U.S. Stocks Rally on Earnings, M&A Speculation; GM, Dow Jones Shares Gain

(Bloomberg) -- U.S. stocks rose for a second day on
better-than-estimated earnings and renewed takeover speculation.

General Motors Corp., the biggest U.S. automaker, gained on
improved results in Europe and North America. Sun Microsystems
Inc., the world's fourth-largest maker of server computers,
posted its steepest advance since January after component costs
fell. Dow Jones & Co. and Wendy's International Inc. jumped on
expectations they'll be bought. Stocks in Europe and Asia also
extended a recovery from last week's $2.1 trillion global rout.


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Delphi Near Accord With Auto Workers to Emerge From Bankruptcy, People Say

(Bloomberg) -- Delphi Corp. and former parent
General Motors Corp. are close to an agreement with the United
Auto Workers union that would pave the way for the auto-parts
supplier to emerge from bankruptcy this year, people with
knowledge of the negotiations said.

UAW officials have summoned union plant leaders to Detroit
for a briefing today on the accord, which would provide Delphi
workers buyouts and job guarantees in exchange for plant
closings, the people said.


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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.


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Asian Equities Rise to Third Straight Record on U.S. Growth; Toyota Gains

(Bloomberg) -- Asian stocks rose to a third straight
record after reports showed employment and manufacturing growth in
the U.S. expanded more than expected and metals prices gained.

Toyota Motor Corp., which overtook General Motors Corp. as
the world's biggest automaker by market value, climbed to a 10-
week high on speculation demand in the region's largest export
market will be sustained. BHP Billiton Ltd., the No. 1 mining
company, climbed for a third day.


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UPDATE 1-UAW says Delphi talks continue, no timeline

(Reuters) - MACKINAC ISLAND, Mich., May 31 - The United Auto
Workers union remains in talks with parts supplier Delphi Corp.
on the terms for a labor agreement that would allow
the company to emerge from bankruptcy, UAW President Ron
Gettelfinger said on Thursday.




Gettelfinger declined to say whether the two sides had
moved any closer after the UAW submitted a counter-proposal to
Delphi and its former parent, General Motors Corp.


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Michigan's Budget Crisis Puts Job-Starved State at Economic Crossroads

(Bloomberg) -- Michigan, bleeding jobs even as its
Rust Belt neighbors begin to prosper, has an $803 million hole
in this year's state budget that could force layoffs of
government workers and cutbacks for schools and health care
starting June 1.

That's when the state's cash flow will dry up, as it faces
a fiscal crisis rooted in dependence on General Motors Corp.,
Ford Motor Co. and DaimlerChrysler AG's Chrysler unit. The three
carmakers lost a combined $15.3 billion last year. Michigan and
hurricane-ravaged Louisiana were the only two U.S. states to
shed jobs in 2006.


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