Japan's Topix Climbs for Fifth Day, its Best Winning Streak Since February

(Bloomberg) -- Japan's Topix index advanced for a
fifth day, the longest winning streak since February.

Trading companies led gains after Daiwa Institute of
Research Ltd. reiterated its ``overweight'' stance on the
industry and raised price estimates for five of the companies
that it covers.


Read more at Bloomberg Stocks News

Duratex, Localiza Rent a Car, Televisa: 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

Deutsche Bank Faces Sanctions in France for Allegedly Destroying Tapes

(Bloomberg) -- French regulators are examining
whether Deutsche Bank AG enabled hedge funds to trade on inside
information, destroying tapes and failing to keep written records
of phone conversations when lining up buyers for a 2002 Vivendi
Universal SA securities sale.

This is the fourth time since April 2006 that European
regulators have targeted Germany's biggest bank for allegedly
breaking securities rules that led to market manipulation or
allowed hedge funds to engage in insider trading. The company was
fined a year ago by U.K. regulators for misleading investors
about a stock offering. French officials accused Frankfurt-based
Deutsche Bank in January of improperly leaking information about
a securities sale and two months later Spanish regulators made
similar allegations.


Read more at Bloomberg Bonds News

UPDATE 1-Colony to pay 4 bln euros for Libya's Tamoil

(Reuters) - Tamoil owns and operates more than 3,000 service stations
in Europe, concentrated in Italy, and has oil refineries in
Italy, Switzerland, Spain and Germany, Colony said.




The Libyan government will retain a 35 percent stake in the
ongoing company, Los Angeles-based Colony said in a statement.


Read more at Reuters.com Mergers News

Indonesian Rupiah Drops on Rate Speculation, Philippine Peso, Ringgit Fall

(Bloomberg) -- Indonesia's rupiah fell to the lowest
in three weeks on speculation the central bank will slow the pace
of interest-rate cuts after making a 12th reduction tomorrow.

Bank Indonesia Governor Burhanuddin Abdullah will reduce the
benchmark rate by a quarter point to 8.50 percent, nine of 12
economists surveyed by Bloomberg News said. The rupiah has gained
about 4 percent in the past three months, raising concern exports
will decline as they become more expensive to overseas buyers.


Read more at Bloomberg Currencies News

Kingfisher Plans $3.6 Billion Airbus Order, Including A380s, People Say

(Bloomberg) -- Kingfisher Airlines Ltd., the only
Indian customer for the Airbus SAS A380, plans to order five
more of the superjumbos this month, becoming the latest airline
to increase orders for the delayed aircraft, two people with
direct knowledge of the matter said.

The carrier also plans to order five A340-600s and five
A350s at this month's Paris Air Show, the people said. The
entire order is worth about $3.6 billion based on list prices.


Read more at Bloomberg Emerging Markets News

Treasury Yields Near Nine-Month High of 5 Percent May Entice Investors

(Bloomberg) -- U.S. Treasuries may rise on
speculation yields near a nine-month high of 5 percent will
attract buyers.

The notes rose yesterday, pushing two-year yields to 5
percent and those on the 10 year to 4.99 percent, as a report
showed U.S. service industries last month grew at the fastest
pace since April 2006. Goldman Sachs Group Inc. said yesterday
that it no longer expects the Federal Reserve to lower borrowing
costs this year and revised its economic growth forecast higher.


Read more at Bloomberg Bonds News

Australian Bank Stocks Gain, Led by ANZ Bank; Toll Drops on Asciano Split

(Bloomberg) -- Australian's S&P/ASX 200 Index was
little changed. Banks including Australia & New Zealand Banking
Group Ltd. rose after the central bank refrained from raising
interest rates.

Toll Holdings Ltd. dropped as shares of its spin-off Asciano
Group trade separately for the first time.


Read more at Bloomberg Stocks News

Australian Stocks Fall, Led by BHP Billiton on Lower Copper, Metals Prices

(Bloomberg) -- Australia's benchmark stock index, the
S&P/ASX 200 Index, fell 0.07 percent at 10:05 a.m.

The index of 201 companies traded on the Australian Stock
Exchange fell 4.20 to 6,366.60. Among the stocks in the index, 55
rose, 61 fell and 85 were unchanged.


Read more at Bloomberg Stocks News

Australia's Employment Probably Gained for Fourth Month, Buoying Economy

(Bloomberg) -- Australian employment probably rose in
May for a fourth straight month, signaling consumer spending and
economic growth may pick up this year.

Employment rose 10,000 after a 49,600 gain in April, according
to the median estimate of 24 economists surveyed by Bloomberg News.
The jobless rate was probably unchanged at a 32-year-low 4.4 percent.
The Bureau of Statistics releases the report tomorrow at 11:30 a.m.
in Sydney.


Read more at Bloomberg Bonds News

UPDATE 1-TD Ameritrade says hedge funds want it to merge

(Reuters) - The brokerage, which has a market value of about $12
billion, according to Reuters data, unveiled the news in a
regulatory filing.




Shares of TD Ameritrade rose 6.7 percent to $21.28 in
extended trade on Tuesday after the news.


Read more at Reuters.com Mergers News

UPDATE 1-Freddie Mac sells $3 bln Strip securities

(Reuters) - The issue, designated Freddie Mac Gold MACS, Series 248, is
scheduled to settle June 26.




Bear Stearns was the lead underwriter for the securities.


Read more at Reuters.com Bonds News

ABC-Wash Post Consumer Comfort Index falls to -15

(Reuters) - Two of the three components of the ABC/Washington Post
index were down from the previous week.




Americans' positive views on their personal finances were
down 1 percentage point to 57 and those on the national economy
fell 2 percentage points to 37. Positive views on the buying
climate were unchanged at 33 percent.


Read more at Reuters.com Economic News

UPDATE 1-Volterra says to post Q2 loss, cuts revenue view

(Reuters) - The low-voltage power supply chipmaker said the product
recall was due to a process defect with one of its vendors,
adding that it would take a $3 million to $4 million
second-quarter charge due to the defective process.




Volterra now expects to post a second-quarter loss of 4
cents to 7 cents a share, excluding items, on revenue of $18.5
million to $19.5 million.


Read more at Reuters.com Market News

Citizens Inc. files for $125 mln stock shelf offer

(Reuters) - Under a shelf registration, a company may sell securities in
one or more separate offerings with the size, price and terms to
be determined at the time of sale.




Read more at Reuters.com Government Filings News

Avaya faces up to $250 mln break-up fee

(Reuters) - NEW YORK, June 5 - Avaya Inc. agreed to pay up to $250 million to private equity firms TPG Capital and Silver Lake if Avaya, the telecommunications equipment maker, backs out of their acquisition deal, though analysts said Tuesday that a counterbid is not likely to emerge.



The $8.2 billion offer, announced on Monday, is expected to be completed in the fall of 2007, subject to approval by shareholders and regulators.


Read more at Reuters.com Bonds News

Muni hedge fund says hires Merrill's Kuller

(Reuters) - Kuller will join 1861 as an assistant portfolio manager,
the fund said in a statement. Kuller was senior director and
manager of the municipal bond credit research group at Merrill
Lynch, and has been at the Wall Street firm for 16 years, the
fund said.




"The hiring of Kurt allows us to expand into other sectors
of the $2.4 trillion municipal bond market, such as housing
bonds, which offer more attractive yields at the 'AAA' and 'AA'
rating levels for our investors," said John Lee, one of the
founders of 1861. "In fact, the state housing finance
authorities are often more highly rated than the states
themselves."


Read more at Reuters.com Bonds News

Exxon Mobil, Enbridge May Build Pipeline to Bring Canadian Oil to Houston

(Bloomberg) -- Exxon Mobil Corp., the world's largest
oil company, and Enbridge Inc. are planning a pipeline to haul
crude from Alberta's tar sands to the heart of the U.S. refining
industry in Texas.

Irving, Texas-based Exxon Mobil and Calgary-based Enbridge
said the line would link a pipeline hub in Patoka, Illinois, to
Beaumont, Texas, and Houston. They declined to comment on the
possible cost. Such a project might cost $2 million per mile to
build, for a total cost of about $1.4 billion, said Steven Paget,
an analyst at FirstEnergy Capital Corp. who has an ``outperform''
rating on Enbridge shares and doesn't own any.


Read more at Bloomberg Energy News

Fed banks wanted flat discount rate in April, May

(Reuters) - The board approved their requests to keep the discount rate steady at 6.25 percent on April 23 and on May 7. The Fed's policy-setting Federal Open Market Committee maintained the federal funds rate on May 9 at 5.25 percent.




"Although directors noted rather weak GDP growth in the first quarter, most expected the overall economy to resume moderate expansion over the balance of the year as the contraction of the housing activity abated," minutes of the May 7 meeting said.


Read more at Reuters.com Bonds News

Wild Oats says FTC suing to block Whole Foods deal

(Reuters) - In February, Whole Foods said it planned to buy smaller
rival Wild Oats for $18.50 a share, or about $565 million, to
compete better with other grocers selling organic and natural
fare.




Read more at Reuters.com Government Filings News

Congress to press FDA over drug safety woes

(Reuters) - Lawmakers will examine this week how the FDA and manufacturer GlaxoSmithKline Plc handled data that suggested the pill Avandia might raise the chances of having a heart attack.




The controversy comes as Congress considers legislation meant to bolster the FDA's oversight of drug side effects. Some critics are using the Avandia case to try to build support for tougher safeguards.


Read more at Reuters.com Government Filings News

Moody's: South Africa outlook positive, was stable

(Reuters) - Moody's Investors Service revised on Tuesday the outlook on South Africa's foreign-currency debt ratings to positive from stable to reflect an improvement in the country's external credit indicators, despite widening current account deficits.

"South Africa's external debt metrics are now generally stronger than those of its rating peers in the 'Baa' rating range," said Moody's analyst Kristin Lindow.


Read more at Reuters Africa

Wheat Rises to 7-Month High as U.S. Crop Condition Declines on Heavy Rains

(Bloomberg) -- Wheat rose to a seven-month high in
Chicago after the government said U.S. crop conditions worsened
because heavy rains damaged fields and slowed the harvest.

Winter wheat in good or excellent condition decline to 53
percent of the crop as of June 3 from 57 percent a week earlier,
the U.S. Department of Agriculture data show. About 1 percent
had been harvested, down from 7 percent a year earlier. Rainfall
was about six times normal from Nebraska to Texas since May 22.


Read more at Bloomberg Commodities News

CEOs more cautious in economic view

(Reuters) - Their forecast of U.S. gross domestic product growth this year also declined. The CEOs now expect 2.6 percent GDP growth, compared with a forecast of 2.9 percent in March.




The majority of CEOs polled -- 66 percent -- expected their companies' sales to rise over the next six months. Forty-two percent said they expected to increase their U.S. staffing over the next six months, and 34 percent said they expected to raise their capital spending over that period.


Read more at Reuters.com Business News

U.S. Stocks Fall After ISM Sends Bond Yields Up; AT&T, Exelon Shares Drop

(Bloomberg) -- U.S. stocks dropped after growth in
the service industry accelerated faster than expected, pushing
the yield on the 10-year Treasury note to a nine-month high.

AT&T Inc. and Exelon Corp. led shares of telephone
companies and utilities to the steepest drops among 10 industry
groups, as rising bond yields make stocks with high dividends
less attractive. Bed Bath & Beyond Inc., the largest U.S. home-
furnishings chain, had the biggest fall in the Standard & Poor's
500 Index after it said earnings will trail its forecast and
Federal Reserve Chairman Ben S. Bernanke warned the housing
slump will continue longer than anticipated.


Read more at Bloomberg Stocks News

Wheat Rises on Report Showing Decline of U.S. Crop Because of Heavy Rain

(Bloomberg) -- Wheat rose in Chicago, continuing a
rally to a five-week high, after a U.S. government report said
the condition of the U.S. winter wheat crop worsened as heavy
rains slowed the harvest and damaged plants.

Some 53 percent of the U.S. winter-wheat crop was in good or
excellent condition as of June 3, compared with 57 percent the
prior week, U.S. Department of Agriculture data show. About
1 percent of the crop was harvested, compared with 7 percent last
year, the USDA said. About six times the normal moisture fell
from Nebraska to Texas in the past 14 days.


Read more at Bloomberg Commodities News

Treasury 10-Year Yield Touches Nine-Month High After Services Gauge Gains

(Bloomberg) -- Treasuries fell, and the benchmark 10-
year note's yield touched a nine-month high, as an unexpected
increase in a gauge of service industries prompted traders to
undo bets that the Federal Reserve will cut interest rates.

Traders who a month ago were convinced the Fed would lower
its target for the overnight lending rate between banks at least
once by year-end now see almost no chance of that happening,
interest-rate futures yields show. The increase in the Institute
for Supply Management's index of non-manufacturing businesses
follows stronger-than-forecast reports on employment and business
activity in the past week.


Read more at Bloomberg Bonds News

Gold Futures Pare Gains in New York on Central Bank Sales; Silver Rises

(Bloomberg) -- Gold in New York pared earlier gains
on speculation that central banks will increase bullion sales.
Silver rose.

European central banks will probably sell all 500 metric
tons of gold allowed under an agreement that goes through Sept.
26, UBS AG said in a report today. UBS previously forecast sales
of 400 tons. Gold gained 1.5 percent on June 1, partly because
the European Central Bank, one of the signatories of the accord,
said it won't sell more gold until September.


Read more at Bloomberg Commodities News

CORRECTED-Moody's, S&P may cut Flextronics on Solectron buy

(Reuters) - Moody's also said it may raise Solectron's ratings on the
acquisition.




Flextronics, the No. 1 U.S. contract electronics maker,
said on Monday it will buy Solectron for $3.6 billion in cash
and stock to cut costs and expand its product line. For
details, see [ID:nN04445158]


Read more at Reuters.com Bonds News

US FDA sets July 30 panel on Glaxo diabetes drug

(Reuters) - Questions about Avandia erupted in May when the New England
Journal of Medicine published an analysis that said the widely
used drug raised heart-attack risk by 43 percent. The FDA and
Glaxo say other evidence conflicts with the finding, and the
agency is weighing whether any regulatory action is needed.




The advisory panel will discuss the cardiovascular risks of
the class known as thiazolidinediones, "with a focus on
rosiglitazone, as presented by FDA and GlaxoSmithKline," the
FDA said. Rosiglitazone is the generic name of Avandia.


Read more at Reuters.com Government Filings News

Gold and Silver Futures Rise in New York on Demand for Dollar Alternative

(Bloomberg) -- Gold and silver in New York rose as a
decline in the value of the dollar boosted the appeal of the
precious metals as alternative investments.

Gold generally moves in the opposite direction of the
dollar, which dropped against the euro today on speculation the
U.S. Federal Reserve won't raise interest rates anytime soon.
Before today, gold had gained 6 percent this year as the euro
climbed 2.2 percent against the dollar.


Read more at Bloomberg Commodities News

European shares extend losses on Bernanke comments

(Reuters) - European shares extended losses on Tuesday after comments by U.S. Federal Reserve chairman Ben Bernanke flagged risks to U.S. economic growth but held out little chance of a rate cut to offset them.

The FTSEurofirst 300 slipped to trade down 0.55 percent at 1,613.12 points, well off its day high of 1,625.87.


Read more at Reuters Africa

ECB's Trichet warns of credit market vulnerability

(Reuters) - European Central Bank president Jean-Claude Trichet warned on Tuesday that credit markets face three vulnerabilities that could trigger an upset to robust global growth and soaring financial markets.

Low risk premia on debt instruments, the explosion of unregulated hedge funds and private equity firms combined with their widespread use of complex new credit derivative instruments form a "triangle of vulnerability", Trichet told international bankers at a conference.


Read more at Reuters Africa

UPDATE 1-Bernanke-US inflation to ebb but risks remain

(Reuters) - WASHINGTON, June 5 - The U.S. economy is set to
grow at a sluggish pace in coming months but there are risks
that elevated levels of inflation excluding food and energy
may not recede, Federal Reserve Chairman Ben Bernanke said on
Tuesday.




"Although core inflation seems likely to moderate gradually
over time, the risks to this forecast remain to the upside,"
Bernanke said in remarks prepared for delivery to a monetary
policy conference in Cape Town, South Africa.


Read more at Reuters.com Bonds News

Dollar Extends Losses Against Euro, Yen on Bernanke's Comments on Housing

(Bloomberg) -- The dollar extended its drop against
the euro and yen after Federal Reserve Chairman Ben S. Bernanke
said tighter lending standards for mortgages will ``restrain''
housing demand longer than policy makers expected.

``The market is taking the tone of Bernanke as a little bit
dovish,'' said Michael Malpede, a senior currency analyst in
Chicago at Man Global Research. ``He is painting a bearish
picture on the housing sector. This may cool market speculation
that we are going to see a rate hike.''


Read more at Bloomberg Currencies News

De Beers sales down, but net earnings up

(Reuters) - The world's biggest diamond producer, De Beers, released its operating and financial review for 2006 on Tuesday, saying sales by its DTC unit were down at $6.15 billion, while net earnings rose 32 percent to $730 million thanks to certain asset sales.

The sales figures confirmed data released in February, when De Beers said sales had fallen from $6.54 billion the year before to the group's second highest level on record.


Read more at Reuters Africa

Avaya faces up to $250 mln break-up fee - filing

(Reuters) - The break-up fee is $80 million if Avaya decides to accept
a superior proposal that is submitted by another party in the
next 50 days. Otherwise, the fee is $250 million, Avaya said in
a filing to the U.S. Securities and Exchange Commission.




Under the terms of the agreement, Ayaya cannot solicit
proposals from additional third parties after July 24, though
it can continue to discussions with any party that submits a
written takeover proposal within the 50 days.


Read more at Reuters.com Mergers News

U.K. FTSE 100 Index Falters as Standard Charter, InterContinental Retreat

(Bloomberg) -- U.K. stocks erased gains as Standard
Charter Plc and InterContinental Hotels Group Plc declined. BHP
Billiton paced advancing shares.

The benchmark FTSE 100 Index retreated 4.6, or 0.1 percent,
to 6659.5 in London at 12:22 p.m. The index rose as much as 0.3
percent earlier. The FTSE All-Share Index slipped 2.78, or 0.1
percent, to 3455.9. Ireland's ISEQ Index declined 196.72, or 2
percent, to 9766.72.


Read more at Bloomberg Stocks News

S.Africa maize ticks up in thin trade

(Reuters) - South Africa's main maize prices crept higher on Tuesday as players restocked after heavy sell-offs in recent weeks, but trade was limited with little impetus to draw on from the United States.

July white maize firmed 0.58 percent to 1,734 rand a tonne in muted trade after weeks of big swings that largely tracked U.S. prices.


Read more at Reuters Africa

RBS not in talks with BofA, says H1 earnings ahead

(Reuters) - Britain's second biggest bank also said on Tuesday its consortium's proposed 71 billion euro takeover of ABN would result in about 19,000 job cuts, fewer than the 23,600 planned by Barclays under a rival offer.




Both estimates exclude LaSalle, which the RBS consortium wants as part of its proposed deal, but which ABN has agreed to sell to Bank of America .


Read more at Reuters.com Hot Stocks News

Zimbabwe raises power tariffs as shortages worsen

(Reuters) - Zimbabwe on Tuesday raised electricity tariffs by more than 50 percent as it battles worsening power shortages in the country and a vicious inflation spiral which has increased economic hardships.

A subsidiary of the state power utility Zimbabwe Electricity Supply Authority (ZESA) Holdings said in a statement it was raising electricity prices for both domestic and industrial use by 50.2 percent and would be making further increases in line with inflation.


Read more at Reuters Africa

Ferragamo to Open New Stores in U.S., China to Spur Growth Ahead of IPO

(Bloomberg) -- Salvatore Ferragamo SpA, whose
luxury shoes have been worn by Audrey Hepburn and Ava Gardner,
will add U.S. and Chinese stores to increase growth before an
initial public offering planned for next year.

Seven outlets will open this year in the U.S., where same-
store sales are rising around 12 percent, in places such as
Boston, Chief Executive Officer Michele Norsa said yesterday in
an interview at a conference in Venice. The company plans to add
six stores in China as revenue jumps as much as 40 percent from
a year earlier on the same basis, he said.


Read more at Bloomberg Stocks News

French Stocks Including Renault Increase; Danone Leads Declining Shares

(Bloomberg) -- French stocks including Renault SA
gained. Groupe Danone dropped after it filed a U.S. lawsuit
against units of its Chinese partner, Hangzhou Wahaha Group.

Alcatel-Lucent slid as its shares traded without the right
to latest dividend.


Read more at Bloomberg Stocks News

European Stocks Rise, Led by Vodafone; Standard Life, Old Mutual Gain

(Bloomberg) -- European stocks advanced on takeover
speculation in the telecommunications industry and as Merrill
Lynch & Co. advised investors to buy U.K. insurers.

Vodafone Group Plc climbed after the Wall Street Journal
said the mobile-phone company could be worth more split into
parts, fueling speculation it may be taken over. Standard Life
Plc and Old Mutual Plc climbed after Merrill Lynch raised its
recommendation on both shares.


Read more at Bloomberg Stocks News

Gold Increases in Asia Trade as Weaker Dollar Boosts Appeal; Silver Rises

(Bloomberg) -- Gold gained in Asia amid speculation
a fall in the dollar will help to boost demand for the precious
metal as an alternative investment. Silver also rose.

Gold generally moves in tandem with the euro which gained
against the dollar on speculation Europe's inflation rate will
quicken, boosting the prospect the European Central Bank will
raise interest rates tomorrow. Gold has risen 5.6 percent this
year, while the euro gained 2.2 percent.


Read more at Bloomberg Commodities News

Intel, Asustek announce plans for low-cost laptop

(Reuters) - Intel, the world's largest chipmaker, has distributed laptops to children in developing countries for years, but has yet to put them into the kind of mass production planned by another group, the One Laptop Per Child Foundation.




Intel and Asustek's low-cost PC would be a fully-fledged, low-end notebook, while the OLPCs are green-and-white plastic, kid-friendly laptops that can be powered with hand cranks when electricity is not available. They cost about $180 each.


Read more at Reuters.com Business News