Wednesday, May 16, 2007

UPDATE 1-US Senate votes against March Iraq war withdrawal

(Reuters) - WASHINGTON, May 16 - The U.S. Senate on Wednesday voted overwhelmingly against withdrawing all combat troops from Iraq by March 31 as a majority of senators embraced an alternative plan tying U.S. reconstruction funds to Baghdad's progress in stabilizing the country.

The Senate's votes, while nonbinding, were orchestrated to ease passage on Thursday of a war-funding bill so that House of Representatives and Senate negotiators can get to work on a compromise that President George W. Bush could sign by the end of May.


Read more at Reuters.com Bonds News

Home building to slow, factory activity up

(Reuters) - A Federal Reserve report on Wednesday showed output at U.S. factories, mines and utilities rose a greater-than-expected 0.7 percent in April, with the amount of industrial capacity tapped climbing to 81.6 percent, also above Wall Street forecasts

Meanwhile, Commerce Department data showed that while U.S. housing starts unexpectedly rose 2.5 percent to a seasonally adjusted annual pace of 1.528 million units, building permits sank to the slowest pace since June 1997.


Read more at Reuters.com Business News

Nutrition group sues Burger King over trans fats

(Reuters) - "Burger King not only sells food cooked with this harmful ingredient, it does so without warning its customers about life-threatening consequences," the suit said. "Consumers have no way to guard against the risk of consumer trans fats."

Restaurants are not legally required to disclose the amount of trans fat in their foods.


Read more at Reuters.com Business News

Dell stock up 3 pct, shrugs off New York lawsuit

(Reuters) - But Goldman Sachs analyst Laura Conigliaro said the lawsuit could actually ease investor concern following market rumors a day earlier that the legal action might have instead extended Dell's problems with the U.S. Securities & Exchange Commission.

"We do not view the New York State Attorney General's lawsuit...as a worsening of Dell's situation and, if anything, it could even be something of a relief following widespread rumors yesterday afternoon that the New York announcement could have represented an extension of Dell's SEC problems just as investors are beginning to think of it as winding down," she said in a research note.


Read more at Reuters.com Hot Stocks News

Spar posts 28.5 pct rise in H1 headline EPS

(Reuters) - South African food retailer Spar Group Ltd posted a 28.5 percent rise in first-half headline earnings per share on Wednesday on strong consumer spending and further market penetration.

Headline EPS, the main profit measure in South Africa, rose to 156.3 cents for the six months to end-March from 121.7 cents in the same period the previous year.


Read more at Reuters Africa

Fannie Mae sells $1 bln 10-yr notes in reopening

(Reuters) - The bid-to-cover ratio was 3.425-to-1.

Earlier on Wednesday, Fannie Mae sold $3.0 billion in new five-year benchmark notes due May 18, 2012 via joint lead managers Barclays Capital, Lehman Brothers and UBS Securities.


Read more at Reuters.com Bonds News

UPDATE 1-Chile central bank keeps GDP view, raises inflation

(Reuters) - In a report to Congress, the bank also raised its estimate for inflation in 2007 to 2.8 percent from an earlier estimate of 2.3 percent.

For the first quarter of 2007, the bank said it expected the country had posted just under 6.0 percent growth in the gross domestic product.


Read more at Reuters.com Economic News

Corn Futures May Fall as Rain Expected to Aid U.S. Crops; Wheat May Slip

(Bloomberg) -- Corn futures may fall as rains in the U.S. Midwest are expected to aid newly planted crops after unusually warm, dry weather. Wheat may fall as dry weather aids ripening plants.

As much as 1 inch (2.5 centimeters) of rain in the Midwest in the past 36 hours will increase top-soil moisture after warm, dry weather depleted reserves for plant growth, according to Meteorlogix LLC in Woven, Massachusetts. About 22 percent of the U.S. corn crop was still not planted as of May 13, the U.S. Department of Agriculture said this week.


Read more at Bloomberg Commodities News

DuPont sees profit growth from performance materials

(Reuters) - Annual sales at the unit are more than $6 billion, the company said.




Read more at Reuters.com Market News

Thomson-Reuters Targets $500 Million in Savings; Investors Anticipate More

(Bloomberg) -- Thomson Corp. and Reuters Group Plc set a goal of $500 million a year in cost reductions from their $17.2 billion combination. Investors say the merged company can save more.

``It's not an overly ambitious target,'' about 5 percent to 6 percent of the companies' $11 billion in revenue, said Anthony de Larrinaga, an analyst at SG Securities in London.


Read more at Bloomberg Exclusive News

InterContinental Hotels says not in takeover talks

(Reuters) - Companies are restricted from buying their own shares when they are in takeover talks.

The group said on Monday that Ellerman Corp., controlled by property and investment tycoons the Barclay brothers, had raised its stake in InterContinental to 9.16 percent from 8.19 percent.


Read more at Reuters.com Hot Stocks News

U.S. Stocks Rise on Acquisitions; Citigroup, Bausch & Lomb, Agile Advance

(Bloomberg) -- U.S. stocks advanced after billionaire investor Edward Lampert said he bought an $800 million stake in Citigroup Inc. and more companies agreed to be acquired.

Bausch & Lomb Inc. rallied to a 14-month high as a private equity firm said it will buy the maker of contact lenses, while Agile Software Corp. jumped on Oracle Corp.'s plan to purchase the company. A larger-than-forecast rebound in industrial production contributed to the stock market's gain.


Read more at Bloomberg Stocks News

White House says it supports GSE reform bill in House

(Reuters) - The bill "include elements that are essential for proper regulatory oversight of the housing GSEs and for protecting the safety and soundness of the housing finance system and the broader financial system," a White House statement reads.

Fannie and Freddie are known as government-sponsored enterprises because they hold federal charters to promote home ownership.


Read more at Reuters.com Government Filings News

Canadian Stocks May Fall With Metals Prices; Aur Resources. Magna May Slip

(Bloomberg) -- Canadian stocks may fall, led by commodity producers including Aur Resources Inc., as prices for copper and bullion decline.

Industrial shares may retreat, after Magna International Inc. said it will lose a contract to assemble cars for Germany's Bayerischen Motoren Werke AG.


Read more at Bloomberg Stocks News

Fannie Mae sells $3 bln new five-year notes

(Reuters) - The joint lead managers on the sale were Barclays Capital, Lehman Brothers and YBS Securities.

Later on Wednesday, Fannie Mae will also sell $1.0 billion in benchmark notes in a reopening of an existing 10-year issue due May 11, 2917 via an Internet-based auction.


Read more at Reuters.com Bonds News

Dollar Increases After Housing Starts Accelerate in the U.S. During April

(Bloomberg) -- The dollar rose against the yen after a government report showed housing starts in the U.S. unexpectedly rose last month.

Builders broke ground on new homes at an annual rate of 1.528 million in April, up from a revised 1.491 million during March. That compared with the median forecast of 1.48 million in a Bloomberg News survey of 80 economists.


Read more at Bloomberg Currencies News

Wireless Ronin files to sell 4 mln shares

(Reuters) - The company also plans to grant the underwriters of the offering an option to purchase up to 450,000 additional shares to cover over-allotments.

ThinkEquity Partners LLC will serve as bookrunning co-lead manager, Feltl and Company will be co-lead manager and Barrington Research Associates is co-manager.


Read more at Reuters.com Government Filings News

Union threat to Blackstone IPO plans: report

(Reuters) - The union says that the unique structure chosen by Blackstone's senior executives to raise funds from stock markets while keeping a tight grip on the running of its business is an attempt "to evade the coverage" of the Investment Company Act of 1940.

In its March prospectus, Blackstone said its listed entity was a partnership exempt from the governance requirements of investment companies such as having a fiduciary duty to stock market investors and keeping a majority of independent directors on the board.


Read more at Reuters.com Mergers News

Polish City's Success Creating Jobs Brings New Challenge: How to Fill Them

(Bloomberg) -- Lukasz Gruzla, a university graduate from southwestern Poland, loads planes at Luton Airport outside London. He has no plans to return to his hometown near Wroclaw.

``Come back to what?'' Gruzla, 25, asked as he waited for a flight to London after visiting his family in Poland. ``The work I have there allows me to live. I can buy a car, pay my bills.''


Read more at Bloomberg Exclusive News

Sainsbury plans non-food expansion as profits rise

(Reuters) - By Rachel Sanderson

LONDON, May 16 - Supermarket group J. Sainsbury Plc of sales growth in the next three years.


Read more at Reuters.com Market News

South African Retail Sales Growth Accelerated to 10 Percent in March

(Bloomberg) -- South African retail sales growth accelerated to an annual 10 percent in March as consumer confidence jumped to a record and employment gained.

Sales growth accelerated from 8 percent in February, the Pretoria-based Statistics South Africa said on its Web site today.


Read more at Bloomberg Emerging Markets News

Germany's Benchmark DAX Index Declines; SAP, Allianz, RWE Pace Retreat

(Bloomberg) -- German stocks fell, led by SAP AG, Allianz SE and RWE AG. Deutsche Post AG rose after HSBC Holdings Plc raised its recommendation on the shares.

The DAX Index lost 22.66, or 0.3 percent, to 7482.69 at 10:04 a.m. in Frankfurt. DAX futures expiring in June slid 0.3 percent to 7502. The HDAX Index of the country's 110 biggest companies dropped 0.4 percent.


Read more at Bloomberg Stocks News

Volvo, Ifil, Santander, Wuerth Finance to Sell Debt: European Bond Alert

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

Investment-Grade Sales


Read more at Bloomberg Bonds News

Dow at record on stable inflation; Nasdaq down

(Reuters) - The Dow industrials rose to a record high close on Tuesday, as signs of stabilizing inflation raised the prospect of lower interest rates, boosting the outlook for business investment.

But the Dow ended well off its highs of the day and the S&P 500 index and the Nasdaq declined as disappointing results from some retailers and a report showing U.S. home builder confidence fell in May raised concerns about consumer spending.


Read more at Reuters Africa