S.Africa government bond yields rise, extending losses

(Reuters) - South African bonds weakened on Thursday, extending losses from the previous day prompted by a rise in U.S. Treasury yields.

At 0615 GMT, yields on the heavily-traded 2010 bond were up 10 basis points at 8.94 percent compared to the previous close, while those on the benchmark issue due 2015 increased 8 basis points to 8.295 percent.


Read more at Reuters Africa

Reliance Communications Cuts Loan Premium After Record Profit, Bankers Say

(Bloomberg) -- Reliance Communications Ltd., India's
second-biggest mobile phone company, will pay less interest on a
$1 billion loan after its profit more than doubled to a record,
said three bankers involved in the financing.

The company, which added 1.4 million new subscribers last
month, is paying interest of 54 basis points more than the London
interbank offered rate, a borrowing benchmark, according to the
bankers, who declined to be identified before a company
announcement. The premium is about half of what the company pays
on a $500 million loan borrowed last year, according to data
compiled by Bloomberg.


Read more at Bloomberg Bonds News

Euro May Decline to 33 Area Versus Slovakia's Koruna, Goldman Sachs Says

(Bloomberg) -- The euro may fall to the 33 area
against Slovakia's koruna after breaking below so-called support
at 33.90, said Kevin Edgeley, a technical analyst at Goldman
Sachs Group Inc., citing charts that predict price movements.

The level broken represents the lower boundary, or support,
of an ascending channel that connects the lows of April 4 and
May 14-15, according to data compiled by Bloomberg News. The
euro had been rebounding since March 20. Support is a level
where buy orders may be clustered.


Read more at Bloomberg Currencies News

European Union to Battle Over New Treaty, Seek to End Years of Gridlock

(Bloomberg) -- European Union leaders will battle
over a new governing treaty today, seeking to make institutions
designed for six countries a half-century ago fit for the modern
bloc of 27.

Objections by Poland to a shift in the decision-making
system and by Britain to an extension of the EU's powers loom as
the biggest obstacles to ending a two-year stalemate at a summit
in Brussels.


Read more at Bloomberg Currencies News

TREASURIES-Languish in Asia after taking hit from Bunds

(Reuters) - Given renewed concerns in the market about the housing
sector's weakness, yields may have room to fall in the near-term,
despite the concerns about rising global bond yields, said
Yasutoshi Nagai, chief economist for Daiwa Securities SMBC.




"Readings on the housing sector have been weak and that could
increase the persuasiveness of the argument that the economy may
suffer due to conditions in the housing market," Nagai said.


Read more at Reuters.com Bonds News

JGBs fall as overseas bond prices drop, auction eyed

(Reuters) - Expectations that the BOJ will boost interest rates to a
12-year high of 0.75 percent from the current 0.50 percent in the
July-September quarter have weighed on JGBs, with September
futures striking a seven-year low last week.




The market now sees the BOJ as most likely to lift rates in
August.


Read more at Reuters.com Bonds News

UPDATE 2-Canada's BCE says might combine with rival Telus

(Reuters) - MONTREAL, June 20 - BCE Inc. , Canada's
largest telecoms group and a possible target of three
international buyout bid groups, said on Wednesday it was in
talks to explore the possibility of combining with rival Telus
Corp. .




Any merger between BCE, which owns Bell Canada, and Telus,
the country's No.2 phone company, would stun Canada's telecom
industry and need government approval as it would control much
of the domestic telephone market.


Read more at Reuters.com Bonds News

Lawmakers scrutinize Blackstone tax bill, IPO

(Reuters) - Sen. Max Baucus has received feedback about his legislation suggesting a five-year transition period is too long and should be shortened, his office said late on Wednesday.




"Chairman Baucus said today that he is open to discussing that possibility," his office said in a statement


Read more at Reuters.com Government Filings News

South Korean Exporter Shares Drop, Led by LG Electronics; Chipmakers Gain

(Bloomberg) -- South Korean exporter stocks fell
after higher U.S. bond yields fueled concern borrowing costs
will rise, slowing down the world's biggest economy. LG
Electronics Inc. led declines.

Samsung Electronics Co. advanced after prices of dynamic
random access memory, or DRAM, jumped to a six-week high,
raising speculation chipmakers' profits will improve.


Read more at Bloomberg Stocks News

Australian Stocks Decline, Led by ANZ Bank, BHP on Global Growth Concerns

(Bloomberg) -- Australia's benchmark stock index,
the S&P/ASX 200 Index, fell 0.11 percent at 10:05 a.m.

The index of 202 companies traded on the Australian Stock
Exchange fell 7.20 to 6,389.70. Among the stocks in the index, 34
rose, 43 fell and 125 were unchanged.


Read more at Bloomberg Stocks News

Senator raises China concerns on Blackstone

(Reuters) - Webb raised concerns in a letter to Securities and Exchange Commission Chairman Christopher Cox, Treasury Secretary Henry Paulson and Homeland Security Secretary Michael Chertoff.




In the letter, Webb said SEC records show Blackstone's holdings include military and satellite technology companies.


Read more at Reuters.com Mergers News

Japanese Stocks May Fall, Paced by Toyota, Exporters, on U.S. Bond Yields

(Bloomberg) -- Japanese stocks may decline, led by
exporters including Toyota Motor Corp., after higher U.S. bond
yields renewed concern that spending in the world's largest
economy will slow.

The Standard & Poor's 500 Index had the biggest slide in
two weeks yesterday on concern a slump in the housing market
will intensify.


Read more at Bloomberg Stocks News

BHP, Coles Group, Rio, Symbion Health, Woodside: Australian Equity Preview

(Bloomberg) -- The following is a list of companies
whose shares may rise or fall in Australia. This preview
includes news announced after markets closed yesterday. Prices
are from yesterday's close unless otherwise stated. Stock
symbols are in brackets after the company names.

The S&P/ASX 200 Index futures contract due in September
fell 0.7 percent to 6368 at 6:59 a.m. in Sydney. The Bank of New
York Australia ADR Index dropped 1 percent in New York.


Read more at Bloomberg Stocks News

UPDATE 1-Atticus repeats call for Barclays to scrap ABN bid

(Reuters) - "During this discussion we reiterated our view that while
management is running the company well, the proposed
acquisition of ABN is not in the best interests of the company
or its shareholders," a spokesman for Atticus said.




Atticus has built a stake in Barclays -- which reports have
said is worth more than $1 billion -- and earlier this month
urged management to pull out of the deal.


Read more at Reuters.com Mergers News

Brazil Stocks Fall, Led by Petrobras, on Strike Concern; Televisa Declines

(Bloomberg) -- Brazil's main stock index fell for a
second day on investor concern that a possible strike at state-
controlled oil company Petroleo Brasileiro SA will hurt output.

The Bovespa Index of the most-traded stocks on the Sao Paulo
exchange fell 614.48, or 1.1 percent, to 54,029.24. Petrobras,
whose shares account for about one-sixth of the index, fell 85
centavos, or 1.7 percent, to 50.79 reais, declining for the first
time in nine days.


Read more at Bloomberg Stocks News

Dow Jones board takes lead on News Corp. talks

(Reuters) - The decision could bring a quicker resolution to negotiations with Murdoch after the Bancroft family developed rifts over whether to accept his offer, a source familiar with the matter said.




Members of the Bancroft family, which controls 64 percent of Dow Jones' voting shares, met Murdoch earlier this month to discuss his unsolicited $60 per share offer for the company.


Read more at Reuters.com Mergers News

U.S. Stocks Plunge on Higher Yields, Mortgage Bond Concern; JPMorgan Falls

(Bloomberg) -- Financial shares tripped over higher
bond yields, sending the Standard & Poor's 500 Index to its
steepest drop in two weeks.

Growing concern losses in mortgage securities will spread
helped drive down shares of JPMorgan Chase & Co., Citigroup Inc.
and Bank of America Corp. Moody's Corp., the inventor of credit
ratings, fell to its lowest in two months on speculation bond
issuance will slow.


Read more at Bloomberg Stocks News

Calpers OKs smallest health premium hike in decade

(Reuters) - The $245 billion pension fund said it expects to spend $5.3
billion on health-care benefits next year for more than 1.2
million members, who include state and local government
employees, retirees and their families, up from $4.9 billion
this year.




"This 2008 benefits program is substantially lower than
what consultants are anticipating for U.S. employers next
year," Rob Feckner, chairman of Calpers' board, said in a
statement.


Read more at Reuters.com Bonds News

Starbucks, Ethiopia settle licensing dispute

(Reuters) - The U.S. coffee chain had been accused by Ethiopia and aid agency Oxfam of attempting to block Ethiopia from obtaining trademarks for its best-known beans -- Sidamo and Harrar.




The agreement allows Starbucks to use and promote the Harrar, Sidamo and Yirgacheffe designations in markets where trademarks exist, as well as where they don't, the statement said.


Read more at Reuters.com Business News

U.S. Stocks Drop After Bond Yields Gain, Oil Falls; JPMorgan Shares Slip

(Bloomberg) -- U.S. stocks retreated after bond
yields rose for the first time in four days and a plunge in the
price of crude oil dragged down shares of energy producers.

JPMorgan Chase & Co., Citigroup Inc. and Bank of America
Corp. led declines in firms that benefit from low interest rates.
All 32 energy companies in the Standard & Poor's 500 Index
retreated after the price of oil slid from a nine-month high.


Read more at Bloomberg Stocks News

UPDATE 2-Sun Life shares rise on China move, U.S. sales

(Reuters) - VANCOUVER, British Columbia, June 20 - Shares in
Sun Life Financial Inc. rose 2.5 percent on Wednesday
after Canada's third biggest life insurer announced an
expansion into China's richest city as well as sturdy insurance
sales in the United States.




Sun Life made the announcements as part of an "investor
day" in Toronto, at which company executives also sketched out
a tough environment for acquisitions with prices propelled by
strong equity markets and a superabundance of available funding
worldwide.


Read more at Reuters.com Mergers News

Corn, Soybean Futures Rise as Dry Weather May Slow Growth of U.S. Crops

(Bloomberg) -- Corn and soybeans rose in Chicago
on forecasts that dry weather will move into Midwest growing
areas this weekend, stressing the two biggest U.S. crops.

Chances are 12 percent or less a weekend storm will bring
rain to parts of Iowa, the country's largest producer of corn
and soybeans, according to the National Weather Service.
Temperatures are expected to reach as high as 90 degrees
Fahrenheit (32 Celsius), stressing plants already suffering
from a lack of moisture. The normal high is about 84 degrees.


Read more at Bloomberg Commodities News

UPDATE 1-Fed's Fisher: Not sure of impact of global growth

(Reuters) - "We're not sure what it means for us in terms of inflation
management," Fisher said in a speech at a community luncheon.




Fisher is not currently a voter on the Fed's Federal Open
Market Committee.


Read more at Reuters.com Bonds News

Investors Financial shareholders approve takeover

(Reuters) - Investors Financial also said the board of governors of the Federal Reserve System approved the deal. The transaction remains subject to other regulatory approvals.



State Street said in February it would acquire Investors Financial, which provides services for asset managers, for roughly $4.5 billion in stock.


Read more at Reuters.com Mergers News

NY's Bloomberg says he is not running for president

(Reuters) - Bloomberg, the billionaire founder of financial data and
media firm Bloomberg LP, spurred speculation on Tuesday about a
possible run for president when he announced he was changing
his political status.




Read more at Reuters.com Bonds News

Eurex Planning to Offer Commodity-, Energy-Linked Derivatives Contracts

(Bloomberg) -- Eurex AG, Europe's biggest futures
exchange, plans to offer commodity derivatives this year after
record prices for energy, metals and agriculture spurred trading
of the contracts.

The exchange has started talks with market participants
including commodity-index providers, Michael Peters, a Eurex
board member, said in an interview in London today.


Read more at Bloomberg Energy News

Bush will veto popular stem-cell bill: aides

(Reuters) - Two-thirds majority votes would be needed in the Senate and House of Representatives to overcome Bush's opposition and make the bill law, and backers conceded at this point they are short of support.




In addition to vetoing such legislation for the second time in two years, Bush will issue an executive order to encourage scientists to work with the federal government to derive new methods to obtain stem cells without harming human embryos, aides said, adding he would announce no new funding.


Read more at Reuters.com Bonds News

U.S. gold declines with oil

(Reuters) - Most-active gold futures for August on the COMEX division of the New York Mercantile Exchange slipped $4.80 to $659.90 an ounce, pulling off an early high at $665.40. On Tuesday, August gold extended its rally up to a 10-day high at $665.80 which nearly matched the June 8 high of $665.90.




"Gold got up to $665 and just stalled. And the ring was a little bit long at that point. So with the lower oil and unwinding long positions that put a little crimp in the rally," a trader said, referring to the August contract.


Read more at Reuters.com Hot Stocks News

Treasuries Drop on Speculation Companies Issuing Debt Will Sell U.S. Notes

(Bloomberg) -- Treasuries fell for the first time
in four days on speculation corporations planning to issue debt
will sell U.S. government notes in advance.

The companies will establish so-called interest rate hedges
by selling Treasuries to protect against increased borrowing
costs stemming from higher yields. Traders who use charts to
determine an asset price's direction say benchmark 10-year note
yields may be due for a rebound after falling over the past week
from the highest since 2002.


Read more at Bloomberg Bonds News

McClatchy sees circulation drop through early '08

(Reuters) - McClatchy, which publishes the Sacramento Bee and the Miami Herald, told analysts and investors at the Mid-Year Media Review conference in New York that they should not "look for major acquisitions from McClatchy any time soon."



McClatchy shares fell 16 cents to $25.78 on the New York Stock Exchange on Wednesday.


Read more at Reuters.com Mergers News

US' Paulson:China helping growth, must boost reform

(Reuters) - "While we agree with the Chinese on the direction of change
in their economic reforms, we differ over the pace," Paulson
said, adding: "I advocate an increased pace of reform at every
opportunity."




Read more at Reuters.com Bonds News

Lead touches fresh record high, nickel down

(Reuters) - London Metal Exchange lead touched a new record high on Wednesday, lifted by low stockpiles, while nickel fell by nearly two percent following the previous session's heavy losses.

Nickel for three-months delivery bounced to $38,850 a tonne, up 3.3 percent, in early trade, before falling back to $36,925/36,950 by 1446 GMT. In the previous session it closed at $37,600 after tumbling 7.2 percent as stainless steel producers cut back use of the metal.


Read more at Reuters Africa

Oil slumps $1 after U.S. stockpiles surprise

(Reuters) - The U.S. Energy Information Administration said crude stocks rose by 6.9 million barrels last week, well over the 100,000 barrels forecast by analysts. Gasoline stocks were up 1.8 million barrels, almost double the market forecast.




"The completely unexpected build in crude stocks is the surprise of the day. And it is very bearish," said Tim Evans, analyst at Citigroup Global Markets.


Read more at Reuters.com Business News

U.K.'s FTSE 100 Index Climbs, Led by Vedanta, BHP; British Airways Rises

(Bloomberg) -- U.K. stocks climbed, led by Vedanta
Resources Plc and BHP Billiton Ltd. after copper prices rallied
in London on concern strikes will disrupt production.

British Airways Plc rose after Standard & Poor's lifted its
credit rating for the airline. Man Group Plc climbed after
posting an increase in assets for its AHL fund.


Read more at Bloomberg Stocks News

S.African unions declare dispute in gold sector

(Reuters) - South African trade unions declared a dispute, the first legal step towards a strike, after the nation's three biggest gold producers failed to submit a wage offer on Wednesday, the Solidarity union said.

"Basically it's because they didn't want to put an offer on the table," Solidarity spokesman Reint Dykema told Reuters.


Read more at Reuters Africa

US STOCKS-Home Depot, Morgan Stanley lead early gains

(Reuters) - Shortly after the opening bell, the Dow Jones industrial
average was up 6.10 points, or 0.04 percent, at
13,641.52. The Standard & Poor's 500 Index was up 1.05
points, or 0.07 percent, at 1,534.75. The Nasdaq Composite
Index was up 5.44 points, or 0.21 percent, at
2,632.20.




Read more at Reuters.com Market News

European Government Bonds Decline; 10-Year Yield Advances to 4.64 Percent

(Bloomberg) -- European government bonds fell in
London, erasing earlier advances.

The yield on the 10-year bund rose 4 basis points to 4.64
percent by 2:18 p.m. The price of the 4.25 percent bond due July
2017 fell 0.29, or 2.9 euros per 1,000-euro ($1,343) face amount,
to 96.91. Bond yields move inversely to prices.


Read more at Bloomberg Bonds News

Delphi labor deal expected as early as Wednesday: report

(Reuters) - Workers from several Delphi plants as well as people close to the talks said they expect a tentative agreement to offer cash payments, known as buy-downs, to workers in exchange for a lower hourly wage, the newspaper said.




Both Delphi and a UAW spokesman declined to comment.


Read more at Reuters.com Business News

EU approves Dow's purchase of Walsrode from Bayer

(Reuters) - Walsrode makes products based on cellulose for use in
construction, food and personal care.




Read more at Reuters.com Government Filings News

Yen Drops to Near Record Against Euro as BOJ Signals Rates to Stay Low

(Bloomberg) -- The yen fell to near a record low
against the euro and declined versus the dollar after minutes
from the Bank of Japan's meeting in May said central bankers
stuck to a policy of raising interest rates ``gradually.''

The Japanese yen has weakened more than any other currency
against the euro and dollar this year as fund managers increased
investments using borrowed yen in the so-called carry trade. The
extra yield investors earn on German 10-year bonds over similar
maturity Japanese debt widened to near a three-year high.


Read more at Bloomberg Currencies News

Alcan, ATS, Iamgold Corp., Southwestern Resources: Canadian Equity Preview

(Bloomberg) -- The following is a list of companies
whose shares may have unusual price changes in Canadian markets
today. This preview includes news that broke after markets closed
yesterday. Stock symbols are in parentheses after company names and
prices are from the last close.

The Standard & Poor's/TSX Composite Index fell 56.93, or 0.4
percent, to 14,119.49, yesterday in Toronto.


Read more at Bloomberg Stocks News

Crude Oil Falls on Expectations U.S. Will Report Rising Gasoline Supplies

(Bloomberg) -- Crude oil fell from near a nine-month
high amid expectations U.S. gasoline stockpiles will rise.

A U.S. Energy Department report today will probably show the
country's gasoline supplies grew last week for the seventh straight
week, according to analysts surveyed by Bloomberg News. Crude rose
5.7 percent over the past five sessions before a general strike
started today in Nigeria, Africa's biggest oil producer.


Read more at Bloomberg Energy News

Hungarian Economy Minister Says Forint Limits Hobble Inflation Battle

(Bloomberg) -- Hungarian Economy Minister Janos
Koka said the forint's trading limits are hobbling the central
bank's ability to cut the European Union's highest inflation
rate, the first Cabinet member to suggest they may need to be
abolished.

Scrapping the trading band would allow the forint to
strengthen enough to cut import prices and bring down the annual
inflation rate, at 8.5 percent in May. Koka's comments contrast
those of central bank Governor Andras Simor, who says inflation
can be slowed without freeing the forint, and Finance Minister
Janos Veres, who says the Cabinet is not ready to lift the
limits.


Read more at Bloomberg Emerging Markets News

China's CSI 300 Index Slides on Share Sales Concern: World's Biggest Mover

(Bloomberg) -- China's key stock index fell from a
record on concern new share sales will draw funds from existing
equities and the central bank will raise interest rates. China
Merchants Bank Co. declined.

``Rumors of interest rate increases prompted a sell-off in
the afternoon,'' said Wei Wei, an analyst at West China Securities
Co. in Shanghai. ``And the fast pace of new share sales has
dampened sentiment.''


Read more at Bloomberg Stocks News

British Airways, Clariant, Weather: European Credit-Default Swap Movers

(Bloomberg) -- The risk of owning European
corporate bonds fell, according to traders in the credit-default
swaps market.

Contracts based on 10 million euros ($13 million) of debt
included in the iTraxx Crossover Series 7 Index fell 1,000 euros
to 195,000 euros at 11:05 a.m. in London, according to JPMorgan
Chase & Co.


Read more at Bloomberg Bonds News

Shares seen opening up, eyes on Morgan Stanley

(Reuters) - Eyes would also be on three Federal Reserve speakers amid uncertainty about the next move in U.S. interest rates.




Dow Jones , S&P 500 and Nasdaq futures were all up 0.2 percent at 0925 GMT. The indicative Dow Jones index , which tracks the Dow stocks as they are traded in Frankfurt, was 0.1 percent higher.


Read more at Reuters.com Hot Stocks News

Namibia utility to raise R3 bln in bonds for growth

(Reuters) - Namibia's national power utility plans to raise 3 billion rand to expand its transmission network to neighbour Zambia, the company said on Wednesday.

Half of the money would be raised at the South African Bond Exchange, and the rest would be raised in Namibian bonds, a South African bond official close to the deal told Reuters.


Read more at Reuters Africa

European Bonds Advance as Yields Near Five-Year High Attract Investors

(Bloomberg) -- European government bonds advanced
for a second day as 10-year yields near the highest in five years
attracted investors.

Benchmark debt was also buoyed by a report today showing
German producer-price inflation held near the lowest in almost
three years in May. Ten-year bunds had their biggest gain in
almost two months yesterday after a report showed investor
confidence in Europe's biggest economy unexpectedly fell.


Read more at Bloomberg Bonds News

Boeing announces $2.7 bln Air France KLM order

(Reuters) - KLM ordered 7 of Boeing's single-aisle 737-700 planes.




Read more at Reuters.com Business News

Asian stocks up, yen mired near lows

(Reuters) - Oil prices eased despite fears over a strike by Nigerian unions. Brent crude futures drifted but remained just under $72 a barrel.




Gold held firm, hovering around $660 an ounce after rising to its highest in nearly two weeks the previous day.


Read more at Reuters.com Hot Stocks News

Highveld board rejects Evraz minorities offer

(Reuters) - The board of South Africa's Highveld Steel and Vanadium Corp advised minority shareholders to reject an offer by majority owned, Russia's Evraz Group, to buy up remaining shares, Highveld said.

The board accepted a valuation by an independent adviser of the firm at 93 rand per share, well above the offer by Evraz of $11.40 or 82.99 rand, according to a circular to shareholders posted on Highveld's website late on Tuesday.


Read more at Reuters Africa