Correlation trade is extreme sport for hedge funds

(Reuters) - As hedge funds jostle for space in London's elite Mayfair
district, intense competition has created an atmosphere in which
only the highest possible returns will suffice, bankers say.




While coupons on investment grade corporate bonds are
routinely about 5 percent, the most radical new derivatives pay
up to 60 percent on an upfront basis, in exchange for insurance
against defaults on bespoke portfolios of corporate bonds.


Read more at Reuters.com Bonds News

U.S. Stock-Index Futures Retreat; Network Appliance Declines

(Bloomberg) -- U.S. stock-index futures dropped on
lower-than-expected earnings as investors awaited reports on
durable goods orders and new home sales that may provide further
clues on the outlook for economic growth and interest rates.

Network Appliance Inc., whose computers store and distribute
data, tumbled after the company's fiscal first-quarter sales and
profit forecast trailed analysts' estimates. Toll Brothers Inc.
fell after the largest U.S. luxury home builder said fiscal
second-quarter profit plunged 79 percent.


Read more at Bloomberg Stocks News

Former EMI CEO working on new takeover bid: report

(Reuters) - It said Fifield wanted to run EMI's recorded music division
and sell its publishing assets to record executive Charles
Koppelman and private equity firm GTCR Golder Rauner.




EMI's board recommended a 265 pence a share offer from
private equity firm Terra Firma on Monday.


Read more at Reuters.com Business News

Flowers Foods earnings rise on price increases

(Reuters) - Analysts on average were expecting earnings of 42 cents per
share, according to Reuters Estimates.




Sales rose to $609.9 million from $563.6 million a year
ago, helped by higher pricing, more sales of higher-priced
items and higher sales volume.


Read more at Reuters.com Market News

Wall Street closes lower on China worries

(Reuters) - U.S. stocks edged lower on Wednesday as a warning about Chinese stocks by former Federal Reserve Chairman Alan Greenspan erased gains fueled by takeover talk in the aluminum sector.

Greenspan said he feared a "dramatic contraction" in Chinese stocks after the recent boom, adding the run-up was "clearly unsustainable."


Read more at Reuters Africa

Brazil, Colombia, Mexico 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.

Brazil: Brazil's unemployment rate was probably little
changed in April at 10 percent, according to the median estimate
of 16 economists Bloomberg surveyed. Brazil's statistics agency
is to release the data today at 8:30 a.m. New York time.


Read more at Bloomberg Bonds News

Japanese Shares Slip, Led by Sompo, Insurers; Trading Companies Advance

(Bloomberg) -- Japanese stocks declined for the
first time in three days, paced by insurers after Mitsui
Sumitomo Insurance Co. and Sompo Japan Insurance Inc. reported
their profits fell.

Limiting losses, Japan Tobacco Inc., the world's third-
largest traded cigarette maker, jumped the most in five months
after Merrill Lynch & Co. raised its recommendation on the stock.
Itochu Corp. climbed 3.6 percent after Mizuho Securities Co.
lifted its recommendation on the shares of Japan's five largest
trading houses.


Read more at Bloomberg Stocks News