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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BERLIN (AFP) – German Chancellor Angela Merkel said Tuesday she was expecting a “comprehensive thank-you letter” from General Motors for huge loans to keep the auto maker’s Opel unit afloat, which she said had now been repaid. “I can tell you that the last funds (received by) General Motors have been paid back, which means that the Opel operation has not cost the German taxpayer a cent,” Merkel said in a speech in Berlin. She added with a smile that she expected “a comprehensive thank-you letter from General Motors in a few years,” a comment that prompted cheers from the crowd of business leaders she was addressing. And she defended her decision to offer the 1.5-billion-euro (2.2-billion-dollar) loan to the Detroit-based car giant, saying: “It was absolutely right … to build a bridge.” Earlier this month, Merkel said that Opel would have been finished without Berlin’s loans. “Without our involvement there would be no Opel today,” Merkel told the Frankfurter Allgemeine (FAZ) daily. “We secured Opel’s chances of survival.” The loan had been due to be repaid by November 30. GM agreed in September to sell a majority stake in Opel, which includes Vauxhall in Britain, to Canadian auto parts maker Magna International and Russian state-owned lender Sberbank. But it later pulled a handbrake turn on the deal, deciding instead to keep the loss-making unit and restructure it itself, with the potential loss of thousands of jobs across Europe. It has not yet said where the jobs will be cut and which plants will be closed, leaving GM’s 50,000 employees across Europe fearing for their jobs. The u-turn infuriated Germany and Merkel, who had invested a lot of capital, both political and financial, in the deal with Magna-Sberbank. Germany had offered a total of 4.5 billion euros’ worth of state aid for the deal, including the 1.5-billion-euro loan and three billion euros in state loan guarantees. The news was all the more embarrassing for Merkel as it broke during her recent official visit to the United States. However, in a boost for Merkel and German Opel employees, GM Europe’s interim head Nick Reilly said earlier Tuesday the firm expected to keep open its plants in Bochum and Kaiserslautern in western Germany. The Bochum plant, employing almost 5,200 people near Essen will remain “an important location in the future,” Reilly said after talks with the premier of the German state of North Rhine-Westphalia where the site is located. Astra and Zafira cars are assembled at Bochum, which also makes axles and gearboxes, according to Opel’s website. It is one of four Opel plants in Germany, employing between them around 25,000 people. Reilly later added that Kaiserslautern, where a further 3,300 people are employed, “will play an important part in the future of Opel.” The GM boss also said that GM would on Wednesday present its concrete plans for the unit, which are expected to result in a 20 to 25 percent cut in production capacity and the loss of between 9,000 and 9,500 jobs. GM is seeking roughly 3.3 billion euros in financing from European governments. A GM spokesman said the plan would be discussed with union representatives and relevant governments before it was made public. German magazine Spiegel said the company had received offers of 400 million euros from Britain and between 300 and 400 million euros from Spain, as well as proposed tax breaks from Poland. Following a meeting of top finance ministry officials and GM executives in Brussels on Monday, the European Commission said that nations affected had decided not to make formal commitments before a further meeting on December 4. The rest is here: Merkel waiting for ‘thank-you letter’ from GM

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* FTSEurofirst 300 index closes down 0.7 pct * Banks fall; Lloyds gains after rights issue * Commods track crude, metal prices lower By Joanne Frearson LONDON, Nov 24 (Reuters) – European shares closed lower on Tuesday after data showed the U.S. economy grew at a slower rate than forecast in the third quarter and home prices in the United States rose less than expected in September. The pan-European FTSEurofirst 300 .FTEU3 index of top shares closed 0.7 percent lower at 1,016.66 points after rising to a high of 1,025.17 earlier in the session. The index has gained 57 percent since falling to a record low in early March and is up 22 percent for the year. “There has been some mixed economic data and the market has taken a more pessimistic view on it. Wall Street is going down with Europe in pursuit,” said Philippe Gijsels, strategist at Fortis Bank. “The market has been a little bit volatile but that is also probably because volumes are quite low. The U.S. is about to go into its Thanksgiving holiday weekend, so there are big swings in the market and that is what you are typically seeing today.” The U.S. economy grew at a slower pace than forecast in the third quarter, while Standard & Poor’s/Case-Shiller indexes showed home prices rose less than expected in September. [ID:nN23258482] [ID:nN24298560] But, U.S. consumer confidence edged higher in November after an unexpected drop in October, with fewer consumers expressing doubt about a worsening jobs market, according to a report. [ID:nN24300840] Banks featured among the biggest losers. HSBC ( HSBA.L ), BNP Paribas ( BNPP.PA ), Societe Generale ( SOGN.PA ), UBS ( UBSN.VX ) and Credit Suisse ( CSGN.VX ) were down 1.9 to 3.2 percent. LLOYDS GAINS But Britain’s Lloyds Banking Group ( LLOY.L ) gained 2.6 percent after it priced its record 13.5 billion pounds ($22.3 billion) rights issue at 37p per share, a smaller-than-expected discount, as it taps its shareholders for cash to avoid costly state support. [ID:nGEE5AM0R8] Energy stocks were under pressure as crude CLc1 slipped to $76 a barrel. BG Group ( BG.L ), BP ( BP.L ), Royal Dutch Shell ( RDSa.L ) and Total ( TOTF.PA ) were down 0.3 to 0.5 percent.  Continued… Read the original: US data drags European shares lower; banks weigh (at Reuters)

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LONDON, Nov 24 (Reuters) – European shares closed lower on Tuesday after data showed the U.S. economy grew at a slower rate than forecast in the third quarter and home prices in the United States rose less than expected in September. The pan-European FTSEurofirst 300 .FTEU3 index of top shares provisionally closed 0.6 percent lower at 1,017.87 points after rising to a high of 1,025.17 earlier in the session. The index has gained nearly 58 percent since falling to a record low in early March and is up 22 percent for the year. Banks featured among the worst performers. HSBC ( HSBA.L ), BNP Paribas ( BNPP.PA ), Societe Generale ( SOGN.PA ), UBS ( UBSN.VX ) and Credit Suisse ( CSGN.VX ) were down 1.9 to 3.2 percent. “There has been some mixed economic data and the market has taken a more pessimistic view on it. Wall Street is going down with Europe in pursuit,” said Philippe Gijsels, strategist at Fortis Bank. “The market has been a little bit volatile but that is also probably because volumes are quite low. The U.S. is about to go into its Thanksgiving holiday weekend, so there are big swings in the market and that is what you are typically seeing today.” The U.S. economy grew at a slower pace than forecast in the third quarter, while Standard & Poor’s/Case-Shiller indexes showed home prices rose less than expected in September. [ID:nN23258482] [ID:nN24298560] But, U.S. consumer confidence edged higher in November after an unexpected drop in October, with less consumers expressing doubt about the a worsening jobs market, according to a report. [ID:nN24300840] (Reporting by Joanne Frearson) ((joanne.frearson@thomsonreuters.com; +44 207 542 2773, Reuters Messaging:joanne.frearson.thomsonreuters.com@reuters.net)) © Thomson Reuters 2009 All rights reserved Visit link: European shares close lower; U.S. data weighs (at Reuters)

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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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(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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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 (AP) — World stock markets fell Tuesday following big gains on Monday, with China’s main index posting its biggest drop in three months after the country’s central bank warned commercial banks to control their lending. European shares tracked their Asian counterparts lower, with the FTSE 100 index of leading British shares down 15.92 points, or 0.3 percent, at 5,339.58 and Germany’s DAX 32.73 points, or 0.6 percent, lower at 5,768.75. The CAC-40 in France was 25.52 points, or 0.7 percent, lower at 3,787.65. On Monday, Europe’s main indexes closed over 2 percent higher amid further hopeful signs about the global economic recovery, particularly out of the U.S. Wall Street is also poised to open lower after Monday’s gains of over 1 percent. Dow futures were down 18 points, or 0.2 percent, at 10,404 while the broader Standard & Poor’s 500 futures fell 1.5 points, or 0.1 percent, to 1,102.30. “After a bumper start to the week, there’s perhaps no surprise to see a degree of profit taking in the short term although there still seems to be upward momentum in the market, confounding the pessimists at least for the time being,” said Ben Potter, research analyst at IG Markets. Financial stocks led the retreat in Europe after big gains on Monday, with Commerzbank AG down 2.5 percent, making it the biggest faller on the DAX. Deutsche Bank AG was also down just under 2 percent. Meanwhile, Switzerland’s UBS AG was down 2 percent. Sentiment towards the banks in Asia was dented by the warning from China’s central bank that commercial banks need to control their lending. As a result, China’s Shanghai index tumbled 115.14 points, or 3.5 percent, to 3,223.53 — its biggest retreat in three months — as investors fretted over the warning. The index had been up 11.4 percent so far this month. The warning comes ahead of the government’s annual economic planning meeting and could foreshadow more measures to reduce liquidity in the months ahead. In Britain, Lloyds Banking Group PLC shares rose even though it confirmed it is planning to raise a British record of 13.5 billion pounds ($22.3 billion) via a rights issue in order to shore up its capital position and not take part in the government’s Asset Protection Scheme. The rights issue has been priced at 37 pence, which is a 60 percent discount to Monday’s closing share price. Even so, Lloyds shares were up 1.4 percent at just below 93 pence a share. The retreat in Europe was cushioned somewhat by further encouraging economic data, which cemented market expectations that growth is picking during the fourth quarter. Germany’s Ifo Institute said business confidence rose for an eighth consecutive month in November to its highest level since August 2008, while the EU’s statistics office Eurostat reported that industrial orders in the 16 countries that use the euro rose by 1.5 percent in October, double market expectations. Attention later will focus on the second estimate of U.S. economic growth in the third quarter — analysts are expecting a downward revision from the preliminary estimate of annualized growth of 3.5 percent after softer than anticipated trade and retail sales data. Elsewhere in Asia, Hong Kong’s Hang Seng index slid 348.25, or 1.5 percent, to 22,423.14 on weakness in Chinese financial stocks. Bank of China slumped 4 percent. Japan’s Nikkei 225 stock average dropped 96.10, or 1 percent, to a fresh four-month low of 9,401.58. South Korea’s Kospi dropped 0.8 percent to 1,606.42 and Australia’s S&P/ASX 200 index declined 0.7 percent to 4,685 on losses in banks and miners. Markets in Singapore and Thailand also fell. Oil slipped to near $77 a barrel amid mixed signs about crude demand. Benchmark crude for January delivery was down 40 cents to $77.16 a barrel. The contract rose 9 cents to settle at $77.56 on Monday. In currencies, the dollar fell 0.3 percent to 88.68 yen while the euro dropped 0.2 percent to $1.4941. AP Business Writer Stephen Wright in Bangkok contributed to this report. See the rest here: Banks weigh on world markets after China warning (AP)

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ZURICH–(BUSINESS WIRE)–C.En Ltd. ( www.cenh2go.com ), developer of a breakthrough hydrogen storage technology, has announced that it has completed a round of equity financing with global insurance and financial giant Generali Group. Generali Group is one of the largest insurance groups in Europe, operating in over 60 countries, with more than 460 subsidiary companies in the insurance, financial and property fields. Generali Group is committed to the development of various realms of sustainability, and is focused on pioneering technological innovations in the environmental sector. Funding by Generali Financial Holdings (FCP-FIS) – as well as by other leading global partners- will be used to further enhance environmentally sustainable applications of C.En’s hydrogen storage technology. C.En’s unique and innovative technology enables the storage of hydrogen, at very high pressures, in special glass capillaries, thereby offering the first compact, lightweight, safe and economical hydrogen storage solution. “We are fortunate to add Generali to our strong group of existing investors who support our vision and unique technology,” notes Mr. Moshe Stern, President and C.E.O. of C.En Ltd., and adds, “The funding will help advance our vision of turning hydrogen into the leading clean energy source of the future.” Photos/Multimedia�Gallery Available: http://www.businesswire.com/cgi-bin/mmg.cgi?eid=6107301&lang=en MULTIMEDIA AVAILABLE: http://www.businesswire.com/cgi-bin/mmg.cgi?eid=6107301 Read this articl e: C.En Ltd. Completes Financing Round with Generali Group (Business Wire)

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LONDON, Nov 24 (Reuters) – News, details on corporate bond issues in the European markets on Tuesday: VIVENDI ( VIV.PA ) Issue: opens order book for a two-tranche euro benchmark bond, an official at one of the banks managing the sale said. Europe’s biggest entertainment group plans to use the proceeds for general corporate purposes. Spread guidance: mid-swaps plus 130 basis points area for 7-year tranche, mid-swaps plus 150 basis points area for 10-year. Managing banks: HSBC, Natixis, Royal Bank of Scotland and SG CIB Ratings: Moody’s Baa2, S&P BBB, Fitch BBB ANGLO AMERICAN ( AAL.L ) Issue: will sell 750 million euro 7-year bond, as reported by IFR Markets, a Thomson Reuters online news and market analysis service. Spread guidance: mid-swaps plus 140 basis points area Managing banks: Citi, HSBC, RBS, Santander Ratings: Moody’s Baa1, S&P BBB- UNICREDIT INTERNATIONAL BANK ( CRDI.MI ) Mandate: plans 750 million euro Tier 1 perpetual bond, [ID:QnWEA2577].  Continued… Go here to see the original: EURO BONDS-Vivendi, Anglo American, UniCredit, VW, Sparebank (at Reuters)

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FRANKFURT (AP) — The euro fell against the dollar in European morning trade Tuesday as investors moved back to the safety of the American currency after declines in Asian equity markets. The euro bought $1.4902 compared with $1.4973 late Monday in New York. The British pound also fell, buying $1.6530 compared with $1.6621 while the dollar slid to 88.61 Japanese yen from 89.02 yen late Monday in New York. Japanese shares fell to a new four-month low Tuesday, after overnight gains on Wall Street amid growing pessimism over a recovery in the world’s No. 2 economy. The benchmark Nikkei 225 stock average dropped to its lowest point since July 17. Sentiment in Tokyo also turned downbeat because of a strong yen, which pressures Japanese exporters by eroding their overseas profits. “Yesterday’s dollar slide was halted just above the previous lows, after Tokyo shares fell on concerns that Japanese banks will sell more shares to replenish capital,” Michael Hewson, a currency analyst at CMC markets, said in a Tuesday research note. Hewson said the euro versus the dollar didn’t break the $1.50 mark Monday and failure to gain a foothold above that key level doesn’t bode well for the euro, which could next fall to the $1.4800 to $1.4810 level. Hewson said, however, that if the euro moves higher than the $1.5060 to $1.5070 level, than currency markets could target the euro going as high as $1.5290. Investors will be looking to Germany’s Ifo economic sentiment survey later Tuesday for an indication on the direction of Europe’s largest economy. Read the original: Euro falls to $1.4902 in European morning trade (AP)

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Nov 24 (Reuters) – Indian Prime Minister Manmohan Singh is in Washington for a state visit set to boost the burgeoning economic relationship between two countries, which had relatively marginal commercial dealings a decade ago. Following are key aspects of economic ties that took off with the end of the Cold War and the embrace of economic reforms by India — an adoption of market-friendly policies in which Singh played a prominent role earlier in his career: BILATERAL TRADE Two-way trade, just $5 billion in 1990, reached $14 billion in 2000 and rose to nearly $50 billion last year, according to U.S. figures, making the United States India’s largest trading partner. The United States sells India aircraft and parts, advanced machinery, cotton, fertilizers, and computer hardware. It imports Indian textiles and leather goods, Internet services, agricultural products, gems, leather products, and chemicals. India reckons trade has at least doubled in the past five years, while U.S. exports to India have tripled in that period. INVESTMENT U.S. cumulative direct investments through mid-2008 of nearly $16 billion in power and oil refineries, telecommunications, electronics, food processing and services make the United States one of India’s largest investors, according to U.S. statistics. The Indian embassy lists the United States as the largest portfolio investor in India. U.S.-bound investment from India has grown about 75 percent annually since 2002, the embassy says. INFORMATION TECHNOLOGY India says two in five of America’s Fortune 500 companies outsource their software in India. With India’s growing wealth, the telecoms sector has grown about 20 percent a year in recent years. India has courted investment in the sector, projecting that it needs some $84 billion worth of telecoms equipment to hit its target of 650 million subscribers by 2012. The U.S. high-tech regions of the Silicon Valley in California and Route 128 Corridor in Massachusetts have deep ties with their Indian counterparts, Bangalore and Hyderabad. NUCLEAR POWER The 2005 U.S.-India Civil Nuclear Agreement, which eases strictures on U.S. nuclear exports to India, opens India’s potential $150 billion market in power plants. This offers potential for big deals for U.S. nuclear reactor builders such as General Electric Co ( GE.N ) and Westinghouse Electric Co, a subsidiary of Japan’s Toshiba Corp ( 6502.T ). ARMS SALES India’s embassy says U.S. arms sales to India have risen from almost nothing a few years to about $3.5 billion last year. The United States is competing with Europe and Russia to supply India 126 multi-role fighter aircraft worth up to $10.4 billion, the biggest such market in decades. In March, the Obama administration approved a $2.1 billion sale to India of eight Boeing Co ( BA.N ) P-8I maritime patrol aircraft, the largest U.S. arms transfer to India to date. In January 2008, Washington and New Delhi clinched India’s previous largest U.S. arms purchase — six Lockheed Martin Corp ( LMT.N ) C-130J Super Hercules military transport planes valued at about $1 billion, including related gear, training and spares. (Reporting by Paul Eckert in Washington; Editing by Cynthia Osterman) ((paul.eckert@reuters.com; +1 202 789-8578; Reuters Messaging: paul.eckert.reuters.com@reuters.net)) Read more: Indian PM’s visit to US comes with rapid trade growth (at Reuters)

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(For more on Afghanistan, click on [ID:nAFPAK]) * Ninth such meeting to weigh options * U.S. officials, diplomats expect decision next week * Some Democrats want war tax (Updates with end of meeting) By Steve Holland WASHINGTON, Nov 23 (Reuters) – President Barack Obama met with top advisers on Afghanistan for almost two hours on Monday night as he nears a decision on whether to send thousands of additional U.S. troops to confront a growing insurgency. There was no immediate word on whether any decision was reached at the war council in the White House Situation Room. Those attending included Vice President Joe Biden, Secretary of State Hillary Clinton and Defense Secretary Robert Gates. It was the ninth such meeting as Obama considers whether to add as many as 40,000 troops to an eight-year-old war that began after the Sept. 11 attacks and that has begun to try the patience of Americans. U.S. officials and Western diplomats said they expected Obama’s announcement next week, before a NATO meeting on Dec. 7 in Europe in which alliance members could agree to send thousands of additional trainers. The White House has given no firm date for the news, but “the first possible time would be sometime next week,” presidential spokesman Robert Gibbs said earlier. There are about 110,000 foreign troops, including 68,000 U.S. soldiers, in Afghanistan fighting Taliban insurgents. The president has been reviewing war strategy in Afghanistan for nearly three months after Army General Stanley McChrystal, the top U.S. commander there, said in a report that conditions were deteriorating and 40,000 additional troops were needed as the minimum to quell the insurgency. The White House is preparing a roll-out of the new strategy, including congressional testimony by Gates, Admiral Mike Mullen, chairman of the Joint Chiefs of Staff, and McChrystal, after the announcement. AMERICANS DIVIDED Some of Obama’s top national security advisers, including Gates and Mullen, are believed to have rallied around options that would send 30,000 to 40,000 more troops and trainers. Obama faces conflicting pressures on Afghanistan. Americans are divided about whether to send more troops. Republicans in Congress insist more troops are needed to prevent a Taliban resurgence, while his own Democrats in general would like to see the United States find a way out of Afghanistan.  Continued… Read the original here: Obama meets with top advisers on Afghan policy (at Reuters)

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(For more on Afghanistan, click on [ID:nAFPAK]) * Ninth such meeting gets under way * Some Democrats want war tax (Updates with meeting start, announcement likely next week) By Steve Holland WASHINGTON, Nov 23 (Reuters) – President Barack Obama began a meeting on Monday night with top advisers on Afghanistan as he closes in on a decision about whether to send thousands more U.S. troops to confront a growing insurgency. The war council with Vice President Joe Biden, Secretary of State Hillary Clinton, Defense Secretary Robert Gates and other officials got under way at 8:13 p.m. (0113 GMT on Tuesday) in the White House Situation Room. It is the ninth such meeting as Obama nears a decision on whether to add as many as 40,000 troops to an eight-year-old war that began after the Sept. 11 attacks and that has begun to try the patience of Americans. U.S. officials and Western diplomats said they expected Obama’s announcement next week, before a NATO meeting on Dec. 7 in Europe in which alliance members could agree to send thousands of additional trainers. The White House has given no firm date for the news, but “the first possible time would be sometime next week,” presidential spokesman Robert Gibbs said. There are about 110,000 foreign troops, including 68,000 U.S. soldiers, in Afghanistan fighting Taliban insurgents. The president has been reviewing war strategy in Afghanistan for the past two months after Army General Stanley McChrystal, the top U.S. commander there, said in a report that conditions were deteriorating and 40,000 additional troops were needed as the minimum to quell the insurgency. AMERICANS DIVIDED Obama’s top national security advisers, including Gates and Admiral Mike Mullen, chairman of the Joint Chiefs of Staff, are believed to have rallied around options that would send 30,000 to 40,000 more troops and trainers. Obama faces conflicting pressures on Afghanistan. Americans are divided about whether to send more troops. Republicans in Congress insist more troops are needed to prevent a Taliban resurgence, while his own Democrats in general would like to see the United States find a way out of Afghanistan. Two veteran Democratic lawmakers have called for imposing a “war tax” to pay for a troop increase. The two were David Obey, chairman of the House of Representatives Appropriations Committee, and Carl Levin, chairman of the Senate Armed Services Committee. A congressional aide said that under the idea, families earning under $150,000 a year would be taxed at 1 percent of their tax rates. The tax would be higher for those in the $150,000-to-$250,000 range and those making $250,000 or more.  Continued… Read the original: Obama meets with advisers on Afghanistan (at Reuters)

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By Gabriel Madway Reuters – A HP Invent logo is pictured in front of Hewlett-Packard international offices in Meyrin near Geneva August 4, … {”s” : “2353.tw,coms,csco,hpq”,”k” : “c10,l10,p20,t10″,”o” : “”,”j” : “”} SAN FRANCISCO (Reuters) – Hewlett-Packard Co (NYSE: HPQ – News ) tripled the size of its share repurchase program to $12 billion as China sales and better profit margins on its services boosted quarterly earnings. The fiscal fourth-quarter results released on Monday were in line with preliminary figures that HP gave two weeks ago, which had topped Wall Street’s estimates at the time. Shares of HP fell slightly in after-hours trading. HP, a hardware and technology services company that is a bellwether for IT spending, has been more cautious than some of its peers in predicting an economic turnaround. But Chief Executive Mark Hurd sounded somewhat more optimistic, noting pockets of returning demand, including in its closely watched printer business, which has struggled this year. “The economy remains challenging, but we do see encouraging signs of recovery in certain markets,” Hurd said on a conference call with analysts. “They’re basically pointing to year-over-year growth in the January quarter,” said Kaufman Bros analyst Shaw Wu. “It’s a good sign.” Hurd cautioned that Europe remains weak, if stable, and it was not clear when a recovery will take hold in the region. HP’s diversification, recurring revenue, and cost controls have provided it with a solid cushion during the downturn. HP bought EDS last year to become the No. 2 provider of IT services, behind IBM. HP said it has now cut 19,000 jobs as it continues to integrate the company. HP’s services revenue rose 8 percent, and the company said signings were “strong,” positioning it well for next year. PC unit sales rose 8 percent, although revenue fell 12 percent as prices across the industry continue to fall. HP, the world’s No. 1 PC maker, continues to engage Acer Inc (Taiwan: 2353.TW – News ) in a price war, analysts say, particularly on consumer laptops. HP said it made big gains in the enterprise PC business in the United States, and PC revenue in China jumped 40 percent. “Although growth has slowed down to a certain extent in the U.S, emerging markets, where consolidation is taking place, is providing new opportunities for HP to broaden its reach,” said Unni Narayanan, chief executive of Primary Global Research, an investment research firm. BIG BUYBACK Earlier this month HP announced a $3 billion deal to acquire 3Com Corp (NasdaqGS: COMS – News ), as it moved to take on network giant Cisco Systems Inc (NasdaqGS: CSCO – News ). As competition in the corporate data center heats up and industry consolidation continues, analysts expect HP to remain aggressive in M&A. “The No. 1 thing we get back from customers is they’d like us to do more, they’d like us to have a broader portfolio with more capabilities,” Hurd said. HP raised its stock repurchase plan by $8 billion, the company said. About $4 billion remained of an $8 billion share buyback program approved in September 2008. Chief Financial Officer Cathie Lesjak said the authorization was part of its normal strategy. HP reported a net profit of $2.4 billion, or 99 cents a share, in its fourth quarter, up from $2.1 billion, or 84 cents a share, in the year-ago period. Excluding items, HP earned $1.14 a share. Revenue fell 8 percent to $30.8 billion. As it forecast earlier this month, HP expects fiscal 2010 earnings, excluding items, of $4.25 to $4.35 a share on revenue of $118 billion to $119 billion. Shares of Palo Alto, California-based HP closed at $51.02, up 1.96 percent, on the New York Stock Exchange and fell to $50.71 after hours. (Reporting by Gabriel Madway and Paul Thomasch; Editing by Richard Chang) Continue reading here: HP triples stock buyback plan, profit up 14 percent (Reuters)

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NEW YORK (AP) — Citigroup Inc. upgraded its 2010 economic growth forecasts for several countries on Monday, and said it expects a sustained but uneven global recovery next year. The annual report, released by Citi’s global research unit, said almost all major economies exited recession in the second and third fiscal quarters. Central banks are unlikely to hike key interest rates through next year, and the threat of global inflation appears contained, according to the report. Citi said a recovery looks to be even across major economies in the beginning of the year, while Asia — excluding Japan — will see sustained momentum. While the U.S. will see fairly strong economic growth, Europe and Japan will experience a more gradual recovery. Citi lifted its 2010 growth domestic product outlook for the U.S., Japan, Britain, Australia, New Zealand, Hong Kong, Korea, Argentina, Hungary, Poland, Czech Republic and Turkey. However, it said credit availability will likely be limited for at least another year or two as banks seek to raise extra capital. Michael Saunders, Citi’s global head of developed markets economics, warned that countries will need to adjust some fiscal policies. “Global economies need central banks and governments to successfully manage the exit strategies from extreme monetary accommodation, without creating further instabilities and denting future growth prospects,” he said. Saunders expects the rankings of global economies to change drastically in the next 15 years as resource-rich regions like the Middle East, Africa, Latin America, Russia and Brazil see growth. Meanwhile, as emerging markets industrialize, consumer spending there is expected to fill the gap left by moderate spending in the U.S. and other industrial countries. See the rest here: Citi upgrades global 2010 economic growth forecast (AP)

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Nov 23 (Reuters) – President Barack Obama’s review of war strategy in Afghanistan centers on sending 30,000 to 40,000 more troops next year, although some of his top advisers favor a deployment of 10,000 to 20,000 that would focus on training Afghan forces rather than expanding military operations. Obama’s announcement is expected as early as next week, ahead of a NATO meeting on Dec. 7 in Europe in which alliance members could agree to send thousands of additional trainers. NATO commitments could bring the total size of the deployment next year to close to the 40,000 requested by General Stanley McChrystal, the top U.S. and NATO commander in Afghanistan. Currently, there are 68,000 U.S. troops and 42,000 allied forces in Afghanistan. WAR STRATEGY, EXIT PLAN Support within the administration has grown for continuing a counterinsurgency strategy with a greater focus on protecting major Afghan population centers along with agricultural areas and transportation routes. Obama’s revised strategy is also expected to include timelines for training Afghan army and police units to eventually take security responsibility from U.S. and NATO forces. A transition to greater Afghan control could begin within the next year in parts of Afghanistan that are more stable, including the city of Herat near the Iranian border. Obama has said he hopes to wrap up the U.S. military mission in Afghanistan before handing off to the next president – a window of between three and seven years, depending on whether he wins a second term in 2012. Afghan President Hamid Karzai has said Afghanistan’s army and police should be ready to take over security from Western forces within his new five-year term. Gates has said an eventual drawdown in Afghanistan could follow the Iraq model, whereby U.S. forces would pull back and eventually out of city centers. But Gates has cautioned against putting a specific date on the U.S. military’s exit, saying that depended in large measure on the conditions on the ground. McChrystal’s counterinsurgency strategy is expected to be combined with a stepped up counterterrorism campaign, advocated by Vice President Joe Biden, using unmanned aerial drones and special operations forces to combat Taliban and al Qaeda fighters along the Afghanistan-Pakistan border. The United States wants Pakistan to crack down on Taliban leaders and their allies organizing the insurgency from safe havens there, including the network headed by veteran Taliban commander Jalaluddin Haqqani. Islamabad has been reluctant to do so in the past, U.S. officials say, citing long-suspected links between the Haqqanis and elements of Pakistani intelligence. Administration officials say Obama wants greater outreach to groups that fight alongside the Taliban but could be persuaded to lay down their weapons in exchange for a greater role in local governance. TROOP INCREASE  Continued… Read the original: How Obama’s Afghan strategy is shaping up (at Reuters)

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By Herbert Lash NEW YORK (Reuters) – Gold hit a fresh record high on dollar weakness and global stocks surged on Monday after upbeat economic news in the euro zone and better-than-expected U.S. home sales data bolstered appetite for riskier assets. European shares posted their biggest one-day percentage gain in more than five weeks and an early rally on Wall Street reversed most of the losses from a three-day sell-off last week. U.S. gold futures hit record highs above $1,170 an ounce, gaining more than 2 percent, as the dollar weakened broadly on expectations U.S. interest rates would stay low for some time. Oil prices almost topped $80 a barrel, before paring some gains, as the sagging dollar and signs of buoyant demand from China, the world’s second-largest energy consumer, lifted commodity prices. The dollar slid after a Federal Reserve official affirmed expectations that U.S. interest rates would stay low for some time and U.S. housing data dampened the currency’s safe-haven appeal. Sales of previously owned U.S. homes jumped in October from the previous month a record 10.1 percent to their highest level in more than 2-1/2 years, the National Association of Realtors said. Buyers rushed to take advantage of a popular tax credit for first-time buyers that had been scheduled to end in November. “The (housing) data adds to bearish U.S. dollar momentum, as stronger-than-expected home sales data is bullish for equity markets,” said George Davis, chief technical strategist at RBC Capital Markets in Toronto. “That decreases risk aversion and increases broad-based dollar weakness. In Europe, the euro zone’s dominant service sector grew at its fastest pace in two years in November, suggesting a recovery will continue in the fourth quarter, albeit at a slower rate, a key survey showed. The FTSEurofirst 300 index of top European shares rose 2.1 percent to close at 1,023.49 points, the biggest one-day percentage gain since Oct 14. The index, which has surged more than 58 percent since hitting a record low in early March, made up more than half the losses it suffered over the previous four sessions. At 1 p.m., the Dow Jones industrial average was up 124.62 points, or 1.21 percent, at 10,442.78. The Standard & Poor’s 500 Index was up 15.04 points, or 1.38 percent, at 1,106.42. The Nasdaq Composite Index was up 29.87 points, or 1.39 percent, at 2,175.91. “The rise in home sales was primarily driven by the credit for first-time home buyers. But still, given the unemployment rate and given the number of foreclosures, you have to be very pleased about the numbers. It’s stellar,” said Tim Speiss, leader of Personal Wealth Advisors group at Eisner LLP in New York. Prices of euro zone and U.S. Treasury debt eased as higher stocks sapped the safe-haven appeal of government bonds. Investors also prepared for another huge dose of supply of U.S. government debt this week. St. Louis Fed President James Bullard on Sunday said the U.S. central bank should keep alive its mortgage-related assets purchase program beyond a planned end date to help stimulate the economy. The benchmark 10-year U.S. Treasury note was down 9/32 in price to yield 3.4 percent. The 2-year U.S. Treasury note was down 1/32 in price to yield 0.74 percent. Oil gained after China’s implied demand in October was more than 10 percent higher than a year ago, customs data showed. It was the latest sign consumption is rising in emerging economies despite the lingering impact of the economic crisis. “Chinese demand is definitely supporting this market as demand in the OECD (Organization for Economic Co-operation and Development) remains relatively weak,” said Andrey Kryuchenkov, analyst at VTB Capital in London. U.S. light sweet crude oil rose 62 cents to $78.09 a barrel. The dollar was down against a basket of major currencies, with the U.S. Dollar Index down 0.76 percent at 75.083. The euro was up 0.80 percent at $1.4979, and against the yen, the dollar was up 0.22 percent at 89.11. Spot gold prices rose $17.50 to $1167.00 an ounce. MSCI’s index of Asia-Pacific stocks outside of Japan rose 0.7 percent after Asian markets closed, and then rose further, up 1.1 percent after midday in New York. The Nikkei Index in Tokyo, however, fell 0.5 percent. (Reporting by Angela Moon, Gertrude Chavez-Dreyfuss and Chris Reese in New York; Ian Chua, David Sheppard, Brian Gorman and Pratima Desai in London; writing by Herbert Lash; Editing by Andrew Hay) Read the original post: Oil, global stocks surge on upbeat economic data

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* US, Europe stocks rally on US home sales, euro zone data * US dollar slides as Fed comment, housing data weigh * Government debt slips as data saps safe-haven appeal * Oil rises on dollar’s weakness, China demand (Updates with U.S. markets, changes byline, dateline previously LONDON) By Herbert Lash NEW YORK, Nov 23 (Reuters) – Gold hit a fresh record high on dollar weakness and global stocks surged on Monday after upbeat economic news in the euro zone and better-than-expected U.S. home sales data bolstered appetite for riskier assets. European shares posted their biggest one-day percentage gain in more than five weeks and an early rally on Wall Street reversed most of the losses from a three-day sell-off last week. For details, see: [ID:nGEE5AM1P3][ID:nN23258224] U.S. gold futures hit record highs above $1,170 an ounce, gaining more than 2 percent, as the dollar weakened broadly on expectations U.S. interest rates would stay low for some time. [ID:nN23374082] Oil prices almost topped $80 a barrel, before paring some gains, as the sagging dollar and signs of buoyant demand from China, the world’s second-largest energy consumer, lifted commodity prices. [ID:nSYD484303] The dollar slid after a Federal Reserve official affirmed expectations that U.S. interest rates would stay low for some time and U.S. housing data dampened the currency’s safe-haven appeal. [ID:nN23425146] Sales of previously owned U.S. homes jumped in October from the previous month a record 10.1 percent to their highest level in more than 2-1/2 years, the National Association of Realtors said. [ID:nN23252398] Buyers rushed to take advantage of a popular tax credit for first-time buyers that had been scheduled to end in November. “The (housing) data adds to bearish U.S. dollar momentum, as stronger-than-expected home sales data is bullish for equity markets,” said George Davis, chief technical strategist at RBC Capital Markets in Toronto. “That decreases risk aversion and increases broad-based dollar weakness. In Europe, the euro zone’s dominant service sector grew at its fastest pace in two years in November, suggesting a recovery will continue in the fourth quarter, albeit at a slower rate, a key survey showed. [ID:nGEE5AM0RG] The FTSEurofirst 300 .FTEU3 index of top European shares rose 2.1 percent to close at 1,023.49 points, the biggest one-day percentage gain since Oct 14. The index, which has surged more than 58 percent since hitting a record low in early March, made up more than half the losses it suffered over the previous four sessions.  Continued… See the original post: GLOBAL MARKETS-Oil, global stocks surge on upbeat economic data (at Reuters)

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CHICAGO, Nov. 23 /PRNewswire-FirstCall/ — Just in time for the busy Thanksgiving holidays, United Airlines customers on transcontinental p.s.(SM) flights can enjoy a complimentary onboard Internet session with the new Try-Before-You-Buy promotion, offered in conjunction with airborne communications provider Aircell. Through Dec. 31, first-time users of Aircell’s Gogo® Inflight Internet service will be offered one free session upon creating a new account. Gogo enables customers with Wi-Fi enabled devices such as laptops, smartphones and PDAs to surf the Web, check e-mail, send and receive instant messages, and access a corporate VPN. The service is available on all of United’s p.s. flights between New York Kennedy and the airline’s Los Angeles and San Francisco hubs. “Gogo Inflight Internet service on our p.s. flights provides our customers with an even more productive and enjoyable travel experience,” says Allen Will, managing director of strategic aircraft programs. “With Gogo Inflight Internet and an AC power port at every seat, p.s. customers will get more accomplished in the air this holiday season, leaving time for more holiday cheer on the ground.” For more information on United’s inflight Internet service, visit united.com/Wi-Fi. About United United Airlines (Nasdaq: UAUA – News ) operates approximately 3,300* flights a day on United and United Express to more than 200 U.S. domestic and international destinations from its hubs in Los Angeles, San Francisco, Denver, Chicago and Washington, D.C. With key global air rights in the Asia-Pacific region, Europe and Latin America, United is one of the largest international carriers based in the United States. United also is a founding member of Star Alliance, which provides connections for our customers to 1,071 destinations in 171 countries worldwide. United’s 47,000 employees reside in every U.S. state and in many countries around the world. News releases and other information about United can be found at the company’s Web site at united.com. *Based on United’s forward-looking flight schedule for October 2009 to October 2010. Read this articl e: United Airlines Introduces Try-Before-You-Buy Wi-Fi Promotion (PR Newswire)

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By Chuck Mikolajczak NEW YORK, Nov 23 (Reuters) – Overseas shares traded in the United States rose on Monday as the U.S. dollar fell and better-than-expected housing data raised optimism on the economic recovery. The National Association of Realtors said sales of existing homes in the United States rose to their highest level in more than 2-1/2 years to an annual rate of 6.1 million units. For details, see [ID:nN23252398] The decline in the greenback .DXY ,which fell 0.8 percent against a basket of currencies, boosted demand for overseas shares priced in the U.S. currency. In equities news, LDK Solar ( LDK.N ) jumped 9.1 percent to $8.73 in New York after the Chinese solar wafer maker reported a surprise third-quarter profit and guided toward better-than-expected fourth-quarter sales. [ID:nBNG390732] Also moving higher on earnings was China’s 51job Inc ( JOBS.O ), which surged 13.6 percent to $18.93 after posting better-than-expected results for the third quarter and forecasting a strong fourth quarter. [ID:nBNG414434] The Bank of New York Mellon index of leading American Depositary Receipts (ADRs) .BKADR gained 2 percent. The U.S. benchmark S&P 500 index .SPX was on track to snap a three-day streak of declines, up 1.3 percent . The Bank of New York Mellon index of leading Asian ADRs .BKAS added 1.3 percent. Asian shares rose as resource stocks led to gains in Australia while Japan was closed for a holiday. The Bank of New York Mellon index of leading European ADRs .BKEUR climbed 2 percent. In Europe, the FTSEurofirst 300 .FTEU3 index of top shares rose to its highest level in more than five weeks, making up more than half the losses suffered in the previous four sessions. (Editing by Leslie Adler) ((Charles.mikolajczak@thomsonreuters.com; +1 646 223 5234; Reuters Messaging:rm://Charles.mikolajczak.reuters.com@reuters.net)) © Thomson Reuters 2009 All rights reserved Read more: ADR Report-Housing data, dollar fall lift ADRs (at Reuters)

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LONDON (AFP) – Prime Minister Gordon Brown, seeking to lift Britain out of a record recession as he battles to stay in power, urged stronger trade links with China in a speech to business leaders on Monday. Brown, whose Labour government is expected to lose a general election due by mid-2010, unveiled his “new growth strategy” at the annual conference of the Confederation of British Industry (CBI). David Cameron, the leader of the main opposition Conservatives expected win the election, meanwhile called for “urgent action” to repair Britain’s battered public finances, as he too addressed business chiefs. The CBI, the nation’s biggest employers’ body, is focusing this year on how businesses can best recover from the country’s longest recession on record. Brown on Monday looked to Asia, and China in particular, to lend Britain a boost. “Over a very, very short period of time, more than 400 companies have come to Britain from China,” Brown told CBI delegates. “In our new growth strategy, I want not hundreds but thousands of of Chinese companies in Britain, but also British companies in China. “And we will soon sign new strategic partnerships with India. Trade relations with the US are strong,” Brown told the event, which the CBI has billed ‘Routes to Recovery’. “To go for growth in Britain we must also go for growth in Europe,” he said, adding that the region accounted for 50 percent of the country’s trade. The PM also announced an international London investment conference to be held early next year. “We should have confidence that together we can and we will establish Britain’s place at the centre of this global economy,” he added. Britain is the last major world power still mired in recession, after the eurozone, France, Germany, Japan and the United States all emerged from a steep global economic downturn. “These have been the most testing times for British businesses,” Brown told the conference, adding that a total of 38 million jobs will be axed by companies around the world this year. “The global financial crisis led to a global trade crisis and then a global industry and jobs crisis,” he added. Brown also spoke of his plans to nurse public finances back to health after they were ravaged by recession and a series of expensive banking bailouts. “The most important driver of deficit reduction over the period ahead will be the growth performance of our economy, and the speed with which we can get unemployment down,” Brown said. “As we take measures to halve the (public) deficit over the next four years, we will continue to make the necessary investment in growth and skills.” British finance minister Alistair Darling will outline further plans to cut the deficit in a budget announcement on December 9, Brown added. But Tory leader Cameron blasted the prime minister over the issue in a separate speech to the CBI. “Today there is a growing international and domestic consensus that urgent action (on repairing public finances) is vital to recovery,” Cameron told delegates. He added: “We are at the end of the longest and deepest recession since the war, we face the largest public deficit in our peacetime history, unemployment is at two and a half million. “We cannot go on like this. This is the last time that I will get to speak to the CBI before Britain goes to the polls. “If the Conservatives win that election, our time in office will be judged on whether we get Britain out of this mess.” Earlier on Monday, International Monetary Fund chief Dominique Strauss-Kahn told the CBI that although the worst of the global financial storm had passed, the world economy remained “highly vulnerable.” Read the original post: Brown urges stronger China links to boost recovery

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The bears put together a little win streak last week, but it looks set to come crashing down, as they obviously failed to deliver any kind of real blow. Asia had a big night: WSJ : Chinese banks in Hong Kong jumped after a researcher under China’s State Council reportedly said the Chinese economy was likely to expand more than 10% in the fourth quarter. Gains in Reliance Industries boosted Indian shares after the market heavyweight announced a bid for Dutch firm LyondellBasell Industries. Hong Kong’s Hang Seng Index rose 1.4% to 22771.39 for its first advance in five sessions, while China’s Shanghai Composite rose 0.9% to 3338.66. Japanese markets were closed for a holiday. Australia’s S&P/ASX 200 rose 0.7%, Taiwan’s Taiex climbed 0.1%, South Korea’s Kospi slipped 0.1%, New Zealand’s NZX 50 ended flat and the Philippines’ main index fell 0.7%. Singapore’s Straits Times Index ended up 1.3% and in afternoon trading, India’s Sensex rose 0.8%. Europe was up too, and US futures are pointing solidly higher. Gold, meanwhile, is above $1165, a brand-new record. Follow this link: Asia, Europe, Commodities, Gold, All Up, S&P Futures Powering Higher

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* Deal seen adding to Reliance bargaining power in sourcing * Deal comes as global economy is recovering * Co has more than enough financial strength to digest buy (Updates share movement, adds details, quotes) MUMBAI, Nov 23 (Reuters) – Shares in energy major Reliance Industries ( RELI.BO ) rose to one-month highs on Monday as traders said its offer for bankrupt petrochemicals company LyondellBasell Industries [ACCEIN.UL] was well timed and would help its core businesses. Over the weekend India’s Reliance said it had made a cash offer to buy control of LyondellBasell.[ID:nN21473364] A deal would create one of the largest petrochemical firms in the world, and comes when valuations are still low following the global downturn and Reliance is cashed up, analysts said. Sources have put the value of the deal at around $10 billion to $12 billion, which would be India’s second-biggest ever foreign takeover. In 2007, Tata Steel ( TISC.BO ) bought Corus for $13 billion. However, the deal differs from other big overseas deals given the relative size of companies, balance sheet strength and bankruptcy status of the LyondellBasell, Goldman Sachs said in a research report. “We have been noting that Reliance could pursue inorganic growth as we see no major projects lined up to consume about US$20 billion of excess cash flow for FY2011 to FY2014 after its committed capex,” Goldman Sachs said. It would also mark a return of Indian firms to large-scale M&A, after the global credit crunch and economic downturn made it difficult for firms such as aluminium maker Hindalco ( HALC.BO ) and Tata Motors ( TAMO.BO ), which bought Jaguar Land Rover, to digest big deals made in 2007 and early 2008. At 0625 GMT, Reliance, which has a 14 percent weighting in the main Mumbai index .BSESN , was up 3.1 percent at 2,191 rupees. The main index gained 0.8 percent. Reliance is India’s largest conglomerate with interests in petrochemicals, refining, oil and gas exploration, and retail. STRONG CASH POSITION Reliance, which has a market value of $75 billion, has been looking to take advantage of low valuations to expand internationally. Analysts said it has more than required muscle to finance the deal. It has $4 billion in cash, $8 billion in treasury stock that can be sold, and, if it doubled its current net debt-to-equity it could borrow another $10 billion, Macquarie said in a recent research note. A deal would give Reliance greater bargaining power in sourcing, and a strong presence in the United States and Europe, and technology patents.  Continued… See original here: UPDATE 1-India’s Reliance shares up on value in Lyondell deal

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© Thomson Reuters 2009 All rights reserved Read the original post: Bookies see Europe stocks snapping losing streak (at Reuters)

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MADRID (AFP) – With Spain facing its worst recession in decades, the government will approve this week a sweeping package of reforms aimed at changing the nation’s economic growth model, Prime Minister Jose Luis Rodriguez Zapatero said Sunday. The reforms will touch on all areas of the economy from labour laws to the education system so that “Spain once again grows strongly and in a more sustained way,” he told a gathering of his Socialist Party in Madrid. “We have always been the party of change, the party which has known how to give new opportunities to Spanish society. We have known how to do it, we have done it and we will do it again,” he added. The prime minister said the reforms would include a focus on renewable energy, high quality education and a more modern public administration but he provided no concrete details. The Spanish economy contracted 0.3 percent in the third quarter, its fifth straight quarterly decline, contrasting with a return to growth in the entire eurozone of 0.4 percent during the same period. Europe’s fifth-biggest economy has proved especially vulnerable to the global credit crunch because growth relied heavily on credit-fueled domestic demand and a property boom boosted by easy access to loans. Spain’s unemployment rate has doubled over the past two years to hit nearly 18 percent, the highest level in Europe, with construction workers leading the job losses. The country of just over 46 million people accounts for roughly half of the rise in the number of jobless in the 16 countries sharing the euro currency over the last year, according to the European Union’s statistics office Eurostat. Earlier this month, the head of the Bank of Spain, Miguel Angel Fernandez Ordonez, warned that the country’s growth model was “unsustainable” as it was excessively based on construction. He also called for reforms in the labour market, without which he warned Spain faced a long period of high unemployment. Spain accounts for just three percent of “high-quality” European exports, compared with 12 percent for France or almost a third for Germany, according to the Paris-based CEPII institute. Read the original: Spanish PM vows sweeping reforms to boost economy

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MINSK (AFP) – Scorned as Europe’s last dictatorship, ranked dismally by rating agencies and possessing few natural resources, Belarus has struggled to attract foreign investors. But now, in a push to revive its cash-strapped economy and lessen its dependence on Russia, the reclusive state is seeking to open up to the West and overturn its image as “the last remaining true dictatorship in Europe,” a label used by former US secretary of state Condoleezza Rice. At an economic forum in the capital Minsk this month, potential investors praised the country’s plans to form a new customs union with Russia and Kazakhstan from July 2010. As part of the bloc of ex-Soviet states, Belarus could become a gateway for businesses that want to break into the vast Russian market but are deterred by Russia’s corruption and red tape, they said. Unlike neighbouring Ukraine, Belarus has remained relatively insulated from the global financial crisis and offers investors a measure of political stability under strongman Alexander Lukashenko, in power since 1994. Other advantages touted by officials include the country’s pool of skilled labour and its developed infrastructure, as well as recent efforts to ease investment barriers by reducing taxes and reforming property rights. The International Monetary Fund (IMF) last month praised Belarus’ fiscal policies and response to the crisis, saying that authorities had also made progress on reforms to develop the private sector. Nevertheless, the reclusive state of 10 million people only has an economy the size of Sudan’s. It is one of the world’s lowest-rated countries according to Moody’s and Standards and Poor’s ratings agencies. The state still controls some 75 percent of the economy, with investors complaining of heavy-handed bureaucracy, a complex tax system and price controls. International businessmen were upbeat at the forum, however. They stressed the importance of the proposed customs union in eliminating trade barriers. “The customs union will make things easier. This will turn into a large domestic market,” Gerhard Hoesl, who heads German engineering giant Siemens in Belarus, told AFP. “This will help Belarus a great deal,” he added, comparing the role of the anticipated customs union to that of the EU economic bloc. The potential of the new customs union is being underestimated by the West, Dutch businessman Hennie Kuijken said: “Nobody realizes what will happen here in a short time.” For its part, Belarus is doing its utmost to publicize the impending deal. The executive secretary of the customs union, Sergei Glazyev, said the new bloc would increase the countries’ gross domestic product by 19 percent by 2015. Nonetheless, Belarus will find it difficult to transform its image as long as its economy remains predominantly under state control and opposition protests are regularly crushed by riot police. Continue reading here: Long-isolated Belarus appeals to foreign investors

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BERLIN (AFP) – A panel of top German economists, which has slammed the country’s huge public debt, says Chancellor Angela Merkel’s new government should take back its “gift baskets” of tax relief, a German weekly reported. Merkel “promised us that the government would do everything so that our gloomy forecasts would not happen… They can therefore pack up again their beautiful gift baskets,” Wolfgang Franz, head of the so-called “Five Wise Ones”, told Der Spiegel in the issue to be published Monday. The influential panel of economists has forecast growth of 1.6 percent for 2010, which it says is not enough to replenish the public coffers. Two weeks ago they criticised the lack of “concrete information” from the new centre-right government about their plans to reduce the deficit and deal with expected massive drop in tax revenue. A tax relief package, already voted on by the German parliament amounting to some 8.5 billion euros (12.6 billion dollars), is set to take effect in January. In the panel’s annual report released earlier this month, the economists issued a sharp attack on the new government saying its plans to reduce the country’s ballooning debt were “vague” and “deceptive”. Merkel, re-elected in September at the head of a new coalition, failed to recognise the scale of the challenges facing Europe’s biggest economy, it said. In particular the new coalition of conservatives (CDU) and liberals (FDP) has failed to spell out how it will reduce Germany’s budget deficit and an “exit strategy” for reducing massive stimulus measures propping up the economy, the panel said. Michel Fuchs, deputy head of the CDU parliamentary group, called the panel’s criticisms “not only presumptuous and false, but also dangerous”. “We are an independent group…. We deliberately express ourselves in terms that are clear and not very diplomatic,” Franz told Der Spiegel. “Our mandate is to warn against bad developments, not to sing someone’s praises.” He said “the government cannot rely only on growth, which will not be enough to generate the 37 billion euros which we estimate are needed between now and 2016 to consolidate” the public finances. Data from the national statistics office earlier this month indicated that the German economy made a comeback in the second and third quarters of 2009 from its worst post-war recession, in large part owing to huge injections of cash — some 80 billion euros — from the state. Read the original post: Top German economists critical of tax relief: report

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VIENNA (AFP) – Austria has begun talks with Russia in view of joining Moscow’s South Stream gas pipeline project, Austrian newspapers reported on Saturday. The economy ministry said it had opened negotiations with Russia on Friday regarding its potential involvement in the project, the daily Die Presse reported. South Stream is seen as a rival to the EU’s Nabucco pipeline, aimed at reducing Europe’s dependence on Russian gas. Both projects, which have yet to be completed, would terminate in Austria, from which gas would then be supplied to the rest of Europe. The Austria Press Agency (APA) noted that the two countries would first have to sign an “intergovernmental agreement” before Austrian oil and gas group OMV could begin direct negotiations with Russia’s gas monopoly Gazprom. No deadline has been set for the talks, APA added. Chancellor Werner Faymann already discussed Austria’s involvement in South Stream with Russian Prime Minister Vladimir Putin during a recent trip to Moscow. The project, backed by Gazprom and Italy’s ENI, is scheduled for completion by the end of 2015, bringing Russian gas under the Black Sea to Bulgaria, before branching off to Austria or Greece. The 7.9-billion-euro (11.6-billion-dollar) Nabucco pipeline project, scheduled to start in 2014, is meanwhile due to pump Caspian gas to Europe via Turkey, while bypassing Russia. Read this articl e: Austria in talks with Russia over South Stream

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NEW YORK (AFP) – Oil prices remained depressed Friday amid a strengthening dollar and concerns over sustainable economic recovery. New York’s main contract, light sweet crude for December delivery, dropped 74 cents to end the week at 76.72 dollars after slumping by more than two dollars on Thursday. London’s Brent North Sea crude for January delivery lost 44 cents to 77.20 dollars. Traders said oil investors tracked the global stock and foreign exchange markets as they weighed prospects for next week. Shares continued to give up gains in Asia, Europe and the United States on corporate and economic recovery worries. In Japan, investors were worried that a long bout of falling consumer prices could threaten the world’s second largest economy’s recovery from its worst recession in decades and eat into corporate profits and prompted consumers to put off purchases. US economic data this week also did little to soothe recovery concerns, pulling down Wall Street shares. Fresh data showed slightly hotter-than-expected reading of prices at the consumer level, a smaller-than-expected increase in industrial production, unexpected declines in both housing starts and building permits, and a jobless claims report that failed to drop below the 500,000 mark as some had hoped. The oil market “followed the stock market and the dollar,” said analyst Andy Lipow of Lipow Oil Associates. The dollar, a safe haven currency, rallied Friday as investors shunned assets viewed as risky, such as the euro and stocks, on fresh concerns about the strength of global economic recovery. A higher dollar makes greenback-denominated commodities such as crude oil more expensive for buyers using other currencies. Supply concerns also dogged the market. Lipow particularly cited high distillate inventories in the United States, the world’s largest energy consuming nation. The US government weekly inventory data showed that stockpiles of distillates, which include diesel and heating fuel, fell 300,000 barrels in the previous week. Analysts had pencilled in a bigger drop of 500,000 barrels. “In the near term, we have a huge oversupply, and the weather forecast for this winter has been changing towards either normal or warmer than normal type of season (and) if that happens, we will exit the winter with huge amount of distillate inventories and that would be bearish for the oil market,” he said. New York crude prices on Wednesday breached 80 dollars a barrel after data showed crude reserves in the United States fell 900,000 barrels in the week ending November 13. Meanwhile, OPEC president Jose Maria Botelho de Vasconcelos has signalled that 75-80 dollar oil is an adequate level to allow for a global economic recovery. The Organization of Petroleum Exporting Countries (OPEC) pumps about 40 percent of the world’s oil. Go here to see the original: Oil prices wobble on recovery concerns

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* Wall St dragged lower after disappointing Dell results * Oil falls under $77 barrel on dollar rise, equity slide * U.S. dollar advances as traders trim risk exposure * Bonds slip slightly on safe-haven flows (Updates with U.S. markets, changes byline, dateline previously LONDON) By Herbert Lash NEW YORK, Nov 20 (Reuters) – Global stocks fell and the dollar rose for a second straight session on Friday as investors cut their exposure to risky assets amid concerns about the economic outlook worldwide. Investors turned to safe havens ahead of a holiday-shortened week in the United States and in anticipation of an often volatile year-end period. Oil fell below $77, weighed by the stronger dollar, and falling stock prices raised concern about the economy and the outlook for energy demand. For details: [ID:nSP361511] Short-dated U.S. Treasury debt prices rallied earlier in the session, before trimming gains, and investors in Europe sold higher-yielding euro zone government bonds as they sought the safety of benchmark German Bunds. [ID:nLK119438] Equity markets around the world fell as investors took profits as the end of the year approaches. “It’s been a very good year for a lot of people, and it makes sense that players are going to square up positions today ahead of the U.S. holiday and month-end,” said Michael Woolfolk, strategist at BNY Mellon in New York. U.S. markets will be shut next Thursday for the Thanksgiving holiday, while Monday marks a national holiday in Japan. Worse-than-expected quarterly results from computer maker Dell Inc ( DELL.O ) and homebuilder D.R. Horton ( DHI.N ) helped push U.S. stocks lower in the third straight negative session for Wall Street. [ID:nN20225607] A decline in technology shares is problematic, and “not a sign of a healthy market,” said Quincy Krosby, market strategist at Prudential Financial in Shelton, Connecticut. “We’re not writing the obituary for this market, but it is consolidating, getting far more careful. It is prudent to take some money and some risk off the table,” Krosby said. At 1 p.m., the Dow Jones industrial average .DJI was down 48.51 points, or 0.47 percent, at 10,283.93. The Standard & Poor’s 500 Index .SPX was down 7.19 points, or 0.66 percent, at 1,087.71. The Nasdaq Composite Index .IXIC was down 18.45 points, or 0.86 percent, at 2,138.37.  Continued… Read the r est here: GLOBAL MARKETS-Global stocks fall, dollar gains on risk fears (at Reuters)

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By Scott Anderson TORONTO (Reuters) – The Canadian dollar fell on Friday, hurt by weaker equity and commodity prices, including a drop in oil and gold, and broad-based U.S. dollar strength as many investors lost their appetite for risk. The greenback rose against a range of currencies on Friday, extending the previous day’s gains, as investors retreated from riskier assets including higher-yielding currencies. “We are very much caught up in the broader theme of risk aversion that has gained further momentum overnight. On the back of that we saw equities selling off, commodities selling off and then on the flipside the U.S. dollar rallying,” said Matthew Strauss, senior currency strategist at RBC Capital Markets. “There is no surprise that the Canadian dollar struggled overnight versus the U.S. dollar.” At 8:30 a.m. Canada’s currency was at C$1.071 to the U.S. dollar, or 93.37 U.S. cents, down from Thursday’s close C$1.0635 to the U.S. dollar, or 94.03 U.S. cents. The currency touched a session low of C$1.0733, or 93.17 U.S. cents its weakest level since November 9. The greenback’s gain and falling risk appetite hit commodity prices, which heavily influence the Canadian dollar because the country is a commodity exporter. Oil edged lower, dropping below $77 a barrel, extending a 2 percent fall in the previous session. Meanwhile, gold fell from $1,140 an ounce in Europe on Friday as the upward momentum which has lifted prices more than 9 percent this month was kept in check by a recovery in the dollar index. Strauss said the market would likely shrug off comments late on Thursday from Bank of Canada Governor Mark Carney who said Canada’s economy performed worse than expected in the third quarter and risks further setbacks due to the sharp rise of the Canadian dollar. Domestic bond prices were mostly higher, mirroring gains in U.S. Treasuries, with concerns about the global economy and weaker equities feeding demand for less risky assets. ($1=$1.07 Canadian) (Editing by Jeffrey Hodgson) Read more: Dollar falls as commodities, equities weaken

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* C$ at C$1.071 to the US$, hits lowest since Nov. 9 * Weaker gold, crude, equity prices weigh * Bonds mostly firmer on safe haven appeal By Scott Anderson TORONTO, Nov 20 (Reuters) – The Canadian dollar fell on Friday, hurt by weaker equity and commodity prices, including a drop in oil and gold, and broad-based U.S. dollar strength as many investors lost their appetite for risk. The greenback rose against a range of currencies on Friday, extending the previous day’s gains, as investors retreated from riskier assets including higher-yielding currencies. [USD/] “We are very much caught up in the broader theme of risk aversion that has gained further momentum overnight. On the back of that we saw equities selling off, commodities selling off and then on the flipside the U.S. dollar rallying,” said Matthew Strauss, senior currency strategist at RBC Capital Markets. “There is no surprise that the Canadian dollar struggled overnight versus the U.S. dollar.” At 8:30 a.m. (1430 GMT) Canada’s currency was at C$1.071 to the U.S. dollar, or 93.37 U.S. cents, down from Thursday’s close C$1.0635 to the U.S. dollar, or 94.03 U.S. cents. The currency touched a session low of C$1.0733, or 93.17 U.S. cents its weakest level since Nov. 9. The greenback’s gain and falling risk appetite hit commodity prices, which heavily influence the Canadian dollar because the country is a commodity exporter. Oil edged lower, dropping below $77 a barrel, extending a 2 percent fall in the previous session. [O/L] Meanwhile, gold fell from $1,140 an ounce in Europe on Friday as the upward momentum which has lifted prices more than 9 percent this month was kept in check by a recovery in the dollar index. [GOL/] Strauss said the market would likely shrug off comments late on Thursday from Bank of Canada Governor Mark Carney who said Canada’s economy performed worse than expected in the third quarter and risks further setbacks due to the sharp rise of the Canadian dollar.[nN19514256] Domestic bond prices were mostly higher, mirroring gains in U.S. Treasuries, with concerns about the global economy and weaker equities feeding demand for less risky assets. ($1=$1.07 Canadian) (Editing by Jeffrey Hodgson) Read the original post: CANADA FX DEBT-C$ falls as commodities, equities weaken (at Reuters)

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* Euro/dollar hits 2-wk low, dlr index up 0.6 pct * Europe shares down; banks park funds in Treasuries * Aussie, kiwi extend losses; on track for 3 pct weekly fall (Adds comment, details, updates prices) By Naomi Tajitsu LONDON, Nov 20 (Reuters) – The dollar rose broadly on Friday, building on the previous day’s gains as investors pared back riskier assets, prompting higher-yielding currencies such as the Australian dollar to lose their appeal. European shares .FTEU3 were down as much as around 1 percent on the day while oil prices slipped and gold retreated further from a record high, suggesting that investors were taking risk off the table as the year-end season draws near. “People have been reducing risk, be it because of Thanksgiving in the U.S. next week or month-end,” said Adarsh Sinha, currency strategist at Barclays Capital in London. He added this was putting selling pressure on sterling, in addition to the Australian and New Zealand dollars. Investors pared dollar short positions, while the greenback was also supported as banks parked funds in safe-haven assets such as U.S. government bonds. Rates on short-dated U.S. government paper fell on Thursday, with the two-year bond yield falling to the year’s low of 0.68 percent. Three-month bills traded near 1 basis point and six-month bills fell to near record lows, traders said. That was largely due to funds booking profits and parking their cash in U.S. government bonds to “window-dress” their books ahead of closings at the end of this month and next. The dollar index was up 0.6 percent on the day at 75.770 .DXY, well above a 15-month low of 74.679 touched on Monday. Some traders said gains in the index accelerated following a faulty trade around 75.75. By 1302 GMT, the euro was down nearly 0.7 percent at $1.4825 EUR= , after touching a two-week low of $1.4800. That level was the lower end of a hefty double-no-touch option at $1.48-1.51 which market participants suspected was rolling off later on Friday. Traders weren’t sure, however, if the option structure remained intact or not. Some said it might still be alive because traded volume at that level was so light, but others said it was done.  Continued… Here is the original post: FOREX-Dollar up, euro hits 2-week low on risk unwind (at Reuters)

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TORONTO (Reuters) – Toronto’s main stock market index could open lower on Friday as a stronger U.S. dollar and weaker oil prices put pressure on the resource stocks. The key gold and oil companies, which account for a large proportion of the overall weighting on the Toronto Stock Exchange’s S&P/TSX composite index, were expected to feel pressure as the prices for the key commodities weaken. Toronto’s main stock index skidded on Thursday as oil prices dropped and Manulife Financial rattled investors by announcing a surprise, C$2.5 billion stock offering. Here is some of the news that may affect the market: U.S. CRUDE DROPS Oil edged lower dropping below $77 a barrel on Friday, extending a 2 percent drop in the previous session and pressured by a stronger U.S. dollar. GOLD LOWER Gold held near $1,140 an ounce in Europe on Friday as the upward momentum which has lifted prices more than 9 percent this month was kept in check by a recovery in the dollar index. CANADA’S ECONOMY Canada’s economy performed worse than expected in the third quarter and while now recovering, it risks further setbacks due to the sharp rise of the Canadian dollar, Bank of Canada Governor Mark Carney said on Thursday. DELL INC Dell Inc’s quarterly profit plunged 54 percent on lower-than-expected sales as it lost market share to competitors engaged in a budding price war in the PC market. U.S. DOLLAR RISE The dollar rose on Friday, extending the previous day’s gains as investors retreated from riskier assets, taking the shine off higher-yielding currencies such as the Australian dollar. RESEARCH ROUNDUP Following is a summary of research actions on Canadian companies reported by Reuters on Friday. * Genuity raises Celestica Inc to Buy from Hold * Canaccord Adams cuts Royal Host REIT price target to C$1.50 from C$1.80; Rating Sell. ($1=$1.07 Canadian) (Reporting by Scott Anderson; Editing by Theodore d’Afflisio) Read this articl e: Resources seen weighing on TSX

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WHITEHOUSE STATION, N.J., Nov. 20 /PRNewswire-FirstCall/ — Merck & Co., Inc. today announced the Committee for Medicinal Products for Human Use (CHMP) of the European Medicines Agency (EMEA) has recommended approval of ELONVA® (corifollitropin alfa injection) as a treatment in controlled ovarian stimulation (COS) in combination with a GnRH antagonist for the development of multiple follicles in women participating in an assisted reproductive technology (ART) program. If approved by the European Commission, Merck would receive marketing authorization for ELONVA with unified labeling valid in all European Union Member States. ELONVA is the first in the class of sustained follicle stimulants (SFS). Due to its ability to initiate and sustain multiple follicular growth for an entire week, a single subcutaneous injection of the recommended dose of ELONVA may replace the first seven injections of any daily recombinant follicle stimulating hormone (rFSH) preparation in a COS treatment cycle. “ELONVA will reduce the burden of injections for women experiencing difficulty conceiving, and the positive opinion is an important step toward a European approval,” said Mirjam Mol-Arts, senior vice president, Merck Research Laboratories. “ELONVA demonstrates Merck’s commitment to providing effective patient-focused fertility treatments and extends the company’s leadership in this therapy area.” The Phase III development program for ELONVA included the Engage trial, the largest double-blind fertility agent trial ever performed. The ongoing pregnancy rate, the primary endpoint of Engage, in the ELONVA treatment arm (38.9 percent per started cycle) was similar to that achieved in patients receiving a daily dose of rFSH for seven days (38.1 percent per started cycle).(1) About ELONVA ELONVA is an investigational product being developed as a potential treatment in COS in combination with a GnRH antagonist for the development of multiple follicles in women participating in an ART program. ELONVA is designed as an SFS with the same pharmacodynamic profile as rFSH, but with a markedly prolonged duration of FSH activity. Due to its ability to initiate and sustain multiple follicular growth for an entire week, a single subcutaneous injection of the recommended dose of ELONVA may replace the first seven injections of any daily rFSH preparation in a COS treatment cycle. About Engage Engage was a non-inferiority trial designed to compare ELONVA 150 mcg to 200 IU rFSH. A total of 1,506 patients (with a body weight greater than 60 kg) at 34 in-vitro fertilization (IVF) clinics in North America and Europe were randomized to receive either ELONVA 150 mcg or a daily dose of 200 IU rFSH, followed by rFSH (maximum 200 IU/day) from stimulation day eight onward, when required. Starting on stimulation day five, all patients received 0.25mg gonadotropin-releasing hormone (GnRH) antagonist until triggering of final oocyte maturation by human chorionic gonadotropin (hCG). The primary endpoint was the ongoing pregnancy rate assessed at ten weeks or more after embryo transfer. In the ELONVA treatment arm the ongoing pregnancy rate (38.9 percent per started cycle) was similar to that achieved in patients receiving a daily dose of rFSH for seven days (38.1 percent per started cycle).(1) The number of oocytes retrieved per attempt, the co-primary endpoint, was 13.7 (plus or minus 8.2) for the ELONVA group and 12.5 (plus or minus 6.7) for the rFSH group.(1) ELONVA Important Safety Information The most frequently reported adverse drug reactions during treatment with ELONVA in clinical trials are Ovarian Hyperstimulation Syndrome (OHSS) (5.2%), pelvic pain (4.1%) and discomfort (5.5%), headache (3.2%), nausea (1.7%), fatigue (1.4%) and breast complaints (including tenderness) (1.2%). Use with GnRH agonists is not recommended. About Infertility Infertility is a disease or condition that impairs the body’s ability to perform the basic function of reproduction.(2) It is often diagnosed after a couple has not conceived after one year of unprotected, well-timed intercourse.(3) Women over the age of 35 are encouraged to seek diagnosis and treatment for infertility following six months of unprotected intercourse.(4) Around 15 percent of couples of reproductive age have a fertility problem.(3) There are many causes of infertility including problems with the production of sperm or eggs, with the fallopian tubes or the uterus, endometriosis, frequent miscarriage, as well as hormonal and autoimmune (antibody) disorders in both men and women.(3) With infertile couples, the source of infertility lies with the male in 40 percent of cases and 40 percent with the female. The remaining 20 percent is either a joint problem or unknown, because the cause has not been identified. There are a variety of treatments available for infertility; these include surgery, hormone treatments, insemination, IVF and natural treatments, among others.(3) About Merck Today’s Merck is working to help the world be well. Through our medicines, vaccines, biologic therapies, and consumer and animal products, we work with customers and operate in more than 140 countries to deliver innovative health solutions. We also demonstrate our commitment to increasing access to health care through far-reaching programs that donate and deliver our products to the people who need them. Merck. Be Well. For more information, visit www.merck.com . Forward Looking Statement This news release includes “forward-looking statements” within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Such statements may include, but are not limited to, statements about the benefits of the proposed merger between Merck and Schering-Plough, including future financial and operating results, the combined company’s plans, objectives, expectations and intentions and other statements that are not historical facts. Such statements are based upon the current beliefs and expectations of Merck’s and Schering-Plough’s management and are subject to significant risks and uncertainties. Actual results may differ from those set forth in the forward-looking statements. The following factors, among others, could cause actual results to differ from those set forth in the forward-looking statements: the possibility that the expected synergies from the merger of Merck and Schering-Plough will not be realized, or will not be realized within the expected time period, due to, among other things, the impact of pharmaceutical industry regulation and pending legislation that could affect the pharmaceutical industry; the risk that the businesses will not be integrated successfully; disruption from the merger making it more difficult to maintain business and operational relationships; Merck’s ability to accurately predict future market conditions; dependence on the effectiveness of Merck’s patents and other protections for innovative products; the risk of new and changing regulation and health policies in the U.S. and internationally and the exposure to litigation and/or regulatory actions. Merck undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise. Additional factors that could cause results to differ materially from those described in the forward-looking statements can be found in Merck’s 2008 Annual Report on Form 10-K, Schering-Plough’s Quarterly Report on Form 10-Q for the quarterly period ended Sept. 30, 2009, the proxy statement filed by Merck on June 25, 2009 and each company’s other filings with the Securities and Exchange Commission (SEC) available at the SEC’s Internet site ( www.sec.gov ). References: (1) Devroey P, et al. A double-blind non-inferiority, randomized controlled trial comparing corifollitropin alfa and recombinant FSH during the first seven days of ovarian stimulation using a GnRH antagonist protocol. Hum Reprod 2009; doi: 10.1093/humrep/dep291. (2) Frequently Asked Questions About Infertility. American Society for Reproductive Medicine Web site. http://www.asrm.org/Patients/faqs.html . Accessed May 14, 2009 (3) http://www.icsi.ws/about_infertility . Accessed May 14, 2009 (4) Frequently Asked Questions; Questions about Infertility. Centre for Fertility and Reproductive Medicine. http://www.csmc.edu/3830.html . Accessed May 14, 2009 See the rest here: Merck Receives CHMP Positive Opinion for New Fertility Treatment, ELONVA(R) (PR Newswire)

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Oil prices edged down toward $77 a barrel on Friday after a drop in many stock markets and amid concern about the strength of the global economic recovery. By early afternoon in Europe, benchmark crude for December delivery was down 26 cents to $77.20 a barrel in electronic trading on the New York Mercantile Exchange, recovering from $77.07 earlier in the day. The contract gave up $2.12 to settle at $77.46 on Thursday. Crude prices were dragged down by uncertainty about the economic outlook, including concerns about deflation and a possible double-dip recession. Oil has seesawed between $76 a barrel and $82 for about a month as the dollar — whose fall this year has help boost crude prices from $32 in December — stabilized somewhat during the last few weeks. Investors often buy commodities such as oil as a hedge against a weaker dollar and inflation. An analysis by Petromatrix on Friday said the past four weeks have seen a pattern of “a rally on Monday/Tuesday on the Dow and dollar hype and a correction in the second half of the week after the reality check of the weekly oil statistics showing no improvement in demand.” It said $80 a barrel “has proven to be a very strong level of resistance but until now $77 a barrel has also been a strong level of support.” “We view this sideways pattern as sustainable going forward through the balance of this year,” said Galena, Illinois-based Ritterbusch and Associates in a report. On Thursday, the U.S. Labor Department said employers are still shedding jobs, and the Mortgage Bankers Association reported a surge in foreclosures. However, some analysts expect Asian economic growth, led by China, to help offset a sluggish recovery in developed countries. In other Nymex trading, heating oil fell 1.12 cents to $1.9852 a gallon. Gasoline for December delivery was down 0.44 cents to $1.9651 a gallon. Natural gas for December delivery dropped 5.30 cents to $4.289 per 1,000 cubic feet. In London, Brent crude for December delivery fell 22 cents to $77.42 on the ICE Futures exchange. Associated Press Writer Alex Kennedy in Singapore contributed to this report. Original post: Oil moves down near $77 amid economic uncertainty (AP)

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By The Associated Press FRANKFURT, Germany – German carmaker Volkswagen AG said Friday its supervisory board had approved certain agreement contracts for the planned merger with German sportscar builder Porsche, taking the companies one step closer to completing the deal. The contracts set out the organizational, structural and legal details of the agreement which was first announced in May and which is hoped to be concluded in 2011. The next step of the process will be VW shareholders approving that the company take on a 49.9 per cent stake in Porsche AG through the issuance of new shares. An extraordinary VW shareholder’s meeting is planned for Dec. 3 to take a vote on that issue. “The creation of an integrated automotive group with ten strong brands follows a compelling industrial logic,” VW, based in Wolfsburg, said in a statement. “It represents a unique opportunity for Volkswagen and is in the best interests of all shareholders. Volkswagen will further expand its position as the leading global multibrand group with the inclusion of Porsche AG and the automobile trading business of Porsche Holding Salzburg.” Volkswagen, Europe’s largest carmaker by sales, said last month it would take an initial 49.9 per cent stake in Porsche AG, based in Stuttgart. VW said it expects to pay around C3.9 billion ($5.9 billion) for the stake. Volkswagen has said it will then in turn buy Porsche SE, the holding company for Porsche AG, for about C3.55 billion starting in 2011. Shares of Volkswagen were 1.5 per cent higher at C97, while Porsche Automobile Holding shares were 2.2 per cent lower at C51.73 in Frankfurt morning trading. Read more from the original source: Volkswagen supervisory board moves closer to Porsche merger, approves contracts

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