May consumer prices rise but core prices tame

(Reuters) - A steady rise in food and energy costs pushed overall U.S. consumer prices up 0.7 percent in May, the sharpest rise in 1-1/2 years, a government report showed on Friday.




But the core measure of the Labor Department's Consumer Price Index, which removes food and energy, rose just 0.1 percent, below Wall Street's median forecast of 0.2 percent.


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UPDATE 1-Colombia cenbank says raises key rate to 9 pct

(Reuters) - It was the seventh consecutive month that the bank raised
rates to curb inflation to within its targeted 2007 range of 4
percent plus or minus 0.5 percent. Colombian inflation was 4.48
percent in 2006.




Earlier on Friday the government revised its 2007 economic
growth estimate up to 5.8 percent from 5.5 percent. Gross
domestic product expanded by 6.8 percent last year, its best
performance since 1978.


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UPDATE 1-Western Oil Sands stock surges after Total report

(Reuters) - CALGARY, Alberta, June 15 - Western Oil Sands
Inc. shares jumped nearly 7 percent on Friday after a
newsletter reported Total SA may bid for the company,
known for its stake in Canada's Athabasca Oil Sands Project.




Western climbed C$2.41 to C$37.91 on the Toronto Stock
Exchange on volume of nearly 6 million shares. The stock is up
16 percent this year.


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Traders Place Record Bets on Canadian Dollar Gains, CFTC Statistics Show

(Bloomberg) -- Futures traders held a record number
of bets that the Canadian dollar will gain against the U.S.
dollar, figures from the Washington-based Commodity Futures
Trading Commission show.

The difference in the number of wagers by hedge funds and
other large speculators on an advance in the Canadian dollar
compared with those on a drop -- so-called net longs -- rose to
62,005 as of June 12, compared with 43,858 a week earlier. It
was the biggest amount of net longs since Bloomberg began
compiling the weekly data in 1993.


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China Sells Most Treasury Notes in Seven Years, Signaling Diversification

(Bloomberg) -- Chinese investors sold more U.S.
Treasury securities in April than any time in at least seven
years, a signal the nation may be diversifying the world's
largest foreign-exchange reserves.

China, which owns more U.S. debt than any foreign nation
except Japan, sold a net $5.8 billion of Treasuries, the first
drop in holdings since October 2005, according to Treasury
Department figures that go back to 2000. The nation held $414
billion of the $4.4 trillion of marketable Treasuries in April,
according to today's report.


Read more at Bloomberg Currencies News

UPDATE 2-Colgate says fake toothpaste a low health risk

(Reuters) - NEW YORK, June 15 - Colgate-Palmolive Co.
said on Friday that counterfeit toothpaste that may contain a
toxic chemical, posed a low health risk, and that it was
picking up the suspected fakes from discount stores in four
U.S. states.




The company's assessment comes a day after it reported
finding phony "Colgate" toothpaste in discount stores in New
York, New Jersey, Pennsylvania and Maryland.


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UK supermarkets in price war as shoppers squeezed

(Reuters) - By Rachel Sanderson



LONDON, June 15 - Britain's largest supermarket chains, Tesco and Asda, have relaunched a price war, ending a months-long outbreak of peace that saw advertising campaigns focus on higher-priced organic and natural foods.


Read more at Reuters.com Economic News

Penn National to be acquired in $6.1 bln deal

(Reuters) - The buyout comes amid a flurry of casino deals. The world's largest casino operator, Harrah's Entertainment Inc. , is in the process of being acquired by private equity firms for $17 billion, while smaller local operator Station Casinos Inc. is in midst of a $5.4 billion management-led buyout.




"The bottom line that is private equity continues to like the characteristics of casinos and puts a higher value on them then the public markets," said Calyon Securities analyst Smedes Rose. "Between lodging and gaming companies, we will probably see more deals."


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Blackstone says tax changes could hurt value

(Reuters) - In an amended prospectus filed with the U.S. Securities and
Exchange Commission, Blackstone said the proposed law would apply
to it beginning with the 2013 tax year.




Blackstone said the legislation, if enacted, would cause "a
material increase in our tax liability when such legislation
begins to apply to us." It also said changes that precluded it
from qualifying under publicly traded partnership rules might
"result in a reduction in the value of our common units."


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Bids for Home Depot's supply unit due Fri: source

(Reuters) - Several groups of private equity firms showed initial interest, but have since backed away as the slowdown in the U.S. housing market has hurt HD Supply, according to sources close to the deal.




The company launched the supply business in 1997 and expanded it by acquiring companies like water and sewer products supplier National Waterworks Holdings in 2005 and Hughes Supply in 2006. Home Depot paid $3.2 billion for Hughes Supply.


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Corporate Bond Risk Falls as U.S. Report Eases Interest Rate Concerns

(Bloomberg) -- The perceived risk of owning
corporate bonds fell worldwide after a measure of U.S. consumer
prices rose less than expected, easing concerns about inflation.

Europe's iTraxx Crossover Series 7 Index of credit-default
swaps on 50 European companies declined the most in almost three
months to 194,000 euros from 203,000 euros. Contracts on debt in
the CDX North America Crossover Index of 35 companies dropped
$2,500 to $151,500, according to Deutsche Bank AG.


Read more at Bloomberg Bonds News

US STOCKS-Wall St rallies on tamer inflation, Intel

(Reuters) - NEW YORK, June 15 - U.S. stocks climbed on Friday
on reassuring inflation news and fresh optimism about the tech
sector after an upgrade of bellwether Intel.




A 4.1 percent jump in the shares of Intel Corp.
triggered an advance in technology stocks after Goldman Sachs
raised its rating on the world's dominant chip maker, to "buy"
from "neutral." A flurry of deal news also lent support,
following a report that the New York Mercantile Exchange
was exploring a sale. Shares of the NYMEX, the world's
largest energy market, rose 2.9 percent.


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UPDATE 1-MOVES-Bank of America, GE, NBGI, Jupiter, JPMorgan

(Reuters) - BANK OF AMERICA CORP.




Bank of America Corp. promoted Tony Sciarrino to commercial
banking market executive for the Los Angeles coastal region,
including west Los Angeles, the South Bay, the San Fernando
Valley, and the central California coast. Since 2002 he has
been senior client manager in the bank's San Diego commercial
banking office. Sciarrino will relocate to Los Angeles.


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US June consumer sentiment at 10-month low -U.Mich

(Reuters) - The decline was much sharper than predicted by economists,
who had forecast a median reading of 88.0 in a Reuters poll.




The decline was "hardly surprising", the survey said,
however, noting that U.S. gasoline prices have topped $3 per
gallon for six straight weeks.


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Wachovia added to lawsuit over brokerage sweeps

(Reuters) - NEW YORK, June 15 - Wachovia Corp. , which agreed last month to buy A.G. Edwards Inc. for $6.8 billion, has been added to a federal lawsuit accusing large U.S. brokerages of moving customers' idle cash into low-yielding accounts to boost profits.



The lawsuit, which seeks class-action status, says Wachovia, Citigroup Inc. , Merrill Lynch & Co. , Morgan Stanley and Charles Schwab Corp. automatically sweep cash into bank accounts that pay low rates, rather than money market or savings accounts yielding 4 percent to 5 percent.


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What Does a Bioterror Attack Smell Like? U.S. Calendar Offers Helpful Tips

(Bloomberg) -- June 17 is more than just Father's
Day.

It's also the third anniversary of a deadly attack in
Baghdad, when al-Qaeda terrorists killed 35 people and wounded
138, according to the U.S. National Counterterrorism Center's
2007 calendar. The slick, free daily planner offers facts on
everything from terrorists' methods and the blasting power of
explosives to symptoms of Venezuelan Equine Encephalitis.


Read more at Bloomberg Exclusive News

Penn National agrees to be acquired

(Reuters) - The deal values Penn at $67 a share, a 31 percent premium
over Penn's Thursday closing price.




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Blackboard prices $150 mln in convertible notes

(Reuters) - It plans to use around $19.4 million of the net proceeds to
repay outstanding loans, and the remainder for general purposes
which may include potential acquisitions.




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Turkish Stocks Rally, Led by Garanti, Isbank: World's Biggest Mover

(Bloomberg) -- Turkish stocks gained for a third
day, lifting the ISE National 100 Index to its biggest gain in
more than a month, after a report showed U.S. inflation remained
in check.

Turkiye Garanti Bankasi AS and Turkiye Is Bankasi AS paced
the advance.


Read more at Bloomberg Stocks News

Abbas names Fayyad new Palestinian PM: officials

(Reuters) - Fayyad is considered a moderate who has good connections with Western governments.




Read more at Reuters.com Bonds News

May consumer prices up 0.7 pct, core prices tame

(Reuters) - The muted core price rise was likely to reassure financial markets that price gains remain tame, notwithstanding Federal Reserve officials' warning that they still see a danger from potential inflationary pressures. "Although core inflation seems likely to moderate gradually over time, the risks to this forecast remain to the upside," Fed Chairman Ben Bernanke told a monetary policy conference last week.




The department said core prices have risen 2.1 percent on a seasonally adjusted annual rate during the first five months this year, compared with a 2.6 percent rise for all of 2006.


Read more at Reuters.com Business News

U.K. Natural Gas Prices Gain on Forecast of Cooler Weather, Lower Imports

(Bloomberg) -- U.K. natural-gas prices rose after
weather forecasters predicted rain throughout the country next
week, which may increase heating demand, and a pipeline to mainland
Europe reversed direction to take gas out of Britain.

Gas for delivery a week ahead at the National Balancing Point,
the U.K. trading hub, rose 0.7 percent to 20.75 pence a therm as of
11:31 a.m. in London, according to broker ICAP Plc. That equals
$4.09 per million British thermal units. A therm is 100,000 Btus.


Read more at Bloomberg Energy News

US STOCKS-Futures rise on Intel upgrade; CPI on tap

(Reuters) - NEW YORK, June 15 - U.S. stock futures signaled a
higher open on Friday, with technology shares likely to
underpin gains after a broker upgrade of Intel Corp. ,
but investors were cautious ahead of key U.S. inflation data.




Intel shares jumped 2 percent in electronic trade after
Goldman Sachs raised its rating on the chipmaker, a component
of the Dow Jones industrial average , to "buy" from
"neutral."


Read more at Reuters.com Bonds News

West Virginia Leads U.S. Municipal Borrowers; Mutual Funds See Outflows

(Bloomberg) -- West Virginia, San Antonio and
Illinois led U.S. state and local government borrowers this week
with the largest of $9 billion in long-term bond sales.

The West Virginia Tobacco Settlement Finance Authority sold
more than $900 million of taxable securities backed by annual
payments from cigarette makers. The SA Energy Acquisition Public
Facility Corp. issued $649 million of bonds to lock in a 20-year
supply of natural gas for San Antonio's CPS Energy. Illinois
offered $437 million of state bonds to refinance debt and pay
for new highway, school and public building projects.


Read more at Bloomberg Bonds News

Community Health, Varietal, EGL Plan Debt Sales: U.S. Corporate Bond Alert

(Bloomberg) -- Community Health System Inc., whose
purchase of Triad Hospitals Inc. will make it the biggest publicly
traded U.S. hospital company, and Varietal Distribution Merger Sub
Inc. are among borrowers seeking to raise at least $47.4 billion
of bonds in the U.S., according to data compiled by Bloomberg.

Companies have sold $17.3 billion of bonds this week,
compared with $31.5 billion in the same period last week. Sales
year-to-date total $590.9 billion, up from $519 billion a year
ago.


Read more at Bloomberg Bonds News

S. African Rand Headed for Weekly Gain on Outlook for Rates, Credit Rating

(Bloomberg) -- South Africa's rand headed for its
first weekly gain versus the dollar in six on speculation the
central bank will keep lifting interest rates and as concern
about the country's current account deficit wanes.

The rand is set to end its worst run in a year after Moody's
Investors Service said yesterday the country's credit rating may
be put on review for a possible upgrade in the next 18 to 24
months as concern on the current-account gap eases. The Reserve
Bank lifted its main rate to 9.5 percent on June 7, and Governor
Tito Mboweni forecast inflation will hold above the bank's target
in the second quarter.


Read more at Bloomberg Currencies News

U.K. Power Rises on Forecast Spare Capacity to Fall; French Imports Likely

(Bloomberg) -- U.K. power for delivery on the next
working day rose as forecasts showed a likely decline in spare
capacity that may mean more-expensive generation is required to
meet demand.

U.K. working-day-ahead baseload power increased 11 percent to
24.60 pounds ($48.46) a megawatt hour, according to prices on
Bloomberg from the energy broker GFI Group Inc. The last traded
price yesterday for power delivered today was 22.25 pounds a
megawatt hour.


Read more at Bloomberg Energy News

Euroyen futures rally on Fukui's cautious remarks

(Reuters) - Lead December euroyen futures jumped as much 5 basis
points to 99.000, poised for the largest one-day gain in nine
months, before slipping back to 98.990.




Swap contracts on the overnight call rate cut
the chance of a July rate hike to 27 percent from 35 percent
earlier in the day, while the chance of a move in August dipped
to 84 percent from 89 percent. A hike by the September meeting is
fully priced in.


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European Bonds Set for Sixth Weekly Drop; ECB Signals Higher Interest Rate

(Bloomberg) -- European government bonds headed for
a sixth weekly drop after central bank officials said interest
rates may need to rise to curb accelerating growth in the $10.4
trillion economy.

The bonds are poised for the longest run of weekly losses
since January, pushing yields on benchmark 10-year debt to the
highest since August 2002. European Central Bank policy maker
Axel Weber said late yesterday that interest-rate policy is
``still far from being restrictive'' on economic growth.


Read more at Bloomberg Bonds News

Gold Will Reach $750 an Ounce This Year on Inflation, Pierre Lassonde Says

(Bloomberg) -- Gold will rise as high as $750 an
ounce this year, about $100 more than today, as concern about
accelerating inflation spurs demand for the metal as a store of
value, Newmont Mining Corp. Vice Chairman Pierre Lassonde said.

Higher interest rates are ``bullish for gold,'' Lassonde,
60, said in an interview yesterday in London after a dinner held
by the producer-funded World Gold Council, of which Lassonde is
chairman. ``The only reason rates are going up is because
inflation is going up.''


Read more at Bloomberg Commodities News

European Stocks Rise for Third Day; Sainsbury, Tesco Pace the Advance

(Bloomberg) -- European stocks advanced for a third
day after Delta (Two) Ltd. bought shares in J Sainsbury Plc,
lifting retail companies including Tesco Plc.

Axa SA, Europe's second-largest insurer, and bank UniCredit
SpA gained.


Read more at Bloomberg Stocks News

What happens to world trade post-Doha, experts ask

(Reuters) - Experts are charting a new course for the 12-year-old World Trade Organization as its mandate evolves from simple duty cuts to managing commerce across a fluid global economy.

"The WTO has been so successful over the years that we now expect it to deliver the same success in a far more complex situation," Pierre Pettigrew, a former Canadian trade minister, said on Thursday.


Read more at Reuters Africa