NEWS

Stocks and commodities jumped on Monday and U.S. Treasuries fell after China let the yuan rise to the highest since July 2005, with more currency flexibility easing tensions with the West and encouraging investors to snap up riskier assets.

Stocks and commodities jumped on Monday and U.S. Treasuries fell as investors bet China will allow the yuan to rise after promising more currency flexibility, easing political tensions with the West and encouraging investors to snap up riskier assets.

Global markets celebrated on Monday at the merest hint that China would let its currency appreciate, showing just how badly the Middle Kingdom is needed to drive a recovery in the sagging world economy.

Former defense minister Juan Manuel Santos won an easy victory in Colombia's run-off election on Sunday to succeed President Alvaro Uribe as the leader of Washington's top ally in Latin America.

Following are forecasts by bankers and strategists on the level of expected yuan appreciation after China ditched its peg to the U.S. dollar.

China's announcement that it will resume currency reform made waves globally but caused barely a ripple at home on Sunday, with major newspapers merely reprinting the central bank's statement.

Gold rallied on Friday to an all-time record above $1,260 an ounce, as investors looked to precious metals for an alternative to equity or debt investments given renewed uncertainty about the economic recovery.

The United States pressed China on Friday to move toward a market-based exchange rate, but Beijing said not to meddle with its management of the yuan, setting the stage for a clash at next week's G20 summit.

Gold rallied to a record high above $1,260 an ounce on Friday as momentum triggered by buying of the metal as a haven from sovereign and financial risk pushed prices through technical resistance.

South Korea announced on Sunday long-anticipated currency controls, saying it aimed to curb rapid shifts in capital flows that were linked to short-term foreign debt and posed a risk to the world's ninth-biggest exporter.

U.S. lawmakers risk poisoning the atmosphere with China through proposed laws aimed at the yuan currency, China's official news agency said on Sunday, calling Congress members baby kissing incompetents.

Proposed U.S. legislation aimed at punishing China unless it lets the yuan rise would not be in line with World Trade Organization rules, China's Ministry of Commerce said on Saturday.

Treasury Secretary Timothy Geithner indicated U.S. patience on China's currency policy was wearing thin on Thursday as a key lawmaker warned that he would move soon on legislation that would penalize Chinese goods.

Treasury Secretary Timothy Geithner, delivering his sharpest criticism of China's exchange rate policies in months, said on Thursday the yuan's value was critically important for the world economy.

McDonald's Corp reported a stronger-than-expected 4.8 percent rise in worldwide May sales at established restaurants, but said it expects a weak euro to take a bite out of full-year profits.

The euro edged up on Wednesday after hitting a four-year low against the dollar on jitters over the euro zone's debt crisis, while Asian stocks were broadly steady despite a dip on Wall Street.

Alcoa Inc said Tuesday it reached a tentative agreement with the United Steelworkers union on a new 4-year labor contract covering 5,400 workers at 10 of the aluminum producer's manufacturing locations in the United States.

The euro steadied on Monday but remained under pressure after Fitch downgraded Spain's credit rating and France said keeping its top credit rating may be a stretch without tough budget cuts.

Brazilian mining company Vale will raise iron ore prices about 35 percent to as much as $145 per metric ton in July as part of a switch to quarterly pricing, a Brazilian newspaper reported on Sunday,

Brazilian mining giant Vale will hike iron ore prices by around 35 percent to as much as $145 per tonne starting in July, a Brazilian newspaper reported on Sunday, without saying where it got the information.

The euro approached a four-year low against the dollar on Thursday on a newspaper report that China was examining its investments in euro zone debt, while bargain-hunting gave some support to Asian stocks.

Global miner Rio Tinto on Wednesday predicted strong iron ore demand to continue and gave an upbeat outlook for aluminum, defying sharp slides in commodity prices and fears of a double-dip global recession.

The euro fell on Wednesday driven by fears that Europe's debt woes can wreak havoc in its banks, though Asian stocks rebounded from nine-month lows as value investors hunted for bargains.

Asia stocks fell to multi-month lows, the euro slid and oil and higher yielding currencies weakened on Tuesday on fears that Europe's sovereign debt woes will trigger a renewed crisis in the continent's banking sector.

Global miner Rio Tinto said it is reviewing all investments in Australia due to a proposed new tax, describing the country as its No.1 sovereign risk concern and sending a weak Australian dollar even lower.

The euro struggled to retain gains on Thursday after a fragile rebound from the previous day's four-year lows as political divisions in Europe and fears of more regulations kept investors edgy and pressured stocks.

The euro fell to a fresh four-year low on Wednesday after Germany moved to sharpen financial regulation, taking down commodities and Asian stock markets in its wake as investors stampeded out of riskier assets.

The light-emitting diode sector is growing fast, especially in niche markets such as the car industry, but LED bulbs will not be a mass consumer item for some time, developers and experts said on Tuesday.

Sears Holdings Corp , which expanded its layaway program to help cash-strapped consumers pay for purchases during the recession, is now helping its customers exchange their jewelry for cash as gold prices soar.