Asian Stocks Drop, Led by Sony, DBS Group on Global Interest Rate Concern

(Bloomberg) -- Asian stocks fell this week, after
setting a new high, on concern rising global interest rates will
curb spending and investment worldwide. Sony Corp. and DBS Group
Holdings Ltd. declined.

``We are moving into a phase whereby long-term interest rates
will go a lot higher,'' said Chua Soon Hock, who manages about
$400 million at Asia Genesis Asset Management Pte in Singapore.
``You need to be defensive and preserve your capital.''


Read more at Bloomberg Stocks News

Gap Band singer sues EMI, Heineken over commercial

(Reuters) - Portions of the recording of "Beautiful" featuring vocal performances by Wilson and rapper Pharrell Williams were licensed by Capitol Records for the commercial without permission, the suit said.




The advertisement had been shown on American television and on the website www.heinekenlight.com, the suit said.


Read more at Reuters.com Business News

Canadian Stocks Have Steepest Weekly Decline Since March on Rate Concerns

(Bloomberg) -- Canada's main stock index had its
steepest weekly decline in three months on concern that
accelerating growth may feed inflation, causing interest rates to
rise and corporate profit growth to slow.

Financial shares such as Royal Bank of Canada had their worst
weekly drop in more than five years, even after they rebounded
today from four days of losses on speculation the selloff may have
been overdone.


Read more at Bloomberg Stocks News

Canadian Stocks Post Steepest Weekly Decline Since March on Rate Concerns

(Bloomberg) -- Canada's main stock index had its
steepest weekly decline in three months on concern that
accelerating growth may feed inflation, causing interest rates to
rise and corporate profit growth to slow.

Financial shares such as Royal Bank of Canada had their worst
weekly drop in more than five years, even after they rebounded
today from four days of losses on speculation the selloff may have
been overdone.


Read more at Bloomberg Stocks News

ADP does not see LBO as attractive option -- CEO

(Reuters) - "I can see strong organic growth for a long period of time
and the benefit to shareholders, particularly long-term
shareholders, is not
necessarily a good one," Butler said.




Read more at Reuters.com Mergers News

UPDATE 1-SXR Uranium One on lookout for Australian assets

(Reuters) - Speaking to reporters after a seminar in Toronto, Neal
Froneman said the company would like to achieve a "critical
mass" in Australia.




Uranium One already has assets in Australia, the United
States, Kazakhstan and South Africa, and last week offered to
buy Toronto-listed Energy Metals Corp. .


Read more at Reuters.com Mergers News

Gold Declines to 12-Week Low on Outlook for Interest Rates; Silver Drops

(Bloomberg) -- Gold fell to a 12-week low in New
York on speculation that higher global interest rates will
reduce demand for the precious metal as an alternative
investment. Silver tumbled the most in three months.

Traders assign a 44 percent chance that the U.S. Federal
Reserve will raise rates 25 basis points by December as of
yesterday, compared with zero chance a month ago, according to
options on Fed funds futures. Gold fell 3.9 percent this week
after the Reserve Bank of New Zealand and the European Central
Bank raised rates. Holding gold becomes less attractive when
interest rates rise because the metal has no fixed returns.


Read more at Bloomberg Commodities News

Auxilium, Bowater, Cascade, Limelight, U.S. Steel: 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.
Share prices are as of 1:20 p.m. New York time.

Auxilium Pharmaceuticals Inc. (AUXL US) rose $1.08, or 7.4
percent, to $15.59. The drugmaker said it would raise $49.9
million by selling about 3.7 million shares for $14.50 a share.


Read more at Bloomberg Stocks News

WRAPUP 1-Smaller U.S. trade gap signals stronger growth

(Reuters) - The trade gap narrowed 6.2 percent to $58.5 billion from a downwardly revised estimate for March, the Commerce Department reported on Friday, adding to signs that U.S. economic growth could top 3 percent in the second quarter.




"The latest data will lead to further upward revisions given the marked improvement in the real trade numbers," said Alan Ruskin, chief international strategist at RBS Greenwich Capital in Greenwich, Connecticut.


Read more at Reuters.com Economic News

UPDATE 1-Cascade shares touch life-high on robust results

(Reuters) - "The company is now generating positive operating income
from European sales, which has always been a troubled spot for
it," Rodman & Renshaw analyst Joe Giamichael said over phone.




A strong demand for lift trucks in Europe lifted the
company's sales in the continent by 25 percent to $41.6 million
for the quarter.


Read more at Reuters.com Market News

Akamai, Focus, Limelight Networks, Spartan, Qualcomm: 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.
Share prices are as of 11:40 a.m. New York times.

Cascade Corp. (CAE US) rose $6.53, or 9.9 percent, to
$72.23. The maker of lift attachments for trucks, based in
Fairview, Oregon, reported sales of $135.5 million and net income
of $23.8 million for the quarter ended April 30. Both surpassed
average analyst estimates compiled by Bloomberg.


Read more at Bloomberg Stocks News

U.S. 10-Year Treasuries Head for Biggest Weekly Decline Since March 2005

(Bloomberg) -- U.S. Treasury 10-year notes are poised
for their biggest weekly decline in more than two years, even
after recovering from early losses today, on concern that faster
economic growth will lead central banks to raise interest rates.

Ten-year notes, whose yields determine interest rates on
mortgages and corporate bonds, had their biggest slump in more
than three years yesterday. The yield touched 5.25 percent
earlier today, the highest since May 2002.


Read more at Bloomberg Bonds News

UPDATE 1 - Hub International sells $700 mln notes in 2 parts

(Reuters) - The sale was decreased in size from an initially planned
$790 million, the source added.




The offering included a $305 million 7.5-year senior note
issue priced to yield 9.00 percent or 3.85 percentage points
over U.S. Treasuries.


Read more at Reuters.com Bonds News

Fannie plans to be current filer by end-February

(Reuters) - NEW YORK, June 8 - Fannie Mae , the largest U.S. home finance company, said on Friday it expects to file its 2006 annual report during the third quarter and become a current filer by the end of February.



The company has previously said it expected to file its 2006 annual report by the end of this year. Fannie Mae has been late in filing its annual reports since an accounting scandal broke in 2004.


Read more at Reuters.com Market News

U.S. Treasuries Rise as Highest 10-Year Yields This Year Attract Buyers

(Bloomberg) -- U.S. Treasury 10-year notes rose as
the highest yield in almost a year attracted investors.

The advance pared the 10-year note's biggest weekly drop in
more than two years. Government debt markets in Japan, Germany,
Poland and South Africa also slid this week as investors,
anticipating faster expansion in the global economy, demanded
higher yields to compete with expected returns on riskier
investments.


Read more at Bloomberg Bonds News

Copper Tumbles Most in Two Weeks on Expectations of Rising Interest Rates

(Bloomberg) -- Copper futures in New York tumbled the
most in two weeks on expectations that rising borrowing costs in
major economies will slow economic growth and limit demand for
metals.

Copper, which generally moves in tandem with economic
growth, has gained 15 percent this year during a global
expansion. The U.S. Federal Reserve is unlikely to cut interest
rates before 2008, according to a Bloomberg survey. Economists
last month forecast a 25 basis-point cut in the fourth quarter.
The European Central Bank, the Reserve Bank of New Zealand and
South Africa's central bank raised interest rates this week.


Read more at Bloomberg Commodities News

UPDATE 1-Coeur says Bolnisi to extend due diligence period

(Reuters) - Last month, Coeur said it would buy Bolnisi Gold and
Palmarejo Silver and Gold Corp. in a deal worth $1.1
billion that would create the world's leading silver producer.




Palmarejo owns a major silver project in Chihuahua, Mexico,
that is expected to start production in late 2008 with an
annual rate of about 12 million ounces of silver and 110,000
ounces of gold.


Read more at Reuters.com Government Filings News

Al-Qaeda's Algerian Connection Raises Risks of Unrest Across North Africa

(Bloomberg) -- On April 11, three suicide truck
bombers hit in and around Algiers, killing 30 people. One bomb
blew up at the gates of Prime Minister Abdelaziz Belkhadem's
office, a French colonial palace on a hill.

The bombings were the work of Algeria's Salafist Group for
Preaching and Combat, an Islamic rebel group that has been
weakened by years of government crackdown. They may also be the
fruit of the recently formed alliance between the SGPC and al-
Qaeda, the global terror network headed by fugitive leader Osama
bin Laden.


Read more at Bloomberg Exclusive News

UPDATE 1-Canada April trade surplus rises on import decline

(Reuters) - Merchandise exports inched down 0.3 percent from the
previous month to C$40.67 billion, while imports slid 2.2
percent to C$34.91 billion. The resulting surplus was above
analysts' average forecast of C$4.9 billion, according to a
Reuters poll.




Exports, which account for about 40 percent of gross
domestic product, took a beating from a decline in automotive,
energy and forestry shipments. That weakness outweighed the
record high value for exports of industrial goods and
materials, led by metals.


Read more at Reuters.com Economic News

April trade gap shrinks more than expected

(Reuters) - The Commerce Department also revised its estimate of the
2006 trade deficit to $758.5 billion, from a previously
reported $765.3 billion.




U.S. exports rose slightly to a record $129.5 billion. The
0.2 percent increase partly reflected a $3 billion upward
revision in March exports to $129.2 billion.


Read more at Reuters.com Business News

Taiwan passes bankruptcy law for individuals

(Reuters) - "The groundbreaking thing about the bill is the bankruptcy
law. Taiwan has never had a bankruptcy law before," said Joanna
Lei, a legislator from the main opposition Kuomintang Party.




Many lenders in Taiwan posted big losses in 2006 after
writing off a combined T$150 billion
non-performing loans, most of which were for credit cards and
cash cards, industry sources said.


Read more at Reuters.com Government Filings News

Turkish Stocks Decline on Rising Bond Yields: World's Biggest Mover

(Bloomberg) -- Turkey's benchmark stock index dropped
for a third day as rising bond yields in the U.S. decreased the
appeal of riskier emerging-market assets.

Tupras Turkiye Petrol Rafinerileri AS, Turkey's biggest oil
refiner, and Turkiye Is Bankasi AS, the country's biggest bank,
paced the decline.


Read more at Bloomberg Stocks News

Corporate Bond Risk Jumps to Two-Month High in Europe, Default Swaps Show

(Bloomberg) -- The risk of owning European corporate
bonds jumped to the highest in two months on concern higher
interest rates will boost company borrowing costs, according to
traders of credit-default swaps.

Contracts based on 10 million euros ($13 million) of debt
included in the iTraxx Crossover Series 7 Index of 50 European
companies surged 11,500 euros to 217,000 euros, according to
JPMorgan Chase & Co. Contracts on the CDX North American
Crossover Index jumped $7,000 to $154,000 at the close of trading
in New York yesterday.


Read more at Bloomberg Bonds News

Merrill Lynch sets new investment bank leadership

(Reuters) - Amir Hoveyda will run the global financial institutions
group from London after serving as head of the EMEA debt capital
markets group.




Damian Chunilal will stay on as head of the Pacifc Rim
origination, based in Hong Kong, as well as chief operating
officer for the region.


Read more at Reuters.com Bonds News

Euro Slumps to Lowest in a Month Against Yen, Dollar After Stocks Drop

(Bloomberg) -- The euro dropped to its weakest in
almost a month against the yen and to the lowest in a week
against the dollar as European stock markets declined.

Global stocks have slumped and U.S. Treasury yields soared
to the highest in almost a year on expectations central banks
round the world will raise interest rates. The yen strengthened
against 15 of the 16 most actively traded currencies as the
decline in stocks prompted investors to sell higher-yielding
assets funded by borrowing at lower rates in Japan.


Read more at Bloomberg Currencies News

South African Bond Drop, Yields Climb to 2 1/2-Year High as Rates Lifted

(Bloomberg) -- South African government bonds fell by
the most in almost a year, a day after the central bank increased
interest rates, and as higher yields in developed markets prompted
investors to reduce emerging market holdings.

Benchmark five-year yields rose to a 2 1/2-year high as
foreign investors sold 1.3 billion rand ($178 million) more of the
country's bonds than they bought yesterday, reversing net
purchases of 313 million rand a day earlier, according to data
published by the nation's bond exchange. Emerging market bonds
fell as Treasury yields near the highest in 11 months eroded their
appeal to investors.


Read more at Bloomberg Bonds News

Treasuries Extend Slide, Pushing 10-Year Yields to Near Highest in a Year

(Bloomberg) -- U.S. Treasuries dropped, pushing 10-
year yields to the highest in almost a year, on expectations
central banks will raise interest rates around the world.

The benchmark 10-year note extended declines after slumping
yesterday by the most in more than three years. Global debt
markets have been sliding since New Zealand unexpectedly raised
borrowing costs yesterday, stoking concern other central banks
will follow as world economic growth quickens.


Read more at Bloomberg Bonds News

European shares fall for fifth day on rate worries

(Reuters) - European shares fell for a fifth day in a row on Friday, as investors fretted about the impact of rising global interest rates on corporate profitability.

Global equities markets have endured a harsh sell-off this week, triggered by the sharpest weekly rise in U.S. government bond yields since March 2005, reflecting investors' concern about rising interest rates and inflation.


Read more at Reuters Africa

Rexam says eyeing Owens-Illinois plastics unit

(Reuters) - LONDON, June 8 - Britain's Rexam Plc , the world's biggest can maker, said on Friday it was in talks about buying the plastics division of U.S. packaging company Owens-Illinois Inc .



"An acquisition, if agreed, would only occur on conditions which meet Rexam's investment returns criteria and is likely to be funded from a combination of its Glass disposal proceeds, debt and an element of equity," Rexam said in a statement. On Jan. 12, Owens-Illinois, which had previously indicated it might sell its plastics packaging business, said it had hired Goldman Sachs to review strategic options for the unit including a possible sale.


Read more at Reuters.com Mergers News

Malaysia Palm Oil Prices Decline as Recent Gains to Record Seen Excessive

(Bloomberg) -- Malaysia palm oil futures fell to a
five-day low on concern the recent record price is not justified
because higher global interest rates signal slower economic
growth and consumer demand.

Palm oil for August delivery, the most actively traded
contract on the Malaysia Derivatives Exchange, dropped as much
as 2.6 percent to 2,577 ringgit a ton and traded at 2,588
ringgit a ton at the end of the morning session. The commodity
reached a record 2,764 ringgit a ton on June 6.


Read more at Bloomberg Commodities News