Yen Weakens Against Dollar, Euro as Higher Rates Lure Japanese Investors

(Bloomberg) -- The yen weakened, snapping a three-day
rally against the dollar, on speculation rising global interest
rates will encourage Japanese investors to send money overseas.

The currency also reversed gains versus the euro as a
government report showed investors bought the most foreign debt
in three weeks at the end of May. New Zealand's central bank
today unexpectedly raised its key rate to a record 8 percent.
Australian jobs data prompted traders to bet policy makers will
raise the 6.25 percent benchmark borrowing cost.


Read more at Bloomberg Currencies News

Bull-Dog Sauce to propose equity warrants -source

(Reuters) - U.S. hedge fund Steel Partners launched a tender offer in May for all shares in the Japanese sauce maker.



) Keywords: BULLDOGSAUCE/WARRANTS


Read more at Reuters.com Mergers News

U.K. Pound May Decline Before Bank of England's Rate Decision on Key Rates

(Bloomberg) -- The pound may decline and gilts may
gain before the Bank of England's monthly meeting today, at which
policy makers are expected to keep interest rates on hold.

The U.K. central bank will leave borrowing costs at a six-
year high of 5.5 percent after four increases in the past year,
according to a Bloomberg survey of economists. The pound is
expected to slip on expectations for no change in lending rates,
after previously benefiting from two surprise increases in rates
and a report showing inflation at a decade high of 3.1 percent.


Read more at Bloomberg Currencies News

European Government Bonds May Fall After Trichet Says Rates Support Growth

(Bloomberg) -- European government bonds may fall
after European Central Bank President Jean-Claude Trichet said
euro-region interest rates are still low enough to help economic
growth, allowing for further borrowing-cost increases.

Two-year yields fell from a six-year high yesterday after
Trichet failed to signal the ECB will raise interest rates beyond
this year, and as it kept its inflation forecast for 2008
unchanged. Interest-rate futures show traders are betting on at
least one more quarter-point rate increase from 4 percent.


Read more at Bloomberg Bonds News

Hedge funds slam Bear over subprime losses-WSJ

(Reuters) - Hedge funds that had sold short such securities made
profits when an index tied to a basket of subprime bonds was
falling. But the index has recovered in recent weeks, leading
to howls of protest from hedge funds, according to the report.




The chief critic, John Paulson of Paulson & Co., a $12
billion fund, says Bear Stearns wanted to prop up faltering
mortgages-backed securities by purchasing individual mortgages
that were rapidly losing value to avoid doling out billions in
swap payments, the Journal reported.


Read more at Reuters.com Bonds News

Malaysian Ringgit Drops on Concern Fund Outflows to Continue; Bonds Slide

(Bloomberg) -- Malaysia's ringgit fell to a more than
seven-week low on concern local companies will sell the currency
to invest overseas. Government bonds slumped.

The ringgit headed for the biggest three-day drop since May
2006 after a trade ministry report on June 4 showed exports rose
less than expected. Tanjong Plc, a Malaysian power generation
group, on May 28 agreed to pay $493 million for Globeleq Ltd. to
acquire power plants in Eqypt, Bangladesh, Pakistan and Sri Lanka.


Read more at Bloomberg Currencies News

Carlyle, MBK Among Bidders for Taiwan's Unprofitable Ta Chong, People Say

(Bloomberg) -- Carlyle Group and MBK Partners Ltd.
are among private equity firms seeking to buy as much as 35
percent of Taiwan's unprofitable Ta Chong Bank Ltd., said three
people with knowledge of the matter.

Affinity Equity Partners and Japan's Orix Corp., which is
teaming up with buyout fund Longreach Group, may also submit
bids, the people said, asking not to be identified because the
sale process is confidential. The bidders are betting a revived
Ta Chong may become a target for a larger bank, they said.


Read more at Bloomberg Emerging Markets News