European Government Bonds Decline After Trichet Says Rates Support Growth

(Bloomberg) -- European government bonds dropped
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

FKI says to spin off Hardware and FKI Logistex

(Reuters) - FKI, whose products range from steel ropes to generators to hinges, was posting annual results showing pretax profit fell 7 percent to 65.3 million pounds in the year to end-March, on revenue up 8 percent to 1.33 billion pounds.



On May 31, FKI said it had been approached by an unnamed suitor with a proposal worth around 130 pence per share, or 765 million pounds. There has been talk since that FKI could be a target for U.S. conglomerate General Electric .


Read more at Reuters.com Mergers News

Japan's Technology Shares Drop, Led by Advantest; Trading Companies Gain

(Bloomberg) -- Japan's technology-related shares
such as Sony Corp. and Advantest Corp. declined after a higher-
than-forecast rise in U.S. labor costs fueled concern
accelerating inflation will prompt the Federal Reserve to
increase interest rates.

Limiting losses, trading companies advanced after Nikko
Citigroup Ltd. raised its rating on Sumitomo Corp. and Marubeni
Corp. Oil explorers such as Inpex Holdings Inc. rose along with
the price of crude oil.


Read more at Bloomberg Stocks News

Argentina, Colombia, Mexico and Venezuela: Latin American Bond Preview

(Bloomberg) -- The following events and economic
reports may influence trading in Latin American local bonds
today. Bond yields are from the previous session.

Argentina -- The government plans to sell as much as 1.5
billion pesos ($488 million) of five-year bonds in its first
fixed-rate bond sale since defaulting on $95 billion of debt six
years ago. Argentina will accept bids on the bonds through 1
p.m. New York time.


Read more at Bloomberg Bonds News

Asian Stocks Snap Five-Day Rally on Interest Rates Concern; Samsung Falls

(Bloomberg) -- Asian stocks fell for the first time in
six days after a higher-than-forecast gain in U.S. labor costs
fueled concern the Federal Reserve will follow the European
Central Bank and New Zealand in raising interest rates.

The Morgan Stanley Capital International Asia-Pacific Index
retreated from a record high, led by Nissan Motor Co. and Samsung
Electronics Co. Commonwealth Bank of Australia dropped after the
government said May employment rose almost four times as much as
economists estimated, adding to speculation the nation's central
bank will boost borrowing costs.


Read more at Bloomberg Stocks News

Stocks, bonds slip on interest rate worries

(Reuters) - The European Central Bank's interest rate hike on Wednesday and New Zealand's move to lift rates earlier, which sent its currency to a 22-year high, underscored a trend to rising borrowing costs around the globe.




With investors already fretting over rates, U.S. data released overnight, showing higher-than-expected labor costs, fuelled worries about inflation.


Read more at Reuters.com Hot Stocks News

New Zealand, Australian Dollars Climb as Rate Outlook Spurs Carry Trades

(Bloomberg) -- The New Zealand and Australian
dollars climbed as speculation interest rates will rise in both
nations encouraged investors to keep buying the currency with
money borrowed in Japan.

New Zealand's dollar, known as the kiwi, rose to 22-year
high after the central bank raised the benchmark rate to a
record 8 percent today, encouraging so-called carry trades.
Australia's dollar, the Aussie, reached the highest since 1989
as stronger-than-expected jobs data caused traders to increase
bets policy makers will raise borrowing costs from 6.25 percent.


Read more at Bloomberg Currencies News

Panama Canal expansion to begin August - official

(Reuters) - Dredging works at the southern mouth of the canal on the
Pacific will start in August instead of October as previously
announced, Panama Canal Authority deputy administrator Jose
Barrios said.




The first onshore excavation works are scheduled to begin
before the end of calendar 2007, Barrios told Reuters in an
interview.


Read more at Reuters.com Bonds News

Australian Stocks Drop for a Third Day, Led by BHP Billiton, Westfield

(Bloomberg) -- Australian stocks fell for a third day,
led by mining companies such as BHP Billiton Ltd. after prices of
metals including zinc and copper declined.

Stocks with U.S. earnings fell, led by Westfield Group, after
rising labor costs in the world's biggest economy fueled concern
the Federal Reserve will need to lift interest rates.


Read more at Bloomberg Stocks News

Chipmakers, Exporters, Daelim, Hyundai Heavy: South Korea Equity Preview

(Bloomberg) -- The following shares may rise or fall
in South Korea. Prices refer to the June 5 close. This preview
includes news announced after markets shut. Stock symbols are in
brackets after the company names.

The Kospi index climbed 0.3 percent to a record 1742.19. The
Kosdaq added 0.6 percent to 750.08. Kospi 200 futures expiring in
June rose 0.2 percent to 222.10, while the underlying index gained
0.2 percent to 222.37. Financial markets were closed yesterday for
a holiday.


Read more at Bloomberg Stocks News

UPDATE 1-Redstone:No plans to take CBS, Viacom private-CNBC

(Reuters) - Redstone controls Viacom and CBS through his privately held
National Amusements Inc.




"That has been suggested to me and Philippe and to Les,"
Redstone said on CNBC, in response to a reporter's question
about taking the companies private. "At the present time, we
really like the companies the way they are."


Read more at Reuters.com Mergers News

Ardepro, Iseki, Orix JREIT, Shinseido, NTT Data: Japanese Equity Preview

(Bloomberg) -- The following stocks may move in
Japanese markets tomorrow. Prices are as of the close of trading.
Statements were released after the close. Stock symbols are in
parentheses.

Ardepro Co. (8925 JT): The real estate company raised its
full-year net income forecast 14 percent to 7.48 billion yen
($61.6 million) and sales forecast 11 percent to 83.5 billion yen.
The stock rose 950 yen, or 2.3 percent, to 41,800.


Read more at Bloomberg Stocks News

Aspreva says FDA fast-tracks CellCept lupus drug

(Reuters) - Aspreva is evaluating CellCept for the treatment of lupus
nephritis in a global phase III study. Lupus nephritis is a
complication of systemic lupus erythematosusis involving severe
inflammation of the kidney and may progress rapidly to renal
failure.




Read more at Reuters.com Government Filings News

Mortgage Bondholders Should Bear More Risk of Subprime Defaults, Dood Says

(Bloomberg) -- The U.S. government can discourage
the type of flawed home loans that fueled a rise in subprime
defaults by making mortgage bond investors liable for deceptive
lending by banks, the Senate Banking Committee chairman said.

Investors in $6.5 trillion in mortgage backed securities
``have got to assume some responsibility,'' Senator Christopher
Dodd, a Connecticut Democrat, told reporters after a committee
hearing in Washington today. ``You have these mortgages being
held by the lending institutions for what, eight or ten weeks,
and then they're'' pooled and sold to investors who are
unaccountable for predatory lending.


Read more at Bloomberg Bonds News

UPDATE 1-Meritage says will not meet forecast

(Reuters) - The weak performance also increases the risk for larger
write-offs for options and impairment charges, the company
said.




On April 25, Meritage, which builds homes aimed at move-up
home buyers as well as the luxury market, said it expected to
earn between $2.00 to $2.50 per share for the full year. It
also forecast sales of 7,700 to 8,500 homes in 2007 for total
revenue of $2.4 billion to $2.7 billion.


Read more at Reuters.com Bonds News

Brazil's Real Drops to Three-Week Low on Concerns U.S. Rates Won't Fall

(Bloomberg) -- The real fell to a three-week low on
speculation the Federal Reserve may keep its benchmark interest
rate unchanged, reducing the allure of riskier, emerging-
markets.

Federal Reserve Bank of Cleveland President Sandra Pianalto
said the central bank ``cannot afford to be complacent'' about
inflation. U.S. labor costs rose 1.8 percent in the first
quarter, more than the 0.6 percent initially estimated, the
Labor Department said today in Washington.


Read more at Bloomberg Currencies News

Argentina to Sell Fixed-Rate Peso Bonds for First Time Since 2001 Default

(Bloomberg) -- Argentina plans to sell as much as
1.5 billion pesos ($488 million) of five-year bonds in its first
fixed-rate bond sale since defaulting on $95 billion of debt six
years ago.

The bonds, known as Bonars, will pay an interest rate of
10.5 percent, the Economy Ministry said in a statement.
Argentina will accept bids on the bonds through 1 p.m. tomorrow
New York time.


Read more at Bloomberg Bonds News

Chicago Board of Trade Says Intercontinental Chief Misled Its Shareholders

(Bloomberg) -- The top two executives at the Chicago
Board of Trade, subject of two competing takeover bids, said
Intercontinental Exchange Inc. Chief Executive Officer Jeff
Sprecher misled their shareholders in a meeting last week.

Sprecher is trying to break up CBOT Holdings Inc.'s
agreement to be acquired by its cross-town rival, the Chicago
Mercantile Exchange, for $10 billion. Sprecher, who has offered
$11.1 billion in stock for CBOT, met May 31 for over two hours
with more than 400 shareholders to field questions about his bid.


Read more at Bloomberg Energy News

American Eagle May same-store sales up 5 pct

(Reuters) - Analysts, on average, had expected an increase of 5.7 percent, according to a Reuters survey.



Total sales rose rose 18 percent to $199.2 million for the four weeks ended June 2, from $168.8 million in the comparable period a year earlier.


Read more at Reuters.com Market News

UPDATE 3-Panera cuts 2nd-quarter earnings view; shares fall

(Reuters) - Chief Financial Officer Jeff Kip said demand for new items
that are more expensive to make -- such as breakfast souffles
and "artisan-quality" muffins and scones -- was pinching profit
margins, or how much out of sales a company keeps in earnings.




"Our core business is under pressure and the newer pieces
are doing well," he said.


Read more at Reuters.com Market News

Canada job market set for modest rebound in May

(Reuters) - In a Reuters survey, analysts' average forecast is for the
economy to add 19,000 jobs in May after it lost 5,200 jobs in
April. However, the expected gains are still far from the
average monthly job gain of 52,600 in the first quarter.




The unemployment rate should stay unchanged at 6.1 percent,
a 30-year low, according to the survey.


Read more at Reuters.com Economic News

Barratt Developments to Replace Bradford & Bingley in FTSE 100, FTSE Says

(Bloomberg) -- Barratt Developments Plc, the U.K.'s
biggest homebuilder by volume, will replace Bradford & Bingley
Plc in the FTSE 100 Index, FTSE Group said.

The changes, announced today in a statement, follow a
quarterly review and will take effect on June 18. Joining the
index may lift Barratt shares because funds tracking the FTSE 100
need to own stock of its members.


Read more at Bloomberg Stocks News

Amazon, Borders, Netflix, NYSE Euronext, Whole Foods: U.S. Equity Movers

(Bloomberg) -- The following is a list of companies
whose shares are having unusual price changes in U.S. exchanges
today. Stock symbols are in parentheses after company names.
Shares prices are as of 1:10 a.m. New York time.

Acadia Pharmaceuticals Inc. (ACAD US) rose $1.51, or 12
percent, to $13.93 and traded as high as $14.40. The developer of
drugs to treat central nervous system disorders was recommended
by CNBC host Jim Cramer, who said the company will benefit from
three promising drugs in U.S. Food and Drug Administration
clinical trials.


Read more at Bloomberg Stocks News

EU regulators recall contaminated Roche HIV drug

(Reuters) - Patients taking Viracept, a first-line HIV therapy, are being urged to contact their doctor. British officials said they would have to change to another appropriate medicine.




Read more at Reuters.com Government Filings News

US STOCKS-Indexes slide on inflation, rate worries

(Reuters) - NEW YORK, June 6 - U.S. stocks slid sharply for a
second day on Wednesday after data showing higher-than-expected
labor costs fueled concern that inflation and rising interest
rates will hurt corporate earnings.




Energy stocks were among the heaviest drags on the S&P 500
after government data showed gasoline stockpiles rose by more
than analysts had forecast.


Read more at Reuters.com Bonds News

Ecuador Debt Tumbles as Probe of Finance Minister Renews Default Concerns

(Bloomberg) -- An Ecuador dollar bond lost 2.4
percent of its value after a congressional investigation of
Finance Minister Ricardo Patino's role in transactions involving
debt issues revived default concerns.

Congress yesterday began a political trial of Patino,
following the May 21 broadcast of a video showing him, a senior
aide and a former government official discussing a possible
securities transaction with several men, later identified as
bankers.


Read more at Bloomberg Bonds News

Crude Oil Futures Increase on Reports of Turkish Forces Crossing Into Iraq

(Bloomberg) -- Crude oil rose on reports that
thousands of Turkish troops moved into northern Iraq to chase
Kurdish guerillas.

Turkish troops crossed into Iraq in pursuit of members of
the Kurdistan Workers' Party, or PKK, the Associated Press
reported citing unidentified security officials. Iraq has the
world's third-biggest proved oil reserves, according to BP Plc.
Oil fell earlier on a U.S. report showing that gasoline supplies
surged last week as refiners cut operating rates.


Read more at Bloomberg Energy News

Morgan Stanley Recommends Cutting Stocks, Says Signs Point to Triple Sell

(Bloomberg) -- Morgan Stanley has recommended that
investors reduce their European share holdings after its three
leading warning signals all indicated for the first time in five
years that the stock markets will decline in the months ahead.

``Our indicators are suggesting an equity market
correction,'' wrote Morgan Stanley Chief European Equities
Strategist Teun Draaisma. ``Such a full house sell signal is
rare, and has occurred only five times since 1980.''


Read more at Bloomberg Stocks News

Nymex Gasoline Futures Decline After Larger-Than-Expected Inventory Rise

(Bloomberg) -- Gasoline futures fell to the lowest
in almost a month low after a U.S. Energy Department report
showed a bigger-than-forecast rise in U.S. supplies.

Gasoline stockpiles rose 3.51 million barrels last week to
201.5 million barrels, the report showed. The median of 14
estimates in a Bloomberg News survey of analysts indicated
supplies would rise 1.6 million barrels.


Read more at Bloomberg Energy News

European Bonds Gain on View ECB Rate Increases Will Quell Inflation

(Bloomberg) -- European government bonds rose after
comments by European Central Bank President Jean-Claude Trichet
failed to suggest the bank would need to raise interest rates
beyond this year to rein in inflation.

Yields on benchmark 10-year bunds, more sensitive to the
inflation outlook, fell from a three-year high after he said the
bank had kept its inflation forecast for 2008 unchanged. Trichet
left the door open for more interest rates increases this year
after the ECB lifted its refinancing rate a quarter point to 4
percent.


Read more at Bloomberg Bonds News

UPDATE 1-CBOT says ICE merger would put exchange at risk

(Reuters) - "We're not talking just about a dip in sales here, but the
potential permanent loss of our liquidity pools," Chief
Executive Bernard Dan and Chairman Charles Carey said in a
letter being distributed on the CBOT's trading floors.




"Our entire franchise would be at risk," they added.


Read more at Reuters.com Mergers News

Perrigo says wins lawsuit related to heartburn tablets

(Reuters) - The U.S. District Court for the Southern District of New
York ruled on Tuesday that the patent is invalid, the company
said in a statement. Following the FDA approval, Perrigo will
begin marketing Famotidine, it added.





Read more at Reuters.com Government Filings News

UPDATE 1-Canada Ivey purchasing index rises in May

(Reuters) - The index, a joint project of the Purchasing Management
Association of Canada and the Richard Ivey School of Business,
rose to 62.7 in May from 60.9 in April.




A reading of 50.0 indicates that activity remained flat
from the preceding month, while a higher reading indicates an
increase and a lower reading reflects a slowing or decrease.


Read more at Reuters.com Economic News

Subprime guidance seen 'largely intact'-FDIC's Bair

(Reuters) - Among controversial rules, the regulators are urging
lenders to qualify borrowers using adjustable-rate loans at the
highest rate the consumer would have to pay during the life of
the loan, instead of the initial "teaser" rate.




Read more at Reuters.com Bonds News

Two-Year Treasury Notes Attract Investors With Yield Near Nine-Month High

(Bloomberg) -- U.S. Treasuries maturing in two years
rose as yields near the highest in nine months attracted
investors after more than four weeks of losses.

The two-year security's yield touched 5 percent for the
first time since August yesterday as futures traders reversed
bets the Federal Reserve would lower interest rates this year.
Sandra Pianalto, president of the Fed's Cleveland Bank, said U.S.
inflation is faster than she'd like.


Read more at Bloomberg Bonds News

Crude Oil Is Little Changed; Report May Show U.S. Fuel Inventory Increase

(Bloomberg) -- Crude oil was little changed before
the release of a government report that is expected to show U.S.
fuel stockpiles rose as refineries increased operating rates.

Gasoline supplies gained 1.6 million barrels in the week
ended June 1, according to the median of responses by 14 analysts
surveyed by Bloomberg News. Refiners probably operated at 91.6
percent of capacity, the highest this year, the survey showed.
Tropical Cyclone Gonu is heading for the Strait of Hormuz, the
world's busiest oil shipping chokepoint.


Read more at Bloomberg Commodities News

Whole Foods drops after downgrade

(Reuters) - The stock fell to $39.70 in electronic trade from a close of $40.48 on the Nasdaq.




Read more at Reuters.com Hot Stocks News

US RATE FUTURES-Pressure from labor cost data

(Reuters) - First-quarter revised productivity rose 1.0 percent, just
below expectations, while unit labor costs were up by 1.8
percent against a consensus forecast of 1.2 percent.




Read more at Reuters.com Bonds News

Panera cuts second-quarter earnings view

(Reuters) - Panera, which runs a chain of bakery-cafes, now sees second-quarter earnings of 38 cents to 40 cents a share, down from its prior view of 47 cents to 51 cents a share.




For the second quarter, analysts on average were expecting earnings of 49 cents a share, excluding exceptional items, according to Reuters Estimates.


Read more at Reuters.com Market News

Euro Trades Near Three-Week High After ECB Raises Benchmark Interest Rate

(Bloomberg) -- The euro was little changed near a
three-week high against the dollar after the European Central
Bank lifted interest rates today as expected.

The single currency has rebounded this month from the lowest
in seven weeks against the dollar after a report showed economic
growth in Europe was faster than expected, outpacing the U.S. The
ECB raised its benchmark refinancing rate to 4 percent, the
highest in six years, to curb inflation.


Read more at Bloomberg Currencies News

Reliant to Sell $1.3 Billion of Bonds as Soon as Today: Company Bond Alert

(Bloomberg) -- Reliant Energy Inc., the largest
Texas power retailer, plans to sell as soon as today $1.25
billion of senior unsecured notes due in seven and 10 years to
repay debt.

Reliant and industrial tool-maker Actuant Corp. are among
borrowers seeking to raise at least $23 billion of bonds in the
U.S., according to data compiled by Bloomberg.


Read more at Bloomberg Bonds News

U.S. layoffs rise by 0.6 pct in May vs April-survey

(Reuters) - Firms in the computer sector announced the elimination of
13,631 jobs in May, nearly double the 7,161 announced by the
automotive industry, which ranked second in announced layoffs,
Challenger said.




"Heavy job cutting in the computer industry reflects a
slowdown in business spending on new technology," John A.
Challenger, chief executive officer of Challenger, Gray &
Christmas, said in a statement. "We may continue to see heavy
cuts in the months ahead with spending expected to remain soft
in the near future."


Read more at Reuters.com Bonds News

Camarco to hire more directors, to review business measures

(Reuters) - The company expects to hire the additional directors by the
end of the year, it said in a filing with the U.S. Securities
and Exchange Commission.





Read more at Reuters.com Government Filings News

U.S. Stock-Index Futures Drop Before Productivity Report; Entergy Declines

(Bloomberg) -- U.S. stock-index futures fell before
productivity and labor-cost reports that may validate the
Federal Reserve's concern that inflation is accelerating.

Shares of Citigroup Inc., the biggest U.S. bank by market
value, dropped in Europe. Financial-services stocks are among
the most sensitive to higher interest rates. Utilities including
FPL Group fell in Europe as higher yields reduced the
attractiveness of their dividends.


Read more at Bloomberg Stocks News

UPDATE 2-Market Chatter -- Corporate finance press digest

(Reuters) - ** Irish investment firm FL Group , the Times newspaper reported. A deal could be reached
within days, the newspaper added.







Read more at Reuters.com Mergers News

Nickel May Fall in London on Speculation Buyers Deterred; Aluminum Drops

(Bloomberg) -- Nickel may fall for a second straight
day in London on speculation that the metal's rally over the
past year high will deter buyers. Aluminum declined.

Stainless-steel mills, the largest nickel users, are
consuming inventories, reducing purchases and switching to
cheaper raw materials, Citigroup Inc. analysts Alan Heap and
Alex Tonks in Sydney said yesterday in a report. Supply will
rise in ``coming months,'' creating a surplus next year, they
said.


Read more at Bloomberg Commodities News

DEALTALK-TPG's acquisition of JVC stumbles over financing

(Reuters) - TOKYO, June 6 - U.S. private equity firm Texas
Pacific Group's [TPG.UL] bid for Japanese consumer electronics
maker JVC is struggling to win backing from lenders,
putting the roughly $560 million deal in jeopardy, sources
familiar with the matter say.




If TPG does not come up with a creative way to fund the
deal soon then the bidding may be reopened to other suitors,
with buyout house Cerberus [CBS.UL] and rival electronics maker
Kenwood Corp. seen as potential candidates.


Read more at Reuters.com Mergers News

CSC mulls iSoft bid

(Reuters) - "Computer Sciences Corporation continues to review its options in light of this objective, including its contractual rights and obligations, and does not exclude the possibility of making an offer for iSoft," CSC said in a statement, "Should such an offer be made, any consideration is likely to be solely in the form of cash and will not include any CSC publicly listed securities," it added.



) Keywords: CSC ISOFT/


Read more at Reuters.com Mergers News

Gold Climbs in London on Demand for Hedge Against Inflation; Silver Falls

(Bloomberg) -- Gold advanced in London for the first
time in three days on speculation accelerating energy prices
will spur demand for the precious metal as a hedge against
inflation. Silver declined.

Bullion has climbed 5.4 percent this year as crude oil rose
7.7 percent and demand from jewelers, the biggest gold users,
increased. Oil futures rose as much as 0.5 percent in after-
hours electronic trading on the New York Mercantile Exchange.


Read more at Bloomberg Commodities News

European Stocks Recoup Some Losses as Banca Italease and Zodiac Advance

(Bloomberg) -- European stocks recovered some losses
as Banca Italease SpA and Zodiac SA gained.

The Dow Jones Stoxx 600 Index fell less than 0.1 percent to
396.49 as of 8:29 a.m. in London after dropping as much as 0.2
percent. The Stoxx 50 added 0.1 percent, while the Euro Stoxx 50,
a measure for the 13 nations sharing the euro, lost 0.1 percent.


Read more at Bloomberg Stocks News

HSBC Says Buy Vietnam's Dong as Central Bank May Relax Currency Controls

(Bloomberg) -- Investors should buy the Vietnamese
dong to benefit from a possible relaxation of currency controls
as the central bank attempts to stem inflation, according to
HSBC Holdings Plc.

The State Bank of Vietnam, the country's central bank, has
allowed the dong to weaken about 1 percent against the dollar in
each of the last three years to promote exports and economic
growth. The inflation rate accelerated to a nine-month high of
7.3 percent last month as economic growth quickened, the
government said May 23.


Read more at Bloomberg Currencies News