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

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

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STOCKHOLM (AFP) – Swedish luxury carmaker Koenigsegg said Tuesday it was giving up its bid to acquire Saab Automobile from its US parent company General Motors, saying costly delays made the deal too uncertain. The announcement plunged Saab’s future into doubt. “We regret that after six months of intense and goal-oriented work we have come to the painful and difficult conclusion that we are not going to be able to carry out the acquisition of Saab Automobile,” the head of the company, Christian von Koenigsegg, said in a statement. Koenigsegg announced in September that it had teamed up with Beijing Automotive Industry Holding Co Ltd (BAIC) to buy Saab from GM. But it still needed a 400-million-euro (600-million-dollar) loan from the European Investment Bank and wanted the Swedish government to act as a guarantor. Swedish media have suggested that Saab was running short of money to continue its day-to-day operations, and doubts have flourished among experts and commentators about whether Koenigsegg would have the necessary expertise to run a major car company. Koenigsegg Group, founded in 1994, has just 45 employees and produces 18 high-end sports cars a year at more than a million euros (1.4 million dollars) each. Saab, by contrast, employs 3,400 people in Sweden alone and sold just over 93,000 cars worldwide in 2008. Koenigsegg initially announced its plan to acquire Saab in June, and the deal was originally expected to be concluded by the end of October but has been repeatedly delayed. The Swedish government, which has refused to take a stake in the struggling carmaker, as of Tuesday had still not decided whether to act as guarantor for the EIB loan. “The time factor has from the beginning been critical for our strategy to breathe new life into the company. Unfortunately, delays in completing the deal have led to risks and uncertainties that prevent us from successfully carrying out our business plan for Saab Automobile,” von Koenigsegg said in the statement. In an interview with Swedish news agency TT, he stopped short of blaming the government for the delay. “I don’t want to point the finger. It’s an incredibly complicated process,” he said. “We had a business plan but when Saab is bleeding and can’t grow as long as we’re waiting (for a decision), the economic implications and outcome of our business plan become too unclear,” he said. GM said it was “disappointed” by Koenigsegg’s decision. “We’re obviously very disappointed with the decision to pull out of the Saab purchase,” GM President and CEO Fritz Henderson said. “Given the sudden change in direction, we will take the next several days to assess the situation and will advise on the next steps next week.” Saab spokesman Eric Geers meanwhile told AFP Koenigsegg’s decision came as “a surprise.” “We’ll see what happens now. It’s up to GM,” Geers said. The head of the influential IF Metall union at Saab, Paul Aakerlund, was dismayed by the news. “This is a heavy time for all of us,” he said. Under GM’s stewardship spanning almost two decades, Saab rarely posted a profit and last year lost 3.0 billion kronor (241 million euros, 341 million dollars at the time). While some 3,400 people are employed at Saab’s factory in Trollhaettan, a town of 55,000 in southwestern Sweden, another 12,000 work for suppliers or subcontractors that directly rely on the automaker for their income. David Cole, chairman of the Center for Automotive Research in the US state of Michigan, said Tuesday’s announcement was “not that big a deal” for GM, suggesting it may find another buyer for Saab given how many cash-rich Chinese companies are jockeying for a position in the global auto industry. A Chinese carmaker, Geely, is currently trying to buy Sweden’s other carmaker, Volvo Cars, from its US parent company Ford. Purchasing a relatively “cheap” European carmaker like Saab would provide both a foothold in key markets and the technology needed to compete, Cole said. GM could also decide to hold on to Saab, as it did with German carmaker Opel, to further strengthen its European position, or shut it down, a view shared by a number of Swedish car industry analysts. Read more from the original source: Koenigsegg gives up bid for Saab

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

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

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

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

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

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

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(Adds quotes) WASHINGTON, Nov 24 (Reuters) – President Barack Obama told a joint news conference with Indian Prime Minister Manmohan Singh on Tuesday that he was committed to completing a bilateral civil agreement that would open up India’s potential $150 billion market in power plants. “I reaffirmed to the prime minister my administration’s commitment to fully implement the U.S.-India civil nuclear agreement, which will increase American exports and create jobs in both countries,” Obama said after talks with Singh at the White House. Singh echoed those words and welcomed the removal on curbs on U.S. high-tech exports to India. “The lifting of U.S. export controls on high-technology exports to India will open vast opportunities for joint research and development efforts,” he said. The 2005 civil nuclear deal that Singh signed with former U.S. President George W. Bush, ended the long nuclear isolation imposed on India after it tested an atom bomb in 1974. But several issues need to be cleared up before U.S. businesses including General Electric Co ( GE.N ) and Westinghouse Electric Co, a subsidiary of Japan’s Toshiba Corp ( 6502.T ), can compete for billions of dollars in new reactor agreements. India’s parliament has to debate a new law to limit U.S. firms’ liability in case of a nuclear accident. The United States has still not signed a nuclear fuel reprocessing agreement with India. (Editing by Sandra Maler ) ((paul.eckert@reuters.com; +1 202 789-8578; Reuters Messaging: paul.eckert.reuters.com@reuters.net)) © Thomson Reuters 2009 All rights reserved Read more from the original source: UPDATE – US committed to completing India nuclear pact-Obama (at Reuters)

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By Ka Yan Ng TORONTO (Reuters) – Toronto’s main stock index was lower on Tuesday morning due to weakness in commodity shares and evidence of a slow recovery in the U.S. economy. Strength in banking stocks stemming from firm Bank of Montreal quarterly results cushioned the fall. The top five spots the market’s list of risers were held by big banks. Bank of Montreal reported a higher-than-expected 16 percent increase in quarterly profit and said it was buying the Diners Club North America credit card business, a deal that would double its corporate card portfolio. BMO shares gained 0.5 percent to C$53.80. Toronto-Dominion Bank was up 0.27 percent at C$67.53. Resource shares were big decliners on Tuesday, led by a 1.7 percent drop in fertilizer company Potash Corp to C$118.25. Lower oil prices and a recent run-up in commodity stocks also put pressure on companies such as diversified miner Teck Resources , down 2.2 percent at C$36.55, and oil producer EnCana Corp , down 0.54 percent at C$55.60. “I think it’s just an overall sell off in the market today. It had a pretty nice run in some of these commodities so it was ripe for some profit-taking,” said Ian Nakamoto, director of research at MacDougall, MacDougall & MacTier. At 10:40 a.m., the S&P/TSX composite index was down 25.50 points, or 0.22 percent, at 11,599.28, after opening higher. The U.S. economy grew more slowly than first thought in the third quarter, but house prices rose for the fifth straight month in September and U.S. consumer confidence was up in November, suggesting a slow economic recovery is still intact. “I think it just confirms that we’re in a slow recovery here. It’s good to see a positive but it wasn’t as positive as people were expecting,” Nakamoto said. ($1=$1.06 Canadian) (Editing by Peter Galloway) See the original post here: TSX falls on commodities, but banks rise

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

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

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

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

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

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

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

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

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

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

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By Ryan Vlastelica NEW YORK (Reuters) – U.S. stock index futures pointed to a flat open on Tuesday after data showed the U.S. economy grew in the third quarter, but at a slower-than-expected pace. The economy grew at a 2.8 percent annual clip, revised down from 3.5 percent estimated last month, the Commerce Department said. Analysts forecast a 2.9 percent rate. Reduced inventory “sets up for a better fourth quarter GDP with more restocking,” said John Canally, economist at LPL Financial in Boston. “I don’t expect a whole of market reaction. There will be more data later today which will be fresher.” November consumer sentiment data and the September Case/Shiller housing price index are also on tap and could provide insight into how firmly a recovery has taken hold. S&P 500 futures rose 2 points and were modestly below fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures were up 3 points, while Nasdaq 100 futures slid 1.25 points. Hewlett-Packard Co reported a quarterly profit that matched its preliminary results late Monday, and said that while the economy remained challenging, it saw signs of a recovery. (Additional reporting by Richard Leong; editing by Jeffrey Benkoe) The rest is here: Futures little changed after GDP data

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LONDON, Nov 24 (Reuters) – European shares turned negative in afternoon trading on Tuesday after U.S. GDP data showed the economy grew more slowly than initially thought in the third quarter. By 1335 GMT, the pan-European FTSEurofirst 300 .FTEU3 index of top shares was down 0.2 percent at 1,021.86 points after rising as high as 1,025.17 earlier in the session. In its second reading of third-quarter gross domestic product, the Commerce Department said the U.S. economy grew at a 2.8 percent annual rate, rather than the 3.5 percent pace it estimated last month. [ID:nN23258482] Banks featured among the worst performers. HSBC ( HSBA.L ), BNP Paribas ( BNPP.PA ), Societe Generale ( SOGN.PA ) and UBS ( UBSN.VX ) were down 1.2 to 1.9 percent. (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 See the article here: European shares turn negative after US GDP data (at Reuters)

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TORONTO (Reuters) – Toronto’s main stock market index could open higher on Tuesday as strong results from Bank of Montreal are expected to shine the spotlight on the Canadian financial sector. Meanwhile, firm gold prices could also help prop up the resource-heavy index. Toronto’s main stock index on Monday pared early gains but ended higher, touching its highest level in nearly 14 months as an early rally in oil prices powered energy stocks, while financials gained ground ahead of a flood of bank earnings reports. Here is some of the news that may affect the market: BANK OF MONTREAL Bank of Montreal said on Tuesday that quarterly profit rose 16 percent as it set aside less money for bad loans. CITIGROUP Citigroup Inc said on Tuesday that it would sell its Diners Club North America credit card business to Canada’s BMO Financial Group, as part of its strategy to shed non-core or unwanted assets. GOLD STEADY Gold inched up on Tuesday as investors favored it as a hedge against medium-term dollar weakness and possible inflation, but remained below the previous session’s record peak as the U.S. currency edged higher. U.S. CRUDE FLAT U.S. crude oil was flat on Tuesday, held down by a firmer dollar, but trade was thin ahead of the U.S. Thanksgiving holiday and data that was expected to show crude stocks rising in the United States. MAGNA INTERNATIONAL Germany’s Porsche aims to cancel a deal that would have Canada’s Magna International build the Porsche Boxster model series under contract, a source familiar with the situation told Reuters. CANADIAN NATIONAL RAILWAY Canadian National Railway Co will implement part of its contract proposals on its Canadian locomotive engineers, the carrier said on Monday. [nN23261031] MANULIFE FINANCIAL Canada’s top life insurer Manulife Financial Corp said it agreed to buy a 49 percent stake in ABN AMRO TEDA Fund Management Co in China for $156 million in cash, following up on pledges to hit the acquisition trail. RIOCAN REIT Canada’s RioCan Real Estate Investment Trust said it plans to sell about 5.5 million units at C$18.35 apiece for gross proceeds of C$100.9 million ($94.7 million). RESEARCH ROUNDUP Following is a summary of research actions on Canadian companies reported by Reuters on Tuesday. * RBC raises Iamgold Corp price target to $21 from $18; Rating Sector Perform * MacQuarie cuts Nexen Inc to Neutral from Outperform * Genuity raises Canadian Western Bank price target to C$27 from C$23; Rating Buy ($1=$1.06 Canadian) (Reporting by Scott Anderson, Editing by Chizu Nomiyama) Read the r est here: TSX may open higher, banks in spotlight

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* FTSEurofirst 300 up 0.1 percent * Financials among top decliners, but Lloyds gains * Miners broadly positive, pharma shares gain * For up-to-the-minute market news, click on [STXNEWS/EU] By Atul Prakash LONDON, Nov 24 (Reuters) – European shares were slightly higher by midday on Tuesday, extending the previous session’s sharp gains, with stronger mining and pharmaceutical stocks outpacing weaker financial shares. At 1239 GMT the FTSEurofirst 300 .FTEU3 index of top European shares was up 0.1 percent at 1,024.27 points after falling to a low of 1,014.47 earlier in the session. It jumped 2.1 percent in the previous session, its biggest one-day percentage gain in nearly six weeks. The index, which slumped 45 percent last year, is up 22 percent in 2009 and has surged 58 percent since hitting a record low in March. Financial shares were among the top losers, with DJ STOXX banking index .SX7P down 0.6 percent. Standard Chartered ( STAN.L ), HSBC ( HSBA.L ), Royal Bank of Scotland ( RBS.L ), BNP Paribas ( BNPP.PA ), Societe Generale ( SOGN.PA ) and Commerzbank ( CBKG.DE ) fell 1 to 2.4 percent. But Britain’s Lloyds Banking Group Plc ( LLOY.L ) was up 1.4 percent after it priced its record 13.5 billion pound ($22.4 billion) rights issue at 37p per share, a smaller than expected discount, as it battles to escape a costly state-backed insurance scheme for bad debts. [ID:nGEE5AM0R8] In Germany state-backed lender WestLB [WDLG.UL] faced a down-to-the wire search for funds to help unload toxic assets as its savings bank owners baulk at more support, fuelling talk of consolidation. [ID:nGEE5AN0S5] “The market is nervous and lacks conviction so it tries to take its clue from the data releases,” said Klaus Wiener, head of research at Generali Investments. “And that will be the blueprint for the next couple of weeks – that we have good days followed by weaker days. To get out of this we need more convincing evidence on one or the other side,” he added. Across Europe, Britain’s FTSE 100 index .FTSE was up 0.1 percent, while Germany’s DAX .GDAXI fell 0.2 percent and France’s CAC 40 .FCHI was down 0.3 percent. MINERS GAIN, PHARMA UP Drugmakers, traditionally seen as defensive shares, were in demand. AstraZeneca ( AZN.L ), Merck ( MRCG.DE ), Novartis ( NOVN.VX ), Roche Holding ( ROG.VX ) and Shire ( SHP.L ) rose 0.1 percent to 1.1 percent.  Continued… See original here: European shares edge higher; miners up, banks slip (at Reuters)

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By Jan Harvey LONDON (Reuters) – Gold inched up on Tuesday as investors favored it as a hedge against medium-term dollar weakness and possible inflation, but remained below the previous session’s record peak as the U.S. currency edged higher. The prospect of further dollar weakness and more gold buying by the official sector firmly underpinned prices, analysts said. Spot gold was bid at $1,169.50 an ounce at 1221 GMT, against $1,165.85 late in New York on Monday. U.S. gold futures for December delivery on the COMEX division of the New York Mercantile Exchange rose $5.50 to $1,170.20 an ounce. Gold prices have rallied 12 percent since the beginning of November, when reports emerged that India’s central bank had bought 200 tons of gold from the IMF. Russia, Sri Lanka and Mauritius have all since also announced gold acquisitions. “Gold has proved over the last couple of days that profit-taking is not lasting very long,” said Peter Fertig, an consultant at Quantitative Commodity Research. “Investors are coming in, especially if the U.S. dollar is under pressure against the major currencies. That is driving the market, as is speculation that another central bank will buy gold.” “Definitely prices could still go higher — $1,200 is within reach, and there is no reason why it should not be reached this calendar year,” he added. Gold hit a high of $1,173.50 an ounce on Monday as the dollar slid against a basket of currencies, boosting interest in the metal as an alternative asset and making it cheaper form holders of other currencies. But prices have been kept in check on Tuesday by a recovery in the U.S. currency. The euro fell against the dollar on banking sector concerns, though it pared losses as a key measure of German business sentiment beat forecasts. WHOLESALE DEMAND Gold’s slight correction from record highs led to a pick-up in wholesale demand for the metal in major bullion consumer India, traders said. Any further dips are likely to be met by strong buying, they added. “People are asking for $1,150, we have a few orders at that level,” said a dealer with a state-run bank in Mumbai. Analysts and fund managers say that in addition to dollar weakness, inflation prospects in 2010 and more official sector buying are set to support prices. For graphic showing gold’s relationship to inflation expectations, click on: http://feedfetcher.net/wp-content/uploads/2009/11/5382c5cda7FP1109.gif.gif “The investment case for gold has become increasingly compelling, with central bank buying and a structural change in interest in gold as an investment at the retail level,” said Standard Chartered in a note. The bank said although pockets of dollar strength would likely check gold’s progress in the first half of next year, by the fourth quarter it is set to average $1,300 an ounce. The world’s largest gold-backed exchange-traded fund, the SPDR Gold Trust, said its holdings stood at 1,121.457 tons as of November 23, up 3.964 tons or 0.4 percent from the previous business day. Among other precious metals, spot silver was bid at $18.62 an ounce against $18.59, platinum was at $1,453.50 an ounce against $1,454.50, and palladium was at $372 an ounce against $369. ETF Securities, which operates exchange-traded products that issue securities backed by physical commodities, said its palladium ETP holdings rose more than 13,600 ounces to a record high of 611,924 ounces on Monday. Holdings of its platinum-backed product edged up to 423,439 ounces from 422,762 ounces, also a record high. (Reporting by Jan Harvey; Editing by William Hardy) Read more: Gold holds near $1,170/oz but dollar caps gains

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By Ryan Vlastelica NEW YORK (Reuters) – U.S. stock index futures were little changed on Tuesday, following a strong advance in Monday’s session and after Hewlett-Packard reported that quarterly profit matched its preliminary results. * Investors have been closely watching the technology sector, which is generally considered one of the first to recover from recession. * Hewlett-Packard Co , the computer and printer maker, said late Monday the economy remained challenging, but sees signs of recovery. The last Dow component to report also tripled its share repurchase program. * Investors are awaiting the preliminary estimate of third-quarter gross domestic product growth, due at 8:30 a.m. EST, and November consumer sentiment data, due at 10:00 a.m. EST * The day’s earnings diary includes H.J. Heinz Co , Hormel Foods Corp and Medtronic Inc . * S&P 500 futures rose 1.2 points and were modestly above fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures were up 2 points, while Nasdaq 100 futures were down 1.25 points. * Also late Monday, Analog Devices Inc and Brocade Communications Systems Inc reported quarterly results that beat expectations. Analog Devices also forecast higher profit margins. * Hong Kong and China stocks sank Tuesday, with Shanghai composite index off 3.5 percent, dragged down by banks. * European stocks were down 0.1 percent in morning trade, led lower by banks. Miners such as Xstrata Plc dropped along with metal prices. * Kenneth Feinberg, the Obama administration’s pay czar, is being pressed by federal officials to relax executive compensation restrictions at American International Group Inc for 2010, the Wall Street Journal reported, citing sources. * U.S. stocks snapped a three-day losing streak on Monday, as stronger-than-expected home sales data fueled optimism while a weaker dollar boosted commodity-linked stocks. (Editing by Jeffrey Benkoe) See the rest here: Futures little changed after HP, ahead of data

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

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PARIS (AFP) – The French international fashion group PPR is set to sell its consumer goods chains Fnac and Conforama to focus on its luxury brands, chief executive Francois-Henri Pinault said on Tuesday. Pinault said of his intention to sell, in an interview with the Wall Street Journal: “The sooner the better.” Without setting a timetable, he said: “We want to transform the group into something more homogeneous.” The Fnac is a distribution chain selling equipment and content in the field of entertainment such as music, and Conforama is an out-of-town chain of stores selling inexpensive furniture. Pinault said that it would be difficult to develop these two brands beyond Europe. The newspaper estimated that together they might be sold for 4.0-5.9 billion dollars (2.5-4.0 billion euros). Pinault, the son of the founder of the group which has international interests selling top luxury branded goods, said he would use the proceeds to buy companies to strengthen the luxury activities, and might also branch into the sports sector. See the original post here: PPR ’set to sell Fnac, Conforama’

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BERLIN (AFP) – General Motors will keep open Opel’s Bochum plant in western Germany, the head of the US firm’s European division, Nick Reilly, said on Tuesday. The 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 the plant, 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, half the European total. GM agreed in September to sell a majority stake in Opel, which includes Vauxhall in Britain, to Canadian auto parts maker Magna and Russian state-owned lender Sberbank. But it has since decided that it wants to keep the loss-making unit and restructure itself, with the loss of around 10,000 jobs across Europe. It has not yet said where the jobs will be cut and which plants will be closed. Go here to see the original: GM to keep Opel plant in German Bochum

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(Reuters) – U.S. stock index futures pointed to a lower opening on Wall Street on Tuesday, following the previous session’s sharp gains, with futures for the S&P 500 down 0.18 percent, Dow Jones futures down 0.26 percent and Nasdaq 100 futures down 0.38 percent at 0925 GMT (4:25 a.m. EST). Reuters – Phones hang from a trading terminal on the floor of the New York Stock Exchange, May 19, 2009. … {”s” : “^dji,^ixic,adi,aig”,”k” : “c10,l10,p20,t10″,”o” : “”,”j” : “”} Hewlett-Packard Co (NYSE: HPQ – News ) said it has 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. HP shares traded in Frankfurt were up 0.9 percent. Microchip maker Analog Devices Inc (NYSE: ADI – News ) on Monday reported higher than expected quarterly sales and forecast higher profit margins and busier factories by the end of fiscal 2010. Network equipment maker Brocade Communications Systems Inc (NasdaqGS: BRCD – News ) on Monday reported a higher than expected quarterly profit, despite concerns about competition amid a series of mergers and acquisitions among rivals. Shares in Japan Airlines Corp (Tokyo:9205.T – News ) slid to a record low on Tuesday on growing investor worries that Asia’s largest airline by revenue could face bankruptcy as it struggles to agree pension cuts. The European Commission said on Tuesday it had closed formal anti-trust proceedings against U.S. chip maker Qualcomm as complaints against the firm had been dropped. Oil slipped toward $77 a barrel on Tuesday, held down by a firmer dollar, but trade was thin ahead of the U.S. Thanksgiving holiday and data that was expected to show crude stocks rising in the United States. The dollar rose as some investors bought the currency or closed dollar-short positions before Thanksgiving. Hong Kong and China stocks sank on Tuesday, with Shanghai’s SSE composite index ( ^SSEC – News ) dropping 3.5 percent, dragged down by banks as investors took profit after a recent rally, while concerns about capital-raising plans by lenders sparked fears of shareholder dilution. European stocks were down 0.7 in morning trade, led lower by banks, while miners such as Xstrata (LSE: XTA.L – News ) dropped along with metal prices. The day’s economic agenda includes the Commerce Department’s preliminary (second) estimate of Q3 Gross Domestic Product (GDP) growth, due at 1330 GMT (8:30 a.m. EST). Investors will also keep an eye on monthly consumer sentiment data, due at 1500 GMT (10 a.m. EST). On the earnings front, H.J. Heinz Co. (NYSE: HNZ – News ), Medtronic (NYSE: MDT – News ) and Hormel Foods Corp. (NYSE: HRL – News ) are among the few companies due to report on Tuesday. Kenneth Feinberg, the Obama administration’s pay czar, is being pressed by federal officials to relax executive compensation restrictions at American International Group Inc (NYSE: AIG – News ) for 2010, the Wall Street Journal reported, citing people familiar with the matter. U.S. stocks snapped a three-day losing streak on Monday as stronger than expected home sales data fueled optimism while a weaker dollar boosted commodity-linked stocks. The Dow Jones industrial average (DJI: ^DJI – News ) gained 132.79 points, or 1.29 percent, to end at 10,450.95. The Standard & Poor’s 500 Index ( ^SPX – News ) rose 14.86 points, or 1.36 percent, to 1,106.24. The Nasdaq Composite Index (Nasdaq: ^IXIC – News ) added 29.97 points, or 1.40 percent, to close at 2,176.01. (Reporting by Blaise Robinson; Editing by Greg Mahlich) Read the original post: Stock futures signal losses; HP eyed (Reuters)

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(Reuters) – U.S. stock index futures pointed to a lower opening on Wall Street on Tuesday, following the previous session’s sharp gains, with futures for the S&P 500 down 0.18 percent, Dow Jones futures down 0.26 percent and Nasdaq 100 futures down 0.38 percent at 0925 GMT (4:25 a.m. EST). Hewlett-Packard Co said it has 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. HP shares traded in Frankfurt were up 0.9 percent. Microchip maker Analog Devices Inc on Monday reported higher than expected quarterly sales and forecast higher profit margins and busier factories by the end of fiscal 2010. Network equipment maker Brocade Communications Systems Inc on Monday reported a higher than expected quarterly profit, despite concerns about competition amid a series of mergers and acquisitions among rivals. Shares in Japan Airlines Corp slid to a record low on Tuesday on growing investor worries that Asia’s largest airline by revenue could face bankruptcy as it struggles to agree pension cuts. The European Commission said on Tuesday it had closed formal anti-trust proceedings against U.S. chip maker Qualcomm as complaints against the firm had been dropped. Oil slipped toward $77 a barrel on Tuesday, held down by a firmer dollar, but trade was thin ahead of the U.S. Thanksgiving holiday and data that was expected to show crude stocks rising in the United States. The dollar rose as some investors bought the currency or closed dollar-short positions before Thanksgiving. Hong Kong and China stocks sank on Tuesday, with Shanghai’s SSE composite index dropping 3.5 percent, dragged down by banks as investors took profit after a recent rally, while concerns about capital-raising plans by lenders sparked fears of shareholder dilution. European stocks were down 0.7 in morning trade, led lower by banks, while miners such as Xstrata dropped along with metal prices. The day’s economic agenda includes the Commerce Department’s preliminary (second) estimate of Q3 Gross Domestic Product (GDP) growth, due at 1330 GMT (8:30 a.m. EST). Investors will also keep an eye on monthly consumer sentiment data, due at 1500 GMT (10 a.m. EST). On the earnings front, H.J. Heinz Co. , Medtronic and Hormel Foods Corp. are among the few companies due to report on Tuesday. Kenneth Feinberg, the Obama administration’s pay czar, is being pressed by federal officials to relax executive compensation restrictions at American International Group Inc for 2010, the Wall Street Journal reported, citing people familiar with the matter. U.S. stocks snapped a three-day losing streak on Monday as stronger than expected home sales data fueled optimism while a weaker dollar boosted commodity-linked stocks. The Dow Jones industrial average gained 132.79 points, or 1.29 percent, to end at 10,450.95. The Standard & Poor’s 500 Index rose 14.86 points, or 1.36 percent, to 1,106.24. The Nasdaq Composite Index added 29.97 points, or 1.40 percent, to close at 2,176.01. (Reporting by Blaise Robinson; Editing by Greg Mahlich) See original here: Stock futures signal losses; HP eyed

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* U.S. stock index futures pointed to a lower opening on Wall Street on Tuesday, following the previous session’s sharp gains, with futures for the S&P 500 SPc1 down 0.18 percent, Dow Jones DJc1 futures down 0.26 percent and Nasdaq 100 NDc1 futures down 0.38 percent at 0925 GMT. * Hewlett-Packard Co ( HPQ.N ) said it has 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. HP shares traded in Frankfurt were up 0.9 percent. [ID:nN23242457] * Microchip maker Analog Devices Inc ( ADI.N ) on Monday reported higher than expected quarterly sales and forecast higher profit margins and busier factories by the end of fiscal 2010. [ID:nN23273180] * Network equipment maker Brocade Communications Systems Inc ( BRCD.O ) on Monday reported a higher than expected quarterly profit, despite concerns about competition amid a series of mergers and acquisitions among rivals. [ID:nN23258074] * Shares in Japan Airlines Corp ( 9205.T ) slid to a record low on Tuesday on growing investor worries that Asia’s largest airline by revenue could face bankruptcy as it struggles to agree pension cuts. [ID:nSP480329] * The European Commission said on Tuesday it had closed formal anti-trust proceedings against U.S. chip maker Qualcomm as complaints against the firm had been dropped. [ID:nBRU010564] * Oil slipped towards $77 a barrel on Tuesday, held down by a firmer dollar, but trade was thin ahead of the U.S. Thanksgiving holiday and data that was expected to show crude stocks rising in the United States. [ID:nSIN460213] * The dollar rose as some investors bought the currency or closed dollar-short positions before Thanksgiving. [USD/] * Hong Kong and China stocks sank on Tuesday, with Shanghai’s SSE composite index .SSEC dropping 3.5 percent, dragged down by banks as investors took profit after a recent rally, while concerns about capital-raising plans by lenders sparked fears of shareholder dilution. * European stocks were down 0.7 in morning trade, led lower by banks, while miners such as Xstrata ( XTA.L ) dropped along with metal prices. * The day’s economic agenda includes the Commerce Department’s preliminary (second) estimate of Q3 Gross Domestic Product (GDP) growth, due at 1330 GMT. Investors will also keep an eye on monthly consumer sentiment data, due at 1500 GMT. * On the earnings front, H.J. Heinz Co. ( HNZ.N ), Medtronic ( MDT.N ) and Hormel Foods Corp. ( HRL.N ) are among the few companies due to report on Tuesday. * Kenneth Feinberg, the Obama administration’s pay czar, is being pressed by federal officials to relax executive compensation restrictions at American International Group Inc ( AIG.N ) for 2010, the Wall Street Journal reported, citing people familiar with the matter. [ID:nGEE5AN04Y] * U.S. stocks snapped a three-day losing streak on Monday as stronger than expected home sales data fuelled optimism while a weaker dollar boosted commodity-linked stocks. * The Dow Jones industrial average .DJI gained 132.79 points, or 1.29 percent, to end at 10,450.95. The Standard & Poor’s 500 Index .SPX rose 14.86 points, or 1.36 percent, to 1,106.24. The Nasdaq Composite Index .IXIC added 29.97 points, or 1.40 percent, to close at 2,176.01. (Reporting by Blaise Robinson ; Editing by Greg Mahlich) ((blaise.robinson@reuters.com ; +33 1 4949 5269, Reuters Messaging: blaise.robinson.reuters.com@reuters.net)) Read the original: U.S. stock futures signal losses; HP eyed (at Reuters)

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STUTTGART (Reuters) – Germany’s Porsche aims to cancel a deal that would have Canada’s Magna build the Porsche Boxster model series under contract, a source familiar with the situation told Reuters. The move follows Volkswagen’s planned takeover of parts of insolvent contract carmaker Karmann. Volkswagen and Porsche are in the process of merging by 2011. Porsche last year awarded Magna an eight-year contract to build Cayman and Boxster models from 2012. (Reporting by Hendrik Sackmann, Writing by Michael Shields) Continued here: Porsche aims to end Magna’s Boxster contract: source

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By The Associated Press SINGAPORE – Oil slipped to near US$77 a barrel Tuesday in Asia amid mixed signs about the global economy and crude demand. Benchmark crude for January delivery was down 11 cents to $77.45 a barrel at late afternoon Singapore time in electronic trading on the New York Mercantile Exchange. The contract rose 9 cents to settle at $77.56 on Monday. Investor optimism was buoyed by a report Monday from the National Association of Realtors that October home sales rose more than 10 per cent, suggesting strength in the U.S. economy. But crude refiner Valero Energy said it shut down a plant last week because demand for oil products such as gasoline has been weak. Crude has bounced between $76 a barrel and $82 for more than a month as a weakening dollar offsets concerns about tepid consumer demand. Oil often trades inversely to the strength of the dollar as investors buy commodities as a hedge against inflation. Societe Generale said weakness in the dollar and expectations of higher inflation have provided for a floor for the oil price, limiting losses. “The ceiling has been set by weak refining margins, lacklustre demand and a global economic recovery that is expected to be sluggish,” it said in a report. In other Nymex trading, heating oil fell 0.1 cent to $1.9789 a gallon. Gasoline for December delivery dropped 0.19 cent to $1.9813 a gallon. Natural gas for December delivery slid 3.3 cents to $4.44 per 1,000 cubic feet. In London, Brent crude for January delivery rose 6 cents to $77.49 on the ICE Futures exchange. – TSX: ECA, TSX:IMO, TSX:SU, TSX:HSE, NYSE:BP, NYSE:COP, NYSE:XOM, NYSE:CVX, TSX:CNQ, TSX:TLM, TSX:COS.UN Follow this link: Oil slips to near $77 in Asia as investors eye US dollar, crude demand

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By Stephen Wright, The Associated Press BANGKOK, Thailand – Asian stock markets retreated Tuesday as China’s warning to banks to control their lavish lending underlined the risks to an economic recovery driven by easy credit. European shares were lower. Asia also got a poor cue from Japan, where stocks fell on pessimism about the strength of the world’s No. 2 economy. Gold retreated from a record and oil prices slipped to near $77. Investors shrugged off Wall Street ending a three-day losing streak Monday and figures showing that U.S. home sales rose 10 per cent in October. News that China’s central bank was warning banks to control a lending spree underscored there are limits to the easy credit which has underpinned Asia’s rapid recovery from the global recession. “The central bank has been concerned about lending to the property sector,” said Francis Lun, general manager of Fulbright Securities Ltd. in Hong Kong. “If they can put on the brakes to avoid an asset bubble it is likely to be better for the longer term,” he said. China’s Shanghai index tumbled 115.14, or 3.5 per cent, to 3,223.53 as investors fretted the central bank’s warning – which comes ahead of the government’s annual economic planning meeting – could foreshadow more measures to reduce liquidity. The index had been up 11.4 per cent so far this month. In Hong Kong, the Hang Seng index slid 348.25, or 1.5 per cent, to 22,423.14 on weakness in Chinese financial stocks. Bank of China slumped 4 per cent. Japan’s Nikkei 225 stock average dropped 96.10, or 1 per cent, to a fresh four-month low of 9,401.58. “Investors are becoming pessimistic about Japan’s economy. They are frustrated and very disappointed the government has not been able to launch measures to spur the economy,” said Masatoshi Sato, a market analyst at Mizuho Investors Securities Co. Ltd. Besides doubts about the economy, sentiment was also hurt by a strong yen, which pressures Japanese exporters by eroding their overseas profits. Among Japanese blue chips, Japan Airlines Corp. tumbled 8.4 per cent to a record low amid worries over a possible bankruptcy. Toyota Motor Corp. – the world’s No. 1 automaker – declined 1.7 per cent. Elsewhere, South Korea’s Kospi dropped 0.8 per cent to 1,606.42 and Australia’s S&P/ASX 200 index declined 0.7 per cent to 4,685 on losses in banks and miners. Markets in India, Singapore and Thailand also fell. Major indexes in Britain, Germany and France were down 0.6 per cent or more in early European trade. In the U.S. on Monday, the Dow rose 132.79, or 1.3 per cent, to 10,450.95, after losing 120 points over the previous three days. It was the Dow’s highest close since Oct. 2, 2008. The Standard&Poor’s 500 index rose 14.86, or 1.4 per cent, to 1,106.24. Stock futures pointed to losses Tuesday on Wall Street. Dow futures were off 27, or 0.3 per cent, at 10,395. Oil slipped to near $77 a barrel in Asia amid mixed signs about crude demand. Benchmark crude for January delivery was down 10 cents to $77.46 a barrel. The contract rose 9 cents to settle at $77.56 on Monday. In currencies, the dollar fell to 88.62 yen from 88.97. The euro fell to $1.4918 from $1.4964. Associated Press Writer Shino Yuasa in Tokyo and AP Researcher Bonnie Cao in Beijing contributed to this report. Original post: Asian stock markets lower as China’s bank warning hits financials; European shares fall

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HELSINKI (AFP) – Nokia, the world’s biggest mobile phone maker, said on Tuesday it would cut around 220 jobs in Japan as part of its plans to streamline its vast research and development operations. “As part of its global efforts to align its research and development (R&D) operations to be in line with its focused portfolio of future products, Nokia will be reducing its R&D activities in Japan,” the Finnish company said in a statement. Last week Nokia announced that about 330 employees at its research and development units in Denmark and Finland would be made redundant. The company employs about 17,000 people in research and development worldwide. It said that despite the planned reductions, it would continue to have “significant sourcing activities in Japan.” “Vertu, Nokia’s exclusive line of handcrafted mobile phones for the luxury market, will also continue operations in Japan unaffected by today’s announcement,” it noted. The mobile phone giant launched a cost-cutting programme last January, after its earnings fell as consumers cut back on buying handsets amid the global financial crisis. The programme aims to generate more than 700 million euros (1.0 billion dollars) in annual savings. Before Tuesday, Nokia had announced about 4,000 job reductions since January, including around 1,300 voluntary redundancy packages. Last month Nokia posted a surprise entry into red, reporting a third-quarter net loss of 559 million euros amid rising competition in the smartphone market and problems with its Nokia Siemens Networks joint venture. Read more from the original source: Nokia to cut 220 R&D jobs in Japan

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By Umesh Desai HONG KONG, Nov 24 (Reuters) – Thai interest rate swaps continued their fall across maturities on Tuesday as positions built during earlier weeks in anticipation of rate increases were reversed. In New Zealand, swap rates and bond yields rose after a survey showed inflation expectations for the next two years have jumped sharply, and that the economy will post improved growth next year. Thailand’s one year swap THBSB6TH1Y= fell 6 basis points to 1.39 percent, the lowest since April 2004. Swaps have fallen nearly 30 basis points since the start of the month. The fall was across the curve with the 2-year swaps THBSB6TH2Y= down a hefty 10 basis points at 2.06 percent. “The curve was very steep, pricing in too much recovery and expectations of a rate hike,” said a Bangkok-based fund manager. “It is now retracing back that move and cutting expectations that fiscal policy will suck a lot of money out of the system,” he said referring to earlier expectations the government will go on an aggressive fund raising programme to finance expenditure. But those spending plans were slowing down due to bureaucratic snags and political distractions, he said. The Thai bond curve steepening between July and mid-October as the market prepared for an eventual rate rise. The spread between 5- and 1-year bonds more than doubled to more than 2 percentage points. As interest rate expectations are pushed out later into 2010 or into 2011, these bets of higher interest rates in the immediate term are being unwound, dealers said. NEW ZEALAND The quarterly survey of expectations on behalf of the Reserve Bank of New Zealand (RBNZ) showed business managers forecast annual inflation to average 2.1 percent over the coming year, from 1.8 percent in the August survey. The survey also showed economic growth is expected to pick up, with gross domestic product rising 1.7 percent in the coming year from 0.8 percent in the previous survey. One-year swaps NZDSM3NB1Y= rose to 3.42 percent from 3.41 percent and the 2-year NZDSM3NB2Y= rose 3 bps to 4.41 percent. The 10-year bond NZ10YT=RR yield rose one basis point to 6.035 percent. “Today’s data will provide rich ammunition for those calling for higher rates from the RBNZ, warning of the risks of a top-side breakout in inflation,” said Sean Keane, director of Triple T Consulting and former money market trader at Credit Suisse, said in a note.  Continued… See the article here: MONEY MARKETS-Thai swaps extend slide as rate hike bets unwound (at Reuters)

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By Alan Wheatley , China Economics Editor BEIJING, Nov 24 (Reuters) – Trying where Barack Obama failed a week ago, a trio of top European Union policymakers troops to China this weekend to press the case for a stronger yuan. Their chances of success are as dim as those of the U.S. president. China regards a firmer currency as part of the strategy for eventually withdrawing policy stimulus, but financial diplomats say it has no appetite right now for renewed appreciation of the yuan, which has been re-pegged to the dollar since mid-2008. Ahead of Obama’s visit, the People’s Bank of China flagged the possibility of a shift in policy by dropping from its quarterly monetary report a stock reference to keeping the exchange rate at a reasonable and balanced level. But with exports still 14 percent lower than a year earlier and no inflation to speak of, a resumption of the yuan’s rise is a non-starter for the time being, one diplomat said. “The forces opposed to a stronger exchange rate are as strong as they were a year ago,” he said. Against this background, the EU delegation will seek to portray a rise in the yuan as just one ingredient in a policy mix that would be in China’s own interest to adopt as it strives to redirect economic resources from exports to domestic demand and the jobs-rich services sector. European Central Bank Governor Jean-Claude Trichet; Luxembourg Prime Minister Jean-Claude Juncker, who chairs the Eurogroup of euro-zone finance ministers; and Joaquin Almunia, the EU’s commissioner for economic and monetary affairs, will hold talks on Sunday in Nanjing on the eve of an EU-China summit. The three are due to meet Premier Wen Jiabao and Zhou Xiaochuan, the governor of the People’s Bank of China, among others. COORDINATING EXITS The EU officials are also eager to discuss how to coordinate the winding down of stimulus policies, mindful that such a move by China could have repercussions across global markets. The end of the second quarter of 2010 might provide a window for China to exit from its ultra-loose policies, according to a researcher with a state planning agency. [ID:nPEK271539] As they did on an earlier mission in 2007, Trichet, Juncker and Almunia will stress the need for a rise in the effective exchange rate (EER) of the yuan, which measures its value against all China’s trading partners. Because of its tie to the weakening dollar, there has been a 9 percent depreciation since March in the yuan’s EER, which is the decisive gauge of a country’s currency competitiveness. The EU will argue that, to the contrary, economic circumstances demand a stronger currency: China has increased its global market share during the crisis; its economy is again growing close to potential; and the central bank is still piling up foreign exchange reserves at a breakneck pace.  Continued… View original post here: PREVIEW-EU has faint hope in quest for stronger yuan (at Reuters)

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