• U.S. factory orders increased 1.1% in April, an unexpected gain that was boosted by the high cost of gas and other petroleum products, the Commerce Department announced yesterday (Tuesday). Economists had expected a smaller gain of just 0.1% after an upwardly revised 1.5% gain in March, MarketWatch reported.

• Borders Group Inc. (BGP) announced yesterday (Tuesday) it would reduce 20% of its corporate positions in an ongoing effort to cut costs. The No. 2 U.S. bookseller will eliminate 156 positions at its Ann Arbor, Mich. Headquarters and 118 corporate positions at other locations, Reuters reported. The reductions represent less than 1% of Borders total staff.

• In a bid to lure new customers to purchase reloadable cards, Starbucks Corp. (SBUX) will offer free AT&T Inc. (T) wi-fi service to patrons who buy a minimum $5 on a reusable Starbucks Card. “Customers have let us know they want to be recognized for choosing Starbucks,” Brad Stevens, vice president of customer relationships, told USA Today. Particularly, he says, at a time when “budgets are tight.”

• Annual inflation in Kenya soared 31.5% higher in May, Bloomberg reported, citing the country’s National Bureau of Statistics reported yesterday (Tuesday). May’s numbers are even steeper than April, when soaring food prices pushed inflation up 26.6%.

• Chevron Corp.’s (CVX) vice chairman told Bloomberg that the company will spend up to $5 billion in African oil projects – including nearly $5 billion for a gas-to-diesel conversion plant in the Niger Delta – to boost production and help accommodate global demand. “The world is saying it needs it,” said Peter Robertson.

• Staples Inc. (SPLS) yesterday (Tuesday) raised its hostile bid for Dutch office supplies distributor Corporate Express NV (ADR: CXP) to $2.6 billion. Rather than accepting two previous overtures from Staples, Corporate Express last month struck a surprise deal to buy a French competitor, Lyreco SAS, which would create an international competitor to Staples, the Associated Press reported. Lyreco may be entitled to a $46.8 million break-up fee if Corporate Express shareholders pursue the Staples deal.

• Lehman Brothers Holdings Inc. (LEH), set to report its first quarterly loss since going public, is considering raising billions of dollars in fresh capital to help shore up its balance sheet, the Wall Street Journal reported. The exact amount isn’t known, but analysts estimate it is likely to be between $3 billion and $4 billion. Lehman will probably reveal the details of the plan with its quarterly results, due the week of June 16.

• Oil prices fell sharply yesterday (Tuesday), at times slipping more than $3 a barrel on the New York Mercantile Exchange. The drop came after Federal Reserve Chairman Ben S. Bernanke indicated that more interest rate cuts are unlikely. His comments sent the dollar higher and raised questions about oil’s ability to reach new highs in the short term.

Source: Global Investing Roundups Wednesday, June 4th, 2008

• Cablevision Systems Corp. (CVC) announced Monday that it bought Long Island daily newspaper Newsday for $650 million, a deal Cablevision hopes will profit through cross marketing and advertising in cable and newspaper operations, Reuters reported. Cablevision – which also owns TV networks AMC and IFC, venues such as Radio City Music Hall and Madison Square Garden and sports teams New York Knicks and New York Rangers – recently announced it would buy the Sundance Channel for $496 million.

• Brazil’s government announced it will launch a sovereign wealth fund and offer more than $12.8 billion in tax cuts to boost the economy, Bloomberg reported. Called the Productive Development Policy Package, the plan hopes to increase exports and bolster infrastructure.  “We need to invest more and better,” Trade Minister Miguel Jorge said in a speech yesterday (Monday). “Investing better is nothing but taking a big leap in terms of the quality of our industrial matrix.”

• Oil prices hit a record high for the sixth straight trading day yesterday (Monday), before receding slightly. Light, sweet crude for June delivery jumped to a new record of $126.40 a barrel on the New York Mercantile Exchange, the Associated Press reported. Retail gas prices rose to a record $3.718 a gallon according to a survey of stations by AAA and the Oil Price Information Service.

• Consumer prices in China for the month of April were 8.5% higher than last year, the country’s National Bureau of Statistics reported. April inflation was driven by a 22.1% jump in food prices, the Associated Press reported.

• Despite a jump in revenue and subscribers, XM Satellite Radio Holdings Inc.(XMSR) reported a first-quarter net loss of $129.3 million, compared with loss of $122.4 million year ago. Revenue was $308.5 million, up 17% from a year ago. The company picked up 355,000 new customers through deals with auto manufacturers. It lost 51,000 retail customers. XM ended the quarter with 9.3 million subscribers.

• Shares of Research in Motion Ltd. (RIMM), maker of the popular BlackBerry device, climbed 7% yesterday (Monday) after the firm revealed its new 3G version. The stock gained $9.20 to close at $141.97. The BlackBerry Bold will be released later this summer, MarketWatch reported.

• Shares of Electronic Data Systems Corp. (EDS) soared 28% before having trading suspended late in the day yesterday (Monday). The tech stock gained $5.27 to close at $24.13 on news reports that Hewlett-Packard Co. (HPQ) could be announcing plans to buy the business solutions tech firm.

• An announcement that Clear Channel Communications Inc. (CCU) was trying to come to a settlement with banks that backed out on its planned $19.4 billion privation sent the stock up almost 10% yesterday (Monday). Shares gained $2.87 to close at $32.87.