Today's Headlines

Bloomberg:
- China’s inflation rate held at a 19-month low in May, adding to expectations that the central bank will refrain from raising interest rates to dampen consumer spending in the world’s fastest-growing economy.
- Nokia Oyj unveiled seven new handset models to help maintain revenue growth and take market share from competitors including Motorola.
- Morgan Stanley has fired Chairman and CEO Philip Purcell.
- The EU will shelve plans to lift a 16-year-old arms embargo against China because of concerns about the nation’s human-rights record and Pacific rim stability, completing a policy shift that marks a US victory and a French defeat.
- Cattle prices in Chicago tumbled to the lowest in 14 months on concern a second possible case of mad cow disease in the US might slash beef sales.
- US Treasuries maturing in 10 years or more fell for a fourth day, the longest slide since February, on speculation the US economy is growing more briskly.
- The euro fell to a nine-month low against the dollar after European Central Bank Chief Eocnomist Otmar spurred speculation the bank may reduce interest rates for the first time since 2003.
- OPEC may increase output for the second time this year as prices stay above $50/bbl., the Saudi Arabian oil minister said.

Wall Street Journal:
- Italy is experiencing a backlash against the euro as the country sinks deeper into recession.
- Warren Buffet’s General Re is in talks with the US government about settling a criminal inquiry into whether the company helped AIG to distort its finances.
- Toronto-Dominion Bank and Ameritrade said they’ve resumed talks about a possible merger of Ameritrade and the Canadian bank’s TD Waterhouse discount-brokerage arm.
- Boeing and United Technologies, which had a US Army program canceled last year, are teaming up again to compete for a proposed air force search-and-rescue helicopter.
- Northwest Airlines is flying dangerously close to an insolvency filing.
- Coca-Cola is bringing back the classic 1971 song used in its “Hilltop” commercial to pitch zero-calories cola to younger consumers who have opted for trendier drinks.
- Angang New Steel, the Hong Kong-listed unit of China’s second-biggest steelmaker, lowered prices of products including cold-rolled steel coil and zinc-galvanized steel.

NY Times:
- The US will issue a report this week that is critical of the UN, though it supports Secretary General Annan’s proposals to improve the organization. The US is the biggest UN contributor, liable for 22% of the organization’s operating budget and almost 27% of the budget for peacekeeping. Annan face pressure to resign amid scandals in the Iraq/UN oil-for-food program.
- The US will import more clams this year from Canada and other countries after an outbreak of red tide, a toxic algae, shut down shellfish beds from Maine to south of Cape Cod.

Washington Post:
- The US government will no longer print its postage stamps and will instead contract all the work out to private printers.

Handelsblatt:
- STMicroelectronics NV forecast a recovery in the semiconductor industry won’t happen before 2006.