Gold Little Changed in Asia as Investors Watch Oman Cyclone, Oil Price

(Bloomberg) -- Gold and silver were little changed in
Asia as investors sought direction from energy prices following a
cyclone in Oman and reports of a raid by Turkish troops in Iraq.

Gold generally moves in the same direction as oil which rose
amid a cyclone in Oman and threats of rising tension in the
Middle East following a raid by Turkish troops in Iraq, a source
of a third of the world's oil. Gold, which is also seen as a
haven in times of geopolitical tension, has risen 5.3 percent
this year while oil has gained 8.2 percent.


Read more at Bloomberg Commodities News

Dell to exit LCD television business: media

(Reuters) - A Dell spokeswoman said the company currently sells LCD TVs in a limited number of markets, including Japan and the United States, but had no comment about the Economic Daily report.




Dell entered the LCD television market in late 2003, amid a broader wave that also saw cellphone giant Motorola enter the sector in a bid to become more diversified providers of consumer electronics.


Read more at Reuters.com Business News

Crude Oil Rises on Concern U.S. Refineries Aren't Making Enough Gasoline

(Bloomberg) -- Crude oil rose in New York on concern
lower U.S. refinery usage will limit gasoline supply gains during
the peak summer driving season.

U.S. refinery utilization was at a less-than-expected 89.6
percent last week, down from 91.1 percent, the U.S. Energy
Department said. Prices rose yesterday following reports that
Turkish troops chased Kurdish guerrillas into northern Iraq.
Government officials from Turkey and the U.S. denied the attack.


Read more at Bloomberg Energy News

Housing Market in U.K. Isn't Overvalued, Former Rate-Setter Nickell Says

(Bloomberg) -- The U.K. housing market is not
overvalued, and prices may increase further in the next few years
because of a shortage of properties, former Bank of England
policy maker Stephen Nickell said.

``It might settle back a little, or remain relatively flat
for a bit, but I don't think there's any fundamental
overvaluation,'' Nickell, who served on the rate-setting panel
from 2000 to 2006, said in a telephone interview yesterday.
``Over the next few years it might keep on edging upwards.''


Read more at Bloomberg Bonds News

Asian Currencies Fall, Led by Malaysian Ringgit, as Global Stocks Decline

(Bloomberg) -- Asian currencies fell, led by the
Malaysian ringgit and Philippine peso, on speculation a drop in
global stock markets caused investors to sell riskier assets.

The Singapore dollar traded near the lowest in almost three-
months and the Thai baht had its biggest onshore fall since March
23 as declines in European and U.S. equities spilled over into
Asia. The Morgan Stanley Capital International Asia-Pacific Index
of shares snapped five days of gains.


Read more at Bloomberg Currencies News

Yen Erases Gains on Speculation Japanese Investors Sending Money Abroad

(Bloomberg) -- The yen erased an advance against the
dollar and euro on speculation Japanese investors keep sending
money abroad in search of higher returns.

Japan's currency retreated after a government report today
showed domestic investors last week bought the most foreign bonds
in three. The yield spread between benchmark two-year U.S. and
Japanese bonds held near a three-month high.


Read more at Bloomberg Currencies News

Malaysian Government Seeks $1.1 Billion for Fish Farming, Cattle Breeding

(Bloomberg) -- Malaysia's government is seeking 3.8
billion ringgit ($1.1 billion) in private funding for projects
including tropical fish farming and cattle breeding to boost
exports and safeguard domestic food supplies.

About 100,000 hectares, an area bigger than New York City,
has been earmarked across Malaysia to rear shrimp, ornamental
fish and seafood, Agriculture Minister Muhyiddin Yassin said in
an interview. He plans to more than double the value of fish
caught and produced to 6.6 billion ringgit by 2010.


Read more at Bloomberg Emerging Markets News

Treasuries May Rise on Speculation Asian Stock Losses to Spur Debt Demand

(Bloomberg) -- U.S. Treasuries may advance on
speculation a decline in Asian stock markets will increase demand
for the relative safety of government securities.

Yields near the highest in more than nine months may attract
investors for a second day after equity benchmarks from Tokyo to
Sydney tracked a slide in U.S. stocks. Shares in the U.S.
yesterday completed their biggest two-day decline since March
after first-quarter labor costs rose more than forecast.


Read more at Bloomberg Bonds News

Asian Stocks Snap Five-Day Rally; Toyota and Samsung Electronics Decline

(Bloomberg) -- Asian stocks fell for the first time in
six days after a higher-than-forecast increase in U.S. labor costs
fueled concern inflation will accelerate, prompting an increase in
interest rates.

The Morgan Stanley Capital International Asia-Pacific Index
retreated from a record high, following declines in the U.S. and
Europe. Toyota Motor Corp., which made more than one third of its
sales in North America last year, and Samsung Electronics Co.,
Asia's largest maker of chips, flat screens and mobile phones, led
declines.


Read more at Bloomberg Stocks News

Coles Credit Default Swaps Are Attractive on Takeover Risk, Merrill Says

(Bloomberg) -- Investors should buy credit-default
swaps linked to Coles Group Ltd., Australia's second-biggest
retailer, because a takeover led by Wesfarmers Ltd. may push its
debt rating below investment grade, said Merrill Lynch & Co.

The contracts, used to speculate on a borrower's ability to
repay debt, are near the lowest since December. Three potential
bidders left a rival buyout group last week after examining Coles
Group's finances. Wesfarmers, Australia's second-biggest home
improvement retailer, has a 12 percent equity stake in Coles and
must decide whether to submit a bid this month.


Read more at Bloomberg Bonds News

Ingersoll-Rand, Daimler Lead Worldwide Stock Gains by Shrinking

(Bloomberg) -- Some of the best-performing shares
worldwide this year belong to companies that are beating the
stock market by getting smaller.

Temple-Inland Inc., whose products range from paper to
loaning money, Ingersoll-Rand Co., a producer of construction
equipment and trucks, and German carmaker DaimlerChrysler AG are
leading gains worldwide as they spin off or sell units to
concentrate on more profitable businesses.


Read more at Bloomberg Stocks News

CVS Caremark says federal contract extended

(Reuters) - "We remain confident that we will achieve significant earnings growth in 2008 even without FEP's mail service program," CVS Caremark Chief Executive Tom Ryan said in a statement.




In a statement, CVS Caremark said the retail and clinical portion of the program generates about $4 billion of revenue each year.


Read more at Reuters.com Business News

U.S. accounting board to explore subprime concerns

(Reuters) - At the American Securitization Forum meeting on Wednesday,
FASB member Leslie Seidman said the board's staff plans to hold
an "educational forum" later this month with several interested
parties, to find out if the issues banks are complaining about
are related to legal or accounting concerns.




"Our staff has been getting many, many questions about
workouts," Seidman said.


Read more at Reuters.com Bonds News

New Zealand Dollar Rises to a 22-Year High After Central Bank Raises Rate

(Bloomberg) -- The New Zealand dollar rose to its
highest in at least 22 years after the central bank increased
interest rates, boosting the appeal of the nation's higher-
yielding assets.

Reserve Bank of New Zealand Governor Alan Bollard increased
the country's official cash rate a quarter-point to 8 percent
today in Wellington, saying there was not enough evidence of a
slowdown in the economy.


Read more at Bloomberg Currencies News

WRAPUP 1-LatAm stocks, currencies fall on U.S. rate woes

(Reuters) - Equity markets in Brazil and Mexico suffered the largest
losses in the region, tracking a decline of almost 1 percent on
Wall Street. Latin American currencies recovered part of their
losses in the afternoon, but still closed weaker.




"The end of optimism in U.S. markets encouraged adjustments
in Brazilian markets, with an immediate impact on the
currency," said Sidnei Moura Nehme, executive director of NGO
brokerage in Sao Paulo.


Read more at Reuters.com Bonds News

UPDATE 1-Hooker Furniture profit down on sales slump

(Reuters) - The furniture maker said it expected sluggish retail
conditions to continue through the summer, but added that
profitability should improve during the current year, which
ends Feb. 3, 2008, because of cost cuts and lower expenses.




Net income for the 13 weeks ended April 29 was $4.3
million, or 33 cents a share, down from $5.8 million, or 49
cents a share, for the three-months year-earlier period.


Read more at Reuters.com Market News

REFILE-SEC and hedge funds in talks over risks--SEC

(Reuters) - NEW YORK, June 6 - U.S. securities regulators,
looking to allay systemic risks posed by hedge funds, have
begun holding informal talks with some of the biggest funds, a
U.S. Securities and Exchange Commissioner said on Wednesday.




The talks, which have taken place in recent months, are
aimed at assessing leverage levels, risks to trading
counterparties like banks and securities firms, derivative risk
and other factors, according to Annette Nazareth, one of five
SEC commissioners.


Read more at Reuters.com Government Filings News

RPT-TREASURIES-Stock decline offers relief to bruised bonds

(Reuters) - NEW YORK, June 6 - U.S. Treasury debt prices rose
on Wednesday as a sell-off in the stock market stoked some
buying in bonds despite data signaling wage inflation
pressures.




Major Wall Street indexes shed nearly one percent, helping
Treasuries stabilize after their month-long decline driven by
fading prospects of a Federal Reserve interest rate cut this
year.


Read more at Reuters.com Bonds News

France Telecom to sell Orange unit to D. Telekom

(Reuters) - PARIS/FRANKFURT, June 6 - France Telecom , the French telecommunications group, plans to sell the Dutch unit of its Orange division to Germany's Deutsche Telekom.



France Telecom "intends a sale to Deutsche Telekom" of Orange Netherlands, a spokesman for Deutsche Telekom said on Wednesday, without giving more details.


Read more at Reuters.com Mergers News

Fed's Hoenig: U.S. current account deficit unsustainable

(Reuters) - The Fed bank president also said that the subprime market
is small enough that its troubles are unlikely to spread into
the overall economy.




Read more at Reuters.com Bonds News

Canada's Dollar Approaches 30-Year High on Outlook for Central Bank Rate

(Bloomberg) -- The Canadian dollar approached a 30-
year high against the U.S. currency as economists predicted
economic data this week will strengthen the case for an
interest-rate increase as soon as next month.

Canada's currency has advanced 9 percent against the U.S.
dollar this quarter as an accelerating economy pushed the
nation's two-year bond yield to a five-year high. Economists are
expecting gains in May employment and international trade when
Statistics Canada releases those numbers on June 8.


Read more at Bloomberg Currencies News

UPDATE 1-Penn National pay proposals rejected, union says

(Reuters) - The union, which represents many workers in the hotel and
casino industry, mounted a shareholder campaign against the
compensation plans, charging that they were excessive and
presented conflicts of interest.




The representative said the company announced the results
of the shareholder votes at its annual meeting in Philadelphia
on Wednesday, which was closed to reporters. Penn National did
not immediately return a call seeking confirmation.


Read more at Reuters.com Government Filings News

GMAC's ResCap says subprime mortgages at a dribble

(Reuters) - ResCap, a survivor of the crisis that sent dozens of
lenders out of business or into bankruptcy, is still working to
get its mortgage products "in front of customers," Wold said,
speaking at the American Securitization Forum's annual meeting
in New York. Subprime lending will pick up but probably won't
return to the "old" heyday, she said.




Read more at Reuters.com Bonds News

European Stocks Post Biggest Drop in Two Months on Interest-Rate Concern

(Bloomberg) -- European stocks posted the biggest
decline in more than two months on expectations the European
Central Bank will keep raising interest rates.

E.ON AG and Iberdrola SA led a drop by utilities, while BNP
Paribas SA and Spain's Banco Popular Espanol SA pushed banking
shares lower. Thales SA, Europe's largest defense-electronics
company, fell after Societe Generale SA downgraded the stock.


Read more at Bloomberg Stocks News

Canada Stocks Fall on Interest Rate Concern; Canadian National Rail Drops

(Bloomberg) -- Canadian stocks fell the most in almost
two weeks, led by Canadian National Railway Co., after the European
Central Bank raised interest rates, adding to concern that higher
borrowing costs will curb profits.

Interest-rate sensitive financial and industrial companies
such as Bank of Nova Scotia and Canadian National dropped.
Commodity producers including Suncor Energy Inc. and Teck Cominco
Ltd. fell as copper prices declined and crude oil was little
changed.


Read more at Bloomberg Stocks News

CORRECTED - US Airways May revenue lower year-on-year

(Reuters) - Airline President Scott Kirby said in a monthly traffic
report that revenue also slipped in May. He made a similar
statement in the April report. The April revenue decline capped
a long trend of monthly gains.




US Airways, the No. 7 U.S. Airline by revenue, is one of
only a few airlines that comment on revenue in their monthly
traffic reports. The company did not disclose the percentage
change in revenue.


Read more at Reuters.com Market News

Rand slips as dealers eye rates decision

(Reuters) - The rand weakened versus the dollar on Wednesday, flirting with the key 7.20 level as market nervousness prevailed ahead of the central bank's interest rate verdict on Thursday.

The rand traded in a six cent range in the session, dipping to 7.2130 earlier. It was trading at 7.2050 to the dollar at 1500 GMT, 0.56 percent softer than from its previous New York close of 7.1675.


Read more at Reuters Africa

Worker productivity weaker than prior estimate

(Reuters) - The Labor Department reported on Wednesday that non-farm productivity, a measure of how much any given worker can produce in an hour, advanced at a 1.0 percent annualized pace in the quarter, driving up unit labor costs by 1.8 percent.




Economists were expecting the Labor Department report to show weaker productivity and higher labor costs after the government reported gross domestic product growth of just 0.6 percent during the first quarter.


Read more at Reuters.com Hot Stocks News

Pfizer, Genentech Cancer `Cocktails' Overpower Stubborn Tumors in Tests

(Bloomberg) -- New cancer drugs from Pfizer Inc. and
Genentech Inc., tested together for the first time, raised each
medicine's tumor fighting power, researchers reported this week.

The therapy is heralding a new era in fighting cancer by
combining drugs that interfere with the biochemical pathways that
fuel cancer. By using Sutent, made by New York-based Pfizer, and
Avastin, from South San Francisco-based Genentech, researchers
say they achieved a 71 percent reduction in difficult-to-treat
kidney tumors in a small study.


Read more at Bloomberg Exclusive News

Cuomo says probing student loan underwriting

(Reuters) - The probe includes "what criteria are they using in doing the underwriting of student loans" as well as parental income, student income and student creditworthiness, Cuomo said. "We're investigating that now in the attorney general's office," he said.




Read more at Reuters.com Bonds News

Pound Gains Against Euro After Consumer Confidence Reaches 18-Month High

(Bloomberg) -- The pound rose against the euro and
traded near the strongest in a month against the dollar after a
report showed consumer confidence reached an 18-month high.

The U.K. currency has strengthened against the dollar so
far this quarter as traders bet the Bank of England will raise
interest rates at least once more this year. The central bank
will tomorrow hold rates at 5.5 percent, a six-year high, at a
policy meeting, according to a Bloomberg survey of economists.


Read more at Bloomberg Currencies News

Acadia, Johnson Controls, Matria, TAL, TD Ameritrade: 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 10:10 a.m. New York time.

Acadia Pharmaceuticals Inc. (ACAD US) rose $1.87, or 15
percent, to $14.30 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

Sugar Rises in London on Speculation Three-Session Slump Was Exaggerated

(Bloomberg) -- Refined sugar rose in London as
speculators took advantage of three days of declines to buy
futures contracts they deemed cheap relative to likely gains.

Expectations for rising exports from India and Brazil, the
world's biggest producers, drove white, or refined, sugar to the
lowest in a month yesterday. Some investors used the declines to
buy in order to honor bets that prices would fall, so-called
short positions, an activity known as short covering, said
Elizabeth Miller, director of research at RedTower Ltd.


Read more at Bloomberg Commodities News

Canadian Stocks Fall on Metals Prices, Led by Teck Cominco; Banks Decline

(Bloomberg) -- Canadian stocks declined for a second
day, as falling prices for copper and other industrial metals
dragged down shares of miners including Teck Cominco Ltd.

Speculation that the Bank of Canada may raise borrowing costs
weighed on the broader market. Financial shares such as Bank of
Nova Scotia fell.


Read more at Bloomberg Stocks News

Brazil's Real Drops for Third Day on Concerns U.S. Rates Won't Fall Soon

(Bloomberg) -- The real declined for a third day 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

Change skewed world order, says S.Africa's Manuel

(Reuters) - The world's poorer nations could disengage from globalisation and multilateral institutions if the current imperfect world order continues, South Africa's Finance Minister Trevor Manuel said on Wednesday.

"If we cannot fix what is so obviously imperfect, then the losers from globalisation will either shout more loudly, or they will disengage from the process," he said in a prepared speech ahead of this week's summit of the Group of Eight (G8) leading industrialised nations.


Read more at Reuters Africa

Google Growth May Depend on K Street Lobby Now Outflanked by AT&T, Verizon

(Bloomberg) -- Google Inc., the Web-search company
whose motto is ``Don't be evil,'' now has to confront the
realities of Washington to propel its stock further.

The 8-year-old company with a $162 billion market value
didn't open a lobbying office in the U.S. capital until 2005.
Now, as expansion plans invite government scrutiny, Google is
stepping up efforts to master a game political foes such as AT&T
Inc. and Verizon Communications Inc. have played for decades.


Read more at Bloomberg Exclusive News

Canada's Dollar Approaches 30-Year High on Outlook for BoC Rate Increaase

(Bloomberg) -- The Canadian dollar approached a 30-
year high against the U.S. currency on speculation the Bank of
Canada will boost interest rates as soon as next month.

Canada's currency has advanced 9 percent against the U.S.
dollar this quarter as an accelerating economy pushed the
nation's two-year bond yield to a five-year high today. A
measure of business and government spending probably increased
last month, a private report to be released today is forecast to
show.


Read more at Bloomberg Currencies News

Persian Gulf Firms May Boost Convertible Bond Sales After Stocks Plunge

(Bloomberg) -- Persian Gulf companies are poised to
increase sales of bonds convertible into shares, creating a
``multi billion dollar'' market for the securities within four
years, according to New York-based investment bank Jefferies
Group Inc.

Non-government companies in the Gulf have about $200 million
of convertible bonds outstanding, Christian Mouchbahani, the
investment bank's head of Middle East business, told reporters in
Dubai, United Arab Emirates yesterday. Demand for convertible
bonds is increasing as investors seek ways to profit from a
possible recovery in stock prices following a slump during the
past year, Mouchbahani said.


Read more at Bloomberg Bonds News

Treasuries Little Changed Before First-Quarter Worker Productivity Report

(Bloomberg) -- Treasuries were little changed before
a report that is forecast to show U.S. worker productivity last
quarter increased less than previously estimated.

The yield on the benchmark 10-year note was little changed
at 4.99 percent as of 8:07 a.m. in New York, according to bond
broker Cantor Fitzgerald LP. The price of the 4 1/2 percent
security due in May 2017 was unchanged at 96 6/32. Bond yields
move inversely to prices.


Read more at Bloomberg Bonds News

IBM to buy Watchfire security software firm

(Reuters) - NEW YORK, June 6 - IBM , the world's largest technology services company, said on Wednesday it will buy privately held security and compliance testing software company Watchfire Corp. for an undisclosed amount.



The deal is expected to close in the third quarter, International Business Machines Corp. said in a statement.


Read more at Reuters.com Mergers News

Dell to use deals to expand services: report

(Reuters) - "I think you will see some more acquisitions to add capability to our services team," he said.




Dell did not immediately return a call seeking comment.


Read more at Reuters.com Business News

U.S. mortgage applications declined last week - MBA

(Reuters) - A rise in applications to buy homes was overshadowed by the
drop in refinancing applications.




The MBA's seasonally adjusted purchase index rose 1.5
percent to 433.6 but the refinancing gauge fell 6.1 percent to
1,757.1 in the June 1 week. The refinancing measure has not
been lower since 1,640.4 at the end of last year.


Read more at Reuters.com Bonds News

Dubai Plans to Offer World's First Exchange-Traded Rupee Futures Tomorrow

(Bloomberg) -- Dubai Gold & Commodities Exchange
will tomorrow begin offering the world's first exchange-traded
futures contracts in Indian rupee, helping companies and
investors hedge against risks.

The contracts, linked to the future value of the rupee and
settled in euros, will trade in Dubai, United Arab Emirates,
David Rutledge, a director at DGCX, told reporters in Dubai
today. The market is outside the jurisdiction of India's central
bank, which places curbs on trading in the rupee, he said.


Read more at Bloomberg Currencies News

Inco Indonesia Raises Reserves Estimate as Technology Extends Mine Life

(Bloomberg) -- PT International Nickel Indonesia, the
country's largest nickel miner, raised the estimate of its
mineable reserves by a fifth as the use of newer technology has
helped extend the life of its mine.

The company has extractable mineral reserves of 177 million
metric tons of ore containing 1.77 percent nickel, President Arif
Siregar said at a mining conference in Manila today. That
compares with a 2005 estimate of 145 million tons of ore with 1.8
percent nickel.


Read more at Bloomberg Commodities News

Sistema's Yevtushenkov Says He Still Wants Link-Up With Deutsche Telekom

(Bloomberg) -- Russian billionaire Vladimir
Yevtushenkov's AFK Sistema is still interested in linking up with
Deutsche Telekom AG, Europe's biggest phone company by sales.

``Deutsche Telekom is interesting for us, but there are no
negotiations now on either the purchase of a stake or other forms
of economic cooperation,'' Yevtushenkov said in an interview.
``We are now waiting for the decision of the German government.''


Read more at Bloomberg Emerging Markets News

UK shares dip along with Europe before ECB verdict

(Reuters) - Britain's top share index dipped on Wednesday in sympathy with European stocks before a widely expected rate hike by the European Central Bank while also taking their cue from Asian and U.S. equity weakness.

At 0820 GMT, the FTSE 100 was down 0.47 percent, weighed by Vodafone, National Grid, Daily Mail, Entreprise Inns and Punch Taverns which are all going ex-dividend this session.


Read more at Reuters Africa

Warburg Pincus eyes stake in China retailer: source

(Reuters) - "The two parties have been in talks for several months, and the stake Red Star would likely sell is less than 50 percent," the source told Reuters on Wednesday.




Final details have yet to be set but the negotiations have reached a late stage, added the source, who asked not to be identified.


Read more at Reuters.com Mergers News

Japanese Two-Year Yields Climb Above 1 Percent for First Time Since 1997

(Bloomberg) -- Japan's two-year government notes
declined, sending yields above 1 percent for the first time in a
decade, on speculation faster global economic growth will prompt
the Bank of Japan to increase borrowing costs this year.

Debt in Japan tracked a drop in Treasuries that yesterday
boosted two-year yields to levels unseen since August, after an
index of U.S. service industries rose to the highest in more than
a year. Japan's two-year notes dropped and 20-year bonds gained
after Bank of Japan Governor Toshihiko Fukui yesterday said the
bank will ``take necessary action in a timely way.''


Read more at Bloomberg Bonds News

European shares dip before ECB rate decision

(Reuters) - European shares eased in early trade on Wednesday as investors braced for possible warnings on eurozone inflation from the European Central Bank chief after a policy meeting.

The corporate news flow slowed, allowing traders to focus on the upcoming ECB meeting, which is widely expected to result in a rate rise to 4.00 percent.


Read more at Reuters Africa

European Stocks Drop on Interest-Rate Concern; E.ON, Thales Shares Fall

(Bloomberg) -- European stocks declined for a third
day on expectations the European Central Bank will raise interest
rates today and signal further increases.

E.ON AG and Iberdrola SA led a drop by utilities, among
companies most sensitive to shifts in borrowing costs. Thales SA
fell after Societe Generale SA downgraded the stock.


Read more at Bloomberg Stocks News