India's Bonds Decline as Debt Auctions to Drain Surplus Money From Banks

(Bloomberg) -- India's government bonds declined for a
second day on concern debt auctions today and tomorrow will leave
banks with less money to invest in the securities.

Benchmark 10-year bond yields climbed to the highest in more
than a week as the government prepared to sell 90 billion rupees
($2.2 billion) of debt today. Surplus funds in the financial
system may drop further tomorrow as the central bank sells two-
year debt and boosts a weekly treasury bill sale by 50 percent.


Read more at Bloomberg Bonds News

European Energy Stocks May Rise, Led by Eni, Technip; Ryanair May Fall

(Bloomberg) -- European energy stocks may advance as
crude oil traded near a two-week high in New York. Eni Spa and
Technip SA may gain after their U.S.-traded securities rose.

Ryanair Holdings Plc may decline after Europe's biggest low-
fare airline forecast losses in the second half of the year.


Read more at Bloomberg Stocks News

Deutsche Telekom, Ryanair, Sol Melia, Grupa Lotos: European Equity Preview

(Bloomberg) -- The following stocks may rise or fall
in European markets. Prices are from the last close.

The Dow Jones Stoxx 600 fell 0.3 percent to 399.02. The Dow
Jones Stoxx 50 Index declined 0.3 percent to 3961.24. The Euro
Stoxx 50 Index, a benchmark for the 13 nations using the euro,
dropped 0.4 percent to 4537.81.


Read more at Bloomberg Stocks News

KEPCO set to buy $100mln Australia coal mine stake

(Reuters) - Lee said the company is also looking to buy 10 percent
stakes in Australia's Anvil and Tarabora coal mines, but he
could not give any further details on the seller or
investment.




Read more at Reuters.com Mergers News

U.S. Service Industries Probably Stayed Close to Three-Month High in May

(Bloomberg) -- Service industry expansion in the
U.S. stayed close to a three-month high in May, helping the
economy bounce back from its first-quarter slowdown, economists
said before a report today.

The Institute for Supply Management's index of non-
manufacturing businesses, including banks, builders and
retailers, was at 55.8 in May after a reading of 56 the prior
month, according to the median forecast of 72 economists in a
Bloomberg News survey. Readings above 50 signal growth.


Read more at Bloomberg Bonds News

Dow, S&P close at records as energy shares rise

(Reuters) - Wal-Mart Stores Inc. rose 3.5 percent, boosting the Dow and the S&P, after several brokerages raised their ratings on the retailer's shares.




Energy stocks led the S&P higher as oil climbed above $70 in London on news that a cyclone was headed toward the oil-producing Arabian peninsula with the potential to disrupt supply. Shares of Chevron Corp. rose 1.1 percent to $83.13.


Read more at Reuters.com Business News

Trichet's Split With Protege Noyer on Money Supply Clouds ECB Rate Outlook

(Bloomberg) -- European Central Bank chief Jean-
Claude Trichet has parried criticism from Nicolas Sarkozy, the
new president of his native France. Fresh doubts from Trichet's
protege at the French central bank may be harder to ignore.

As the ECB prepares to raise its key interest rate to a
six-year high of 4 percent tomorrow, Trichet's faith in the
importance of money supply is being questioned by Christian
Noyer, 56, who succeeded him as governor of the Bank of France
and sits with him on the ECB's governing council.


Read more at Bloomberg Currencies News

China Will Raise Lending, Deposit Rates This Year, Economist Survey Shows

(Bloomberg) -- China may raise lending and deposit
rates at least once more this year to cool investment and curb
asset bubbles, a survey showed.

Benchmark one-year borrowing costs will rise from 6.57
percent and deposit rates from 3.06 percent, according to 21 of
25 economists surveyed by Bloomberg News. The central bank may
order lenders to set aside more money as reserves at least two
more times, 16 economists said.


Read more at Bloomberg Emerging Markets News

Avaya says in deal with TPC, Silver Lake for $8.2 bln

(Reuters) - Avaya's small size compared with rivals like Cisco Systems Inc. has long made the company a subject of takeover speculation. Such talk intensified last week after Avaya postponed an investor conference.




Read more at Reuters.com Business News

Japan's Auto, Commodity Shares Rise, Led by Denso, Inpex; Banks Limit Gain

(Bloomberg) -- Japanese automotive-related shares
such as Toyota Motor Corp. rose as concern eased a slowdown in
the U.S. economy will drag on the companies' profit growth.

Denso Corp., an auto-parts maker affiliate of Toyota,
jumped 2.3 percent. Inpex Holdings Inc., Japan's largest oil
explorer, advanced 0.9 percent.


Read more at Bloomberg Stocks News

Australia's S&P/ASX 200 Drops From a Record, Led by Metcash, Retailers

(Bloomberg) -- Australia's S&P/ASX 200 Index fell from
a record high. Metcash Ltd. dragged retailers lower after it
posted profits that missed some analysts' estimates.

The S&P/ASX 200 Index lost 8.80, or 0.1 percent, to 6384.10
as of 10:32 a.m. in Sydney. About 11 stocks declined for every
eight that gained. The benchmark yesterday closed at a record
after reaching as high as 6409.20.


Read more at Bloomberg Stocks News

New Zealand Probably Will Keep Key Interest Rate at Record 7.75 Percent

(Bloomberg) -- New Zealand's central bank will keep its
benchmark interest rate unchanged at a record high this week amid
signs that increases in March and April are curbing consumer
spending and business investment.

Reserve Bank Governor Alan Bollard will keep the official cash
rate at 7.75 percent on June 7, according to 10 of 13 economists
surveyed by Bloomberg News. Three predict a quarter-point increase.


Read more at Bloomberg Bonds News

Japanese Stocks May Advance After Oil, Copper Prices Rise; Inpex May Climb

(Bloomberg) -- Japanese stocks may gain, paced by
commodity-related shares after crude oil jumped to above $66 a
barrel and copper climbed to the highest in three weeks.

Inpex Holdings Inc., Japan's largest oil explorer, and Mitsui
Mining & Smelting Co., the world's biggest maker of copper foil,
may advance.


Read more at Bloomberg Stocks News

Murdoch calls Dow Jones meeting "constructive"

(Reuters) - Murdoch and his son James, met key members of the Bancroft family, which in total holds 64 percent of the voting power in Dow Jones, for the first time in New York.




"We had a very long and constructive meeting," Murdoch told reporters as he left the meeting at the offices of the Bancroft family advisers.


Read more at Reuters.com Business News

UPDATE 1-Amgen to buy kidney disease drug co. for $420 mln

(Reuters) - Directors from each company and shareholders of Ilypsa have
approved the proposed acquisition. The deal should close by the
third quarter of 2007, the companies said.




Santa Clara, California-based Ilypsa's lead experimental
drug candidate is ILY101, which is designed to treat
hyperphosphatemia in chronic kidney disease in patients on
hemodialysis.


Read more at Reuters.com Mergers News

CFO of U.S. subprime lender New Century resigns

(Reuters) - It disclosed Bindra's resignation in a U.S. Securities and
Exchange Commission filing.




Separately, New Century said the U.S. bankruptcy court in
Wilmington, Delaware approved revised plans last week to help
it retain key employees.


Read more at Reuters.com Bonds News

Bill Greehey, 70 and Fresh From Building Valero, Maps Expansion at NuStar

(Bloomberg) -- Bill Greehey, who built Valero Energy
Corp. into the largest U.S. refiner, said he plans to achieve
similar growth through acquisitions at NuStar Energy LP, the
pipeline partnership he now heads.

Possible purchases for NuStar, a former Valero subsidiary
that owns crude oil and fuel pipelines and storage, include two
asphalt plants Citgo Petroleum Corp. is selling. Greehey, 70,
turned his full attention to NuStar after stepping down as
chairman of Valero in January.


Read more at Bloomberg Exclusive News

Fannie, Freddie Credit Derivatives to Trade on U.S. Futures Exchange

(Bloomberg) -- The U.S. Futures Exchange said it
will offer an index of credit derivatives that is exclusive to
debt issued by Fannie Mae and Freddie Mac, the largest sources
of money for U.S. home loans.

The index will begin trading in the fourth quarter, the
Chicago-based exchange said in a statement today. It is being
created in collaboration with David Boberski, head of interest
rate strategy at Bear Stearns Cos., the exchange said.


Read more at Bloomberg Bonds News

No Donald Trump at Conrad Black's trial: lawyer

(Reuters) - The celebrity real estate magnate's name had surfaced earlier in the trial in testimony indicating that Black gave him a proxy so he could appear at a shareholders meeting to help quell anger among rebellious shareholders of Black's one-time media giant, Hollinger International Inc.




Trump also figures in a controversial surprise birthday party Black threw in 2000 for his wife Barbara Amiel Black at La Grenouille restaurant in New York. Prosecutors contend Black fraudulently charged Hollinger International $40,000 for the party when it was a social, not a business affair.


Read more at Reuters.com Bonds News

Cray says may not post profit in 2007

(Reuters) - Earlier, the company had expected to ship the product in the beginning of the fourth quarter, leading to revenue recognition in 2007.




"It now looks too tight to expect revenue recognition in the fourth quarter," Henry said.


Read more at Reuters.com Hot Stocks News

N.Y. Oil Futures Rise Above $66 to a One-Month High on Higher Fuel Demand

(Bloomberg) -- Crude oil rose above $66 a barrel to a
one-month high in New York on signs surging fuel prices aren't
slowing the growth of demand and that supplies from Nigeria may
be further disrupted.

Total implied fuel demand in the U.S. averaged 20.9 million
barrels a day in the four weeks ended May 25, up 2.4 percent from
a year earlier, according to the Energy Department. The
department measures shipments from refineries, pipelines and
terminals to calculate demand. Union officials in Nigeria's oil
and gas industry said they plan to support a general strike.


Read more at Bloomberg Energy News

Brazil's currency falls 1 pct after slump in China

(Reuters) - Chinese stocks tumbled 8.3 percent on Monday, extending
last week's 4.3 percent fall, as investors continued to fret
about a hike in a stock-trading tax -- the latest move by
authorities to cool a market that had nearly tripled in value
in the past year.




Read more at Reuters.com Bonds News

TEXT-Fitch release on new U.S. RMBS criteria

(Reuters) - The changes will be effective for transactions closing in August 2007. As
U.S. home price growth has slowed and begun to fall, mortgage delinquency
rates, particularly subprime mortgage delinquencies, have risen.




The concomitant rise in mortgage foreclosures has resulted in a focus by
policy makers, regulators, community groups and mortgage/securitization
industry participants on ways to assist homeowners in avoiding foreclosure. One
approach that is gaining increasing favor is loan modification, which means
changing the terms of the mortgage in order to make the payments more
affordable to the borrower.


Read more at Reuters.com Bonds News

Doral says gets rival buyout bid

(Reuters) - San Juan-based Doral said it will review the offer by FBOP Corp., a privately-held Oak Park, Illinois-based banking company, to take an 80 percent stake by acquiring $610 million of stock at $1.41 per share.




That compares with the 63 cents per share offer for a 90 percent stake that Doral on May 17 said it accepted from a group led by Bear Stearns Merchant Banking. Doral would also receive $610 million under that agreement.


Read more at Reuters.com Bonds News

Deutsche Bank expands MBS research with five hires

(Reuters) - Yan Dong, William Natcher and Jichun Wu also joined
Deutsche as vice presidents in MBS research reporting to Shen,
the company said in a release.




Frank was most recently with Barclays Capital as director
in the mortgage strategy group. Shen joins from JPMorgan
where he was head of credit trading modeling. Dong came
from UBS , Natcher from National City Corp.
and Wu from Freddie Mac .


Read more at Reuters.com Bonds News

Corn Falls as Weekend Rain Boosts Early Growth Prospects for U.S. Crops

(Bloomberg) -- Corn fell in Chicago as weekend rains
in the Midwest eased concern that newly planted crops may be
damaged by dry soil in the U.S., the world's largest producer.

Most fields got at least 0.5 inch (1.3 centimeters) of rain
the past three days, with a few areas receiving as much as 2
inches, said John Dee, president of Global Weather Monitoring in
Mohawk, Michigan. The next chance for 1-inch rains is June 6,
with a second storm forecast beginning June 11, Dee said.


Read more at Bloomberg Commodities News

Russia's Evraz offers to buy rest of Highveld

(Reuters) - Evraz Group, Russia's largest steel maker by domestic volume, has offered to buy all the shares in South Africa's Highveld Steel and Vanadium Corp it does not already own.

Evraz, which owns 54.1 percent of Highveld, said on Monday it was offering $11.4 per share, 31 percent more than the price it paid to Anglo American Plc for its current stake.


Read more at Reuters Africa

Amylin, Continental Airlines, Flextronics, XTO Energy: U.S. Equity Movers

(Bloomberg) -- The following is a list of companies
whose shares are having unusual price changes in U.S. exchanges
today. Stock symbols are in parentheses after company names.
Share prices are as of 10:15 a.m. New York time.

Amylin Pharmaceuticals Inc. (AMLN US) fell $1.76, or 3.8
percent, to $45 and traded as high as $45.69. The pharmaceutical
company said in a statement send by PR Newswire that it intends
to sell $400 million of convertible bonds to help fund drug
development and market products that are approved for sale.


Read more at Bloomberg Stocks News

Sugar in New York Falls for Fifth Session as Global Output Exceeds Demand

(Bloomberg) -- Sugar in New York fell for a fifth-
straight session, the longest slide since January, amid
speculation that a global surplus of the sweetener may be bigger
than previously forecast.

World sugar production may exceed demand by 10 million
metric tons as output rises in Brazil and India, Helmut Ahlfeld,
managing director of F.O. Licht in Ratzeburg, Germany, said in
an e-mail on June 1. The London-based International Sugar
Organization earlier predicted a surplus of 9.2 million tons in
the year through September.


Read more at Bloomberg Commodities News

Fannie Mae to sell $5.5 bln in bills on Wednesday

(Reuters) - Bids will be accepted from authorized dealers from 9:00
a.m. EDT , until 9:45 a.m. EDT .




Settlement is June 6-7.


Read more at Reuters.com Bonds News

Syria Plans to Abandon Peg to Dollar, Link Currency to IMF Drawing Right

(Bloomberg) -- Syria will abandon its currency's peg
to the U.S. dollar and link it instead to International Monetary
Fund special drawing rights, according to the central bank.

The government must ratify the decision before the Syrian
pound can be linked to the drawing rights, said a spokesman who
declined to be named because of central bank rules. The value of
SDRs is determined against a basket of currencies including the
dollar, euro, yen and U.K. pound.


Read more at Bloomberg Emerging Markets News

BR Malls, Cosan Petrobras, Telemar, Vale do Rio Doce: Brazil Equity Movers

(Bloomberg) -- Brazil's main stock index fell for the
second time in three days, led by mining company Cia. Vale do Rio
Doce.

The Bovespa Index of the most-traded stocks on the Sao Paulo
exchange fell 365.70, or 0.7 percent, to 53,056.97 as of 9:40 a.m.
New York time.


Read more at Bloomberg Stocks News

Platinum Rises in New York on Risk of South Africa Strike; Palladium Falls

(Bloomberg) -- Platinum rose in New York on
speculation that miners may strike in South Africa, the world's
biggest producer of the metal. Palladium fell.

South Africa's National Union of Mineworkers rejected an
initial wage offer from Anglo Platinum Ltd., analyst James Steel
of HSBC Securities (USA) Inc. said in a report dated May 31.
South African companies last month started biennial wage talks
for agreements expiring in June.


Read more at Bloomberg Commodities News

U.S. Stocks Decline After Chinese Shares Tumble; Alcoa, JPMorgan Drop

(Bloomberg) -- U.S. stocks fell after China's
benchmark index plunged 7.7 percent on speculation the country's
government won't try to halt a slide that has erased more than
$350 billion of market value in four days.

Alcoa Inc., the world's second-largest aluminum producer,
and JPMorgan Chase & Co., the third-largest U.S. bank, declined.


Read more at Bloomberg Stocks News

Dendreon, Digene, Flextronics, Sirius, Solectron: U.S. Equity Preview

(Bloomberg) -- The following is a list of companies
whose shares may have unusual price changes in U.S. exchanges
today. This preview includes news that broke after exchanges
closed June 1. Stock symbols are in parentheses after company
names. Share prices are as of 9:10 a.m. New York time.

Abbott Laboratories (ABT US) fell 75 cents, or 1.3 percent,
to $55.55 in trading before of U.S. exchanges. Shares of the
drugmaker may fall to $48 as questions about the safety of its
TriCor cholesterol drug rise, Barron's said, without citing
anyone. Abbott stock fell 5 cents to $56.30. ``There is
absolutely no data to substantiate any change to the safety and
efficacy of TriCor,'' Laureen Cassidy, a spokeswoman for Abbott,
told Bloomberg News.


Read more at Bloomberg Stocks News

Abbott Labs, Onyx Pharmaceuticals, Sirius, Solectron: U.S. Equity Preview

(Bloomberg) -- The following is a list of companies
whose shares may have unusual price changes in U.S. exchanges
today. This preview includes news that broke after exchanges
closed June 1. Stock symbols are in parentheses after company
names. Share prices are as of 8:10 a.m. New York time.

Abbott Laboratories (ABT US): Shares of the drugmaker may
fall to $48 as questions about the safety of its TriCor
cholesterol drug rise, Barron's said, without citing anyone.
Abbott stock fell 5 cents to $56.30. ``There is absolutely no
data to substantiate any change to the safety and efficacy of
TriCor,'' Laureen Cassidy, a spokeswoman for Abbott, told
Bloomberg News. Shares fell 5 cents to $56.30 in regular trading
yesterday.


Read more at Bloomberg Stocks News

Indonesia's Aneka Tambang Studies Plan to Treble Nickel Production by 201

(Bloomberg) -- PT Aneka Tambang, Indonesia's second-
largest nickel mining company, is studying a plan to more than
tiple production by 2012 of the metal used to help make steel
rust resistant.

Antam, as the company is known, may build a plant with
capacity to make 30,000 to 50,000 metric tons of ferronickel,
Darma Ambiar, development director of the Jakarta-based company,
said today in Manila. He didn't say how much the plant may cost.


Read more at Bloomberg Commodities News

Euro Advances to Record Against Yen on Interest-Rate Outlook

(Bloomberg) -- The euro rose to a record against the
yen on speculation European interest rates will rise faster than
those in Japan.

The euro reached 164.34 yen, before trading at 164.33 as of
8:14 a.m. in New York, compared with 164.14 late June 1. The yen
traded at 121.90 against the dollar, from 122.10 at the end of
last week, when it reached 122.14, the highest since Jan. 29.


Read more at Bloomberg Currencies News

Analysts upgrade Wal-Mart on plans to cut growth

(Reuters) - At Wal-Mart's annual shareholders' meeting on Friday, Chief Financial Officer Tom Schoewe said the company will cut the number of supercenters it plans to open this year by as much as 30 percent as it tries to boost sales at U.S. stores. He also announced that the company would buy back $15 billion of its own stock.




Analysts and investors, who had eagerly awaited those comments, have pushed Wal-Mart to rein in U.S. expansion plans as sales growth at its existing stores, known as comparable store sales, has slowed and it has saturated several markets.


Read more at Reuters.com Business News

EU Orders Finland to Cut New Carbon Permit Grant, Sending Prices Higher

(Bloomberg) -- European Union regulators ordered
Finland to reduce new air-pollution permits for energy and
manufacturing companies by 5.1 percent in a fresh crackdown to
ensure businesses pay for some emissions.

The European Commission cut Finland's carbon-dioxide
allowances for power plants and factories to 37.6 million metric
tons a year from 2008 through 2012. Finland had proposed
granting companies such as utility Fortum Oyj and papermaker
Stora Enso Oyj permits to emit 39.6 million tons a year.


Read more at Bloomberg Energy News

Lafarge declines comment on Tarmac interest report

(Reuters) - The Sunday Times newspaper said that Anglo American
auction of Tarmac and that Lafarge had already expressed an
interest in buying the business.




"The idea of buying Tarmac is not just fanciful, but Lafarge
is looking at many takeover opportunities and Tarmac would just
be one of them," a source close to the situation told Reuters,
adding: "There is really nothing concrete for now."


Read more at Reuters.com Mergers News

Web firm AccessKenya rises 40 pct in share debut

(Reuters) - Shares of Kenyan Internet service provider AccessKenya rose 40 percent to 14 shillings in the debut of the first Internet company on the Nairobi Stock Exchange, brokers said on Monday.

The company had sold 80 million shares, or a 40 percent stake, at 10 shillings each in an initial public offering to raise 800 million shillings and value the company overall at about 2 billion shillings.


Read more at Reuters Africa

U.K. Pound Gains for Third Day as Traders Add to Bets on Rate Increases

(Bloomberg) -- The pound rose for a third day versus
the dollar as traders added to bets the Bank of England will
continue raising interest rates this year.

The currency also traded near the highest in almost 15 years
versus the yen today as a gain in Asian stocks encouraged
investors to use the so-called carry trade, taking advantage of
low interest rates in Japan to fund purchases of higher-yielding
assets, such as the pound. BOE policy makers will announce their
monthly decision on interest rates this week.


Read more at Bloomberg Currencies News

GLOBAL MARKETS-Stocks test peaks despite China fall, dlr firm

(Reuters) - U.S. Treasuries remained under pressure after Friday's strong non-farm payrolls data further dampened expectations of interest rate cuts from the Federal Reserve this year, while technical problems disrupted early bond trading in Europe.




Chinese stocks ended down 8.3 percent, extending last week's 4.3 percent fall, as investors continued to fret about a hike in stock-trading tax -- the latest move by authorities to cool a market that had nearly tripled in value in the past year.


Read more at Reuters.com Economic News

UPDATE 2-Segro sells U.S. unit to HCP for $2.9 bln

(Reuters) - LONDON, June 4 - British property firm Segro
of the proceeds from
the sale of Slough Estates USA to shareholders via a special
dividend.


Read more at Reuters.com Bonds News

Algoma Steel, LionOre Mining International, Tembec Inc.: Canadian Preview

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

The Standard & Poor's/TSX Composite Index rose 62.59, or 0.5
percent, to 14,119.37.


Read more at Bloomberg Stocks News

UPDATE 1-Japan's Orix to buy Internet firm IRI for $87 mln

(Reuters) - The Tokyo Stock Exchange said last month it would delist IRI
shares from its Mothers market for start-ups on June 24 due to
inappropriate earnings-related disclosure.




Ahead of the announcement of the acquisition, shares in Orix
closed down 1.4 percent at 32,650 yen, while IRI shot up 10.9
percent to 7,650 yen.



Read more at Reuters.com Mergers News

Poland Must Reduce Labor Costs to Sustain Economic Growth, Minister Says

(Bloomberg) -- Poland must cut labor costs urgently to
halt emigration, lift employment and avoid a slackening of economic
growth, Deputy Finance Minister Katarzyna Zajdel-Kurowska said.

The nation must end the ``vicious circle'' in which employers
face growing difficulty finding workers as people leave for jobs
abroad and the unemployment rate remains the highest in the
European Union, Zajdel-Kurowska said in an interview on May 31.


Read more at Bloomberg Emerging Markets News