberg Stocks News

Burger King Plans to Add 250 Stores in Asia Over Five Years, Chidsey Says

(Bloomberg) -- Burger King Holdings Inc., the second-
largest U.S. hamburger chain, plans to add as many as 250 new
stores in Asia in the next five year.

``Asia will be our next biggest growth opportunity in the
next two to five years,'' said Chief Executive Officer John
Chidsey in a televised interview in Hong Kong today.


Read more at Bloomberg Emerging Markets News

Asian Stocks Rise to a Record, Led by Japan's Marubeni; Canon, Toll Fall

(Bloomberg) -- Asian stocks rose to a record, led by
Japanese trading companies after Daiwa Institute of Research Ltd.
recommended investors buy shares in Marubeni Corp.

Marubeni, Japan's No. 5 trading company, surged 5.7 percent.
Canon Inc. paced a decline among exporters on speculation a
reduction in U.S. interest rates will be delayed.


Read more at Bloomberg Stocks News

Malaysian Ringgit Has Biggest Two-Day Drop Since December as Exports Slow

(Bloomberg) -- Malaysia's ringgit had the biggest
two-day drop since December on speculation the central bank will
want a weaker currency to boost growth in exports.

The ringgit declined 0.3 percent yesterday, the most in more
than two months, as a government report showed exports in April
grew at less than a quarter of the pace projected by economists.
Expansion in Asia's third-largest economy slowed in the first
quarter to the least since the three months ended September 2005,
which may weigh on April industrial production numbers.


Read more at Bloomberg Currencies News

Australian Stocks Drop For a Second Day; Rio, Woodside Petroleum Decline

(Bloomberg) -- Australian stocks fell for a second day,
led by Rio Tinto Group and Woodside Petroleum Ltd. after prices of
copper and crude oil dropped.

The S&P/ASX 200 Index lost 21.0, or 0.3 percent, to 6349.80
as of 10:20 a.m. in Sydney. About five stocks fell for every four
that gained.


Read more at Bloomberg Stocks News

CORRECTED - French TV firm Marathon is up for sale-sources

(Reuters) - LONDON, June 5 - French TV production company
Marathon has been put up for auction by private equity owner
Bridgepoint, fresh on the heels of larger rival Endemol
and in January 2006 merged it with
Marathon to increase its negotiating power with broadcasters
and to create a more attractive company to sell.


Read more at Reuters.com Mergers News

Crude Oil Is Steady on Speculation U.S. Stockpiles Are Enough for Summer

(Bloomberg) -- Crude oil was little changed in New
York after falling with gasoline yesterday on speculation U.S.
inventories are sufficient to meet peak summer demand.

An Energy Department report today will probably show below-
average U.S. gasoline stockpiles rose 1.6 million barrels last
week, their fifth gain, as refiners increased output, according
to a Bloomberg News survey of 14 analysts. Gasoline fell to a
four-week low and the discount in U.S. oil prices to Brent
futures widened to one-week high.


Read more at Bloomberg Energy News

UPDATE 1-Teachers', Providence in talks to take BCE private

(Reuters) - BCE said the pension fund's private investment arm and
Providence have signed non-disclosure and standstill agreements
with the company "on a non-exclusive basis".




Teachers' has been mulling an offer for BCE and earlier on
Tuesday announced that it had raised its stake in the firm, the
parent of phone company Bell Canada, to 6.3 percent from 5.3
percent it held as of March. It now owns 50.8 million shares.


Read more at Reuters.com Mergers News

Bois d'Arc Energy says exploring strategic alternatives

(Reuters) - The company said it has retained Scotia Waterous and
Raymond James to assist it in evaluating strategic
alternatives.





Read more at Reuters.com Mergers News

UPDATE 1-Guess quarterly profit rises; gives outlook

(Reuters) - The company reported first-quarter net earnings of $35.5
million, or 38 cents a share, compared with $20.7 million, or
23 cents a share, for the recast quarter ended April 29, 2006.




Revenue rose 42.3 percent to $377.9 million in the quarter.


Read more at Reuters.com Market News

Merck KGaA to Replace Altana in Germany's DAX Index, Deutsche Boerse Says

(Bloomberg) -- Merck KGaA, the German drugmaker that
bought Serono SA to become Europe's biggest biotechnology
company, will replace Altana AG in the country's benchmark DAX
Index this month, Deutsche Boerse AG said.

The changes will take effect June 18, the operator of the
Frankfurt exchange said in a statement distributed by e-mail.


Read more at Bloomberg Stocks News

Oxford Industries lowers its Q4 outlook

(Reuters) - Due to the challenging sales environment, the Atlanta-based company said it now sees fourth-quarter net sales landing in the lower half of its previously issued forecast range of $285 million to $295 million.



Oxford also said it sees fourth-quarter earnings from continuing operations ranging between $1.00 and $1.05 a share, down from its earlier forecast of $1.07 to $1.14 a share.


Read more at Reuters.com Market News

UPDATE 3-GM CEO touts progress at annual meeting

(Reuters) - Speaking to investors CEO Rick Wagoner said GM, which lost
more than $12 billion in the past two years, had made "major
progress" in its restructuring -- a plan that includes slashing
more than 34,000 jobs and closing 12 plants.




GM cut structural costs by $6.8 billion in 2006 and Wagoner
told shareholders the automaker is on track to reach its target
of cutting those costs by an additional $2.2 billion this year.


Read more at Reuters.com Bonds News

Cocoa Rallies on Speculation Raise Will Fail to Boost Ivory Coast Harvest

(Bloomberg) -- Cocoa in New York rose the most in
eight sessions on speculation that recent rains may not help the
crop in Ivory Coast, where supplies available for export already
lag behind last season.

About 1.075 million metric tons of cocoa arrived at ports
from Oct. 1 to June 3 in Ivory Coast, the world's largest
producer, down 9.3 percent from the same period a year earlier,
according to a Sucden Research report. The International Cocoa
Organization's forecast that the country's current crop will
reach 300,000 tons is ``too optimistic,'' said Adam
Klopfenstein, a senior market strategist for Lind-Waldock.


Read more at Bloomberg Commodities News

Sugar Futures Fall to Two-Year Low on Growing Surpluses From Brazil, India

(Bloomberg) -- Sugar futures fell to a two-year low,
capping the longest slump since September, on speculation that
cane harvests in Brazil and India will add to a global glut.

World sugar production may exceed demand by 10 million
metric tons this year, F.O. Licht in Ratzeburg, Germany, said
June 1. The London-based International Sugar Organization
earlier predicted a surplus of 9.2 million tons in the year
through September as growers try to meet demand for ethanol, a
fuel made from sugar.


Read more at Bloomberg Commodities News

US STOCKS-Indexes drop on interest-rate worries

(Reuters) - NEW YORK, June 5 - U.S. stocks fell on Tuesday as
signs of strength in the services sector and comments from
Federal Reserve Chairman Ben Bernanke put an interest rate cut
further out on the horizon, with surging bond yields adding to
concerns.




Rate-sensitive utility stocks fell, with shares of Edison
International dropping 2 percent.


Read more at Reuters.com Bonds News

UPDATE 1-U.S. SEC says IBM misled investors on expenses

(Reuters) - SAN FRANCISCO, June 5 - IBM misled
investors by overestimating the impact of stock-based
compensation expenses on quarterly earnings in 2005, the U.S.
Securities and Exchange Commission said on Tuesday.




The securities regulator made the statement as it reached a
settlement with International Business Machines Corp., in which
the company agreed not to commit future disclosure violations.


Read more at Reuters.com Government Filings News

Brazil Stocks Slide on U.S. Interest Rate Concern: Latin American Equity

(Bloomberg) -- Brazil stocks fell for a second day
after stronger-than-expected growth in the U.S. pushed up bond
yields and spurred concern the Federal Reserve will raise rates.

The Bovespa Index of the most-traded stocks on the Sao Paulo
exchange fell 527.74, or 1 percent, to 52,714.74 as of 12:30 p.m.
New York time, led by mining company Cia. Vale do Rio Doce.
Mexico's Bolsa index retreated 243.44, or 0.8 percent, to
31,852.77 after setting a record yesterday.


Read more at Bloomberg Stocks News

Bank of NY, Mellon deal gets US antitrust approval

(Reuters) - Officials have completed their investigation of the deal without taking any action, the Federal Trade Commission said in a notice.



) Keywords: MELLON BANKNY/


Read more at Reuters.com Government Filings News

TREASURIES-Bond bears seize strong data, reach for 5 pct

(Reuters) - Such strength would likely deter the Federal Reserve from
cutting interest rates this year, a prospect that prompted
heavy selling.




Ten-year notes dropped 13/32 in price and were
offering a yield of 4.99 percent. That was up 6 basis points on
the day but up as much as 40 points since a bearish streak that
began in mid-March. Bond yields move inversely to prices.


Read more at Reuters.com Bonds News

US stock indexes fall on rate worry; housing shares down

(Reuters) - U.S. stocks fell on Tuesday after signs of strength in the services sector and comments from Federal Reserve Chairman Ben Bernanke all but eliminated expectations of an interest rate cut this year.

Housing-related stocks were among the biggest decliners after Bernanke said the building slowdown is likely to drag on longer than expected. Also weighing were profit warnings from home goods retailer Bed Bath & Beyond Inc. and kitchen cabinet maker American Woodmark Corp.


Read more at Reuters Africa

Emerging debt-Prices track Treasuries down, risk lower

(Reuters) - But yield spreads between emerging markets bonds and U.S.
Treasuries, a key gauge of risk aversion, still tightened 1
basis point to 152 basis points, according to the benchmark JP
Morgan's EMBI+ index .




"Emerging debt prices are falling in line with Treasuries,"
said Luiz Felipe Brandao, emerging markets director with Arkhe
brokerage in Sao Paulo, explaining that, for the moment, there
the appetite for risk remains strong.


Read more at Reuters.com Bonds News

Investor Burkle joins Dow Jones union in bid try

(Reuters) - The union has also reached out to Warren Buffett on a potential counter-offer for the publisher of the Wall Street Journal, but has not received a response yet, he said.




Burkle was part of an unsuccessful bid for publisher Tribune Co. earlier this year.


Read more at Reuters.com Business News

UPDATE 1-European court's Microsoft ruling Sept 17-sources

(Reuters) - The Commission, executive arm of the European Union, decided
in March 2004 that Microsoft had violated antitrust laws. It
fined the company 497 million euros and ordered
changes to Microsoft's business practices.




The Commission found that Microsoft's Windows, used by more
than 95 percent of the world's personal computers, allowed too
little interoperability for other software makers.


Read more at Reuters.com Government Filings News

Bernanke Says China Can Manage `Overheating' Economy With Flexible Yuan

(Bloomberg) -- Federal Reserve Chairman Ben S.
Bernanke comments on differences between the U.S. and China over
China's currency policy. He spoke in response to an audience
question after a speech delivered via satellite to a bankers'
conference in Cape Town, South Africa.

``That of course remains an area of disagreement. Both sides
think that the renminbi ought to move towards greater
flexibility, but we differ on the pace at which that will take
place. I have argued and I firmly believe that a quick pace
towards greater flexibility would be very much in China's
interest. In particular, it would create more flexibility for
their monetary policy to address the potential overheating of
their economy.''


Read more at Bloomberg Currencies News

US stock indexes fall as rate cut hopes fade

(Reuters) - U.S. stocks fell on Tuesday after Federal Reserve Chairman Ben Bernanke said inflation risks remain to the upside, suggesting equity investors should not count on an interest rate cut spurring stocks higher in the near future.

Weighing down the Nasdaq index were shares of Bed Bath & Beyond Inc. after the home goods retailer warned late on Monday that it sees first-quarter profit below Wall Street forecasts ID:nN04208082.


Read more at Reuters Africa

UPDATE 1-British Airways says May traffic down 2.1 pct

(Reuters) - As a result, average loadings fell 1.5 percentage points to
73.3 percent of capacity.




"The unusual timing of bank holidays in the UK and
continental Europe, continuing carry-on baggage restrictions at
Heathrow and the weak U.S. dollar also impacted volumes in May
2007," BA said in a statement.


Read more at Reuters.com Market News

Foreign direct US investment rose 77 pct in 2006

(Reuters) - Such outlays peaked at $335.6 billion in 2000, then fell
sharply to $54.5 billion by 2002, which was their lowest level
since 1994, according to the Commerce Department's Bureau of
Economic Analysis.




The largest increase in 2006 foreign direct investment came
from European investors, whose outlays grew by $53 billion to
$109.9 billion. Overall, European outlays accounted for about
two-thirds of the total.


Read more at Reuters.com Government Filings News

Canadian Stocks May Fall, Led by Energy Producers, on Declining Oil Prices

(Bloomberg) -- Canadian stocks may decline from a
record, led by energy producers including EnCana Corp., as crude
oil and natural-gas prices fell.

The Standard & Poor's/TSX Composite Index yesterday rose
27.37, or 0.2 percent, to 14,146.74 in Toronto. Canada's stock
benchmark is up 9.6 percent this year.


Read more at Bloomberg Stocks News

Procter & Gamble stands by 4th-quarter view

(Reuters) - The household products company, which makes brands including Gillette, Pampers and Tide, said it should earn 64 to 66 cents per share this quarter. Analysts, on average, expect a profit of 66 cents per share, according to Reuters Estimates.



Cincinnati-based P&G also said that it expects sales to rise 6 percent to 7 percent in the quarter. It plans to release full quarterly results on Aug. 3.


Read more at Reuters.com Market News

European Stocks Fall for Second Day; Ryanair, E.ON, Man Group Pace Decline

(Bloomberg) -- European stocks declined after Ryanair
Holdings Plc, the region's biggest low-fare carrier, forecast
losses and investors speculated rising interest rates will damp
profit growth.

Ryanair led the Dow Jones Stoxx 600 Travel & Leisure Index
to its biggest drop in almost three months. E.ON AG and Man Group
Plc paced a retreat by utilities and financial-services
companies, among the most sensitive to higher rates.


Read more at Bloomberg Stocks News

Inflation to ebb but risks remain: Bernanke

(Reuters) - Weakness in the housing sector is likely to restrain economic growth for longer than expected, Bernanke said.




"The adjustment in the housing sector is still ongoing, and the slowdown in residential construction now appears likely to remain a drag on economic growth for somewhat longer than previously expected," he said.


Read more at Reuters.com Bonds News

TREASURIES-Momentum, plus looming Bernanke, weigh on bonds

(Reuters) - Downward seems like the path of least resistance for bonds
these days, with analysts increasingly convinced that anemic
first-quarter growth was but a blip in an otherwise sound
recovery.




"The second quarter is looking a lot better," said Joseph
Di Censo, fixed-income strategist at Lehman Brothers. "The bond
market is also having a delayed reaction to stronger growth and
inflation outside the U.S."


Read more at Reuters.com Bonds News

U.S. Stock Futures Fall Before Services Report; Bed Bath & Beyond Declines

(Bloomberg) -- U.S. stock-index futures fell after
Bed Bath & Beyond Inc. said first-quarter profit missed its
forecast and as investors awaited a service-industry report that
may reduce the chances of an interest-rate cut this year.

Bed Bath & Beyond tumbled after the largest U.S. home-
furnishings retailer said profit fell short of its April
prediction as home sales slumped. Juniper Networks Inc. dropped
after UBS AG downgraded the world's second-biggest maker of
equipment for directing Internet traffic.


Read more at Bloomberg Stocks News

Sinotrans to shift key assets to HK unit in 2 yrs

(Reuters) - Sinotrans is joining several other state-run firms,
including the country's biggest car maker, SAIC, in shifting its
centre of gravity to listed units, via asset transfers, to
improve corporate governance and secure fund-raising channels.




The group is preparing to inject key operating assets into
its 57.9 percent-owned Hong Kong unit Sinotrans Ltd.
before 2009, but will not delist its domestic freight forwarding
unit Sinotrans Air Transportation Development Co. ,
Tao Suyun told Reuters on the sidelines of an industry forum.


Read more at Reuters.com Mergers News

GM investors to vote on governance change proposals

(Reuters) - The proposals are both non-binding, but their authors bet that winning support from shareholders at the annual meeting on Tuesday will send a message of investor unrest to management as GM continues to fight for market share.




The automaker is undergoing a massive restructuring to cut costs amid stepped up competition from Asian rivals.


Read more at Reuters.com Business News

Dana Gas Planning to Sell at Least $1 Billion of Five-Year Islamic Bonds

(Bloomberg) -- Dana Gas PJSC, a United Arab Emirates
natural gas processing and transport company, plans to sell ``at
least $1 billion'' of five-year convertible Islamic bonds to
finance expansion and diversify its sources of funding.

Sharjah-based Dana will seek shareholder approval for the
plan June 26 and is in talks with international banks to manage
the sale, it said in an e-mailed statement today.


Read more at Bloomberg Bonds News

U.S. Stock-Index Futures Are Little Changed; Avaya Rises as Dell Declines

(Bloomberg) -- U.S. stock-index futures were little
changed before a service-industry report that may help investors
gauge the strength of economic growth and its implications for
Federal Reserve decisions on interest rates.

Avaya Inc. shares advanced in Europe after the company
agreed to be acquired by Silver Lake Partners and TPG Inc. in the
largest leveraged buyout of a computer-networking company. Dell
Inc., the world's second-largest personal-computer maker, fell.
Merrill Lynch & Co. downgraded the stock.


Read more at Bloomberg Stocks News

Fiat, BT Group, Popolare Verona 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

Asian Stocks Rise to a Record, Led by Cnooc on Oil Price; Hon Hai Advances

(Bloomberg) -- Asian stocks climbed, sending a
regional benchmark to a record, after crude-oil prices traded
near a two-week high and HSBC Holdings Plc raised its targets for
Cnooc Ltd. and PetroChina Co.'s shares.

``Money is heading to commodity-related shares, pushing the
level of the overall market higher,'' said Terunobu Kinoshita,
who helps manage $785 million at Fund Creation Co. in Tokyo.
``Investors should anticipate further gains.''


Read more at Bloomberg Stocks News

French Stocks Including Renault Gain on Sales Outlook as Danone Slide

(Bloomberg) -- French stocks including Renault SA
gained. Groupe Danone dropped after it filed a U.S. lawsuit
against units of its Chinese partner, Hangzhou Wahaha Group.

Alcatel-Lucent slid as its shares traded without the right
to latest dividend.


Read more at Bloomberg Stocks News

UPDATE 1-KEPCO set to buy $100 mln Australia coal mine stake

(Reuters) - "We are in talks with Felix Resources. We expect to reach
an agreement in September," Lee Sang-Pal, KEPCO's general
manager of project development, told reporters at a Coaltrans
conference. He did not name the other firms in the consortium.




Lee said it was Felix's wholly owned Moolarben mine.


Read more at Reuters.com Mergers News