Australian Dollar Climbs to 16-Year High Versus Yen, U.S. Dollar on Yield

(Bloomberg) -- The Australian dollar rose to the
highest in 17 years against the U.S. currency and in almost 16
years against the yen as investors were lured to the nation's
higher-yielding assets.

So-called carry trades have lifted Australia's currency,
known as the Aussie, 23 percent against the yen the past year,
with investors attracted to a benchmark rate 5.75 percentage
points higher than Japan's, the lowest of major economies. The
Bank of Japan left borrowing costs unchanged last week and said
in its May minutes any increases would be ``gradual,'' spurring
bets the key rate won't be boosted this year.


Read more at Bloomberg Currencies News

Deutsche Telekom AG, Gazprom, Siemens AG, Pernod: European Equity Preview

(Bloomberg) -- The following stocks may rise or
fall in European markets. Prices are from the last close.

The Dow Jones Stoxx 600 Index fell 1 percent to 393.70. The
Dow Jones Stoxx 50 Index dropped 1.1 percent to 3933.98. The
Euro Stoxx 50 Index, a benchmark for the 13 nations using the
euro, lost 1.3 percent to 4488.66.


Read more at Bloomberg Stocks News

TIMELINE: Lone Star sells stake in S.Korea's KEB

(Reuters) - Here is a chronology of events since Lone Star bought a 50.5 percent stake in KEB for $1.2 billion in August 2003:




- February 28, 2004: KEB absorbs KEB Credit Service Co. Ltd. Prosecutors will later charge Lone Star of manipulating the stock price of the card unit to lower the price.


Read more at Reuters.com Business News

Bear Stearns May Assume $3.2 Billion of Loans to Hedge Fund, People Say

(Bloomberg) -- Bear Stearns Cos. may take over about
$3.2 billion of loans that banks and securities firms made to one
of its money-losing hedge funds to prevent creditors from seizing
more assets, according to people with knowledge of the plan.

Bear Stearns, the biggest broker to hedge funds, offered to
assume the loans after Merrill Lynch & Co. took assets that
backed $850 million in credit lines, said the people, who
declined to be named because the proposal is confidential. Lehman
Brothers Holdings Inc. and JPMorgan Chase & Co. also put some of
their collateral up for sale.


Read more at Bloomberg Currencies News

Copper Falls in Asia on Concern China May Raise Interest Rates; Zinc Down

(Bloomberg) -- Copper prices fell in Shanghai for
the first day in three amid speculation that China will raise
interest rates to cool economic growth, curbing demand in the
world's biggest user of the metal.

Inventories monitored by the London Metal Exchange, which
had dropped to their lowest since October, jumped 4.7 percent to
119,600 metric tons yesterday, the exchange said. Still, strike
threats in Chile, the largest source of copper, and in other
producing countries limited losses.


Read more at Bloomberg Commodities News

Japanese 10-Year Bonds Gain as Declines in Stocks Boost Demand for Debt

(Bloomberg) -- Japan's 10-year bonds rose, heading
for a weekly gain, on speculation a decline in local stocks
boosted demand for government debt.

Bonds were set to snap their longest weekly losing streak
since October after a government report showing manufacturers
turned pessimistic fueled expectations the central bank's Tankan
survey of business sentiment due next month will be weaker than
some traders expect. Signs of slower growth may attract
investors to bonds with 10-year yields near the highest since
February relative to two-year securities.


Read more at Bloomberg Bonds News

Sri Lanka's Central Bank May Keep Key Rate Unchanged for a Fourth Month

(Bloomberg) -- Sri Lanka's central bank will
probably keep its benchmark interest rate unchanged for a fourth
straight meeting to push inflation lower while supporting growth.

Central Bank of Sri Lanka Governor Nivard Cabraal will
leave the repurchase rate at 10.5 percent, the highest level in
Asia, according to 10 of 11 analysts surveyed by Bloomberg News.
One economist expected a 25 basis point increase. The decision
is expected on June 25 at 7.30 a.m. in Colombo.


Read more at Bloomberg Emerging Markets News