BRIEFCASE

Stocks bounce back after inflation, retail reports

NEW YORK — Stocks rebounded Friday as investors saw a report of mild inflation as a sign that the Federal Reserve might cut interest rates later this year.

Investors were encouraged after the Labor Department said its Producer Price Index rose less than expected after excluding food and energy costs. The report raised hopes that the Fed won't need to raise interest rates to keep inflation in check, and might even lower them.

The Dow Jones industrial average rose 111.09, or 0.84 percent, to 13,326.22. The S&P 500 gained 14.38, or 0.96 percent, to 1,505.85. The Nasdaq composite index rose 28.36, or 1.12 percent, to 2,562.10.

CME raises bid for CBOT to stave off rival offer

CHICAGO — Chicago Mercantile Exchange Holdings Inc. sweetened its offer Friday for the Chicago Board of Trade's parent company in an attempt to end a bidding war, adding more than $1 billion and pledging a stock buyback if the deal goes through.

CBOT Holdings Inc., which operates the Board of Trade, swiftly deemed the $9.2 billion bid superior to the unsolicited one by IntercontinentalExchange Holdings Inc., even though ICE's offer is valued at $10.1 billion. It recommended that shareholders accept the revised bid.

The counteroffer had been expected since ICE launched its surprise effort in March, disrupting plans announced five months earlier for the CME to buy CBOT for about $8 billion.

ThyssenKrupp chooses Alabama for steel plant

MOBILE, Ala. — German steelmaker ThyssenKrupp AG said Friday it will build a $4.19 billion steel plant in Alabama in a project that could create thousands of jobs.

Louisiana was the other finalist. Both states offered millions of dollars in incentives to get the plant.

Alabama Gov. Bob Riley said a "project this size, with this amount of economic impact, comes along perhaps once in a generation." But a steelworkers union official said the plant could hurt the industry, saying it would add unneeded production capacity.

China's trade surplus climbs steeply in April

BEIJING — China's monthly trade surplus more than doubled in April to nearly $17 billion, the government said Friday, adding to pressure on Beijing ahead of closely watched talks with Washington on its swollen trade gap.

The April trade gap of $16.88 billion was below February's $23.7 billion, the second-highest level on record, but in line with steady increases in monthly trade surpluses over the past year.

Chinese and U.S. trade envoys are due to meet May 23 in Washington for talks on Beijing's surpluses, currency controls, product piracy and other issues.

Thailand drops plan to sue over YouTube video

BANGKOK, Thailand — The Thai government scrapped plans to sue Google Inc. after the company agreed to remove video clips deemed insulting to the country's revered king, an official said Friday.

The government blocked access to YouTube, a popular video-sharing site owned by Google, on April 4, after Google turned down Thailand's request to remove the clips seen as offensive to King Bhumibol Adulyadej.

The ministry had planned to file a criminal lawsuit against Google on charges of lese-majeste, or offense against the monarchy, which carries a maximum penalty of 15 years in prison.