Lehman Brothers closes three investment funds

Lehman Brothers has shut three investment funds and moved about $1 billion (£507 million) of the funds’ assets on to its own balance sheet, the US bank revealed in a regulatory filing. The bank spent a further $800 million buying back “deteriorated” assets from some of its clients, it told the US Securities and Exchange Commission, the financial watchdog. The losses were included in $1.8 billion that Lehman Brothers wrote down in the first quarter of this year. The bank has taken a $3.9 billion hit on its loan portfolios since the credit crunch began last year. Shares in the bank closed on Wall Street at $40.12, down $0.42, or 1.00 per cent, on news of the fund liquidations and a negative note from Deutsche Bank analysts. (Christine Seib)

Virgin Media shares slide after news of bond sale

Virgin Media shares fell by 14.3 per cent in pre-market trading after the company said that it would sell $1 billion (£506 million) in bonds to pay off debt and an analyst downgraded his rating and price target. It is the latest blow to the group's shares, which have plummeted by more than 50 per cent since a $29.39 high last July. Romeo Reyes, of Jefferies & Co, cut his rating to “hold” from “buy” and lowered his target price by $6 to $16, citing competitive pressure and a weakening UK economy, after the group's bond announcement late on Wednesday. The bonds, which can be converted into stock or cash or a combination of the two, will be used to pay off £504 million of debt. In morning deals, shares were trading at $13, down $1 on Wednesday's close. (Lilly Peel)

Takeda in $9bn takeover

Japan's largest pharmaceuticals company will buy an American firm for $8.8 billion (£4.4 billion) in the biggest overseas acquisition by a Japanese drugs company. Takeda Pharmaceutical is buying Millennium Pharma- ceuticals to boost its cancer drug business. The friendly cash offer of $25 per share, 53 per cent above Millennium's closing price on Wed- nesday, is the latest example of accelerating M&A in the biotech sector as drug companies scramble to secure promising pipelines and technologies developed by smaller firms. Takeda has been under pressure to use a $10 billion war chest to strengthen its pipeline before a US patent on its top-selling diabetes drug, Actos, expires in 2011. (Reuters)

Yuan hits dollar milestone

China's currency rose above 7 yuan to the US dollar yesterday in a milestone that will please Beijing's trading partners and dismay exporters struggling to remain competitive in overseas markets. The closing reference rate for the US dollar was 7.0017, after dipping to a record low of 6.9907, marking the first time the Chinese currency has gone below 7 yuan since the Government loosened the unit's peg to the dollar in 2005. (AP)

UN fearful of food inflation

The UN has given warning that surging prices of staple foods could trigger riots around the world. The alert follows a World Bank report that 33 countries face social unrest because of food and energy inflation. Violence has been reported in countries as far flung as Egypt, Uzbekistan and Haiti, and workers in Argentina have gone on strike. Countries including India have clamped down on rice exports, and the Philippines has threatened farmers found hoarding rice with life imprisonment. Jacques Diouf, the director-general of the UN Food and Agriculture Organisation, said: “We have seen riots around the world and there is a risk that these will spread because of rising prices in countries where 50 per cent to 60 per cent of incomes go on food. The problem is serious.” (Rhys Blakely)

Indian gold imports fall

India's gold imports in the year to March fell by 23.4 per cent from the year before to 592 tonnes as international prices soared. Suresh Hundia, of the Bombay Bullion Association, said imports in March halved to 27 tonnes from a year ago despite a slight drop in prices. India, the world's largest gold consumer, annually imports between 700 tonnes to 800 tonnes. International spot gold prices rose to $933.30 an ounce yesterday. (Reuters)

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