Nortel-Avaya deal no match made in heaven: analyst

(Reuters) - "We see two potential reasons why Nortel might explore such a combination," he said in a note. "We can think of a lot more than two reasons for Nortel to stay clear."




The obvious allure of a deal is to grow market share, with a combined company leading the business phone market. A merger would also expose Nortel to Avaya's strong services business, he wrote.


Read more at Reuters.com Business News

S&P 500 closes at first record high in 7 years

(Reuters) - The Dow Jones industrial average was up 110.44 points, or 0.82 percent, to end unofficially at 13,631.78. The Standard & Poor's 500 Index was up 11.99 points, or 0.79 percent, to finish unofficially at 1,530.10. The Nasdaq Composite Index was up 20.53 points, or 0.80 percent, to close unofficially at 2,592.59.




Read more at Reuters.com Hot Stocks News

Elbit Medical Imaging posts quarterly loss

(Reuters) - The company reported revenue of $97.2 million, including gain from sales of two of its shopping and entertainment centers. It expects to record additional gain of about $20.7 million as a result of these sales in the forthcoming quarters.



Elbit said excluding stock-based compensation, loss for the latest quarter was $5.6 million, compared with a net income of $2.3 million for the year-ago period.


Read more at Reuters.com Market News

Qwest sees 2007 mass market revenue growing

(Reuters) - As customers such as Verizon Communications revenue and keep it fairly flat," Qwest Chief Executive
Richard Notebaert said during an analyst conference Webcast.


Read more at Reuters.com Bonds News

KKR Seeks Record $16 Billion of Covenant-Lite Loans to Purchase First Data

(Bloomberg) -- Kohlberg Kravis Roberts & Co. will
seek a record $16 billion of high-yield loans with the fewest
restrictions to help fund its buyout of First Data Corp., the
world's largest processor of credit-card payments.

Banks led by Credit Suisse Group agreed to provide a $14
billion seven-year term loan and a $2 billion six-year revolving
credit facility, Greenwood Village, Colorado-based First Data
said in a Securities and Exchange Commission filing yesterday.
The term loan, called covenant-lite, would be the largest of its
type, exceeding the $7.45 billion loan that was used to fund the
buyout of broadcaster Univision Communications Inc. this year.


Read more at Bloomberg Bonds News

ConocoPhillips Restores Most Output From Louisina Refinery Shut Last Week

(Bloomberg) -- ConocoPhillips said that most
production has been restored at its Belle Chasse Alliance
refinery in Louisiana after a power failure forced a shutdown
last week.

``Most of the production has been brought back,'' spokesman
Philip Blackburn said today in a telephone interview. ``We expect
all of the units to be back online shortly.''


Read more at Bloomberg Energy News

Dollar Tree quarterly profit up, raises year view

(Reuters) - Analysts, on average, had expected it to earn 37 cents a share, according to Reuters Estimates.




Sales rose 13.8 percent to $975 million. Sales at stores open at least a year -- a measure of retail strength called same-store sales -- rose 5.8 percent in the quarter.


Read more at Reuters.com Business News

Gold Futures Fall on U.S. Interest Rate Outlook; Silver Is Little Changed

(Bloomberg) -- Gold fell in New York on speculation
the U.S. Federal Reserve won't cut interest rates anytime soon,
strengthening the dollar and reducing the appeal of the precious
metal as an alternative investment. Silver was little changed.

Gold generally moves in the opposite direction of the
dollar, which has risen 1.6 percent against a basket of six
major currencies since falling on May 1 to the lowest level this
year. Gold reached an 11-month high on April 20, before shedding
as much as 6.7 percent by May 24. Before today, the metal had
risen 4 percent this year.


Read more at Bloomberg Commodities News

China's CSI 300 Drops Mmost in Three Months After Transaction Tax Tripled

(Bloomberg) -- China's stocks tumbled the most in three
months after the government tripled the tax on securities
transactions to cool a rally that's drawing more than 300,000 new
investors a day.

The CSI 300 Index dropped 281.83, or 6.8 percent, to close at
3886.46 in Shanghai. The value of local stocks has more than
doubled this year to $2.47 trillion and brokerage accounts topped
100 million for the first time this week.


Read more at Bloomberg Stocks News

Ernst & Young partners charged in tax fraud case

(Reuters) - In an indictment filed in U.S. district court in Manhattan,
prosecutors allege the defendants at the "Big Four" accounting
firm created and marketed tax shelters from 1998 through 2004
based on false and fraudulent scenarios to allow wealthy
individuals to reduce the federal taxes they would have to pay.




The Ernst & Young current or former partners named in the
case are Robert Coplan, Martin Nissenbaum, Richard Shapiro and
Brian Vaughn.


Read more at Reuters.com Business News

Optimism About U.S. Stocks Falls for First Time in Five Weeks, Survey Says

(Bloomberg) -- Investor optimism about U.S. stocks
fell for the first time in more than a month after the Standard
and Poor's 500 Index ended its longest stretch of weekly gains
since 2004, according to Investors Intelligence.

The percentage of ``bullish'' newsletter writers dropped to
53.8 percent last week from 54.3 percent the previous week, the
New Rochelle, New York-based newsletter said. That marks the
first decline since the week ended April 20.


Read more at Bloomberg Stocks News

Terra Firma sets June 27 deadline for EMI deal

(Reuters) - Former EMI Music Chief Executive Jim Fifield has also said
he wants to buy his former company.




In a statement to the stock exchange, Terra Firma said the
offer document was being posted on Wednesday, and acceptances of
the offer should be received no later than 1200 GMT on June 27.


Read more at Reuters.com Mergers News

GLOBAL MARKETS-Stocks fall on China's tax hike, U.S. bonds rise

(Reuters) - U.S. stocks bounced back from early losses and were little
changed at midday.




The Chinese government's move was seen as an attempt to
cool an overheating stock market.


Read more at Reuters.com Bonds News

S.African stocks dip on global jitters, rate fears

(Reuters) - South African stocks slid on Wednesday led by financial and industrial stocks as China's move to cool its booming market hit global equities and a jump in local inflation bolstered the case for an interest rate hike.

The Johannesburg Top-40 index of blue-chip stocks dipped 0.79 percent to 25,502.56 points, recovering from earlier in the day when it fell more than 1 percent, while the All-share index fell 0.79 percent to 28,439.40 points.


Read more at Reuters Africa

China stocks fall, but ripple limited

(Reuters) - Currencies were relatively steady and demand for euro zone government bonds rose slightly.




China's Ministry of Finance raised stamp duty on share transactions to 0.3 from 0.1 percent in what was seen as the strongest attempt yet to curb speculation in a market that had risen more than 60 percent so far this year.


Read more at Reuters.com Hot Stocks News

Housing Slump's Toll on U.S. Jobs Being Felt First by Undocumented Workers

(Bloomberg) -- The slump in homebuilding, the
deepest since 1990, has so far taken only a modest toll on the
U.S. job market. Workers like Francisco Leon may be part of the
explanation.

Two years ago, Leon, an undocumented immigrant from
Guatemala, had little trouble finding construction work five
days a week in northern Virginia. Nowadays, the 22-year-old
mainly does odd jobs, often only two days a week.


Read more at Bloomberg Exclusive News

GLOBAL MARKETS-Stocks fall on China share tax rise but no rout

(Reuters) - LONDON, May 30 - Global equities eased on Thursday
after further moves by China to cool its red-hot market sent
Shanghai shares tumbling more than 6 percent, but there was no
sign of the widespread rout feared by some investors.




The dollar edged higher, hitting a seven-week peak versus
the euro ahead of minutes from the Federal Reserve's last rate
setting meeting, while U.S. stock futures were pointing to a
softer start on Wall Street.


Read more at Reuters.com Bonds News

Nymex Gas Jumps on Forecasts for Warmer Weather in U.S. Midwest, Northeast

(Bloomberg) -- Natural gas in New York advanced as
forecasts for above-average temperatures in the eastern third of
the U.S. are expected to spur air conditioner use and electricity
demand.

Temperatures will be at least 8 degrees Fahrenheit above
normal in parts of the Midwest and Northeast through June 3,
according to MDA Federal Inc.'s Earthsat Energy Weather.


Read more at Bloomberg Energy News

U.K.'s FTSE 100 Index Falls, Led by GlaxoSmithKline; BP, Shell Shares Drop

(Bloomberg) -- U.K. stocks dropped, paced by
GlaxoSmithKline Plc after Merrill Lynch & Co. lowered its
recommendation on the shares to ``sell'' from ``neutral.''

BP Plc, Europe's second-largest oil company, and Royal
Dutch Shell Plc, the region's largest, also fell.


Read more at Bloomberg Stocks News

Brazil plays down Mozambique AIDS drug plant offer

(Reuters) - Brazil has prepared a feasibility study for a pharmaceutical plant in AIDS-ravaged Mozambique but did not offer to fund it, the Brazilian Health Ministry said on Tuesday.

Earlier, Mozambique's Noticias newspaper said that Brazil offered to build a $23 million factory, which would produce a range of drugs, including generic antiretroviral drugs (ARVs) to treat HIV/AIDS as well as medicines for malaria and other diseases.


Read more at Reuters Africa

Yen firmer as falling stocks curb risk appetite

(Reuters) - The low-yielding yen ticked higher against the euro on Wednesday as a six percent fall in Chinese stocks made investors nervous about risky carry trades.

The dollar held steady against the euro near last week's six-week high ahead of Federal Reserve minutes of its May policy meeting, which could add to expectations the central bank might hold interest rates steady this year instead of cutting them -- a factor supporting the dollar in recent weeks.


Read more at Reuters Africa

Investec gets UK "sub-prime" hook with Kensington buy

(Reuters) - South-African investment bank Investec said on Wednesday it has agreed to buy British lender Kensington Group Plc, securing a foothold in the UK's "sub-prime" mortgage market.

Investec agreed to buy Kensington in a share and dividend deal worth around 273 million pounds and plans to inject money into the company, which said trading was challenging in the face of stiff competition from other lenders.


Read more at Reuters Africa

Zloty Falls to Six-Week Low Against Euro as Emerging Market Stocks Slide

(Bloomberg) -- The Polish zloty fell to the lowest in
more than six weeks against the euro as emerging-market stocks
declined around the world, and the country's central bank kept
interest rates at their current level.

Expectations the central bank will raise interest rates this
year to stem inflation helped the zloty advance to an almost five
month high on May 10. The currency is the third-worst performer
among 72 currencies tracked by Bloomberg this month as sentiment
towards emerging markets worsened and some policy makers,
including Jan Czekaj, said borrowing costs may stay on hold for
several months.


Read more at Bloomberg Emerging Markets News

Rupee Drops Most in Two Months on Speculation Central Bank Sold Currency

(Bloomberg) -- India's rupee dropped the most in two
months on speculation the central bank is selling the currency
to stem an advance that pushed it to the highest in more than
nine years.

The currency advanced as much as 9.5 percent this year,
making it the best performer in Asia, as investors abroad take
advantage of growth in the region's fourth-biggest economy. A
report tomorrow may show gross domestic product in the quarter
through March grew at the fastest pace in three years. The
central bank may slow the pace of the currency's gains to
protect exporters' earnings.


Read more at Bloomberg Currencies News

China to raise foreign brokerages' investment cap

(Reuters) - Tu Guangshao, vice chairman of the China Securities
Regulatory Commission, was quoted by state media as saying that
the government plans to gradually raise the ceiling by the end
of this year.




He made the remarks at a domestic financial forum on
Tuesday, official securities newspapers reported.


Read more at Reuters.com Mergers News

UPDATE 3-Statoil says poised to grow after Q1 profit drop

(Reuters) - OSLO, May 30 - Norway's Statoil in January-March, missing all 17
forecasts from a Reuters poll of analysts.


Read more at Reuters.com Mergers News

Copper Falls in London on Speculation Chinese Demand May Slow; Lead Rises

(Bloomberg) -- Copper snapped two days of gains in
London on speculation Chinese government moves to damp the
nation's booming stock market will slow economic growth and
demand for industrial metals. Lead rose to a record.

Chinese shares tumbled the most in three months after the
government tripled the tax on securities transactions to cool a
rally that has doubled the value of local stocks this year to
$2.47 trillion. The Chinese economy grew at 11.1 percent in the
first three months of the year.


Read more at Bloomberg Commodities News

Junk Bond Risk Premiums Fall to a Record Low on Signs Economy Accelerating

(Bloomberg) -- Risk premiums on high-yield, high-
risk U.S. corporate bonds fell to a record low on speculation
the economy is accelerating, bolstering the ability of companies
to meet their debt payments.

The extra yield investors demand to own junk bonds instead
of Treasuries narrowed to 2.42 percentage points on average
yesterday, based on Merrill Lynch & Co.'s high-yield index. The
spread is less than half the average of more than 5 percentage
points over the past five years, and is down from more than 10
percentage points in 2002.


Read more at Bloomberg Bonds News

Ford expects rise in U.S. retail sales in May

(Reuters) - "We will be reporting an increase in retail sales this month," Ford chief sales analyst George Pipas told reporters on Tuesday evening, adding that crossover sport utility vehicles and cars were driving the improvement in showroom sales.




But a 20 percent reduction in sales to daily-rental companies would drag Ford's overall U.S. sales in May down for a "single-digit" percentage decline, Pipas said.


Read more at Reuters.com Business News