China to become world's No.2 gold producer: miner

(Reuters) - Domestic demand was seen in line with production at 260 tonnes this year, supported by the jewelry sector, Wu Junyun, vice general manager of the international trading arm of the China National Gold Group Corp., told reporters on the sidelines of a conference in Shanghai.




China's gold output rose 14 percent in the first four months of this year to 77.75 tonnes, extending a 7 percent increase in 2006 when it hit a record of 240 tonnes, data from the China Gold Association showed.


Read more at Reuters.com Business News

Yen falls broadly as investors hunt for yields

(Reuters) - The yen fell broadly on Friday, posting sharp losses against high-yielding currencies as rising global interest rates prompted Japanese investors to dump the yen and buy more foreign assets.

The yen slipped even as a spike in bond yields pushed most stock markets in Asia down more than 1 percent, and traders were bracing for a yen recovery if investors cut back in risky positions like carry trades on a further drop in European shares.


Read more at Reuters Africa

Bank of England May Need to Move Faster to Contain `Sticky' U.K. Inflation

(Bloomberg) -- The Bank of England, which left
interest rates unchanged yesterday, may have to move faster to
curb the U.K.'s worst bout of inflation in a decade.

Manufacturers' optimism about their pricing power rose to a
12-year high in May, retailers are confident they can push
through their biggest price increases since 1998 and gains in
consumer prices have exceeded the bank's 2 percent target for the
past year. That's fanning concern that inflation is becoming
entrenched in the economy even after four rate increases in the
past year.


Read more at Bloomberg Currencies News

World Leaders Look Beyond Bush Presidency to Set Greenhouse Gas Limits

(Bloomberg) -- President George W. Bush succeeded
in side-stepping mandatory greenhouse gas emission caps at this
week's Group of Eight meeting. He didn't prevent other
countries from laying the groundwork for carbon dioxide limits
once he's gone, political observers and environmentalists say.

World leaders ``most definitely are looking beyond this
administration to get any kind of hard cap on carbon,'' said
Christine Todd Whitman, Bush's first administrator of the
Environmental Protection Agency.


Read more at Bloomberg Energy News

U.K. Median Pay Increases Match The Fastest Pace Since 2001, IDS Says

(Bloomberg) -- U.K. wage negotiators agreed pay
increases matching the fastest pace since 2001 in the three months
through May, Incomes Data Services Ltd. said.

The median salary deal showed a 3.5 percent gain from a year
ago, matching the reading for the quarter through April, the
London-based researcher said in a statement today. The May report
covers 191 pay settlements affecting 1.4 million workers. One-
third of the pay increases were of 4 percent or more.


Read more at Bloomberg Bonds News

Singapore's Shares Slide the Most in Seven Weeks; SingTel, Venture Drop

(Bloomberg) -- Singapore's stock index dropped the
most in seven weeks on concern rising global interest rates will
slow economic growth. Singapore Telecommunications Ltd. led the
decline by the city-state's biggest companies.

``Higher interest rates will take more purchasing power
from consumers, curb corporate investments, and slow global
growth,'' said Thue Isen, who helps manage $1 billion in Asian
equities at Bankinvest Group in Singapore. ``That's negative for
an economy such as Singapore's, which is very open and dependent
on the world economy.''


Read more at Bloomberg Stocks News

Asian Stocks Drop for Second Day on Interest Rate Concerns; Toyota Falls

(Bloomberg) -- Asian stocks retreated for a second day
on concern rising global interest rates will curb consumer
spending and corporate profits.

All 10 industry groups of the Morgan Stanley Capital
International Asia-Pacific Index retreated, sending the regional
benchmark to its biggest loss in seven weeks. Toyota Motor Corp.,
which gets almost two-thirds of its revenue from overseas sales,
fell after U.S. bond yields jumped, suggesting traders expect
interest rates to climb in the region's biggest export market.


Read more at Bloomberg Stocks News

Australian Stocks Fall; Westfield, BHP Slip on Rates Concern, Lower Metals

(Bloomberg) -- Australian stocks fell for a fourth day.
Stocks that rely on U.S. earnings slid, led by Westfield Group, on
concern interest rates may rise in the world's biggest economy.
National Australia Bank Ltd. led declines among banks as bond
yields surged, making their dividends relatively less attractive.

``There's now strong odds global interest rates are on the
rise, which is the last thing equity markets need at the moment,''
said Gerard Minack, a strategist at Morgan Stanley in Sydney. ``If
rates go up that's going to choke up the support for equities.''


Read more at Bloomberg Stocks News

Japan's Notes Drop on Rate Concern; Five-Year Yields at Highest Since 2000

(Bloomberg) -- Japan's government notes slid,
pushing five-year yields to the highest since they were first
sold in 2000, after U.S. Treasuries had the biggest drop in more
than three years on concern global interest rates will rise.

Yields on Japan's five-year notes have climbed more than a
third of a percentage point in the past three months. The yield
premium of five-year U.S. notes over similar-dated Japanese debt
widened over the same period on signs of strength in the world's
biggest economy.


Read more at Bloomberg Bonds News

UPDATE 2-Tyco OKs spin-off of healthcare, electronics units

(Reuters) - The distributions will be made on June 29 and Tyco
International shareholders will receive one share of Covidien
Ltd. and one share of Tyco Electronics for each of their
shares, the company said. The board also approved a
one-for-four reverse split that will become effective once the
dividend distribution is done.




Tyco has said the separation, costing up to $1.6 billion,
will let each company better focus on building value by setting
its own strategy for acquisitions, alliances and use of
resources, while giving investors clearer choices.


Read more at Reuters.com Bonds News

U.S. Treasuries not entering bear phase -Merrill

(Reuters) - "I am not convinced that we are in a cyclical bear market.
It's the normalization of interest rates. I would call it the
unwinding of the Greenspan conundrum. I think that is what is
happening," said David Rosenberg, Merrill Lynch's chief
economist for North America.




The Greenspan conundrum refers to the puzzle surrounding
longer-dated bond yields being lower despite rising short-term
interest rates and inflationary pressures.


Read more at Reuters.com Economic News

China, India, Indonesia, Malaysia, South Korea: 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: State-owned Export-Import Bank of China will sell 10
billion yuan ($1.3 billion) of five-year floating-rate bonds
today. The nation's trade surplus probably grew 50 percent to
$19.5 billion in May from a year earlier, according to the
median estimate of 18 economists surveyed by Bloomberg News. The
trade data is scheduled be released by June 12.


Read more at Bloomberg Bonds News

WRAPUP 1-LatAm markets dive on U.S. inflation fears

(Reuters) - With Brazilian markets closed for a national holiday,
Argentine and Chilean stocks suffered the biggest losses,
falling around 2 percent, while the Colombian peso posted its
largest drop in more than three months.




"The rise in U.S. yields is hitting everybody," said Juan
Jose Resendiz, a stock analyst at Arka brokerage in Mexico
City.


Read more at Reuters.com Bonds News

UPDATE 1-Openwave eyes job cuts, Harbinger extends offer

(Reuters) - The restructuring comes as Harbinger Capital Partners on
Thursday reduced its partial tender offer to acquire control of
Openwave to $7.10 per share to reflect a special dividend the
company said it approved this week. The hedge fund group also
extended its partial tender offer to June 21.




Earlier this week, Openwave rejected the unsolicited
partial tender offer, saying it was inadequate and not in the
best interests of the company and its stockholders. Openwave
also declared a special $100 million cash dividend.


Read more at Reuters.com Mergers News

CBOE says to launch credit default options

(Reuters) - The first round of credit default options will be on auto
industry companies General Motors Corp. , Ford Motor Co.
and Lear Corp. , and homebuilders Hovnanian
Enterprises and Standard Pacific Corp.




CBOE's contracts are cash-settled binary call options that
pay $100,000 when CBOE confirms that a credit event, such as a
default on specified payment obligations, has occurred.


Read more at Reuters.com Bonds News

UPDATE 1-National Semi posts lower quarter net profit

(Reuters) - National said its fiscal fourth-quarter revenue rose 5.8
percent from the preceding quarter, as it cited higher demand
for its power management, audio, amplifier, data converter and
display chips and other products.




National said net income for its fourth quarter ended May
27 fell to $90.1 million, or 28 cents per share, from $118.8
million, or 34 cents per share, a year ago.


Read more at Reuters.com Market News

Treasury 10-Year Note Falls Most in Three Years as Yield Exceeds 5 Percent

(Bloomberg) -- The benchmark 10-year U.S. Treasury
note fell the most in more than three years after New Zealand
unexpectedly raised interest rates, igniting concern other
central banks will respond to faster global growth.

Interest-rate futures and options showed traders who as
recently as December were betting on three quarter-percentage
point rate cuts by the Federal Reserve this year boosted bets on
an increase in borrowing costs. The tumble pushed 10-year yields
above 5 percent for the first time since August.


Read more at Bloomberg Bonds News

Wall Street arbitration stacked against investors: study

(Reuters) - Investors and their lawyers for years have complained the
little guy doesn't get a fair shake from the arbitration
system, blessed by the U.S. Supreme Court two decades ago, when
pursuing complaints about faulty research, unauthorized trades
and other claims against brokers.




Next week Daniel Solin, a lawyer who represents investor
cases against brokers, and Edward O'Neal, an assistant finance
professor at Wake Forest University's Babcock Graduate School
of Management, will unveil the results of a study that they say
shows investors did not fare well when taking on brokers.


Read more at Reuters.com Bonds News

House panel eyes student-loan "redlining"

(Reuters) - Redlining refers to an illegal practice in the home-mortgage business in which banks base lending decisions on what neighborhood the potential borrower lives in, regardless of other qualifications.




California Democratic Rep. George Miller said in a statement he has written to lenders seeking information "to help determine whether the lenders offer less favorable terms to students at predominately minority colleges, such as historically black colleges and universities."


Read more at Reuters.com Government Filings News

U.S. April consumer credit rises $2.6 bln-Fed

(Reuters) - The smaller gain in April follows an upwardly revised March
gain of $14.01 billion that which was originally reported at
$13.46 billion.




April revolving credit, made up of credit and charge card
debt, fell $402.9 million or 0.5 percent, to $887.23 billion,
marking the first fall since a $578 million decline in March
2006.


Read more at Reuters.com Bonds News

RPT-WRAPUP-Teen retailers see slight improvement, cool outlook

(Reuters) - NEW YORK, June 7 - Teen retailers rebounded
slightly in May despite missing Wall Street forecasts, but
analysts said underwhelming growth looms as teens -- and their
parents -- continue to face high gas prices and a cool housing
market.




May sales at stores open at least a year, a key retail
measure known as same-store sales, were boosted by nicer
weather and pent-up demand following a cold and stormy April.


Read more at Reuters.com Market News

Dollar Rises Most in Three Months Against Euro on Yield Premium, Rate View

(Bloomberg) -- The dollar strengthened against the
euro as benchmark Treasury yields rose above 5 percent for the
first time since August and speculation increased that the
Federal Reserve will hold interest rates steady.

The U.S. currency gained the most in three months against
the euro as the extra yield investors earn on 10-year Treasuries
over similar-maturity European debt was the widest in almost two
months. The yen rose against all of the most active currencies
on the worst three-day decline in U.S. stocks since February,
reflecting reduced appetite for risk among investors.


Read more at Bloomberg Currencies News

ECS proposals not in investors' interests-Vodafone

(Reuters) - "The board of Vodafone welcomes an active and open dialogue with its shareholders. However, having taken advice, it believes that implementation of ECS's proposals would not be in the interest of Vodafone's shareholders," the company said in a statement. Investment group Efficient Capital Structures is backed by the former deputy chairman of telecoms equipment maker Marconi, John Mayo.



)


Read more at Reuters.com Mergers News

Cocoa Declines Most Since April as Rains Fall in West Africa, Bolster Crop

(Bloomberg) -- Cocoa in New York fell the most in
six weeks on forecasts for rains in West Africa that may help
the next crop.

Showers and thunderstorms are expected during the next five
days in Ivory Coast and Ghana, the world's biggest cocoa
growers, said Meteorlogix LLC of Woburn, Massachusetts. Rain
fell in the past day, the forecaster said.


Read more at Bloomberg Commodities News

`Sopranos' Finale Spurs Wagers on Tony's Fate; Does Silvio Open His Eyes?

(Bloomberg) -- You can bet Tony will die in the final
episode of ``The Sopranos'' this Sunday. Lots of people are.

With Time Warner Inc.'s cable network HBO airing the final
episode after eight seasons, the gambling Web site Bodog.com is
accepting wagers on whether Tony Soprano, the New Jersey mob boss
played by James Gandolfini, survives efforts by his New York
counterpart, Phil Leotardo (Frank Vincent) to whack him.


Read more at Bloomberg Exclusive News

US indexes fall as bond yields climb higher

(Reuters) - U.S. stocks stumbled on Thursday after benchmark Treasury debt yields rose above 5 percent, taking a toll on rate-sensitive shares like utilities and home builders.

Losses on the S&P and Nasdaq indexes were limited by strength in Apple Inc. and Google Inc., which rose to all-time highs, after positive remarks on tech stocks by television commentator James Cramer.


Read more at Reuters Africa

Wal-Mart May sales lackluster

(Reuters) - The world's largest retailer, which has been struggling with lackluster sales at its U.S. stores, also said sales in its apparel and home businesses continue to be soft.




While it expects to see improvement in these categories beginning in the third quarter, it said "more significant" progress is anticipated during the fourth quarter.


Read more at Reuters.com Business News

Funds seek repayment of Tribune debt over Cubs sale

(Reuters) - Tribune is contesting the default, it said in the filing.




Should the funds prevail in their bid, they could capture a
fast profit.


Read more at Reuters.com Bonds News

SACI Falabella, Antarchile, Embotelladora Andina: Chilean Equity Movers

(Bloomberg) -- Chile's main stock rose for the ninth
time in 10 days, led by forestry and energy holding company
Antarchile SA and retailer SACI Falabella SA.

Chile's IPSA index of 40 stocks advanced 7.38, or 0.2 percent,
to 3298.16 at 9:52 New York time.


Read more at Bloomberg Stocks News

UPDATE 1-U.S. jobless claims down 1,000 to 309,000 last week

(Reuters) - The numbers of U.S. workers signing up for first-time
unemployment benefits slipped by by 1,000 to a seasonally
adjusted 309,000 for the week ended June 2.




"The core story here, though, remains that companies are
not laying people off at the sort of pace that would normally
be expected given the slowdown in economic growth. We are very
curious to see if this can persist as consumption slows
markedly in the face of the surge in gas prices," said Ian
Shepherdson, chief U.S. economist at High Frequency Economics
in Valhalla, New York.


Read more at Reuters.com Economic News

Ross same-store sales rise 1 percent in May

(Reuters) - Analysts, on average, had been expecting the off-price retailer to post a rise of 0.9 percent, according to a Reuters survey.



Total sales during the four weeks ended June 2 rose 9 percent to $450 million, the company said.


Read more at Reuters.com Market News

Merck migraine drug shows promise in clinical trial

(Reuters) - The medicine has already been advanced into late stage
testing for acute treatment of migraine in adults. If it is
eventually approved, it could become the first new class of
migraine treatments on the market since 1991, Merck said.




The company said it remains on track to apply for U.S.
approval of MK-0974 in 2009.


Read more at Reuters.com Government Filings News

U.S. Spirit eyes Airbus plants - source

(Reuters) - FRANKFURT, June 7 - U.S. aircraft fuselage maker Spirit AeroSystems Holdings Inc. is eyeing plants that European planemaker Airbus is selling as part of a restructuring aimed at lowering costs, a person familiar with the matter said.



The Financial Times Deutschland reported earlier that Spirit had expressed interest in four of the six plants for which Airbus is seeking buyers or partners, citing Airbus sources.


Read more at Reuters.com Mergers News

Apple rises on broker, Cramer views

(Reuters) - The stock rose to $125.10 -- a record -- in electronic trade from a close of $123.64.




Read more at Reuters.com Hot Stocks News

UPDATE 1-Stage lowers Q2 view on sales tax holiday weekend shift

(Reuters) - The company said the Texas legislature recently passed a
bill shifting the sales tax holiday weekend from the first
weekend in August to the third weekend of the month.




The shift will move 2 cents per share in earnings and $6
million in sales from its second quarter to its third quarter.


Read more at Reuters.com Market News

UPDATE 1-Biomet accepts sweetened $11.4 bln takeover offer

(Reuters) - The private equity consortium, which includes affiliates
of Blackstone Group, Goldman Sachs Capital Partners, Kohlberg
Kravis Roberts & Co. and TPG, will begin a tender offer by June
14 to acquire all of Biomet's outstanding shares.




Completion of the tender offer is subject to the condition
that at least 75 percent of the Biomet common shares have been
tendered.


Read more at Reuters.com Bonds News

Biomet accepts sweetened takeover bid

(Reuters) - Biomet canceled a June 8 special meeting of shareholders scheduled to vote on the original takeover offer. Last month, Institutional Shareholder Services recommended that Biomet shareholders vote against the original $10.9 billion bid, saying the price was too low.




Read more at Reuters.com Mergers News

Wal-Mart May same-store sales up 1.1 pct

(Reuters) - Wal-Mart had forecast a May same-store sales gain of 1 percent to 2 percent.




The world's biggest retailer said net sales in the four weeks ended June 1 rose 7.7 percent to $28.26 billion.


Read more at Reuters.com Market News

European Government Bonds Slide on ECB Rate Rise, Global Growth Outlook

(Bloomberg) -- European government bonds fell by the
most in three weeks on speculation global economic growth may
quicken, putting pressure on policy makers, including the
European Central Bank, to raise interest rates.

Ten-year bund yields rose to a 4 1/2 year high after New
Zealand unexpectedly lifted rates and Fed Bank of Richmond
President Jeffrey Lacker said U.S. growth will rebound. ECB
President Jean-Claude Trichet said the region's rates are low
enough to support expansion, allowing for further borrowing-cost
increases after lifting them to a six-year high yesterday.


Read more at Bloomberg Bonds News

Pacific Sunwear May same-store sales rise 6.4 pct

(Reuters) - The company said total sales for the four weeks ended June
2 ended rose 10.9 percent to $97.7 million.





Read more at Reuters.com Market News

China's Bonds Fall on Speculation Central Bank Will Raise Interest Rates

(Bloomberg) -- China's government bonds fell, with
the two-year yields rising the most in three months, on
speculation the central bank will increase interest rates to slow
accelerating inflation. The yuan dropped.

The People's Bank of China is ``closely'' monitoring gains
in pork and egg prices and will study economic data for May
before deciding on any changes in borrowing costs, central bank
Governor Zhou Xiaochuan told reporters during a financial
conference in Beijing on June 5.


Read more at Bloomberg Bonds News

Crude Oil Gains Amid Concern U.S. Refineries Aren't Making Enough Gasoline

(Bloomberg) -- Crude oil rose on concern U.S.
refineries aren't making enough gasoline to meet demand during the
summer. The price of gasoline rose after seven days of declines.

U.S. refineries ran at a lower-than-expected 89.6 percent of
capacity last week, down from 91.1 percent the week before, the
U.S. Energy Department said. American demand for motor fuel peaks
during the summer driving season from late May to September.


Read more at Bloomberg Energy News

Cemex says offer for Australia's Rinker unconditional

(Reuters) - Cemex, the world's No. 3 cement maker, said in a statement it had support from owners of 50.34 percent of Rinker shares.



Cemex had extended the deadline for its offer to June 22 from June 8. Last month it lowered the level of acceptances needed for a successful bid from 90 percent to 50 percent.


Read more at Reuters.com Mergers News

Miners, Vodafone lift FTSE, BoE rate decision eyed

(Reuters) - The FTSE 100 of Britain's leading shares edged up 0.3 percent on Thursday as miners and Vodafone boosted the market ahead of the Bank of England's interest rate verdict at 1100 GMT.

Economists expected rates to remain steady at 5.5 percent, although a hike to 5.75 percent is widely expected this year.


Read more at Reuters Africa

Olkiluoto-2 Nuclear Reactor in Finland Halted This Morning, Operator Says

(Bloomberg) -- Teollisuuden Voima Oy, a Finnish
power producer, halted production at its Olkiluoto-2 reactor.

The 860-megawatt unit at Olkiluoto was stopped at 8:55 a.m.
local time today, the plant's operator said in a note
distributed by the Nord Pool ASA power exchange. No further
details were provided.


Read more at Bloomberg Energy News

European Stocks Erase Advance as Ericsson Declines; BBVA, UBS Decline

(Bloomberg) -- European stocks erased gains as
Ericsson AB declined. Banco Bilbao Vizcaya Argentaria SA and UBS
AG led banking shares lower.

The Dow Jones Stoxx 600 Index lost 0.2 percent to 389.32 as
of 8:49 a.m. in London. The Stoxx 50 was little changed at
3886.87, while the Euro Stoxx 50, a measure for the 13 nations
sharing the euro, slid 0.2 percent.


Read more at Bloomberg Stocks News

CORRECTED-UTi Worldwide 1st-quarter net falls

(Reuters) - The Rancho Dominguez, California-based company reported net income of $18.1 million or 18 cents a share for its fiscal 2008 first quarter ending April 30 compared with $19.3 million or 20 cents a share a year earlier.



Wall Street analysts had on average expected earnings per share for the quarter of 16 cents, according to Reuters Estimates.


Read more at Reuters.com Market News

FTSE 100 Stocks Advance, Led by Vodafone; BHP Billiton, DSG Shares Rise

(Bloomberg) -- U.K. stocks advanced, led by
Vodafone Group Plc, the world's largest mobile-phone company.

BHP Billiton paced an increase in shares of mining
companies. DSG International Plc also gained.


Read more at Bloomberg Stocks News

Ahold says looking at small, not big acqusitions

(Reuters) - "We are always looking at small, fill-in acquisitions,"
Moberg told reporters on a conference call, adding that a large
acquisition was not a priority for the retailer.




Belgium's Delhaize , has been cited by analysts as
a potential merger partner for Ahold.


Read more at Reuters.com Market News