UPDATE 1-Aeroflot to pull out of Alitalia bidding - I'fax

(Reuters) - "The decision in principle has already been taken. The chief
executive of Aeroflot will inform Italy's Finance Ministry about
the Russian carrier's withdrawal from the acquisition of the
state-held shares in Alitalia," the source said.




An Aeroflot spokeswoman, however, told Italy's ANSA news
agency that the Russian airline is going ahead with its offer
for Alitalia and that its director general presented a report on
the subject to the carrier's new board elected on Saturday.


Read more at Reuters.com Mergers News

Canadian Government Bonds May Extend Decline Amid Outlook for Higher Rates

(Bloomberg) -- Canadian bonds may extend
losses next week amid expectations the Bank of Canada will
increase its benchmark lending rate next month.

The 10-year bond fell for the fifth week in the past
six on speculation Canada's central bank may raise the
borrowing cost twice this year, bringing it to the highest
in six years.


Read more at Bloomberg Bonds News

Aeroflot to pull out of Alitalia bidding - I'fax

(Reuters) - Aeroflot has already denied one report by Interfax that it
had pulled out of the bidding for the Italian government's 49.9
percent stake but its lukewarm enthusiasm has added to
investors' fears that the sale could collapse.




Aeroflot, which is backed by Italian bank UniCredit
, has expressed concern about the price tag and about
Alitalia's finances, while a 30 percent shareholder in the
Russian firm has said he is "negative" about the deal.


Read more at Reuters.com Mergers News

Sarkozy toasts competition snip in treaty talks

(Reuters) - French President Nicolas Sarkozy celebrated success on Saturday in removing a reference to market competition from the objectives of a proposed new European Union treaty.

But other leaders said a mandate for negotiations for the new treaty, which included references to competition in other parts of the document, could actually bolster Europe's internal market, not weaken it.


Read more at Reuters Africa