Gold Rises in Asia Amid Speculation That Surging Oil Price to Boost Demand

(Bloomberg) -- Gold traded little changed in Asia
amid speculation that a rise in energy costs will boost demand
for the precious metal as a hedge against inflation. Silver was
unchanged.

The gold price usually moves in the same direction as crude
oil, which traded near a nine-month high in New York as a drop
in U.S. refinery processing rates raised concerns among some
investors about supplies. Oil yesterday rose 2.1 percent.


Read more at Bloomberg Commodities News

Hong Kong's Hang Seng Index Advances to Record; Construction Bank Climbs

(Bloomberg) -- Hong Kong's key stock index rose,
headed for a record close. China Construction Bank Corp. led
banks higher after saying it plans to sell shares valued at $5.5
billion in Shanghai, where valuations are higher.

``The overall trend for companies to list in the mainland
is a solid positive factor,'' said Renee Hung, who helps manage
$3.5 billion at Value Partners Ltd. in Hong Kong. ``Shares of
these companies will have a short-term run. The market gets a
sentiment boost.''


Read more at Bloomberg Stocks News

Samsung Elec to invest $3.5 billion in U.S. chip plant

(Reuters) - Samsung on Friday unveiled a new NAND flash memory production line, which it started building in 2006 at the Texas plant and uses advanced 12-inch wafers.




The announcement on Friday was the first time the company has disclosed the total amount it will to invest in the NAND facility, which will produce flash memory chips for use in popular consumer gadgets such as music players, cell phones and digital cameras.


Read more at Reuters.com Business News

Pound Headed for Weekly Drop Versus Dollar on Signs U.K. Growth Is Slowing

(Bloomberg) -- The pound headed for a third week of
losses versus the dollar as reports showed Europe's second-
largest economy may be slowing enough to ease pressure on the
Bank of England to keep raising interest rates.

The U.K. currency fell as data this week showed inflation
slowed to a seven-month low last month, while growth in wages
eased in April. A report showed retail sales growth slowed in
May, reinforcing speculation four interest-rate increases since
August are crimping expansion in the $2.4 trillion economy.


Read more at Bloomberg Currencies News

Palm Oil Futures Advance in Malaysia After China Reports Surge in Imports

(Bloomberg) -- Palm oil futures in Malaysia, which
trades the benchmark contract, rose after a report that China's
imports gained, indicating sustained demand for the world's most
consumed vegetable oil.

China imported 1.68 million tons in the first five months
of this year, 29 percent more than a year earlier, the customs
office said today. The palm oil price reached a record this
month on concern rising demand from China and India, the biggest
vegetable oil users, may strain supplies and deplete stockpiles.


Read more at Bloomberg Commodities News

Oil flat after two-day gain on fuel worry, Mideast

(Reuters) - London Brent crude for August delivery, the new front month contract, was unchanged at $71.36 a barrel by 0309 GMT, while U.S. July crude eased 2 cents to $67.63 a barrel.




Traders said follow-through buying after Wednesday's U.S. weekly oil inventory report showed surprisingly flat gasoline stocks and falling heating fuel supplies had boosted prices, raising fears that refiners would struggle to build up stocks.


Read more at Reuters.com Hot Stocks News

China Construction Bank Plans Shanghai Share Sale, May Raise $5.5 Billion

(Bloomberg) -- China Construction Bank Corp. plans
to sell shares valued at $5.5 billion in what would be the
nation's biggest stock sale this year, responding to a government
call for large companies to raise funds at home.

China Construction, the nation's third-biggest bank, today
said it may sell 9 million shares in Shanghai. The company's Hong
Kong stock rose 3.3 percent to HK$4.69 yesterday. Also today,
China Cosco Holdings Co. announced plans to raise up to $1.98
billion in Shanghai.


Read more at Bloomberg Emerging Markets News

Taiwan Dollar Falls as Investors, Insurers Seek Higher Returns Overseas

(Bloomberg) -- Taiwan's dollar weakened for a fifth
day on speculation investors will buy U.S. dollars to invest in
higher-yielding assets overseas.

The island's currency headed for the biggest weekly loss
since January as lawmakers yesterday approved a proposal to
allow insurers to invest up to 45 percent of assets abroad from
the current 35 percent. Taiwan's benchmark interest rate is the
second lowest in Asia after Japan, encouraging local investors
to send money abroad to seek for better returns.


Read more at Bloomberg Currencies News

Australia's Victoria To Be First to Trial Gene-Altered Wheat, Age Reports

(Bloomberg) -- Genetically modified drought-
resistant wheat will be planted at two Victorian farming sites
within weeks after the Federal regulator approved the first
Australian field trials of the crop, the Age said.

The crop will be grown on Department of Primary Industries'
research land at Horsham and Walpeup, Victoria state, the Age
said, citing Glenn Tong, chief executive of the Molecular Plant
Breeding Cooperative Research Center. The center is funding the
A$500,000 ($418,000) trials, the newspaper said.


Read more at Bloomberg Commodities News

Dollar Headed for Weekly Advance Before U.S. Consumer Price Index Report

(Bloomberg) -- The dollar was headed for a weekly
gain against the yen and euro before a U.S. government report
that may show inflation accelerated last month, adding to signs
the Federal Reserve is unlikely to cut interest rates.

The currency traded near a 4 1/2 year high against the yen
reached yesterday as the yield spread between two-year
Treasuries and like-dated Japanese debt widened this week to a
four-month high. An index calculated by Credit Suisse based on
the exchange of interest payments suggests the Fed is more
likely to raise than reduce borrowing costs for the first time
since the company started tracking the data almost a year ago.


Read more at Bloomberg Currencies News

UPDATE 3-Two Massey board members who wanted merger resign

(Reuters) - NEW YORK, June 14 - Two board members who wanted
Massey Energy Co. to merge with a rival and were critical
of management have resigned after the coal miner decided to remain
independent, the company said on Thursday.




The two -- Daniel Loeb, who manages the activist hedge fund
Third Point, and Todd Swanson -- accused the board of being
"misguided" in sticking with Chief Executive Officer Don
Blankenship, who they said was guilty of "poor risk management."


Read more at Reuters.com Mergers News

Judge rules for Refco ex-CEO in currency unit suit

(Reuters) - The plaintiffs -- American Financial International
Group-Asia LLC, Norma LaVigne and Vaughn LaVigne -- sued former
CEO Phillip Bennett. Also sued were Gerald Sherer, who was the
CEO of RefcoFX; William Sexton, the former RefcoFX chief
operating officer; and Philip Silverman, the former company
secretary.




U.S. District Judge Gerard Lynch granted motions by Sexton,
Sherer, Bennett and Silverman to dismiss the complaint, but
allowed the plaintiffs to refile their fraud claims.


Read more at Reuters.com Bonds News

Bear Stearns sells bonds to cover hedge fund

(Reuters) - They said the sale appears related to losses sustained in subprime mortgages by at least one hedge fund managed by the investment bank. The sale came just as New York-based Bear Stearns said its quarterly earnings fell by a third, citing stress in the mortgage market that hurt bond trading revenue and as it wrote down assets at a stock trading venture.




The securities for sale are among the least likely to suffer losses from the meltdown in risky mortgage assets caused by years of loosened underwriting standards and a slump in the U.S. housing market. That would ensure the money is raised expeditiously, the managers said.


Read more at Reuters.com Business News

Paulson says higher rates a "wake-up call"

(Reuters) - "As I look at the recent rise in interest rates, you can
also look at it as a bit of a wake-up call to call attention to
some of the potential excesses out there," Paulson said in
response to questions after addressing the Council on Foreign
Relations.




Speaking after a spike in Treasury yields to 5-year highs
this week, Paulson acknowledged there has been volatility in
financial markets but said this was not worrying.


Read more at Reuters.com Bonds News

Adobe quarterly net rises on Acrobat, design suite

(Reuters) - Net income for the fiscal second quarter to June 1 rose to
$152.5 million, or 25 cents per diluted share, from the
year-earlier quarter's $123.1 million, or 20 cents per share.
Excluding one-time items, Adobe reported on Thursday a profit
of 37 cents, a penny above Wall Street's consensus.




Revenue rose 17 percent to $745.6 million, in the middle of
the range of analysts' forecasts.


Read more at Reuters.com Market News

Alltel's Debt Plans Will Prompt Downgrades, Credit-Default Swaps Show

(Bloomberg) -- Alltel Corp.'s plan to take on $23.2
billion of debt to finance its leveraged buyout may cause bonds
of the fifth-largest U.S. wireless company to slide further into
speculative-grade territory, credit-default swaps show.

Credit-default swaps based on $10 million of Alltel bonds
have jumped $11,700 this week to $231,500, according to CMA
Datavision. The five-year contracts reached a record $238,000
yesterday after the Little Rock, Arkansas-based company
disclosed details of the buyout.


Read more at Bloomberg Bonds News

Adobe quarterly net rises, revenue in line

(Reuters) - Revenue rose 17 percent to $745.6 million, in the midpoint
of analysts' forecasts.




Wall Street was looking for a net profit of 27 cents per
share, according to the average of Reuters Estimates. Excluding
stock option expenses and one-time items such as acquisition
costs, the analysts' profit consensus was 36 cents a share.


Read more at Reuters.com Market News

Treasury Bond Traders Must Foster Liquidity or Face Regulation, Fed Says

(Bloomberg) -- Treasury traders were warned by the
Federal Reserve Bank of New York to abide by the spirit of
guidelines drafted this year to put an end to manipulative
trading practices or face additional regulation.

``If market participants are unable to behave in an
appropriate way consistent with the goal of maintaining a deep
and liquid Treasury market, such an outcome could provoke a
regulatory response at a later stage,'' said William Dudley,
executive vice president in charge of financial markets at the
New York Fed, during an industry conference today at the bank.


Read more at Bloomberg Bonds News

UPDATE 3-Midwest takes step toward AirTran after vote

(Reuters) - NEW YORK, June 14 - Midwest Air Group Inc.
on Thursday took a step toward would-be acquirer
AirTran Holdings Inc. after the low-cost carrier's
shareholders elected three board members nominated by AirTran.




Midwest, which had steadfastly opposed AirTran's hostile
takeover offer, will allow AirTran to make a presentation to
its board about the bid, the company said. Midwest left the
door open to negotiations, but said no decision has been made.


Read more at Reuters.com Bonds News

U.S. House bill aims to curb indecent TV programs

(Reuters) - The bill was introduced by Democratic Rep. Dan Lipinski of Illinois, and Republican Rep. Jeff Fortenberry of Nebraska.




Also supporting the legislation is Kevin Martin, chairman of the U.S. Federal Communications Commission, a longtime advocate of a la carte programming to give parents more control over what their children watch.


Read more at Reuters.com Government Filings News

Sanofi setback clouds future of obesity drugs

(Reuters) - NEW YORK, June 14 - A U.S. health panel's resounding rejection of Sanofi-Aventis' obesity drug Zimulti casts a pall over other experimental products in the same class while offering a stark reminder of challenges facing the development of weight-loss medications.



The Food and Drug Administration advisory panel on Wednesday unanimously recommended Zimulti not be approved because of concerns it may increase suicidal thinking and depression. The FDA is expected to make a final decision by July 26.


Read more at Reuters.com Bonds News

Hog Futures Rise as Farmers May Trim Herds on High Corn Costs; Cattle Gain

(Bloomberg) -- Hog futures in Chicago rose on
speculation that higher corn costs may prompt farmers to trim
herds. Cattle prices also gained.

Corn, the main ingredient in livestock feed, has gained 7.6
percent so far this week and closed over $4 a bushel yesterday
for the first time since March 23. Farmers may liquidate hog
herds to avoid paying higher feed costs, said Brian Hoops, an
analyst with Midwest Market Solutions in Yankton, South Dakota.


Read more at Bloomberg Commodities News

UPDATE 2-Del Monte fourth-quarter profit falls

(Reuters) - CHICAGO, June 14 - Del Monte Foods Co. ,
maker of Meow Mix cat food, StarKist tuna and its own canned
fruits, on Thursday posted a drop in quarterly profit, hit by
higher costs for some items and lower tuna sales volume.




Like many food companies, Del Monte has been hit recently
by higher corn costs accompanying the surge in ethanol
production. The company said it still faces such challenges,
but has raised prices to help offset some of those pressures.


Read more at Reuters.com Market News

Mexico's Slim not seeking any stake in BBVA

(Reuters) - MEXICO CITY, June 14 - Mexican billionaire Carlos Slim, the world's second-richest man, is not looking for any stake in Spain's No. 2 bank, BBVA, a spokesman for Slim said on Thursday.



"It is totally false," spokesman Arturo Elias Ayub told Reuters when asked about market speculation in Madrid that the Mexican telecoms magnate could buy a significant stake in BBVA .


Read more at Reuters.com Mergers News

Freddie Mac Has Third Straight Quarterly Loss on Lower Derivatives Returns

(Bloomberg) -- Freddie Mac, the second-largest source
of money for home loans, reported its third consecutive quarterly
loss after a drop in the value of derivatives it uses to hedge
interest rate risk.

The net loss was $211 million, or 46 cents a share, compared
with net income of $2 billion, or $2.80 a share, a year earlier,
the McLean, Virginia-based company said today in a statement.
Revenue from providing guarantees on mortgage bonds jumped 11
percent to $460 million.


Read more at Bloomberg Bonds News

S.African stocks up in step with U.S and European markets

(Reuters) - South African shares led by banking firm Abil closed stronger on Thursday, buoyed by gains on U.S. and European stock markets.

"The South African market was better today because of stronger U.S. and European markets, and the local market was also coming off a very oversold position," a Johannesburg-based trader said.


Read more at Reuters Africa

US STOCKS-Wall St advances on energy, growth expectations

(Reuters) - NEW YORK, June 14 - U.S. stocks rose on Thursday
as energy shares, including Exxon Mobil Corp. , rose in
sync with oil prices, countering a drop in financial shares
after Bear Stearns posted a drop in quarterly profit.




Exxon shares led advances on both the Dow and the S&P 500
as U.S. crude for July delivery rose 1.2 percent to
$67.08 a barrel on fresh supply concerns.


Read more at Reuters.com Bonds News

CBOT board finds ICE bid not superior to CME deal

(Reuters) - CBOT said the ICE offer did not address strategic and
operational concerns such as integration and execution risk.




Read more at Reuters.com Mergers News

Focus DIY to Pay Noteholders 40% of Face Value After Cerberus Takeover

(Bloomberg) -- Focus DIY Group Ltd. will pay
investors 40 percent of face value on 100 million pounds ($197
million) of debt if the U.K. home improvement chain is bought by
Cerberus Capital Management LP.

Focus is proposing to pay less than the quoted market value
of the so-called mezzanine debt, which ranks behind more senior
loans for repayment in the event of a default. The 9.375 percent
mezzanine notes due in 2015 were quoted at 45 pence on the pound
today by broker Aston Bond SA on Bloomberg.


Read more at Bloomberg Bonds News

Environment, governance shapes African bank lending

(Reuters) - The majority of banks in South Africa are taking into account issues such as the environment and government corruption when they lend money, a joint United Nations-South African study said on Thursday.

Environmental, social and governance (ESG) issues have become factors in credit risk assessments for 70 percent of banks in South Africa and a quarter of those in Nigeria -- the continent's two largest economies -- the study said.


Read more at Reuters Africa

US STOCKS-Futures cut gains after PPI

(Reuters) - S&P 500 futures were up 0.30 point, but above fair
value, a formula that evaluates pricing by taking into account
interest rates, dividends and time to expiration on the
contract. Dow Jones industrial average futures were up
15 points while Nasdaq 100 futures were up 1.25 point.




Read more at Reuters.com Bonds News

Producer prices up on energy rise in May

(Reuters) - Separate data out on Thursday showed no change in the number of workers signing up for first-time jobless benefits last week, underscoring stability in the labor market.




Economists polled ahead of the data were expecting producer prices -- the prices paid by manufacturers and wholesalers -- to rise 0.6 percent and by 0.2 percent when energy and food were stripped out.


Read more at Reuters.com Business News

U.S. Stock Futures Rise on Report CBOT Bid Will Be Boosted; Exxon Gains

(Bloomberg) -- U.S. stock-index futures rose after
a report said Chicago Mercantile Exchange Holdings Inc. will
raise its bid for CBOT Holdings Inc. and as investors awaited a
report that may show wholesale inflation decreased last month.

CBOT, operator of the Chicago Board of Trade, gained in
trading in German after the Wall Street Journal reported that
the biggest U.S. futures market plans to boost the value of its
$10 billion offer. Exxon Mobil Corp., the largest oil producer,
advanced after oil prices rose.


Read more at Bloomberg Stocks News

UPDATE 1-DG FastChannel to buy advertising services firm

(Reuters) - This is the Irving, Texas-based company's third acquisition
since April, when it had agreed to buy Point.360's
advertising distribution operations and privately held
Pathfire.




DG FastChannel plans to finance the GTN transaction with
cash on hand and through borrowings under its existing credit
facility, it said in a statement.


Read more at Reuters.com Mergers News

U.S. futures indicate steady-to-higher market open

(Reuters) - General Motors Corp. and bankrupt auto parts maker
Delphi Corp. are near a deal with the United Auto
Workers union that would provide a cash payout to Delphi workers
in exchange for lower hourly wages, the Detroit News reported.




By 0955 GMT, September Dow futures were up 0.1
percent, S&P futures were flat and Nasdaq futures
gained 0.2 percent.


Read more at Reuters.com Bonds News

Treasury Market `Specials' Decline After Warning on Manipulative Trading

(Bloomberg) -- Shortages of U.S. Treasuries have
become less common in the $5 trillion market for borrowing and
lending the securities since Treasury Department officials
warned Wall Street firms to end manipulative trading practices.

Failures to receive or deliver securities, an indication of
scarcity, have averaged $102.1 billion a week this year, less
than a third of their 2005 average and the fewest since 2000,
according to Federal Reserve Bank of New York data. Lending of
all debt securities by the 21 firms that trade directly with the
Fed averaged $2.5 trillion a day that year, according to the
Securities Industry and Financial Markets Association.


Read more at Bloomberg Bonds News

Delphi, GM near deal with UAW: report

(Reuters) - The proposal would offer 4,000 UAW workers an unspecified one-time lump sum cash payment in return for accepting lower wages that could range from $14 to $18 per hour. Workers could also take the lump sum and accept early retirement or flow back to GM, the Detroit News said, citing people familiar with the talks.




Delphi, GM and the UAW did not immediately return calls seeking comment.


Read more at Reuters.com Business News

U.K. Next-Day Power Declines as Spare Generation Gains, Natural Gas Drops

(Bloomberg) -- U.K. power for delivery on the next
working day fell as the expected volume of spare generation
capacity gained and natural-gas costs dropped.

Day-ahead baseload electricity for delivery in the U.K.
declined 20 percent to 22.25 pounds ($43.82) a megawatt-hour,
according to prices on Bloomberg from the energy broker GFI
Group Inc. Baseload power is delivered round the clock.


Read more at Bloomberg Energy News

Dollar hits fresh 4-1/2 yr high on rosy U.S. outlook

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




The yen lost ground as stronger stock markets helped maintain a high level of risk appetite, leading investors to re-enter carry trades, where they borrow low-yielding currencies to invest in higher yielding assets.


Read more at Reuters.com Hot Stocks News

Swiss Franc Drops Versus Dollar; Central Bank Raises Interest Rate to 2.5%

(Bloomberg) -- The Swiss franc erased gains versus
the euro and fell against the dollar after the central bank
raised its target interest rate by a quarter point.

The Zurich-based Swiss National Bank increased its three-
month Libor target rate by 25 basis points to 2.5 percent, the
highest since September 2001, matching the forecast of all 25
economists in a Bloomberg News survey.


Read more at Bloomberg Currencies News

Drax Starts Unit 6 at Its Coal-Fired Electricity Plant in Northern England

(Bloomberg) -- Drax Group Plc, the U.K. owner of
Europe's biggest coal-fired power plant, restarted Unit 6 at the
station in Selby, northern England.

The unit, which can generate about 645 megawatts, started
production at about 8:30 a.m. yesterday, according to a Web site
run by National Grid Plc. The company didn't give a reason for
its halt on June 11.


Read more at Bloomberg Energy News

MacDonald Dettwiler selling space assets: report

(Reuters) - None of the companies mentioned in the article was
immediately available to comment.




Read more at Reuters.com Business News