JGB 2-year yield scales decade-high on rate worries

(Reuters) - A steady rise in U.S. and euro zone government bond yields
helped fuel concerns the BOJ could raise rates to a 12-year high
of 0.75 percent as soon as August from the current 0.50 percent.




Ten-year JGB futures recovered from a 10-month low hit
earlier in the session as dealers covered short positions,
thinking that the sell-off over the past two weeks may have been
overdone, but gains were limited due to persistent rate worries.


Read more at Reuters.com Bonds News

Japanese Five-Year Yields Near Highest Since July on Outlook for Exports

(Bloomberg) -- Japan's five-year note yields held near
the highest since July after a report showed U.S. service
industries grew at the fastest pace in more than a year, adding to
optimism exports will help sustain Japan's economic expansion.

Debt in Japan followed a slump in Treasuries that yesterday
pushed two-year U.S. yields to the highest since August. Japan's
two-year yields climbed above 1 percent today for the first time
in a decade on speculation signs of faster global growth will
prompt the Bank of Japan to increase borrowing costs.


Read more at Bloomberg Bonds News

U.S. lawmakers to grill Glaxo, FDA on diabetes drug

(Reuters) - A furor erupted last month when a Cleveland Clinic analysis linked Avandia to a 43 percent higher chance of having a heart attack. The Food and Drug Administration and Glaxo say other data provided conflicting evidence.




Glaxo has said it gave regulators information in August 2006 that estimated a 30 percent higher heart-attack risk with Avandia. Some critics question why neither the FDA nor Glaxo alerted patients sooner.


Read more at Reuters.com Government Filings News

European Central Bank Will Probably Raise Rate Today, Signal Further Moves

(Bloomberg) -- The European Central Bank will
probably raise its benchmark interest rate to a six-year high
today and leave the door open for another increase to keep
economic growth from fueling inflation, surveys of economists
show.

ECB policy makers, led by President Jean-Claude Trichet,
will raise the benchmark rate by a quarter-point to 4 percent,
the highest since August 2001, according to all 52 economists in
a Bloomberg News survey. The Frankfurt-based bank will increase
its key rate at least once more this year, a separate survey
shows.


Read more at Bloomberg Bonds News

Euro Trades Near Three-Week High as Trichet May Signal Rate Increase Plans

(Bloomberg) -- The euro traded near a three-week
high against the dollar on speculation European Central Bank
President Jean-Claude Trichet will raise interest rates at a
meeting today and signal further increases.

The currency may reach a record high against the yen as the
ECB has expressed concern companies will raise prices during the
strongest period of economic growth this decade. The euro has
gained almost 13 percent versus the yen in the past year as the
interest-rate gap between Europe and Japan widened.


Read more at Bloomberg Currencies News

Chinese Regulator Tells Banks to Boost Fees to Compete With Foreign Firms

(Bloomberg) -- China's bank regulator told the
nation's large and medium-sized lenders to triple the share of
revenue they get from non-interest income over the next five to
10 years, which would bring them more in line with foreign banks.

Fees and commissions from services such as insurance and
mutual fund distribution should account for half of revenue at
nationwide banks, up from the current 17 percent, Tang Shuangning,
vice chairman of the China Banking Regulatory Commission, said in
a statement. City commercial banks should boost the ratio to 20
percent from the current 3.7 percent, he said.


Read more at Bloomberg Emerging Markets News

Australia's S&P/ASX 200 Falls, Led by Toll; Woolworths, Telstra Decline

(Bloomberg) -- Australia's benchmark S&P/ASX 200 Index
fell. Toll Holdings Ltd. dropped, weighing on the benchmark, as
its spin-off Asciano Group traded separately for the first time.

Woolworths Ltd. and Telstra Corp. led declines among stocks
that rely on domestic demand as Australia's economy accelerated
faster than expected in the first quarter, stoking concern
interest rates may rise.


Read more at Bloomberg Stocks News

Dollar steadies from 2-day slide, ECB hike eyed

(Reuters) - "Some may think that the credit tightening phase is over if the word accommodative disappears from the statement, but I do not think that would be the case," said Toru Sasaki, chief forex strategist at JPMorgan Chase in Tokyo.




Sasaki noted that the Federal Reserve dropped the word "accommodative" from its statement in December 2005 but went on to raise rates by another percentage point before finally stopping at 5.25 percent last year.


Read more at Reuters.com Hot Stocks News

Marubeni-Led Team Close to Winning $3 Billion Power, Water U.A.E. Project

(Bloomberg) -- Marubeni Corp., Japan's fifth-biggest
trading company, said it is close to winning a contract to build
and operate a $3 billion power and water desalination plant in
the United Arab Emirates with the U.K.'s International Power Plc.

The two companies are likely to be awarded a contract in
July for the project, a spokesman at the Japanese trading house,
who asked not to be named because of company policy, said by
phone today. The companies are set to own 20 percent each of a
venture with the government, the spokesman said.


Read more at Bloomberg Energy News

Transaction Systems cuts calendar '07 earnings view

(Reuters) - Earnings, excluding items, is expected to be $1.51 to
$1.80, down from the earlier forecast of $1.57 to $1.86 a
share, Transaction Systems said in a statement.





Read more at Reuters.com Market News

Japanese Stocks May Fall as Rising Interest Rates Prompt Investor Caution

(Bloomberg) -- Japanese stocks may slip on concern
rising interest rates globally will reduce the demand for shares
as yields on bonds become more attractive and higher borrowing
costs decrease investors ability to purchase equities.

Shares that have attracted the most buying this year,
including shipping companies and steelmakers, may lead declines. A
measure of shipping lines included in the Topix has climbed 53
percent so far in 2007, while steel producers rose 26 percent.


Read more at Bloomberg Stocks News

Coke vows to reduce water used in drink production

(Reuters) - The world's top beverage company will also put more effort
into recycling the water it uses in manufacturing and spend $20
million protecting seven major watersheds around the world with
the World Wildlife Fund, said Chief Executive E. Neville
Isdell, at a news conference on World Environment Day.




"I don't see in the short-, or even in the medium-term,
that it's going to threaten our business, but in the long-term
it is," Isdell told Reuters after making the announcement,
referring to water shortages.


Read more at Reuters.com Business News

Anheuser-Busch Options Surge on Report That Activist Ackman May Buy Stake

(Bloomberg) -- Trading in options to buy Anheuser-
Busch Cos. shares surged to a record after the New York Post
reported activist investor William Ackman may buy a stake in the
world's second-largest brewer.

Ackman, general partner of Pershing Square Capital
Management who lobbied for change at Wendy's International Inc.
and McDonald's Corp., has raised $2 billion to buy a stake in a
company that has a market value of $30 billion to $40 billion,
the Post reported today. The target may be Anheuser-Busch,
Starwood Hotels & Resources Worldwide Inc., Marriott
International Inc. or Kraft Foods Inc., the Post said.


Read more at Bloomberg Stocks News

Big aviation security proposals not sure thing

(Reuters) - Authorities were quick this week to note that an alleged plot to blow up a fuel line to New York's John F. Kennedy airport was disrupted by good intelligence and effective investigation.




Homeland security planners prefer to emphasize those methods over expensive passenger and bag screening, and other touted initiatives that remain unfinished because of costs, politics or public outcry.


Read more at Reuters.com Government Filings News

RPT-TREASURIES-Bonds fall, yields hit 5 pct on strong ISM data

(Reuters) - By Richard Leong




NEW YORK, June 5 - U.S. Treasury debt prices fell
on Tuesday, as data showing unexpected strength in the service
sector supported the view of a rebound in second-quarter
economic growth and sent short-term yields to 5 percent.


Read more at Reuters.com Bonds News

Guess quarterly profit rises

(Reuters) - The Los Angeles-based company reported first-quarter net earnings of $35.5 million, or 38 cents a share, compared with $20.7 million, or 23 cents a share, for the recast quarter ended April 29, 2006.






Read more at Reuters.com Market News

GM CEO touts progress at annual meeting

(Reuters) - Speaking to investors CEO Rick Wagoner said GM, which lost
more than $12 billion in the past two years, had made "major
progress" in its restructuring -- a plan that includes slashing
more than 34,000 jobs and closing 12 plants.




GM cut structural costs by $6.8 billion in 2006 and Wagoner
told shareholders the automaker is on track to reach its target
of cutting those costs by an additional $2.2 billion this year.


Read more at Reuters.com Business News

Hedge Funds Dominance in Credit Market May Spur Defaults, Fitch Says

(Bloomberg) -- European Central Bank chief Jean-
Claude Trichet has parried criticism from Nicolas Sarkozy, the
new president of his native France. Fresh doubts from Trichet's
protege at the French central bank may be harder to ignore.

As the ECB prepares to raise its key interest rate to a
six-year high of 4 percent tomorrow, Trichet's faith in the
importance of money supply is being questioned by Christian
Noyer, 56, who succeeded him as governor of the Bank of France
and sits with him on the ECB's governing council.


Read more at Bloomberg Bonds News

Anheuser-Busch at all-time high on Pershing story

(Reuters) - The New York Post reported that Pershing, led by founder William Ackman, has raised $2 billion for a fund that will be dedicated to targeting a shareholder activism assault on "one specific, iconic, American company."




The story cited potential investors in the fund as saying the company Ackman will target has a division that has "to have its value unlocked," a division to be sold and one division that is "is misunderstood."


Read more at Reuters.com Hot Stocks News

AMD shares fall on report of chip delay

(Reuters) - An AMD spokesperson could not be immediately reached for comment.




Previously, the chip had been expected in June or July. Young, citing several unnamed sources, said there are problems getting enough working chips out of a silicon wafer, a measurement known in the chip industry as yield.


Read more at Reuters.com Hot Stocks News

UPDATE 1-Higher prices help lift Saputo profit 67 pct

(Reuters) - Saputo, one of North America's largest cheese producers,
earned C$62.9 million , or 60 Canadian cents a
share, in the three months ended March 31. This was up from a
profit of C$37.7 million, or 36 Canadian cents a share, in the
corresponding period a year earlier.




Analysts had expected Saputo to earn 55 Canadian cents
before exceptional items, according to Reuters Estimates.


Read more at Reuters.com Market News

Senate farm chief sees lower US crop subsidy limit

(Reuters) - Chairman Tom Harkin told reporters the lower ceiling would
be coupled with elimination of loopholes that allow growers to
evade payment limits altogether.




Congress must write a new farm policy law this year,
creating the opportunity for lawmakers to review crop subsidy
limits. Senators voted for a $275,000 a year "hard cap" with
few exemptions during work on the 2002 farm subsidy law.


Read more at Reuters.com Bonds News

Chrysler sales ex-North America rise 24 pct in May

(Reuters) - Sales in western and central Europe, the company's most important foreign market, grew 13 percent in May and 11 percent in the first five months.



The Dodge Caliber remained its top seller outside North America this year, with 13,265 units sold by the end of May.


Read more at Reuters.com Market News

London Tube contractor seeks cost overrun solution

(Reuters) - By Elena Moya



LONDON, June 5 - The company responsible for maintenance on most of the London Underground has hired an adviser to help it prevail in a third-party review over disputed cost overruns after banks cut off its funding.


Read more at Reuters.com Bonds News

European shares fall as inflation jitters mount

(Reuters) - European shares fell for the second day in a row on Tuesday as investors grew wary of the European Central Banking issuing a warning on inflation when it holds an interest-rate meeting on Wednesday.

The largest decliner on the broader market was Irish low-cost airline Ryanair, which fell 7 percent after warning profit growth would slow this year as higher interest rates curbed consumer spending.


Read more at Reuters Africa

Polish Zloty Falls Versus Euro as Aversion to Emerging Market Risk Returns

(Bloomberg) -- Poland's zloty fell against the euro,
snapping three days of gains, as increased risk aversion among
investors returned to emerging markets.

The zloty, along with other emerging market currencies, has
declined as the recent slide in Chinese stocks led investors to
withdraw from riskier emerging market assets. The drop in Chinese
stocks has wiped out more than $500 billion of market value since
the government raised the tax on securities trading on May 30.


Read more at Bloomberg Currencies News

WRAPUP 1-Chile's economy holds strong, prices rise

(Reuters) - Chile's economic activity index, the IMACEC, rose 6.6
percent in April compared with a year earlier, maintaining this
year's strong growth after 6.6 percent growth in March, the
central bank said on Tuesday.




Also on Tuesday, the National Statistics Institute said the
consumer price index rose 0.6 percent in May, equal to the 0.6
percent in April, mostly amid rising transport and food costs.


Read more at Reuters.com Economic News

S.Africa economy grows but constraints lurk - Manuel

(Reuters) - South Africa must create more jobs and boost exports if it is to sustain growth in its economy which has expanded by around five percent a year in the last three years, Finance Minister Trevor Manuel said on Tuesday.

In a speech prepared for a bankers' conference, Manuel said increased confidence in the continent's biggest economy had improved its balance of payments position, with 144 billion rand worth of capital inflows in 2006.


Read more at Reuters Africa

Glaxo's Avandia Fuels Arguments in Congress for New U.S. Drug Safety Laws

(Bloomberg) -- Lawmakers are seizing on last month's
study linking GlaxoSmithKline Plc's diabetes drug Avandia and
heart risks to press for new U.S. drug-safety legislation.

The study, released May 21, showed that Avandia, the world's
best-selling diabetes pill, increased the risk of a heart attack
43 percent. Members of Congress are questioning the Food and Drug
Administration's handling of evidence of side effects since the
drug won U.S. approval in 1999.


Read more at Bloomberg Exclusive News

UPDATE 1-Inter-Tel says Vector Capital not to make any offer

(Reuters) - Vector's decision was based on recent events, including
former Chief Executive Steven Mihaylo's announcement on his
recapitalization plan for the company, Inter-Tel said in a
statement.




Mihaylo, the company's largest stockholder and founder, on
Monday urged Inter-Tel's stockholders to reject a $25.60 a
share offer from Mitel Networks Corp and accept his
recapitalization plan.


Read more at Reuters.com Mergers News

U.S. Stocks Retreat on Bernanke Comments; Bed Bath & Beyond Leads Drop

(Bloomberg) -- U.S. stocks dropped after Federal
Reserve Chairman Ben S. Bernanke said the housing slump may
hinder the economy longer than previously expected.

A gauge of retailers declined the most among 24 industries
in the Standard & Poor's 500 Index after Bed Bath & Beyond, the
largest U.S. home-furnishings chain, said falling home sales
hurt its earnings. Exxon Mobil Corp. led energy producers to the
biggest drop among 10 groups after oil prices declined.


Read more at Bloomberg Stocks News

Dutch parliament ends TNT's mail monopoly

(Reuters) - TNT currently has a monopoly on letters up to 50 grams --
around half of the 2 billion euro Dutch postal
market.




Read more at Reuters.com Government Filings News

Crude Oil Falls on Speculation U.S. Refineries Bolstered Gasoline Output

(Bloomberg) -- Crude oil fell on speculation that a
government report will show that U.S. refineries increased fuel
production.

Gasoline stockpiles increased 1.55 million barrels last
week, according to the median of responses by 12 analysts in a
Bloomberg News survey. Supplies of distillate fuel, a category
that includes heating oil and diesel, rose 800,000 barrels, the
survey showed. Prices also fell on reduced concern that Tropical
Cyclone Gonu will curb oil shipments from the Middle East.


Read more at Bloomberg Commodities News

Inter-Tel says Vector Capital not to make any offer

(Reuters) - Mihaylo on Monday urged the company's stockholders to
reject a $25.60 a share offer from Mitel Networks Corp.





Read more at Reuters.com Mergers News

U.K. FTSE 100 Index Drops, Paced by British Airways; Ryanair Shares Slide

(Bloomberg) -- U.K. stocks dropped for a second day,
paced by British Airways Plc and EasyJet Plc after Irish rival
Ryanair Holdings Plc said fiscal 2008 profit will grow at the
slowest rate in four years.

Land Securities Plc led real-estate companies lower for a
second day. Standard Life Plc and Old Mutual Plc advanced after
Merrill Lynch & Co. recommended investors buy the shares.


Read more at Bloomberg Stocks News

Forzani profit jumps on strong revenue

(Reuters) - TORONTO, June 5 - Forzani Group Ltd. , or 2 Canadian cents a share, for the period ended April 29, up from C$294,000, or 1 Canadian cent, in the same quarter a year earlier.


Read more at Reuters.com Market News

Felman Mall jumps, DuPont slips

(Reuters) - Shares of chemical company DuPont slipped 0.6 percent to $52.86 after Lehman Brothers cut its rating on the stock to "equalweight" from "overweight."




Read more at Reuters.com Hot Stocks News

Avaya, Bed Bath & Beyond, Juniper Networks, Openwave: U.S. Equity Preview

(Bloomberg) -- The following is a list of companies
whose shares may have unusual price changes in U.S. exchanges
today. This preview includes news that broke after exchanges
closed yesterday. Stock symbols are in parentheses after company
names.

Amgen Inc. (AMGN US): The world's largest biotechnology
company agreed to buy Ilypsa, a private company developing drugs
for kidney disorders, for $420 million. The stock lost 3 cents to
$56.91 in regular trading yesterday.


Read more at Bloomberg Stocks News

UPDATE 1-Commerzbank stock gains on Citibank talk-traders

(Reuters) - Citigroup and Commerzbank declined to comment on the
unsubstantiated talk.




Sources familiar with the matter played down the rumour.


Read more at Reuters.com Mergers News

Cache May same-store sales fall 2 pct; cuts 2nd-qtr view

(Reuters) - The New York-based retailer now sees second-quarter
earnings of 6 cents to 8 cents a share, down from its earlier
view of 20 cents to 24 cents a share.





Read more at Reuters.com Market News

UPDATE 1-Intel, Asustek announce plans for low-cost laptop

(Reuters) - SAN FRANCISCO/TAIPEI, June 5 - Intel Corp. .


Read more at Reuters.com Mergers News

Bear Stearns Forms Saudi Arabian Asset Management Firm With Zad Investment

(Bloomberg) -- Bear Stearns, the biggest broker for
U.S. hedge funds, signed an agreement to form a joint-venture
asset management company in Saudi Arabia with Zad Investment
Co., a privately-controlled investment company.

Bear Stearns Arabia Asset Management, which will be known
as BSAAM, will provide equity and fixed income investment
services to companies and individuals in Saudi Arabia, the
world's largest oil producer, the company said in an e-mailed
statement today.


Read more at Bloomberg Stocks News

European Stocks Rise, Led by Vodafone; Standard Life, BHP Billiton Gain

(Bloomberg) -- European stocks advanced on takeover
speculation in the telecommunications industry and as brokerages
advised investors to buy insurers and mining companies.

Vodafone Group Plc climbed after the Wall Street Journal
said the mobile-phone company could be worth more split into
parts, fueling speculation it may be taken over. Standard Life
Plc and Old Mutual Plc gained after Merrill Lynch raised its
recommendation on both shares. Mining stocks rose after Xstrata
Plc said it's prepared to make an acquisition and Citigroup Inc.
raised its recommendation on BHP Billiton's shares.


Read more at Bloomberg Stocks News

U.K. Pound Gains Versus Dollar on Speculation Bank to Raise Rate This Week

(Bloomberg) -- The U.K. pound advanced against the
dollar on speculation the Bank of England will increase interest
rates at its monthly meeting this week.

The currency also rose to the highest in almost 15 years
versus the yen, as a gain in equity markets encouraged so-called
carry trade investors to take advantage of low interest rates in
Japan to buy the pound and other higher-yielding assets. BOE
policy makers are due to announce their decision on U.K. borrowing
costs on June 7.


Read more at Bloomberg Currencies News

FTSE 100 Index Climbs, Led by United Utilities on Earnings; Vodafone Gains

(Bloomberg) -- U.K. stocks advanced, paced by United
Utilities Plc after the company said fiscal full-year profit
almost doubled. Standard and Life Plc and Old Mutual Plc climbed
after Merrill Lynch & Co. recommended investors buy the shares.

Vodafone Group Plc rallied on speculation the world's
largest mobile phone company may be a takeover target. Daily
Mail & General Trust Plc paced declining shares.


Read more at Bloomberg Stocks News

European Stocks Advance, Paced by Vodafone, Eni, Royal Bank of Scotland

(Bloomberg) -- European stocks advanced, led by
Vodafone Group Plc after the Wall Street Journal said the phone
company could be worth more split into parts. Eni SpA gained as
crude oil traded near a two-week high in New York.

Ryanair Holdings Plc dropped after Europe's biggest low-
fare airline forecast losses in the second half of the year.


Read more at Bloomberg Stocks News