European Stock-Index Futures Are Little Changed; BHP May Slip

By Adria Cimino

June 25 (Bloomberg) -- European stock-index futures were little changed before the Federal Reserve ends a two-day meeting at which policy makers are expected to halt a run of seven interest-rate cuts.

BHP Billiton Ltd, the world's biggest mining company, and Rio Tinto Group dropped in Australia as metals prices retreated. Scor SE may gain after UBS AG recommended shares of France's biggest reinsurer.

Futures on the Dow Jones Euro Stoxx 50 Index, a benchmark for the euro region, fell 2, or less than 0.1 percent, to 3,432 at 7:05 a.m. in London. The U.K.'s FTSE 100 Index may decrease 9, according to Cantor Index, a betting firm.

Fed Chairman Ben S. Bernanke may signal today that inflation is now the biggest risk facing the economy as the central bank holds the benchmark rate at 2 percent today, stopping the fastest series of reductions in two decades, according to economists surveyed by Bloomberg News.

The Stoxx 600 has tumbled 19 percent this year on concern accelerating inflation, record oil prices and credit-related losses approaching $400 billion will erode economic and profit growth.

U.S. stocks retreated to a three-month low yesterday after consumer confidence weakened and United Parcel Service Inc. said rising fuel costs will reduce profit. Asian stocks today fell for a fifth day.

BHP, Rio Tinto

BHP Billiton sank 4.1 percent in Australia, while Rio Tinto, the world's third-largest mining company, lost 3.7 percent.

Platinum futures in Tokyo headed for their longest losing streak in 10 months. Gold also slid.

Scor was upgraded to ``buy'' from ``neutral'' at UBS, which cited low exposure to U.S. windstorms and an ``attractive'' earnings profile.

Swiss Reinsurance Co., the world's largest reinsurer, was raised to ``neutral'' from ``sell'' at UBS.

J.D. Wetherspoon Plc, the owner of almost 700 U.K. pubs, and Mitchells & Butlers Plc may climb after Goldman Sachs Group Inc. raised its recommendation on the shares.

J.D. Wetherspoon and Mitchells & Butlers, the owner of O'Neill's pubs and Browns restaurants, were lifted to ``neutral'' from ``sell'' at Goldman.

Escada AG may be active. Tchibo owners Wolfgang and Michael Herz are buying a ``significant minority interest'' in Escada, a German luxury fashion brand. Escada also named former Hugo Boss AG Chief Executive Officer Bruno Saelzer as CEO.

Swatch Group AG, the world's biggest watchmaker, may gain after Dresdner Kleinwort raised its recommendation on the stock to ``buy'' from ``add.''

Bradford & Bingley Plc, a U.K. mortgage lender, and Alliance & Leicester Plc, the British bank that gets a quarter of revenue from mortgages and savings, were both raised to ``equal-weight'' from ``underweight'' at Morgan Stanley.

To contact the reporter on this story: Adria Cimino in Paris at acimino1@bloomberg.net.