UPDATE 1-LG Elec sees better Q2 earnings, PDP break-even

(Reuters) - LG, the world's second-biggest maker of plasma display panels
, said last week it would halt one of its three domestic
plasma panel lines and was reviewing several strategic options
for the loss-making business.




LG's chief executive officer Nam Yong, however, reiterated
that LG would keep both PDP and LCD businesses.


Read more at Reuters.com Mergers News

Rubber Futures Extend Rally in Tokyo as Dollar Strengthens Against Yen

(Bloomberg) -- Rubber futures in Tokyo, the global
benchmark, rallied for a fifth day as the dollar traded near a
three-month high against the yen, boosting the value of contracts
traded in the Japanese currency.

The dollar rose as much as 0.51 percent to 121.63 yen
yesterday in late New York trading, the highest since Feb. 23.
The currency traded at 121.48 yen at 10:48 a.m. Tokyo time today.
Rubber futures are denominated in yen on the Tokyo Commodity
Exchange, Tocom, while the commodity trades globally in dollars.


Read more at Bloomberg Commodities News

Charts Show Euro's Drop Versus Dollar May Stall at About $1.34, MUFG Says

(Bloomberg) -- The euro's slide against the dollar may
stall at about $1.34, according to signals on charts traders watch
to predict future price movements, said Masashi Hashimoto, a
currency analyst at Bank of Tokyo-Mitsubishi UFJ Ltd.

The decline of the single currency, down 1.6 percent from a
record high of $1.3681 on April 27, will falter as it nears so-
called support at $1.3399, the euro's 65-day moving average
against the dollar, Hashimoto said.


Read more at Bloomberg Currencies News

Japan Shares Advance; Banks Rise on Earnings Expectations, NEC, Sony Jump

(Bloomberg) -- Japanese stocks advanced, led by
banks, after Sumitomo Mitsui Financial Group Inc. forecast
profit will increase for this business year.

Sumitomo Mitsui climbed 4.7 percent after projecting a 22
percent increase in its net income for this business year. NEC
Corp. jumped the most since Oct. 2005, after saying profit will
triple this year.


Read more at Bloomberg Stocks News

Duratex, Industrial Saltillo, Tam, Urbi: Latin American Equity Preview

(Bloomberg) -- The following stocks may make
significant gains or losses in Brazil and Mexico today. Symbols
are in parentheses after the company name, and stock prices are
from the last session.

In Brazil, preferred shares are the most commonly traded
class of stock.


Read more at Bloomberg Stocks News

Dollar holds near 5-week high vs euro on Fed view

(Reuters) - Solid economic data last week has offered the U.S. currency a respite from a wave of selling that pushed it to a record low versus the euro last month, and chances that the Fed will not cut rates from 5.25 percent in the coming months has prompted some investors to pare back short dollar positions.




"There's a feeling that the recent dollar selling has gone too far, so we're seeing some short covering," said Takehiko Jimbo, a forex manager at Mitsubishi UFJ Trust and Banking.


Read more at Reuters.com Hot Stocks News

China's Wu, `Force of Nature,' Seeks to Deflect Paulson, Congress Pressure

(Bloomberg) -- U.S. officials who have bargained
with China's chief trade negotiator come away with the same
conclusion: Wu Yi is one formidable lady.

``She is not shy,'' said Mickey Kantor, former U.S.
secretary of commerce. ``She was considered a tough pro,''
recalled James Lilley, U.S. ambassador to China from 1989 to
1991. ``She was pretty good-looking, an attractive woman too.''


Read more at Bloomberg Emerging Markets News

China's exim-bank, World Bank to cooperate on Africa

(Reuters) - In an interview with Reuters, World Bank Vice President for
Asia, Jim Adams, said initial cooperation would focus on road
and energy investment projects by China's exim-bank in Africa.




He said it was important that if China wanted to be a major
investor in Africa it became part of the global donor system.


Read more at Reuters.com Bonds News

UPDATE 1-NTT to issue Y100 bln of 10-year domestic bonds

(Reuters) - NTT, Japan's telephone giant, has set the coupon of its
domestic straight bonds at 1.77 percent, lead manager Nomura
Securities said on Tuesday.




On Monday, Standard & Poor's raised NTT's long-term credit
rating to "AA" from "AA-", citing improvement in its finances
amid consistent debt reduction.


Read more at Reuters.com Bonds News

South Korea's Won Advances on Speculation Overseas Investors to Buy Shares

(Bloomberg) -- South Korea's won strengthened for a
second day as a gain in the benchmark index to a record boosted
speculation overseas investors will buy more equities.

Demand for the won has increased as international investors
purchased $2.58 billion more Korean shares than they sold this
quarter, more than 10 times of the net-purchase in the first
quarter, according to stock exchange data. That helped boost the
currency to a four-month high, raising speculation the central
bank would sell won to help exporters.


Read more at Bloomberg Currencies News

Australia's S&P/ASX 200 Index Gains; BHP Billiton, Commonwealth Bank Rise

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

The index of 201 companies traded on the Australian Stock
Exchange rose 6.70 to 6,375.70. Among the stocks in the index, 68
rose, 47 fell and 86 were unchanged.


Read more at Bloomberg Stocks News

New study adds to worries about diabetes drug class

(Reuters) - The news, published in the New England Journal of Medicine, set off a clamor by consumer groups, heart experts and Congress -- some of whom question the safety of all drugs in this class after a number of studies that have shown liver, heart and bone side effects.




Avandia, made by GlaxoSmithKline, is a member of a drug class called thiazolidinediones or glitazones. They affect a gene called PPAR-gamma and help the body use insulin more effectively.


Read more at Reuters.com Business News

Yen Trades Near Record Low Against Euro Before Bank of Japan's Minutes

(Bloomberg) -- The yen traded near a record low
against the euro as minutes from a Bank of Japan meeting last
month may show the central bank will keep interest rates
unchanged for some time.

Japan's currency yesterday also reached the lowest in three
months versus the dollar as investors used the country's 0.5
percent borrowing costs for yen loans to buy assets at Europe's
3.75 percent or the 5.25 percent U.S. rate. Yield spreads are
unlikely to narrow after policy makers cut Japan's inflation
forecast to near zero percent on April 26-27.


Read more at Bloomberg Currencies News

New Zealand Dollar May Gain as Appeal of High Yields Sparks Carry Trade

(Bloomberg) -- New Zealand's dollar may rise to a
four-day high as record-high interest rates lure investors to
the nation's higher yielding assets.

The currency, known as the kiwi, gained 28 percent against
the yen the past 12 months, spurred by the so-called carry trade,
where traders borrow at Japan's lower interest rates to buy
assets elsewhere. New Zealand's benchmark interest rate is 7.25
percentage points more than the cost of borrowing in Japan where
the 0.5 percent rate is the lowest among major economies.


Read more at Bloomberg Currencies News

UPDATE 2-Netease 1st-quarter profit grows

(Reuters) - Chief Executive William Ding said he was disappointed in
delays to Netease's upcoming "Tianxia II" game, but added that
changes to the design would make the title appeal to a broader
audience of experienced and beginner gamers.




Analysts are looking to see whether Netease adjusts its
outlook after it said last month it was postponing the
commercial launch of "Tianxia II."


Read more at Reuters.com Market News

Warner Music seen likely to raise bid for EMI

(Reuters) - EMI said on Monday it agreed to the offer from Terra Firma, possibly ending a seven-year standoff with smaller competitor Warner Music. Both firms feared regulators would kill any deal.




Warner Music, the fourth-largest music company, is evaluating its options after Terra Firma offered to pay 2.4 billion pounds or 265 pence a share in cash to buy No. 3 music group EMI, two sources close to the talks told Reuters.


Read more at Reuters.com Business News

TREASURIES-Bonds end losing way, overcome China worries

(Reuters) - NEW YORK, May 21 - U.S. government debt prices
rose on Monday and snapped a six-session losing streak as
long-term investors returned to the market after benchmark
yields reached levels not seen since mid-February.




The bond market overcame earlier concerns that China may
buy fewer Treasuries and more stocks with its dollar reserves.


Read more at Reuters.com Bonds News

EMI agrees to Terra Firma offer

(Reuters) - The offer of 265 pence a share sent EMI's stock up to close 9.3 percent higher at 271 pence, indicating investors thought a higher counter bid was possible.




Sources familiar with the deal told Reuters that Terra Firma intended to keep EMI intact and proceed with plans to securitise the company's reliable music publishing assets.


Read more at Reuters.com Business News

U.S. mortgage rates unchanged on Monday -BestInfo

(Reuters) - The 30-year mortgage rate with one upfront point was
unchanged at 6-1/4 percent.




The 30-year mortgage rate with two upfront points was
unchanged at 6 percent.


Read more at Reuters.com Bonds News

UPDATE 2-NetBank to sell some assets at a discount; shares fall

(Reuters) - Shares of the online bank and mortgage lender, which is
selling the assets to privately held EverBank, lost more than
half of their value and touched a new year-low.




The Atlanta-based company also said it will shutdown its
third-party mortgage origination business, NetBank Funding, and
incur costs of $25 million to $28 million.


Read more at Reuters.com Mergers News

Karaoke-loving Guy Hands hears the music at EMI

(Reuters) - Hands made his name at Nomura in the mid-1990s, snapping up struggling companies in some of the biggest leveraged deals of the time before striking out on his own in 2002 with Terra Firma Capital Partners, with the Japanese bank as an investor.




By that measure, EMI, the world's third largest music seller, plays right into his turnaround expertise.


Read more at Reuters.com Bonds News

U.S. Stocks Climb on Takeovers; S&P 500 Index Heads Toward Record Close

(Bloomberg) -- U.S. stocks climbed and the Standard &
Poor's 500 Index rose above its highest close after $43.2 billion
of announced deals extended this year's record pace of mergers
and acquisitions.

General Electric Co., Exxon Mobil Corp. and Merck & Co. led
the S&P 500 above its March 24, 2000, peak and sent the Dow Jones
Industrial Average to its 25th record this year. Alltel Corp.
rallied to its highest in almost eight years after Goldman Sachs
Group Inc. and TPG Inc. agreed to buy the fifth-biggest U.S.
wireless company for $24.7 billion.


Read more at Bloomberg Stocks News

Palladium Rises Most This Year on Demand; Platinum Declines on Dollar Gain

(Bloomberg) -- Palladium futures in New York rose
the most this year on forecasts for robust demand for the metal
used in jewelry and emission-control devices. Platinum fell.

Palladium sales will rise 6.5 percent in 2007, spurred by
consumption by automakers, according to consultant CPM Group.
The metal, up 9.5 percent in the past 12 months, may jump
34 percent to $500 an ounce by yearend, said Gerry Schubert, a
director of metals in London at Fortis, Belgium's biggest bank.


Read more at Bloomberg Commodities News

FDA says Glaxo's Avandia risks unclear

(Reuters) - "FDA has not confirmed the clinical significance of the reported increased risk," Meyer told reporters.




Read more at Reuters.com Business News

Cattle Price Rises as U.S. Herd Shrinks, Beef Demand Rises; Hogs Decline

(Bloomberg) -- Cattle futures in Chicago rose on
tight supplies of live cattle and strengthening beef demand. Hog
futures fell for the second-straight session.

The total U.S. cattle herd as of May 1 was 11.297 million,
down 2.3 percent from a year ago, the U.S. Department of
Agriculture said last week in a monthly report. In an indication
of beef demand, feedlot operators sold more animals to beef
packers last month, up 2 percent to 1.821 million. Analysts had
predicted so-called marketings would drop.


Read more at Bloomberg Commodities News

Glaxo's own meta-analysis also showed Avandia risk

(Reuters) - "The differences are probably related to the fact that the number of events in the meta-analysis are very small, so a few extra events makes a big difference in percentage terms."




He was responding to results of an independent meta-analysis published in the New England Journal of Medicine, which concluded Avandia increased the risk of heart death by 64 percent and the risk of heart attack by 43 percent.


Read more at Reuters.com Business News

UPDATE 1-Coca-Cola files with regulators on Glaceau--report

(Reuters) - Citing "informed sources," Beverage Digest said the world's
largest beverage company filed a Hart-Scott-Rodino Act
notification with the U.S. Federal Trade Commission, which is
required for proposed deals of significant size.




A Coca-Cola spokesman declined to comment.


Read more at Reuters.com Mergers News

REFILE-FACTBOX-Major Gulf Arab acquisitions since 2002

(Reuters) - Following is a chronology of some of the largest purchases
by Gulf-based interests since 2006:







Read more at Reuters.com Mergers News

UPDATE 1-US housing decline to moderate 2007 job growth-MBA

(Reuters) - The Mortgage Bankers Association said the sector should
recover gradually by the end of the year, with housing-related
employment expected to contribute to overall job gains in
2008.




U.S. housing starts and home sales should reach a trough
around the end of the third quarter or the beginning of the
fourth, the MBA said in its "Trends in Housing-Related
Employment" report.


Read more at Reuters.com Bonds News

Indian buyers of S.Africa coal wait for lower freight

(Reuters) - Indian trading companies are trying to delay the purchase of more prompt-loading South African coal cargoes until freight rates fall $2-$3 a tonne lower, they said on Monday.

Indian importers of South African coal have been trying to juggle FOB coal costs and freight rates since January, aiming for a combined cost close to $80 a tonne, often without success, they said.


Read more at Reuters Africa

UPDATE 1-Aeroflex gets revised offer from Veritas Capital

(Reuters) - Shares of the Plainview, New York-based Aeroflex, which had
earlier agreed to be bought by private equity firms General
Atlantic and Francisco Partners, was trading at 52-week high
levels in morning trade on the Nasdaq.




Veritas new offer also says that option holders would be
cashed out at the excess of $14.50 and the option exercise
price.


Read more at Reuters.com Mergers News

Dutch stamp price regulation set to become law -MP

(Reuters) - There might still be some minor tweaks to the language of
the law, said Van Vroonhoven-Kok, who is responsible for postal
liberalisation.




Asked whether regulators would have the power to lower TNT's
stamp price from the current 0.44 euros for standard
mail, she said: "As far as we're concerned, that's possible. But
I don't expect it to happen."


Read more at Reuters.com Government Filings News

UPDATE 1-Williams to sell power business to Bear Stearns

(Reuters) - Bear Stearns said its Bear Energy unit is buying a portfolio of power contracts from Williams that includes about 7,700 megawatts of gas-fired tolling capacity, 1,800 megawatts of full-requirements power supply contracts and an associated trading book. Bear Energy will also acquire various information systems and seek to hire Williams employees.




Williams said it expects to sell its remaining power assets this year as it exits the business entirely. It believes those assets are worth about $50 million.


Read more at Reuters.com Mergers News

Housing to weigh more than expected on growth

(Reuters) - Real gross domestic product, the government's broadest measure of economic output, is expected to advance 2.3 percent in 2007. That is down from an earlier estimate in February for 2.8 percent growth, a survey conducted by the National Association for Business Economics found.




The lower forecast came after the government reported anemic 1.3 percent GDP growth during the first three months of this year.


Read more at Reuters.com Business News

Senegal invests $45 mln to ward off power crisis

(Reuters) - Energy sector sources said last week the former French
colony had a maximum of eight days' fuel left to run its power
plants, meaning recent power cuts -- some already lasting up to
10 hours a day -- could reach "unprecedented" levels.




State electricity firm Senelec, hit by a cash crunch caused
by rising consumption and high fuel prices, owes local oil
companies more than 20 billion CFA francs and they
have said they will only deliver if paid up front.


Read more at Reuters.com Bonds News

American Movil, Grupo Kuo, Grupo Mexico and Qualitas: Mexico Equity Movers

(Bloomberg) -- Mexico's main stock index rose to a
record for a fourth session, led by mobile-phone company America
Movil SAB.

The Bolsa index gained 143.30, or 0.5 percent, to 30,819.64 at
10:13 a.m. New York time.


Read more at Bloomberg Stocks News

Saks profit tops estimates as sales improve

(Reuters) - Profit fell to $11 million, or 7 cents a diluted share, in the first quarter ended May 5 from $77.9 million, or 57 cents a share, a year earlier.




Excluding special items, including expenses of 9 cents a share tied to retention and severance costs, profit in the latest quarter was 19 cents a share. Analysts had expected 15 cents, according to Reuters Estimates.


Read more at Reuters.com Market News

Israel rejects Cerberus bid for Leumi option extension

(Reuters) - The U.S. hedge fund group in late 2005 bought a 9.99 percent
stake in Leumi and received an option to buy a further 10.01
percent holding by May 24, 2007 that would give it control.




Read more at Reuters.com Mergers News

Freddie Mac sells $4.5 billion in bills

(Reuters) - The six-month bills were priced at 97.4459 and have a money
market yield of 5.213 percent.




Settlement is May 22.


Read more at Reuters.com Bonds News

UPDATE 1-Point Therapeutics says FDA puts cancer study on hold

(Reuters) - The bipharmaceutical company said its independent data
monitoring committee recommended stopping the studies because
neither the main nor secondary goal was met.




The company was conducting two late-stage trials with
talabostat in combination with another cancer drug.


Read more at Reuters.com Government Filings News

Google, Salesforce in talks to form alliance: report

(Reuters) - The paper said one outcome could be a Web-based offering that integrates some of Google's online services such as e-mail and instant-messaging with those of Salesforce.com, whose customer-relationship management tools help salespeople track their accounts.




Salesforce.com shares rose by around $2.14 to $47.94 in pre-market trading while Google shares were flat at around $470.


Read more at Reuters.com Hot Stocks News

Blackstone sets IPO, China to take stake

(Reuters) - NEW YORK, May 21 - Blackstone Group LP [BG.UL] on Monday said it planned to raise as much as $4.13 billion in its initial public offering, one of the year's most eagerly awaited from a U.S. company.



The news comes after Blackstone on Sunday said China's new state investment agency would take a $3 billion nonvoting stake in the private equity firm.


Read more at Reuters.com Mergers News

U.S. Notes Are Little Changed, Near Three-Month High on Outlook for Growth

(Bloomberg) -- U.S. 10-year notes were little
changed as last week's decline, which pushed yields to the
highest in three months, attracted investors who are betting on
slower economic growth and lower interest rates.

Treasuries fell the most since January last week, with 10-
year yields approaching the 2007 high of 4.90 percent reached on
Jan. 26. U.S. notes erased earlier gains after a rise in
European equities dimmed the allure of fixed income assets and
prompted traders to pare bets the Federal Reserve will cut
interest rates this year.


Read more at Bloomberg Bonds News

Anadarko to sell Qatar operations for $350 million

(Reuters) - Those companies together hold about 92.5 percent of two blocks in Qatar, including the Al Rayyan field that is currently producing about 6,000 barrels of oil per day.




Anadarko said it would retain its exploration interests in Qatar in blocks 4 and 11.


Read more at Reuters.com Bonds News

Ukraine Inflation to Ease to Slowest Pace Since 2002, Central Banker Says

(Bloomberg) -- Inflation in Ukraine will ease
to the slowest pace since at least 2002 this year as the
central bank prints less money and buys and sells dollars
to keep the hryvnia stable, the bank's deputy governor
said.

The annual inflation rate will probably fall to 7
percent by the end of this year from 11.6 percent a year
earlier, Oleksandr Savchenko said in an interview yesterday
in Kazan, Russia.


Read more at Bloomberg Emerging Markets News

Crude Oil Rebounds, Climbs Above $65 on U.S. Gasoline-Inventory Concerns

(Bloomberg) -- Crude oil climbed above $65 a barrel in
New York amid concern the U.S. won't have enough gasoline when the
summer driving season starts next week.

ConocoPhillips and Murphy Oil Corp. shut refinery units for
repairs last week, heightening concern not enough gasoline was
being produced. Gasoline supplies fell 7.5 percent below their
five-year average during the week ended May 11, according to the
U.S. Energy Department.


Read more at Bloomberg Commodities News

Fifth Third Bancorp to buy R-G Crown Bank for $288 mln

(Reuters) - R-G Crown Bank operates 30 branches in Florida and three in
Augusta, Georgia.





Read more at Reuters.com Mergers News

Infinera sets IPO at 14 mln shares, $10-$12 each

(Reuters) - Infinera expects to receive about $139 million in net
proceeds from the IPO, according to an amended filing with the
U.S. Securities and Exchange Commission.




Read more at Reuters.com Government Filings News

OPEC Has No Plans to Boost Crude Oil Output, Say Libyan, Qatari Officials

(Bloomberg) -- OPEC, which supplies about two-fifths
of the world's oil, won't heed calls from consumers to increase
output for the summer driving season, officials from Libya and
Qatar said.

``We are convinced that the market is not short of
supply,'' Qatari Energy Minister Abdullah Al-Attiyah told
reporters in the Persian Gulf nation's capital Doha today.
Geopolitical risks in the Middle East and Africa are pushing oil
prices higher, rather than a lack of production, he said.


Read more at Bloomberg Energy News

No agreement yet on EADS steps - Germany

(Reuters) - "In July there will be a meeting in Toulouse and only then
will they talk in detail about EADS," government spokesman
Thomas Steg told a regular news conference.




"There are not yet any firm common decisions," said Steg,
adding the government had noted Sarkozy's most recent comments
that he and Merkel were united in the need to move urgently on
EADS.


Read more at Reuters.com Mergers News

European Stocks Erase Losses; Paced by BHP Billiton, Xstrata Pace Decline

(Bloomberg) -- European stocks erased declines, paced
by BHP Billiton Ltd. and Anglo American Plc as metal prices rose.

The Dow Jones Stoxx 600 Index was little changed at 394 as
of 10:10 a.m. in London. The measure earlier fell as much as 0.4
percent. The Stoxx 50 slid 0.1 percent as did the Euro Stoxx 50,
a measure for the 13 nations sharing the euro.


Read more at Bloomberg Stocks News

Corn Rises in Chicago on Lower China Export Forecast; Soybeans, Wheat Gain

(Bloomberg) -- Corn futures in Chicago rose for the
first day in three after China's state-owned grain forecaster
said the world's second-largest producer may cut exports of the
animal feed and boost overseas purchases to meet domestic demand.

China's corn exports may fall 60 percent to 2 million metric
tons in the year through September 2008, while imports may rise
fivefold to 500,000 tons, Wang Xiaohui, a director at China
National Grain and Oils Information Center, said in an interview
in Beijing today. Lower Chinese sales may lead to greater demand
in Asia for supplies from other producers, including the U.S.


Read more at Bloomberg Commodities News

Malaysian Yields to Fall Below 3 Percent This Year, Affin Investment Says

(Bloomberg) -- Malaysia's local-currency bond yields
will drop below 3 percent by the end of the year as the prospect
of a stronger currency boosts demand for debt, according to Affin
Investment Bank Bhd.

Yields on benchmark three-year notes will fall to 2.5 percent
from the current 3.07 percent, while those on five- and 10-year
notes will both drop to 2.8 percent from 3.05 percent and 3.09
percent respectively, the Kuala Lumpur-based bank said in a report
to clients today.


Read more at Bloomberg Bonds News

UPDATE 1-Sumitomo Mitsui net profit down 36 pct; sees rise

(Reuters) - TOKYO, May 21 - Sumitomo Mitsui Financial Group
in the 12 months through
March, below the 458 billion yen average projection of eight
analysts polled by Reuters Estimates.


Read more at Reuters.com Market News

U.K. Pound Trades Near 2-Month Low; Survey Shows House Prices Are Cooling

(Bloomberg) -- The U.K. pound traded near its lowest
in two months after an industry survey showed house-price
inflation slowed this month, easing pressure on the Bank of
England to keep raising interest rates this year.

The pound fell for a fourth week against the dollar, its
longest losing run in 15 months, as investors scaled back
expectations for rate increases this year. The pound extended its
drop after a report last week showed sales at U.K. retailers
unexpectedly fell in April.


Read more at Bloomberg Currencies News

Lewis says FY normalised headline EPS up 23 pct

(Reuters) - South African furniture retailer Lewis' on Monday said full year normalised headline earnings per share rose 23 percent to 654.4 cents.

The retailer said merchandise sales for the year to end-March was up 15.4 percent to 1.8 billion rand, with normalised operating profit 18 percent higher at 859.9 million rand.


Read more at Reuters Africa

Shanghai metals bounce, ignore China tightening

(Reuters) - Shanghai copper and zinc prices bounced by 4 percent on Monday after a week-long slide despite new measures by China to slow growth.

Shanghai August copper was at 64,120 yuan a tonne at midday, up 4.5 percent or 2,760 yuan from Friday's close, while July zinc was higher at 30,720 yuan.


Read more at Reuters Africa