NEW YORK, Nov 24 (Reuters) – U.S. gold futures ended higher in very heavy trade Tuesday, driven by option-related buying and fund interest, and investors continued see pullbacks in the metal as buying opportunities, traders said. For the latest detailed report, click on [GOL/]. GOLD * COMEX December gold GCZ9 settles up $1.10 at $1,165.80 an ounce on the NYMEX. * Ranged from $1,157.70 to $1,171.70. December hit an all-time high $1,174 on Monday. * Gold futures supported by options-related buying after Monday’s option expiration – George Gero at RBC. * Bullion holds gains in spite of a slight dollar rise amid an equities market retreat. * Gold market sees drops as opportunities to buy absent a major correction – Miguel Perez-Santalla at Heraeus. * Ethiopia signed a deal for a Saudi firm to extract an estimated 20 tonnes of recoverable gold found in the Horn of African country last month. [ID:nGEE5AN1WS] * Gold-to-oil ratio above 15. It was last at 15.34, up from the previous session’s 15, as oil drops 2 percent. * COMEX estimated final volume at a very busy 323,712 lots, driven by options-related buying. * Spot gold XAU= at $1,167.50 an ounce at 3:23 p.m. EST (2023 GMT), compared with $1,165.85 late in the previous session in New York. * London’s afternoon gold fix XAUFIX= at $1,163.25 an ounce. * For a gold price interactive graphic: here > SILVER * December silver SIZ9 ends down 15.5 cents at $18.455 an ounce, as investors lock in profits. * Technical resistance seen at breaking above the $19 an ounce level – traders * Ranged from $18.330 to $18.680. * COMEX estimated final volume at a heavy 78,379 lots, partially due to December option expiration on Monday. * Spot silver XAG= was at $18.52, against $18.59 in the previous session in New York. * London silver fix XAGFIX= at $18.57. PLATINUM * January platinum PLF0 finishes down $23.80, or 1.6 percent, at $1,443.80 an ounce as the market takes a breather after Monday’s rally. * Spot platinum XPT= $1,446.50 an ounce. PALLADIUM * December palladium PAZ9 closes down $4.05, or 1.1 percent, at $369.25 an ounce on platinum’s weakness. * Spot palladium XPD= $369.75 an ounce. Close Change Pct 2008 YTD Chg Close % Chg US gold GCZ9 1165.80 1.1 0.1 884.3 31.8 US silver SIZ9 18.455 -0.155 -0.8 11.295 63.4 US platinum PLF0 1443.80 -23.80 -1.6 941.50 53.4 US palladium PAZ9 369.25 -4.05 -1.1 188.70 95.7 Prices at 3:21 p.m. EST (2021 GMT) Gold XAU= 1167.00 1.15 0.1 878.20 32.9 Silver XAG= 18.50 -0.09 -0.5 11.30 63.7 Platinum XPT= 1443.50 -11.00 -0.8 924.50 56.1 Palladium XPD= 369.75 0.750 0.2 184.50 100.4 Gold Fix XAUFIX= 1163.25 -7.00 -0.6 836.50 39.1 Silver Fix XAGFIX= 18.57 -19.00 -1.0 14.76 25.8 Platinum Fix XPTFIX= 1458.00 5.00 0.3 1529 -4.6 Palladium FixXPDFIX= 371.00 0.50 0.1 365.0 1.6 (Reporting by Frank Tang ; Editing by Lisa Shumaker) ((frank.tang@thomsonreuters.com; +1 646 223 6126; Reuters Messaging: frank.tang.reuters.com@reuters.net)) ((For help: Click “Contact Us” in your desk top, click here [HELP] or call 1-800-738-8377 for Reuters Products and 1-888-463-3383 for Thomson products; For client training: training.americas@thomsonreuters.com ; +1 646-223-5546)) © Thomson Reuters 2009 All rights reserved Originally posted here: US gold ends up on options-related buying, funds (at Reuters)

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(Adds details, background) By Pedro da Costa and Mark Felsenthal WASHINGTON, Nov 24 (Reuters) – Federal Reserve officials are increasingly confident the U.S. economic recovery is sustainable, but they do not see employment picking up soon, according to minutes from their November meeting released on Tuesday. Policymakers also expressed concern about possible adverse repercussions from their vow to keep interest rates low for an extended period, including unwanted speculation in financial markets. “Members noted the possibility that some negative side effects might result from the maintenance of very low short-term interest rates,” the central bank reported in the minutes. Some investors and policymakers have argued that the Fed’s policy of rock-bottom borrowing costs may be driving investors to beef up their bets by using the falling dollar to fund their trades. President Barack Obama, during a recent visit to Asia, was lectured on the subject by top government officials in China. The Federal Reserve Open Market Committee, the U.S. central bank’s policy-setting body, did not believe such speculative activity had taken place to date, contending that the dollar’s decline had thus far been “orderly.” “Any tendency for dollar depreciation to intensify or to put significant upward pressure on inflation would bear close watching,” the minutes said. The U.S. currency dropped to a 15-month low against a basket of major currencies last week. NO INFLATION HERE For now, the minutes indicated policymakers are not widely concerned about inflation in the medium term. This was already evident from a string of recent speeches in which even the hawkish regional presidents of the Dallas and Philadelphia Feds have expressed dovish views on the prospects for a sustained rise in consumer prices. The “central tendency” forecasts of policymakers were slightly more sanguine on the economy’s prospects but not dramatically so. Gross domestic product was expected to shrink substantially less this year than previously estimated. Similarly, the jobless rate, currently at a 26-year high of 10.2 percent, was now expected to come down more quickly than policymakers believed back in June. “Most participants now view the risks to their growth forecasts as being roughly balanced rather than tilted to the downside,” the minutes said. Nonetheless, there was a sense that any turnaround in the labor market would not happen quickly enough to stem the rising tide of joblessness. “The weakness in labor market conditions remained an important concern,” the minutes said. “The considerable decelerations in wages and unit labor costs this year were cited as factors putting downward pressure on inflation.”  Continued… Visit link: UPDATE – Fed confident on U.S. growth, leery of policy risks (at Reuters)

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* Newly appointed director in favor of independent c.bank * Mendes says forex rate should be set by financial market * Mendes shuns calls for capital controls in Brazil (Recasts, adds full senate vote) BRASILIA, Nov 24 (Reuters) – Brazil’s newly appointed central bank director of monetary policy said on Tuesday he was in favor of formal central bank independence from the government. Aldo Mendes also told a senate commission he was against capital controls and said the ideal level for the exchange rate should be set by financial markets. Mendes’ appointment was approved by the senate’s economic affairs commission earlier on Tuesday and passed a full senate floor vote by a 41-11 margin. Some analysts and investors have said formal independence would ease concerns of political meddling in the central bank, even as Brazilian policymakers effectively implement rules without government interference. “Part of the success of the economic policy today is due to the operational autonomy … the de facto autonomy that exists today,” Mendes said in testimony to the senate commission. “In relation to formal central bank autonomy, I am in favor of that, in conceptual terms, but the debate is much larger.” Mendes, a 51-year-old former executive of state-controlled bank Banco do Brasil ( BBAS3.SA ), was nominated last week to replace Mario Toros, who stepped down for personal reasons. His experience as a career employee at a public bank raised concerns he would have a more dovish stance on interest rates, but his comments helped ease some of those fears. “This was just a confirmation that Mendes is neutral on the monetary policy outlook, which is good for the market,” said Pedro Tuesta, an economist at research firm 4Cast Inc in Washington. When asked if he agreed with Finance Minister Guido Mantega that the ideal rate for the real ( BRBY ) was close to 2.6 per dollar, Mendes told a senate commission the “ideal rate comes from demand and supply” and should be fixed by the market. Mantega has said the central bank has room to implement more measures to ease gains in the real, which has surged more than 30 percent against the dollar so far in 2009, echoing calls from business leaders and exporters. Mendes added that foreign investments are “very welcome” in Brazil and putting rules to artificially keep overseas funds in the country for a long time would send the wrong signal. Some politicians and academics have called for measures to restrict short-term foreign investments into the country, while also putting a ‘quarantine’ on them to force funds to stay in Brazil, in a bid to ease volatility in currency markets. “I don’t believe this would be a good policy,” Mendes said. “We would be imposing barriers. Foreign capital is very much welcome to our country.” The senate commission voted 23-2 in favor of Mendes’ appointment, with one abstention. (Reporting by Isabel Versiani and Natuza Nery; Writing by Elzio Barreto; Editing by James Dalgleish) ((elzio.barreto@thomsonreuters.com; Tel: +55 11 5644-7725; Reuters Messaging: elzio.barreto.reuters.com@reuters.net)) Originally posted here: UPDATE – New Brazil c.bank director favors independent bank (at Reuters)

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LONDON (AFP) – The Bank of England admitted Tuesday it lent a total of 61.6 billion pounds to Royal Bank of Scotland and HBOS in secret during last year’s financial crisis, adding that the cash had been repaid. The British central bank revealed the loans, equivalent to 68 billion euros or 102 billion dollars, in a statement to coincide with governor Mervyn King’s appearance before a Treasury Select Committee hearing. The BoE said that in autumn 2008 it had offered emergency lending to Royal Bank of Scotland (RBS) and HBOS bank, which is now part of Lloyds Banking Group (LBG). The bank said the loans could now be revealed because it judged that there was no longer a risk of a “potentially systemic disturbance” to the financial system. “Now that RBS has signed up for the asset protection scheme and Lloyds has embarked on its alternative strategy for capital raising, the bank judges that there is no longer a need for the assistance to remain secret,” the BoE said. RBS borrowed a maximum of 36.6 billion pounds on October 17, 2008, and HBOS borrowed a maximum of 25.4 billion pounds on November 13, 2008. The groups repaid the cash in December and January respectively. Junior finance minister Paul Myners defended the move, and declined to say if other secret loans had been made to banks. “This is precisely what a central bank does in terms of providing lender of last resort facilities to support the banking system,” he told Channel 4. “The future of the banks matters to parliament and parliament recognises that the Bank of England occasionally needs to act covertly and has given the Bank of England the legal power to do that.” Struggling HBOS was bought by rival Lloyds TSB in a government-brokered deal that created Lloyds Banking Group earlier this year. However, LBG fell under state control as a result of the global financial crisis and is now 43-percent owned by the taxpayer. Royal Bank of Scotland was also ravaged by the credit crunch and the takeover of Dutch giant ABN Amro at the top of the market in 2007. The state now owns 84 percent of RBS after an enormous bailout. Another British bank, Northern Rock, was nationalised in February 2008 after it ran into severe funding problems because of the global credit crunch. Read more: Bank of England reveals huge secret loans to RBS, HBOS

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OTTAWA (Reuters) – Teck Resources Ltd is comfortable with Suncor Energy Inc’s decision not to fast track development at the planned Fort Hills oil sands project, Chief Executive Don Lindsay said on Tuesday. Lindsay told reporters that he still considers its 20 percent stake in the Fort Hills project to be a core holding for the mining company, though Suncor, the project’s operator, has put off making a development decision on the project for at least another year. “We are very supportive of Suncor’s decision,” Lindsay told reporters following a speech in Ottawa. The Fort Hills oil sands mine was delayed a year ago by Petro-Canada when costs skyrocketed. Suncor, which assumed a 60 percent Fort Hills stake when it bought Petro-Canada in August, said earlier this month that it did not yet know when it would resume work at the site, opting to complete work on other projects that had been halted during the economic crisis. The expected cost of the Fort Hills mine, once pegged at C$14 billion ($13.4 billion), has dropped sharply since the recession and falling oil prices forced most operators in the oil-rich region of northern Alberta to suspend construction on new projects, freeing up scarce labor and materials. UTS Energy Corp , which holds the remaining 20 percent stake in Fort Hills, said earlier this year that it may cost only C$8 billion to build a facility capable of producing 160,000 barrels per day, with further savings available if the size of the project was halved. Teck and UTS have also teamed up to acquire other leases in Alberta’s oil sands region, which contains more than 170 billion barrels of oil, the biggest reserves outside the Middle East. Earlier this month, UTS sold its half share in what it calls the Lease 421 area to Imperial Oil Ltd and Exxon Mobil Corp for C$250 million. However Teck, which is trying to cut a debt load that ballooned due largely to last year’s acquisition of coal producer Fording, plans to keep its stake in the property. “We think it’s an excellent lease and we’ll be hanging onto it,” Lindsay said. (Reporting Randall Palmer, writing by Scott Haggett; Editing by Jeffrey Hodgson) Read the original: Teck content with Suncor’s Fort Hills delay

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* US 1-month bill sale captures highest bidding in a month * Dollar 3-month Libor hits record low, euro rates rise * European traders wary of ECB’s moves toward policy exit (Updates market action; dateline previously LONDON) By Richard Leong and Kirsten Donovan NEW YORK/LONDON, Nov 24 (Reuters) – The rates on most U.S. Treasury bills traded steady to slightly higher on Tuesday amid shrinking supply and intense year-end appetite for the ultra low-risk, cash-like investments. Investors snatched up $32 billion of one-month T-bills at a high rate of 0.06 percent, 1 basis point higher than last week’s auction for this maturity. See [ID;nTAR000548] Bidding for the latest one-month supply was the strongest in a month. The bid-to-cover ratio came in at 4.38, higher than 3.79 last week but below 4.62 a month ago. USAUCTION7 Fund managers who reaped profits on a rebound on Wall Street and other risky assets this year have been socking their gains into T-bills in an effort to protect them, analysts said. “Many people who made money are shutting down and putting money into riskless assets,” said Eric Lascelles, chief economics and rates strategist with TD Securities in Toronto. The tremendous bids for T-bills have occurred even at the expense of money market funds, which had traditionally been viewed as a safe haven to park cash until they were roiled by Lehman Brothers’ collapse during last year’s credit crisis. The Investment Company Institute reported money market fund assets fell $71.2 billion in October, following a $126.9 billion drop in September. For more, see [ID:nWAT013937] In the London interbank market, benchmark three-month dollar Libor rates USD3MFSR= edged to a record low of 0.26063 percent, only 1 basis point away from the top end of the Federal Reserve’s current range on its policy rate. The U.S. central bank has signaled it will hold short-term rates near zero in a bid to foster an economic recovery. On Tuesday, it released minutes of its November policy meeting, which showed policy makers are increasingly confident in a durable U.S. recovery even though they do not see employment picking up soon. For more, see [ID:nWEQ003609] EURO RATES RISE Across the Atlantic, interbank lending rates for euros edged higher with central bank exit policy in focus after the European Central Bank last week took a first tentative step toward implementing tighter monetary conditions. Three-month euro Libor rates EUR3MFSR= were marginally higher at 0.67688 percent, while one-year rates EUR1YFSR= edged up to 1.22125 percent. See [ID:nGEE5AN142] One-year euro Libor rates EUR1YFSR= edged up again after posting their biggest daily rise on Monday since early June. The ECB said last Friday it would tighten its rating requirements for banks using asset-backed securities as security in its lending operations [ID:nLAG005930]. The announcement, which analysts said may signal the start of the central bank’s exit policy, pushed six- and 12-month Eonia EUREON6M=EUREON1Y= rates higher and saw interest rate futures FEIM0FEIZ0 sell off, pushing up implied rates. “Everything the ECB has done so far has been in the guise of expansion, of getting liquidity into the market and widening the collateral base as much as possible,” said ING rate strategist Padhraic Garvey in Amsterdam. “For the first time they’ve clawed some of that back so if you were to point to the beginning (of an exit), this would be it.” Despite tougher collateral requirements, the ECB will offer long-term funds to banks, analysts said. It is expected to allot 125 billion euros in its one-year refinancing operation in December, roughly two-thirds more than the total banks took in September, according to a Reuters poll of traders released on Tuesday. For more, [ID:nGEE5AN1SJ] (Editing by Leslie Adler) ((richard.leong@thomsonreuters.com ; +1 646 223 6313; Reuters Messaging: richard.leong.reuters.com@reuters.net )) © Thomson Reuters 2009 All rights reserved The rest is here: MONEY MARKETS-U.S. bill rates hold as demand stays strong (at Reuters)

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(Adds more details from U.S Treasury) By Alister Bull WASHINGTON, Nov 24 (Reuters) – The United States and India will establish a new economic partnership which U.S. Treasury Secretary Timothy Geithner will help formally launch in India early next year, the White House said on Tuesday. The new partnership aims to strengthen economic ties between the two nations and echoes the strategic economic dialogue Washington established with China in 2006. U.S. President Barack Obama, hosting his first state visit since taking office in January, earlier met Indian Prime Minister Manmohan Singh and said that the world’s largest democracy would be a key source for U.S. growth. “India will play a pivotal role in meeting the major challenges we face today. And this includes my top economic priority: creating good jobs with good wages for the American people,” he told a joint White House press conference. The Treasury said the new partnership represented “a significant elevation” of the existing bilateral economic relationship between the two countries. “India is an emerging global power and a country with which the United States has an increasingly important economic and financial relationship,” Geithner said in a statement. Representatives will meet annually at cabinet level, alternately in the United States and India, with working groups getting together throughout the year to push ahead on specific economic policy areas. The Chinese-U.S. forum, created by Obama’s predecessor George W. Bush, gathers twice a year. The United States had a modest $3.2 billion trade deficit with India in the year to September, compared with its $165.8 billion trade gap with China. Singh echoed Obama’s hope the two countries could build a mutually beneficial economic relationship. He said the transfer of advance technology could open doors for U.S. investment into fast-growing Indian markets. “The lifting of U.S. export controls on high technology exports to India will open vast opportunities for giant research and development efforts,” said Singh, after Obama reaffirmed that he intended to fully implement a civil nuclear agreement between the two nations. “It will enable U.S. industry to benefit from the rapid economic and technological transformation that is now underway in our country,” Singh said. (Editing by Alan Elsner ) ((See also USA-ECONOMY/INDIA (FACTBOX) [nN24299011])) ((+1-202-354-5820, email: alister.bull@thomsonreuters.com)) Read this articl e: UPDATE – U.S. and India agree on new economic partnership (at Reuters)

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VANCOUVER, British Columbia (Reuters) – A union representing train engineers at Canadian National Railway Co is unhappy with the railway’s decision to impose labor contract terms on its members and may consider the move tantamount to a lockout, the union’s president said on Tuesday. The Teamsters Canada Rail Conference, which represents 1,700 engineers at Canada’s biggest railroad, is getting advice from its lawyers and will likely issue a statement later in the day, President Daniel Shewchuk said. “We are not very happy at all… it is a bit threatening,” Shewchuk told Reuters. “What we may be considering is that in essence you (CN) have locked us out as we don’t have to accept the changes you have imposed on us,” he said. CN said late on Monday it will raise locomotive engineers’ wages by 1.5 percent beginning November 28, but also hike their monthly mileage cap, the upper limit on the number of miles they must travel on the job, to 4,300 miles from 3,800. It said it had decided to impose these terms to “move the company forward” after holding on-again, off-again contract talks with the Teamsters for more than a year. The engineers’ last contract with CN expired at the end of 2008. “CN’s notice yesterday to the (Teamsters) is by no means a lockout and we expect our engineers to report to their assignments and carry out their duties as required,” CN spokesman Mark Hallman said in an emailed statement. CN said it would still prefer to resolve the dispute without a labor disruption. The two sides have the right under Canadian labor law to issue a 72-hour notice for a strike or lockout. The union has a strike mandate from its members. The higher cap could increase the number of days the engineers would have to be available for work each month, but CN says they would be paid more with the adjusted wage rate. The carrier said it made three offers, including one with a status quo mileage cap and another that would put the unsettled issues to binding arbitration. The union rejected those proposals. Shares in CN were 56 Canadian cents lower at C$56.91 on the Toronto Stock Exchange on Tuesday afternoon. Lumber futures on the Chicago Mercantile Exchange were up sharply in thin holiday-week trade on Tuesday on concerns CN workers may strike. The contract dispute does not involve CN’s unionized locomotive engineers in the United States. (Reporting by Nicole Mordant; Editing by Jeffrey Hodgson) Follow this link: Union mulling options after CN Rail imposes terms

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WASHINGTON (AFP) – Shoppers are expected to come out in force but cling a bit tighter to their wallets for the kickoff of the holiday gift-giving season this weekend, new surveys showed Tuesday. The National Retail Federation said it expects 134 million people to be out shopping on “Black Friday,” the big shopping day after Thursday’s Thanksgiving Day holiday, and the following Saturday and Sunday. “Regardless of what we?ve already seen these last few weeks in terms of promotions, retailers still have a few tricks up their sleeves to excite Black Friday shoppers,” said Tracy Mullin, NRF president and chief executive. “With retailers fully aware that shoppers are looking for incredible deals, Americans can expect huge sales on popular items like toys, electronics and apparel.” The retail group confirmed its forecast calling for a one percent decline in holiday spending to 437.6 billion dollars. A separate report by the International Council of Shopping Centers showed 26 percent of US households will see members out shopping on Friday, including 36 percent of consumers aged between 18 and 34 years old. The ICSC survey showed one third of shoppers may be at the stores for early-bird specials between 4 am and 8 am. “Bargain Friday shopping has become a tradition in America when consumers search for the best bargains that retailers offer,” said Michael Niemira, ICSC director of research and chief economist. “Bargain Friday’s performance typically is not a precursor of the entire holiday season’s sales picture — which ICSC projects will post a modest gain — yet ICSC anticipates a very strong Bargain Friday.” ICSC predicts a rise in overall holiday retail sales of between one and two percent for 2009. A Western Union survey meanwhile found that 65 percent of Americans plan to skip Black Friday holiday shopping this year, citing crowded stores as a major reason. The survey also found that 51 percent of Americans said cash is the gift they would most like to receive this year. Continue reading here: More shoppers, cautious spending seen for Black Friday

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PARIS (Reuters) – Half of the losses suffered by banks could still be hidden in their balance sheets, more so in Europe than in the United States, the International Monetary Fund’s chief, Dominique Strauss-Kahn, was quoted as saying on Tuesday. In an interview with French newspaper Le Figaro, Strauss-Kahn also said the IMF thought the euro currency was probably a bit too strong. “There are still some important losses that have not been unveiled,” Strauss-Kahn was quoted as saying in response to a question on banks, according to excerpts of the interview that were sent to media ahead of publication on Wednesday. “It’s possible that 50 percent (of bank losses) are still hidden in their balance sheets. The proportion is greater in Europe than in the United States,” he said. Asked about currencies, Strauss-Kahn noted that Europeans were the ones who have been complaining the most about the strength of their currency. “The IMF also thinks that the euro is probably a bit too strong, but it’s very difficult to determine in a way that is unquestionable the level at which currencies would be balanced,” he said. “Europeans must, however, better affirm their economic strategy if they do not want to let the Sino-American couple dominate the global debate for the next 20 years,” he said. Strauss-Kahn said the two crucial factors to achieve the status of major economic power today are a big population and technological advances. “The enlarged Europe has a big population, with 500 million inhabitants, but on the technological front things have not moved on sufficiently since the Lisbon strategy was launched in 2002,” he said, referring to the 27-member European Union. The Lisbon strategy was an EU roadmap that was supposed to cut red tape, promote growth and make the bloc the world’s most innovative region. “I note that the technological debate, which today is focused particularly on energy, is much more vigorous in the United States than in Europe,” Strauss-Kahn said. (Reporting by Estelle Shirbon; Editing by Leslie Adler) View original post here: Half of banks’ losses may be unknown: IMF chief (Reuters)

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(Adds quotes) PARIS, Nov 24 (Reuters) – Half of the losses suffered by banks could still be hidden in their balance sheets, more so in Europe than in the United States, the International Monetary Fund’s chief, Dominique Strauss-Kahn, was quoted as saying on Tuesday. In an interview with French newspaper Le Figaro, Strauss-Kahn also said the IMF thought the euro currency was probably a bit too strong. “There are still some important losses that have not been unveiled,” Strauss-Kahn was quoted as saying in response to a question on banks, according to excerpts of the interview that were sent to media ahead of publication on Wednesday. “It’s possible that 50 percent (of bank losses) are still hidden in their balance sheets. The proportion is greater in Europe than in the United States,” he said. Asked about currencies, Strauss-Kahn noted that Europeans were the ones who have been complaining the most about the strength of their currency. “The IMF also thinks that the euro is probably a bit too strong, but it’s very difficult to determine in a way that is unquestionable the level at which currencies would be balanced,” he said. “Europeans must, however, better affirm their economic strategy if they do not want to let the Sino-American couple dominate the global debate for the next 20 years,” he said. Strauss-Kahn said the two crucial factors to achieve the status of major economic power today are a big population and technological advances. “The enlarged Europe has a big population, with 500 million inhabitants, but on the technological front things have not moved on sufficiently since the Lisbon strategy was launched in 2002,” he said, referring to the 27-member European Union. The Lisbon strategy was an EU roadmap that was supposed to cut red tape, promote growth and make the bloc the world’s most innovative region. “I note that the technological debate, which today is focused particularly on energy, is much more vigorous in the United States than in Europe,” Strauss-Kahn said. (Reporting by Estelle Shirbon; Editing by Leslie Adler) ((estelle.shirbon@reuters.com, +33 1 4949 5342, Reuters Messaging: estelle.shirbon.reuters.com@reuters.net)) He advised Europeans to better affirm their economic strategy if they wanted to avoid seeing the global debate dominated by China and the United States for the next 20 years. (Reporting by Estelle Shirbon, editing by Anna Willard) ((estelle.shirbon@reuters.com, +33 1 4949 5342, Reuters Messaging: estelle.shirbon.reuters.com@reuters.net)) See the original post: UPDATE – Half of banks’ losses may be unknown -IMF chief (at Reuters)

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* Lower U.S. Q3 GDP lifts yen vs dollar * U.S. consumer confidence higher than expected * Higher-yielding currencies such as Aussie dollar fall (Updates prices, adds comment, changes byline) By Wanfeng Zhou NEW YORK, Nov 24 (Reuters) – The dollar fell to a six-week low against the yen on Tuesday after a mixed bag of U.S. data kept worries about an economic recovery alive, enhancing the safe-haven appeal of the Japanese currency. The greenback, however, held steady against the euro as declines in the U.S. stock market dented risk appetite and investors were reluctant to place big bets before the Thanksgiving holiday on Thursday. The U.S. economy grew more slowly than first thought in the third quarter, the Commerce Department said. In another report from the Conference Board, a private research group, the consumer confidence index edged higher, but still pointed to weak sentiment about the labor market. For more, see [ID:nN24296971]. Kathy Lien, director of research at GFT Forex in New York, said the mixed economic reports this morning have “instilled a negative tone across financial markets.” But overall, “the markets are very hesitant to take the dollar to any fresh lows, particularly against the euro and the other key currencies,” she added. In afternoon trading, the dollar fell 0.5 percent to 88.48 yen, after hitting a session low at 88.36 JPY= , the lowest in about six weeks, according to Reuters data. The euro rose 0.1 percent to $1.4975 EUR= , in choppy trading, but fell 0.5 percent to 132.49 yen. EURJPY=R In its second estimate of third-quarter gross domestic product, the Commerce Department said on Tuesday that the economy expanded at an annual rate of 2.8 percent, rather than the 3.5 percent pace it estimated last month. ————————————————————– For a graphic on the impact of U.S. real GDP on the dollar, click on link.reuters.com/wem43g ————————————————————– “This (GDP) number is slightly negative for risk appetite because of the downgrade in the personal consumption number,” said Jacob Oubina, senior currency strategist at Forex.com in Bedminster, New Jersey. Separately, the Conference Board’s index of consumer attitudes increased slightly to to 49.5 in November from 48.7 in October, while the Standard & Poor’s/Case-Shiller index of home prices in 20 metropolitan areas rose 0.3 percent in September. See [ID:nN24297263].  Continued… Read more from the original source: FOREX-Dollar hits 6-week low vs yen on recovery concern (at Reuters)

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By Dirk Lammers, The Associated Press Oil prices fell below US$76 a barrel Tuesday with new data showing a slow U.S. economic recovery and consumer confidence that remains lukewarm at best. The dollar also gained against other major currencies, which can keep energy prices in check. Benchmark crude for December delivery fell $1.63 to $75.93 a barrel on the New York Mercantile Exchange. The Commerce Department said the economy grew at a rate of 2.8 per cent between July and September, short of estimates for 3.5 per cent growth released just a month ago. Consumers are not spending much, commercial construction was weak, businesses trimmed inventories. The lack of consumer spending was partly explained in another report released Tuesday. Americans’ confidence in the economy improved slightly in November from October, but shoppers remain gloomy heading into the holiday shopping season, according to the monthly survey released by the Conference Board. The lack of industrial and consumer activity has played out in weekly oil inventory reports from the Energy Department, with supplies of crude in storage growing. The next weekly report arrives Wednesday, and expectations are that crude and gasoline supplies grew again last week. Retail prices edged lower again, falling less than a penny to $2.638 per gallon Tuesday. That’s a lot more than last year at this time, when gasoline prices plunged to about $1.91 as the economic crisis unfolded. Gasoline consumption for the week ended Friday declined 1.6 per cent from the previous week and 1.4 per cent from a year ago, according to the weekly MasterCard SpendingPulse report. Year-to-date consumption for 2009, however, is still up 0.6 per cent. MasterCard’s report is based on aggregate sales activity in the MasterCard payments network, coupled with estimates for all other payment forms, including cash and check. Still, gasoline prices are being supported by crude, which as traded between $76 and $82 for more than a month. That is largely being blamed on the dollar because oil is bought and sold in the U.S. currency. Investors holding euros or other currencies can buy more oil when the dollar falls. Crude prices rose Monday when the dollar fell. On Tuesday, the dollar gained against the euro, yen, and British pound. Oil prices fell as much as 2 per cent. In other Nymex trading, heating oil fell 3.74 cents to $1.942 a gallon. Gasoline for December delivery dropped 3.74 cents to $1.942 a gallon. Natural gas for December delivery rose nearly 10 cents to $4.57 per 1,000 cubic feet. In London, Brent crude dropped $1.10 to $76.36 on the ICE Futures exchange. Read the original: Tepid economic reports and a stronger U.S. dollar send oil prices downward

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By Stephen Bernard, The Associated Press NEW YORK – Treasury prices rose Tuesday after solid results from an auction of five-year notes shored up the market’s confidence that demand for U.S. government debt would remain strong. The bid-to-cover ratio, a measure of demand, was 2.81 – the highest level seen at any auction for five-year notes since 2007. The ratio was 2.63 last month for an auction of notes with a similar maturity. “Everything about this auction was positive,” said Richard Bryant, senior vice-president of U.S. Treasury trading at MF Global. The price of five-year notes rose 6/32 to 101 5/32, pushing its yield down to 2.13 per cent from 2.18 per cent late Monday. Bryant said the results from auctions of shorter-term government debt remains strong because of the amount of cash looking to be invested in safe investments. Government debt with maturities of a few months or years have been in high demand recently because there is little concern about near-term inflation. Investors who have locked in gains from the stock market’s eight-month rally are now also looking for places to invest cash through the end of the year, which has further boosted demand, Bryant added. Tuesday’s results followed strong results at auctions Monday for two-year notes and three-month and six-month bills. The government is set to auction off $32 billion in seven-year notes on Wednesday as it wraps up sales for the week ahead of the Thanksgiving holiday. Bryant said all indications point to another strong showing on Wednesday. In other trading, the price on the 10-year note, which is often used as a benchmark for consumer loans, rose 6/32 to 100 12/32. Its yield fell to 3.33 per cent from 3.36 per cent. The price of the 30-year bond rose 7/32 to 101 28/32, sending its yield down to 4.26 per cent from 4.28 per cent. The yield for three-month T-bills rose to 0.05 per cent from 0.03 per cent. Its yield had turned negative last week as investors looked for a safe place to invest short-term cash as the end of the year approaches. The cost of borrowing between banks declined. The British Bankers’ Association said the rate on three-month loans in dollars – the London Interbank Offered Rate, or Libor – fell to 0.2606 per cent from 0.2622 per cent. Read more: Treasury prices improve after strong demand seen for $42 billion in 5-year notes

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By Jeannine Aversa, The Associated Press WASHINGTON – The American economy is growing modestly, with consumers too wary about spending to invigorate the recovery. That’s the picture that emerged from reports Tuesday on the economy and the confidence of consumers, who power 70 per cent of it. Unemployment and tight credit have sapped shoppers’ willingness and ability to spend freely as retailers enter their crucial holiday season. And Americans are expected to grow more cautious about spending next year. That would make for a plodding recovery. The economy grew at a 2.8 per cent rate last quarter. Forecasts for the current quarter are for similarly lacklustre growth before a drop-off next year. “It’s hardly a rip-roaring recovery,” said Stuart Hoffman, chief economist at PNC Financial Services. “Usually coming out of a recession you get growth more like a rodeo bull – at a pace of six or seven per cent in the early quarters of recovery. That isn’t happening. It is coming out of the stalls more like a fat cow.” The Commerce Department’s revised estimate of gross domestic product for July through September was less than the 3.5 per cent growth rate foreseen just a month ago. And the estimate for GDP – the value of goods and services produced in the United States – was a tad less than the 2.9 per cent growth rate that economists surveyed by Thomson Reuters had expected. The main factors behind the downgrade: Consumers didn’t spend as much. Commercial construction weakened. And imports exerted more of a drag on the economy. Businesses also trimmed more of their stockpiles, further restraining growth. At the same time, the Conference Board’s latest survey of consumer confidence found gloom among shoppers. “I really won’t be spending money on Christmas,” said Ivan Horne, 47, of Tampa, Fla., who has been out of work for about a year. “I’m barely able to make enough to survive.” An Associated Press-GfK poll released this week found that 93 per cent of Americans say they’ll spend less this holiday season or about the same as last year. Also Tuesday, the Standard&Poor’s/Case-Shiller home price index of 20 major cities suggested that the summer’s trend of rising home prices is slowing. And analysts expect prices to dip again this winter as foreclosures rise. The tepid reading on economic growth and consumer confidence caused stocks to retreat from their 13-month highs. Over the past few months, though, the stock market has surged. A rally on Monday carried the Dow up 133 points to its highest point in just over a year. In part, stocks have been powered by a weak dollar and low interest rates. Lower rates let companies and investors borrow cheaply. They also cause some to shift money out of cash and bonds and into investments that promise higher returns, such as stocks. Stocks also have benefited from higher corporate profits. Companies have managed to squeeze out more profits without the cost of higher production or payrolls. They’ve done so by boosting their workers’ productivity and drawing down their existing stockpiles of goods. The GDP report showed the economy finally started to grow again from July through September, after a record four straight losing quarters. Yet growth probably won’t be strong enough to quickly drive down the nation’s unemployment rate, now at 10.2 per cent. For the current quarter, some analysts think economic growth will slow to around a 2.5 per cent pace, but it could hit a pace of around 3 per cent if holiday sales turn out better than expected. Though cautious, consumers are holding up despite high personal debt, a tight job market and hard-to-get credit. A government report out Wednesday is expected to show consumer spending rose 0.5 per cent in October, compared with a 0.5 per cent drop in September. Incomes, the fuel for future spending, are expected to edge up 0.2 per cent, after being flat. Many economists say they think the economy will weaken again next year. Some project growth at a pace of around 1 per cent as the benefits of the $787 billion stimulus package fade and consumers keep tightening. “I think when the bills come in January, you’ll see consumers pull back,” said Brian Bethune, economist at IHS Global Insight. “It’s going to be a slow-motion recovery.” In the third quarter, the Cash for Clunkers rebates and an $8,000 tax credit for first-time homebuyers juiced up sales of cars and homes. The clunkers program ended in August. But the tax credit has been extended and expanded beyond first-time buyers. It’s unclear whether the recovery can endure after government supports are gone. If consumers clam up, the economy could tip back into recession. Read more from the original source: Reports on US economic growth and consumer confidence signal modest rebound

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By Malcolm Morrison, The Canadian Press TORONTO – The Toronto stock market was negative Tuesday afternoon with buyers discouraged by data showing weaker than expected U.S. economic growth and tepid consumer sentiment just before the start of the holiday shopping season. Toronto’s S&P/TSX composite index dropped 50.2 points to 11,573.8 after the U.S. Commerce Department reported the economy grew at an annual rate of 2.8 per cent in the third quarter, compared with a previous government estimate of 3.5 per cent. The new reading was weaker than the 2.9 per cent revised growth rate economists had expected. “It’s the U.S. government doing everything and the consumer doing nothing,” observed John Stephenson, portfolio manager at First Asset Funds.. “If you look at the growth in the last quarter, (government stimulus) had a lot to do with it. We don’t have a solution to replace that except more stimulus so there’s really no exit strategy other than the government continues to print money.” The Canadian dollar was down 0.29 of a cent to 94.42 cents US. The financial sector was the leading advancer, up 0.4 per cent after the Bank of Montreal (TSX: BMO.TO ) reported its fourth-quarter net income rose 16 per cent from year-ago levels to $647 million. Earnings per share were $1.11, easily beating analyst estimates of 98 cents, compared with $1.06 a year earlier. Total revenue in the quarter increased by 6.3 per cent to $176 million while its provision for credit losses decreased to $386 million during the quarter, down $79 million from last year. Its shares moved up 39 cents to $53.94. “Well, I would say BMO has just done a stellar job. It was a great quarter, there is no way to say anything negative about it,” said Stephenson, adding the results bode well for earnings reports from the rest of the sector. Elsewhere on the Canadian earnings front, George Weston Ltd. (TSX: WN.TO ) said Tuesday that its profit dropped 52 per cent to $86 million or 56 cents a share in the most recent quarter, down from $180 million or $1.29 a share a year ago. Results at North America’s largest baker were hurt by foreign exchange charges. Revenue at the company, which holds a controlling interest in supermarket chain Loblaw Companies, slipped one per cent to $9.78 billion and its shares ticked 59 cents higher to $59.69. The TSX energy sector was off 0.12 per cent as the January crude contract on the New York Mercantile Exchange declined $1.63 to US$75.93 a barrel. Canadian Natural Resources (TSX: CNQ.TO ) climbed 87 cents to $71.86. Mining stocks were also negative. The gold sector was down 1.13 per cent even as the December bullion contract on the Nymex gained $1.10 to a record high close of US$1,165.80 an ounce. Goldcorp Inc. (TSX: G.TO ) faded 97 cents to $45.88. The base metals sector stepped back 1.27 per cent with December copper off one cent to US$3.12 a pound. Teck Resources (TSX: TCK-B.TO ) moved back 96 cents to C$36.40. The TSX Venture Exchange moved 2.36 points lower to 1,414.27. New York markets were also negative in the wake of the economic data with the Dow Jones industrials down 46.4 points to 10,404.5. The Nasdaq composite index was off 14.81 points to 2,161.2 while the S&P 500 index declined four points to 1,102.25 after the U.S. Conference Board said that its Consumer Confidence Index edged up to 49.5 from a revised reading of 48.7 in October. Economists surveyed by Thomson Reuters had expected a reading of 47.7. One component of the Conference Board’s confidence gauge that measures consumers’ assessment of the current economy fell slightly to 21.0, compared with 21.1 in October. Consumer spending accounts for more than two-thirds of all U.S. economic activity and a rebound in shopping is considered vital for a strong recovery. Other data out Tuesday morning showed that U.S. home prices rose slightly in September, the fourth straight monthly increase. Investors have been battling mixed signals on the economy in recent months. Areas like housing have shown modest improvements, but others like consumer confidence and employment are lagging. That has investors worried that their bets on an economic recovery over the past eight months may have been overdone. The main Toronto index is up about 50 per cent while the Standard & Poor’s 500 index is up 63.5 per cent since early March. In other corporate news, Manulife Financial Corp. (TSX: MFC.TO ) is expanding its Chinese operations with a deal to buy Fortis Bank’s 49 per cent interest in China-based ABN AMRO TEDA Fund Management Co. for 105 million euros, or US$156 million. Its shares declined 21 cents to $18.57. Kingsway Financial Services Inc. (TSX: KFS.TO ) shares fell 13 cents or 7.69 per cent to $1.56 after it said credit ratings agency A.M. Best has downgraded its issuer credit rating to Triple-C from Single-B. The financial strength ratings of several other insurers in which Kingsway has a major interest were also downgraded. Shares in Alimentation Couche-Tard Inc. (TSX: ATD-B.TO ), which operates convenience stores throughout Canada and the United States, gained 65 cents to $20.75 after it said says its latest quarterly profit was down nearly 10 per cent from a year earlier. But revenue was up 5.3 per cent. Western Coal Corp. (TSX: WTN.TO ) shares declined three cents to $2.72 after it said Monday a proposed class action lawsuit has been filed in Ontario Superior Court alleging inaccurate disclosure in company’s second-quarter financial report in 2007. Continued here: TSX lower on U.S. growth, consumer data; BMO earns boost financial sector

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By The Canadian Press TORONTO – Lenders are still “very selective” when financing new mines but there is now significant liquidity available in the equity markets for companies that need to raise funds, according to the chief financial officer of major gold miner Agnico-Eagle Mines Ltd. (TSX: AEM.TO ). “The amount of healing that’s occurred in the market is remarkable,” said David Garofalo, speaking to a lunchtime gathering of the Canadian Investor Relations Institute on Tuesday. However, banks are still hesitant to issue long-term financing. In the mining industry, this reticence is hitting one-asset junior companies particularly hard, he said. Luckily, juniors and other miners finding it difficult to get financing through the credit markets can now turn to the equity markets. A year ago, share offerings as a way to raise capital were virtually non-existent due to a lack of investor confidence. Today, several miners have shown that this is no longer the case by making successful share offerings – including Barrick Gold Corp. (TSX: ABX.TO ), which managed to raise US$4 billion in September. “Money is available for juniors (in the equity markets),” Garofalo said. “We’ve seen valuations in the junior space escalate significantly and that’s giving them the confidence to go out and raise money.” Garofalo said the outlook for gold miners is particularly encouraging due to shrinking supply and soaring demand for the yellow metal. Existing mines aren’t enough to keep up with demand and new projects in stable jurisdictions are increasingly hard to come by. In addition, gold is considered a safe-haven investment that will help offset the effects of inflation as governments around the world continue to fund massive stimulus spending projects. “There’s a competitive debasement of currencies going on and I think that will drive the gold price to unprecedented levels,” Garofalo said. “There’s going to be a panic to buy gold when inflation rates start to spike up,” he added. Agnico-Eagle will continue to focus on exploration and development of new projects to increase its shareholders’ leverage to the price of gold, Garofalo said. Agnico-Eagle is one of the biggest gold miners in Canada, with operations or projects in Quebec, Nunavut, Finland, Mexico and the U.S. Read more from the original source: Credit still tight, but equity markets loosening up for miners: Agnico-Eagle CFO

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A group of Canadian Auto Workers members gathered in front of the Comerica Bank office building in downtown Detroit Tuesday afternoon to protest the bank’s involvement with the owner of two closed auto-parts plants in Windsor. The CAW says Catalina Precision Products a client of U.S.-based Comerica Bank owes 80 workers $2.4 million in severance, termination pay and vacation pay. The autoworkers lost their jobs when Catalina shut down the Aradco and Aramco plants in Windsor last March. The former employees have received $400,000 in severance, but the CAW contends the workers are owed more and the union wants workers to be considered the first creditors instead of the main bank, Comerica. Were saying that this is an international fight back, said Gerry Farnham, president of Local 195. As far as were concerned, these workers are being used as pawns in a game by speculators, asset strippers and liquidators. The CAW has been monitoring the plants since they were closed to make sure equipment isn’t removed and auctioned off. A meeting between Local 195 representatives and the lawyers for the owner was held last week. The company agreed to temporarily delay auctioning plant equipment, and lawyers said the union will get 48 hours notice if that changes. Catalina and Comerica officials weren’t immediately available for comment. Follow this link: CAW targets U.S. bank in severance protest

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BRASILIA, Nov 24 (Reuters) – Brazil’s Senate approved on Tuesday Aldo Mendes as director of monetary policy at the central bank. The Senate floor voted 41-11 in favor of Mendes. The senate’s economic affairs commission had passed earlier in the day his appointment to replace Mario Toros. (Reporting by Natuza Nery; Writing by Elzio Barreto) ((elzio.barreto@thomsonreuters.com; Tel: +55 11 5644-7725; Reuters Messaging: elzio.barreto.reuters.com@reuters.net)) © Thomson Reuters 2009 All rights reserved See the original post: Brazil’s Mendes approved by senate to c,bank post (at Reuters)

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By The Canadian Press VANCOUVER, B.C. – A B.C. judge has decided Rogers Communications Inc. (TSX: RCI-B.TO ) cannot continue to claim it has “Canada’s Most Reliable” wireless network without qualification. The judge’s ruling is largely a victory for Telus Corp. (TSX: T.TO ), which asked for the court to prevent Rogers from continuing to make the long-standing claim. Telus argued that new networks put in place this month by it and Bell Canada had made it impossible for Rogers to claim superiority. Justice Grauer says in his ruling that he agreed with Telus when it argued that Rogers couldn’t make the claim based on information that has become outdated. However, the judge says he won’t go as far as to order Rogers to pull any advertising or promotional material with the claim and said he wanted to make the scope of the limitation on Rogers as narrow as possible. The judge ordered the two parties to work on the wording for a court order and adjourned the matter until Friday. Follow this link:

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* TSX falls 0.22 pct to 11,599.28 on commodity weakness * BMO’s higher profit, Diners Club deal boost bank shares * U.S. Q3 GDP revision slightly lower than expected (Adds details) By Ka Yan Ng TORONTO, Nov 24 (Reuters) – Toronto’s main stock index was lower on Tuesday morning due to weakness in commodity shares and evidence of a slow recovery in the U.S. economy. Strength in banking stocks stemming from firm Bank of Montreal ( BMO.TO ) quarterly results cushioned the fall. The top five spots the market’s list of risers were held by big banks. Bank of Montreal reported a higher-than-expected 16 percent increase in quarterly profit and said it was buying the Diners Club North America credit card business, a deal that would double its corporate card portfolio. [ID:nN23263602] BMO shares gained 0.5 percent to C$53.80. Toronto-Dominion Bank ( TD.TO ) was up 0.27 percent at C$67.53. Resource shares were big decliners on Tuesday, led by a 1.7 percent drop in fertilizer company Potash Corp ( POT.TO ) to C$118.25. Lower oil prices and a recent runup in commodity stocks also put pressure on companies such as diversified miner Teck Resources ( TCKb.TO ), down 2.2 percent at C$36.55, and oil producer EnCana Corp ( ECA.TO ), down 0.54 percent at C$55.60. “I think it’s just an overall selloff in the market today. It had a pretty nice run in some of these commodities so it was ripe for some profit-taking,” said Ian Nakamoto, director of research at MacDougall, MacDougall & MacTier. At 10:40 a.m. (1540 GMT), the S&P/TSX composite index .GSPTSE was down 25.50 points, or 0.22 percent, at 11,599.28, after opening higher. The U.S. economy grew more slowly than first thought in the third quarter, but house prices rose for the fifth straight month in September and U.S. consumer confidence was up in November, suggesting a slow economic recovery is still intact. [ID:nN24296971] “I think it just confirms that we’re in a slow recovery here. It’s good to see a positive but it wasn’t as positive as people were expecting,” Nakamoto said. ($1=$1.06 Canadian) (Editing by Peter Galloway) ((kayan.ng@thomsonreuters.com; Reuters Messaging: kayan.ng.reuters.com@reuters.net; 416-941-8109)) ============================================================== FOR CANADIAN MARKETS NEWS, CLICK ON CODES IN BRACKETS: TSX market report……….[.TO] Canadian dollar and bonds report….[CAD/][CA/] Top News: Canada ……[TOP/CAN] Today in Canada…….[CA/DIARY] Canadian company news .. [E-CAN] Reuters global stocks poll (Canada)…EQUITYPOLL5 [EPOLL/CA] FOR CANADIAN MARKETS DATA, CLICK ON CODES IN BRACKETS: Canadian Equities speed guide……. S&P/TSX Composite index ………….. .GSPTSE S&P/TSE Venture composite index …….SPCDNX TSX most active……….AV.TO Venture Exchange most active………….AV.V Top TSX pct gainers……PG.TO Top TSX pct losers…….PL.TO S&P/TSX 60 index ……..TSE60 52 week highs: TSX……………t.YH.TO Venture…………..t.YH.V 52 week lows: TSX……………t.YL.TO Venture…………..t.YL.V Canadian dollar quote…… CAD= CAD=D3 =CAD FOR MAIN GLOBAL MARKET DATA AND MARKET REPORTS: FTSE EUROTOP 300 ……FTEU3 EUROPEAN REPORT …….[.EU] Nikkei 225…………..N225 Tokyo report…………[.T] FTSE 100…………… .FTSE London report………..[.L] Xetra DAX…………. .GDAXI Frankfurt market stories[.F] CAC-40.. .FCHI Paris market stories…[.PA] World Indices……. Foreign exchange……..[FRX/] Oil…….[O/R] US Treasuries…………[US/] International bonds…..[EUB/] Gold………[GOL/X] or [GOL/] CRB index of commodity futures………[CRB/] © Thomson Reuters 2009 All rights reserved See original here: CANADA STOCKS-TSX falls on commodities, but banks rise (at Reuters)

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NEW YORK, Nov 24 (Reuters) – U.S. gold futures turned higher in heavy trade Tuesday on option-related buying and fund interest, and investors continued see pullbacks in the metal as buying opportunities, traders said. For the latest detailed report, click on [GOL/]. GOLD * COMEX December gold GCZ9 up $1.60 at $1,166.30 an ounce at 10:34 a.m. EST (1534 GMT) on the NYMEX. * Ranged from $1,157.70 to $1,171.70. December hit an all-time high $1,174 on Monday. * Gold futures supported by options-related buying after Monday’s option expiration – George Gero at RBC. * Bullion holds gains in spite of a slight dollar rise amid an equities market retreat. * Gold market sees drops as opportunities to buy absent a major correction – Miguel Perez-Santalla at Heraeus. * Ethiopia signed a deal for a Saudi firm to extract an estimated 20 tonnes of recoverable gold found in the Horn of African country last month. [ID:nGEE5AN1WS] * Gold-to-oil ratio at above 15. It was last at 15.34, up from the previous session’s 15, as oil drops on Tuesday. * COMEX estimated 10 a.m. volume at a busy 221,814 lots, driven by options-related buying. * Spot gold XAU= at $1,168.80 an ounce, compared with $1,165.85 late in the previous session in New York. * London’s afternoon gold fix XAUFIX= at $1,163.25 an ounce. * For a gold price interactive graphic: here > SILVER * December silver SIZ9 down 14 cents at $18.470 an ounce, as investors lock in profits. * Technical resistance seen at breaking above the $19 an ounce level – traders * Ranged from $18.330 to $18.680. * COMEX estimated 10 a.m. volume at 48,120 lots. * Spot silver XAG= was at $18.45, against $18.59 in the previous session in New York. * London silver fix XAGFIX= at $18.57. PLATINUM * January platinum PLF0 down $4.90 at $1,462.70 an ounce as the market takes a breather after Monday’s rally. * Spot platinum XPT= $1,455.50 an ounce. PALLADIUM * December palladium PAZ9 down 5 cents at $373.25 an ounce on platinum’s weakness. * Spot palladium XPD= $369.50 an ounce. Prices at 10:52 a.m. EST (1552 GMT) Last Change Pct 2008 YTD Chg Close % Chg US gold GCZ9 1168.90 4.20 0.4 884.30 32.2 US silver SIZ9 18.470 -0.140 -0.8 11.295 63.5 US platinum PLF0 1462.60 -5.00 -0.3 941.50 55.3 US palladium PAZ9 373.65 0.35 0.1 188.70 98.0 Gold XAU= 1168.50 2.65 0.2 878.20 33.1 Silver XAG= 18.44 -0.15 -0.8 11.30 63.2 Platinum XPT= 1456.00 1.50 0.1 924.50 57.5 Palladium XPD= 371.40 2.40 0.7 184.50 101.3 Gold Fix XAUFIX= 1163.25 -7.00 -0.6 836.50 39.1 Silver Fix XAGFIX= 18.57 -19.00 -1.0 14.76 25.8 Platinum Fix XPTFIX= 1458.00 5.00 0.3 1529.00 -4.6 Palladium Fix XPDFIX= 371.00 0.50 0.1 365.00 1.6 (Reporting by Frank Tang ) ((frank.tang@thomsonreuters.com; +1 646 223 6126; Reuters Messaging: frank.tang.reuters.com@reuters.net)) ((For help: Click “Contact Us” in your desk top, click here [HELP] or call 1-800-738-8377 for Reuters Products and 1-888-463-3383 for Thomson products; For client training: training.americas@thomsonreuters.com ; +1 646-223-5546)) © Thomson Reuters 2009 All rights reserved Continue reading here: US gold up on options-related buying, fund demand (at Reuters)

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By Jan Harvey LONDON (Reuters) – Gold prices retreated below $1,165 an ounce on Tuesday as the dollar recovered after a short-lived move lower in the wake of U.S. GDP data, curbing interest in the precious metal as an alternative asset. Prices remain firmly underpinned, however, by the prospect of rising inflation next year and more gold acquisitions by the official sector. Spot gold was bid at $1,163.80 an ounce at 1503 GMT, having risen as high as $1,171.10 in earlier trade, against $1,165.85 late in New York on Monday. In that session it hit a record high of $1,173.50 an ounce. Gold prices have risen 12 percent since the beginning of November, when reports emerged that India’s central bank had bought 200 tons of gold from the IMF. Russia, Sri Lanka and Mauritius have all since also announced gold acquisitions. “If central banks buying gold are diversifying their reserves back from the U.S. dollar to gold or other assets, that is a sign that (investors) should stay long gold and short the dollar,” said Deutsche Bank trader Michael Blumenroth. “As long as the market is thinking there is inflation to be expected next year…central banks are buyers rather than sellers, and there is fresh investment money flowing into the market, there is no way you want to sell gold,” he added. The dollar initially fell against a currency basket on Tuesday after preliminary data showed the U.S. economy grew at a slower pace in the third quarter than previously thought, but later recovered to trade up 0.11 percent. Its recovery has pressured gold from its earlier highs. A near 2 percent drop in oil prices to nearly $76 a barrel ahead of U.S. stocks data later in the session also weighed. However, analysts are confident fresh investment interest in gold will lift it once more. “Definitely prices could still go higher — $1,200 is within reach, and there is no reason why it should not be reached this calendar year,” said Peter Fertig, a consultant at Quantitative Commodity Research. WHOLESALE DEMAND Gold’s correction from record highs in earlier trade led to a pick-up in wholesale demand for the metal in major bullion consumer India, traders said. Any further dips are likely to be met by strong buying, they added. “People are asking for $1,150, we have a few orders at that level,” said a dealer with a state-run bank in Mumbai. Analysts and fund managers say that in addition to dollar weakness, inflation prospects in 2010 and more official sector buying are set to support prices. “The investment case for gold has become increasingly compelling, with central bank buying and a structural change in interest in gold as an investment at the retail level,” Standard Chartered said in a note. The bank said although pockets of dollar strength would likely check gold’s progress in the first half of next year, by the fourth quarter it is set to average $1,300 an ounce. For graphic showing gold’s relationship to inflation expectations, click on: http://feedfetcher.net/wp-content/uploads/2009/11/5382c5cda7FP1109.gif.gif The world’s largest gold-backed exchange-traded fund, the SPDR Gold Trust, said its holdings stood at 1,121.457 tons as of November 23, up 3.964 tons from the previous business day and their highest since late June. Silver was at $18.43 an ounce versus $18.59, platinum at $1,450.40 an ounce against $1,454.50, and palladium at $370 an ounce against $369. ETF Securities said its palladium ETP holdings rose more than 13,600 ounces to a record high of 611,924 ounces on Monday. Holdings of its platinum-backed product edged up to 423,439 ounces from 422,762 ounces, also a record high. (Editing by William Hardy) Continued here: Gold retreats below $1,165/oz as dollar recovers

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WASHINGTON (AFP) – US Airways said Tuesday it had delayed the delivery of 54 Airbus aircraft as part of spending cuts over the next three years aimed at returning the struggling airline to profitability. US Airways said the delivery of the planes, previously scheduled for between 2010 and 2012, would occur in “2013 and beyond.” The deferral will reduce the company’s aircraft capital expenditures over the next three years by approximately 2.5 billion dollars, and pare obligations to Airbus and others by 132 million dollars in the near and medium term, the Tempe, Arizona-based airline said in a statement. US Airways said the aircraft deferrals would not “significantly” alter the airline’s capacity plans as aircraft originally scheduled to be replaced will be retained until the rescheduled new aircraft delivery dates. US Airways said the moves were taken with key business partners to improve its near-term and future liquidity, estimating they would generate 150 million dollars by year end and 450 million dollars by the end of 2010. “These moves are part of our continuing efforts to improve our balance sheet and return the company to profitability,” said Doug Parker, US Airways chairman and chief executive. In late October the airline said it would cut about 1,000 jobs during the first half of 2010 and reduce service to Europe to battle weak demand amid the global economic crisis. “With these strategic initiatives behind us, we believe US Airways is well-positioned to take full advantage of the recovering economy,” Parker said. The company said it would take delivery from Airbus of two A320 and two A330 aircraft in 2010 and an additional 24 A320 family aircraft in 2011 and 2012. “We have financing commitments for all 28 aircraft and believe this is a more manageable delivery rate given the current economic environment,” said Derek Kerr, US Airways chief financial officer. US Airways also announced that it would delay the start of its operations of the long-range Airbus A350 XWB (Extra Wide Body) aircraft, originally set for 2015, to 2017. Airbus, a division of the European aerospace giant EADS, intends to launch the A350 as a rival to Boeing’s new 787 Dreamliner. The two aircraft projects have encountered delays, with Airbus now planning to deliver its first A350 XWB in 2017, while the first delivery of the Boeing 787 is due in late 2010. US Airways posted a net loss of 80 million dollars in the quarter ended September 30. Originally posted here: US Airways delays delivery of 54 Airbus aircraft

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By Andrea Hopkins TORONTO (Reuters) – Bank of Montreal reported a higher-than-expected quarterly profit on Tuesday and said it was buying the Diners Club North America credit card business to double its corporate card portfolio. The deal, combined with a 16 percent rise in quarterly earnings, emphasizes the relative strength of Canada’s big lenders as they emerge from the financial crisis with excess capital and solid balance sheets. BMO, Canada’s fourth-largest bank, kicked off the earnings season for the big banks with net income of C$647 million ($610 million), or C$1.11 a share, for its fourth quarter ended October 31, up from C$560 million, or C$1.06, a year earlier. That was well above analysts’ average estimate of 98 Canadian cents a share, according to Thomson Reuters I/B/E/S, and BMO shares rose at the open on the Toronto Stock Exchange before sinking back along with those of the other big banks. BMO shares were down 0.3 percent at C$53.32 in early trade. The Toronto exchange’s financial index was down 0.5 percent. “Earnings were ahead of our expectations on better-than-expected revenues and lower loan loss provisions than expected,” RBC Dominion Securities analyst Andre-Philippe Hardy wrote in a note to clients. Minutes before announcing the surprisingly strong results, Toronto-based BMO said it was buying Diners Club North America credit cards from Citigroup Inc [ID:nN24290954]. The deal, part of Citigroup’s strategy to shed non-core or unwanted assets, gives BMO exclusive rights to issue Diners Club cards in the United States and Canada. It will also more than double BMO’s corporate card business, as many business travelers use Diners Club cards. The terms of the deal were not disclosed. While BMO said the deal would add nearly $1 billion of receivables and $7.8 billion of card transactions, Barclays Capital analyst John Aiken said the acquisition was more about BMO’s attempts to make further inroads in the U.S. market than about a grab for earnings power. “While this may not be overly material to earnings — representing less than 2 percent of BMO’s business lending portfolio — we do view it as an opportune expansion that leverages its Canadian/U.S. platforms,” Aiken said in a research note. Diners Club is well-known to U.S. consumers, while BMO is far from a household name, despite its big presence in the U.S. Midwest through its Chicago-based Harris Bank unit. The companies expect the deal to close before the end of the March, pending regulatory approvals. “This acquisition will immediately enhance our competitive position by placing us among the top commercial card issuers in North America,” said Frank Techar, the head of BMO’s personal and commercial banking business. RESPECTABLE PROFITS Earnings for the fourth quarter showed strength across most of BMO’s business lines and geographies, and the bank’s Tier I capital ratio climbed to 12.2 percent from 11.7 percent in the third quarter. That’s well above that of many global rivals, and suggests BMO is well-positioned for future acquisitions. Macquarie analyst Sumit Malhotra said BMO’s “beat” in the quarter was driven by expense management, noting that total expenses of C$1.9 billion were down 5 percent from the third quarter. “We view this as another ‘grind-it-out’ quarter of respectable profitability for BMO,” Malhotra wrote in a research note. The amount the bank set aside to cover bad loans fell to C$386 million from C$465 million, a sign that credit woes may be easing as the recession recedes, at least in Canada. The dividend was unchanged at 70 Canadian cents per common share, as expected. Net income in Canadian retail banking rose 22 percent to C$394 million in the quarter from a year earlier, as revenue increased across personal, commercial and cards businesses. Income on the capital markets side was stagnant. It edged down to C$289 million from C$290 million, ending a string of big quarterly increases. Net interest income rose 2 percent to C$1.44 billion from C$1.41 billion BMO is the first of Canada’s big six banks to report fourth-quarter earnings, with the others presenting results over the next three weeks. ($1=$1.06 Canadian) (Additional reporting by Euan Rocha in Toronto and Dan Wilchins in New York; Editing by Peter Galloway) Visit link: BMO profit up 16 pct, to buy Diners Club business

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NEW YORK, Nov 24 (Reuters) – The dollar briefly slipped against the euro on Tuesday in choppy trading after a report showed U.S. consumer confidence rose in November. For consumer confidence data, click on [ID:nNYS007563]. The euro EUR= rose as high as $1.4970 following the data, from about $1.4952 just before. But it came back down to $1.4948, slightly down on the day. For most of the year, the dollar, which is typically viewed as a safe haven, tends to fall on upbeat economic data. (Reporting by Gertrude Chavez-Dreyfuss; Editing by James Dalgleish) ((gertrude.chavez@thomsonreuters.com; Tel: +1 646 223 6322; Reuters Messaging: gertrude.chavez.reuters.com@reuters.net)) ((Multimedia versions of Reuters Top News are now available for: * 3000 Xtra: visit topnews.session.rservices.com * BridgeStation: view story .134 For more information on Top News: topnews.reuters.com )) © Thomson Reuters 2009 All rights reserved Read the original post: Dollar dips briefly vs euro after confidence data (at Reuters)

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Bay Street stocks experienced a lackluster open on Tuesday as traders pondered Canadian jobs data and the U.S. gross domestic product report. The S&P/TSX Composite Index stumbled a mite at the opening bell, losing 4.50 points to 11,619.52 Economically speaking, Stats Canada reported regular Employment Insurance recipients climbed 7.1% in the month of September, the first rise in three months. Crude oil prices were down in pretrading, and copper dropped 2.05 cents to $3.1415 U.S. Gold, meanwhile, has added even more strength (see below). In big corporate news, Bank of Montreal reported fourth-quarter net income of $647 million or $1.11 per share, compared to $560 million or $1.06 per share in the year-ago quarter. Meanwhile, BMO has agreed to purchase the Diners Club North America card business from Citigroup. MKS Inc.’s second-quarter net income grew 19% to $1.61 million U.S. or $0.16 U.S. per share from $1.35 million U.S. or $0.13 U.S. per share in the previous year. YM BioSciences Inc. said that Cytopia has commenced enrollment of a phase I/II trial evaluating CYT387, a treatment for myelofibrosis. The Canadian dollar slid 0.25 cents to 94.41 cents U.S. ON BAYSTREET Of the 14 TSX subgroups, nine began the day on the wrong foot. Metals and mining stocks were tied with their brethren in the industrial sector, losing 0.4% each, while consumer staples were off 0.3%. The five gainers were led by telecoms and financials, nipping ahead 0.2%, and global base metals, creeping 0.1% ahead. The TSX Venture Exchange gave back 4.27 points to 1,412.36, while the Nasdaq Canada fell 3.17 points to 657.28 ON WALLSTREET In New York, stocks opened narrowly mixed Tuesday, losing what little gains they had after a downward revision of the gross domestic product report. The Dow Jones Industrials went down 57.06 points in the first half-hour of trading to 10,393.89. The S&P 500 index slid 4.38 points to 1,101.86, while the Nasdaq subtracted 14.07 points to 2,161.94. On the economic front, the government announced its revised figure for the GDP, showing an annual rate of increase of 2.8% in the third quarter. That matched consensus expectations from Briefing.com. This is a downward adjustment from the preliminary GDP figure released by the government in October, which showed growth of 3.5% in the third quarter. That was followed by the Case-Shiller housing index. After U.S .markets open, a report on consumer confidence was due to come out, and minutes from the Federal Reserve’s latest meeting are due out at 2 p.m. ET. HP reported a 14% rise in quarterly profit late Monday, in line with early figures the company released a few weeks ago. Treasury prices gained ground, lowering the yields on the benchmark 10-year note to 3.34% from Monday’s 3.36%. The price of a barrel of oil declined 89 cents to $76.67 U.S. Gold prices added a dollar to yet another record high of $1,166 U.S. Go here to see the original: Stocks drift at open

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(Money Magazine) — You might think your bank would be rolling out the red carpet for you right now. Barely a year ago the biggest players nearly obliterated themselves and the economy with freewheeling lending practices and needed your tax dollars to bail them out. And with investment banking and commercial lending shaky for now, banks need your retail business more than ever. Yet financial institutions seem to be alienating customers in droves. Just 35% of people feel highly committed to their bank, down six percentage points from 2007, according to a recent J.D. Power & Associates study. The most common reasons people now switch? High fees and poor service, reports Javelin Strategy & Research. But given the importance of retail business to the industry, “banks have to make their customers’ lives easier. The ones that recognize that will have an enormous competitive advantage,” says Greg McBride of Bankrate.com. Besides, the things that would make your life easier are far from outrageous requests. They’re innovations that some banks and credit unions have already shown it’s possible to deliver, like lower fees, smarter technology, and help from a live human being. Take note, banks: You want happy customers who will gladly hand you their cash? Grant them the five things on this wish list. Wish no. 1: Help you manage your money These days you’re more likely to take advantage of tools that can help you keep an eye on your finances. That’s why Mint.com , which lets you see all your financial accounts at a glance, tripled its membership in the past year to 1.7 million. By falling short on offering similar services, banks are missing out on a big opportunity: Consumers are twice as likely to trust their banks with sensitive data as independent web-based services, according to a Javelin survey. Banks that get it: Bank of America’s website lets you see all your financial accounts in one place — including those from other institutions — and helps you create budgets, track spending, and monitor everything from investments to reward points. PNC Bank’s Money Bar tool allows users to whisk cash between Spend (checking), Reserve (interest checking), and Growth (savings) accounts in real time. And several hundred smaller institutions are offering financial management tools in partnership with software makers such as Intuit and Jwala. Wish no. 2: Make it easier to save The credit crisis has certainly reinforced the idea that your parents’ way of saving for a big item before buying it is solid financial practice. So what would help you put that plan into action? A forthcoming study by University of Toronto marketing professor Dilip Soman shows that when people set specific savings goals, they are far more likely to achieve them. So you want to be able to earmark accounts for certain savings purposes. Banks that get it: ING Direct lets you create unlimited sub-accounts, or buckets, for your dough. That beats opening different accounts for say, “emergency savings,” “college tuition,” and “trip to Europe,” which is a major hassle and an easy way to rack up fees. At SmartyPig , an online service affiliated with West Bank, users can designate only a single purpose for each account, but outsiders are allowed to see what they’re saving for. So if you wanted to give your daughter’s new-car kitty a boost, you could deposit cash directly into the SmartyPig account tagged for that goal. A big yield is always a good motivation to save, of course. SmartyPig and Bank of Internet offer a 2.01% and 1.75% annual yield on their savings accounts, respectively, far above the national average of 0.31%. Wish no. 3: Deliver real service Banks say they are focused on retail, which means they’ve spent a lot on sprucing up their lobbies. But you’d probably prefer to get helpful services instead of cushier seats. Banks that get it: Many are credit unions. In the most recent American Customer Satisfaction Index, they scored nine points more than banks on the index’s 100-point scale. Credit unions also boast higher average rates than banks on checking, savings, and money-market accounts, and many of them offer free financial counseling or seminars in money management. One of the best credit unions out there, the San Francisco Fire Credit Union, lets members get their FICO score free four times a year and deposit checks on an honor system: When a check is entered online or over the phone, it will be posted immediately to a customer’s account (it just has to be mailed within seven days). Some banks are at least making it easier to connect to a real person. FNBO Direct’s toll-free service line is staffed with agents 24/7. And several credit unions, such as Freedom near Philadelphia, offer live web chat. But great customer service means providing tools that smooth everyday banking processes too. A case in point: Many banks, including Chase and Wells Fargo, now offer envelopeless ATMs that print a scan of the checks deposited; no more searching for an account number to fill out a deposit slip or waiting in line for the cashier. HSBC Direct will alert you via e-mail if the interest rate changes on its bank accounts. Most TD Bank lobbies are furnished with free Penny Arcade machines: Anyone can walk in, dump in spare change, and get cash for no fee. (Rival Coinstar charges 8.9¢ for every dollar counted.) Wish no. 4: Let you bank on the go You can get driving directions, download music, take photos, and play BrickBreaker on your cell. So why can’t you do your banking too? Banks that get it: Most big banks are developing decent mobile offerings that let users do the same things they can using their PCs. But a few also have services unique to the mobile device. Wells Fargo’s mobile service lets you send short text messages to find out your balances and recent account activity. Bank of America customers who have a souped-up smartphone such as an iPhone or a BlackBerry can use its GPS to instantly locate the nearest Bank of America ATM. One of the most useful mobile innovations comes from USAA : iPhone users can snap a photo of a check, push a button on the USAA app, and funds are deposited right away. (BlackBerry users will be able to do this in 2010.) Wish no. 5: Get real about fees You know “free checking” is a come-on, and an old one at that. Of course, no one expects to get great service and novel tech apps for free. But when banks make you pay for them through gotcha practices like sky-high overdraft charges and soaring ATM fees, they’re just stoking your fury. One in three customers who switched banks in the past year did so because of higher fees, says Michael Beird of J.D. Power. True, the threat of banking reform has reined in some of the worst practices. Chase has stopped automatically approving overdrafts and doesn’t charge them at all for those under $5; Bank of America now lets customers overdraw up to $10 a day penalty-free. Banks that get it: ING and EverBank have a sensible policy about overdrafts: Your checking account can be linked to a line of credit that carries an interest rate of 9% or less. Charles Schwab has a similar approach. Checking overdrafts are “borrowed” from the customer’s brokerage account (you must have a Schwab brokerage account to use its checking services). Schwab also refunds ATM fees, like many online banks. But unlike other banks, it doesn’t impose a maximum on the number of withdrawals it will reimburse you for each month. It’s not perfection, but it’s a big step in the right direction. Ready to switch? Only 11% of customers change banks each year, according to Javelin Strategy. It’s no wonder: Besides the hassle factor, one wrong move could trigger a missed payment and late fees. If you’re thinking about dumping the one you’re with, follow this checklist. 1. Open your new account and fund it, leaving enough cash in the old account to cover any outstanding automatic bill payments. Then stop using your current account so that all checks and debit card transactions can clear. Some banks offer a “switch kit” that outlines the steps for you. 2. Transfer direct deposits to your new institution. To redirect your paycheck, contact your HR department. Make sure you reroute other deposits, such as investment income, pension, and Social Security payments (ssa.gov/deposit or call 800-772-1213 to change Social Security deposits by phone). 3. Move automatic payments such as loans and recurring bills to the new account at least two weeks before the next payment is due. If you can’t make the change online, send a note to your biller indicating when the change should occur. At that point, you can close your old account. Bye-bye.   Send feedback to Money Magazine Continue reading here: 5 reasons banks don’t get it

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By The Canadian Press OTTAWA – A new independent economic analysis shows Canada’s recession has been longer and deeper than the official record indicates. The report from Dale Orr Economic Insight shows that Canadians have been on a downward spiral in terms of their standard of living since 2007. Orr estimates that Canadians have seen a 4.3 per cent falloff in their standard of living since 2007, in terms of real gross domestic product per capita,. And individuals living in most of the larger provinces, with the exception of Quebec, have fared worse. The report estimates Albertans’ standard of living has fallen 6.2 per cent since 2007, and Ontarians’ by 5.8 per cent. Economists measure recessions based on gross domestic product movements, and by that measure the recession began in the fall of 2008 and likely ended in June, resulting in a 2.4-per-cent contraction of the economy this year. But economist Dale Orr argues the usual analysis of GDP doesn’t take into consideration that there were more Canadians producing less product. Since Canada’s population has been increasing by about 1.1 per cent a year, the economic output per person has contracted even more. Here is the original post: Slump chops 4.3 per cent from Canadian living standards: report

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WASHINGTON (AFP) – US economic growth in the third quarter was slower than initially estimated, the Commerce Department said Tuesday, cutting its estimate to a 2.8 percent annual pace of expansion. The gross domestic product (GDP) figure was revised down from last month’s estimate of 3.5 percent growth, but was in line with most analyst forecasts, taking into account updated data, notably on consumer spending and trade. Despite the downward revision, the report showed the first expansion for the economy after four straight quarters of contraction, including a 0.7 percent drop in the second quarter. The data from the July-September period show the world’s biggest economy appearing to emerge from its brutal recession, but with less momentum than previously thought. Sal Guatieri, economist at BMO Capital Markets, said the revised figure does little to change the outlook for steady if less than spectacular growth. “We still think the economy will expand at a three percent annual rate in the fourth quarter,” he said. “We’re looking for modest growth in 2010 of about 2.5 percent.” Guatieri said the data showed a larger drawdown in business inventories, which suggests companies will have to produce more in the coming months to boost their stocks of supplies. “Less momentum in consumer spending is offset by a bigger boost from inventories,” he said. The government’s third quarter report showed personal consumption expenditures — the main driver of economic activity — increased 2.9 percent in the quarter, revised down from an estimate last month of 3.4 percent. Even though consumer spending rose, a large portion of that came from the auto sector, with sales boosted by the “cash for clunkers” incentives to trade in older vehicles. The revised figures showed exports of goods and services increased 17.0 percent in the third quarter, but imports grew at a faster pace of 20.8 percent, a factor that hurts GDP. Other segments of the economy remained weak, with business investment down 4.1 percent. But the housing sector emerged from its slump, with residential fixed investment jumping 19.5 percent, in contrast to a plunge of 23.3 percent in the second quarter. The report also showed corporate profits up 130.0 billion dollars in the third quarter. Augustine Faucher at Moody’s Economy.com said this was a jump of 10.6 percent at an annualized rate, and added, “this bodes well for near-term hiring and investment.” Most economists say the US recovery from its worst recession in decades appears to be on track, but could be derailed by rising joblessness. The unemployment rate hit a 26-year high of 10.2 percent in October, with a net loss of 190,000 jobs. Original post: US third quarter growth revised down to 2.8%

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By Malcolm Morrison, The Canadian Press TORONTO – North American stock markets got off to a weak start Tuesday after data showed weaker than expected economic growth in the U.S. during the third quarter. Toronto’s S&P/TSX composite dipped 0.8 of a point to 11,623.3 after the U.S. Commerce Department reported the economy grew at an annual rate of 2.8 per cent during the third quarter, compared with a previous government estimate of 3.5 per cent. The new reading was weaker than the 2.9 per cent revised growth rate economists expected. The Canadian dollar was down 0.15 of a cent to 94.56 cents US. There were also concerns about bank capital after China’s central bank warned commercial banks to control their lending. The warning comes ahead of the Beijing government’s annual economic planning meeting and could foreshadow more measures to reduce liquidity in the months ahead. However, the financial news was better in Canada where Bank of Montreal (TSX: BMO.TO ) reported that its fourth-quarter net income rose 16 per cent from year ago levels to $647 million. Earnings per share were $1.11, compared with $1.06 a year earlier. Total revenue in the quarter increased by 6.3 per cent to $176 million while its provision for credit losses decreased to $386 million during the quarter, down $79 million from last year. BMO shares were ahead 77 cents to $54.32 and the financial sector was up 0.3 per cent. Elsewhere on the Canadian earnings front, George Weston Ltd. (TSX: WN.TO ) said on Tuesday its quarterly profit dropped 52 per cent to $86 million or 56 cents a share during the most recent quarter, down from $180 million or $1.29 a share a year ago. Results at North America’s largest baker were hurt by foreign exchange charges. Revenue at the company, which holds a controlling interest in supermarket chain Loblaw Companies, slipped one per cent to $9.78 billion and its shares declined 32 cents to $58.78. The TSX energy sector was off 0.2 per cent as the January crude contract on the New York Mercantile Exchange declined six cents to US$77.50 a barrel. Miniong stocks were negative as the December bullion contract on the Nymex rose $4.40 from Monday’s most recent record high close to US$1,169.10 an ounce while December copper was off one cent to US$3.12 a pound. The TSX Venture Exchange moved 2.92 points lower to 1,413.71. New York markets were weak following the release of the revised GDP data with the Dow Jones industrials down 16.8 points to 10,434.2 after a U.S. house resales report exceeded forecasts and took the blue chip index up 133 points. The Nasdaq composite index was off 4.17 points to 2,171.84 after rising 30 points while the S&P 500 index was down 1.15 points to 1,105.1. Investors are also anxious to see the latest reading on American consumer confidence. Consumer spending accounts for more than two-thirds of all economic activity and a rebound in shopping is considered vital for a strong recovery and the data from the Conference Board is expected to show consumers are still nervous about the economy. The private-sector group’s Consumer Confidence Index for November was likely unchanged at 47.7, compared with October. A reading above 90 would signal the economy is on solid footing. Other data out Tuesday morning showed that U.S. home prices rose slightly in September, the fourth straight monthly increase. The Standard & Poor’s/Case-Shiller home price index of 20 major U.S. cities rose 0.3 per cent to a seasonally adjusted reading of 144.96 in September. Prices rose month-over-month in 11 metro areas, a weaker showing than in recent months. In other corporate news, shares in Canadian software company MKS Inc. (TSX: MKX.TO ) were up 18 cents to $8.99 after it announced it is raising its quarterly cash dividend by 20 per cent to 15 cents after reporting quarterly net income rose to $1.6 million from $1.4 million a year earlier. Revenue declined 10 per cent to $14.7 million and its shares rose 18 cents to $8.99. Aecon Group Inc. (TSX: ARE.TO ) has settled a dispute over the Quito International Airport project, subject to approval by Constitutional Court of Ecuador and other conditions. Project lenders will resume funding for construction but Aecon estimates its earnings from the project will be reduced by 18 per cent. Aecon shares climbed two cents to $14.32. Overseas, the warning from the Chinese central bank sent the Shanghai index tumbling 3.5 per cent – its biggest retreat in three months – as investors fretted over the warning. The index had been up 11.4 per cent so far this month. Elsewhere in Asia, Hong Kong’s Hang Seng index slid 1.5 per cent while Japan’s Nikkei 225 stock average dropped one per cent. London’s FTSE 100 index climbed 0.09 per cent, Frankfurt’s DAX edged 0.16 per cent lower while the Paris CAC 40 down 0.3 per cent. More: Stocks open weak as U.S. third quarter GDP growth revised downward

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SAO PAULO, Nov 24 (Reuters) – Brazilian stocks slipped in early trading on Tuesday as investors moved to protect profits from a months-long rally in the country’s shares before the end of the year. The benchmark Bovespa index .BVSP fell 0.33 percent to 66,587.26, reversing some of Monday’s gains. “A number of investors already have their minds on 2010,” said Andre Perfeito, an economist at Gradual Investimentos. “The markets have risen a lot this year, and people are getting nervous” about guarding those profits until 2009 ends, he added. The index has gained about 77 percent so far this year through Monday. But Adriano Moreno, a strategist with Futura Investimentos, said he sees relatively little downside risk for the Bovespa index through the rest of the year, or room for significant advances, either. A flurry of data also gave investors reason for pause. In the United States, the government revised the third quarter gross domestic product growth to 2.8 percent from a previously estimated 3.5 percent. It was below the 2.9 percent revision the market expected. For more see [ID:nN23258482]. Domestically, Brazil’s October current accounts BRCURA=ECI registered a deficit of 2.9 billion reais, larger than the 2.6 billion real deficit projected by a Reuters poll of 19 analysts. [ID:nN24290833] Brazil’s currency, the real ( BRBY ), traded flat at 1.729 per dollar. The currency has appreciated about 35 percent so far this year, a thorn in the side of exporters who see their products growing pricier in overseas markets. Yet recent interventions by the government, including a 2 percent tax on capital inflows into stocks and fixed-income investments and a 1.5 percent tax on American Depositary Receipts, has produced caution among investors. The real “is presenting some stability more recently, failing to move no matter the direction. Apparently, the uncertainty caused by the capital control measures recently announced by the government is leaving the market more cautious to assume positions,” according to a report from BNP Paribas dated Tuesday. Among Brazilian stocks, heavyweights Petrobras and Vale led losses. State-controlled energy company Petrobras ( PETR4.SA ) lost 0.64 percent to 38.60 reais as crude oil CLc1 slid 0.84 percent. Mining company Vale ( VALE5.SA ), the world’s largest producer of iron ore, declined 0.68 percent to 42.58 reais. Steelmakers also fell. Gerdau ( GGBR4.SA ) dipped 0.85 percent to 28.06 reais, Usiminas ( USIM5.SA ) lost 0.37 percent to 49.12 reais and CSN ( CSNA3.SA ) slid 0.97 percent to 59.27 reais. Yields on Brazilian interest rate futures contracts largely dipped.  Continued… Link: Brazil stocks dip on investor caution, real flat (at Reuters)

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By Frank Pingue TORONTO (Reuters) – The Canadian dollar was lower versus the U.S. currency on Tuesday, hurt by a weaker oil price and soft equity markets, but some upbeat overseas data helped it bounce off an overnight low. Overnight the Canadian currency fell as low as C$1.0645 to the U.S. dollar, or 93.94 U.S. cents, on the heels of a rally on Monday that snapped four-session skid in the currency. It staged a rebound when a German business sentiment survey came in better than expected, reaching its highest level since August 2008, to offset concerns about the country’s banking sector. “The report came out stronger than expected and essentially caused a nice little rally in the euro which in turn generated some broader-based U.S. dollar weakness,” said George Davis, chief technical strategist at RBC Capital Markets. “Since then we’ve really been in a bit of a holding pattern where the market seems a little bit unsure as to whether it wants to try and continue to move lower or start to break back to the topside.” At 9:30 a.m. EST, the Canadian unit was at C$1.0584 to the U.S. dollar, or 94.48 U.S. cents, down from C$1.0558 to the U.S. dollar, or 94.71 U.S. cents, at Monday’s close. The price of oil, a major Canadian export, dropped below $77 a barrel on Tuesday ahead of data expected to show crude inventories rose in the United States. With no major Canadian data due until Friday’s currency account report for the third quarter, investors are expected to shift their focus to the U.S. Federal Reserve, which will release minutes of its November 3-4 meeting at 2:00 p.m. Markets will look at the report for hints on when and how the Fed will draw down extraordinary economic support measures. The minutes also include economic projections. “People will be watching that for any clues as to what the Fed’s insight is into the economy as things unfold here,” said Davis. “It will certainly garner some interest but I think in terms of broader themes people will continue to focus on the equity markets.” Toronto’s main stock index was lower shortly after the opening bell on Tuesday as strength in banking stocks stemming from firm Bank of Montreal quarterly results were not enough to offset weakness in the weighty commodity-based groups. Domestic bond prices were a touch higher across the curve as data that showed the U.S. economy grew slower than initially thought in the third quarter triggered demand for more secure assets like government debt. In its second reading of third-quarter GDP, the Commerce Department said the U.S. economy grew at a 2.8 percent annual rate, rather than the 3.5 percent pace it had estimated last month. In issuance news, the province of Ontario will sell at least 1 billion euros of a new 10-year benchmark bond, according to IFR, a Thomson Reuters service. The two-year bond was up 3 Canadian cents at C$100.03 to yield 1.235 percent, while the 10-year bond rose 7 Canadian cents to C$103.15 to yield 3.360 percent. (Editing by Jeffrey Hodgson) See the rest here: Dollar softer as oil dips, bounces from overnight low

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BRASILIA, Nov 24 (Reuters) – A Senate commission on Tuesday approved Aldo Mendes as director of monetary policy at Brazil’s central bank. The Senate’s economic affairs commission voted 23-2 in favor with one abstention. (Reporting by Isabel Versiani; Writing by Elzio Barreto; Editing by James Dalgleish) ((elzio.barreto@thomsonreuters.com; Tel: +55 11 5644-7725; Reuters Messaging: elzio.barreto.reuters.com@reuters.net)) © Thomson Reuters 2009 All rights reserved The rest is here: Brazil Senate approves Mendes as c.bank director (at Reuters)

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By Jeannine Aversa, The Associated Press WASHINGTON – The economy grew at a 2.8 per cent pace last quarter, as the recovery got off to a slower start than first thought. The Commerce Department’s new reading on gross domestic product wasn’t as energetic as the 3.5 per cent growth rate for the July-September period estimated just a month ago. The main factors behind the downgrade: consumers didn’t spend as much, commercial construction was weaker and the nation’s trade deficit was more of a drag on growth. Businesses also trimmed more of their stockpiles, another restraining factor. The new reading on GDP, which measures the value of all goods and services produced in the United States – from machinery to manicures – was a tad weaker than the 2.9 per cent growth rate economists surveyed by Thomson Reuters had expected. Still, the good news is that the economy finally started to grow again, after a record four straight losing quarters. The bad news is that the rebound, now and in the months ahead, probably will be lethargic. The worst recession since the 1930s is very likely over, but the economy’s return to good health will take time, Fed officials and economists say. Growth probably won’t be strong enough to quickly drive down the nation’s unemployment rate, currently at 10.2 per cent. It’s only the second time in the post-World War II period that unemployment has topped 10 per cent. Some economists think economic growth will slow to around a 2.5 per cent pace in the current quarter, although others say it could clock in at about 3 per cent if holiday sales are better than expected. Most say they think the economy will weaken again next year, with growth at a pace of around 1 per cent as the impact of the US$787 billion stimulus package fades and consumers keep tightening their belts under the strain of high unemployment and hard-to-get credit. Much of the economy’s return to growth last quarter reflected federal support for spending on homes and cars. But Tuesday’s report shows that some of that spending was a bit less robust than initially thought. Spending on homes and other residential projects soared at an annualized pace of 19.5 per cent last quarter, a little slower than the 23.4 per cent rate first estimated. Spending on big-ticket “durable” goods – including cars – jumped at a pace of 20.1 per cent, down from 22.3 per cent. Even with the downward revisions, it was notable that such spending grew, after falling in the previous quarter. In the third quarter, the popular Cash for Clunkers rebates and an $8,000 tax credit for first-time homebuyers juiced up sales of cars and homes. The clunkers program ended in August, but the tax credit has been extended and expanded beyond first-time buyers. What’s not clear is whether the recovery can continue after government supports are gone. If consumers clam up, the economy could tip back into recession. President Barack Obama recently cautioned that the economy could suffer a “double dip” downturn. Fed Chairman Ben Bernanke, however, says he doesn’t think that will happen. But last week the Fed chief did warn the recovery faces “important headwinds,” such as tight credit and a weak job market that will make consumers cautious in their spending. Those factors “likely will prevent the expansion from being as robust as we would hope,” Bernanke said. Tuesday’s report showed that overall consumer spending – a major shaper of national economic activity – grew at a pace of 2.9 per cent last quarter. That was down from a 3.4 per cent growth rate first estimated, but still marked the best showing since early 2007. On the business side, companies cut back spending on commercial construction – a weak spot in the economy – at 15.1 per cent annualized pace. That was deeper than the 9 per cent annualized cut back first estimated. Businesses also trimmed stockpiles of goods by $133.4 billion last quarter, slightly more than initially estimated. And the nation’s trade deficit ended up shaving 0.83 percentage point off GDP last quarter, more than first thought. Unlike past rebounds that were driven by the spending of everyday Americans, this one appears to hinge on spending by businesses, foreigners and – until it runs out – the government. In an encouraging note on that front, businesses after-tax profits grew at a 13.4 per cent pace last quarter, up from a 0.9 per cent pace in the prior period, Tuesday’s report showed. In 1980, businesses led an economic recovery. It quickly fizzled, and the economy fell into a severe recession in 1981 and 1982. The unemployment rate climbed to 10.8 per cent, the post-World War II high. The government makes three estimates of economic activity for any given quarter. Each is based on more complete data. Tuesday’s was the second reading of the third-quarter GDP data. The return of economic growth puts the White House in a delicate position: Obama wants to take credit for ending the recession, but unemployment is still causing pain and anxiety nationwide. Millions have yet to feel a benefit from the recovery in the form of a new job or even an easier time getting a simple loan. Even those with jobs are reluctant to go on a spending spree. The values of their homes and 401(k)s have not fully recovered. Some economists think the jobless rate could climb as high as 11 per cent by the middle of next year before making a slow descent. It could take at least four years for the unemployment rate to drop back down to more normal levels. “The best thing we can say about the labour market right now is that it may be getting worse more slowly,” Bernanke said last week. Against that backdrop, Obama said he’s weighing tax breaks that could encourage businesses to hire again. Original post: Economy grows at 2.8 per cent pace in 3rd quarter, rebound slower than first thought

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BRUSSELS (AFP) – Factories in the 16-nation eurozone reported a rise of new orders in September, although more recent data has suggested economic recovery in Europe may be peaking. Industrial new orders compared to August 2009 rose by 1.5 percent in the euro area after a 0.6 percent increase the previous month, according to figures released on Tuesday by the European Union’s statistics agency. However, when the volatile ships, railway and aerospace equipment sectors are stripped out, the increase turned into a decrease of 1.2 percent. New orders for durable consumer goods such as fridges and televisions rose by 1.5 percent in the eurozone, with capital goods orders up 3.7 percent and non-durable consumer goods orders rising 1.5 percent. Across the 27-nation EU as a whole, which includes Britain and Poland, new orders were up 1.7 percent — but only down 0.6 percent when ships, railway and aerospace equipment were taken out of the equation. Overall orders were down by more than 16 percent across the EU compared to one year earlier. Private sector business activity across the eurozone grew at the fastest rate for two years in November, but sent signs that growth may be “peaking,” a survey showed on Monday. Europe officially shook off its deepest downturn since World War II in the third quarter, but with growth lower than expected. Read the original here: Eurozone factory orders rise in September

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LONDON (AFP) – The dollar firmed on Tuesday after recent sharp losses as investors largely stayed on the sidelines ahead of the US Thanksgiving holiday later in the week, dealers said. In late morning trading here, the euro eased to 1.4931 dollars from 1.4963 late in New York on Monday. Against the Japanese currency, the dollar fell to 88.69 yen from 88.97 yen late on Monday. The price of gold eased lower on profit-taking, having struck a record high point of 1,174 dollars per ounce the previous day on the back of a weak greenback. “The (foreign exchange) market is quite dormant,” said Masatsugu Miyata, forex dealer at Hachijuni Bank. The dollar came under pressure on Monday in New York after comments suggesting US authorities may extend emergency stimulus measures, encouraging traders to move into riskier assets such as the euro. Federal Reserve Bank of St. Louis president James Bullard said he would prefer to keep the central bank’s asset-buying programme active beyond its current cut-off date. “We are watching whether the greenback will gain ground this week, but investors will likely stay quiet,” Miyata said, adding that only two trading days remain before the US Thanksgiving holiday on Thursday. The euro found limited support following the publication of strong eurozone data, analysts said. German business confidence surged in November, a closely-watched survey showed on Tuesday, fuelling hopes that Germany, Europe’s economic powerhouse, could lead the continent out of recession. The survey, by the Ifo institute, showed business sentiment rose to 93.9 from 92.0, the eighth successive rise and the highest level since August 2008. It was also better than expected, with economists polled by Dow Jones Newswires expecting a rise to 92.6 points. Meanwhile, official data showed Tuesday that factories in the 16-nation eurozone reported a rise of new orders in September, although more recent data has suggested economic recovery in Europe may be peaking. Industrial new orders compared to August 2009 rose by 1.5 percent in the euro area after a 0.6 percent increase the previous month, according to figures released on Tuesday by the European Union’s statistics agency. In London on Tuesday, the euro was changing hands at 1.4931 dollars against 1.4963 dollars late on Monday, at 132.43 yen (133.14), 0.9046 pounds (0.9009) and 1.5113 Swiss francs (1.5111). The dollar stood at 88.69 yen (88.97) and 1.0122 Swiss francs (1.0096). The pound was at 1.6501 dollars (1.6604). On the London Bullion Market, the price of gold dipped to 1,168.02 dollars an ounce from 1,169.50 dollars an ounce late on Monday. Read more from the original source: Dollar claws back ground against euro

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LONDON (AFP) – Oil prices fell slightly on Tuesday amid lingering concerns about weak energy demand. New York’s main contract, light sweet crude for January delivery, eased 19 cents to 77.37 dollars a barrel. Brent North Sea crude for January delivery dipped seven cents to 77.39 dollars. “We still expect resurfacing demand concerns to cap the upside in oil,” said VTB Capital commodities analyst Andrey Kryuchenkov. Oil prices slumped from record highs of above 147 dollars reached in July 2008 to about 32 dollars in December last year, as the economic downturn hit world demand for energy. Crude futures have slowly won back ground as major industrialised nations emerge from recession but oil demand remains weak despite reportedly rising for the first time in seven quarters. World oil demand rose between July and September after falling during the previous six quarters, the Centre for Global Energy Studies said in a monthly report published on Monday. The London-based CGES added that global oil demand was set to record its first year-on-year gain during the fourth quarter, although crude oil prices should continue to trade between 70 and 80 dollars a barrel. Link: Oil prices dip, stay above $77

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* Refi rate cut by 50 bps to 9.50 pct * C.bank says industrial output, bank lending still weak * Rate cuts could help tame rouble rally By Yelena Fabrichnaya and Toni Vorobyova MOSCOW, Nov 24 (Reuters) – Russia’s central bank on Tuesday unveiled a widely-expected interest rate cut, its ninth since April, in a bid to slow down the appreciation of the rouble and support the economy’s still fragile recovery from recession. The benchmark refinancing rate was reduced by 50 basis points effective from Wednesday, to a new historic low of 9.00 percent. Other rates were also reduced by the same amount, taking the minimum rate on one-day repo auctions — a key central bank liquidity tool — to 6.25 percent. “Lending activity of Russian banks is still at a low level, and internal demand remains insufficient to ensure stable growth of manufacturing, which led to the need to cut rates,” the central bank said in a statement. “The decision (to cut rates) was taken with the aim of further increasing the accessibility of credit resources…and stimulating end demand.” It added that favourable trends in inflation have facilitated the rate cut. Russian Prime Minister Vladimir Putin at the weekend forecast that full-year inflation will come in at 9.6 percent, down from 13.3 percent in 2008. [ID:nLL529256] Russia is starting to recover from its first recession in a decade, into which it slipped in the second half of 2008 at a time of falling oil and commodity prices, investor flight from emerging markets and the global credit crunch. But the brightening economic outlook, together with the rally in oil prices to one-year highs and the still comparatively high levels of Russian interest rates, have sparked a rally in the rouble. Some are worried the strength of the currency could unseat the recovery and jeopardise efforts to boost domestic industry. RESTRAINING THE ROUBLE The central bank said the reduction in domestic and external rate differentials as a result of the rate cut “will contribute to restraining the appreciation of the rouble”.  Continued… Link: UPDATE – Russia cuts rates again to tame rouble, help econ (at Reuters)

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* Euro down 0.2 pct at $1.4930 EUR= * German Ifo rises; German Q3 GDP unchanged * Risk-taking eases on bank sector concerns * Upside for euro/dollar heavy above $1.5000 By Tamawa Desai LONDON, Nov 24 (Reuters) – The euro fell against the dollar on Tuesday on banking sector concerns but pared losses as a key measure of German business sentiment beat forecasts, triggering optimism the euro zone’s biggest economy was recovering. The German Ifo institute’s business climate index rose to 93.9 in November from an upwardly revised 92.0 in October, and beat forecasts of 92.5. The current conditions index rose to 89.1 from 87.4 the previous month, and beat expectations of 88.0. [ID:nBAE003692] Separate data showed Germany’s economy grew 0.7 percent in the third quarter, unchanged from a preliminary estimate. “The economic recovery is continuing and we expect growth to maintain its high momentum in the fourth quarter,” said Ralf Umlauf, economist at Helaba. “Despite the improvement, the Ifo Index is still at a moderate level, historically. We therefore do not infer that there will be pressure on the European Central Bank to herald a change in interest rate policy in the immediate future.” Earlier, the euro was hurt on a German media report the majority owners of WestLB [WDLG.UL] were threatening not to support the stricken German landesbank’s requirement for more capital, citing financial sources. [ID:nGEE5AN07U] Worries about the global banking system, including a report published on Monday by U.S. ratings firm Standard and Poor’s which raised concerns about the health of some major banks [ID:nGEE5AM11I], prompted investors to pare back on riskier assets. “Rallies on risk assets are showing diminishing returns, and major currencies are looking stretched against the dollar,” said Lee Hardman, currency economist at Bank of Tokyo-Mitsubishi UFJ. European shares were down 0.7 percent .FTEU3 while the bank sub-sector of the DJ Stoxx 600 .SX7P fell 1.6 percent. By 0943 GMT, the euro was down 0.2 percent on the day at $1.4930, after falling as low as $1.4889. It hit a one-week high of $1.5001 on Monday.  Continued… The rest is here: FOREX-Euro down but pares losses on German Ifo (at Reuters)

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