China inflation hits 27-month high as food costs soar

(Reuters) - Inflation quickened to 3.4 percent last month from 3 percent in April, the National Bureau of Statistics said on Tuesday. Food prices, which make up a third of the consumer basket, rose 8.3 percent from a year earlier and a shortage of pork caused meat prices to jump 26.5 percent.




The overall inflation figure was in line with forecasts, but Shanghai's main stock market index fell more than 2 percent at one point on expectations of tighter monetary policy before regaining ground.


Read more at Reuters.com Business News

M.Stanley, Macquarie in race for S.Korea building

(Reuters) - South Korea's top lender, Kookmin Bank , and local
real estate company Koramco have also handed in bids by Monday's
deadline for the building, near the main rail station in central
Seoul, the source told Reuters.




Daewoo plans to pick the preferred buyer by July and complete
the deal by late August.


Read more at Reuters.com Mergers News

Bank of England's King Says May Need to Take `Further Action' on Inflation

(Bloomberg) -- Bank of England Governor Mervyn King
signaled U.K. interest rates may have to rise further from a six-
year high if measures of inflation pressures stay close to their
current levels.

``The Monetary Policy Committee will be watching closely
indicators of capacity pressures, pricing intentions and inflation
expectations,'' King said in a speech to business executives in
Cardiff, Wales, yesterday. ``If these indicators remain elevated,
the MPC may need to take further action.''


Read more at Bloomberg Bonds News

China's Steel-Product Exports Drop in May on Month After Tax Breaks Curbed

(Bloomberg) -- China, which supplies one-third of
the world's steel, exported 6.17 million metric tons of steel
products last month, the customs office said today, 14 percent
lower than April's record figure after tax breaks were cut.

Steel-product exports more than doubled to 27.4 million
tons in the first five months from a year earlier, the Beijing-
based office said today. The nation exported 7.16 million tons
in April, an all-time high, and 3.49 million tons in May of 2006.


Read more at Bloomberg Commodities News

JGB five-year yield hits all-time high at 1.530 pct

(Reuters) - The BOJ is increasingly expected to lift rates to a 12-year
high of 0.75 percent from 0.50 percent in the coming months.




Read more at Reuters.com Bonds News

Japan's Government Notes Fall on Speculation Traders to Hedge Before Sale

(Bloomberg) -- Japan's notes dropped on speculation
traders will sell the securities to protect against potential
losses at an auction of five-year government debt today.

Brokers bidding at the auction may reduce holdings in case
prices drop before they can pass on the 2 trillion yen ($16
billion) in new debt to investors. Japan's government bonds also
fell as comments by officials in the U.S. and Japan spurred
concern that global inflation may rise.


Read more at Bloomberg Bonds News

Korea Western Power Buys 279,000 Kiloliters of Fuel Oil for July-December

(Bloomberg) -- Korea Western Power Co., one of the
six generating units of Korea Electric Power Corp., bought
279,000 kiloliters (262,000 metric tons) of fuel oil for
delivery between July and December from SK Corp., said a company
official, who asked not to be identified.

The table below gives details of the purchase by the
company. The price includes duty and shipping costs for the
cargoes.


Read more at Bloomberg Energy News