S.Africa debt swap to save $46.7 mln a year - finmin

(Reuters) - A debt exchange in which South Africa issued a $1 billion 15-year global bond and retired short-term paper will save the government $46.7 million per year, Finance Minister Trevor Manuel said on Wednesday.

As part of the exchange, which the government described as a vote of confidence in the economy, South Africa repurchased an equivalent $1.217 billion worth of old dollar-denominated bonds maturing in 2009 and 2017 and euro-denominated notes due 2008.


Read more at Reuters Africa

European Stocks May Drop on China Concern; Lafarge, BP Shares Might Fall

(Bloomberg) -- European stocks may decline after
former Federal Reserve Chairman Alan Greenspan said shares in
China, the world's fastest growing major economy, could face a
``dramatic contraction.''

U.S.-traded securities of Lafarge SA, the world's biggest
cement manufacturer, and BP Plc, Europe's second-largest oil
company, dropped.


Read more at Bloomberg Stocks News

Cable & Wireless upbeat as yr earnings top f'casts

(Reuters) - Analysts were on average expecting the company to report
EBITDA of 453 million pounds, with estimates ranging between 432
million and 477 million pounds.




Cable & Wireless forecast group EBITDA in the range of 573
million and 608 million pounds for the year to March 2008.
Forecasts for its keenly-watched UK business ranged between 210
million and 220 million.


Read more at Reuters.com Market News

Malaysia Palm Oil Futures Gain for Third Day on Demand Outlook for Biofuel

(Bloomberg) -- Malaysia palm oil futures gained for a
third day on concern that supply may lag behind demand as the
biofuels industry grows and limits availability of the commodity
for traditional uses in cooking.

The European Union wants biofuels to make up an average 5.75
percent of transportation fuel by 2010 and 10 percent by 2020, in
an effort to reduce dependence on fossil fuels and curb
greenhouse-gas emissions. Biodiesel, which uses palm oil as a
feedstock, constitutes about 80 percent of EU biofuels production,
according to research company Frost & Sullivan Inc.


Read more at Bloomberg Commodities News

Wal-Mart eyes stake in Indian logistics firm-paper

(Reuters) - The unlisted Radhakrishna group, which also has a food
business, could not be immediately reached for comment.




Senior executives from Wal-Mart had visited the back-end
facilities of Radhakrishna and discussed partnership with
senior group officials, the report said.


Read more at Reuters.com Mergers News

UPDATE 2-Qantas eyes sale, buyback after bid collapse

(Reuters) - Qantas told investors it was reviewing ownership of its frequent flyer program and might sell off its express freight joint venture and other operations as part of a "demerger" option being considered to return capital to shareholders.




Qantas shares hit a record high, rising 2.2 percent to A$5.54 by 0253 GMT after the airline reaffirmed previous profit guidance and outlined the options it was considering under a capital management strategy review.


Read more at Reuters.com Market News

Japan's Bonds Fall on Speculation Report to Show Consumer Price Drop Slows

(Bloomberg) -- Japan's government bonds dropped for
a second day before a report tomorrow that may show a decline in
consumer prices slowed in April.

Benchmark 10-year yields climbed to the highest in more
than a month on speculation the report will signal inflation
will soon turn positive, giving the central bank more room to
raise interest rates. A decline in U.S. Treasuries yesterday
also decreased the appeal of Japanese debt.


Read more at Bloomberg Bonds News

Pakistan, Parkson Retail, Vietnam, Azgard Nine Plan Sales: Asia Bond Alert

(Bloomberg) -- The following is a list of bond sales
in Asia expected in the coming days and weeks.

Investment Grade


Read more at Bloomberg Bonds News

Japan Air's Default Swaps Plunge on Report It Asked Banks for $3.3 Billion

(Bloomberg) -- The perceived risk of owning the debt
of Japan Airlines Corp. plunged after a report said the carrier
asked its main banks for up to 400 billion yen ($3.3 billion).

Credit-default swaps based on 1 billion yen of Japan Air
bonds fell by 3 million yen to 20.5 million yen today, the lowest
since March, according to prices from BNP Paribas. The five-year
contracts allow traders to bet on a company's ability to repay its
debt. A decline suggests improving credit quality.


Read more at Bloomberg Bonds News

Japan's Bonds Decline on Speculation Export Demand to U.S. Is Sustainable

(Bloomberg) -- Japan's 10-year government bonds
dropped for a second day ahead of a U.S. durable-goods report that
could ease speculation of a slowdown in demand for Asian exports.

Benchmark yields in Japan climbed to the highest in more than
a month after a decline in Treasuries lifted 10-year U.S. yields
to a level unseen since January. The U.S. economy, Japan's biggest
export market, will achieve a soft landing, Economic and Fiscal
Policy Minister Hiroko Ota said yesterday.


Read more at Bloomberg Bonds News

Japan's Bonds May Fall on Speculation Export Demand to U.S. Is Sustainable

(Bloomberg) -- Japan's 10-year government bonds may
drop for a second day ahead of a U.S. durable-goods report that
could ease speculation of a slowdown in demand for Asian exports.

Benchmark yields in Japan are set to reach the highest in a
month after a decline in Treasuries pushed 10-year U.S. yields to
a level unseen since January. The U.S. economy, Japan's biggest
export market, will achieve a soft landing, Economic and Fiscal
Policy Minister Hiroko Ota said yesterday.


Read more at Bloomberg Bonds News

New Zealand Dollar Is Little Changed on Report Annual Trade Gap Widened

(Bloomberg) -- The New Zealand dollar was little
changed after a government report showed the nation's annual trade
deficit widened for a second consecutive month in April.

The local currency bought 72.94 U.S. cents at 10:53 a.m. in
Wellington, from 72.98 cents before the report was released. It
traded at 72.89 cents in late Asia yesterday.


Read more at Bloomberg Currencies News

Australian Dollar Drops on Nation's Falling Yield Advantage, Metal Prices

(Bloomberg) -- The Australian dollar may decline,
snapping two days of gains, as the yield advantage of the nation's
government bonds over U.S. notes narrows.

The local dollar has fallen 1.9 percent from a 17-year high
reached April 19 as the yield spread between Australian and U.S.
two-year bonds shrunk to 1.41 percentage points from 1.65 points.
The currency also weakened from a one-week high on a drop in
prices of raw materials the country exports, which add about 14
percent to Australia's economic growth.


Read more at Bloomberg Currencies News

UPDATE 1-Limited Brands posts lower quarterly profit

(Reuters) - The company, which earlier this month announced plans to
shed its underperforming apparel businesses, said net income
was $52.9 million, or 13 cents per share, for the quarter ended
May 5, compared with $99.4 million, or 25 cents per share, a
year earlier.




Quarterly sales rose 11 percent to $2.3 billion, while
sales at stores open at least a year gained 4 percent.


Read more at Reuters.com Market News

UPDATE 1-Zumiez posts higher Q1 profit, reaffirms '07 view

(Reuters) - Sales for the quarter rose to $68.8 million from $47.8
million a year ago.




Analysts on average expected earnings of 6 cents a share,
excluding items, on revenue of $68.5 million, according to
Reuters Estimates.


Read more at Reuters.com Market News

UPDATE 2-Boeing CFO has upward, positive bias on outlook

(Reuters) - Speaking at the planemaker and defense contractor's annual
investor presentation in Chicago, which was broadcast over the
Internet, Boeing CFO James Bell acknowledged that Wall Street
analysts are generally expecting greater profit than the
company is forecasting.




He said Boeing would be "more comfortable in addressing"
its outlook after the first half of the year is over, possibly
heralding a rise in company profit forecasts in July.


Read more at Reuters.com Bonds News

Cypress Bioscience, Dillard's RSC, Spartan: U.S. Equity Movers Final

(Bloomberg) -- The following is a list of companies
whose shares had unusual price changes in U.S. exchanges today.
Stock symbols are in parentheses after company names. Shares
prices are as of 4 p.m. New York time.

Advanced Analogic Technologies Inc. (AATI US) rose $1.32, or
16 percent, to $9.33. The maker of power-management chips for
mobile phones and computers said Judge Sidney Harris of the U.S.
International Trade Commission ruled the company didn't infringe
Linear Technology Corp.'s (LLTC US) patents. Shares of Linear
fell $1.34, or 3.6 percent, to $35.79.


Read more at Bloomberg Stocks News

International Lease Financing sells $1.5 bln in notes

(Reuters) - The four-year notes have a coupon rate of 5.75 percent and
were priced at 101.968 to yield 5.479 percent or 0.70
percentage point more than Treasuries. With the addition of the
reopening, the total amount of notes is now $1.15 billion.




Barclays Capital, J.P. Morgan and Wachovia Bank were the
other joint lead managers of the sale.


Read more at Reuters.com Bonds News

Zumiez posts higher quarterly profit

(Reuters) - Analysts on average expected earnings of 6 cents a share,
excluding items, on revenue of $68.5 million, according to
Reuters Estimates.





Read more at Reuters.com Market News

Planar acquires home theater products maker for $36.7 mln

(Reuters) - Planar expects the transaction to add to its earnings per
share, excluding items, for 2008.





Read more at Reuters.com Mergers News

Boeing arms chief warns against "peace dividend"

(Reuters) - It is also the lead contractor on the Future Combat Systems program -- a $200 billion push to turn the U.S. Army into a mobile, electronically linked force -- which Democrat-controlled Congress is looking to prune.




"We've got a change of leadership on Capitol Hill right now, they have different priorities, and there's even talk of a peace dividend," said James Albaugh, head of Boeing's defense unit, at the company's annual investor day.


Read more at Reuters.com Business News

FACTBOX: Agreements reached at U.S.-China meeting

(Reuters) - FINANCIAL SERVICES




-- China will lift a freeze on the entry of new foreign securities firms and resume licensing securities companies, including joint ventures, during the second half of 2007.


Read more at Reuters.com Business News

U.S. Stocks Fall on Greenspan Comments, Reports of Persian Gulf Navy Ships

(Bloomberg) -- Most U.S. stocks fell on reports
former Federal Reserve Chairman Alan Greenspan warned that
Chinese shares may face a ``dramatic decline'' and on speculation
the military is adding to forces near Iran.

Shares of utility and technology companies led the retreat.


Read more at Bloomberg Stocks News

CORRECTED: Dick's Sporting profit up on Golf Galaxy buy

(Reuters) - The sporting goods retailer said first-quarter net income rose to $21.7 million, or 38 cents a share, from $11.4 million, or 21 cents a share, a year earlier.




Quarterly net sales totaled $823.6 million, falling short of Wall Street's expectations.


Read more at Reuters.com Business News

SEC Approves Plan to Boost Competition for Standard & Poor's and Moody's

(Bloomberg) -- The U.S. Securities and Exchange
Commission approved rules to allow additional credit-rating
companies to gain federal recognition, a move that may create
competition for Standard & Poor's and Moody's Investors Service.

The changes, adopted today on a 5-0 vote, were prompted by
legislation passed by Congress in September. They would allow
credit-rating firms to register for federal designation after
providing the SEC with audited financial statements, details on
their performance and certifications from institutional clients.


Read more at Bloomberg Bonds News

Fed's Kroszner: don't prejudge new mortgage rules

(Reuters) - "What we are doing ... is making sure that we address
predatory practices. But also being mindful that we
don't want to restrict consumers' access to responsible
subprime lending and responsible lending in other parts of the
market," he said.




Read more at Reuters.com Bonds News

Chinese to face strong views from lawmakers: Paulson

(Reuters) - "Hopefully it will be a good two-way dialogue and a learning experience on both sides," he said.




Wu is scheduled to meet with House Speaker Nancy Pelosi, a California Democrat, and members of the House Ways and Means Committee on Wednesday.


Read more at Reuters.com Business News

Barclays says expects to publish ABN offer in 6 wks

(Reuters) - Barclays said it was confident there would be no substantive
anti-trust issues to address for the deal.




Read more at Reuters.com Mergers News

U.S. says China sees need to rebalance its economy

(Reuters) - "While we have much more work to do, we have tangible results for our efforts thus far," Paulson said in closing remarks after two days of talks on economic issues between top-level officials from the two countries.




Paulson said agreement had been reached on "significant items in financial services, energy and the environment and civil aviation."


Read more at Reuters.com Business News

UPDATE 2-US mortgage applications rise but sales seen tepid

(Reuters) - NEW YORK, May 23 - U.S. mortgage applications
rose last week for the fourth time in five weeks, although
housing sales may languish as lenders make it more difficult to
get loans approved, industry executives said.




Many lenders have tightened standards as defaults and
foreclosures mount on mortgages made to borrowers with
blemished credit histories.


Read more at Reuters.com Economic News

UPDATE 1-China to expand access to financial services -U.S.

(Reuters) - China will remove a bar on new foreign securities firms and
resume licensing securities companies, including joint
ventures, in the second half of 2007, the Treasury announced at
the conclusion of two days of high-level talks on U.S.-China
economic issues.




Beijing also agreed to allow foreign securities firms to
expand their operations in China to include brokerage, property
trading and fund management, the Treasury said.


Read more at Reuters.com Bonds News

BCE: Cerberus part of third bid group

(Reuters) - BCE has said it is reviewing all strategic alternatives, a process that it expects to complete in the third quarter.




Read more at Reuters.com Mergers News

Foodcorp adds 135 mln euros to bond - lead

(Reuters) - South African food producer Foodcorp on Wednesday increased its 8.875 percent euro high-yield bond due 2012 by 135 million euros, sole lead manager Citigroup said.

The increase, which takes the issue to 310 million euros, was priced at 107.375 percent of face value, the bank said.


Read more at Reuters Africa

Medtronic stock rallies amid signs of ICD recovery

(Reuters) - He said the market for implantable cardioverter defibrillators, or ICDs, "continues on its path to a slow, albeit progressively better, recovery."




The market for the implantable devices, which regulate a dangerously rapid heartbeat, has been depressed since the high-profile industry recalls in 2005.


Read more at Reuters.com Hot Stocks News

NY Gov may soon say WTC insurers suits resolved

(Reuters) - The Democratic governor, who took office in January,
inherited thorny clashes over ground zero, including its
funding. World Trade Center Developer Larry Silverstein had
asked former Republican Gov. George Pataki to help him pressure
the insurers, whom he has taken to court several times.




Read more at Reuters.com Bonds News

Colombia Peso Snaps 11-Day Rally on Speculation Government to Stem Gains

(Bloomberg) -- Colombia's peso weakened for the
first day in 12 on speculation the government will restrict
dollar inflows to stem a rally in the currency that is cutting
into exporters' profitability.

Colombian President Alvaro Uribe yesterday called for
measures to ``control capital that comes into the country to
make a short-term profit.'' The currency has appreciated 27
percent against the dollar in the past 12 months, the most among
70 currencies that Bloomberg tracks against the dollar.


Read more at Bloomberg Currencies News

TREASURIES-Bonds edge higher on bargain-hunting

(Reuters) - Analysts said the 30-year government bond's advance towards
5 percent had triggered modest buying, helping to pull
benchmark yields back from 3-1/2 month highs.




"We saw a little bit of short-covering and dip buying
especially after the 30-year bond challenged the 5 percent
level. The market is consolidating and licking its wounds,"
said Kim Rupert, head of global fixed income analysis at Action
Economics in San Francisco.


Read more at Reuters.com Bonds News

BAT sells its Belgian cigar business

(Reuters) - No price was given for the business, which had gross assets
of 31 million euros at December 31 2006. The
transaction is expected to be completed later this year, BAT
said in a statement.





Read more at Reuters.com Mergers News

Pioneer's Feltus, Manager of Top-Performing Junk Bond Fund, Prefers U.S.

(Bloomberg) -- Andrew Feltus, manager of the top-
performing Pioneer Global High Yield Fund, expects U.S. junk
bonds to outperform those in Europe and emerging markets because
the Federal Reserve will refrain from raising interest rates.

Feltus, who runs the fund at Pioneer Investment Management
in Boston, said policy makers will hold their target interest
rate at 5.25 percent for the next 12 months, encouraging
economic growth and keeping risk premiums on speculative-grade
debt close to record lows. There is about a 25 percent chance
the Fed will lift rates to contain inflation, he said.


Read more at Bloomberg Bonds News

Priceline sees '07 profit at $2.90-$3.10 per share

(Reuters) - Priceline increased the high end of its full-year 2007 target travel bookings range to $4.25 billion. The company also said it saw full-year 2007 travel bookings amounting to $2.27 billion to $2.35 billion for its European operations and $1.83 billion to $1.90 billion for its domestic operations.



) Keywords: PRICELINE OUTLOOK/


Read more at Reuters.com Market News

World Bank gives Kenya $135 mln for Internet

(Reuters) - The World Bank gave Kenya credit worth $135 million on Wednesday to improve Internet usage and the gathering of statistics.

The new credit brings to $289.4 million the amount the bank has committed to lend to the east African nation in 2007. The country was formerly shunned by international donors due to rampant corruption.


Read more at Reuters Africa

Bernstein Raises 2007 Crude Forecast to $59 a Barrel on Gasoline Supply

(Bloomberg) -- Sanford C. Bernstein & Co. raised its
forecast for average oil prices in New York this year by 18
percent to $59 a barrel because an increase in gasoline demand
may outpace supply growth.

Bernstein raised its ratings on Royal Dutch Shell Plc and
ConocoPhilips to outperform on the expectation that their shares
will gain ground on competitors.


Read more at Bloomberg Energy News

Bristol-Myers gets European approval for Orencia

(Reuters) - The move had been expected following approval from a panel of European experts in March. Recommendations from the European Medicines Agency's Committee for Medicinal Products for Human Use are normally endorsed by the EU within 90 days.



The New York-based drugmaker said in November Orencia, given by intravenous infusion, had proved superior in effectiveness after six months to placebo in a clinical trial.


Read more at Reuters.com Government Filings News

Eaton Vance reports lower quarterly earnings

(Reuters) - Eaton Vance said the cost of launching the $5.8 billion
closed-end Eaton Vance Tax-Managed Global Diversified Equity
Income Fund reduced quarterly earnings by 25 cents per share.




The company's shares, which closed at $40.77 on Tuesday,
have climbed 53 percent in the last 52 weeks, handily outpacing
its benchmark Standard & Poor's Index and rivals' share price
performance.


Read more at Reuters.com Market News

Nigeria State Oil Workers Plan Strike From Midnight to Protest Plant Sale

(Bloomberg) -- Workers at Nigerian National
Petroleum Co. will stage a strike at midnight unless an
agreement is reached to save jobs following last week's sale of
the Port Harcourt refinery.

About 6,000 members belonging to the Petroleum & Natural
Gas Senior Staff Association of Nigeria, or Pengassan, and the
National Union of Petroleum & Natural Gas Workers, or Nupeng,
plan to halt work at refineries, depots and other facilities
operated by NNPC, said Lumumba Okugbawa, deputy general
secretary of Pengassan.


Read more at Bloomberg Energy News

Euro Rebounds Against Dollar on Faster Economic Growth, ECB Rate Outlook

(Bloomberg) -- The euro rose against the dollar from a
six-week low on signs euro-region growth at its fastest in almost
six years will spur the European Central Bank to continue raising
interest rates.

The euro rose to $1.3579 as of 7:47 a.m. in New York from
$1.3516, compared with $1.3448 late yesterday. The single currency
also rose against the yen to 163.84, having earlier declined to
163.38, from 163.48 the day before.


Read more at Bloomberg Currencies News

Africa's biggest trade bloc agrees tax system

(Reuters) - Africa's biggest trade bloc COMESA approved a common external tariff system on Wednesday, clearing a major hurdle for a customs union intended to boost trade in some of the world's poorest nations.

The Common Market for Eastern and Southern Africa (COMESA), which represents 20 countries, also urged member states who have yet to join its free trade area to sign up before the planned launch of the customs union in 2008.


Read more at Reuters Africa

Former EMI CEO readying rival takeover bid: paper

(Reuters) - EMI's board recommended a 265 pence a share offer from private equity firm Terra Firma on Monday.




Read more at Reuters.com Mergers News

Claire's Stores, HUB International to Sell Debt: U.S. Corporate Bond Alert

(Bloomberg) -- Claire's Stores Inc., a customer
jewelry retailer, and insurer Hub International Ltd., are among
borrowers planning to sell at least $15 billion of bonds in the
U.S., data compiled by Bloomberg show.

Borrowers have sold $14.8 billion of debt this week,
compared with $30.3 billion in all of last week. Sales year-to-
date total $499.8 billion, up from $440.6 billion a year ago.


Read more at Bloomberg Bonds News

EU's Almunia Says Estonia Must Stem Labor Shortages, Boost Productivity

(Bloomberg) -- European Union Monetary Affairs
Commissioner Joaquin Almunia warned Estonia, the bloc's second
fastest-growing economy, to stem labor shortages and speed up
increases in productivity in order to catch up with wealthier
member states.

``Estonia is not exempt from my warning to pick up the pace
of reform,'' Almunia said in a speech at a conference in
Estonian capital Tallinn today. ``Increasing labor supply and
productivity,'' in Estonia ``remains a key challenge.''


Read more at Bloomberg Emerging Markets News