UNITED KINGDOM

Stocks rose on Wednesday, shrugging off earlier losses, after Kraft raised its outlook and a brokerage upgraded Merck & Co. in welcome signs about future earnings.

China markets were still shaken on Wednesday, lagging behind others due to a lower economic outlook after the central bank raised the reserve requirement for banks.

Cyber attacks disclosed by Google and Adobe that may lead Google to quit China highlight a sophisticated type of bespoke cyberspying that could be more widespread than previously thought.

German fragrance-to-fashion retailer Douglas Holding AG is counting on consumers' appetite for indulgence to prop up earnings this year.

British and U.S. researchers studied the effects of the chemical bisphenol A using data from a U.S. government national nutrition survey in 2006 and found that high levels of it in urine samples were associated with heart disease.

Britain's business secretary Peter Mandelson is expected to add his weight to union calls for Cadbury shareholders to resist Kraft Foods' bid, which got a boost from the withdrawal of a possible rival.

Major Asian stock indices fell on Wednesday due to tighter credit conditions, while German and UK stocks were mixed after economic reports as U.S. stocks were pointing to a higher opening.

The Australian Dollar opens lower today at 0.9210 after failing to hang onto its recent gains above US93 cents.

Bid-target Cadbury Plc stressed on Tuesday it had good support from its shareholders in repelling the hostile bid from Kraft Foods and should be able to deliver on its financial targets for 2010.

Retailers are using a host of strategies in adapting to the downturn -- from improving their products to expanding their e-commerce businesses -- which they hope will better position themselves for a rebound in the economy.

Pakistani society is likely to become more Islamist and increasingly anti-American in the coming years, complicating U.S. efforts to win its support against militant groups, a report released on Tuesday said.

Prime Minister Tony Blair told U.S. President George W. Bush in 2002 that Britain would back military action if diplomatic efforts to disarm Iraq's Saddam Hussein failed, his former communications chief said on Tuesday.

Royal Bank of Scotland said investors were concerned a clampdown on bonuses would hamper its ability to retain staff and warned parliamentarians the rescued bank could find itself prisoner to market rates.

China took its strongest step toward tightening monetary policy on Tuesday as the world's third-largest economy roars ahead, surprising investors with an increase in banks' required reserves that rocked global financial markets.

European carbon emissions futures dipped on Tuesday as investors sold permits to entice industrial companies into selling to drive prices lower, traders said.

AA Sweetens JAL Offer; Cadbury Rebuffs Kraft; China's Growing Fortunes

Asian stocks fell on Tuesday, a day after hitting a 17-month high, on investor jitters about tighter monetary policy in China, while the dollar rose after a Chinese sovereign fund official said the currency has bottomed.

Cadbury Plc's union, Unite, will warn members of Britain's Parliament on Tuesday that a potential bidding war for the UK chocolatier will further undermine worker rights.

The Australian Dollar opens marginally higher on Tuesday against its U.S. counterpart at 0.9311.

Major powers may soon meet to discuss Iran's nuclear program, the State Department said on Monday, adding the talks could take place when U.S. Undersecretary of State William Burns travels to Moscow and Madrid this week.

Britain's first commercial wind farm will be repowered, replacing its aging turbines with more efficient ones under an 11.8 million pound ($19.1 million) deal announced by Good Energy Group plc on Monday.