Thursday, April 26, 2007

GM cuts work at 2 plants after talks fail: WSJ

(Reuters) - The paper cited sources as saying GM told UAW that it was suspending work related to two new-vehicle programs.

UAW and GM could not immediately be reached for comment.


Read more at Reuters.com Business News

Infineon widens Q2 EBIT loss ex-Qimonda

(Reuters) - FRANKFURT, April 27 - Infineon loss excluding memory unit Qimonda was 28 million euros


Read more at Reuters.com Market News

Pearson says trading in line

(Reuters) - The comments came in a trading update ahead of the company's annual shareholder meeting, scheduled later on Friday.

The update marks the first major market announcement since Pearson unveiled annual earnings at the top end of analyst expectations on Feb. 26.


Read more at Reuters.com Market News

UPDATE 1-Dassault Systemes Q1 EPS up 15 pct, to buy UK's ICEM

(Reuters) - Dassault Systemes said first-quarter non-GAAP EPS rose to 0.39 euros. A poll of 10 analysts had given an average analyst EPS forecast of 0.33 euros.

Dassault also announced an agreement to buy UK software group ICEM for around 51.4 million euros , a deal it said should be non-dilutive on its non-GAAP earnings.


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Banorte, Datasul, Weg, Televisa, Fianciero Banorte : Latin 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.

Brazil


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JGB futures hit one-month high, BOJ outlook eyed

(Reuters) - Euroyen futures jumped, recovering from a nine-year low hit earlier in the week, as the data was seen making it hard for the BOJ to justify raising rates with core inflation now stuck in negative territory, falling 0.3 percent year-on-year in March.

The reports caught off guard some market players who had started to speculate this week that the BOJ could raise rates as soon as May or June if upcoming figures were strong.


Read more at Reuters.com Bonds News

Yen hits record low vs euro after data

(Reuters) - Data on Friday showed Japan's core consumer price index declined 0.3 percent in March, compared with forecast 0.2 percent slide.

"The expected timing for the BOJ's next rate rise is being pushed towards the year-end after CPI data," said Mitsuru Sahara, a senior trader at the Bank of Tokyo-Mitsubishi UFJ.


Read more at Reuters.com Hot Stocks News

Yuan's Gains May `Disappoint' Paulson and Investors, Say Westpac, Rabobank

(Bloomberg) -- China may allow the yuan to gain less than analysts forecast in 2007 to discourage speculation, Westpac Banking Corp. and Rabobank International said.

The currency rose 1 percent against the dollar this year, lagging behind an advance of 8.3 percent in India's rupee and 3.1 percent in Malaysia's ringgit. The People's Bank of China's foreign exchange reserves climbed a record $136 billion in the first quarter to $1.2 trillion, a signal of increased sales of yuan to protect exporters' earnings.


Read more at Bloomberg Emerging Markets News

Daido Life to Increase Investment in Hedge Funds, Private Equity in U.S.

(Bloomberg) -- Daido Life Insurance Co., a unit of Japan's only publicly traded life insurer, will boost investment in hedge funds and private equity by as much as 50 billion yen ($420 million) in the fiscal year started April 1.

The Osaka-based company will allocate 10 to 20 billion yen in hedge funds and 30 billion yen in private equity, Akio Shinju, general manager of the firm's investment planning said in an interview yesterday. Holdings of stocks and bonds will be unchanged, he said. As of March 31, Daido Life held 190 billion yen in hedge funds and 120 billion yen in private equity.


Read more at Bloomberg Bonds News

Yen Drops to Record Low Against Euro After Japan's March Inflation Report

(Bloomberg) -- The yen dropped to a record low versus the euro after consumer prices fell more than expected in March and industrial production declined.

Japan's currency headed for an eighth weekly loss against the euro, the worst run since January 2002, before a Bank of Japan semiannual outlook that may show inflation and growth forecasts don't support the case for raising the overnight lending rate from 0.5 percent. The yield gap between 10-year German and Japanese bonds widened to the most in 2 1/2 years.


Read more at Bloomberg Currencies News

N.Z. Dollar Snaps 7 Weeks of Gains on Speculation Central Bank May Sell It

(Bloomberg) -- New Zealand's dollar snapped seven weeks of gains against the U.S. dollar and dropped versus the yen on speculation the central bank may sell its currency to stem an advance to decade highs.

The country's dollar this week dropped the most among the 16 most-actively traded currencies as Reserve Bank of New Zealand Governor Alan Bollard said its level was ``unjustified.'' The New Zealand dollar, or kiwi, reached a 22-year high versus the U.S. dollar and the strongest against the yen in 17 years as investors plowed funds into the nation's high-yielding assets.


Read more at Bloomberg Currencies News

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

(Bloomberg) -- Australian stocks declined, led by BHP Billiton Ltd. and Rio Tinto Group, after prices for metals such as copper, zinc and lead slumped.

The S&P/ASX 200 Index dropped 28.30, or 0.5 percent, to 6183.90 at 10:25 a.m. in Sydney. About two stocks fell for each that gained. The index is set for a 0.4 percent weekly decline.


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UPDATE 3-McAfee profit rises on worldwide demand

(Reuters) - SAN FRANCISCO, April 26 - Security software maker McAfee Inc. on Thursday posted higher first-quarter profit and revenue that topped Wall Street forecasts as demand rose worldwide, sending its shares up more than 3 percent.

Chief Executive Dave DeWalt also said robust technology spending and expectations that strong growth would continue spurred the company to boost its full-year financial forecast.


Read more at Reuters.com Market News

Trade-Weighted U.S. Dollar Index Declines To a Record Three-Decade Low

(Bloomberg) -- The Federal Reserve's trade-weighted dollar index fell to the lowest since its inception in 1971 amid expectations the currency will extend a slide against the euro.

The U.S. Trade Weighted Major Currency Index fell to 78.99 yesterday and is down 2.3 percent this year. The central bank's broad dollar index also dropped to the lowest since July 1997, while the New York Board of Trade's dollar index declined to a two-year low.


Read more at Bloomberg Currencies News

Hartford posts higher first quarter earnings

(Reuters) - Hartford said earnings were $876 million, or $2.71 a share, up from $728 million, or $2.34 a share, in the year earlier quarter.

) Keywords: HARTFORD RESULTS/


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Citigroup Downgrades Apple Shares, Says Stock is Expensive After Rally

(Bloomberg) -- Apple Inc., which surged yesterday after second-quarter profit beat analysts' estimates, was downgraded at Citigroup Investment Research, which said the stock was expensive after rallying 18 percent since the start of 2007.

``While we continue to like Apple's long-term growth opportunity, we see little more than market returns in the shares from current levels,'' wrote analyst Richard Gardner, the top- rated analyst on Apple, according to data from StarMine Inc.


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Reckitt shines after polished Q1 and raised targets

(Reuters) - LONDON, April 26 - Britain's Reckitt Benckiser Plc , the world's biggest household goods maker, posted a higher-than-expected 27 percent rise in first-quarter net profit on Thursday and raised its profit and sales growth targets.

The maker of Cillit Bang cleaner, Finish/Calgonit dishwashing products and Lysol disinfectants posted first-quarter net profit of 179 million pounds , ahead of analyst forecasts of 157-168 million pounds, on actual sales up 8 percent.


Read more at Reuters.com Market News

Bristol names Cornelius CEO

(Reuters) - The company also announced a $1 billion deal with Pfizer Inc. to help develop and sell Bristol's promising apixaban drug to prevent blood clots.

The drugmaker's shares fell 3.3 percent after analysts speculated its tie-up with Pfizer could deter other drugmakers from making an attempt to acquire Bristol.


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Indonesia Stock Index Passes 2000, Led by PT Astra; World's Biggest Mover

(Bloomberg) -- Indonesia's stock index climbed above 2000 for the first time after the government said inflation has stabilized, raising speculation the central bank will cut interest rates. PT Astra International and PT Lippo Karawaci advanced.

``The expectation that we have slower inflation in April or even deflation is spurring demand for stocks,'' said Arfan Karniody, who helps manage about $165 million at PT Niaga Aset Manajemen in Jakarta. ``Interest rate-sensitive companies such as Astra and property companies should benefit.''


Read more at Bloomberg Stocks News

Corrected: Newell Rubbermaid profit lower but beats estimates

(Reuters) - The maker of Rubbermaid containers and Goody hair care products also forecast full-year 2007 earnings in-line with analysts' expectations.

Net income from continuing operations of $65.1 million or 23 cents a share, compared with $130.2 million, or 47 cents a share, a year earlier.


Read more at Reuters.com Business News

Eli Lilly says FDA has all Zyprexa data

(Reuters) - Angel Perez-Agenjo, Eli Lilly director for Denmark and Iceland, said the side-effects of Zyprexa had been reported extensively and that the FDA had been provided with all the data.

"We are working very closely with the FDA on Zyprexa as we are doing with any other product," he told Reuters in connection with the launch of Lilly's Byetta type 2 diabetes drug.


Read more at Reuters.com Government Filings News

Capitec shares jump after PSG offer

(Reuters) - Shares in small South African financial services firm Capitec jumped as much as 3.6 percent on Thursday after bigger rival PSG offered to buy up to 34.9 percent of the company.

PSG said it would offer 1.4545 of its own shares for each Capitec share. It has placed a value of 40.79 rand on each Capitec share which represents a 14 percent premium on Capitec's 30-day volume weighted average price on April 23.


Read more at Reuters Africa

Zimbabwe inflation rises to 2,200 pct in March - c.bank

(Reuters) - Zimbabwe's inflation rose to a new record high of 2,200 percent year-on-year in March, central bank Governor Gideon Gono said on Thursday, in a policy statement that comes amid a deepening economic crisis.

"Year-on-year inflation, which stood at 1072.2 percent in October last year, rose to 1,281.1 in December and has risen to 2,200 percent by March," he said in a televised statement.


Read more at Reuters Africa

US STOCKS-Tech shares set to rise on Apple

(Reuters) - Strong profit reports and reassuring economic data helped pushed the Dow Jones industrial average to a close above 13,000 for the first time on Wednesday.

Apple, the maker of the iPod music device, handily beat analysts' expectations after Wednesday's close, sending its shares up as much as 8 percent in extended-hours trading.


Read more at Reuters.com Bonds News

Beckman Coulter says Biosite notified it of higher bid

(Reuters) - Beckman Colter said it is considering its options and that it is under no obligation to respond to the Biosite notice.




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UPDATE 1-Valero earnings beat Wall Street, ups buybacks

(Reuters) - Stronger refining margins lifted the San Antonio-based company's net income to $1.1 billion, or $1.86 per share, from $849 million or $1.32 a share, a year earlier.

On average, analysts had expected first-quarter earnings to be $1.80 per share, according to data compiled by Reuters Estimates.


Read more at Reuters.com Bonds News

UPDATE 1-Friedman Billings swings to loss in Q1

(Reuters) - The Arlington, Virginia-based company posted a first-quarter net loss of $185.9 million, or $1.08 a share, compared with after-tax earnings of $26.6 million, or 16 cents a share in the year-ago period.

Analsyts had forecasted FBR to earn 13 cents a share during the quarter, excluding any special items, according to Reuters Estimates.


Read more at Reuters.com Bonds News

U.S. newspaper help-wanted ads fall in March

(Reuters) - "The relatively modest ad volume now could be a signal that job growth may be modest this summer," said Ken Goldstein, labor economist at the Conference Board, in a statement.

Help-wanted ads declined in eight of nine U.S. regions in the last three months, with the largest falls in the East South Central, South Atlantic and East North Central regions, the Conference Board said. Ads in the East South Central region fell 22.6 percent.


Read more at Reuters.com Bonds News

Barclays says ABN bid "stark contrast" with rivals

(Reuters) - LONDON, April 26 - Barclays Plc told shareholders on Thursday that its agreed takeover of ABN AMRO stood in "stark contrast" with a break-up approach from rival suitors, adding the Dutch bank's preference was clear.

Speaking at the bank's annual shareholder meeting, Chief Executive John Varley said Barclays' bid for ABN -- an offer worth $88 billion at current prices -- would help it realise growth ambitions, but said size was not a driving motivation.


Read more at Reuters.com Bonds News

Travelers posts higher first-quarter earnings

(Reuters) - Travelers, which changed its name from St. Paul Travelers earlier this year, said earnings were $1.09 billion, or $1.56 a share, up from $1.01 billion, or $1.41 a share in the year-ago quarter.

) Keywords: TRAVELERS RESULTS/


Read more at Reuters.com Market News

WRAPUP 1-BASF, Bayer profits beat expectations

(Reuters) - MANNHEIM, Germany, April 26 - Germany's BASF and Bayer reported forecast-beating profits on Thursday thanks to strong demand for chemicals and drugs amid a robust global economy, sending their shares up sharply.

Both companies reaffirmed their profits outlook for this year as investors bet on a prolonged strong performance after spending billions of euros on acquisitions last year to expand.


Read more at Reuters.com Market News

UPDATE 2-Starwood first-quarter profit rises, ups forecast

(Reuters) - Starwood, which announced early this month that Chief Executive Steven Heyer had resigned under pressure from the company's board, raised its second-quarter earnings forecast as it enjoys strong travel demand and limited growth in supply, allowing for steady increases in room rates.

It has also been selling hotels and retaining management contracts, as well as franchising its brands -- a strategy that helps free up cash.


Read more at Reuters.com Market News

UPDATE 2-Bunge earnings fall 76 pct on trading losses

(Reuters) - CHICAGO, April 26 - Oilseed processor and fertilizer producer Bunge Ltd. on Thursday reported that quarterly profit dropped 76 percent from losses in trading positions, but the company expects its agribusiness sector to recover.

Bunge warned investors in early April that results would fall short of Wall Street estimates, but has kept its forecast for full-year earnings at $4.56 to $4.71 a share.


Read more at Reuters.com Market News

Emcor Group Q1 profit rises

(Reuters) - Net earnings for the latest first quarter rose to $12 million, or 36 cents a share, from $7 million, or 22 cents a share in the year-ago quarter, the provider of electrical and mechanical construction services said in a statement.

For the latest quarter, analysts on average expected earnings of 35 cents a share, before items, according to Reuters Estimates.


Read more at Reuters.com Market News

REFILE-UPDATE 1-Timken profit falls on restructuring costs

(Reuters) - Net profit fell 35 percent to $42.6 million, or 45 cents per share, compared with $65.9 million, or 70 cents per share a year earlier.

Excluding special items, Timken earned 66 cents per share, the company said. Its industrial and steel groups reported higher sales and profits, while its automotive group had lower revenue and posted a loss.


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UCB says results so far in line with expectations

(Reuters) - BRUSSELS, April 26 - Belgian pharmaceutical group UCB is performing well and its results this year are so far in line with expectations, Chief Executive Roch Doliveux said on Thursday.

UCB previously said revenues and operating profit were expected to grow significantly in 2007 as a result of its acquisition of German peer Schwarz.


Read more at Reuters.com Market News

UPDATE 1-3M posts stronger-than-expected profit, shares up

(Reuters) - The company also affirmed its full-year financial outlook.

Net income in the quarter rose to $1.37 billion, or $1.85 a share, from $899 million, or $1.17 a share, a year earlier.


Read more at Reuters.com Market News

Thermo Fisher Scientific profit jumps on merger

(Reuters) - Excluding several items, such as costs and tax effects of restructuring and certain acquisition-related costs, earnings were 59 cents per share. Analysts on average expected 53 cents, according to Reuters Estimates.

On a pro forma basis that assumes the companies were combined for all of 2006, adjusted operating income rose 34 percent and revenue increased 11.5 percent to $2.1 billion.


Read more at Reuters.com Mergers News

MBIA First-Quarter Profit Little Changed; Structured Finance Deals Soar

(Bloomberg) -- MBIA Inc., the world's biggest bond insurer, said its first-quarter profit was unchanged even as demand rose to insure bonds, particularly in the U.S. structured finance market.

Net income was $198.6 million, or $1.46 a share, compared with $199 million, or $1.46, a year earlier, the Armonk, New York-based company said in a statement today. The average analyst estimate from a Bloomberg survey was for $1.45 a share. Excluding investment income and refundings, earnings were $1.30 a share.


Read more at Bloomberg Bonds News

UPDATE 1-Shiseido profit jumps on China sales, sees growth

(Reuters) - TOKYO, April 26 - Shiseido Co. Ltd. , Japan's biggest cosmetics maker, reported 29 percent profit growth for the past business year on Thursday on vibrant sales in China, and it forecast double-digit growth this year.

Sluggish sales at home have forced Japanese cosmetics makers to seek growth abroad, particularly in China where Shiseido is investing heavily to expand and rival Kao Corp. , which bought Kanebo Cosmetics last year, is also planning a big push.


Read more at Reuters.com Market News

Thailand's Bonds Advance on Speculation of Interest Rate Cuts; Baht Rises

(Bloomberg) -- Thailand's government bonds rose on speculation the central bank will cut rates for a fourth time this year at its meeting next month as the economy slows. The baht traded at more than a nine-year high.

Ten-year yields are near the lowest in more than three years after the central bank on April 24 cut its growth forecast for this year. The Bank of Thailand may lower its benchmark interest rate by as much as 50 basis points to 3.5 percent in May, said Thanomsri Fongarunrung, an economist at Phatra Securities in Bangkok.


Read more at Bloomberg Bonds News

Microsoft Profit Forecast May Trail Estimates on Windows Sales, Xbox Costs

(Bloomberg) -- Microsoft Corp., the world's biggest software company, today may give a profit forecast for the coming fiscal year that misses analysts' estimates because of lower- than-expected Windows sales and higher Xbox costs.

``The best-case scenario is that Microsoft will be in line with estimates and there's a risk that they'll be low,'' said Brendan Barnicle, an analyst at Pacific Crest Securities in Portland, Oregon.


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U.K. Pub Companies May Shun Tax Breaks, Keep Asset-Backed Bonds, RBS Says

(Bloomberg) -- Bondholders betting U.K. pub companies Marston's Plc, Greene King Plc and Punch Taverns Plc will repay debt early to take advantage of new tax rules may be disappointed, according to Royal Bank of Scotland Group Plc.

Bonds secured by pub real estate have gained in the past six months on speculation the companies will buy back the securities as they convert to more tax-efficient real estate investment trusts. Pub companies reporting results during the next month are unlikely to announce plans to convert to REITs because of concerns the structure would restrict their business, said Michael Cox, a securitization analyst at RBS in London.


Read more at Bloomberg Bonds News

Pakistan State Oil 9-mth net profit falls 53.5 pct

(Reuters) - This compared with a net profit of 4.62 billion rupees for the corresponding year-ago period.

The result was in line with a range of between 1.95 billion and 2.73 billion rupees, forecast by five analysts surveyed by Reuters.


Read more at Reuters.com Market News

Zloty Advances to Highest in 14 Months on Outlook for Poland's Expansion

(Bloomberg) -- Poland's zloty rose to the highest level since March 2006 against the euro on expectations the country's pace of economic growth will accelerate.

The zloty gained for a second day after central banker Dariusz Filar said in an interview for private Radio PiN today that the biggest central European economy may expand by more than 7 percent in the first quarter of this year and top 6 percent growth in all of 2007.


Read more at Bloomberg Currencies News

Siemens CEO says VDO IPO preparations on track

(Reuters) - Potential buyers who have declared interest in VDO, valued at up to 9 billion euros , include German tyre and car parts maker Continental .




Read more at Reuters.com Mergers News

UPDATE 2-Bayer Q1 profits beat expectations

(Reuters) - Earnings before interest, taxes and special items rose 17 percent to 1.4 billion euros in the quarter, from 1.2 billion euros in the same period a year earlier, leading the company's shares to rise in early trading.

A poll of 16 analysts by Reuters showed they expected Bayer, which plans to release more detailed results on May 8, to report earnings of 1.22 billion euros in the quarter on average.


Read more at Reuters.com Bonds News

French Stocks Gain, Led by Cap Gemini, France Telecom and PPR on Revenue

(Bloomberg) -- French stocks gained, paced by Cap Gemini SA, France Telecom SA and PPR SA after the companies reported sales which beat analysts' estimates.

The CAC 40 Index advanced 28.76, or 0.5 percent, to 5976.09 at 9:14 a.m. in Paris. The SBF 120 Index also rose 0.5 percent.


Read more at Bloomberg Stocks News

European shares rally early on Wall St, results

(Reuters) - "It's probably going to be another perky market today, despite some dollar weakness, and the earnings results coming from both out of the States and Europe are pretty good," said Exane BNP Paribas European strategist Bert Jansen, in Paris.

"M&A ... issues are one of the main drivers, if not the main driver today," he said.


Read more at Reuters.com Hot Stocks News