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