Dollar slips before ECB, Aussie hits 17-year high

(Reuters) - The dollar slipped for a third day against the euro on Wednesday as market players awaited a widely expected European Central Bank interest rate rise later in the session along with clues on how much higher rates could climb.

The Australian dollar surged to a 17-year peak against the U.S. dollar after robust first-quarter growth data suggested Australian rates could rise further, helping lift the New Zealand dollar to its highest since being floated in 1985.


Read more at Reuters Africa

PRESS DIGEST - Wall Street Journal - June 6

(Reuters) - * Republicans grappled on immigration in their third
presidential primary debate. Just two candidates voiced support
for the bipartisan immigration bill U.S. President George W.
Bush wants for his legacy.




* U.S. Vice President Dick Cheney's former chief of staff,
Lewis "Scooter" Libby, drew a 30-month prison sentence for
lying and obstructing justice in the CIA-leak case. President
George W. Bush said he feels "terrible" about it, but has no
current plans to issue a pardon.


Read more at Reuters.com Mergers News

JJB Sports, Woolworths, Allied Irish Banks: U.K. and Irish Equity Preview

(Bloomberg) -- The following stocks may rise or fall
in U.K. and Irish markets today. Stock symbols are in parentheses
and prices are from yesterday's market close.

The benchmark FTSE 100 Index fell 31.3, or 0,5 percent, to
close at 6632.8 in London as 27 stocks rose, 74 fell and 1 was
unchanged. The FTSE All-Share Index lost 16.26, or 0.5 percent,
to 3442.42.


Read more at Bloomberg Stocks News

U.S. Treasuries May Rise as Yields at Nine-Month High Attract Investors

(Bloomberg) -- U.S. Treasuries may advance on
speculation yields near the highest in nine months will prove
attractive to investors.

Yields on two-year notes rose to 5 percent yesterday and
those on the 10-year bond climbed 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
it no longer expects the Federal Reserve to lower borrowing
costs this year and increased its forecast for economic growth.


Read more at Bloomberg Bonds News

Argentina, Mexico, Peru and Venezuela: Latin American Local Bond Preview

(Bloomberg) -- The following events and economic
reports may influence trading in Latin American local bonds
today. Bond yields are from the previous session.

Argentina: Consumer prices last month rose 8.8 percent in
May from a year ago, the National Statistics Institute reported.


Read more at Bloomberg Bonds News

Malaysia to Ease Rules on Overseas Retailers in Bid to Woo Wal-Mart, Metro

(Bloomberg) -- Malaysia is preparing to ease
restrictions on foreign hypermarket operators to persuade Wal-
Mart Stores Inc. and Metro AG to invest in the Southeast Asian
nation's 60 billion ringgit ($18 billion) a year retail industry.

``I've been trying to entice people, even Wal-Mart and
Metro,'' Minister of Domestic Trade and Consumer Affairs Shafie
Apdal said in an interview. ``We like competition, it's good for
the consumers.'' Wal-Mart, the world's largest retailer, has
indicated it's interested in setting up stores in Malaysia and
the ministry is talking to Germany's Metro, he said.


Read more at Bloomberg Emerging Markets News

New Zealand's Dollar Climbs to 22-Year High on Outlook for Higher Rates

(Bloomberg) -- The New Zealand dollar rose to its
strongest in at least 22 years as traders bet the central bank
will raise interest rates tomorrow, adding to the appeal of the
nation's higher yielding assets.

The currency, known as the kiwi, has gained 7 percent this
year as policy makers increased the official cash rate twice to
a record 7.75 percent. There is a 38 percent chance the bank
will raise borrowing costs when it meets in Wellington, from 17
percent on May 24, according to a Credit Suisse index based on
overnight trading of interest rate swaps.


Read more at Bloomberg Currencies News

China Securities Account Openings Slow to Two-Month Low Amid Stocks Rout

(Bloomberg) -- China's new securities account
openings were the lowest in almost two months on June 4 as a
stock-market rout, triggered by a tripling of the tax on share
trades, deterred people from entering the market.

The number of accounts set up for trading mainland shares
and investing in mutual funds totaled 240,485 that day, the
lowest tally since April 11, according to the latest figures
from the China Securities Depository & Clearing Corp.


Read more at Bloomberg Stocks News

Japan's Nikkei 225 Average Falls as Rising Interest Rates Prompt Caution

(Bloomberg) -- Japan's Nikkei 225 Stock Average
slipped for the first time in five days on concern rising
interest rates globally will reduce demand for shares and after
comments from Federal Reserve Chairman Ben S. Bernanke said
inflationary risks remain, dashing hopes for a cut in borrowing
costs this year.

Stocks that have climbed the most this year, including
shipping companies and property developers such as Nippon Yusen
KK and Mitsui Fudosan Co., led declines. A measure of shipping
lines included in the Topix soared 53 percent in 2007 to
yesterday's close, while real estate shares rose 22 percent.


Read more at Bloomberg Stocks News

Euro May Rise on Speculation Trichet Will Signal Interest-Rate Increases

(Bloomberg) -- The euro may rise for a third day
against the dollar on speculation European Central Bank President
Jean-Claude Trichet will raise borrowing costs at a policy
meeting today and signal further increases this year.

The currency may also reach a record high against the yen
for a third day as the ECB has expressed concern companies will
use the strongest period of economic growth this decade to
increase prices. The euro has risen almost 13 percent versus the
yen in the past year as the interest-rate gap between the two
economies widened.


Read more at Bloomberg Currencies News

India, Malaysia, Singapore, Thailand, Indonesia: Asia Local Bond Preview

(Bloomberg) -- The following events and economic
reports may influence trading in Asian local-currency bonds
today. Yields are from the previous session.

China: The central bank is ``closely'' watching rising food
prices and will study May's inflation rate before any interest-
rate change, Governor Zhou Xiaochuan said during a financial
conference in Beijing yesterday. The government is due to
release its inflation report for May on June 12. Food prices
account for a third of the consumer price index.


Read more at Bloomberg Bonds News

TD Ameritrade says hedge funds want it to merge

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




In the filing, TD Ameritrade said the hedge funds told it they have both sought regulatory approval to acquire additional shares.


Read more at Reuters.com Mergers News

Motorola Misled on Iridium, Owes Bondholders $3.45 Billion, Creditors Say

(Bloomberg) -- Motorola Inc., the world's second-
biggest mobile-phone maker, misled investors about the prospects
of its failed Iridium LLC satellite unit and should be forced to
repay more than $3.45 billion to bondholders, lawyers said.

In closing arguments before Judge James Peck in U.S.
Bankruptcy Court in Manhattan today, a lawyer for Iridium
creditors said the company was insolvent even before its 1998
launch because Motorola saddled it with debt and a poor business
plan as consumers shunned its bulky, expensive phones.


Read more at Bloomberg Bonds News

Emerging debt-Prices track Treasuries down, risk stable

(Reuters) - NEW YORK, June 5 - Emerging sovereign debt prices
plunged on Tuesday following a sell-off in the U.S. Treasury
market, but risk spreads between the two asset classes were
practically unchanged, signaling investor appetite for
high-yielding bonds remained steady.




Prices on Brazil's global bond due 2040 , the
most liquid emerging market paper, sank 0.750 points to
132.563, their lowest level since March 5, when high-yielding
markets were hit by a China-inspired sell-off.


Read more at Reuters.com Bonds News

Amazon, Cummins, DuPont, Ryanair, Whole Foods: 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.

Amazon.com Inc. (AMZN US) rose $3.23, or 4.6 percent, to
$73.65. The world's biggest online retailer had its share-price
forecast increased 27 percent to $79 at Banc of America
Securities, which cited ``strong revenue growth'' and said the
company may increase profitability from digital media downloads.


Read more at Bloomberg Stocks News

Volterra says to post Q2 loss, cuts revenue view

(Reuters) - In April, the company forecast second-quarter earnings of
10 cents to 13 cents a share, excluding items, on revenue of
$20 million to $21 million.





Read more at Reuters.com Market News

UPDATE 1-Soros says he is a speculator in Brazilian ethanol

(Reuters) - SAO PAULO, June 5 - Billionaire George Soros said
on Tuesday his large investment in Brazilian ethanol production
was speculative because he still sees trade barriers
restricting the full potential of the world's most efficient
producer of the biofuel.




"I know the term has negative connotations in Portuguese,
but I have to admit I am a speculator," Soros told an audience
at Brazil's first Ethanol Summit in Sao Paulo.


Read more at Reuters.com Bonds News

Argentine bonds fall ahead of inflation reading

(Reuters) - The government was due to release the May inflation figure
at 4 p.m. , and analysts feared it would come in
lower than expected, stoking fears of government manipulation
of the data.




"When there are doubts, it's better to sell, and the U.S.
economy and inflation here are being taken into
account by traders," a banking agent said.


Read more at Reuters.com Bonds News

Wachovia mortgage chief Judd to retire

(Reuters) - David Pope, 47, is replacing Judd as COO immediately, and
will add the president title at year end.




Pope has been chief administrative officer of the mortgage
unit. He was previously head of business banking, working with
customers with $3 million to $20 million of annual revenue, and
has worked with Wachovia or its predecessors for more than 20
years, the bank said.


Read more at Reuters.com Bonds News

Goldman now sees no Fed rate cuts in 2007

(Reuters) - The Federal Reserve's benchmark overnight target lending
rate is 5.25 percent.




Read more at Reuters.com Bonds News

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 Bonds News

Cadbury trims senior team as it confirms HQ move

(Reuters) - The Dairy Milk chocolate and Trident gum group said it will move its Berkeley Square head office in Mayfair, occupied by 200 staff, during early 2008 to new offices in Uxbridge, west of London, and near the capital's main airport at Heathrow. Cadbury's cost-cutting package is expected to trim around 200 million pounds off annual costs, according to sources close to the situation, and will be presented on June 19 with its new strategy for its chocolate and sweets business. The plan will include factory closures among Cadbury's 60 worldwide confectionery plants and cut its global sweets workforce of around 50,000 as the group prepares to sell off its multi-billion pound North American soft drinks business and become a focused confectionery group.



As part of group restructuring, Cadbury is dividing its confectionery world into four regions with similar revenues streams rather than its old three-region structure.


Read more at Reuters.com Mergers News

UPDATE 1-CVR Energy files for 15.5 mln share IPO

(Reuters) - The Sugar Land, Texas-based company's shares have been
approved for listing on the New York Stock Exchange under the
symbol "CVI."




Goldman Sachs & Co., Credit Suisse and Deutsche Bank
Securities, among others, are underwriting the IPO.


Read more at Reuters.com Government Filings News

Outback parent shareholders approve buyout offer

(Reuters) - Last month, an investment group including private equity firms Bain Capital and Catterton Partners as well as OSI Restaurant's founders increased their offer by 3 percent to about $3.18 billion to try to win approval.




Under the merger agreement, most OSI Restaurant shareholders will be able to exchange each of their shares for $41.15. OSI Restaurant founders Chris Sullivan, Robert Basham and J. Timothy Gannon, who are participating in the acquisition, had agreed to receive only $40 a share for their shares.


Read more at Reuters.com Bonds News

IBM says settles SEC expense disclosure review

(Reuters) - The SEC order calls for no monetary penalty and contains no
finding that IBM committed securities fraud or violated
antifraud provisions of the federal securities laws.




Read more at Reuters.com Government Filings News

US STOCKS-Indexes fall on rate worry; housing shares down

(Reuters) - NEW YORK, June 5 - U.S. stocks fell on Tuesday
after signs of strength in the services sector and comments
from Federal Reserve Chairman Ben Bernanke all but eliminated
expectations of an interest rate cut this year.




Housing-related stocks were among the biggest decliners
after Bernanke said the building slowdown is likely to drag on
longer than expected. Also weighing were profit warnings from
home goods retailer Bed Bath & Beyond Inc. and kitchen
cabinet maker American Woodmark Corp.


Read more at Reuters.com Bonds News

European Stocks Fall for Second Day, led by Ryanair, Air France, E.ON

(Bloomberg) -- European stocks declined for a second
day after Ryanair Holdings Plc, the region's biggest low-fare
carrier, said profit growth will slow and investors speculated
rising interest rates will damp profit growth.

Ryanair led the Dow Jones Stoxx 600 Travel & Leisure Index
to its biggest drop in almost three months. E.ON AG and BNP
Paribas SA paced a retreat by utilities and financial-services
companies, among the most sensitive to higher rates.


Read more at Bloomberg Stocks News

Canada's Two-Year Bond Yield Reaches 5-Year High on Outlook for Rate Boost

(Bloomberg) -- Canada's two-year bond fell, pushing
the yield to a five-year high, on speculation the Bank of Canada
will raise interest rates as soon as next month to stem
inflation.

The Bank of Canada will lift its benchmark interest rate
twice this year, from the current level of 4.25 percent, Merrill
Lynch & Co. wrote in a report yesterday.


Read more at Bloomberg Bonds News

UPDATE 1-US services growth exceeds forecast in May - ISM

(Reuters) - The Institute for Supply Management's services index rose
to 59.7 in May from 56.0 in April. The median forecast among
analysts polled by Reuters was for a slight decline to 55.3. A
number above 50 indicates growth in the sector.




May's reading was the highest since April 2006.


Read more at Reuters.com Economic News

Rainbow shareholders reject Remgro's first bid

(Reuters) - South Africa poultry producer Rainbow Chicken said on Tuesday shareholders had rejected investment firm Remgro's initial bid to buy out shares it does not already own.

Rainbow said shareholders would now consider an alternative offer from Remgro, which initially offered 16 rand in cash or 9 shares for every 100 Rainbow shares held by investors to acquire the remaining 38 percent of the group.


Read more at Reuters Africa

US STOCKS-Indexes fall as rate cut hopes fade

(Reuters) - NEW YORK, June 5 - U.S. stocks fell on Tuesday
after Federal Reserve Chairman Ben Bernanke said inflation
risks remain to the upside, suggesting equity investors should
not count on an interest rate cut spurring stocks higher in the
near future.




Weighing down the Nasdaq index were shares of Bed Bath &
Beyond Inc. after the home goods retailer warned late
on Monday that it sees first-quarter profit below Wall Street
forecasts [ID:nN04208082].


Read more at Reuters.com Bonds News

GLOBAL MARKETS-Stocks stall amid China volatility, yen soft

(Reuters) - LONDON, June 5 - Global stocks stalled after
hitting a record peak for a fourth day running on Tuesday as
wild trade in China shares sounded a note of caution, but still
buoyant risk appetite pushed the yen to fresh lows.




The dollar extended losses while U.S. Treasuries edged off
their lows after comments on the U.S. housing market and economy
from Federal Reserve chairman Ben Bernanke.


Read more at Reuters.com Economic News

American Woodmark, Feldman Mall, Juniper, Telik: U.S. Equity Preview

(Bloomberg) -- The following is a list of companies
whose shares may have unusual price changes in U.S. exchanges
today. This preview includes news that broke after exchanges
closed yesterday. Stock symbols are in parentheses after company
names. Shares prices are as of 8:10 a.m. New York time.

Amgen Inc. (AMGN US): The world's largest biotechnology
company agreed to buy Ilypsa, a private company developing drugs
for kidney disorders, for $420 million. The stock lost 3 cents to
$56.91 in regular trading yesterday.


Read more at Bloomberg Stocks News

UPDATE 1-Cache May same-store sales down; cuts Q2, 2007 view

(Reuters) - The company, which sells elegant eveningwear and
day-into-evening sportswear, said total net sales for the
four-week period ended May 26 decreased 3.5 percent to $21.9
million.




"We are currently taking the markdowns necessary to end the
quarter in a healthy inventory position and are re-balancing
our assortments to be in a better position for the fall/holiday
season," Chief Executive Brian Woolf said in a statement.


Read more at Reuters.com Market News

U.A.E. May Be Next Arab State to End Dollar Peg After Syria, Forwards Show

(Bloomberg) -- The United Arab Emirates may be the
next Middle Eastern country to stop pegging its exchange rate to
the U.S. dollar, according to trading in currency forwards.

The second-largest Arab economy may follow Syria and Kuwait,
which both said in the past two weeks that they would dump the
dollar peg to curb rising import costs and inflation. Middle East
currencies have been dragged lower by declines in the dollar,
pushing up the cost of imports from Europe and Asia.


Read more at Bloomberg Emerging Markets News

TREASURIES-Bonds pare losses after Bernanke housing remarks

(Reuters) - The benchmark 10-year note's price traded down 5/32 for a
yield of 4.95 percent , versus 4.96 percent before
the remarks and compared with 4.93 percent late on Monday. Bond
yields and prices move inversely.




Read more at Reuters.com Bonds News

EEX to Begin Trading UN-Approved Credits for Certified Emission Reductions

(Bloomberg) -- The European Energy Exchange, the
region's biggest bourse for power trading, will offer contracts
in certified emission reduction credits this year, as greenhouse
gas trading expands.

Buying and selling CER credits, which are approved by the
United Nations and derived from projects that curb greenhouse
gases in developing nations, will ``be launched in the course of
this year,'' EEX said today in an e-mailed statement. Auctions
of CER credits will be possible, the statement said.


Read more at Bloomberg Energy News

UPDATE 1-Quark Pharma sets IPO of 5 mln shares at $12-$14 each

(Reuters) - The company said it would use the net proceeds to fund
research and product development activities as well as for
general administrative activities and working capital.




JPMorgan, Banc of America Securities, CIBC World Markets
and C.E. Unterberg, Towbin are underwriting the IPO.


Read more at Reuters.com Bonds News

Quark Pharmaceuticals sets IPO of 5 mln shares at $12-$14 each

(Reuters) - The clinical-stage biopharmaceutical company said it
applied for a Nasdaq listing under the symbol "QURK."





Read more at Reuters.com Bonds News

Euro Gains to Record Against Yen on Speculation ECB to Signal Higher Rates

(Bloomberg) -- The euro strengthened to a record
against the yen and advanced versus the dollar on expectations
the European Central Bank will raise interest rates tomorrow and
signal further increases this year.

The euro has gained for four straight days against the yen
as the extra yield investors earn on European two-year debt over
similar maturity Japanese bonds widened to near a five-year
high. The yen is the world's worst performing currency against
the dollar so far this quarter, declining 3.2 percent, as
Japanese investors seek higher-yielding assets overseas.


Read more at Bloomberg Currencies News

Dutch regulator confirms KPN's Tiscali unit buy

(Reuters) - KPN reached agreement in September to buy Tiscali's Dutch
operations for 255 million euros .




The deal, which involves 276,000 broadband and 126,000
dial-up Internet customers as well as Tiscali's infrastructure
in the Netherlands, was expected to be finalised by the end of
this month, Italian Tiscali said last month.


Read more at Reuters.com Government Filings News

Cadbury says on track for disposal target

(Reuters) - The British maker of Dairy Milk chocolate and Trident chewing gum said it had made three disposals in Australia, Canada and Italy for a total of around 45 million pounds.



"Once all these transactions are completed, we will have raised over 200 million pounds from our programme of non-core disposals. We remain on track to deliver our target of around 250 million pounds from this initiative by the end of this year," Chief Financial Officer Ken Hanna said in a statement.


Read more at Reuters.com Mergers News

Creditex Starts Automated Service to Trade Credit-Default Swaps in Bulk

(Bloomberg) -- Credit derivatives broker Creditex
Inc. is starting an automated service that shortens the time it
takes to trade large blocks of credit-default swaps.

The trading platform, called Q-WIXX, will allow investors
to buy or sell electronically groups of as many as 200 different
credit-default swaps, according to Sunil Hirani, chief executive
officer at New York-based Creditex. Bulk transactions of the
contracts, used to bet on a company's ability to repay debt, can
be done in minutes rather than hours, Creditex said.


Read more at Bloomberg Bonds News

IMF Raises Forecast for Euro-Area Economic Growth to `About' 2.5 Percent

(Bloomberg) -- The International Monetary Fund hailed
``good economic times'' in Europe as it raised its forecast for
expansion this year.

The economy of the 13 nations using the euro will grow
``about'' 2.5 percent in 2007, faster than the 2.3 percent
predicted April 11, the IMF said in a summary of its annual
report on the euro-area economy. Expansion will ``continue
apace'' next year, it said.


Read more at Bloomberg Bonds News

FTSE Equities Including Vodafone, Standard Life Gain; Daily Mail Drops

(Bloomberg) -- U.K. stocks including by Vodafone
Group Plc, United Utilities Plc and Standard Life Plc rose. Daily
Mail & General Trust Plc paced declining shares.

The benchmark FTSE 100 Index added 5.9, or 0.1 percent, to
6670 at 8:10 a.m. in London. The FTSE All-Share Index gained
3.43, or 0.1 percent, to 3462.11. Ireland's ISEQ Index dropped
65.83 to 9897.61.


Read more at Bloomberg Stocks News

Britains' International Power looks at S.Africa

(Reuters) - Britain's International Power is considering possible coal plant joint ventures with the state utility in South Africa where demand is far outstripping supply.

Joint venture projects in South Africa face various obstacles, including that state utility Eskom is the only buyer for any power produced and its tariffs are fixed at a low level.


Read more at Reuters Africa