CORRECTED: Dollar scales fresh 4-1/2-year peak vs yen

(Reuters) - A surge in benchmark U.S. yields to five-year highs this week on an upbeat outlook for the economy, has stoked demand for dollar-denominated securities.




"Investors are thinking the economy is doing well as the U.S. stock market has calmed down and they see few signs of inflation," said Koji Fukaya, senior currency strategist at Deutsche Bank in Tokyo. "Unless this trend collapses, the dollar will stay firm."


Read more at Reuters.com Hot Stocks News

US stock indexes soar on bond yields' retreat and data

(Reuters) - U.S. stocks jumped on Wednesday, as lower bond yields triggered a rebound in utilities and other shares sensitive to interest rates, while signs of strength in the economy reassured investors.

The Dow posted its best day since July after data signaled strength in U.S. consumer spending and a Federal Reserve report showed no increase in wage pressures while the economy grew last month. That helped lift the shares of industrial companies like 3M and Caterpillar Inc., which also raised its dividend.


Read more at Reuters Africa

China's Industrial Production Surges, Supporting Case for Rate Increase

(Bloomberg) -- China's industrial production growth
unexpectedly accelerated in May, increasing pressure on the
central bank to raise interest rates to cool the world's
fastest-growing major economy.

Output rose 18.1 percent in May from a year earlier, the
National Bureau of Statistics said today, after gaining 17.4
percent in April. That compared with the 17 percent median
estimate of 19 economists surveyed by Bloomberg News.


Read more at Bloomberg Emerging Markets News

Pound May Extend Drop Versus Dollar on Speculation of Lower Sales Growth

(Bloomberg) -- The pound may drop for a second day
versus the dollar on speculation a report showing retail sales
growth slowed last month will reinforce speculation the Bank of
England won't need to raise interest rates further.

Sales expansion in Europe's second largest economy probably
slowed to an annual 3.8 percent from 4.2 percent in April,
according to economists in a Bloomberg News survey. The U.K.
currency may also be hurt after an industry survey showed house
prices rose at the weakest pace in a year in May.


Read more at Bloomberg Currencies News

China's Factory, Real Estate Spending Probably Rose by 25.4 Percent in May

(Bloomberg) -- China's spending on factories and
real estate probably rose 25.4 percent from a year earlier in
the first five months, underscoring the risk of an investment
rebound in the world's fastest-growing major economy.

The median estimate of 17 economists surveyed by Bloomberg
News compares with a 30.3 percent increase in urban fixed-asset
investment a year earlier. The statistics bureau will release
the figures at 10 a.m. tomorrow.


Read more at Bloomberg Emerging Markets News

Gold Little Changed Amid Speculation Dollar's Gain to Curb Metal's Appeal

(Bloomberg) -- Gold was little changed in Asia amid
speculation a gain in the dollar will reduce the appeal of the
precious metal as an alternative investment. Silver was also
little changed.

Gold generally moves in the opposite direction to the U.S.
currency, which rose against the euro today after U.S. retail
sales in May rose at more than twice the rate economists
forecast. Gold has fallen 1.5 percent this month while the
dollar has gained 1.1 percent against the euro.


Read more at Bloomberg Commodities News

U.S. Treasuries Fall as Government Report May Show Gain in Producer Prices

(Bloomberg) -- Treasuries resumed a month-long
slump on speculation a government report will show that producer
prices rose last month.

The yield on the benchmark 10-year note rose 2 basis points,
or 0.02 percentage point, to 5.22 percent as at 9:00 a.m. in
Singapore, according to bond broker Cantor Fitzgerald LP. The
price of the 4 1/2 percent note due May 2017 fell 5/32, or $1.56
per $1,000 face amount, to 94 14/32.


Read more at Bloomberg Bonds News

South Korean Stocks Rise, Led by Samsung Electronics, Posco, LG.Philips

(Bloomberg) -- South Korea's benchmark stock index,
the Kospi Index, rose 1.16 percent at 9:05 a.m.

The index of 732 companies traded on the Korea Exchange rose
20.02 to 1,742.01. Among the stocks in the index, 448 rose, 114
fell and 169 were unchanged.


Read more at Bloomberg Stocks News

China's Factory and Real Estate Spending Probably Increased 25.4 Percent

(Bloomberg) -- China's spending on factories and
real estate probably rose 25.4 percent from a year earlier in
the first five months, underscoring the risk of an investment
rebound in the world's fastest-growing major economy.

The median estimate of 17 economists surveyed by Bloomberg
News compares with a 30.3 percent increase in urban fixed-asset
investment a year earlier. The statistics bureau will release
the figures at 10 a.m. tomorrow.


Read more at Bloomberg Bonds News

Japan's Stocks May Rise on U.S. Spending Jump, Lower Bond Yields, Weak Yen

(Bloomberg) -- Japanese stocks may rise after U.S.
retail sales jumped by the most in more than a year and bond
yields dropped. Exporters including Canon Inc. may lead gains on
speculation lower borrowing costs and higher consumer spending in
Japan's largest overseas market will lift profits.

Exporters may also get a boost after the yen weakened to the
lowest against the dollar since 2002, increasing the value of
their dollar-denominated sales.


Read more at Bloomberg Stocks News

Fed sees expanding economy, no price pressure rise

(Reuters) - Separately, a Fed official called the rise in U.S. Treasury debt yields part of a global phenomenon of higher interest rates and said the Fed would stay focused on fighting inflation.




"Our job in terms of dealing with expectations or underlying forces that give rise to inflation impulses will continue regardless of what happens in the marketplace," Dallas Fed President Richard Fisher said.


Read more at Reuters.com Business News

Beverly Hills Bancorp, Casey's, Hoku Scientific, L-3: U.S. Equity Preview

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

Beverly Hills Bancorp Inc. (BHBC US) rose $1.11, or 15
percent, to $8.50 in trading after the official close of U.S.
exchanges. The holding company of First Bank of Beverly Hills
said it's seeking ``strategic alternatives,'' including a sale
of the company.


Read more at Bloomberg Stocks News

US HIGH YIELD-Junk bonds may weather rising Treasury yields

(Reuters) - In seven of the eight most recent years when there was a
sustained rise in Treasury yields, high-yield bonds performed
better than Treasuries, and in four of those years, they posted
above-average returns, Martin Fridson, publisher of high-yield
research service Leverage World, said on Wednesday.




"With comparatively low interest-rate sensitivity, in a
rising rate environment this would actually be a relatively
good place to be," said Fridson, speaking at a high-yield bond
conference sponsored by the New York Society of Security
Analysts.


Read more at Reuters.com Bonds News

Applebee's shares jump after report of IHOP bid

(Reuters) - Officials at both Applebee's and IHOP said they would not comment on rumors or speculation.




Applebee's said earlier this year it was reviewing strategic alternatives for its business. It said in April it had received several takeover proposals. It is also considering a recapitalization.


Read more at Reuters.com Hot Stocks News

Soybean Futures Decline in Chicago as Rains May Nourish Dry U.S. Fields

(Bloomberg) -- Soybeans fell for a second session
after reaching a three-year high June 11 on speculation cool, wet
weather may improve crops in the eastern U.S. Midwest, where
plants have been stunted by dry conditions in the past month.

Temperatures will be on average below normal and rains will
be above normal in the period June 18 to June 22, according to
the U.S. National Weather Service. About 70 percent of the crop
was rated good or excellent on June 10, compared with 71 percent
last week and 67 percent a year earlier, the U.S. Department of
Agriculture said this week.


Read more at Bloomberg Commodities News

A. Schulman to buy Delta Plast Group

(Reuters) - The deal is expected to minimally add to earnings during
the fiscal year ending August 31, 2007, the company said in a
statement.





Read more at Reuters.com Mergers News

CSK Auto unit enters third waiver to credit pact

(Reuters) - CSK Auto Corp. previously obtained waivers to provide additional time to complete financial statements for fiscal year 2006 and other financial statements and related regulatory reports for later periods in light of an investigation by an audit committee of its board into certain accounting errors.



It currently expects to deliver its financial statements for fiscal year 2006 and quarters therein and complete its regulatory reports for the periods within the next 30 days, the company said in a statement.


Read more at Reuters.com Bonds News

Fed's Beige Book: Economy expanded through May

(Reuters) - The Fed said overall wage pressures had not increased, but added that there were "significant" price increases for energy-related products.




However, districts generally did not indicate an increase in overall price pressures, the U.S. central bank said.


Read more at Reuters.com Business News

Countrywide shareholders reject say-on-pay vote

(Reuters) - The largest U.S. mortgage lender said the proposal won support of 31.7 percent of votes cast, while 59.6 percent of votes were opposed. It said the other 8.7 percent abstained.



The American Federation of State, County and Municipal Employees, which owns 4,000 Countrywide shares, had offered the proposal at the Calabasas, California-based company's annual meeting. It had won the backing of Proxy Governance Inc., a shareholder advisory firm, and the California Public Employees' Retirement System, the influential pension fund.


Read more at Reuters.com Bonds News

Wheat Rises to 11-Year High, Extending Rally, as Rains Damage U.S. Crops

(Bloomberg) -- Wheat surged to 11-year highs in
Kansas City and Chicago, extending weeklong rallies, as
unusually heavy rains delay the U.S. harvest and damage fields
in the southern Great Plains.

As much as 1 inch of rain fell in parts of the southern
Plains in the past 24 hours, delaying wheat harvesting and
increasing losses. About 5 percent of the crop was collected as
of June 10, less than the five-year average of 10 percent, after
some fields received as much as three times the normal rain the
past 30 days, data from the Department of Agriculture show.


Read more at Bloomberg Commodities News

US STOCKS-Wall St gains as U.S. bond yields slip

(Reuters) - NEW YORK, June 13 - U.S. stocks advanced on
Wednesday as a pullback in benchmark bond yields fueled a
rebound in interest-rate-sensitive shares including banks,
utilities and home builders.




Data pointing to strength in U.S. consumer spending also
reassured investors about the economy's health, lifting shares
of big manufacturers such as plane maker Boeing Co. and
those of consumer-oriented companies such as Altria Group
.


Read more at Reuters.com Bonds News

Thailand Court's Ruling Creates `Buying Opportunity' Ahead of Election

(Bloomberg) -- Thailand's stocks, Southeast Asia's
worst performers this year, staged their biggest two-day rally
this year after a court ruling on May 30 paved the way for a
national election. More gains are likely, history shows.

``All of these worries about politics are a great buying
opportunity,'' said Doug Barnett, a 51-year-old fund manager
who's been investing in Thailand since 1990. His Thai Focused
Equity Fund Ltd., a $300 million hedge fund, includes Banpu Pcl,
the nation's largest coal miner, and Bank of Ayudhya Pcl, the
sixth-largest bank by assets.


Read more at Bloomberg Stocks News

Gold turns higher with bond price rise

(Reuters) - As bond prices rise, yields fall. But gold traders generally fear that a higher interest rate scenario will slow the investment demand for gold.




Most-active gold futures for August on the COMEX division of the New York Mercantile Exchange rose $2.40 to $655.50 an ounce, in a range from $647.00 to $656.90.


Read more at Reuters.com Hot Stocks News

S.African shares bounce as bond yields slip

(Reuters) - South African stocks rebounded on Wednesday, led by mining shares like African Rainbow Minerals as yields on global bonds pulled back.

Global stock markets had been jittery after a rally in U.S. treasury yields which hovered near five-year highs on Tuesday amid worries of higher inflation.


Read more at Reuters Africa

Wheat Rises, Extending Rally, as Rains Damage Crops, Delay Harvest in U.S.

(Bloomberg) -- Wheat rose to an 11-year high in
Kansas City, extending a weeklong rally, as unusually heavy
rains delay the U.S. harvest and damage fields in the southern
Great Plains.

As much as 1 inch of rain fell in parts of the southern
Plains in the past 24 hours, delaying wheat harvesting and
increasing losses. About 5 percent of the crop was collected as
of June 10, less than the five-year average of 10 percent, after
some fields received as much as three times the normal rain the
past 30 days, data from the Department of Agriculture show.


Read more at Bloomberg Commodities News

Blockbuster, La Jolla, Molson, Omnicell, VeriFone: 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 time.

A. Schulman Inc. (SHLM US) fell $2.37, or 10 percent, to
$21.59. The maker of plastics used in steering wheels cut its
2007 forecast, citing unexpected weakness in Europe and North
America. Profit this year will be $17 million to $23 million,
lower than an earlier estimate of as much as $30 million.


Read more at Bloomberg Stocks News

Nigeria's Oil Production Fell 2.3 Percent in February, Central Bank Says

(Bloomberg) -- Oil production in Nigeria, Africa's
biggest producer, fell 2.3 percent in February, the central bank
said.

The west African country produced 2.15 million barrels per
day in the month, compared with 2.20 million barrels in January,
the Abuja-based Central Bank of Nigeria said today on its Web
site. Total output for the month was 60.2 million barrels,
compared with 68.2 million barrels in the previous month, it
said.


Read more at Bloomberg Energy News

Paulson Resists Lawmakers' Demands to Cite China for Currency Manipulation

(Bloomberg) -- U.S. Treasury Secretary Henry Paulson
resisted Congressional demands to accuse China of currency
manipulation, while chiding America's second-largest trading
partner for an ``undervalued'' yuan.

The yuan ``is undervalued and market sentiment clearly
favors appreciation,'' the Treasury said in its semi-annual
review of currency policies released today in Washington. China
didn't meet the technical definition of manipulation because the
U.S. couldn't determine the intent to seek a trade advantage.
China's trade surplus with the U.S. surged to a record in 2006.


Read more at Bloomberg Currencies News

UPDATE 1-Freddie Mac launches $3 bln new 5-year notes

(Reuters) - The other joint lead managers on the sale are Barclays
Capital and RBS Greenwich Capital.




Freddie Mac will also sell on Thursday $1.0 billion in
two-year reference notes in a reopening of an existing two-year
issue due June 11, 2009.


Read more at Reuters.com Bonds News

OPEC president says oil market well supplied

(Reuters) - Crude supply to global markets is sufficient and oil price rises have been due to political tensions and refining industry bottlenecks, OPEC President Mohammed al-Hamli said on Wednesday.

"Supplies to the oil market are sufficient," Hamli told reporters in Abu Dhabi, a day after the International Energy Agency (IEA) said the world needed more oil from OPEC to meet stronger than expected demand.


Read more at Reuters Africa

CORRECTED - UPDATE 1-Brazil 1st-qtr GDP growth slows vs 4th-qtr

(Reuters) - Gross domestic product expanded 4.3 percent in the first
quarter of this year when compared with the first quarter of
2006 , the government's statistics agency IBGE
said.




First-quarter quarter growth versus the preceding quarter
was led by a 1.7 percent expansion in the service sector, while
industry grew 0.3 percent and the country's vast agricultural
sector fell 2.4 percent.


Read more at Reuters.com Economic News

U.S. Treasuries Rise After Yields on 10-Year Notes Reach Five-Year High

(Bloomberg) -- Treasuries rose after yields on 10-
year notes reached a five-year high, prompting speculation
increased borrowing costs for businesses and households will curb
growth in the U.S. economy.

A rout in U.S. notes during the past six weeks had pushed
10-year yields to the highest since 2002. Former Federal Reserve
Chairman Alan Greenspan yesterday predicted higher market rates
for Treasuries and emerging market debt.


Read more at Bloomberg Bonds News

Brazilian Economy Expanded 4.3 Percent in First Quarter vs Year-Ago Period

(Bloomberg) -- Brazil's economy expanded 4.3
percent in the first quarter as 16 straight cuts to the
benchmark lending rate spurred consumer demand and encouraged
companies to boost local production.

Growth was less than the median 4.8 percent expansion
forecast in a Bloomberg survey of 22 analysts. Gross domestic
product in the first three months of the year grew a seasonally
adjusted 0.8 percent from the fourth quarter, the agency said.


Read more at Bloomberg Emerging Markets News

European Stocks Decline After U.S. Retail Sales Data; Nestle, RWE Fall

(Bloomberg) -- European stocks fell, led by Nestle
SA, Bouygues SA and RWE AG after a government report showed U.S.
retail sales rose the most in more than a year in May and more
than economists anticipated.

The Dow Jones Stoxx 600 Index decreased 0.2 percent to
386.09 at 1:37 p.m. in London. The Stoxx 50 retreated 0.1 percent
and the Euro Stoxx 50, a measure for the 13 nations sharing the
euro, dropped 0.2 percent.


Read more at Bloomberg Stocks News

Treasuries Erase Loss After Yield Rises to Highest in More Than Five Years

(Bloomberg) -- Treasuries stabilized after yields
on 10-year notes reached a five-year high, prompting speculation
increased borrowing costs for businesses and households will
curb growth in the U.S. economy.

``The housing sector has already slowed down and rising
yields will hurt it again,'' said Masataka Horii, a manager for
the $46 billion Kokusai Global Sovereign Open fund in Tokyo, the
world's second-biggest bond fund. ``We don't have any concern
about inflation.''


Read more at Bloomberg Bonds News

Africa business rosier but more aid needed - W.Bank

(Reuters) - Prospects for doing business in Africa have never been rosier, but more efforts are still needed to improve roads and energy and cut out red tape, a senior World Bank official said on Wednesday.

At the same time, the world's richest nations, or G8, must speed up aid for Africa in order to complement the continent's drive to put its house in order, said Obiageli Ezekwisili, the World Bank's new vice-president for the Africa region.


Read more at Reuters Africa

Thailand's Stock Index Slides on Political Concerns: World's Biggest Mover

(Bloomberg) -- Thai stocks fell the most in five
months on concern former Prime Minister Thaksin Shinawatra will
return from exile to contest the seizure of some of his assets,
trigging political unrest. PTT Pcl led the decline.

``There were rumors there may be curfews to control
protests in Bangkok,'' said Sukhbir Khanijoh, an analyst at
Kasikorn Securities Pcl. ``They aren't sure whether the
government can keep the situation under control. If the rumors
turn out to be groundless, we may see the market rebound.''


Read more at Bloomberg Stocks News

U.K. Pound Declines Against Dollar on Signs Economic Growth Is Slowing

(Bloomberg) -- The pound declined versus the dollar
and the euro as signs the U.K. economy may be slowing stoked
speculation the Bank of England won't need to keep raising
interest rates.

A government report today showed average earnings growth
slowed in April. Economists in a Bloomberg News survey predicted
they would quicken. The U.K. currency extended its decline before
a report tomorrow that is expected to show retail sales grew more
slowly last month.


Read more at Bloomberg Currencies News

Some Boston Scientific claims can proceed: judge

(Reuters) - "This case concerns the issues of whether, how, and to whom information was shared ... about a device with an alleged defect," Judge Frank wrote in his ruling, which denied five company motions, granted two, and issued a split decision on an eighth.




Boston Scientific, which bought Guidant Corp. last year to acquire its portfolio of heart devices, recalled more than 100,000 of the products between 2005 and 2006.


Read more at Reuters.com Business News

Subprime Mortgage Crash Squeezes First-Time Buyers Out of Housing Market

(Bloomberg) -- Josh Tullis, who in his eight years
as a senior loan officer rarely felt compelled to reject a
first-time home buyer's mortgage application, is saying ``no''
in 2007.

Tullis's latest clients are a married couple that banks
ought to love. Between them they make $70,000 a year and they've
been renting the same apartment for three years with zero late
payments, he said.


Read more at Bloomberg Exclusive News

Lithuania, Voith, Verbund, Versatel Plan Debt Sales: European Bond Alert

(Bloomberg) -- The following is a list of bond
sales denominated in euros or pounds and expected in the coming
days and weeks.

Investment-Grade Sales


Read more at Bloomberg Bonds News

Crude Oil Falls Close to $65 a Barrel Before Report on U.S. Fuel Supplies

(Bloomberg) -- Crude oil fell, trading close to $65 a
barrel in New York, before a report that's expected to show U.S.
gasoline stockpiles rose for a sixth straight week.

An Energy Department report today will probably show refiners
added 1.5 million barrels of fuel to the nation's gasoline supply
last week, according to a Bloomberg News survey of 16 analysts.


Read more at Bloomberg Energy News

CPC Corp., LG Petrochemical, Honam, Taiwan Power: Asia Energy Tender Alert

(Bloomberg) -- The following is a list of oil and
coal sales and purchase contracts in Asia. Some may be concluded
in the next few days and weeks.

Taiwan


Read more at Bloomberg Energy News

REFILE-EMC, India's Wipro to collaborate on technology

(Reuters) - Financial terms of the partnership were not announced.




Read more at Reuters.com Mergers News

Oil dips as US gasoline stockpiles seen climbing

(Reuters) - Oil prices eased on Wednesday, as gasoline inventories in the United States were expected to rise for the sixth week to soothe fuel supply concerns, though forecasts for strong demand limited losses.

London Brent crude, currently seen as more representative of the global market, was down 18 cents at $68.61 a barrel by 0409 GMT, extending a 77 cent drop on Tuesday. Brent's July contract expires on Thursday.


Read more at Reuters Africa