U.S. Hiring Probably Picked Up in May Signaling Rebound in Economic Growth

(Bloomberg) -- Employers in the U.S. increased
hiring last month, signaling the economy is rebounding from the
weakest growth in four years.

The projected 134,000 increase in payrolls is based on the
median estimate of 84 economists surveyed by Bloomberg News and
would follow a 88,000 gain in April that was the smallest since
November 2004. The jobless rate is forecast to hold at 4.5
percent for a second month.


Read more at Bloomberg Bonds News

Proton Shares Slump After Volkswagen Talks Fail, Company Posts Annual Loss

(Bloomberg) -- Shares of Proton Holdings Bhd.,
Malaysia's biggest automaker, fell after the government said
Volkswagen AG dropped plans to buy a stake and the Southeast
Asian carmaker posted its first annual loss in at least 17 years.

Proton stock, down 20 percent this year, fell as much as
3.7 percent in Kuala Lumpur today after the state-run automaker
yesterday reported a loss of 591.4 million ringgit ($174
million) for the 12 months ended March 31. Volkswagen, Europe's
biggest automaker, no longer wants a stake in Proton, Malaysia's
Second Finance Minister Nor Mohamed Yakcop told reporters today.


Read more at Bloomberg Emerging Markets News

Australian Government Report Recommends Carbon Trading System, Howard Says

(Bloomberg) -- An Australian government report has
recommended the nation introduce a carbon emissions trading
system to combat climate change, Prime Minister John Howard said.

``Australia cannot wait for a coordinated global
response,'' Howard said in a statement today. ``The government's
response to this report will be measured and balanced but will
ensure Australia plays her part in tackling climate change.''


Read more at Bloomberg Commodities News

Asian stocks shine, dollar subdued before U.S. data

(Reuters) - The strength in equity markets weighed on fixed income assets, dragging Japanese government bonds lower, while the dollar hovered below a three-month high against the yen ahead of closely watched U.S. payroll data later on Friday.




London Brent crude oil held above $68 a barrel after snapping a four-day losing streak when data showed U.S. crude inventories fell last week, while gold extended its rebound to a 1-1/2-week high of $663 an ounce.


Read more at Reuters.com Hot Stocks News

UBS May Manage Its First Yuan Share Sale With Western Mining IPO in China

(Bloomberg) -- UBS AG's Chinese securities venture
will arrange its first share sale in the world's fastest-growing
stock market after Western Mining Co. wins regulatory approval
for a Shanghai initial public offering.

Getting the go-ahead from the China Securities Regulatory
Commission at a hearing on June 5 will allow Zurich-based UBS to
join Goldman Sachs Group Inc. as the only global investment
banks that can arrange share sales in China. Foreign firms can
only underwrite yuan stock sales through local ventures.


Read more at Bloomberg Emerging Markets News

Australian and New Zealand Dollars Surge Against Yen on Yield Advantage

(Bloomberg) -- The Australian and New Zealand dollars
surged to the highest in more than 15 years against the yen as
traders were attracted to the higher returns on investments.

New Zealand's dollar was this week's biggest gainer versus
the yen among the 16 most-traded currencies, with Australia's
third, as signs of a stronger U.S. economy and rising global
equity markets encouraged investors to take on more risk. Traders
increased so-called carry trades, where they borrow in countries
with lower interest rates to fund higher-yielding investments.


Read more at Bloomberg Currencies News

UPDATE 1-Mexico's finmin has no precise date for tax plan

(Reuters) - CHICAGO, May 31 - Mexican Finance Minister
Agustin Carstens said on Thursday there is no precise date for
presenting the government's keenly awaited tax reform proposals
to Congress.




"There's a lot of dialogue," Carstens told reporters after
a speech in Chicago. "So far it has been a respectful,
constructive dialogue."


Read more at Reuters.com Bonds News

Bancrofts say they will consider News Corp. bid

(Reuters) - The family also "intends to meet with News Corporation to determine whether, in the context of the current or any modified News Corporation proposal, it will be possible to ensure the level of commitment to editorial independence, integrity and journalistic freedom that is the hallmark of Dow Jones."




Read more at Reuters.com Mergers News

Bancrofts to discuss Dow Jones bid with News Corp.: WSJ

(Reuters) - The Wall Street Journal is owned by Dow Jones.




Read more at Reuters.com Business News

Patterson-UTI Energy says court OK's plan of distribution

(Reuters) - The Snyder, Texas-based company said it will recover about
$40 million according to the approved plan. The company expects
the receiver will distribute substantially all of the amounts
recovered to it within 60 days.





Read more at Reuters.com Government Filings News

UPDATE 2-Brocade posts sharply lower 2nd-quarter profit

(Reuters) - Brocade also issued a forecast for the current quarter that
was largely in line with analysts' estimates.




Chief Executive Michael Klayko said on a conference call
that demand was good across all three of its segments, and that
the integration of McData was well ahead of schedule. This was
the first quarter of combined operations since the $973 million
deal closed in January.


Read more at Reuters.com Government Filings News

FACTBOX-SEC allegations detailed in Mercury, Brocade cases

(Reuters) - SEC ALLEGATIONS IN MERCURY CASE




- Four former company officers schemed over eight years
from 1997 to give themselves and others secret pay by
backdating stock options.


Read more at Reuters.com Government Filings News

UPDATE 1-Harris Corp. to buy private Multimax for $400 mln

(Reuters) - Harris also said it now sees fiscal 2007 earnings to be at
the lower end of its previous forecast of $2.77 to $2.81 a
share due to reserves expected in the current quarter from one
of its segments from schedule and cost overruns on a fixed
price satellite deployable mesh reflector program.




Analysts are expecting the company to earn $2.80, before
items, for fiscal 2007, according to Reuters Estimates.


Read more at Reuters.com Mergers News

US CREDIT-Abitibi, Bowater spread gap may be opportunity

(Reuters) - The cost to protect Canadian firm Abitibi's bonds with
credit default swaps rose roughly 18 basis points on Thursday
to around 625 basis points, which means it costs $625,000
annually to insure $10 million of debt for five years,
according to market participants.




That's roughly $130,000 more than the credit protection
costs for U.S. newsprint and specialty paper maker Bowater,
which are around $495,000.


Read more at Reuters.com Bonds News

Buffett talk fuels interest in Kraft Foods calls

(Reuters) - "There are rumors circulating this week that ... Berkshire
Hathaway may be building a stake in food-maker Kraft Foods,"
said Andrew Wilkinson, senior market analyst at Interactive
Brokers Group. "We're unsure of the foundation of this rumor."




Shares of Kraft, known for brands including Maxwell House,
Nabisco and Oscar Mayer, trade at about 18.7 times next year's
estimated earnings. They edged up 15 cents, or 0.45 percent, to
close at $33.84 on the New York Stock Exchange.


Read more at Reuters.com Business News

Argentina stocks hit new record, bonds end mixed

(Reuters) - The MerVal index of 16 leading stocks finished up
0.93 percent to 2,243.03 points. Trade volume on the broad
market in Buenos Aires was a bulky $58.5 million, the heaviest
since Feb. 8 when it topped $79 million.




"What stood out was a very good trade volume accompanied by
a dose of very selective buying, with interest in those issues
that have been long undervalued," said Juan Diedrich, a trader
at Capital Markets Argentina.


Read more at Reuters.com Bonds News

U.S. Technology Stocks Rally on Profits; Ciena, Novell Shares Lead Advance

(Bloomberg) -- Technology shares rallied on better-
than-expected earnings, helping the U.S. stock market complete
its best May since 2003 and sending the Standard & Poor's 500
Index to a second straight record.

Ciena Corp. and Novell Inc. led the advance after first-
quarter earnings topped some analysts' forecasts. A.G. Edwards
Inc. rose the most in two decades after Wachovia Corp. said it
will buy the company for about $6.8 billion, the biggest
acquisition of a U.S. brokerage firm in almost seven years.


Read more at Bloomberg Stocks News

GLOBAL MARKETS-Dollar up, bonds down on Chicago-area data

(Reuters) - NEW YORK, May 31 - The dollar rose to three-month
highs against the yen and ultra-safe U.S. government bond
prices fell on Thursday after a report showed solid business
activity in the U.S. Midwest, improving the outlook for the
economy.




The report on Chicago-area manufacturing in May, which
showed a revival at U.S. factories following a sluggish start
to the year, helped to push up the yield on the benchmark
10-year Treasury note to the highest since August 2006.


Read more at Reuters.com Bonds News

UPDATE 1-Romania rate cuts premature, increase needed-IMF

(Reuters) - "Given the need to firmly anchor inflationary expectations
and the credibility of the inflation targeting framework,
directors considered the recent interest rate cuts to be
premature," the IMF said in its 2007 economic review of the
Romanian economy.




"They urged the authorities to increase interest rates as
needed to attain the inflation targets," the IMF added.


Read more at Reuters.com Bonds News

Italy regional banks, Fondiaria in insurance deal

(Reuters) - Pop Verona will transfer a 50 percent stake of its
insurance branch BPV Vita to Fondiaria for 530 million euros
. It expects a capital gain of 470 million euros
from the transaction.




The banks, who said they were advised by Credit Suisse on
the deal, said BPV Vita would have a distribution network of
about 2,200 branches, with a target of 6 billion euros in
annual premium income.


Read more at Reuters.com Mergers News

UPDATE 1-N.J. court certifies class-action against Wal-Mart

(Reuters) - In a 5-1 ruling, the state's highest court revived a
lawsuit by about 72,000 current and former New Jersey employees
who had previously been denied class-action status by trial and
appellate courts.




The court said it certified the status because "common
questions of law and fact predominate over individualized
questions" and class-action is the most effective way to settle
the matter.


Read more at Reuters.com Bonds News

Sugar Is Little Changed in New York Amid Rising Demand for Prompt Delivery

(Bloomberg) -- Sugar futures in New York were little
changed as delays in harvesting in Brazil, the biggest producer,
led to short-term tightness in supplies before the development
of a surplus expected later this year.

The price of the sweetener for prompt delivery is
8.3 percent higher than a month ago. The harvest in Brazil is
about two weeks behind because mills face a shortage of parts
and rain halted work for as many as six days, according to a
report today by Fimat USA LLC in New York.


Read more at Bloomberg Commodities News

Appeals court denies bid to halt Western Refining-Giant link

(Reuters) - The FTC had charged that the proposed acquisition would reduce
competition for the supply of gasoline, diesel fuel and jet fuel
in northern New Mexico.




Read more at Reuters.com Mergers News

N.J. court certifies class-action against Wal-Mart

(Reuters) - The court said it certified the status because "common questions of law and fact predominate over individualized questions" and class-action is the most effective way to settle the matter.




According to the lawsuit, the employees contend the world's largest retailer failed to compensate them for all time worked by forcing them "to work through meal breaks, locking employees in retail stores after they had clocked out, and by coercing employees to work off the clock."


Read more at Reuters.com Bonds News

Rand firms as rate hike chances rise

(Reuters) - The rand was slightly firmer against the dollar late on Thursday after fluctuating for much of the session, with gains seen in coming days as local economic data buoyed expectations of an interest rate rise.

At 1505 GMT the South African unit was at 7.1225/dollar, up 0.31 percent from New York's close of 7.1450.


Read more at Reuters Africa

Argentina wants OECD aid on Paris Club debt -media

(Reuters) - Argentina's secretary for economic policy, Oscar Tangelson,
told reporters the government had discussed this possibility at
an OECD meeting in Paris last week.




"It appears that there are good conditions for this to come
about," Tangelson was quoted as saying by leading daily
newspaper La Nacion.


Read more at Reuters.com Bonds News

Texas Instruments says Q2 improvements on track

(Reuters) - "I think you're going to find things tracking pretty much in line with that," Templeton told a Cowen & Co technology investment conference.




Texas Instruments is scheduled to release its mid-quarter update on June 11.


Read more at Reuters.com Business News

InBev Jumps on Speculation of Merger With U.S. Beermaker Anheuser-Busch

(Bloomberg) -- Shares of InBev NV, the world's largest
brewer by sales, rose almost 5 percent on speculation the company
may merge with Budweiser maker Anheuser-Busch Cos. or sell real
estate in Belgium and the Netherlands.

``The name of Bud has been mentioned once again,'' said Andrew
French, a sales trader at E*Trade Securities in London. A merger
would help Anheuser-Busch ``to fast-track its growth.''


Read more at Bloomberg Stocks News

Man Group's MF Global unit files for $1 bln IPO

(Reuters) - Citigroup, JPMorgan, Lehman Brothers, Merrill Lynch & Co.
and UBS Investment Bank are underwriting the IPO, and the
company has applied to list its shares on the New York Stock
Exchange under the ticker symbol "MF," it said.





Read more at Reuters.com Government Filings News

UPDATE 1-Citigroup becomes latest BATS Trading stakeholder

(Reuters) - Citi said that it was one of several banks that
participated in the latest round of funding for BATS, which
raised a total of $45 million for the closely held rival to
traditional stock exchanges. Financial terms of Citi's
investment were not disclosed.




BATS, which lately has gained market share on some larger
exchanges, is one of a series of alternative trading venues
that have attracted growing levels of interest and investment
from securities firms.


Read more at Reuters.com Mergers News

Wachovia CEO sees no big bank mergers for a while

(Reuters) - "We like the U-shaped footprint we've got. That's where we'll be focusing on the banking side," Thompson said on a conference call. "Small deals in the Southwest and West would be possibilities, but I don't think you'll see us doing anything significant from a merger standpoint from a while."




Read more at Reuters.com Bonds News

IBM, ASML payouts latest red flags for credit market

(Reuters) - Share buybacks, big dividend payments and a tidal wave of
merger and acquisition activity -- set this year to beat the
record level reached in 2006 -- all pose threats to company
creditworthiness.




But the corporate debt market in Europe has yet to react,
with yield spreads at their tightest in at least two years,
according to data from Merrill Lynch, and new bond issues being
snapped up voraciously -- although investors and analysts warn
that this rosy view of the world cannot persist.


Read more at Reuters.com Bonds News

HSBC to Sell Bonds Made of Subprime Mortgages From New Century Financial

(Bloomberg) -- HSBC Holdings Plc plans to sell bonds
backed by some of the last subprime mortgages made by bankrupt
New Century Financial Corp., once its biggest rival in the
business.

The $1 billion of subprime home loans made by New Century
of Irvine, California, that HSBC plans to package and sell as
securities on June 5 have an average age of about three months,
Fitch Ratings said in a May 29 report. New Century, whose $51.6
billion in lending last year to borrowers with poor credit
records or high debt was topped only by London-based HSBC,
stopped taking loan applications in March.


Read more at Bloomberg Bonds News

WRAPUP 1-U.S. first-quarter growth weakest in over 4 years

(Reuters) - The Commerce Department revised down its estimate for
first-quarter expansion in gross domestic product, or GDP, to
0.6 percent from 1.3 percent that it estimated a month ago.




It was the slowest rate of quarterly growth since the
fourth quarter of 2002 when the economy edged ahead at a 0.2
percent rate and was below Wall Street economists' forecasts
for a 0.8 percent quarterly growth rate.


Read more at Reuters.com Economic News

U.S. Stocks Rise on Takeovers; A.G. Edwards, Ceridian Shares Lead Advance

(Bloomberg) -- U.S. stocks extended their record-
breaking rally after A.G. Edwards Inc. and Ceridian Corp. agreed
to be acquired, adding to this year's unprecedented pace of
takeovers.

A.G. Edwards rose to an all-time high after Wachovia Corp.
agreed to buy the company for about $6.84 billion in cash and
stock in the biggest acquisition of a U.S. brokerage firm in
almost seven years. Ceridian advanced to a six-year peak after
Thomas H. Lee Partners LP and Fidelity National Financial Inc.
purchased the provider of payroll and human resources services
for $5.3 billion.


Read more at Bloomberg Stocks News

South African Annual Credit Growth Unexpectedly Accelerates to 25 Percent

(Bloomberg) -- South African credit growth
unexpectedly accelerated to an annual 25.1 percent in April,
adding to pressure on inflation and increasing the likelihood the
central bank will raise interest rates next week.

Growth in borrowing by households and companies accelerated
from 24.2 percent in March, the Pretoria-based central bank said
on its Web site today. Credit was expected to rise 24 percent,
according to the median estimate of 10 economists surveyed by
Bloomberg.


Read more at Bloomberg Emerging Markets News

Malaysia Palm Oil Prices Rise Most in a Month to Record Close on Exports

(Bloomberg) -- Palm oil futures in Malaysia rose the
most in a month to a record close after reports showing Malaysian
exports increased in May, with Chinese demand undeterred by
higher prices.

Bulk palm oil shipments through Malaysian sea ports gained
4.7 percent to 1.18 million metric tons in May, from 1.13 million
tons last month, Societe Generale de Surveillance estimated today.


Read more at Bloomberg Commodities News

Wyeth, Progenics say FDA to review constipation drug filing

(Reuters) - The acceptance would result in a $5 million milestone
payment to Progenics by Wyeth, the statement said.





Read more at Reuters.com Government Filings News

Buy Put Options on Japan's Government Bond Futures, Daiwa Institute Says

(Bloomberg) -- Investors should buy put options on
Japan's bond futures, betting the securities will decline on
speculation the central bank will raise interest rates, said
Daiwa Institute of Research Ltd.

Ten-year bond futures may drop below the lowest since
August by the end of next month, said Takeo Okuhara, a fixed-
income strategist in Tokyo at Daiwa Institute, a unit of Japan's
second-largest brokerage. Bond futures fell today as Bank of
Japan policy board member Kiyohiko Nishimura said the bank is
aware of risks that keeping borrowing costs low may lead to
inefficient investment and financial market distortions.


Read more at Bloomberg Bonds News

U.S. Notes Are Little Changed as Monthly Rebalancing May Boost Treasuries

(Bloomberg) -- U.S. Treasuries were little changed
with benchmark 10-year note yields near their highest levels of
the year amid signs the economy is rebounding from a first-
quarter slowdown.

Traders pared bets the Federal Reserve will cut interest
rates this year as stock-index futures indicated U.S. equities
may extend an advance that yesterday pushed the Standard & Poor's
500 Index to a record. Treasuries may benefit later today from
the monthly rebalancing of bond indexes to include securities
issued during the month.


Read more at Bloomberg Bonds News

Russia's MTS Q1 net $448.6 mln, above market expectations

(Reuters) - The figure was a 143.3 percent rise versus the same quarter of 2006, and also a four-fold increase in comparison with a revised fourth-quarter net profit of $110.3 million.



MTS said earlier on Thursday it had restated its 2006 results to reflect a $170 million provision for the potential costs of a deal in ex-Soviet Kyrgyzstan [nL31272615].


Read more at Reuters.com Market News

Ciena posts profit on higher Web bandwidth demand

(Reuters) - Net profit for Ciena's fiscal second quarter, ended April 30, was $13 million, or 14 cents per share, compared with a loss of $1.9 million, or 2 cents per share, a year earlier.




Sales rose to $193.5 million from $131.2 million in the year-ago quarter.


Read more at Reuters.com Hot Stocks News

Carlsberg to set up JV in western China: partner

(Reuters) - The Danish brewer, which owns 30 percent of the joint venture, confirmed the plan but denied it had agreed with its Chinese partner about the size of the investment.




"There's a dialogue going on with local authorities and the final size, timing and location are to be confirmed," said Hong Kong-based executive Soren Ravn, who is in charge of Carlsberg's business development in Greater China.


Read more at Reuters.com Mergers News

Swiss Franc Holds Near Two-Week High Versus Dollar as GDP Growth Quickens

(Bloomberg) -- The Swiss franc traded near its
highest in two weeks against the dollar after a report showed
first-quarter growth in the Swiss economy quickened faster than
estimated.

Switzerland's currency yesterday touched the highest versus
the euro in more than two weeks as falling global stocks caused
investors to dump riskier assets. A report today showed gross
domestic product in the Alpine economy rose 0.8 percent from the
fourth quarter. Economists surveyed by Bloomberg News had
expected 0.6 percent growth.


Read more at Bloomberg Currencies News

S.Africa's Eskom to issue 350 mln rand of bonds

(Reuters) - South Africa's electricity utility Eskom will issue up to 350 million rand worth of ES26 bonds on June 4, the company said on Thursday.

Eskom, which is planning massive investment to boost tight power capacity in Africa's biggest economy, said the bond's bidding methodology would be on a spread basis to the government's R186 bond due 2026.


Read more at Reuters Africa

E.ON Shares Jump After German Utility Announces EU7 Billion Share Buyback

(Bloomberg) -- E.ON AG, Germany's biggest utility,
plans to build 18 new power plants in Europe as part of a 60
billion-euro ($81 billion) investment plan to satisfy growing
demand for electricity.

The new generators will increase capacity in five years by
13,500 megawatts, enough to supply about 27 million average
European homes, as the region's markets open to competition,
E.ON Chief Executive Officer Wulf Bernotat said today at a press
conference in Dusseldorf, where the company is based.


Read more at Bloomberg Stocks News

EDF, EnBW Reach Deal to Store Natural Gas in Etzel Salt Caverns in Germany

(Bloomberg) -- Electricite de France SA, Europe's
largest power supplier, and Energie Baden-Wuerttemberg AG have
reached an agreement with a German property company for long-term
storage of natural gas in underground salt caverns at Etzel, near
the North Sea.

EDF and EnBW, Germany's third-largest utility, each signed an
agreement with IVG Immobilien AG for access to the salt caverns,
which have a storage capacity of 400 million cubic meters, for 35
years, EDF said in an e-mailed statement.


Read more at Bloomberg Energy News

U.S. attracts bulk of Gulf oil windfall surplus-IIF

(Reuters) - The Institute of International Finance estimated total
export earnings of the six states of the Gulf Cooperation
Council -- Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and
the United Arab Emirates -- were more than $1.5 trillion in 2002
to 2006.




"About $1 trillion went towards imports. The remainder of
the earnings -- some $542 billion -- represented surplus funds
that entered global capital markets and contributed to an
increase in GCC foreign asset holdings," it said.


Read more at Reuters.com Bonds News

S&P to roll out recovery ratings, upgrades likely

(Reuters) - Standard & Poor's plans to roll out the first stage of a new rating system with more information on recovery prospects next week, a move that may result in hundreds of junk bond and loan rating upgrades, the rating agency said on Wednesday.

Recoveries are the amounts debt investors receive if an issuer defaults. S&P's recovery rating changes were first announced last October.


Read more at Reuters Africa

Europe shares hit 6-1/2 yr high as E.ON, ASML star

(Reuters) - European shares tracked Asian and U.S. stocks higher early on Thursday to hit fresh six-and-a-half year highs, with German utility E.ON and Dutch chip equipment maker ASML buoyed by plans to return money to shareholders.

At 0756 GMT, the FTSEurofirst 300 index of top European shares was up 0.6 percent at 1,609.41 points, with shares on Germany's DAX outperforming peers in Britain and France with a 1-percent increase.


Read more at Reuters Africa

Fed May Keep Rate Unchanged as Housing, Prices Pull in Opposite Directions

(Bloomberg) -- Federal Reserve Chairman Ben S.
Bernanke is pulled in opposite directions by worries over
inflation and housing, leaving him little choice other than to
keep interest rates unchanged.

Fed officials said they still expect a pickup in the
economy this year and view inflation as their main concern,
minutes of their May 9 meeting showed yesterday. They listed
several caveats, including the risk that the housing recession
may ``weigh heavily'' on growth.


Read more at Bloomberg Currencies News

Coca-Cola stops funding animal testing: PETA

(Reuters) - Coke does not conduct animal tests and does not directly fund animal tests on its beverages, and is asking its partners and research organizations to use alternatives to animal testing, the company said in a letter provided by PETA.




"Pepsi's announcement helped to spur Coke along," said Bruce Friedrich, a vice president of PETA. Coca-Cola could not immediately be reached for comment.


Read more at Reuters.com Business News