Slip in Europe as inflation, rate woes gnaw

(Reuters) - A stream of sturdy economic data also convinced investors that the Federal Reserve would refrain from cutting interest rates in the foreseeable future.




"I don't think one could argue the state of the bond markets is stable as yet so we are still seeing the general uncertainty on global inflation, with fuel prices in particular, and central bank uncertainty that's still prevailing sentiment at this moment in time," said Andre de Silva, global deputy head of bond strategy at HSBC in London.


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Vattenfall Cuts Power Capacity at Ringhals-4 Reactor in Sweden After Leak

(Bloomberg) -- Vattenfall AB, the Nordic region's
biggest utility, reduced power capacity at its Ringhals-4
nuclear reactor because of leakage in a generator, the company
said in a statement to the Nord Pool ASA power exchange.

The reduction began at 1:52 a.m. local time and capacity
was cut by half to 453 megawatts, Vattenfall said. The duration
of the failure is unknown, it said.


Read more at Bloomberg Energy News

China's Stocks Gain, Erasing Losses in Volatile Trade, as Savings Pour In

(Bloomberg) -- China's stocks rose for a sixth
straight day, erasing earlier losses, as investors shrugged off
concern that accelerating inflation will trigger further
increases in interest rates.

Shanghai Automotive Co., China's largest carmaker, and 19
other stocks on the index rose by the 10 percent daily limit.
Jiangxi Copper Co. jumped on concern that possible strikes at
mines in Chile, the world's largest source of the metal, and
Mexico will cause further gains in the price of copper.


Read more at Bloomberg Stocks News

U.K. FTSE 100 Index Erases Losses, Led by Rolls-Royce; ICI Shares Climb

(Bloomberg) -- U.K. stocks erased earlier losses,
paced by Rolls-Royce Group Plc, Imperial Chemical Industries Plc
and Johnson Matthey Plc.

The benchmark FTSE 100 Index gained 6.10, or 0.1 percent, to
6573.60 in London at 9:14 a.m. The FTSE All-Share Index added
2.89, or 0.1 percent, to 3396.83. Ireland's ISEQ Index rose 3.67
to 9482.28.


Read more at Bloomberg Stocks News

Hungarian Inflation Slows, Signaling Central Bank May Cut Interest Rates

(Bloomberg) -- Hungary's inflation rate fell for a
second month in May, giving central bankers more room to cut its
benchmark interest rate, the highest in the European Union.

The annual rate declined to 8.5 percent from 8.8 percent in
April, topping the 8.3 percent median forecast of nine economists
surveyed by Bloomberg. Prices rose 0.8 percent from April, while
the core inflation rate, excluding volatile food and energy costs,
was 0.2 percent for the month and 5.7 percent for the year.


Read more at Bloomberg Emerging Markets News

Mitsui, Marubeni agree to consolidate LPG business

(Reuters) - Mitsui and Marubeni, the second and fifth-biggest trading
companies, said they aim to consolidate wholesale LPG operations
in April 2008 and their distribution networks in April 2009 to
cut costs and survive competition.




The two firms plan to sign the agreement in October.


Read more at Reuters.com Mergers News

UPDATE 1-Arcelor Mittal says to buy back 27 mln shares

(Reuters) - Arcelor Mittal said the new buy-back program was designed to
offset the 27 million shares it will issue to acquire the shares
it does not already own in the unit.




The steel group said it would launch the buy-back program
immediately after the completion of another existing $590
million buy-back program.


Read more at Reuters.com Mergers News