European Stocks May Drop on Bond Yields; BP, Rio Tinto May Decline

(Bloomberg) -- European stocks may decline for a
fifth day, the longest rout in three months, after rising bond
yields weighed on equities in the U.S. and Asia.

BP Plc and Total SA may fall after crude oil dropped from a
nine-month high. Rio Tinto Group may lead mining shares lower
after copper slid in Asia. BNP Paribas SA may pace advancing
shares after Les Echos reported Societe Generale SA is studying a
possible bid for its larger banking rival.


Read more at Bloomberg Stocks News

UMC says May sales fall 3.3 pct from year ago

(Reuters) - Sales at United Microelectronics Corp. last month, down from T$8.504 billion a year ago, the company said on its Web site on Friday.



UMC's sales were T$8.131 billion in April this year.


Read more at Reuters.com Market News

SocGen mulling merger with BNP, bid possible-paper

(Reuters) - The newspaper said both a friendly deal and hostile bid were being examined but that Societe Generale's management was divided over the idea.



A Societe Generale spokeswoman could not immediately be reached for comment.


Read more at Reuters.com Mergers News

Copper Prices Fall on Concern China's Imports Slowing, Demand Weakening

(Bloomberg) -- Copper prices fell for a third day in
Shanghai on concern that buying by China, the world's biggest
consumer of the metal, may have plunged last month, signaling
weakening demand.

China's customs office is scheduled to issue import data for
May next week. Imports probably fell by at least 48 percent to
100,000 metric tons, compared with April's near-record levels,
after inventories increased and prices soared, traders and
analysts, including Xue Feng at Maike Futures Co., said June 6.


Read more at Bloomberg Commodities News

Barclays Capital Says 10-Year Treasury Yield Will Rise to 5.4% by Year-End

(Bloomberg) -- The yield on 10-year U.S. Treasuries
may rise to a five-year high of 5.4 percent by year-end as
unemployment falls and the Federal Reserve raises interest rates,
according to Barclays Capital Plc.

The Fed may increase its target rate for the overnight
lending rate between banks by a quarter of a percentage point in
both the third and fourth quarters of this year, and again in
the second quarter of 2008, U.K.-based Barclays said. That will
push up the yield on the benchmark 10-year note to the highest
since April 2002 and the two-year note to 5.42 percent, the most
since December 2000, the bank said.


Read more at Bloomberg Bonds News

Qualcomm says current quarter better than expected

(Reuters) - Keitel said that while the quarter was not yet over, firm orders and reports from licensees were very strong. Qualcomm's fiscal third quarter ends this month.




Banc of America analyst Tim Long said in a note to clients that the company could issue a statement increasing its guidance for the quarter in the next two weeks.


Read more at Reuters.com Market News

Wuhan Steel Says U.S. Allegations That China is Dumping Metal Are `Unfair'

(Bloomberg) -- Wuhan Iron & Steel Co., China's
third-biggest steelmaker by market value, said North American
steelmakers' allegations that Chinese companies are dumping
steel products in the U.S. are ``unfair.''

``Chinese steel exports have soared because of higher
global prices and demand,'' Zhao said by phone from central
Hubei province today.


Read more at Bloomberg Emerging Markets News

DaimlerChrysler recalls 1,443 sedans in China

(Reuters) - Imported Chrysler 300C cars were not affected, it added.




It did not say whether any accidents or personal injuries had been linked to the defect.


Read more at Reuters.com Business News

South Korean Stocks Snap Eight-Day Rally; Samsung, Hyundai Heavy Decline

(Bloomberg) -- South Korean stocks fell, snapping an
eight-day climb and dragging the key index down from a record.
Samsung Electronics Co. slid on concern rising global interest
rates will curb consumer spending and corporate profits.

Stocks also declined as some investors took advantage of
recent gains to sell. Posco and Hyundai Heavy Industries Co.
paced the retreat.


Read more at Bloomberg Stocks News

U.S. bans some cell phone imports in Qualcomm case

(Reuters) - The ban covers the sale of new cell phone models containing chips that infringe on a patent owned by Broadcom Corp. said.




Qualcomm and Verizon Wireless, the second biggest U.S. mobile service provider, said they planned to ask the Bush administration to invalidate the order.


Read more at Reuters.com Business News

Japanese Yen, Indian Rupee, China Yuan, Thai Baht: Asian Currency Preview

(Bloomberg) -- The following events and economic
reports may influence trading in Asian currencies today.

Exchange rates are from the previous session.


Read more at Bloomberg Currencies News

Australian Dollar Falls as High Yielding Assets Sold on U.S. Stock Drop

(Bloomberg) -- The Australian dollar snapped six days
of gains as a slump in U.S. stocks prompted investors to sell
higher yielding assets which they bought with money borrowed in
Japan.

The currency declined the most in three weeks as investors
pared positions in the so-called carry trade after the Dow Jones
Industrial Average fell 1.5 percent, the most in almost three
months. Australia's dollar reached an 18-year high yesterday as
successive days of economic data showed growth is accelerating
and employment had gained.


Read more at Bloomberg Currencies News

Mexico's Walmex same-store sales up 0.8 pct in May

(Reuters) - Mexico's slowing economy has been taking a toll on Walmex sales despite solid traffic and new marketing campaigns to stimulate shopping.



) Keywords: MEXICO WALMEX/


Read more at Reuters.com Market News

UPDATE 2-Amaranth seeks to dismiss San Diego lawsuit

(Reuters) - The San Diego Employees Retirement Association
sued Amaranth in March for $150 million in the first and so far
only investor lawsuit over the biggest hedge fund collapse
ever. The suit claimed Amaranth violated its investment
mandates by not maintaining proper portfolio diversity or risk
controls.




Greenwich, Connecticut-based Amaranth, which is in the
process of liquidating assets now valued at about $400 million,
said in Thursday's court filing in Manhattan that its offering
documents do not require it to maintain investment diversity as
the San Diego fund claimed. The case is being closely watched
in the hedge fund industry.


Read more at Reuters.com Bonds News

Lobbyists shape Senate immigration battle

(Reuters) - The bill, backed by President George W. Bush and a bipartisan group of lawmakers, ties tough border security and workplace enforcement measures to a guest-worker program and a plan to legalize an estimated 12 million illegal immigrants.




The proposal, which on Thursday fell 27 votes short of what was needed to move the bill toward a final vote, has split lawmakers and divided public opinion across the United States.


Read more at Reuters.com Bonds News

US STOCKS-Indexes sink on rising interest-rate fears

(Reuters) - The Dow Jones industrial average was down 198.94
points, or 1.48 percent, to finish unofficially at 13,266.73.
The Standard & Poor's 500 Index was down 26.66 points,
or 1.76 percent, to end unofficially at 1,490.72. The Nasdaq
Composite Index was down 45.80 points, or 1.77 percent,
to close unofficially at 2,541.38.




The three benchmark indexes suffered their biggest one-day
percentage losses since March 13.


Read more at Reuters.com Bonds News

Activision, US Airways, Smith Micro, Quest: U.S. Equity Movers Final

(Bloomberg) -- The following is a list of companies
whose shares had unusual price changes in U.S. exchanges today.
Stock symbols are in parentheses after company names. Share
prices are as of 4 p.m. New York time.

Activision Inc. (ATVI US) fell $1.11, or 5.7 percent, to
$18.46. The maker of video games such as ``Guitar Hero,'' said
the U.S. Securities and Exchange Commission escalated a probe of
backdated stock options, making it a formal investigation. As a
result, the SEC can subpoena witnesses and require the production
of documents in its probe of options grants, Activision said.


Read more at Bloomberg Stocks News

New Century bankruptcy examiner okayed by judge

(Reuters) - U.S. Bankruptcy Judge Kevin Carey, who sits in Wilmington,
Delaware, approved Missal's appointment, court papers show.




Missal will be responsible for investigating alleged
misconduct at Irvine, California-based New Century, which filed
for Chapter 11 protection on April 2 and is liquidating
assets.


Read more at Reuters.com Bonds News

UPDATE 1-Wall St. arbitration stacked against investors-study

(Reuters) - NEW YORK, June 7 - Investors have their ups and
downs in the market, but when it comes to resolving disputes with
Wall Street brokers, they seldom win, according to a critical
study to be released next week.




Investors and their lawyers for years have complained the
little guy doesn't get a fair shake from the arbitration system,
blessed by the U.S. Supreme Court two decades ago, when pursuing
complaints about faulty research, unauthorized trades and other
claims against brokers.


Read more at Reuters.com Government Filings News

Dollar Rises Most in Three Weeks Against Euro on Yield Premium, Rate View

(Bloomberg) -- The dollar advanced the most in three
weeks versus the euro as benchmark Treasury yields rose above 5
percent for the first time since August and speculation the
Federal Reserve will hold borrowing costs steady increased.

The extra yield investors earn on 10-year Treasuries over
similar-maturity European debt was the widest in almost two
months. The yen rallied against the euro and erased losses
versus the dollar as the worst three-day decline in U.S. stocks
since February reduced bets against Japan's currency.


Read more at Bloomberg Currencies News

Transat profit climbs, looking for acquisitions

(Reuters) - By Jennifer Kwan



TORONTO, June 7 - Transat AT Inc. , parent of airline Air Transat, reported a sharp jump in second-quarter profit on Thursday and said it continues to look for acquisition opportunities.


Read more at Reuters.com Mergers News

UPDATE 2-Transat profit climbs, looking for acquisitions

(Reuters) - TORONTO, June 7 - Transat AT Inc. , or
C$1.58 a share, for the period ended April 30, up from a profit
of C$42.8 million, or C$1.24 a share, for the same period last
year.


Read more at Reuters.com Market News

Homebuilders dragged down by Meritage, rate fears

(Reuters) - The U.S. housing market began declining last year as higher interest rates and home-price sticker shock spooked potential buyers. The meltdown in lending to those with checkered credit histories, also referred to as subprime borrowers, has exacerbated the drop.




Meritage warned on Wednesday that weaker sales and higher cancellation rates in the past two months would prevent it from achieving its April earnings and revenue forecasts.


Read more at Reuters.com Hot Stocks News

UPDATE 1-U.S. household wealth rise slows in Q1-Fed

(Reuters) - In its quarterly "Flow of Funds" report, the U.S. central
bank said household wealth rose by about $590 billion or 1.1
percent in the first quarter from a revised $55.59 trillion in
the fourth quarter of 2006.




Household net worth had increased by $1.31 trillion or 2.4
percent in the fourth quarter, according to the Fed report.


Read more at Reuters.com Bonds News

Chile's Peso Drops to One-Week Low on Stock Decline, Speculation on Rates

(Bloomberg) -- Chile's currency fell to a one-week
low on a drop in global stocks and speculation higher interest
rates will reduce demand for commodities such as copper.

The peso weakened for a fourth straight day after the yield
of the 10-year Treasury note rose above 5 percent for the first
time since August, pushing stocks lower. Copper, Chile's biggest
export, fell for a third day on speculation demand in China
demand will weaken as inventories build up.


Read more at Bloomberg Currencies News

Raw Sugar Falls in New York as India May Export as Much as 500,000 Tons

(Bloomberg) -- Sugar in New York fell for the seventh
time in eight sessions after India, the world's second-largest
producer, may export as much as 500,000 metric tons of the
sweetener in the year starting Oct. 1.

Indian Sugar Exim Corp., an industry-funded trading company,
won a contract to ship 200,000 tons to Dubai-based Al Khaleej
Sugar, Asia's largest refiner, Vinay Kumar, a Sugar Exim
spokesman, said today in a phone interview. The company said it
hopes to secure more orders when it starts shipments in December.


Read more at Bloomberg Commodities News

Colombia Peso Falls Most Since March Versus Dollar as Trade Deficit Grows

(Bloomberg) -- Colombia's peso fell by the most
since March on speculation dollar inflows will decline as the
nation's trade deficit widens.

The currency dropped a third straight day for the first
time since April. Colombia had a trade deficit of $812 million
in the first three months of the year after posting a $164
million surplus in the same period a year earlier, according to
a June 5 government report. A larger trade shortfall means
domestic companies have less foreign currency they need to sell.


Read more at Bloomberg Currencies News

Rand weaker vs dollar despite rate hike

(Reuters) - The South African rand drifted slightly weaker against the dollar on Thursday, with the strengthening impact of a central bank interest rate increase only seen filtering through later, traders said.

At 1510 GMT the local currency was at 7.21 to the dollar, 0.1 percent softer than its New York close of 7.2035 on Wednesday.


Read more at Reuters Africa

Canadian Stocks Fall on Interest Rate Concerns, Led by Bank of Nova Scotia

(Bloomberg) -- Canadian stocks fell for a third day,
led by Bank of Nova Scotia, after New Zealand increased interest
rates, stoking concern that rising borrowing costs around the world
may crimp corporate profits.

Interest-rate sensitive financial and utility companies such
as Brookfield Asset Management Inc. and Fortis Inc. led declines.
Industrial shares, among the most closely related to economic
expansion, also fell.


Read more at Bloomberg Stocks News

UPDATE 1-Wynn slows Macau expansion, plans buyback

(Reuters) - Wynn also said its board of directors approved a program
that will allow it to buy back up to $1.2 billion in stocks and
convertible bonds.




The casino operator said new restrictive visa requirements
imposed by the Chinese government had slowed travel to Macau
from nearby Guangdong province in the past few weeks.


Read more at Reuters.com Bonds News

Saks May same-store sales rise 37.5 pct

(Reuters) - Analysts on average, expected a 13.7 percent increase in the company's May same-store sales, according to estimates gathered by Reuters.



The company said sales from company-owned stores rose 39.4 percent to $248.9 million for the four weeks ended June 2.


Read more at Reuters.com Market News

Andina, Cemex, Tejicondor and TV Azteca: Latin American Equity Preview

(Bloomberg) -- The following stocks may make
significant gains or losses in Chile, Colombia and Mexico today.
Symbols are in parentheses after the company name, and stock prices
are from the last session. Brazilian markets are closed today for a
holiday.

Chile


Read more at Bloomberg Stocks News

FOKUS 1-Investoren- Vodafone soll bis zu 56 Mrd Euro ausschtten

(Reuters) - ECS-Chef Glenn Cooper sagte der Nachrichtenagentur Reuters,
die Gruppe betreibe keine großen Veränderungen im
Vodafone-Management und wolle den Konzern auch nicht zu einem
Übernahmeziel machen. Angestrebt sei lediglich ein Wechsel der
Strategie. Cooper sprach von "enthusiastischen" Reaktionen auf
seine Vorschläge. Ein geplantes Treffen zwischen Cooper und
Vodafone-Chef Arun Sarin hatte die Mobilfunkfirma jedoch
abgesagt.




Branchenexperte Morten Singleton von der WestLB zeigte sich
von den Vorschlägen der Investoren nicht begeistert, da der von
ECS angepeilte Schuldenberg ineffizient und risikoreich sein
könne: "Mit dem Säbelrasseln wollen sie in die Schlagzeilen, um
den Aktienkurs anzufeuern." So sei auch der Vorwurf übertrieben,
Vodafones Kapitalstruktur sei ineffizient.


Read more at Reuters.com Mergers News

J.C. Penney May same-store sales fall 2 percent

(Reuters) - The Plano, Texas-based company said total department store sales rose 0.3 percent in the four weeks ended June 2. Internet sales rose about 15 percent.



) Keywords: JCPENNEY SALES/


Read more at Reuters.com Market News

UPDATe 1-Family Dollar May same-store sales up 2.5 percent

(Reuters) - Analysts, on average, had been expecting a same-store sales
increase of 1.8 percent, according to a Reuters survey.




Family Dollar forecast a 1 percent to 3 percent increase in
June same-store sales.


Read more at Reuters.com Market News

RPT-TREASURIES-Yield curve breaches 5 percent as bonds dive

(Reuters) - It was the first time the entire curve was at or above that
threshold since July of last year.




Bonds have been battered in recent weeks by the possibility
that stronger economic data would prompt the Federal Reserve to
leave interest rates on hold for the foreseeable future.


Read more at Reuters.com Bonds News

Chico's May same-store sales down 2.9 pct

(Reuters) - Total sales for the four-week period ended March 3, rose 9 percent to $98.9 million, compared with $90.9 million for the comparable period a year ago.



Eight analysts, on average, had expected the company to post same-store sales increase of 2.3 percent, according to estimates gathered by Reuters.


Read more at Reuters.com Market News

U.K. Pound Declines After Bank of England Keeps Benchmark Rate Unchanged

(Bloomberg) -- The pound dropped against the dollar
and the euro after the Bank of England kept its benchmark interest
rate unchanged at a six-year high.

The nine-member Monetary Policy Committee, led by Governor
Mervyn King, kept the Bank Rate at 5.5 percent today, as predicted
by 58 of 62 economists in a Bloomberg News survey. The pound has
risen this year after two surprise increases in rates and a report
showing inflation at a decade high of 3.1 percent.


Read more at Bloomberg Currencies News

Funds keen on stocks, favour cash over bonds-HSBC

(Reuters) - Asked what asset allocation strategy they would adopt
in the second quarter of 2007, all of the managers said they were
overweight equities, unchanged from three months earlier.




By comparison, 74 percent said they were underweight bonds,
up from 63 percent a quarter earlier. Only 13 percent were
overweight and another 13 percent were neutral.


Read more at Reuters.com Bonds News

UPDATE 1-KKR seeks more Taiwan investments after Yageo deal

(Reuters) - TAIPEI, June 7 - KKR, one of the world's largest
private equity firms, said on Thursday it is aiming to make more
investments in Taiwan over the next six months, following its
first ever investment in the increasingly popular market.




Kohlberg Kravis Roberts & Co. [KKR.UL] announced its first
deal in Taiwan late on Tuesday, saying it would buy US$230
million of Yageo Corp.'s convertible bonds, which could
give it a 16.1 percent stake in the electronics parts maker.


Read more at Reuters.com Mergers News

Nickel slips after LME changes rules, copper steady

(Reuters) - Nickel fell two percent on Thursday after the London Metal Exchange changed lending rules to free up more metal, and copper was steady, analysts said.

The nickel market, with prices hitting $51,800 a tonne in May and rising some 40 percent this year, has been characterised by extreme tightness with low stocks in LME warehouses and strong stainless steel production in China.


Read more at Reuters Africa

Judge acquits Swissair chiefs in airline collapse

(Reuters) - Fischer awarded around 3 million Swiss francs in compensation to be shared among the defendants.




Switzerland's flagship airline Swissair collapsed in 2001 with around 17 billion Swiss francs in debt, due in part to an aggressive international expansion and a brutal downturn in the travel industry.


Read more at Reuters.com Business News

S.African gold output falls 8.2 pct yr/yr in April

(Reuters) - South African gold output fell 8.2 percent in volume terms while overall minerals production increased 0.6 percent in April compared with the same month the previous year, official data showed on Thursday.

Production of non-gold minerals rose by 2.1 percent in April, Statistics South Africa added.


Read more at Reuters Africa

FTSE 100 Index Gains, Led by Vodafone; BHP Billiton, DSG Shares Increase

(Bloomberg) -- U.K. stocks rose, led by Vodafone
Group Plc, the world's largest mobile-phone company. An
investor group called on the company to pay as much as 38
billion pounds ($76 billion) to shareholders.

BHP Billiton paced an increase in shares of mining
companies. FKI Plc declined.


Read more at Bloomberg Stocks News

Hodges Fund Delivers Top Returns With Burlington Northern, Union Pacific

(Bloomberg) -- The Hodges Fund, run by the father-
and-son team of Don and Craig Hodges, outperformed all but one
competitor in the past five years by buying unloved stocks,
especially railroads.

The $700 million fund's strategy is winning endorsements
from billionaire investors including Warren Buffett and Carl
Icahn. Both purchased shares of rail companies in the past six
months.


Read more at Bloomberg Stocks News

Estonian May Inflation Rate Rises, Moving Nation Further From Euro Goal

(Bloomberg) -- Estonia's inflation rate rose in May,
driven by fuel and housing costs, moving the Baltic state further
from its goal of adopting the euro.

The annual inflation rate increased to 5.7 percent from 5.5
percent in April, the statistics office based in the capital
Tallinn said on its Web site today. Prices rose a monthly 0.7
percent, with transport costs rising 2.5 percent from April.


Read more at Bloomberg Emerging Markets News

United Retail May same-store sales rise 4 pct

(Reuters) - United Retail is a specialty retailer of large-size women's
clothing, footwear and accessories.




Read more at Reuters.com Market News

European shares snap 3-day losing run, Vodafone up

(Reuters) - By 0715 GMT, the pan-European FTSEurofirst 300 index was up 0.5 percent at 1,594.1 after falling 1.6 percent in the previous session when it closed at its lowest since May 17. It fell as much as 2.6 percent this week but is still up 7 percent so far this year.




"There's a strong base effect due to oil prices and probably inflation rates will start to diminish in the second half of this year," said Thierry Lacraz, a strategist at Pictet & Cie.


Read more at Reuters.com Hot Stocks News

Clear Channel seeks wider French market share

(Reuters) - JCDecaux has a 57 percent market share.




"We want to reach a 50-50 situation and this target is
reachable within five years," Hubert Janvier said.


Read more at Reuters.com Business News