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GLOBAL MARKETS-Shares flat, dollar steady before Fed decision

Equities were flat while major currencies and commodities traded within recent ranges on Wednesday as investors awaited a statement from the U.S. Federal Reserve that they hope will shed light on its next move. The Fed is expected to leave policy ultra-loose following the central bank's meeting that ends later on Wednesday but may hint it will start scaling back its bond buying later this year if the U.S. labor market continues to improve. Fed Chairman Ben Bernanke's comment last month that the U.S. central bank could begin to curtail bond purchases at one of its "next few meetings" put up a speed bump for the equity rally and pushed bond yields higher. U.S. and European stocks were slightly lower by late morning. The MSCI world equity index, tracking shares in 45 countries, inched up 0.04 percent, while Tokyo's Nikkei index ended up 1.8 percent. U.S. Treasuries prices turned negative with yields rising to session highs. "The early morning action is not

China's Wanda aims to launch $1 billion NY hotel project this year: chairman

Wanda Group, China's largest commercial real estate developer, aims to invest about $1 billion to build a five-star hotel in New York as its third major investment outside its home market, Chairman Wang Jianlin said on Tuesday. _0"> The company is now in talks with potential partners for construction of a Wanda hotel and an adjacent apartment building in New York, Wang told Reuters.   "It will be announced this year, probably in the third quarter if everything goes smoothly," he said in an interview in his Beijing headquarters overlooking the Chinese capital's busiest boulevard. His comments followed the company's announcement of a 1 billion pound ($1.56 billion) British investment, including the acquisition of Sunseeker, Britain's largest luxury yacht maker by sales, and the construction of a 160-room Wanda hotel and an apartment building in London. The privately held conglomerate, with businesses ranging from hotels to shopping malls to cinemas

H&M says new collections selling well

H&M ( id="symbol_HMb.ST_0"> HMb.ST ), the world's second-largest fashion retailer, reported a sharp rise in sales so far in June, with new collections selling well. _0"> Chief Executive Karl-Johan Persson said that although H&M had entered the third quarter with higher inventories than planned, June promotions had not started earlier than last year and appetite for marked-down clothes was good but more notably, new collections were selling better than expected. "What's great to see is that it's primarily full-price, the new collections, that sells well," he told Reuters on Wednesday. "That's where we over-achieve. There may of course be pent-up demand from a cold spring, who knows. But it feels good." (Reporting by Anna Ringstrom; Editing by David Holmes)

Mortgage applications tumble as rates rise further: MBA

Interest rates on home mortgages rose last week to hit their highest level in over a year, sapping demand from potential homeowners, data from an industry group showed on Wednesday. _0"> Rates climbed 2 basis points to average 4.17 in the week ended June 14, according to the Mortgage Bankers Association. It was the highest level since March of last year. After hovering around record lows, rates have surged for six weeks in a row, pushed higher by worries that the Federal Reserve could slow its stimulus program sooner than had been expected. Rates have accelerated by 58 basis points since the start of May. The Fed's bond purchases have kept borrowing rates, including mortgages, low. Though mortgage rates remain low by historical standards, the ultra-cheap mortgages have helped lure buyers back into the market and worries have crept in that higher rates could disrupt the still-young housing recovery. The rise in rates appeared to hold back homebuyers as MBA's season

Airbus wins A350 order from Air France-KLM

Airbus ( id="symbol_EAD.PA_0">EAD.PA) sealed a long-awaited order for 25 A350-900 aircraft from Air France -KLM ( id="symbol_AIRF.PAAIRF.PA) worth $7.2 billion at list prices after Rolls-Royce ( id="symbol_RR.LRR.L) and the airline reached a deal over engine maintenance. _0"> The airline also took a further 25 options on the planes, the companies said at the Paris Airshow on Wednesday.   _1"> Industry sources had told Reuters on Tuesday the carrier was about to announce the deal after talks narrowly avoided collapse. _2"> Air France-KLM has been at loggerheads with suppliers over issues mainly including maintenance of the plane's Rolls-Royce engines ever since the deal was first mooted in 2011. Air France and Rolls had clashed over conflicting ideas for engine supply deals. The airline said on Wednesday, however, that it had signed a memorandum of understanding with Rolls-Royce ( id="symbol_RR.L_3">RR.L) to equip the

Obama says U.S. EU free trade deal can boost jobs and growth

President Barack Obama said on Wednesday a free trade agreement between the United States and the European Union could boost jobs and growth on both sides of the Atlantic and he also stressed the need for economic structural reforms. _0"> Speaking at a joint news conference with German Chancellor Angela Merkel in Berlin, Obama also said: "We have a profound stake in each other's success. We agreed that there is more work to do. Not only do we need to grow but we also need to reform our economies structurally." (Reporting by Jeff Mason and Roberta Rampton)

Commerzbank to cut around 3,000 jobs by 2016: trade union

Germany's trade union Verdi on Wednesday said it estimated that around 3,000 jobs will be cut at Commerzbank ( id="symbol_CBKG.DE_0">CBKG.DE) by 2016 under a negotiated severance deal. _0"> The trade union was negotiating job cuts in Germany . The 3,000 cuts do not include staff reductions at Hypothekenbank Frankfurt, a unit formerly known as Eurohypo.   (Reporting By Edward Taylor)