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U.S. producer prices fell in May after two month of solid gains, but the decline was not enough to change perceptions that inflation pressures are steadily creeping up. The Labor Department said on Friday its producer price index for final demand slipped 0.2 percent after advancing in April by 0.6 percent, which was the largest gain in 1-1/2 years. Economists, who had expected producer prices to edge up, saw the decline as a correction after gains in March and April, and said it did not change their view that prices were firming.   true       "The net result is a pick-up. The net strengthening makes the modest acceleration in the more important consumer inflation measures more credible," said Jim O'Sullivan, chief U.S. economist at High Frequency Economics in Valhalla, New York. The government revamped the PPI series at the start of the year to include services and class="mandelbrot_refrag"> construction . Big swings in prices received for trade servi

U.S. consumer sentiment fell in June as views by consumers with the lowest incomes soured, a survey released on Friday showed. _0"> The Thomson Reuters/University of Michigan's preliminary June reading on the overall index on consumer sentiment came in at 81.2, down from 81.9 the month before. It was below the median forecast of 83.0 among economists polled by Reuters.   true       "The change from May was too small to indicate a significant loss in sentiment," survey director Richard Curtin said in a statement. "The small month-to-month variations aside, the main finding from the recent surveys is that consumers have maintained their expectations at reasonably favorable levels for the past six months." The survey's barometer of current economic conditions rose to 95.4 from 94.5 and was below a forecast of 95.7. The survey's gauge of consumer expectations slipped to 72.2 from 73.7, and missed an expected 74.6. The survey's one-year

British class="mandelbrot_refrag"> construction output grew faster than previously thought in the first quarter, new figures showed on Friday, but could slow in the next three months, particularly after the government took steps to cool the class="mandelbrot_refrag"> housing market . Finance minister George Osborne said on Thursday that he would give the Bank of England stronger powers to curb mortgage lending, while BoE Governor Mark Carney said interest rates could rise sooner than financial markets expect. The comments sent sterling and short-dated British government bond yields soaring and caused shares to plunge, with housebuilders particularly hard hit. Some 1.7 billion pounds ($2.85 billion) has been wiped off the value of the six housebuilders and two property groups.   true       Economists say Osborne's announcement means the Bank may adopt a more direct approach when trying to curb mortgage lending. It is expected to announce more contro

The U.S. economic recovery should accelerate in coming months as an energy boom, steadily falling unemployment and a rebound in investment push growth to its fastest pace in a decade, the Organization for Economic Cooperation and Development said on Friday. In its latest overview of the U.S. class="mandelbrot_refrag"> economy , the Paris-based group said U.S. gross domestic product would expand 2.5 percent this year, a touch below a forecast it released last month. But it maintained its 3.5 percent growth projection for next year, which would be the strongest advance since 2004.   true       The OECD is more optimistic on U.S. growth than most private forecasters and some other international organizations, including the World Bank, which looks for growth in 2015 of only 3.0 percent. The OECD said it saw several positive trends converging to make the recovery faster, more entrenched and more driven by private demand. Low energy prices and continued low borrowing cos

The owner of Univision Communications Inc [UVN.UL] have recently held preliminary talks about selling the Spanish-language broadcaster with class="mandelbrot_refrag"> CBS Corp ( id="symbol_CBS.N_0"> CBS.N ), class="mandelbrot_refrag"> Time Warner Inc ( id="symbol_TWX.N TWX.N ) and other media companies, the Wall Street Journal reported, citing people familiar with the matter. _0"> The talks, however, appear to have gone nowhere, the people said, citing the $20 billion Univision's owners are seeking for company as an issue. ( r.reuters.com/xew99v ) _1"> Univision spokeswoman Monica Talan said the company does not comment on rumors. Univision is based in the United States, and owned by Univision Communications Inc.   true       CBS representatives declined to comment on the report, while representatives for class="mandelbrot_refrag"> Time Warner did not immediately respond to a request for comment out

The U.S. Senate Judiciary Committee's antitrust panel will hold a hearing on June 24 to examine the proposed purchase by class="mandelbrot_refrag"> AT&T ( id="symbol_T.N_0"> T.N ) of DirectTV ( id="symbol_DTV.O DTV.O ), the committee said on Thursday. _0"> The House of Representatives Judiciary Committee will hold its hearing on the same day to discuss plans by class="mandelbrot_refrag"> AT&T , the No. 2 U.S. cellular operator, to buy the largest U.S. satellite TV provider for $48.5 billion. _1"> AT&T has said that it wanted to buy DirectTV in order to offer consumers access to video in a variety of media and to give the company scale to compete with larger cable competitors.   true       The deal is one of three roiling the cable and wireless landscape. The other two are Comcast's ( id="symbol_CMCSA.O_2"> CMCSA.O ) $45.2 billion bid for class="mandelbrot_refrag"> Time War

The European Bank for Reconstruction and Development expects to start talks on building stakes in Ukrainian banks in the next few months as it looks to ensure that Ukraine's financial system does not rupture in the wake of tensions with Russia. In an interview with Reuters, Francis Malige, the EBRD's new head for Eastern Europe and the Caucasus, said the situation in class="mandelbrot_refrag"> Ukraine looked to have stabilized in recent weeks, although it was still far too early for optimism. The EBRD's latest forecasts, issued in May, have Ukraine's class="mandelbrot_refrag"> economy shrinking 7 percent this year.   true       "We don't see at this stage an element that should push us to revise them in any direction," Malige said. "If I was a rating agency I would say it's not on negative watch, but it's not on positive watch either." He said the EBRD's involvement in a big road building project, e

Demand for shares in the initial public offering of renewable energy firm Abengoa Yield Plc was $10 billion, more than 16 times what was on offer, the chief executive of Spanish parent company Abengoa told Reuters on Friday. _0"> The class="mandelbrot_refrag"> banks handling the share sale would sell a greenshoe package of 3.727 million shares in the coming hours, CEO Manuel Sanchez Ortega said by telephone from New York. The shares priced earlier on Friday at $29 per share, valuing Abengoa Yield at around $2.32 billion. (Reporting by Jose Elias Rodriguez; Writing by Fiona Ortiz ; Editing by Sonya Dowsett)   true      

Greece's fourth-biggest lender Alpha Bank is close to clinching a deal to buy Citibank's class="mandelbrot_refrag"> retail operations in class="mandelbrot_refrag"> Greece , two Greek banking sources told Reuters on Thursday. _0"> Greece's debt crisis has prompted foreign class="mandelbrot_refrag"> banks , including France's Credit Agricole and Societe Generale, to sell local units to Greek banks in recent years. "We're close," said one banking source who spoke on condition of anonymity. "There are just some formalities left."   true       Greece's bank bailout fund, the HFSF, a majority owner of Alpha Bank with a 69.9 percent stake, has approved the deal, a second source told Reuters. "We have given the green light," the source said. Greece's top four class="mandelbrot_refrag"> banks control about 90 percent of its banking market after a wave of consolidati

class="mandelbrot_refrag"> China and Britain will sign business deals worth at least $30 billion next week during a visit to London by China's Premier Li Keqiang, the Chinese ambassador to Britain said on Friday. _0"> "The total value may be record-breaking," Liu Xiaoming, China's ambassador to Britain, told a news conference in London, saying that over 40 separate agreements whose total value was at least $30 billion would be signed. The deals would cover a range of sectors, including energy, education and class="mandelbrot_refrag"> finance , he added. "This visit is a priority to class="mandelbrot_refrag"> China and the UK. Expectations are very high," he said, saying Li would be joined by over 200 Chinese business leaders.   true       The two sides will discuss possible Chinese investment in Britain's planned HS2 high-speed rail network linking the north of England with London and in its nuclea

Japan's Mitsubishi Heavy Industries is considering taking a direct stake in French class="mandelbrot_refrag"> engineering group Alstom as part of an offer with Germany's Siemens, two French newspapers said on Thursday. _0"> Financial daily Les Echos said Mitsubishi is considering buying part of French Bouygues's 29 percent stake in Alstom and would also buy Alstom's steam turbines while Siemens would take over its gas turbines. At a later stage, after an expected offer for Alstom on June 16, Siemens would contribute its transport assets to Alstom, which would remain a listed company with activities in power grids, wind turbines and transports, les Echos wrote.   true       Le Figaro said Mitsubishi would propose an alliance with Alstom modeled on the Renault-Nissan alliance, which would involve Mitsubishi taking a minority stake in Alstom's power activities (excluding grids) or even buying part of Bouygues's stake. The paper said Siem

The world's biggest would-be drugs merger hit a wall last month but speculation about smart ways that Pfizer could yet seal a deal with AstraZeneca remains intense. Even as talks fell apart last month, some in Pfizer's camp remained optimistic the transaction could be revived - and certain AstraZeneca advisers have not ruled out renewed talks. Under British takeover law, the UK firm can approach Pfizer at the end of August to discuss a sweetened bid, or Pfizer can try again in November. While the most obvious method for Pfizer to win AstraZeneca around might seem to be more cash, some class="mandelbrot_refrag"> hedge funds think the U.S. firm could structure payouts by tying them to the performance of key AstraZeneca drugs.   true       A so-called contingent value right, or CVR, was a winning formula for class="mandelbrot_refrag"> Sanofi in its 2011 battle for Genzyme and the tradeable product - promising additional payouts once future benchm

(The following statement was released by the rating agency) Money market fund outflows from Credit Suisse were only moderate in May following its guilty plea to helping US clients evade tax, Fitch Ratings says. Money fund flows are driven by various factors, including pricing, and can react to headline risk either by reducing exposures or by shortening maturities. class="mandelbrot_refrag"> Banks do not rely on these short-term funds and in most instances place deposits from the money funds with the Federal Reserve.   true       US prime money fund allocations to Credit Suisse fell 8% in May compared to relatively stable total prime fund assets, according to data from Crane. The monthly decline is higher than the average monthly variance of 4.8% for Credit Suisse's money fund exposures over the previous six months. But the exposures are still slightly above the end-2013 level, so the overall fall is not material. The bank was still one of the top 15 hel

When he became Argentina's class="mandelbrot_refrag"> economy minister late last year, many in the business community feared Axel Kicillof, who was once described by a critic as a "flaming Red Marxist," might plunge Latin America's No. 3 economy deeper into isolation in the name of ideology. Instead, the enigmatic scholar who previously lambasted foreign firms for "looting" the country, has in a few months resolved some of Argentina's long-running disputes with companies and creditors, in a bid to attract investment back into the country. Deals with the Paris Club of creditor nations to pay back almost $10 billion in debt and with Spanish oil major Repsol to compensate it for the seizure of energy company YPF have sent Argentine bonds and equities climbing as investors show renewed confidence in a country that has been cut off from global credit class="mandelbrot_refrag"> markets since a 2001/02 default.   true       Th

Alpha Bank, Greece's fourth-biggest lender by assets, said on Friday it had agreed to buy Citibank's loss-making class="mandelbrot_refrag"> retail operations in class="mandelbrot_refrag"> Greece for 2 million euros ($2.72 million), the latest deal in the sector's consolidation. Greece's debt crisis has hammered its banking industry, prompting foreign players, including Credit Agricole, Societe Generale and Portugal's Millennium bcp , to sell local units to Greek lenders in recent years.   true       Hit by a sovereign debt restructuring and rising loan impairments during a deep six-year economic slump, the industry has consolidated down to four big players after a wave of acquisitions and the winding down of non-viable banks. The fortunes of National, Piraeus, Eurobank, and Alpha, which now control more than 90 percent of the banking market, have begun to improve after two recapitalisations and regained capital market access. On Fr

Following are terms and conditions _0"> of a bond priced on Friday. Borrower Export Development Canada, Full faith and credit of Her Majesty in Right of Canada (EDC) Issue Amount $1.0 billion Maturity Date August 19, 2019   true       Coupon 1.75 pct Issue price 99.682 Reoffer price 99.682 Yield 1.815 pct Spread Flat Underlying govt bond Mid-Swaps, equivalent to 13.1 basis points Over the CT5 Payment Date June 19, 2014 Lead Manager(s) Royal Bank of Canada, Bank of America ML, BNP Paribas and Goldman Sachs International _0"> Ratings Aaa (Moody's) _1"> Listing Lux _2"> Full fees Undisclosed _3"> Denoms (K) 5 _4"> ISIN US30216BFA52 _5"> _6"> _7"> For ratings information, double click

German bonds recovered after an earlier fall on Friday, as investors shrugged off worries that a rates rise in the UK would have a knock on effect for class="mandelbrot_refrag"> euro zone government borrowing costs.   true       Bund futures, the most actively traded securities in class="mandelbrot_refrag"> euro zone bond markets, initially dropped as much as 43 ticks at Friday's open after Bank of England Governor Mark Carney said UK interest rates could rise sooner than financial markets expect. However, by mid-morning, Bund futures made a full reversal, climbing to daily highs of 145.63, 37 ticks up on the day. Strategists said data confirming the euro zone's alarmingly weak inflation served as a reminder that the path of ECB policy had completely diverged from its peer across the channel. "These deflation pressures show the ECB will keep rates low for a very long time, which is the most important thing for investors," said Christ

The Brazilian central bank's IBC-Br economic activity index rose 0.12 percent in April from March in seasonally adjusted terms, the bank said on Friday. _0"> The median estimate in a Reuters survey of 19 analysts was for 0.0 percent growth. Economic activity growth in March was revised up to 0.05 percent growth from a previously reported drop of 0.11 percent, according to central bank data. The index, a gauge of activity in the class="mandelbrot_refrag"> farming , industry and services sectors, dropped a non-seasonally adjusted 2.29 percent over the same month a year ago. (Reporting by Alonso Soto Editing by W Simon)   true      

Japanese Prime Minister Shinzo Abe unveiled a plan on Friday to cut the corporate tax rate below 30 percent in stages to help pull the class="mandelbrot_refrag"> economy out of two decades of sluggish growth and deflation.   true       Investors have been scrutinising whether class="mandelbrot_refrag"> Japan can substantially lower the corporate tax rate - among the highest in the world - to spur growth in the world's third-largest class="mandelbrot_refrag"> economy . Abe also needs to strike a delicate balance between stimulating growth and reining in snowballing public debt, twice the size of its $5 trillion economy. The corporate tax cut is a major issue to be included in the government's key fiscal and economic policy outline, which will be finalised around June 27 along with a detailed "growth strategy" of structural reforms. "Japan's corporate tax rate will change into one that promotes growth," Abe t

U.S. Secretary of State John Kerry said on Friday Iraqi Prime Minister Nuri al-Maliki should do more to put sectarian differences aside in his country. _0"> "Prime Minister Maliki and all of Iraqi leaders need to do more to put sectarian differences aside," Kerry said at a news conference with British Foreign Secretary William Hague. (Reporting by Arshad Mohammed ; editing by Stephen Addison )

The following financial services industry appointments and departures were announced on Friday. To inform us of other job changes, email to moves@thomsonreuters.com. UBS AG The Swiss bank appointed Jerry Marcus, a former Bank of America class="mandelbrot_refrag"> Merrill Lynch banker, as a vice chairman of its Americas investment bank, according to an internal memo. The bank said Marcus, who previously headed BofA's class="mandelbrot_refrag"> retail class="mandelbrot_refrag"> investment banking group, would focus on bolstering UBS's work servicing retailers when he joins in September.   true       RBC WEALTH MANAGEMENT The division of the Royal Bank of Canada said it hired a class="mandelbrot_refrag"> Morgan Stanley executive director to lead its new southern region complex in Atlanta. Christopher Anderson joined RBC on Monday after 20 years at Morgan Stanley, where he was executive director and regional busines

A senior U.S. Treasury official on Friday rejected proposals to recapitalize class="mandelbrot_refrag"> Fannie Mae and class="mandelbrot_refrag"> Freddie Mac , saying it would take at least 20 years to make sure they were adequately funded and that in the meantime taxpayers would potentially be on the hook. _0"> In remarks prepared for delivery to a housing conference, Treasury Under Secretary Mary Miller repeated the Obama administration's call for winding down the two government-controlled mortgage class="mandelbrot_refrag"> finance firms. "Critics of reform would suggest that we can simply recapitalize the GSEs and avoid difficult decisions around creating a new system," she said. "Even if truly rehabilitating the GSEs were possible, recapitalizing them adequately would take at least 20 years." (Reporting by Timothy Ahmann; Editing by Chizu Nomiyama )   true      

Investors braced on Friday for a UK interest rate hike later this year, pushing sterling to five-year highs and hurting property class="mandelbrot_refrag"> stocks , after the head of the Bank of England said rates may rise sooner than class="mandelbrot_refrag"> markets predict. Governor Mark Carney's surprisingly stark warning late on Thursday prompted investors to bring forward expectations for a first BoE rate hike by nearly four months, to December from the first quarter of 2015.   true       Sterling's trade-weighted index posted its biggest one-day rise in four months, hitting 5 1/2-year highs. Short-dated UK government bond yields were on track for their biggest daily gain in more than three years. A rate hike by the end of 2014 is likely to come at least six months before the U.S. Federal Reserve tightens policy. It would contrast sharply with the European Central Bank, which cut rates last week and is likely to ease policy in the coming