Today's Headlines

Bloomberg:
- Crude oil fell almost $4/bbl. in NY on signs that US fuel consumption is dropping because of a slowing economy and record energy prices. Russia’s oil production may rise to 12 million barrels a day after Prime Minister Putin’s government eases taxes, billionaire Chalva Tchigirinski said. Putin yesterday approved a tax-cut plan to stimulate oil output that may be sent to lawmakers this week. Russian oil production fell to 9.72 million barrels a day in April, the lowest in 18 months. “The news from Russia is significant,” said Tom Bentz, a broker at BNP Paribas in NY. US motorists were forecast to make 1% fewer automobile journeys of at least 50 miles during last weekend’s holiday than a year ago, the AAA said. US fuel consumption averaged 20.3 million barrels a day in the four weeks ended May 16, down 1.3% from a year earlier.
- Rice futures tumbled by their daily limit for the second session as producers eased export bans, alleviating concerns that global supplies will fail to meet demand.
- Nickel extended a decline into its fifth week in London as high oil costs threaten to damp world economic growth, further weakening demand for the metal used to make stainless steel.
- Housing demand in California, where one out of every eight US residents lives, is reviving as bargain hunters buy foreclosed properties, reversing a two-year decline in home sales. Sales in the state increased 2.5% in April, following 30 consecutive declines.
- Wheat prices, at their lowest in almost nine months, may tumble further as farmers start to bring in a forecast record crop, US Wheat Assoc. IP Vincent Peterson said.

Wall Street Journal:
- Investors last year craved international exposure thanks to the double-digit gains of many overseas markets. Now, it looks like the sweet spot may be in the US as domestic stocks, if not the broader economy, show signs of recovery.
- Bush’s Shift in Rhetoric Almost Lost War, Feith Says. On television and radio, in print and on the Internet, day after day they repeated the claim that the undiscovered stockpiles were the sum and substance of why the U.S. went to war against Saddam.
- Agriculture’s Last Frontier. African Farmers, US Companies Try to Create Another Breadbasket With Hybrids.
- Violence in Iraq has decreased to levels see about four years ago. The drop in violence follows recent Iraqi-led military campaigns in Basra in the south, Baghdad’s Sadr City and Mosul in the north. Al-Qaeda in Iraq is in a “confused state” after the attacks in Mosul, said Iraqi Defense Ministry spokesman Major General Mohammed al-Askari.

NY Times:
- US Truckers Sell Vehicles as Fuel Prices Rise.

Women’s Wear Daily:
- Sears Holdings Corp.(SHLD) signed rap singer LL Cool J to start an apparel brand for the retailer.

Tex Report:
- Baosteel Group and Taiyuan Iron & Steel Group will cut stainless steel output 30% each next month because of a decline in prices. Four stainless steel producers in China lowered production by 50% so far this month. Prices in the Wuxi market have declined $290 a ton for cold-rolled stainless steel sheets this month because of a fall in nickel prices.

FinancialWeek:
- Panic of ’07 stirs up mix at top money managers. Last year’s schizoid second half sent trillions of institutional dollars into alternative assets, international equities. Big winners: TIPS, hedge funds and private equity.

Financial Times:
- Oil has reached a turning point by Dan Yergin of Cambridge Energy Research. Oil prices at this level take us into a new world – “Break Point” – where the question is not only “how high can the price go?”, but also “what will be the response?” Is this the point at which oil begins to lose its almost total domination in transport?

Europa:
- The European Commission has launched a number of actions today to promote energy efficient driving habits among European car users.

Frankfurter Allgemeine Zeitung:
- Google Inc.(GOOG) said within a few years mobile advertising will generate more sales than ads addressing personal-computer users via the Internet, citing CEO Eric Schmidt. There are no limits for search engine marketing and the mobile Internet is “the next big wave,” he said.

DigiTimes:
- The global market for large-sized LCD panels appears to be shrugging off economic concerns this year, with rising demand for monitor, notebook-PC and television panels expected to generate a 17.7% increase in unit shipments in 2008, according to market research firm iSuppli.

Xinhua:
- China aftershocks may continue for months.

O Globo:
- Petrobras(PBR), Brazil’s state-controlled oil company, has more natural gas than industry and power producers are demanding, citing the director of gas and energy. At present, 58 million cubic meters a day of natural gas supply is available, which current demand is 56 million cubic meters a day.