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U.S. stocks mixed ahead of inflation news

NEW YORK, May. 14 (UPI) -- U.S. stock indexes closed mixed Monday ahead of the U.S. government's release of the consumer price index, a key reading of inflation.

The mixed close also followed DaimlerChrysler AG's agreement to sell 80.1 percent its money-losing Chrysler unit to private-equity group Cerberus Capital Management LP for $7.4 billion.

The Dow Jones industrial average added 20.56 points, or 0.15 percent, to 13,346.78. The broader Standard & Poor's index shed 2.70, or 0.18 percent, to 1,503.15.

On the New York Stock Exchange, 1,160 stocks gained and 2,137 declined, on volume of 2.9 billion shares traded.

The technology-heavy Nasdaq Composite Index lost 15.78, or 0.62 percent, to 2,546.44.

In London, the FTSE 100 index of Britain's leading shares closed down 10.20, or 0.16 percent, to 6,555.50. Japan's benchmark Nikkei 225 index closed up 124.22, or 0.62 percent, to 17,677.94.

The 10-year U.S. Treasury note fell 5/32, yielding 4.69 percent, while the 30-year bond was down 5/32, yielding 4.86 percent.

The U.S. dollar rose to 120.35 yen from 120.12 yen in New York late Friday. The euro, in U.S. dollars, moved to $1.3544 from $1.3531.

World Bank: Wolfowitz broke ethics rules

WASHINGTON, May 14 (UPI) -- Paul Wolfowitz broke World Bank ethics rules in dictating the terms of his girlfriend's compensation, the bank's board said in a report released Monday.

The report, prepared by a seven-member board committee, recommended the full board determine whether Wolfowitz would "be able to provide the leadership needed to ensure that the bank continues to operate to the fullest extent possible in achieving its mandate."

The report found Wolfowitz demonstrated a "conflict of interest" when he intervened on behalf of Shaha Ali Riza.

The board's code of conduct defines a conflict of interest as a conflict between "personal interests and the performance of their official duties."

Wolfowitz has acknowledged helping arrange for Riza, a longtime bank employee, to get a pay raise, promotion and transfer to the U.S. State Department shortly after he assumed the World Bank presidency in June 2005.

He is scheduled to appear before the 24-member board Tuesday to explain his actions, The Wall Street Journal reported. The board is then scheduled to debate whether Wolfowitz should continue as the bank's chief executive.

Murdoch offers to add Bancroft to board

NEW YORK, May. 14 (UPI) -- Rupert Murdoch said he would add a Bancroft family member to News Corp.'s 15-member board if U.S. publisher Dow Jones & Co. accepts his $5 billion bid.

"I would hope that including a family member on the board would help alleviate any concerns about maintaining journalistic integrity and ensure good communication between the family and News Corp. going forward," the News Corp. chairman said in a 1,200-word letter to Bancroft family members.

Murdoch also said in the letter he would create an independent editorial board to ensure the editorial integrity of The Wall Street Journal and other Dow Jones editorial operations.

"I don't apologize for the fact that I've always had strong opinions and strong ideas about newspapers; but I have always respected the independence and integrity of the news organizations with which I am associated," he wrote.

News Corp. would keep current management in place, the letter said.

Murdoch's company would also bolster The Wall Street Journal's Washington political coverage, upgrade the newspaper's New York headquarters and invest in its international operations, the letter said.

Acura MDX, Ford Taurus 'top safety picks'

ARLINGTON, Va., May. 14 (UPI) -- The 2007 Acura MDX luxury sport-utility vehicle and the 2008 Ford Taurus sedan got top scores in crash tests, a U.S. insurance report said Monday.

The Insurance Institute for Highway Safety, a non-profit organization funded by auto insurers, gave its highest rating of "good" to the vehicles, built by Honda Motor Co. and Ford Motor Co., respectively.

The MDX, Taurus and Taurus twin Mercury Sable received the Institute's "top safety pick" award, given to vehicles that receive the highest scores in front-, side- and rear-impact tests and have electronic stability control.

"It's only relatively recently that research has shown the dramatic benefits of ESC in preventing crashes," institute President Adrian Lund said.

The Taurus replaces the Ford Five Hundred, which received the "top safety pick" designation in 2006 but was passed over in 2007 when the institute tightened award criteria to include stability control.

ESC is optional on the 2008 Taurus and Sable, which also offer side air bags with head protection as standard equipment, the institute said.