Today's Headlines

Bloomberg:
- China, the world’s second-biggest oil consumer, will raise the prices of gasoline and diesel by 17-18%, starting tomorrow, the National Development and Reform Commission said. The nation will also raise jet fuel prices by 25%. China will also raise electricity prices. The country must cut energy use by at least 5% for every unit of gross domestic product annually for the next three years, said Yang Tiesheng, director of the commission’s energy efficiency division, said. “It is an extremely difficult target to meet, but I’m optimistic that the government will achieve it by making the utmost effort,” he said. The country cut energy use by 2.62% for every 10,000 yuan of GDP in the first quarter compared with a year earlier. The government aims to cut energy use by 20% for each unit of GDP in 2010 from 2005 levels. The government is also considering so-called environmental tax, a new levy on auto fuels and changes to existing taxes on natural-resource use.
- Chinese oil demand growth will be reduced by about a third following the government’s decision to raise fuel prices, according to Merrill Lynch(MER). “We’re going to get some demand destruction,” the analyst said. China will likely have to increase prices further as fuel costs in the country remain significantly below international levels, he added.
- Former Bear Stearns hedge fund managers Ralph Cioffi and Matthew Tannin, arrested this morning at their homes in New Jersey and Manhattan, were indicted for mail fraud and conspiracy in the first prosecution stemming from a federal investigation of last year’s mortgage market collapse.
- Citadel Investment Group, Tudor Investment Corp. and at least 20 rival hedge funds are taking advantage of job cuts and pay reductions on Wall Street to recruit top performers and expand into new businesses.
- Crude oil is plunging almost $5/bbl. on concerns over falling global demand, rising supplies and a firmer US dollar.
- Blackstone Group LP(BX) agreed to buy Apria Healthcare Group(AHG) for about $920 million after the stock was beaten down by concern that cutbacks in US government health-insurance programs will crimp profits.
- Republican presidential candidate John McCain will push to almost double the number of nuclear reactors in the US as part of a broad plan to address the nation’s energy woes.
- BB&T Corp.(BBT) said it expects “some increases in the cash dividend during 2008.”
- China’s stocks plunged, resuming a decline that’s wiped out $1.2 trillion of market value, on renewed concerns the government will concentrate on measures to curb consumer prices rather than bolster equities.

NY Times:
- Obama Campaign Guards Canadidate’s Image, Media Access. The strategy, which at times appears to go against Obama’s pledge to be transparent, comes as the media try to increase access to the candidate.

CNBC.com:
- Power Poll: Should the Government Open Offshore Oil Drilling? 81% Yes. 16% No.

Cambridge Energy Research:
- “Peak Demand” – US Gasoline Demand Likely Peaked in 2007. Gasoline demand in the US may have reached its peak, as rising prices lead consumers to make long-term decisions that will weaken demand in the years to come, according to a new analysis by Cambridge Energy Research Associates.

CNN:
- An Arab-American civil rights group sent a letter to Barack Obama asking him to personally respond to reports Wednesday that two women were denied the opportunity to stand behind the presumptive Democratic presidential nominee on stage at a campaign event because they were wearing traditional Muslim head scarves. The Obama campaign moved quickly Wednesday to defuse the situation by stating the incidents did not reflect campaign policy. "It is offensive and counter to Obama's commitment to bring Americans together and simply not the kind of campaign we run. We sincerely apologize for this behavior," said spokesman Bill Burton, in a statement sent to reporters Wednesday afternoon.

AFP:
- Saudi Arabia said today it planned to increase oil output by 200,000 barrels per day. Thursday’s release did not specify when the additional production would begin, but it will bring Saudi Arabia’s total crude output to 9.65 million bpd. Saudi Arabia had ramped up output by 300,000 bpd last month following a visit by President Bush.

Folha de S. Paulo:
- Brazilian Presient Luiz Inacio Lula da Silva is considering budget cuts and measures to slow lending growth to help curb inflation.

Gulftimes.com:
- Lured by tax-free jobs and cheap living, foreign workers have long gravitated to wealthy Gulf Arab states to earn a better living, but rising costs are now forcing many to go home.