Nov. 16 (Bloomberg) -- Federal Reserve Chairman Ben S.Bernanke said economic “headwinds” of reduced bank lending anda weak labor market will probably restrain the pace of the U.S.economic recovery, warranting continued low borrowing costs.

“Significant economic challenges remain,” Bernanke saidin a speech today to the Economic Club of New York. “The flowof credit remains constrained, economic activity weak, andunemployment much too high. Future setbacks are possible.” Headded that the Fed is “attentive” to changes in the dollar’svalue and “will help ensure that the dollar is strong.”

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STOCKHOLM (Dow Jones)--Cisco Systems Inc. (CSCO) Monday raised its cash bid for Norwegian video-conferencing-equipment maker Tandberg ASA (TAA.OS) by 11% to 19 billion Norwegian kroner ($3.41 billion) and said the U.S. network equipment supplier said its offer was final.

"The new offer represents the offeror's final price for this transaction," Cisco said, adding that it will withdraw the offer if it doesn't achieve the desired 90% level of acceptances.

Nov. 16 (Bloomberg) -- Retail sales in the U.S. reboundedmore than forecast as demand for autos climbed, and a regionalgauge of manufacturing showed expansion for a fourth month,easing concern the recovery will cool after governmentincentives end.

Purchases increased 1.4 percent in October after a 2.3percent drop in September that was larger than the previouslyestimated, Commerce Department figures showed today inWashington. The Federal Reserve Bank of New York’s generaleconomic index, where positive readings signal growth, fell to23.5 this month from a five-year high of 34.6 in October.

* Credit Suisse upgrades stock, sees Q4 subs break-even

* Analysts see subscriber numbers turning point

* Pays back $1 bln on loan from $4.5 bln facility

* Sprint shares rise 11 pct to $3.44 (Recasts headline and first paragraph, adds analyst quotes,share price update)

NEW YORK, Nov 16 (Reuters) - Shares of Sprint Nextel Corp(S.N) rose 11 percent on Monday after an analyst upgraded thestock based on expectations that the No. 3 U.S. mobile serviceis turning the corner on subscriber losses.

ATLANTA — UPS Inc., the world's largest shipping carrier, expects to deliver roughly 22 million small packages on its busiest day this year — projected to be Dec. 21.

UPS, based in Atlanta, said Monday that's about a 40 percent increase over normal daily delivery volumes.

It says that for the entire holiday season, stretching from Thanksgiving to Christmas, it expects to deliver roughly 400 million packages around the world, up slightly compared to the 2008 holiday season.

FORT LAUDERDALE, Florida - A vintage 55-foot (16.7-meter) yacht named "Bull" and two smaller boats that once belonged to imprisoned financier Bernard Madoff are headed for the auction block, along with an even bigger yacht once owned by Madoff's right-hand man.

Madoff's 1969 Rybovitch sportfisher, a wooden boat meticulously restored, is the prize offering at Tuesday's private auction. As of Monday, 29 people had put up a $100,000 deposit for the opportunity to bid and more were expected to register, according to the U.S. Marshals Service.

Investors grew more upbeat about the economy Monday after retail sales rebounded more than expected in October and as a weaker dollar sent commodity prices higher.

Major stock indexes rose more than 1 percent to new 13-month highs, including the Dow Jones industrial average, which jumped 125 points. The Standard & Poor's 500 index topped 1,110, the first convincing move above 1,100 after hovering around that level for the past month.

NEW YORK, Nov 16 (Reuters) - U.S. gold futures hit a record$1,134.90 an ounce on Monday as a weakened dollar boosted riskappetite for asset classes across the board, while silver andplatinum group metals also scaled new highs. For the latest detailed report, click on [GOL/]. GOLD * COMEX December gold GCZ9 up $16.10, or 1.4 percent, at$1,132.80 an ounce at 10:50 a.m. EST (1550 GMT) on the NYMEX. * Range spanned from $1,119.50 to $1,134.90. * A broadly lower dollar supports gold.

EVERETT, Wash.—Boeing Co. said Monday it has finished fixing structural problems in two more of its 787 jetliners. The flaws had forced the airplane maker to further delay delivery of the highly anticipated plane earlier this year.

Chicago-based Boeing said last week it has completed similar repairs to the first of six test versions of the plane, which is built for fuel efficiency with lightweight carbon composite parts.

NEW YORK (Dow Jones)--U.S. stocks surged Monday, with all three major indexes hitting new intraday highs for 2009, as a report of robust economic growth in Japan sparked a rally in energy and materials firms.

The Dow Jones Industrial Average recently traded up 135 points, or 1.3%, to 10405, with 29 of its 30 components in the green. Alcoa, Caterpillar and Exxon Mobil were among its leading gainers, while Merck rose 2.7% even after a new study showed its Zetia cholesterol drug was inferior to Abbott Laboratories' Niaspan at clearing clogged arteries.

America's biggest car manufacturer, General Motors, has revealed a $1.2bn loss (£717.5m) but has seen its financial position progress to a point where it will begin paying back billions of dollars in government aid by the end of this year.

The deficit, for a period running from 10 July to 30 September, was a sharp improvement on previous quarters. Motor sales were aided by the US government's "cash for clunkers" program, which subsidised purchases of new vehicles over the summer.

Retail sales rose more than expected in October due largely to a big rebound in auto sales. But broader consumer spending remains under pressure, raising questions about the durability of the recovery.

The Commerce Department said Monday that retail sales rose 1.4 percent last month. Economists surveyed by Thomson Reuters had expected a gain of 1 percent.

But excluding auto sales, retail demand rose 0.2 percent, half of the expected 0.4 percent rise. The government also revised the September performance down to show a 2.3 percent decline, from the 1.5 percent drop initially reported.

Comcast, the nation's largest cable company, and General Electric, the giant industrial conglomerate, are finalizing an agreement that would create a new media titan anchored by NBC Universal. The deal would instantly remake the entertainment industry landscape. Negotiations are "moving in the right direction" but are not complete, sources close to the deal tell DailyFinance. Sunday was the first day of Vivendi's annual window -- from Nov. 15 to Dec. 10 each year -- to exercise its option to sell its 20% stake in NBC Universal.

SANTA CLARA, Calif. (AP) - Intel Corp., the world's biggest chip company, says it will raise its dividend by 12.5 percent starting next year.

That brings its quarterly payment to 15.75 cents per share, up from 14 cents.

The announcement comes despite heavy legal costs for Intel, which provides the microprocessors that run personal computers. The company said last week that it will pay rival Advanced Micro Devices Inc. $1.25 billion to settle claims that it used its market clout to elbow AMD out of the competition.

BATON ROUGE, La. -- A group considering whether a moratorium on new oyster leases should be lifted is meeting on Monday.

Last year, the Louisiana Legislature told the Louisiana Wildlife and Fisheries Commission to set up rules about lifting the moratorium.

A committee drawing up recommendations will meet Monday for the fifth time in Baton Rouge. The committee is made up of representatives from the Louisiana Department of Natural Resources, the Louisiana Oyster Task Force, the Louisiana Landowner's Association, the Louisiana Oil and Gas Association and the Louisiana Mid-Continent Oil and Gas Association.

NEW YORK (Reuters) - Beazer Homes USA Inc (BZH.N) said the U.S. Securities and Exchange Commission might try to collect pay from its chief executive officer under a section of the Sarbanes-Oxley Act that allows the government to claim compensation for years for which financial results were restated.

Beazer, whose shares fell more than 4 percent, had restated its results for the years 1998-2006 and for the quarters ended December 31, 2006, and March 31, 2007, after identifying several weaknesses in its internal controls over financial reporting. The homebuilder declined to comment on Monday on this latest SEC action.

Gasoline prices in Massachusetts dropped by 3 cents this week after going for four straight week, according to AAA Southern New England.

AAA’s Nov. 16 survey of prices in Massachusetts found that self-serve regular unleaded gas averaged $2.61 per gallon, down 3 cents from last week.

The current price is 2 cents below the national average for self-serve unleaded of $2.63, per the survey.

Meanwhile, one year ago at this time the Massachusetts average price was $2.08, 53 cents lower than today’s average.

Social-media site Twitter plans to scrap its hand-picked list of "suggested users" to follow after controversy erupted over the selection of people on the list, a company executive said Monday.

Twitter co-founder Biz Stone said the company was seeking a more systematic way to introduce its prominent posters, including sports figures, celebrities and politicians, to newcomers to the site.

"That list will be going away," Stone told reporters on the sidelines of a conference for young entrepreneurs in Malaysia's capital, Putrajaya. "In its stead will be something that is more programmatically chosen, something that actually delivers more relevant suggestions."