Reuters Business Report at 0650 GMT

Published: 04 Jun 2009 22:58:10 PST

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REUTERS BUSINESS REPORT

Friday, June 5, 2009

Sonya Hepinstall and Mathew Veedon +65 6870-3827

0230, 0630 GMT

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0930, 1330 GMT

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(All times GMT) ---------------------------------------------------------------

TOP STORIES

Rio dumps Chinalco for iron ore tie-up with BHP

MELBOURNE - Global miner Rio Tinto dumps plans for a $19.5 billion tie-up with China's Chinalco and agrees to set up an iron ore joint venture with rival BHP Billiton and sell new shares to slash debt (RIOTINTO-CHINALCO/ (WRAPUP 2), expect by 0730, 900 words) + See also: - CHINALCO/ (SNAP ANALYSIS), moved, by Joseph Chaney, Asia Resources Correspondent, 550 words - RIOTINTO-CHINALCO/STEELMAKERS (UPDATE 1), expect by 0800, by Miyoung Kim, 700 words - BHP/IRON ORE (UPDATE 1), moved, by James Regan, 500 words - OZMINERALS/ , moved, 200 words

Japan mulls economic upgrade; U.S. jobs data eyed

TOKYO - The Bank of Japan will consider upgrading its view on the economy later this month in response to improved exports and output, sources say, as markets anxiously await U.S. jobs data that may offer fresh signs the recession is easing (FINANCIAL/ (TOPWRAP 1), pix, tv, graphic, by Leika Kihara, 600 words) + See also: - JAPAN-ECONOMY/ (UPDATE 1), moved, by Leika Kihara, 500 words

MARKETS

Asian shares, oil gain; focus on US jobs data

HONG KONG - Asian shares, oil and higher-yielding currencies rise as positive signals from the latest U.S. weekly job data spark tentative optimism ahead of the crucial monthly employment report (MARKETS-GLOBAL/ (WRAPUP 2), moved, by Rafael Nam, 850 words)

Dollar dips on growing risk appetite, US jobs eyed

TOKYO - The dollar edges down against a basket of major currencies, with investors shifting money to higher-yielding currencies on the view that the recession afflicting the world's major economies is easing (MARKETS-FOREX (UPDATE 2), moved, by Rika Otsuka, 600 words)

Oil rises above $69, buoyed by US jobs data

SINGAPORE - U.S. crude futures rise above $69 a barrel, but trade below seven-month highs hit in the previous session, drawing strength from positive U.S. jobs data, a rally in stock markets and a weaker dollar (MARKETS-OIL (UPDATE 1), moved, by Sambit Mohanty, 500 words)

China Money: Corporate spreads may resume narrowing trend

SHANGHAI - Chinese credit spreads have stabilised in recent weeks after a sudden widening in April and may start to narrow back, as confidence in the economy firms up again -- whetting investor appetite for risk -- and as supply pressures ease in the corporate bond market (CHINA-MARKETS/DEBT, moved, by Karen Yeung, 850 words) + See also: - INDIA-MARKETS/SWAPS, moved, by Saikat Chatterjee, 550 words

ECONOMY

South Korea c.bank downplays recovery talk

SEOUL - South Korea's central bank downplays hopes for an early recovery in Asia's fourth-largest economy, saying a rebound in the first quarter owed almost wholly to fiscal stimulus spending (KOREA-ECONOMY/ (UPDATE 1), moved, by Lee Eun-yul and Seo Eun-kyung, 500 words)

Philippine c.bank signals rate cut, could be last

MANILA - The Philippines central bank governor signals room for another rate cut as inflation eases to an 18-month low, but analysts and markets suggest it could be the last of the cutting spree (PHILIPPINES-ECONOMY/INFLATION (UPDATE 2), moved, by Manolo Serapio Jr., 600 words) + See also: - MALAYSIA-S&P (UPDATE 1), moved, 300 words

Latvian PM: Working on IMF/EU deal, no devaluation

RIGA - Latvian Prime Minister Valdis Dombrovskis repeats his government is not planning a devaluation of the lat currency, fears of which have caused jitters in financial markets (LATVIA-IMF/ (UPDATE 1), moved, 300 words)

COMPANIES

KB Financial eyes $1bln-$3bln in new capital-source

SEOUL - The parent group of South Korea's largest bank Kookmin is seeking to raise up to $3 billion in new capital by around the third quarter, a banking source says, in order to bolster its balance sheet and fund potential acquisitions (KBFINANCIAL (UPDATE 3), expect by 0830, by Kim Yeon-hee, 650 words)

Canon revives new plant as camera sales hold firm

TOKYO - Japan's Canon, the world's largest digital camera maker, revives plans to build a $180 million factory as demand holds firm for its high-end single-lens reflex cameras, lifting its shares 1.6 percent (CANON/ (UPDATE 1), moved, by Mayumi Negishi, 300 words)

Mitsubishi Motors prices electric car at $47,580

TOKYO - Japan's Mitsubishi Motors prices its i-MiEV electric vehicle at $47,580, less than a rival electric car but still far above the price of popular hybrid gas-electric vehicles (MITSUBISHI/ (UPDATE 2), expect by 0800, by Yumiko Nishitani, 500 words)

Kraft Foods upbeat on 2009 China sales

SHANGHAI - Kraft Foods Inc, the world's second-largest food company, expects its sales in China to rise more than 10 percent in 2009, similar to last year's rate of growth despite a slowdown in the country's economy, its China chairman says (KRAFT/CHINA (INTERVIEW, UPDATE 1), moved, by Fang Yan and Jacqueline Wong, 400 words)

ENVIRONMENT

China commentary chides rich nations on climate change

BEIJING - China's official news agency accuses rich countries of shirking their duty to fight climate change and seeking to divide developing countries, warning that negotiations for a new global climate pact face deep disputes + See also: - CHINA-ENVIRONMENT/ , moved, 300 words