HSBC lifts precious metals price forecast

(Reuters) - HSBC on Tuesday raised its price forecasts for gold, silver, platinum and palladium, citing the U.S. dollar's weakness, stronger oil prices and robust investment demand from the exchange-traded funds (ETFs).

James Steel, analyst at HSBC, lifted his gold price target to $660 an ounce from $630 an ounce for 2008, and raised his 2009 outlook to $600 from $550, while leaving its 2007 forecast unchanged at $680.


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European Stocks May Decline, Led by Roche, BP, Rio Tinto, EasyJet Shares

(Bloomberg) -- European stocks may decline on speculation demand will slow from the U.S., the region's biggest trading partner.

Roche Holding AG, BP Plc and SAP AG might lead a drop by companies most dependent on the U.S. for sales. EasyJet Plc may fall after Goldman, Sachs & Co. recommended selling shares of the region's second-largest low cost airline. Rio Tinto Group may pace a decline in commodity stocks as copper prices fell.


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UPDATE 1-BOJ seen standing pat as policy meeting begins

(Reuters) - TOKYO, May 16 - The Bank of Japan is set to scrutinise economic conditions and tame price growth at a two-day policy meeting that started on Wednesday, and analysts widely expect the central bank to keep interest rates on hold.

The meeting concludes on Thursday, hours after the release of Japan's gross domestic product figures for January-March.


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U.S. Senate to test support for ending Iraq war

(Reuters) - Senate leaders are orchestrating votes on four amendments, two Democratic and two Republican, in the hope of gauging support for the next steps in a war now in its fifth year and showing signs of losing support even among some conservative lawmakers.

The outcome of the votes on the amendments likely will effect negotiations between the House of Representatives and the Senate on an Iraq funding bill Congress is trying to send to Bush by the end of this month.


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Asian Stocks Are Little Changed; Kajima Falls on Earnings, Compal Gains

(Bloomberg) -- Asian stocks were little changed as slides in Japanese construction companies offset gains in South Korean shipbuilders and Taiwan's electronics makers.

Kajima Corp., Japan's biggest builder, plunged the most in nine years after the company forecast lower earnings. Samsung Heavy Industries Co. rose after the company won a 713 billion won ($772 million) order. Compal Communications Inc. gained on speculation it may receive mobile phone orders from Nokia Oyj.


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China's Industrial Output Climbed 17.4 Percent in April as Exports Boomed

(Bloomberg) -- China's expansion of industrial production held above 17 percent for a second month, adding to pressure on the government to raise interest rates to cool investment in the world's fastest-growing major economy.

Output rose 17.4 percent in April after climbing 17.6 percent in March, the statistics bureau said today. That was close to the 17.5 percent median estimate of 18 economists surveyed by Bloomberg News.


Read more at Bloomberg Emerging Markets News

Salary.com quarterly loss widens

(Reuters) - Revenue in the Waltham-Massachusetts based company rose to $6.4 million from $4.5 million.

Salary.com provides on-demand data on compensation designed to help managers determine how much to pay employees.


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UPDATE 1-Icahn takes big stake in Anadarko-SEC filing

(Reuters) - Icahn Management LP, one of Icahn's investment vehicles, took a stake of about 3.1 million shares in Anadarko, worth about $133.5 million as of March 31, the filing said Tuesday.

Anadarko last year purchased another of Icahn's targets, Kerr-McGee, according to a regulatory filing.


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UPDATE 1-New Century bankruptcy judge won't oust management

(Reuters) - U.S. Bankruptcy Judge Kevin Carey, who sits in Wilmington, Delaware, ruled that current management is managing the sale of assets well, according to Mark Power, a lawyer representing New Century's official committee of unsecured creditors. The committee opposed the naming of a Chapter 11 trustee.

U.S. Trustee Kelly Beaudin Stapleton, acting for the U.S. Department of Justice, had urged Carey to name a trustee, citing the alleged failure of New Century's management to ensure proper accounting and internal controls.


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FirstEnergy says all nominated boardmembers elected

(Reuters) - ISS said the boardmembers did not act on a shareholder proposal to adopt a simple majority vote, even though the proposal received a clear mandate from shareholders for two consecutive years.

"Effective corporate governance depends upon the board being accountable to shareholders," ISS said in its April report. "Such failure or unwillingness to respond to the desires of shareholders warrants withholding votes from directors at the 2007 annual meeting."


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U.S. Stocks Rise After Consumer Prices Data Trail Forecast; GM Advances

(Bloomberg) -- U.S. stocks rose after consumer prices rose less than forecast, reinforcing speculation the Federal Reserve won't increase interest rates.

Shares of General Motors Corp. pushed the Dow Jones Industrial Average to a record after Lehman Brothers Holdings Inc. upgraded the largest U.S. automaker. Agilent Technologies Inc. climbed to the highest since 2001 after the biggest maker of scientific-testing equipment posted quarterly profit that beat analysts' estimates.


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UPDATE 2-Fitch changes Reuters outlook to positive

(Reuters) - Moody's Investors Service said it may still cut its ratings on Reuters' debt from "A3," its seventh highest ranking.

The outlook change reflects the expectation that the transaction is likely to go ahead following the recommendations of the two companies' boards and Reuters Founders Share Company support, Fitch said in a statement.


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Bergesen Worldwide liquidates stake in General Maritime

(Reuters) - Bergesen, a subsidiary of the Sohmen Family Foundation, filed an active beneficial ownership form with the SEC on Jan. 22, disclosing 11.9 percent stake in General Maritime. Prior to this, both Bergesen and the foundation were passive investors in the company.

The Sohmen Family Foundation owns 93.25 percent of Bergesen.


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Moody's may still cut Reuters debt from 'A3'

(Reuters) - The review for downgrade from "A3," its seventh highest ranking, will now focus on the financial profile of the combined company, the relative rating of Reuters debt in the new entity and the combined company's business fundamentals, Moody's said.




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Consumer prices ease inflation worries

(Reuters) - The Labor Department's Consumer Price Index advanced by 0.4 percent in April, slightly less than Wall Street expected and below the 0.6 percent rise seen in March.

The core rate, which excludes volatile food and energy prices, increased 0.2 percent. While that marked a slight step up from March, the 12-month increase in core prices slipped to 2.3 percent, the smallest gain in a year.


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US stock indexes rise as CPI offsets Home Depot, Wal-Mart

(Reuters) - U.S. stocks rose on Tuesday, sending the Dow industrials to an all-time high, as data pointing to stabilizing inflation trumped disappointing earnings from Home Depot Inc. and Wal-Mart Stores Inc.

Investors snapped up shares of industrial conglomerates such as Boeing Co. and General Electric Co. as they bet the Federal Reserve may have room to lower interest rates some time this year, which could boost business investment.


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TREASURIES-Bonds climb on weaker than expected core inflation

(Reuters) - NEW YORK, May 15 - U.S. Treasury debt prices rose on Tuesday after a reading on annual inflation came in just below expectations, suggesting to investors the Federal Reserve may have a little more room to consider interest rate cuts.

The core Consumer Price Index, which strips out volatile food and energy prices, rose 2.3 percent on a year-over-year basis, slightly below the previous month's reading. For details, see [ID;nN15389556].


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UPDATE 1: U.S home sales pace off in 33 states-Realtors

(Reuters) - While the data from the National Association of Realtors was mixed, it was seen as an overall positive for the battered housing sector.

"Conditions changed fairly rapidly during the boom, but we need more patience now to see a slow, gradual recovery, which should start in the second half of this year," said Lawrence Yun, NAR's chief economist.


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OPEC sees ample crude stocks, no supply boost

(Reuters) - The monthly oil market report from the Organization of the Petroleum Exporting Countries also showed members keeping a lid on output, a policy OPEC officials say may extend beyond their next meeting on September 11.

"Heading into the driving season, crude oil stocks are more than adequate to meet expected demand. However, gasoline stocks are low for this time of year," OPEC's report said.


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U.S. Stocks Rally as Consumer Prices Data Trail Forecast; GM Advances

(Bloomberg) -- U.S. stocks rallied and the Standard & Poor's 500 Index reached a six-year high after consumer prices rose less than forecast, reinforcing speculation the Federal Reserve won't increase interest rates.

Shares of General Motors Corp. pushed the Dow Jones Industrial Average to a record after Lehman Brothers Holdings Inc. upgraded the largest U.S. automaker. Agilent Technologies Inc. climbed after the biggest maker of scientific-testing equipment posted quarterly profit that beat analysts' estimates.


Read more at Bloomberg Stocks News

Crude Oil Rises on Signs Demand Will Climb on Higher Gasoline Production

(Bloomberg) -- Crude oil rose on speculation that demand will increase as U.S. refineries finish repairs and bolster gasoline production.

Refineries probably raised operating rates 0.8 percentage point last week, according to the median of responses in a Bloomberg News survey. Refiners increase gasoline output before the summer months, when demand peaks.


Read more at Bloomberg Commodities News

European Stocks Rise, Led by Daimler, Hanson, Reuters; Nestle Declines

(Bloomberg) -- European stocks rose, pushed higher by auto, construction and media companies, after DaimlerChrysler AG reported earnings that topped analysts' estimates and Hanson Plc and Reuters Group Plc agreed to be bought.

``Earnings have delivered positive surprises,'' said Ulrike Pfuhl, Frankfurt-based portfolio manager at JPMorgan Asset Management, which oversees $847 billion. ``The takeover wave is rolling on. As long as acquirers pay in cash this might be seen as an indicator that stock valuations are still attractive.''


Read more at Bloomberg Stocks News

UPDATE 1-Massey says lawsuit penalty estimates 'unfounded'

(Reuters) - "It is the company's opinion that the current suit will be resolved in a reasonable manner and that recent speculation about maximum penalties is unfounded," Massey said.

One analyst said the company's liability for the lawsuit could be nearly $2 billion under the claims filed last week that the fourth-largest U.S. coal producer had violated its pollution permits on thousands of occasions.


Read more at Reuters.com Government Filings News

European Auto, Construction Stocks Rise; Nestle, Danone Shares Decline

(Bloomberg) -- Auto and construction stocks rose after DaimlerChrysler AG reported earnings that topped analysts' estimates and Hanson Plc agreed to be bought.

Reuters Group Plc rallied as Thomson Corp. offered 8.7 billion-pound ($17.2 billion) for the 156-year-old news provider. Nestle SA, Unilever NV and Groupe Danone limited gains as Deutsche Bank AG advised cutting holdings in the shares, citing rising prices for milk and cocoa.


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Yahoo appoints Weisel as its new CFO

(Reuters) - Decker remained as CFO while a job search was conducted.

Jorgensen will be a key member of Yahoo's executive team, overseeing the company's finance, investor relations and mergers and acquisitions groups. He will report directly to Yahoo's Chairman and Chief Executive, Terry Semel.


Read more at Reuters.com Mergers News

US RATE FUTURES-Brief gains on in-line April CPI

(Reuters) - U.S. core consumer prices rose by 0.2 percent in April, in line with expectations, but the year-on-year core rose by a smaller than expected 2.3 percent.




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Canada's Dollar Climbs to 11-Month High on Report of Manufacturing Gains

(Bloomberg) -- Canada's dollar rose to an 11-month high after a report showed manufacturing shipments climbed in March.

The currency gained for a third day as the data beat analysts' forecasts. The Canadian dollar rose to 90.85 U.S. cents at 9 a.m. in Toronto. Earlier, the Canadian currency reached 90.95 U.S. cents, the strongest since June 13. One U.S. dollar buys C$1.1007.


Read more at Bloomberg Currencies News

Advanced Micro Devices, Amgen, DaimlerChrysler, GM: U.S. Equity Preview

(Bloomberg) -- The following is a list of companies whose shares may have unusual price changes in U.S. exchanges tomorrow. This preview includes news that broke after exchanges closed. Stock symbols are in parentheses after company names. Share prices are as of 8:10 a.m. New York time.

Advanced Micro Devices Inc. (AMD US) rose 29 cents to $15.65 in trading before the open of U.S. exchanges. ThinkEquity Partners analyst Eric Ross upgraded shares of the world's second- largest maker of computer microprocessors to ``buy'' from ``sell.''


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Treasuries Rise as Consumer Prices Increase Less Than Forecast in April

(Bloomberg) -- Treasuries rose after a government report showed consumer prices rose last month less than economists forecast.

Ten-year yields fell on speculation the data may increase the likelihood of a cut in borrowing costs. The Federal Reserve held borrowing costs steady at its policy meeting this week, saying inflation remains the ``predominant'' economic risk.


Read more at Bloomberg Bonds News

UPDATE 1-Fed's Bernanke: Market principles top new rules

(Reuters) - In remarks prepared for delivery via satellite to a financial markets conference sponsored by the Atlanta Federal Reserve Bank in Sea Island, Georgia, Bernanke did not address Fed monetary policy or the U.S. economic outlook. The text of his address was made available in Washington.

He said the rapid growth of the credit derivatives market and the increasing prominence of hedge funds did not warrant specific regulation to address possible risks that they pose.


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AerCap quarterly profit rises

(Reuters) - The company, which leases planes and engines and provides aircraft management services, raised $600 million with its initial public offering on the New York Stock Exchange in November.




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RWE has no indication of EDF preparing takeover

(Reuters) - Speaking after RWE reported higher-than-expected first-quarter profits, Pohlig reiterated that RWE was planning to sell a majority of its American Water unit before the end of the year.

The company will pay clearly more than 100 million euros for certificates allowing it to emit carbon dioxide, he also said.


Read more at Reuters.com Mergers News

EU split over banana trade with ex-colonies

(Reuters) - European Union countries wrangled on Tuesday over whether to open up their banana markets to former colonies, with producers France and Spain pushing for offering only phased-in access in trade talks.

The 27-nation bloc's executive Commission urged EU states last month to open fully their wealthy markets to imports from former colonies with transition periods only for rice and sugar.


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OPEC sees ample crude stocks to cover demand

(Reuters) - "Heading into the driving season, crude oil stocks are more than adequate to meet expected demand. However, gasoline stocks are low for this time of year," OPEC's report said.

"As always, OPEC continues to monitor market developments ahead of its planned meeting in September, which will focus on the coming winter season."


Read more at Reuters.com Hot Stocks News

China Precision Steel earnings fall

(Reuters) - Revenue rose 36 percent to $11.6 million. Operating expenses jumped to $1.5 million from $305,110.




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Dollar Trades Little Changed Versus Euro, Yen Before U.S. Inflation Report

(Bloomberg) -- The dollar was little changed against the yen and the euro before a report that's likely to show U.S. consumer prices climbed in April, suggesting the Federal Reserve won't lower rates any time soon.

Traders have cut bets the Fed will reduce borrowing costs, pushing the two-year Treasury yield to a four-week high. The spread with the equivalent German bund has risen from a 2 1/2-year low last month, when the U.S. currency dropped to the weakest ever against the euro. The Fed reiterated after its May 9 meeting the primary concern was the risk of faster inflation.


Read more at Bloomberg Currencies News

Indonesia Central Bank Says Rupiah's Strength Is `Good' for the Country'

(Bloomberg) -- The Indonesian currency's appreciation ``will do some good to the country,'' as inflation will slow, central bank Governor Burhanuddin Abdullah said.

The rupiah has risen 3.1 percent this month, making it the best performing among 15 Asia-Pacific currencies tracked by Bloomberg. The currency fell 0.1 percent to 8,813 against the U.S. dollar at 3:13 p.m. in Jakarta.


Read more at Bloomberg Currencies News

Kenya seeks marine telecom cable to Europe

(Reuters) - Kenya plans to join in a new undersea fibre-optic cable, SEAMEWE-5, that will connect it to Europe via Asia in a bid to cut telecoms costs, a senior government official told Reuters.

The country is keen to capture some of the call centre and IT support outsourcing business that is mainly going to India and the Philippines but expensive satellite connections have meant this has been out of reach.


Read more at Reuters Africa

South African Rand Falls Versus Dollar as Stock Market, Metal Prices Fall

(Bloomberg) -- The South African rand declined for a second day as a slide in the country's stock market reduced demand for the currency.

The currency also fell on speculation declining gold and platinum prices will reduce the country's export earnings, making it harder for it to finance its current account deficit. The currency had the second biggest decline of the 71 currencies tracked by Bloomberg today, partly hurt by a 2 percent slide in South Africa's main stock index yesterday.


Read more at Bloomberg Currencies News

ING named sole bidder of S.Korea asset firm-source

(Reuters) - "ING was named the preferred negotiator a couple of days ago," the source said by telephone, asking not to be named.

ING could not immediately be reached for comment.


Read more at Reuters.com Mergers News

Shell plans 10-yr euro benchmark bond -lead

(Reuters) - Citigroup and JP Morgan are managing the sale. Benchmark bonds usually total a minimum of 500 million euros.

Royal Dutch Shell is rated Aa1 by Moody's Investors Service, AA by Standard & Poor's and AA+ by Fitch Ratings.


Read more at Reuters.com Bonds News

UPDATE 2-Hanson agrees 8 bln stg offer from HeidelbergCement

(Reuters) - LONDON/FRANKFURT, May 15 - Germany's HeidelbergCement AG to create the world's second-largest firm in construction materials.

Hanson agreed an offer at 1,100 pence per share in cash, the two companies said on Tuesday in a statement.


Read more at Reuters.com Mergers News