Rand steady on solid risk appetite

(Reuters) - South Africa's rand was steady on Monday, propped up by continued appetite for riskier assets after the Group of Eight finance ministers avoided discussing yen weakness over the weekend.

The rand was trading at 6.9914 to the dollar at 0640 GMT, 0.1 percent stronger than its previous New York close of 6.9975 and well off an intraday low of 7.08 hit on Friday.


Read more at Reuters Africa

European Government Debt Declines Before German Investor Confidence Report

(Bloomberg) -- European government bonds fell, sending
two-year yields to near the highest in almost five years, on
expectations the pace of economic growth will give the European
Central Bank scope to keep raising interest rates this year.

A report tomorrow will probably show German investor
confidence rose to an 11-month high in May. European debt fell by
the most last week in five after reports showed European economies
grew faster than forecast in the first quarter, and euro-region
inflation quickened. Futures prices show investors raising bets
the ECB will lift rates at least twice more this year.


Read more at Bloomberg Bonds News

NEC profit falls from audits, promises growth

(Reuters) - The company expects operating profit to rise 86 percent to
130 billion yen in the current business year, though that is
below the market consensus of 140.71 billion yen from 15 analysts
polled by Reuters Estimates.




Last year, NEC unnerved investors by restating its earnings
three different times. It had to correct past earnings after it
discovered an employee had inflated sales figures, and then
switched from U.S. to Japanese accounting rules in November. It
later had to correct its figures due to human error.


Read more at Reuters.com Market News

Merrill taking stake in hedge fund GSO -WSJ

(Reuters) - This deal will potentially give Merrill access to more
private-equity financings, the paper reported.




Merrill and GSO could not be reached immediately.


Read more at Reuters.com Mergers News

Google, Salesforce in talks to form alliance: WSJ

(Reuters) - The paper said one outcome could be a Web-based offering
that integrates some of Google's online services such as email
and instant-messaging with those of Salesforce.com, whose
customer-relationship management tools help salespeople track
their accounts.




Google and Salesforce.com could not be reached immediately
for comment.


Read more at Reuters.com Business News

ABN Amro, Arcelor, Axa, EMI, Metro, Nokia, SAP: European Equity Preview

(Bloomberg) -- The following stocks may rise or fall
in European markets. Prices are from the last close.

The Dow Jones Stoxx 600 Index added 0.9 percent to 393.95.
The Dow Jones Stoxx 50 Index climbed 1.1 percent to 3916.56. The
Euro Stoxx 50 Index, a benchmark for the 13 nations using the
euro, increased 1.2 percent to 4480.81.


Read more at Bloomberg Stocks News

Yuan Little Changed; China Says Wider Band Not a Signal for Faster Gains

(Bloomberg) -- The yuan was little changed after the
central bank said its decision to allow wider daily swings in the
currency wasn't aimed at boosting the pace of gains.

The change in the trading band to 0.5 percent from 0.3
percent ``doesn't mean the yuan will fluctuate by a lot or
appreciate by a large magnitude,'' the People's Bank of China
said in a statement in Beijing May 18. The yuan never gained by
the maximum amount under the previous limit.


Read more at Bloomberg Currencies News

UPDATE 1-TPG, Goldman unit, to buy Alltel in $25 bln deal

(Reuters) - TPG Capital and GS Capital
Partners will acquire Alltel for $71.50 per share in cash, the
company said.




Alltel's stock closed at $65.35 on Friday, with its shares
steadily climbing throughout the year on speculation of a
buyout.


Read more at Reuters.com Mergers News

Hologic to buy Cytyc for about $6.2 billion

(Reuters) - Hologic's core business includes units focused on mammography, breast biopsy and osteoporosis assessment. Cytyc's strengths include cervical cancer screening and preterm birth screening.




"Both Hologic and Cytyc provide some of the most advanced technology addressing women's health needs," said Jack Cumming, Hologic's chairman and chief executive officer, who will be CEO of the combined firm.


Read more at Reuters.com Business News

Paulson Is Running Out of Time to Show Results in Trade Talks With China

(Bloomberg) -- Henry Paulson says reducing trade
friction with the Chinese is mostly a matter of time --
something he is running out of.

Tomorrow, the U.S. Treasury secretary opens a two-day
meeting in Washington with China's top economic officials, the
second such gathering of his term and the first on U.S. soil.
After December talks in Beijing failed to produce the progress
Paulson wants, his strategy of seeking to coax policy changes
will now play out in direct view of members of Congress who
demand he employ a cudgel rather than persuasion.


Read more at Bloomberg Emerging Markets News

Asian Stocks Rise After U.S. Confidence Picks Up; Sony, Hyundai Motor Gain

(Bloomberg) -- Asian stocks rose for the first time
in five days after U.S. consumer confidence unexpectedly
improved, suggesting demand will strengthen in the region's
biggest export market.

Sony Corp. climbed to the highest in almost five years,
helped by a rating upgrade at HSBC Securities (Japan) Ltd.
Hyundai Motor Corp. gained after Woori Investment & Securities
Co. lifted its recommendation on the shares.


Read more at Bloomberg Stocks News

China shares sink on monetary tightening

(Reuters) - But many investors believe the tightening is designed partly to prevent a bubble building in the stock market, where the index soared 130 percent last year and a further 53 percent this year to last week's all-time, intraday high of 4,081.426.




By raising deposit rates more than lending rates, the central bank narrowed banks' lending margins. Banks are heavily weighted in the index, so the damage to their earnings may dampen the entire market.


Read more at Reuters.com Hot Stocks News

Malaysian Ringgit Gains After China Widens the Trading Band of the Yuan

(Bloomberg) -- Malaysia's ringgit rose for a second
day on speculation Asian currencies will benefit from China's
decision to widen the yuan's trading band.

The ringgit traded at 3.3951 against the dollar as of 8:25
a.m. in Kuala Lumpur, from 3.3975 on May 18, according to data
compiled by Bloomberg. The currency has risen for nine
consecutive weeks.


Read more at Bloomberg Currencies News

CIA briefing SEC monthly on terrorists: Barron's

(Reuters) - They are the first regular intelligence briefings for the SEC in history, Barron's said in its May 21 edition.




"The U.S. government's focus on money laundering and terrorist financing and other criminal activities in the capital markets has laid bare a good deal of activity of that sort," said Cox, who would not confirm whether terrorists were active or present in U.S. markets.


Read more at Reuters.com Business News

FEATURE-U.S. crime rises as police fight other threats

(Reuters) - The killing of the 22-year-old Kentucky native, who
recently graduated university with honors, in a tough
neighborhood in Boston's Dorchester district on March 24
sparked weeks of outcry in a city where the murder rate neared
a 10-year high last year.




Like Boston, many U.S. cities are struggling to stem a wave
of violent crime and murder that has raised questions of
whether police are fighting terrorism at the expense of street
crime, and whether a widening wealth gap feeds the problem.


Read more at Reuters.com Bonds News

Valero Energy Says Wet Gas Compressor Causes Flaring at a Texas Refinery

(Bloomberg) -- Valero Energy Corp., the largest U.S.
refiner, said a wet gas compressor caused flaring yesterday at
its refinery in Port Arthur, Texas.

The San Antonio-based company reported the incident in a
filing with the Texas Commission on Environmental Quality. The
company said it didn't know what caused the event.


Read more at Bloomberg Energy News

Japanese Yen, Singapore Dollar, Indonesian Rupiah: 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

WEEKAHEAD-Emerging debt to monitor China, US housing data

(Reuters) - China's central bank raised interest rates on Friday and
announced that the yuan would be allowed to trade more freely,
in another attempt to rein on its fast-growing economy.




Similar monetary-tightening actions by China had already
triggered a sell-off in emerging markets in February, as
investors worried that slower Chinese growth could mean lower
prices of commodities, and less revenue for emerging countries
that export them.


Read more at Reuters.com Bonds News

UPDATE 1-Iraq tenders for 30,000 tonnes of rice-US traders

(Reuters) - Bids were due May 30 either free-on-board or delivered to
the port of Umm Qasr. Iraq was seeking long-grain rice from the
United States, Argentina, Uruguay, Thailand, Pakistan and
India, according to traders who received a tender document.




Iraq's last purchase of U.S. rice was in March for 60,000
tonnes, traders said. Iraq has yet to finalize paperwork for
30,000 tonnes in that deal, traders said.


Read more at Reuters.com Bonds News

Iran inflation set to rise to 17%-bank official

(Reuters) - But Mojtahed, who heads a central bank monetary research
unit, warned that measures to bring down inflation could affect
growth and increase unemployment.




The Islamic state boasts huge energy resources but struggles
with double-digit inflation and jobless rates, as well as
international sanctions over its disputed nuclear programme.


Read more at Reuters.com Economic News

Warner may offer extra $197 mln for EMI: paper

(Reuters) - Last week people familiar with the situation said that EMI
had opened the door for suitors including Warner Music to
inspect the company's financial data.




Warner is widely considered by analysts to be the natural
home for EMI.


Read more at Reuters.com Business News

Ukraine seeks convertible hryvnia in 18 mths

(Reuters) - Speaking at the European Bank for Reconstruction and Development's annual meeting, Savchenko said it was important to secure government backing for the move.




He also noted that legislation to create partial convertibility was being held up by Ukraine's political crisis, with uncertainty over when the country will hold a general election.


Read more at Reuters.com Business News