JGBs slide on fall in Treasuries, curve steepens

(Reuters) - The two-year yield climbed to a 10-month high as traders
braced for a Bank of Japan rate rise to 0.75 percent from 0.50
percent that many market players see taking place as early as
August.
But long-term bond yields rose more, and caused the yield
curve to steepen.




"There seems to be a combination of flows, including hedge-
selling in 10- and 20-year JGBs ahead of a 20-year bond auction,"
said Tatsuo Ichikawa, a JGB analyst at ABN AMRO.


Read more at Reuters.com Bonds News

South Korea's Kospi Is Little Changed; SK Corp. Drops, S-Oil Advances

(Bloomberg) -- South Korea's Kospi index swung
between gains and losses. SK Corp. declined as investors judged
the market's recent gains an opportunity to sell.

S-Oil Corp. rose after Hyundai Securities Co. said the
refiner will post record earnings this year on better refining
margins.


Read more at Bloomberg Stocks News

U.S. state opposes NorthWestern sale to Babcock fund

(Reuters) - Babcock and Brown Infrastructure said all five
commissioners came to the decision that the acquisition should
not proceed.




NorthWestern serves about 640,000 electric and natural gas
customers in Montana, South Dakota and Nebraska.


Read more at Reuters.com Government Filings News

Tohoku Electric Shuts Down Nuclear Reactor After Back-up Water Pump Fails

(Bloomberg) -- Tohoku Electric Power Co., Japan's
fourth-largest power producer, shut a nuclear reactor late
yesterday after discovering a mechanical fault at a back-up pump
that supplies water to cool the unit.

The company halted a 524-megawatt reactor at the Onagawa
nuclear power station and started an investigation into the cause
of the failure, the Sendai City-based company said in a statement
on its Web site.


Read more at Bloomberg Energy News

South Korea's Kospi Index Advances to Third Straight Record; S-Oil Rises

(Bloomberg) -- South Korean stocks rose, pushing the
Kospi index to its third record in as many days. S-Oil Corp. rose
after Hyundai Securities Co. said the refiner will post record
earnings this year.

LG.Philips LCD Co. slid after Royal Philips Electronics NV
said it is in talks to sell all or part of its stake in the
company.


Read more at Bloomberg Stocks News

Japan's Government Bonds Fall as Traders Prepare for 20-Year Debt Auction

(Bloomberg) -- Japan's bonds dropped on speculation
traders will sell to protect against potential losses at an
auction of 20-year government debt tomorrow.

Brokerages often reduce bond holdings ahead of auctions in
case yields rise before they can pass on the new debt to
investors. Japan's bonds also fell as they tracked a decline in
Treasuries that pushed 10-year U.S. yields to the highest in
three months yesterday.


Read more at Bloomberg Bonds News

RPT-REFILE-Fed's Lacker: Lower inflation expectations needed

(Reuters) - Clear communications by the central bank could bring
inflation expectations down, he said.




"Without a prompt fall in inflation expectations, a
reduction in inflation below 2 percent is likely to be
temporary and hard to sustain," he said in remarks prepared for
delivery to the Money Marketeers of New York University. A copy
of his speech was made available in advance.


Read more at Reuters.com Bonds News

US, China had "direct exchange" on yuan-US official

(Reuters) - "There was a direct exchange of views on our side and
their side," the official said, adding that he would let
Treasury Secretary Henry Paulson and other cabinet members
describe the discussion more fully on Wednesday.




"We are continuing to push every way we can for faster
appreciation. It's our view that appreciation is going too
slowly. both as far as their benefits are concerned and as far
as our benefits are concerned."


Read more at Reuters.com Bonds News

BHP Billiton, Coates Hire, Platinum Asset, Rio: Australian Equity Preview

(Bloomberg) -- The following is a list of companies
whose shares may rise or fall in Australia. This preview
includes news announced after markets closed yesterday. Prices
are from yesterday's close unless otherwise stated. Stock
symbols are in brackets after the company names.

The S&P/ASX 200 Index futures contract due in June fell 0.3
percent to 6354 at 6:59 a.m. in Sydney. The Bank of New York
Australia ADR Index dropped 1 percent in New York.


Read more at Bloomberg Stocks News

Taiwan's Economy Probably Grew at Fastest Pace in Six Months, Survey Shows

(Bloomberg) -- Taiwan's economy probably grew at the
fastest pace in six months in the first quarter because of rising
demand from China for the island's electronics and as consumer
spending rebounded.

Gross domestic product expanded 4.2 percent from a year earlier
after climbing 4 percent in the fourth quarter, according to the
median estimate of 13 economists surveyed by Bloomberg News. The
growth report is due tomorrow at 5 p.m. in Taipei.


Read more at Bloomberg Bonds News

UPDATE 1-Shanda says quarterly net profit soars

(Reuters) - Shanda also said it expected to see further revenue growth
later this year as it released additional content for existing
games and introduced new titles.




Shanda's Nasdaq-listed American depositary shares rose as
much as 3 percent in extended trading before giving back some
of that gain to trade up 1.3 percent at $29.05.


Read more at Reuters.com Market News

AirAsia, Chunghwa Telecom, HSBC, Kookmin: Asia Ex-Japan Equity Preview

(Bloomberg) -- The following stocks may rise or fall
in Asian markets, excluding Japan. This preview includes news
that broke after markets closed. Prices are from the local
market's last close. Stock symbols are in parentheses after
company names.

AirAsia Bhd. (AIRA MK): Southeast Asia's biggest discount
airline said it may increase its fuel surcharges to counter
rising crude oil prices by ``one or two'' ringgit, AirAsia Chief
Executive Officer Tony Fernandes said. It also said it is
``almost'' fully hedged until June and may extend the hedging
until end of 2007. The government will announce a ``significant''
reduction in the airport tax at the nation's low-cost terminal
today, Deputy Prime Minister Najib Razak said. The shares of
AirAsia, which will report its third-quarter result today, fell 3
sen, or 1.6 percent, to 1.91 ringgit.


Read more at Bloomberg Stocks News

S&P 500 to add MEMC, drop Kinder Morgan

(Reuters) - Shares of companies joining the S&P 500 often rise because
many investors try to track the index and are required to buy
shares of companies that enter it.




MEMC shares closed Tuesday up 84 cents at $57.43 on the New
York Stock Exchange. They rose $1.82, or 3.2 percent, to $59.25
in after-hours electronic trading following S&P's
announcement.


Read more at Reuters.com Mergers News

Alcan mulls alternatives to Alcoa bid: CEO

(Reuters) - Evans declined to identify the others Alcan was talking to, or specify whether Alcan would consider trying to take over Alcoa.




"If we thought that it would be productive and could lead to a good outcome for our shareholders...of course we would enter into discussions with anyone," he said.


Read more at Reuters.com Mergers News

UPDATE 1-Men's Wearhouse posts higher profit, boosts outlook

(Reuters) - The retailer also boosted its full-year profit forecast,
citing an expected lift from the recent acquisition of After
Hours Formalwear, and its shares rose more than 5 percent in
extended trading.




Net earnings came to $40.9 million, or 75 cents per share,
for the quarter ended May 5, compared with $28.9 million, or 53
cents per share, a year earlier.


Read more at Reuters.com Market News

Significant hurricane threat seen for 2007 -WSI

(Reuters) - Coming off a mild 2006 storm season, WSI said warm ocean
temperatures pointed to harsher weather this year.




"Our seasonal temperature models depict a warm summer in
the Southeast. If this occurs, the stronger-than-normal
Atlantic subtropical ridge should act to steer more storms into
the Gulf of Mexico than in a typical year," WSI seasonal
forecaster Dr. Todd Crawford said in a press release.


Read more at Reuters.com Bonds News

Alcan rejects Alcoa's takeover bid

(Reuters) - Alcan's shares closed at $81.03 on the New York Stock Exchange on Tuesday, well above Alcoa's offer of $58.60 per share plus 0.4108 share, which values Alcan at $75 a share.







Read more at Reuters.com Business News

Sallie Mae names new chief executive

(Reuters) - In April, Sallie Mae agreed to sell itself to two private
equity firms and two banks for $25 billion.




Read more at Reuters.com Market News

House passes Fannie, Freddie oversight bill

(Reuters) - Under the legislation, a new, independent regulator would be created to oversee these mortgage giants, which have mortgage portfolios totaling more than $1.4 trillion.




A portion of both Fannie Mae and Freddie Mac's profits would be set aside for an affordable housing fund. But that would be capped at $520 million under the legislation.


Read more at Reuters.com Government Filings News

Hog Futures Fall to Two-Month Low on Animal Supplies; Cattle Futures Drop

(Bloomberg) -- Hog futures in Chicago fell to the
lowest closing price in more than two months as supplies of the
animals exceeded demand from meatpackers. Cattle futures also
declined.

Pork processors such as Smithfield Foods Inc. killed about
1.95 million hogs last week, unchanged from a year earlier, even
though pork prices are 13 percent higher. That indicates hog
supplies are plentiful, said Rich Nelson, an analyst with
Allendale Inc. in McHenry, Illinois.


Read more at Bloomberg Commodities News

TREASURIES-Prices fall on hedging, weaker Bunds

(Reuters) - NEW YORK, May 22 - U.S. Treasury debt prices
slipped on Tuesday, with benchmark yields posting 3-1/2 month
highs on pressure from weaker euro zone debt and rate and
supply-related hedging.




Bund yields climbed to multi-year highs after data
reinforced the outlook for strength in the euro zone economy,
which could lead to more interest rate hikes by the European
Central Bank, analysts said.


Read more at Reuters.com Bonds News

Coffee Declines in New York as Threat of Crop-Damaging Brazil Frost Fades

(Bloomberg) -- Coffee futures fell in New York as
the threat of a crop-damaging frost faded in Brazil, the world's
biggest grower.

Favorable conditions are expected in the growing states of
Sao Paulo and Minas Gerais, weather forecaster Meteorologix LLC
of Woburn, Massachusetts said today. Coffee futures reached the
highest in a month last week on speculation that frost would
damage trees.


Read more at Bloomberg Commodities News

UPDATE 1-Canadian regulator approves Nortel settlement

(Reuters) - The company will pay C$1 million toward the cost
of the Ontario securities watchdog's investigation into its
accounting, but Nortel will not have to pay any monetary
penalty, in part because it cooperated with the commission's
investigation.




A penalty on top of Nortel's remedial costs to date, which
include the costs of outside investigations, restating
financial results and settling class-action lawsuits, would not
serve as an additional deterrent to similar cases, said Wendell
Wigle, chairman of the OSC's three-member panel.


Read more at Reuters.com Government Filings News

Chile plan for surplus fiscally sound, official says

(Reuters) - At the same time, she announced a proposal to raise the
amount national pension funds can invest abroad to 45 percent
of the total from a current 30 percent.




"This government is absolutely committed to price
stability...a lower structural surplus is completely compatible
with long-term fiscal sustainability, it's totally compatible
with macro stability in the short-term and it allows us to
invest in education," Velasco told journalists.


Read more at Reuters.com Bonds News

Platinum, Palladium Drop as Dollar's Gain Erodes Metals' Investment Appeal

(Bloomberg) -- Platinum futures in New York fell the
most in two months as gains in the dollar reduced the appeal of
precious metals as an alternative asset. Palladium dropped,
erasing earlier gains.

The dollar rose against the euro and the yen today. The
U.S. currency has strengthened versus the euro for three
consecutive weeks, the longest rally since October. Before
today, platinum had gained 15 percent this year, partly on
investor demand.


Read more at Bloomberg Commodities News

Russian Government Is Split on Whether to Invest Oil Windfall in Stocks

(Bloomberg) -- Russia's government is divided over
whether to invest part of its $113.7 billion oil fund in the
domestic stock market and help prop up shares of state-controlled
companies.

Finance Minister Alexei Kudrin today said the government won't
spend the reserves to support individual shares. President Vladimir
Putin yesterday asked ministers to consider spending public money
on Russian equities after the Micex stock index fell 2.8 percent
since Jan. 1, following gains every year since 2000.


Read more at Bloomberg Stocks News

UPDATE 2-Fed's Lacker: holding rates may not curb inflation

(Reuters) - Asked during an interview on CNBC.com whether the current
level of the overnight fed funds rate, at 5.25 percent, would
lead to lower inflation in the future, he voiced doubts.




"The current funds rate now has us on track for that," he
said. "What it needs to do later this year is a tougher
question. So, if you ask me if holding this funds rate constant
for the next two years going to get us there, my guess is
not," he said.


Read more at Reuters.com Bonds News

U.S. Stocks Are Little Changed; MGM, Hoteliers Gain as Staples Declines

(Bloomberg) -- Speculation of acquisitions in the
casino industry boosted hotel stocks, while lower-than-expected
results from retailers left the U.S. stock market little changed.

MGM Mirage surged the most since 1989 after billionaire Kirk
Kerkorian said he wants to buy the Bellagio Hotel & Casino from
the world's second-largest casino company. Retailers declined for
a second day after Staples Inc. tempered its earnings forecast
and AutoZone Inc. reported sales missed analysts' estimates.


Read more at Bloomberg Stocks News

Loan deal to give Mozambique 85 pct of Cahora Bassa

(Reuters) - Two European banks will lend Mozambique $700 million so that it can pay off a colonial-era debt to Portugal and take a majority stake in the giant Cahora Bassa hydro-electric dam (HCB), the Energy Ministry said on Tuesday.

France's Calyon Bank and Portugal's BPI will lend Mozambique the money to repay the Portuguese government for building the Zambezi river dam during its colonial rule over the southern African country, a ministry news release said.


Read more at Reuters Africa

US stocks flat as casinos gain but retailers dip

(Reuters) - U.S. stocks were little changed on Tuesday as falling retail stocks offset gains in shares of casino operators after investor Kirk Kerkorian expressed interest in buying two Las Vegas properties from MGM Mirage Inc.

Kerkorian's Tracinda Corp. also said on Monday it would explore options for its majority stake in MGM. The company said it planned to enter talks to purchase MGM's Bellagio Hotel and City Centre properties. For details see ID:nN21358342. The announcement sent shares of several hotel and casino chains higher.


Read more at Reuters Africa

European 2007 profit estimates rise after solid Q1

(Reuters) - While a sluggish U.S. economy has weighed on global economic
growth rates and helped push the dollar lower against the euro,
the collapse in European profitability feared by some
strategists has not occurred.




Consensus estimates for 2007 earnings per share growth have
risen to 7.8 percent for companies in MSCI's European index, up
from 7.2 percent earlier this month, according to data compiled
by UBS.


Read more at Reuters.com Economic News

American Eagle profit up, but outlook misses

(Reuters) - Net profit was $78.8 million, or 35 cents a per share, in line with analysts' average estimate as compiled by Reuters Estimates, compared with $64.2 million, or 28 cents per share, a year earlier.




The company also authorized the repurchase of 23 million shares.


Read more at Reuters.com Business News

LBOs Attack Finance Company Bonds; Debt of SLM, American Express Unravels

(Bloomberg) -- Finance company bonds, the fastest-
growing part of the corporate debt market, are no longer a haven
from leveraged buyouts.

Bondholders were ambushed by last month's $25 billion
takeover of SLM Corp., the student loan company known as Sallie
Mae. They had assumed that companies whose profits depend on
investment-grade credit ratings couldn't afford to pile on debt.


Read more at Bloomberg Bonds News

EU mergers and takeovers (May 22)

(Reuters) - APPROVALS AND WITHDRAWALS:




-- Vivendi's


Read more at Reuters.com Mergers News

European Two-Year Yield Approaches Five-Year High as Confidence Increases

(Bloomberg) -- European two-year note yields held
near a five-year high after indexes of German investor and
Italian consumer confidence rose by more than forecast in May.

Two-year note yields touched the highest since June 2002
after European Central Bank policy makers yesterday warned
inflationary pressures in the euro region persist. Futures prices
show investors are raising bets the ECB will lift rates at least
twice more in 2007.


Read more at Bloomberg Bonds News

Milk woes pressure Dean's stock

(Reuters) - On May 3, the No. 1 U.S. dairy processor and distributor warned that its 2007 earnings would face headwinds due to higher raw milk prices and an expected oversupply of organic milk.




The stock, which fell about 10 percent that day, had had a slow but steady, ride higher for the past eight years and traded as high at $49.51 in March. The shares opened on Tuesday at $31.89.


Read more at Reuters.com Hot Stocks News

Nike and Foot Locker team up on basketball stores

(Reuters) - The companies expect to convert an existing Foot Locker location in New York's Harlem neighborhood into the first House of Hoops store, which should open in early 2008. Besides New York, the companies expect to open stores in Chicago, Houston, Las Vegas and Los Angeles. Most of the stores will be converted Foot Locker locations, the companies said.




Read more at Reuters.com Business News

Treasury Two-Year Yield Trades Near Three-Month High on Economic Outlook

(Bloomberg) -- Treasury two-year yields traded near
a three-month high on expectations reports this week will show
the U.S. economy is gathering momentum.

Yields on the notes, the most sensitive to changes in
interest-rate expectations, have risen 8 basis points in the
past week, as traders reduced bets the Fed will cut interest
rates. U.S. economic growth will quicken, Federal Reserve Bank
of Chicago President Michael Moskow said yesterday.


Read more at Bloomberg Bonds News

EU approves Vivendi Universal's buy of BMG unit

(Reuters) - BRUSSELS, May 22 - Vivendi's , making it the world's largest music publisher.


Read more at Reuters.com Mergers News

Indigo Books trims quarterly loss as revenue grows

(Reuters) - The Canadian book retailer lost C$4.2 million in the quarter ended March 31, compared with a loss of C$7.4 million a year earlier. The company didn't provide per-share figures.



Revenue for the quarter was C$201.9 million, up 6.2 percent from a year earlier.


Read more at Reuters.com Market News

Growthpoint says in talks

(Reuters) - South Africa's biggest listed property company, Growthpoint Properties Ltd, said on Tuesday it was in unspecified talks.

"Growthpoint has entered into discussions, which, if successfully concluded, may have a material effect on the price at which their linked units trade on the JSE Limited," a statement said, giving no further details.


Read more at Reuters Africa

U.S. Stock-Index Futures Rise; MGM, Fremont General Shares Lead Advance

(Bloomberg) -- U.S. stock-index futures climbed after
billionaire Kirk Kerkorian said he will consider ``alternatives''
for his 56 percent stake in MGM Mirage, reinforcing speculation
that mergers and acquisitions will keep boosting share prices.

MGM, the world's second-largest casino company, surged after
Kerkorian's Tracinda Corp. said it plans to buy two of the
company's Las Vegas properties and is studying options including
a ``financial restructuring'' for the rest of the company.
Fremont General Corp. jumped after the California bank ordered by
regulators to stop writing mortgages said it will sell its
commercial real-estate unit.


Read more at Bloomberg Stocks News

Agrium buys retail outlets in Kansas, Oklahoma

(Reuters) - Agrium will acquire the fixed retail storage and distribution assets and enter into an agreement for associated long-term leases for land. ADM will continue to own and manage the grain assets at these locations.




Although financial terms of the deal were not provided, Agrium said it would be immediately beneficial to its earnings.


Read more at Reuters.com Mergers News

U.S. 2-Year Note Yields Near Three-Month High on Bets Fed to Stay on Hold

(Bloomberg) -- U.S. two-year Treasuries yields held
near a three-month high on expectations reports this week will
show the economy is gathering pace, giving the Federal Reserve
scope to keep interest rates on hold.

Yields on the notes, the most sensitive to changes in
interest-rate expectations, have risen 8 basis points in the past
week, as traders took off bets the Fed will cut interest rates.
U.S. economic growth will continue to quicken, said Federal
Reserve Bank of Chicago President Michael Moskow.


Read more at Bloomberg Bonds News

US STOCKS-Futures point higher; casino stocks set to gain

(Reuters) - Shares of MGM Mirage jumped 14 percent in extended trading
on Monday after Kerkorian's Tracinda Corp. said it would
explore options for its majority stake in MGM and enter talks
to purchase the casino company's Bellagio Hotel and City Centre
properties. For details, see [ID:nN21358342].




"That's certainly going to spark debate about valuations in
the gaming-hotel-casino complex," said Arthur Hogan, chief
market analyst at Jefferies & Co. in Boston. "That will open
floodgates for other interesting possibilities."


Read more at Reuters.com Bonds News

Tech Data quarterly net income falls

(Reuters) - Excluding restructuring costs and other special items, the
company reported earnings from continuing operations of 33 cents
a share. Analysts had expected a profit of 40 cents a share,
according to Reuters Estimates.




Read more at Reuters.com Market News

Germany's DAX Index Rises, Led by Deutsche Telekom, Hypo Real Estate

(Bloomberg) -- German stocks rose, led by Deutsche
Telekom AG on speculation Blackstone Group LP might push the
region's largest phone company to sell its U.S. business.

Hypo Real Estate Holding AG, the mortgage bank spun off
from HVB Group, and Bayer AG, the country's biggest drugmaker,
also gained.


Read more at Bloomberg Stocks News

Gold May Fall as Dollar Extends Gain Against the Euro; Silver Is Steady

(Bloomberg) -- Gold may decline in London as the
dollar extended gains against the euro, reducing demand for the
metal as an alternative investment. Silver was little changed.

The price of gold has dropped for two consecutive weeks as
the dollar climbed for three weeks against the euro. Investment
in StreetTracks Gold Trust, the biggest fund for gold on the New
York Stock Exchange, dropped 3.5 percent in two days last week,
according to the Web site of Exchange Traded Gold.


Read more at Bloomberg Commodities News

EMI Group, Grohe Holding: European Credit-Default Swap Market Movers

(Bloomberg) -- The risk of owning European corporate
bonds fell today, according to traders in the credit-default
swaps market.

Contracts based on 10 million euros ($13 million) of debt
included in the iTraxx Crossover Series 7 Index fell 2,000 euros
to 193,000 euros, according to JPMorgan Chase & Co.


Read more at Bloomberg Bonds News

Corn Falls in Chicago After Crop Conditions Improve; Soybeans, Wheat Drop

(Bloomberg) -- Chicago corn futures declined after a
government report showed the U.S. crop is in better shape than a
year ago when farmers produced the third-biggest harvest on
record. Wheat and soybean futures also traded lower.

About 78 percent of the crop was in good or excellent
condition as of May 20, up from 66 percent a year ago, the U.S.
Department of Agriculture said yesterday in its first rating of
this year's crop. Corn is the country's biggest crop, valued at a
record $33.8 billion in 2006, government figures show.


Read more at Bloomberg Commodities News