The return of $ 100 oil has become the biggest bet in the oil options market.

The return of $ 100 oil has become the biggest bet in the oil options market.

The price of the options for future purchase in December 2011 at $ 100 per barrel jumped 14 percent on 24 November, the biggest daily gain in three months. called open interest for the contract has risen 51 percent this year to 45,424 lots, the highest for any choice of crude on the New York Mercantile Exchange.

The increase in options trading of $ 100 oil shows some investors anticipate will increase by at least 19 percent to the levels reached in 2008. While crude oil is up 6.3 percent this year, the economy recovers, Morgan Stanley, said prices of November 1 to $ 100 next year to replace reduces production capacity. At the same time, BNP Paribas SA said on November 18 price increases "will be difficult", as the Fed tries to revive the U.S. economy through a long program to encourage and Europe struggles to contain the crisis of sovereign debt.

"The push and pull in oil prices continues as market concerns short-term debt hide improved oil market fundamentals," said Lawrence Eagles, global head of commodities research at JPMorgan Chase & Co. in New York in November 1926 report.

Options contracts that allow investors the right to buy futures in December 2011 at $ 100 a barrel rose to $ 5.55 on 24 November, from 4.87 dollars the previous day, the biggest increase since August 27  . Have an average of $ 6.38 this year and ended last week at $ 5.46.

Not so fast

When asked today about the rise of oil at $ 100, Deutsche Bank AG chief energy economist Adam Sieminski said in Washington that "oil could reach as high, but I really do not think it will come in the next six months."

"Oil will remain stronger than just the basics of improving, things start to look good in 2012, 2013, 2014," Sieminski said in an interview ओं Television Deirdre Bolton in "Inside Track."

Oil futures broke two weeks of declines on the Nymex last week, rising 2.8 percent. The contract for January compared to months rose 0.4 percent today to $ 84.11 a barrel at 10:18 am in New York. December 2011 futures traded at $ 87.13.

"Definitely there are downside risks, but you still have other risks are higher," said Jeff Currie, head of London's commodities research at Goldman Sachs Group Inc., which last year correctly predicted that oil would reach U.S. $ 85 in late 2009 and is now trading at $ 100 in 12 months. "U.S. economic data have surprised to the upside. This shifts the focal point back to the U.S."

Ireland Rescue

While oil has climbed this year, has lagged behind the increase of 59 percent in GSCI Standard & Poor's of 24 commodities. An increase of $ 100 also track the record $ 147.27 a barrel reached on July 11, 2008.

Oil futures have fallen 4.2 percent since Nov. 11, after China said it would raise bank reserve requirements to curb lending and Ireland led to talks on a rescue plan led by the European Union .

The crude had risen by 6.6 percent in the five days ending on 05 November, the week the Fed announced it would buy an extra $ 600 billion of bonds in a second round of so-called quantitative easing.

"Sugar Rush"

With the "sugar rush" quantitative easing further, "another price advantage will be difficult," said Harry Tchilinguirian, BNP Paribas chief market strategist for commodities in London in a note dated 18 November.

Hedge funds betting on oil cut the week before, the reduction of so-called net long positions by 15 percent, the most in almost three months, according to weekly commitments from the Commodity Futures Trading Commission Merchants report 19 November. Bets on gains in crude prices rose to the highest level in at least four years in the week before the Fed announcement.

Americans increased spending for the fifth month in October with home purchases increased 0.4 percent, the Commerce Department said Nov. 24. The number of people filing unemployment claims fell to 407,000, the lowest level in more than two years in the week ended November 20, the Labor Department reported the same day.

Even if the U.S. recovery teeters, investors are betting on China to keep oil prices. The consumer of the fastest growing oil consuming 9.6 million barrels per day in 2011, second only to 19.1 million barrels a day to be used in the U.S., according to the seat in Paris, International Energy Agency. oil demand of China will increase by 4.2 percent next year while the U.S. be reduced by 0.2 percent, the IEA said.

World Record Demand

"Global demand for oil is expected to reach a new record in 2011," said Francisco Blanch, head of New York commodities at Bank of America Merrill Lynch. "The underlying economic outlook remains positive. We're still looking for the economic growth due to quantitative easing and accelerating growth in emerging markets."

Most members of the Organization of Petroleum Exporting Countries, which supplies 40 percent of world oil, have said they are comfortable with prices between $ 70 and $ 90 a barrel. Libya opinions $ 100 as acceptable. OPEC Secretary General Abdalla El-Badri, said prices of $ 100 does not necessarily damage the overall recovery of the system or to increase production if not accompanied by a supply disruption.

"If there is a physical shortage, I think OPEC will act," said El-Badri said in an interview on 24 November in London. OPEC will meet next in the Ecuadorian capital of Quito, on 11 December.

senior analysts from the IEA, founded by consumer countries in 1974 in response to the Arab oil embargo, we also expect oil prices to grind higher over time.

"In the markets in terms of oil, I think the era of cheap oil is over," said IEA chief economist Fatih Birol of a conference in Budapest on 26 November. "There may be zigzags in the future according to the economy, this and that, but the general trend is that we will see higher oil prices."

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Ireland Wins $113 Billion Aid.

European governments sought to quell the market turmoil threatening the euro, the delivery of Ireland from 85 million euros (113 million) aid package and dilute proposals to force bondholders to bear some costs bailouts in the future.

European finance chiefs end talks on the crisis in Brussels yesterday to approve an agreement on the Franco-German post-2013 rescues which means that investors will not automatically lead to loss to share the cost to taxpayers than the German Chancellor Angela Merkel, originally proposed by the dismay of bond traders.

Individual decisions were not enough to placate investors today that the crisis is now. Ireland 10-year bonds erased an early advance, European equities and the euro declined and the cost of insuring the debt of Spain and Portugal in the event of default soared to record levels.

"The idea that a rescue package for Ireland would set up a firewall and stop the fear of contagion is clearly discredited," said Preston Keat, research director at Eurasia Group, a political consultancy in London. "Portugal and Spain already facing market pressures."

Six months after the Greek rescue exposed flaws in the makeup of the euro and fed doubts if 16 countries belong to the same monetary union, political leaders met again at a race meeting on Sunday to calm the markets. In a move yesterday, third, Greece said it could have an additional year of four and a half to pay for emergency loans totaling 110 million euros to match the period of seven years trying to Ireland.

Weak euro

The euro weakened against all but one of its 16 major counterparts after falling 3.2 percent against the dollar last week. The Stoxx Europe 600 index fell 0.8 percent to 264.54 at 12:52 pm in London.

The performance of the Spanish 10-year bond rose 14 basis points to 5.35 percent, the highest since 2002. That pushed the German bond premium to 261 basis points, within 4 basis points to register the era of the euro. Portuguese 10-year yields rose 9 basis points to 7.23 percent and similar maturity Italian bond yields rose 11 basis points to 4.54 percent. Performance bonds in Ireland increased by 6 basis points to 9.42 percent.

Germany, which built the euro on the principle of budgetary discipline, he unleashed the last phase of the crisis calls for a "permanent" system from 2013 to allow countries to restructure their tax debt problems and reduce the value of holdings bonds.

Untimely Policy

The German pressure encountered criticism from politicians in other parties, who called at the wrong time, and from the European Central Bank President Jean-Claude Trichet, who warned that disrupt the bondholders. Merkel, who has faced domestic criticism to help the residents of the EU, yesterday left the court for an automatic sanction, pledging to give the IMF a role in the determination of losses on a case by case basis .

The new proposal, the fast lane of a debate scheduled for December, could introduce "collective action clauses" for debt sold in 2013, allowing governments more fiscally concerned to renegotiate bonds. EU governments seek those enshrined in the block in mid-2013 and pair it with a cash emergency fund to replace the then expiring.

Trichet, on Thursday called the commitment to a "useful clarification" and the ECB's Governing Council said the Irish program "to help restore confidence and to safeguard financial stability in the euro area."

"Herd behavior"

"There's a lot of herd behavior in the market," said Commissioner Economic and Monetary Affairs Commissioner Olli Rehn. "We want to clarify any possible confusion."

export-driven economy of Germany has powered through the crisis of the euro, with business confidence at a record level in November and the expansion of the outgoing government of 3.7 percent this year, the fastest pace in more than one decade. That resistance in contrast to the recession in Greece and Ireland, the division of the euro area among the best placed countries in the wake of the German economy and the poorest in the periphery of the continent.

Yesterday's decision to bring "hope to prevent the contagion spread to other countries but not relate to problems of long-term solvency," said Andrew Bosomworth, a fund manager based in Munich at Pacific Investment Management Co. "It a missing-the-power-for-the-road solution instead of recognizing and addressing the problems of insolvency "here and now."

Ireland said it would pay average interest of 5.8 percent of loans, which are broken down into 45 million euros from European governments, 22.5 million euros from the IMF and 17.5 million euros of cash reserves Ireland and domestic pension funds.

Real Options

"I do not think there's any other real options," said Irish Prime Minister Brian Cowen told reporters in Dublin.

A day after more than 50,000 demonstrators marched through Dublin to report Cowen cuts budget to avoid financial ruin, the EU gave Spain a year until 2015 to get its government budget deficit limit of 3 per euro percent of gross domestic product.

Including the bill to shore up Irish banks, the deficit is expected to reach 32 percent of GDP this year, the highest in the history of Euro 12.

Cowen has overseen the collapse of Ireland's banking system and public finances, leading to recession and unemployment near 14 percent. Cowen's government is pulling the thread. The Green Party, a partner in the coalition, wants the elections in January, last week his party lost a special election for a vacant seat and some of his colleagues are hitting your leadership.

UK loans

led banking close links to Britain, a user of not contributing to euro 110 million dollars in ransom euro Greece in May to contribute to the package of € 3,800,000,000 Ireland.

"That is money that fully expected to return," said Minister of Finance, George Osborne told reporters in Brussels. "It is in the national interest of all and in Britain's national interest that we have some economic stability in Ireland and indeed in the whole euro area."

The agreement for Ireland focus shifts to Portugal, which last week approved cuts deeper into spending more than three decades with the aim to get back on the limits of EU deficit for the year 2012. HSBC Holdings Plc estimates it needs to find € 51500000000 over the next three years to meet your budget and needs likely to bond redemption.

While Greece let the budget get out of hand and Ireland fell prey to a housing crisis, Portugal suffers from a lack of competitiveness that keeps the average economic growth below 1 percent in the last decade. His government has also been slower to reduce its deficit than others, with the central government deficit expanded 1.8 percent in the first ten months of the year, Spain fell by 47 percent.

Portugal Delay

Like Ireland, Portugal does not need money immediately to run the government. It has completed this year, sales of bonds and do not face redemption through April. The debt agency plans to hold an auction of tickets for 12 months on 1 December.

"Portugal does not see the need to seek help," said German Finance Minister, Wolfgang Schaeuble, yesterday.

Spanish Economy Minister, Elena Salgado, also reiterated that its economy - the euro zone's fourth largest and almost double the size of Portugal, Ireland and Greece combined - do not need the help either. In addition to cutting its budget deficit, the country has led to regional expenditure under better control and half of its debt is held in the country, limiting the threat of withdrawal of foreign investors. It too does not face the first of its 45 million euros in bond repayments until April next year.

Spain concern

Investors however, have expressed concern that the EU pot rescue may be smaller than advertised, and therefore not large enough to save Spain. HSBC sums show that the country needs € 351 000 000 000 over the next three years.

In practice, the EU can only be able to deploy € 255 000 000 000 of the 440 million European Global Financial Stability, according to Nomura International Plc. That's because the bailout fund financed by bond issues and to achieve a AAA rating, governments agreed to set aside cash and loans linked to the creditworthiness of the donors.

The rest of the rescue party consisting of 60 million euros from the European Commission and € 250 000 000 000 pledged by the IMF.

The revival of the crisis, the ECB may again postpone his departure from the emergency measures as it did at the height of the Greek crisis. It is also likely to provide more help to banks in Spain and Portugal, and ultimately, could expand its program of bonds with an option to purchase of Spanish stocks and perhaps make larger purchases of assets, said Janet Henry, chief economist for Europe at HSBC in London.

"We have removed the doubts and uncertainty and we must maintain the elimination of the reasons for panic, our goal is to bring the tools of speculators," said Finnish Finance Minister Jyrki Katainen reporters in Helsinki today. However, "there is no guarantee that the crisis will continue and even expand, in spite of the loans in Ireland."

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EU Says Growth to Weaken as Crisis Remains

Europe's economy could weaken next year budget cuts to stem a crisis of mounting debt affect consumer demand and faltering global growth slows exports, said the European Commission.

the gross domestic-product growth in the 16-nation euro may weaken to 1.5 percent in 2011 from 1.7 percent this year, the Brussels-based commission said in a report released today. While Germany may expand 3.7 percent this year, the economies of Ireland, Greece and Spain will continue to decline.

The recovery is "making progress" although the "shock of the global crisis still casts its shadow over the economy," the commission said. "The level of uncertainty for the outlook remains very high."

Ireland yesterday became the second nation euro to receive external assistance as governments try to stop a debt crisis that pushed up borrowing costs and the economic outlook clouded. While growth remains "fragile and uneven," Germany will continue to power the region's recovery, the commission said.

"Investors remain worried," said Juergen Michels, chief economist of the euro-region for Citigroup Inc. in London. "Without Germany, the growth outlook would be rather bleak."

The euro was little changed after the report, trading at $ 1.3176 at 12:09 pm in Frankfurt, up from $ 1.3242 yesterday.

Germany Surge

Recent data indicate a slowdown in the pace of recovery may be modest. The economic sentiment rose to its highest in three years in November, the commission said in a separate report today. German executive sentiment rose to a record and growth in European service and manufacturing industries accelerated.

In Germany, Europe's largest economy, GDP increased 2.2 percent in 2011, today's report showed. In France, the economy may expand 1.6 percent this year and next, while Italy's GDP would increase by 1.1 percent in both years.

In 2011, Greece and Portugal are the only two economies in the euro area show a contraction, the commission said. Ireland's economy may expand 0.9 percent.

"This recovery is uneven, a number of Member States are going through a difficult period of adjustment," said European Economic and Monetary Affairs Commissioner Olli Rehn said in a statement. The commission said that "persistent concerns about fiscal sustainability" is "one of the biggest challenges."

The risks of debt

Ireland 85 million euros (112 million) aid package is intended to quell market turmoil that threatens to spread to countries like Portugal and Spain. The EU also said yesterday to Greece, he received a ransom earlier this year, could have an additional year of four and half years to repay their loans.

"The repetition of the negative feedback loop between increased sovereign risk premia, the ability of banks to lend and the prospects for economic growth can not be excluded", the commission said, adding that "we believe" this scenario is likely.

European Central Bank, Christian Noyer, a member of the council, said today in Tokyo that the economic recovery remains "on track" and the region faces a crisis of confidence.

European stocks rose today, with the Stoxx Europe 600 Index gain as much as 0.8 percent. The premium investors charge to keep Irish 10-year bonds on the German benchmark bonds fell 8 basis points to 638 basis points. It reached a record 656 basis points on November 26, nearly triple expansion four months ago.

The export demand

European companies have been forced to rely on the fastest growing economies to boost sales as budget cuts discouraged home consumption. Porsche, the German sports car manufacturer 911, said Nov. 24 that operating profit increased more than sevenfold in the October quarter.

Export demand helped fuel the fastest growing region in four years in the second quarter, with the economy expanding 1 percent. Growth weakened to 0.4 percent in the third quarter.

"The acceleration of growth seen in particular in the second quarter of this year was exceptional and not likely to last", the commission said. However, "we see a welcome broadening the base of the recovery, domestic demand in the foreground, and recovery more self-sufficient."

While the euro fell against the dollar in the first half of the year, the Greek crisis undermined the currency, is acquired 11 percent since falling to a minimum of four years in June, making exports less competitive and growth weakening global.

The Organization for Economic Cooperation and Development on Nov. 18 lowered its forecast for world growth next year to 4.2 percent from 4.5 percent and predicted a "weakness." The economy of the euro-region can grow by 1.7 percent this year and next, leaving a U.S. expansion, forecasting group based in Paris.

U.S. Federal Reserve decided on 3 November purchase of $ 600 billion in Treasuries to stimulate the world's largest economy. The ECB has bought government bonds and extended emergency liquidity by banks in 2011 to help restore investor confidence in the region of the coin.

The central bank in Frankfurt will publish its latest economic forecasts for this year and next December 2nd.

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Japanese politicians need to find ways to boost economic growth ( Inflation )

Japanese politicians need to find ways to boost economic growth and can not have legislation that would reduce the independence of the Bank of Japan to cure deflation, a ruling Democratic Party of Japan, said the legislator.

"We can not expect Japan's economy to overcome its difficulties because the law is revised - the problems are not so simple," said Shinichiro Furumoto, 45, chairman of the DPJ panel fiscal policy and finance, in an interview November. 26 in Tokyo. "Only the application of quantitative easing and the yen producing not stimulate demand."

Some lawmakers and the opposition wants to revise the BOJ law to force the central bank to adopt an inflation target to help win more than a decade of falling prices. Furumoto feedback signal DPJ lawmakers call for change can be difficult to convince party members that shape economic policy.

Discussions on the degree of influence that the government should have on monetary policy must be conducted "with care" and people should be aware that central bank independence is guaranteed by current law, said Furumoto, whose panel responsible for making recommendations to the government fiscal policy.

Some 150 lawmakers from the DPJ, who call themselves the league to combat deflation, said last week the Bank of Japan should adopt an inflation target to eradicate the decline in prices and boost employment. opposition group of his party this month introduced a bill to the diet calling for a revision of the law.

Tax Incentives

The government needs to boost personal consumption through subsidies and tax incentives that are similar to recent incentive programs have promoted the purchase of fuel-efficient cars and electronic products, Furumoto said.

The lawmaker said the DPJ consumption boost "will create the demand for money" and is "only demand so that the policy of printing money will stand."

Bank of Japan, Masaaki Shirakawa said today that the increase in growth expectations between business and consumers and the demand for recovery are crucial to overcoming deflation.

Japanese companies have 164000000000000 yen ($ 1.95 billion) in cash on hand because they have not found attractive investment options, said in a speech in Nagoya, central Japan.

The ruling party is considering increasing inheritance taxes while reducing gift taxes to encourage older generations to pass wealth to younger people who have more incentive to buy cars, houses and property, Furumoto said.

Despite increased calls by politicians for a review of the Bank of Japan Law, the Prime Minister Naoto Kan and Yoshihiko Noda finance minister have openly discussed the need to review the objectives of central bank policy.

Government Views

Furumoto, who also served as parliamentary secretary to the Ministry of Finance said the government's views on the economy have been reflected in the policy of the Bank of Japan due to Khan and Noda have been in close contact with central bank officials.

"Some argue that the Bank of Japan is doing what she wants because she is protected by its independence," said Furumoto. "But that would imply that the prime minister and finance minister have not played any role in politics, and I do not agree with the opinion."

Furumoto also said the Bank of Japan and the adoption of a similar price to inflation targeting, with board members saying they consider price increases of around 1 percent as stable. The bank last month agreed to maintain a "policy of virtually zero rate" to a point of view arises from sustained price increase.

Governments of countries like the United Kingdom and New Zealand set inflation targets for central banks and banks to decide for themselves the policy steps needed to achieve those goals. The Bank of England governor must write a letter of explanation to the Treasury, inflation can not be kept within limits.

The Bank of Japan, 1998, the Act strengthened the bank's independence, ending the government's authority to fire the governor and deputy chiefs and their right to oversee the operations of the Bank of Japan. He claims that the bank should strive to achieve "price stability, thereby contributing to the healthy development of national economy."

Furumoto said the law can be interpreted as it is part of the mandate of the Bank of Japan to support employment, although not explicitly say so, because the policies to stabilize prices can also create jobs.

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Noyer said "Nonsense," Let the whole Euro-Region of Ireland is experiencing problems

central bank chief in France rejected the view that the euro zone is experiencing a systemic crisis, minimize the risk of contagion from the turmoil in Ireland and hailing the euro as a "great success."

It is "absurd" to generalize to all the current problems in Europe, Bank of France, Christian Noyer, governor, told a press conference today in Tokyo. While Ireland is coping with the legacy of a property bubble burst in the market and Greece, with the consequences of mismanagement of its debt, Spain is in "good hands" and has already addressed the problems with smaller banks said.

Noyer statements in front of a sell-expanding government bonds from the Euro-Greece's rescue earlier this year, with yields of periphery nations called euro zone growing at its highest since 1991, the introduction euro. The currency headed for its biggest monthly decline against the dollar since May, on concern the debt crisis from spreading.

"Non-standard measures will be maintained as long as necessary" in the European Central Bank, Noyer, a member of the ECB governing council, also said. May the bank agreed to extend emergency loans to banks and buy bonds directly from the government for the first time.

The ECB buy bonds from the Portuguese government on 26 November, according to four people with knowledge of operations, amid speculation that the nation will be under pressure to tap the European rescue fund. Janet Henry, chief European economist at HSBC Holdings Plc in London, said that the authorities can provide more help to banks in Spain and Portugal and, ultimately, could expand its program of bonds with an option to purchase of Spanish stocks.

Noyer in Spain

Spain's problems are not of the same magnitude as that of Ireland, Noyer said today. "In Portugal, the situation is improving as expected. The Portuguese government has confirmed its commitment to ensure a reduction of public deficit to 4.6 percent in 2011," he said, referring to the proportion of gross domestic product.

In general, Europe's public finances are in better shape than in many countries including the U.S., the central banker said in previous comments at a conference in Tokyo.

Europe's economic recovery is "on track" and the region faces a crisis of confidence in its currency, he said. The euro is a "great success" and has helped the ECB's price stability, he said. Questions about the future of the euro are "completely" off the table, also said today.

European finance chiefs in crisis talks ended yesterday in Brussels with 85 million euros (112 million) aid package for Ireland. Meanwhile, Greece was given an extra year of four and a half to pay for emergency loans totaling 110 million euros to match the period of seven years trying to Ireland.

Honor debts

Europe has addressed the challenges "very seriously", and Ireland has begun to take harsh measures, Noyer said.

"The package is very well suited and restore competitiveness in Ireland," he said. "It will be an important goal for all members of the European Union to do everything necessary to be able to fully meet its debt in the future."

Finance ministers yesterday approved a Franco-German agreement on the post-2013 rescues which means that investors do not automatically take the loss of sharing the cost with taxpayers and German Chancellor Angela Merkel, initially proposed.

In his speech, the French central bank chief called for an international effort to address the volatility of financial flows, saying that a patchwork of individual efforts to establish venture capital controls to prevent pressures without moving.

The volatility is increasing in foreign currencies and commodities, and market changes can exacerbate the economic crisis, he said.

Capital controls

Noyer proposal highlights the danger of increased capital flows to emerging markets that policy makers are concerned about asset bubbles cause. UN has adopted different measures to manage risk, with South Korea that includes a tax on foreign investments in bonds and Indonesia for a lock-up period for foreign purchases of bills.

While a country may have an impact on the inflow of foreign capital through the introduction of controls, the risk is that the money then flows elsewhere, putting pressure on other asset markets, Noyer said. He said the global capital markets are closely linked, and that volatility can be induced by policy makers.

"In advanced economies, monetary easing, along with inhibitions in credit growth, creates a potential for the future of financial imbalances," Noyer said, without specifying whether the Federal Reserve plan to buy $ 600 billion in Treasury bonds is a source of volatility.

The concern of the bubble

Officials of the nations from Brazil to China have said the Fed's attempt to boost U.S. growth risks triggering capital flows to emerging markets that create asset bubbles. Noyer said it is not good for nations to challenge the policies of the other currency.

While the Group of 20 has launched a global campaign to build financial safety nets, no doubt about the coherence of the policy strategies of some of the world's largest economies, Noyer said. He said countries must be disconnected record accumulation of foreign exchange reserves from the management of exchange rates.

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Ireland will Pay 5.8% for Bailout as Country's Taxes

Ireland will pay an average of 5.8 percent for international rescue loans as part of an agreement that protected the senior bondholders of Irish banks in the country and maintained the policy of low corporate taxes.

The State received funds amounting to 67.5 million euros ($ 90,000,000,000), with an average of 7 1 / 2 years by the European Union and the International Monetary Fund, the government said yesterday. The average interest rate compares with about 5 percent charged to Greece for three-year loan earlier this year. Holders of subordinated bonds from the bank may have to accept "big hair cuts," said Finance Minister Brian Lenihan.

"I do not think there's any other real options," Cowen told reporters in Dublin the night after the deal was announced, adding that out of the euro or the default of bank bonds were not realistic. "We are not a nation of irresponsible."

The agreement came after the country's banking system collapse threatens to bankrupt the state, sending the yield on the Irish government 10 years to 9.2 percent on Nov. 26 and prompting concern about the spread of the rest of the euro region.

"The interest rate paid is not onerous and effectively removes Ireland from having to issue debt for the next two years," said Charles Diebel, head of market strategy at Lloyds TSB Corporate Bank in London. "Clearly, it is always about trust and this should be sufficient to restore a degree of confidence in Ireland and in particular Ireland's sovereign debt."

Bonus pledge

The premium of Ireland on the performance of the benchmark German 10-year fell 9 basis points, 637 basis points today. It reached a record 656 basis points on November 26, nearly triple expansion four months ago. Spain yield spread fell 3 basis points to 241 basis points, and Portugal was reduced from 6 to 419.

Cowen told reporters he was "not political or institutional" support in Europe to force the loss of the holders of senior bonds, which are guaranteed by the State two years ago. The bonds of the country's banks have fallen on concern that Ireland would be forced to renege on that promise.

Cowen also grabbed the tax rate to 12.5 percent of the country enterprises, which has attracted companies like Google Inc. and Intel Corp. and criticism from some European countries.

Own financial rescue

Under the agreement, Irish banks have up to 35 million euros of aid and the rest of the bailout fund will help the country finance. Spain will contribute € 17500000000 its own reserves.

When the government bond market came in October, had a stack of 20 billion euros in cash for the state until mid-2011. The country controls a pension fund € 24000000000 reserve, created in 2001 to pay pensions in Ireland since 2025. Ten million already committed to the banks.

"The market is concerned to see Ireland is the largest contributor to its own rescue," said Austin Hughes, chief economist at Dublin-based KBC Bank Ireland. "I do not think you can fold our tents and start thinking about Christmas after that."

Irish opposition politicians criticized the deal as they prepare for elections early next year.

"The interest rate of 5.8 percent is too high and borders on the unattainable," said Michael Noonan, a spokesman for the financing of Fine Gael, the main opposition party. "The government has cleared the negotiations."

The deficit target

Much of the program for its own plan of government for four years, released on November 24 that proposed 15 billion of spending cuts and tax increases to reduce the deficit to 3 percent of gross domestic product for the year 2014.

Cowen said yesterday that the State had won one more year to reach that goal if necessary. The deficit is 12 percent of GDP this year, or 32 percent, including a bank bailout.

Ireland will freeze state pensions and raise the retirement age up to 68 per 2028. The government also cut tax breaks for pensions and reduction of 10 percent for the wages of workers of the new government.

Irish banks € 8000000000 immediately to strengthen the capital, and increase by 2 million euros to shed assets, said the central bank. Lenders may use 25 billion euros, depending on how they fare in a round of stress tests in the first half of next year.

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India's bonds are directed towards the best month since May

India's bonds are directed towards the best month since May as a third consecutive quarter of growth above 8 percent allows the government to reduce its budget deficit and provide subsidies to producers of commodities.

The government will say tomorrow that the gross domestic product grew 8.2 percent in the third quarter, according to the median forecast of 30 economists surveyed by us. Finance Minister, Pranab Mukherjee, sought approval from parliament on 15 November fertilizer manufacturers to pay an extra 50 billion rupees ($ 1,090,000,000) to limit the price after adding 140 billion rupees for subsidies oil in August.

The yield on the 10-year bond fell 14 basis points this month to 7.97 percent, the debt only among the BRIC nations-called demonstration in the period. Wholesale price inflation slowed to 8.58 percent in October of this year's high of 11 percent in April. The government aims to reduce the budget deficit to 5.5 percent of GDP from 6.9 percent last year.

"They will meet the proposed target strong revenue collections," said Rohini Malkani, a Mumbai-based economist at Citigroup Inc., in an interview on 23 November. "But the extra expense of concern."

Progressive deficit

The government cut the deficit in the first six months of the year, helped by the 1.06 trillion rupiah from the sale of mobile phones and Internet services permissions. The budget deficit between April and September was 34.9 percent of the target for the year, compared with 49 percent in the same period last year, official estimates.

India bonds, which underperformed earlier this year, returned 0.8 percent this month as inflation slowed, the indexes compiled by HSBC Holdings Plc show. The advance was the best performance among the 10 markets in Asia local currency debt outside Japan, followed by Europe's largest bank. Increases in food prices moderate to a minimum of 17 months in the week ended Nov. 13, the Ministry of Commerce said on 25 November.

As the values in the third largest economy in Asia came together, yields in the other BRIC markets of major emerging nations rose. The interest rate Brazil's benchmark three-year bonds rose 67 basis points to 12.56 percent. The yield on similar maturity bonds rose 49 basis points, or 0.49 percentage point to 3.34 percent in China and 32 basis points to 6.95 percent in Russia.

Rupee gains

The rupee appreciated by 1.6 percent this year as the Reserve Bank of India raised its benchmark repurchase rate by 150 basis points to 6.25 percent, the attraction of cash flows. The currency is the worst performer in Asia this month with a 3-45.81 percent decrease per dollar, after federal investigators arrested eight bankers and brokers in India on November 24 amid allegations of improper loan disbursements.

The cost of protecting debt of state-owned Bank of India, some investors see as a proxy for the nation, up nine basis points to 172 this month, according to CMA prices. It has fallen 67 basis points from a maximum of one year reached in May on optimism that the government achieve its aim of a budget deficit.

The gap between the reference point in India to 10 years and the maturity of similar securities in the U.S. declined to 509 today from 551 basis points earlier this month. The difference is up from 375 at the end of last year.

The auction of quotas

India will hold its first auction of shares of the public debt of the same company and for foreign investors in nearly four months on 2 December, the Securities and Exchange Board of India said that on 26 November. The decision comes two months after the Finance Ministry raised the ceiling on foreign investors' holdings of debt by 50 percent to $ 30 billion.

"Inflation is under control and the fiscal deficit will not be a problem due to strong economic growth resulting in increased revenue," said Debendra Kumar Dash, a bond trader for Development Credit Bank in Mumbai, in an interview on 25 November. "We expect the yield on the benchmark 10-year to 7.75 percent in March."

While the government increased subsidies on food and fertilizer this year, decided on 25 June to free prices of petrol and diesel to reduce the loss of state refineries. Changes in fuel prices pose a threat to the inflation outlook this year, according to DH Pai Panandiker, president of RPG Foundation, an economic policy group in New Delhi.

Inflation Target

"In the short term, prices are decontrols add to inflation, but they are good from a long-term," Panandiker said in an interview on 24 November. He predicted that inflation could be as high as 6.5 percent in March, above the central bank's estimate of 5.5 percent.

The government can ignore the goal of raising 400 billion rupees in the current year by selling stakes in state companies rather than a proposed sale of shares in Oil & Natural Gas Corp. happen, Disinvestment Secretary Sumit Bose, said in New Delhi in November 1924. A deficit does not prevent the government to meet its fiscal deficit target, according to NR Bhanumurthy, an economist based in New Delhi National Institute of Public Finance and Policy.

Tax revenues increased 25.7 percent between April and September last year to 2.33 billion rupees. The Indian Prime Minister Manmohan Singh, predicts that the economy will expand 8.5 percent this year, the fastest pace in three years. The acceleration in growth is allowing policy makers to create more jobs, spend more and keep the deficit under control, according to Krishnamurthy Harihar, a treasurer at the India unit of the Johannesburg-based FirstRand Ltd.

"I think the government has done a good balance of control inflation and curb the fiscal deficit gradually pulling subsidies," said Harihar based in Mumbai in an interview on 25 November. "The market view is that the expenditure is well controlled."

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Taiwan can accelerate steps to improve relations with China After KMT's Election Win

Taiwan can accelerate steps to improve relations with China after the ruling Kuomintang party did well in key local elections, an indication of voter support cooperation President Ma Ying-jeou to the mainland.

The KMT won the mayoral vote in three of the five cities on November 27 with the opposition Democratic Progressive Party to take the rest, according to the Central Electoral Commission. The five municipalities are home to about 60 percent of the 23 million people. The DPP won more votes.

"If the KMT interprets the election result as a mandate from the people on its policies, in reality it would speed up efforts to improve relations with China," said Liu Bih-rong, a political science professor at Soochow University in Taipei. "One of the strategies may focus on the pro-KMT voters and hold them, as it can not succeed in getting the DPP's vote share."

The TAIEX index rose 0.7 percent at the end of the market in Taipei. The Taiwan dollar rose 0.1 percent to NT $ 30,800 per U.S. dollar, according to Taipei Forex Inc.

Ma has faced resistance from the Office, which deals with it can put Taiwan's sovereignty is at stake as he pushes for closer economic ties with the mainland.

The KMT retained the mayor of Taipei, its traditional stronghold, and the economic and political center of Taiwan and Taichung cities and Xinbei. Ma and his predecessor, Chen Shui-bian and Lee Teng-hui, were former mayors of Taipei.

Voters went to the November 27 elections, a day after the son of former vice president of Taiwan, Lien Chan, was shot during a campaign rally in the KMT.

Trade Agreement

Lien lost the March 2004 presidential race to Chen, who was shot on the eve of the election, sparking street protests in the allegations that may have staged the shooting to win sympathy votes. Lien, then chairman of the KMT, Chen lost by 30,000 votes out of about 13 million cast.

Ma is betting that the strengthening of trade ties with China, the fastest growing economy in the world and the island's largest trading partner and investment destination, will help strengthen Taiwan's economy.

Taiwan on June 29 signed a Framework Agreement on Economic Cooperation, the first trade agreement with China to reduce tariffs and increase access to services such as banking, securities and insurance. The signing of the agreement opens the door for Taiwan to ink agreements with other countries. Singapore and Taiwan agreed on 5 August to discuss a free trade agreement.

Policy to stay

"The cross-strait policies of Ma will remain intact," said Tony Phoo, an economist based in Taipei at Standard Chartered Plc. However, "even though the KMT had won three seats, which have lagged behind in the votes. It is a warning to the government in power, they have to drive harder to build on the economic front and back confidence among undecided voters. "

The KMT won 45 percent of the total votes in the election, behind the DPP's 50 percent count, the commission said.

"The KMT will take the number of votes remaining as a precautionary measure and work harder in the future," KMT secretary general of King Pu-tsung, said on the website of the game. He attributed the number of votes than the outcome of the elections, the city of Kaohsiung, where a third candidate vying for the support of the KMT. In Kaohsiung, the DPP won 52.8 percent of the votes and the percentage of KMT 20.5, regardless Yang Chiu-hsing claims nearly 27 percent.

Cordial relations

Relations between Taiwan and China, separated by the Taiwan Strait are in the most cordial of more than 60 years after Ma declined the position of his predecessor in favor of independence and economic relations was the priority of administration.

Tsai Ing-wen, chairwoman of the DPP, opposes China trade agreement on the basis that would give Beijing more influence over the island of jobs and costs. Tsai lost the race for mayor of the city of Xinbei to Eric Chu, a former deputy prime minister in the administration of Ma Tsai in June more than 10,000 gathered to protest the agreement.

The trade agreement will help create over 260,000 jobs and boost Taiwan's economic growth by 1.65 to 1.72 percentage points each year, the administration of Ma says.

"To promote domestic employment and wages in order to reduce the wealth gap, President Ma may have to forge further economic and trade ties with Beijing," said Chang Wu-UEH, professor of political science Tamkang University in Taipei.

China and Taiwan set to hold a sixth round of talks across the Taiwan Strait next month. Since Ma took office in 2008, the government has signed 14 agreements with the mainland. China regards Taiwan as part of its territory.

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UK house prices fell for the fifth consecutive month in November

UK house prices fell for the fifth consecutive month in November as demand for goods was reduced more in nearly two years, Hometrack Ltd. said.

The average cost of a home fell 0.8 percent from October to 155,000 pounds ($ 242,900), property researcher based in London, said in an emailed statement today. The household demand, measured by the change in registration of new buyers with real estate agents, fell 4.3 percent, the biggest decline since January 2009.

The report adds to evidence of a weakening housing market after Rightmove Plc said Nov. 15 that home sellers reduce asking prices by the most since 2007 this month and banks in the United Kingdom approved the minor number of mortgages since 2009 in October. The government has announced the largest budget compression since the Second World War and officials have warned that the cuts can damage recovery.

"Concerns about the economic outlook in the back of recent spending cuts, with expectations that housing prices are down for a period of downsizing, are driving the continued weak demand," said Richard Donnell, Hometrack director of research in the state. "In the short term we expect demand to remain weak and it will continue to exert downward pressure on prices."

price declines were led by London, Wales and southeast England, West Midlands and North West regions, which all posted a decline of 0.9 percent, Hometrack said. Values in the south of England, which recorded the strongest recovery from the recession, are under more pressure, he said.

The average time a property stays on the market before sale rose to 9.8 weeks in November, the longest since May 2009. Sellers of England and Wales and East Midlands and North West regions have to wait more than three months.

Restrictions on loans

The housing market has weakened as banks tightened lending standards, making the level of mortgage loans fall below half the peak observed in the real estate boom in 2007. Mortgage approvals fell to 30,766 in October, lowest since March 2009, the British Bankers Association said on 23 November.

While an increase in the supply of homes for sale in the last six months has helped drive down values, Hometrack said the pace of the properties of their introduction into the market is expected to slow. This trend will help limit the fall in the average 2 percent in 2011, he said.

While the UK economy posted its strongest two consecutive quarters of growth in a decade, the Bank of England, Mervyn King, said this month that the pace of expansion will slow. The country office for budget responsibility is due to publish updated economic forecasts at 1 pm in London.

The narrowing of budget also restrict consumer spending. A separate report today showed that sales in consumer service businesses such as hotels and bars fell unexpectedly in the last three months. The number of companies are saying sales volumes fell in the quarter and earnings exceeded by 18 percentage points, according to a survey by the Confederation of British Industry.

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China’s government will hold an annual economic conference in Beijing late next week

The government of China will hold an annual economic conference in Beijing late next week to establish guidelines for monetary and fiscal policy in 2011, two people briefed on the matter, he said.

Officials may consider the objectives of loans and inflation in the December 10-12 meeting, one person said, speaking on condition of anonymity. Council of State and the center of the press officers of the bank declined comment.

China's central bank said that monetary conditions will lead back to "normal" after the unprecedented lending led to the country's economic recovery since 2008. After rising interest rates in October, officials have threatened to impose price controls and pledged to use tools such as the sale of state food reserves to counter rising inflation in 25 months.

President Hu Jintao and Premier Wen Jiabao, government officials and some managers of state-owned enterprises attended the meeting last year.

The change in government policy was adopted to tackle the global financial crisis, including rising rates, the dismantling of a fixed exchange rate, and increased bank reserve requirements. At the same time, policy makers have continued to describe monetary policy as "moderately easy" and fiscal policy of the nation as "proactive."

Credit Growth

Domestic banks extended about 6.9 trillion yuan ($ 1 billion) of new loans in the 10 months through October, according to central bank data. In addition, lenders have made 600 billion yuan in new loans this month, the 21st Century Business Herald reported Nov. 23. The figures suggest that the government's annual target of 7.5 trillion yuan may be violated.

global credit growth should be reduced to 15 percent next year from an estimated 18.8 percent this year, Xia Bin, an academic adviser to the People's Bank of China, said on 25 November.

Officials at the workshop can establish a higher inflation target of 4 percent for 2011, compared to 3 percent this year and go on to describe monetary policy "wise", China Business News reported on November 24 , citing an unidentified person who has been consulted on the policy. In October, inflation was more than expected 4.4 percent.

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Michelin Stars can keep, This road is cooler: William Pesek

Michelin just added to his list of three-star restaurants in Tokyo. More ideas can be picked up at the other end of the food scene in Japan, the bento.

Rather than go the route of class last week, I met with Makiko Itoh, the popular blogger with more than 360,000 daily readers worldwide. His new "Just Bento cookbook" is aimed at the home fans full of common foods in Japan. His version fits an explosion of interest in Japanese culture and alludes to a recipe underestimated to end deflation.

Itoh book is the latest wave of "Cool Japan", which economists are realizing business may have hit more than previously believed. Japan has few growth industries, and manufacturing giants such as Toyota Motor Corp. are being pressured by global competition. Why not do more to create jobs, wealth and tax revenues around the unique qualities of Japan?

"We're finding increasingly that there are great opportunities, great here that will help the economy," said Akihiko Tamura, a Ministry of Economy, Trade and Industry official who works to strengthen ties with the nations of Asia and the Pacific.

The concept of Cool Japan is not new. However, earlier this year, Japan established an office in the creative industries, to speed things up. The data show rapidly growing interest in Japanese food, fashion, animation, comics, movies and music. There is also a growing determination to make the image of Japan on more than Hello Kitty and Pokemon - and make lots of money in the process.

Japan model

Well, this may sound like a reach. Sony Corp. out with the next player or the deployment of affordable car manufacturers of electric cars that it makes more sense given Japan's economic model. And efforts to promote Japan abroad there have been difficult times.

In April 2009, the government of then prime minister, Taro Aso, that the way it was sending three mini-skirt to teens around the world. A dress like a Japanese schoolgirl, a doll-like in style "Gothic Lolita" and a sample of the cowardly "Harajuku style." The campaign had written scary everywhere.

"There is much Japan can do to market itself abroad, and food can be a perfect way," said Itoh, 47.

Sushi, after all, has transcended jokes bait fish and is now served, including U.S. sports events.

Itoh book is also time for a world recession. The big news in Japan last week was appointed four new Michelin three-star restaurants, taking into account the nation to 26, the same number as France.

Economic recipes

Itoh approach is in the opposite direction: economic recipes. It is suitable not only for Japan but the United States, where high unemployment has cut consumers. Bento lunch is emerging rapidly around the world, as evidenced by the proliferation of newspaper articles and blogs.

And it is as good an example as any of the business opportunities that slowly but surely coming to light. The government hopes to increase revenue-Japan Cool to 57 trillion yen (678 billion) by 2020 from 49 trillion yen in 2007. That's more than the annual gross domestic product of Turkey.

Is a conservative estimate. Do not you realize how government policies could encourage a wave of entrepreneurship. fiscal adjustment aimed at stimulating the creation, marketing and export of cultural industries can go a long way toward building ground-up energy so lacking here.

Stock Market

the names of South Korea, including Samsung Electronics Co. and Hyundai Motor Co. are taking over Japan's participation in the market. labor costs through the roof are also undermining their competitiveness in the era of China. Wait for the Communist Party in Beijing loosened and moved to support startup companies. That would put more pressure on Japan Inc.

Even after a dozen years of deflation, Japan is still an expensive property in a neighborhood relatively inexpensive. Low cost in China is now Asia's dominant trading power and India not far behind. The only way Japan can compete is innovation and the cultivation of new industries. Green technologies have obvious potential. The same goes for cultural exports.

J-culture is hip, and dissemination. The trick is to excite a new generation of innovators to come aboard this high speed train profit potential. Time is something casual, too, given the difficulty of young Japanese are having on the work front. Times are tough, and more and more 20 - leaving aside some things are 9 to 5, monotone gray suit their parents' generation.

J-Hip Culture

Japan lists of best-sellers in Japan showing interest is growing. Take Itoh's editor, Kodansha International Ltd. His most recent are "The Otaku Encyclopedia: A Guide for Executives of the subculture of Cool Japan," Japanese Schoolgirl Confidential: How Teenage Girls, did a fresh nation, "and" Arcade Mania: The Turbo-charged World of Japan game centers. "

All things Japanese in the news will also come December 11 when a film based on the best-selling 1987 Haruki Murakami's novel "Norwegian Wood" hits theaters.

Cool Japan is not the answer to all problems in Tokyo. Alone will not pay a debt that is twice the size of the economy, compared to demographic challenges or see interest rates were zero. However, in a nation devoid of growth industries or clear prescriptions to end deflation, the phenomenon is more than just food for thought. It offers a glimmer of hope.

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Greece is set to get an additional four and a half years to pay for emergency loans

Greece is set to get an additional four and a half years to pay for emergency loans to match the term of seven years to rescue Ireland received yesterday. Greek bonds and stocks of cattle.

Greece in May has an aid package of three years from 110 million euros ($ 146,000,000,000) in the euro area and the International Monetary Fund to avoid defaulting on debt. Ireland won yesterday a package of 85 billion euros for seven and a half in a meeting of European finance ministers said they "quickly examine the need to align the maturity of the financing of Greece to Ireland."

"This should now eliminate any remaining doubts about Greece's ability to repay aid," said EU Economic and Monetary Affairs Commissioner Olli Rehn after the meeting in Brussels. He said the step will be preceded by talks with the Greek government would be "very important" to help ensure the "debt sustainability" of Greece.

The government of Prime Minister George Papandreou may be able to respect the original timetable for the payment of quarterly installments of aid and tax revenue falls on a forecast of the economy to contract by 4.2 percent this year and 3 percent in 2011. Increased EU estimates for 2009 Greece's debt and the deficit in mid-November forced the government to announce additional measures of austerity to achieve the goals set as a condition for receiving funds.

Budget Deficit

Greece's budget deficit last year was 15.4 percent of gross domestic product, a record for the euro area, according to EU statistics office. The gap will be 9.4 percent of GDP this year - above the original target of 8.1 percent agreed in May - and 7.4 percent next year, according to the Greek government.

Greek bonds rose today, sending the 10-year yield up 13 basis points, up 11.78 percent. Greek stocks advanced for the first time in seven sessions, led by banks and EFG Eurobank Ergasias SA and National Bank of Greece SA.

first-aid reimbursement of Greece is due in 2013. needs of the country's gross debt will rise to 70.8 million euros in 2014 from 53.2 million in 2013 on the reimbursement to the States of the EU and the IMF, IMF documents showed.

IMF Managing Director Dominique Strauss-Kahn, said in October that Greece would be willing to give more time to pay the help of the lender with headquarters in Washington, which provided 30 million euros in the Greek rescue plan, if nations Europe decide to do first.

The government of German Chancellor Angela Merkel reacted the same month, saying it "is not in favor of extending the payment schedule" for Greece and any movement as it would be "premature."

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Increasing the oil prices to a maximum of two weeks in U.S. Retail Sales

Oil rose to a maximum of two weeks as U.S. consumers spends more on the weekend of Thanksgiving last year, a sign of confidence in the economy is strengthening, and European finance chiefs gave Ireland a rescue package.

Oil traded above $ 85 a barrel, while the average U.S. buyer purchases increased 6.4 percent, with nearly 212 million going to the stores and websites, according to a report by the National Retail Federation. The European Union agreed a 85 million euros (113 billion) package of Ireland.

"People are looking at a pretty decent retail environment, and giving a boost from oil," said Michael Lynch, president of Strategic Energy & Economic Research in Winchester, Massachusetts. "The more positive outlook for Ireland is also making people feel more optimistic today."

Oil for January delivery rose 67 cents, or 0.8 percent, to $ 84.43 a barrel at 9:16 am in the New York Mercantile Exchange. It touched U.S. $ 85.03, the highest intraday price since 15 November. Futures have gained 11 percent in the last year.

Brent crude oil for January settlement rose 64 cents, or 0.8 percent, to $ 86.22 a barrel on the ICE Futures Europe exchange in London.

Futures also gained as traders bet zero temperatures and snow forecast across Europe will promote the consumption of heating oil.

"We're having the coldest November in 25 or 30 years for people to burn more oil," said Christopher Bellew, senior broker at Bache Commodities Ltd. in London.

Temperatures in Paris will be as low as minus 5 degrees Celsius tomorrow (23 Fahrenheit), compared with an average minimum of 4 for this time of year. London temperatures may refuse to at least 6 of 03 December, according to CustomWeather.

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Gold could fall in New York after the dollar rebounded against the euro

Gold could fall in New York after the dollar rebounded against the euro, curbing demand for the metal as an alternative investment.

The dollar rose to a two-month high against the euro as European governments gave Ireland an aid package of 85 billion euros (113 million dollars). The U.S. currency has gained as concern that military action in the Korean peninsula will intensify demand drove the dollar as a refuge. Gold, which typically moves inversely to the dollar reached a record $ 1424.30 an ounce on November 09.

A stronger dollar "are putting pressure on gold prices," said Daniel Briesemann, an analyst at Commerzbank AG in Frankfurt, in a report today. While prices may be "supported by geopolitical tensions on the Korean peninsula, which is making gold more attractive again as a safe haven," the package of aid for Ireland "could reduce the attraction a bit," he said.

Gold futures for February delivery fell $ 2.70, or 0.2 percent, to $ 1,361.60 an ounce at 8 am on the Comex in New York. The metal for immediate delivery in London was 0.2 percent, to $ 1,360.47.

Bullion rose to $ 1,360 an ounce in the morning "fix" in London, used by some mining companies to sell production, from $ 1,355 in the afternoon on November 26. The dollar fell today as much as 0.8 percent against the euro.

Ireland bailout

Ireland said it would pay an average annual interest of 5.8 percent in the package, which is broken down into 45 million euros from European governments, 22.5 billion International Monetary Fund and 17.5 million of reserves Cash in Ireland and domestic pension funds. European finance chiefs agreed that a future crisis management system does not automatically connect to the value of bond holdings.

U.S. and South Korean warships led by the aircraft carrier USS George Washington have begun to four days of exercises in the region. North Korea "will deal a merciless struggle against military attack on any act of provocation by intruding into its territorial waters," a newspaper Rodong comments made yesterday by North Korea's official Korean Central News Agency.

UBS cut its forecast gold $ 1,325 a month from $ 1,425, London-based analyst Edel Tully said in a report. the bank gold sales to India on November 26 were the most since Oct. 27, "indicating that there is plenty of residual physical demand on the system that will provide broad support on dips," he said.

Golden China margins

In China, the Shanghai Futures Exchange will increase the margins on gold, copper and aluminum after market close today as the country moves to curb speculation and curb accelerating inflation.

gold assets in exchange-traded products fell 1.91 to 2083.18 tons metric tons on Nov. 26. Holdings reached a record 2,104.65 tonnes on 14 October. Silver holdings fell to 159.99 tonnes 14,770.3 tonnes, data from four suppliers of entertainment.

Silver for March delivery in New York was little changed at $ 26,775 an ounce. It peaked at $ 29.34 30 years on November 9 and 59 percent this year.

Palladium for March delivery rose 1.1 percent to $ 686.55 an ounce. Platinum for January delivery was little changed at $ 1,644 an ounce.

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Iran could have missiles of North Korea

Iran obtained 19 advanced missiles from North Korea, which may lead to the Islamic nation the ability to attack the cities of Moscow and Western Europe, according to cables sent by the embassy WikiLeaks.org and if the New York Times .

U.S. officials reported the release on the eve of the departure of Secretary of State, Hillary Clinton at a security conference in the Persian Gulf, such as endangering U.S. relations with foreign governments and people in danger. Wikileaks began putting up the cables yesterday.

The 19 North Korean BM-25 missiles based on Russian design known as the R-27, could give Iran the "building blocks" for the production of long-range missiles, according to a cable published February 24 on Wikileaks. The cable did not provide concrete evidence, according to the Times, which agreed not to publish the document at the request of the Obama administration.

"North Korea and Iran have had a relationship of missiles for decades and most likely is a nuclear relationship," said Bruce Klingner, an analyst at the Heritage Foundation in Washington and former head of the branch of the Central Intelligence Agency Korea. "The leaking of classified documents provides a greater sense of trust" analysis previously carried out by external experts and, most recently in a photograph of a parade of North Korea, he said.

U.S. Press

Diplomatic cables published by The Guardian, which also received advance copies of Wikileaks, indicate and Saudi Arabia in early 2008 and other Arab governments pressed the United States to attack Iran to stop getting a nuclear bomb, although some expressed concern that a military attack could destabilize the region.

Obama has won management stiffer United Nations sanctions against Iran Security Council and sealing arms deals such as an agreement for $ 60 million with Saudi Arabia over the next 10 years.

The State Department refused to confirm the information on which Wikileaks says it's more than 250,000 documents covering a period between December 1966 and February 2010.

"I can not give veracity of Wikileaks has posted anything to the media," said Nicole Thompson, a State Department spokesman, in an interview, adding the agency policy is to refrain from commenting on certain filtering materials.

About 9,000 documents were classified as information too sensitive to be shared with a foreign government, the New York Times. None were classified as "top secret", according to the Times.

Similar tone

Along with the Guardian in the UK, France's Le Monde, El Pais in Spain and the German Der Spiegel Wikileaks obtained the documents.

On the threat of Iran, a cable published by The Guardian quoted Adel al-Jubeir, the Saudi ambassador to the U.S., citing "frequent exhortations to attack Iran and stop" Saudi King Abdullah to Iran's program of nuclear weapons. The exchange took place in an April 20, 2008 meeting between al-Jubeir, then Iraq, Ambassador Ryan Crocker and the commander of U.S. Central Command, General David Petraeus, told The Guardian.

A similar tone was struck by King Hamad bin Isa Al Khalifa of Bahrain in a November 4, 2009 conversation with Petraeus.

King Hamad, "said Iran as the source of many problems" in the region, "argued forcefully to take steps to end its nuclear program by whatever means necessary" according to a classified cable.

Hamad said that "the danger of letting go is greater than the risk of arrest," the cable quoted by The Guardian.

Increased Monitoring

Bahrain is home to the headquarters of the U.S. Fifth Fleet. The cable also revealed that the king agreed to a request from NATO to the base of an AWACS air surveillance in the country as part of a greater control of Iran.

Israeli military sources said 14 days later at a meeting of 18 November 2009, with the U.S. State and Defense Department officials, including Secretary of State Andrew Shapiro, said 2010 would be a "critical year" for Iran's nuclear program and Israel's ability to attack, according to a cable published by The Guardian.

"If the Iranians continue to protect and strengthen its nuclear sites, will be harder to target and harm," the cable said, summarizing the concerns of Israel.

The cable said the two sides discussed the need to avoid the publicity of a "next installment" of the GBU-28 bunker-buster bombs to Israel "to avoid accusations that the U.S. is helping to prepare for an attack on Iran .

Iranian response

Iran's ties with Arab countries will not be affected by the publication of the cables in the U.S., Iranian President Mahmoud Ahmadinejad, said today in a speech broadcast live on state television in Tehran.

"Our relations with Arab countries and our neighbors are very good, we're like brothers," said Ahmadinejad. "There will be affected by these reports."

The Israeli Prime Minister Benjamin Netanyahu expressed his satisfaction that the information WikiLeaks said Arab leaders were concerned that Iran's nuclear program as its own government.

"More and more countries, governments and leaders in the Middle East and around the world understand that this is the fundamental threat," Netanyahu told a news conference in Tel Aviv. "I hope that the leaders have the courage to tell the public what their nations have said about Iran."

Carrying cash

The leaked documents include details on governments and officials, including an episode last year which include the president of Afghanistan, the then vice president, Ahmed Zia Massoud, leading to $ 52 million in cash during their visit to the UAE. Massoud denied having money in Afghanistan, according to the Times.

According to another cable, a contact in China, said the U.S. embassy in Beijing in January that China's Politburo headed an "intrusion" into Google Inc. 's local computer networks. Google hacking was "part of a coordinated campaign of computer sabotage carried out by government agents, private security experts and outlaw Internet contracted by the Chinese government," said the New York Times in its account of Wikileaks cables.

Critical articles

China cyber attacks were orchestrated by a politburo member high-level articles are critical of it using the Google search engine, the Guardian reported. The Chinese Ministry of Foreign Affairs and Jessica Powell, a Tokyo-based spokesman for Google, were not immediately available for comment today.

In July 2009, Prince Mohammed bin Zayed Al Nahyan of Abu Dhabi, then supreme commander of defense of the United Arab Emirates, said that Ahmadinejad is Hitler ", The New York Times, citing documents.

Obama's government said in a statement yesterday that the embassy reporting to Washington "is a sincere and often incomplete information," is an expression of politics.

"However, these cables would endanger private conversations with foreign governments and opposition leaders," the statement from the White House press secretary, Robert Gibbs.

Republicans condemn

The Republicans also condemned the release of the cables, with Senator Lindsey Graham of South Carolina indicating the "Fox News Sunday" that "WikiLeaks people may have blood on their hands."

Wikileaks, a nonprofit group that publishes information the government wants to keep secret, published earlier in October than 400,000 documents related to the war in Iraq and about 75,000 in July in the Afghan conflict.

An Army intelligence analyst named Bradley Manning was arrested in June at age 22 and charged with illegally releasing classified information. He had said in an online chat in May that the documents to download including "260 000 State Department cables from embassies and consulates around the world," the New York Times.

The Pentagon said yesterday it will take measures to prevent future recurrences, such as monitoring of user behavior in a manner similar to measures taken by the credit card companies to detect fraud. The military will also conduct safety inspections of surveillance at the forward bases and remove the ability of teams for downloading information on removable disks.

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Canadian firms lead recovery as currency gains spur more investment

the largest companies in Canada increased investment to the top of this year's third quarter, suggesting companies are using more cash and the use of hard currency to buy assets and support economic recovery.

Capital expenditure of companies in the Standard & Poor's / TSX Composite Index that have reported results in this season earnings rose 19.2 percent from a year earlier to C $ 27 billion (26.5 billion), led by Suncor Energy Inc. and other oil producers. The pace of growth slowed from 30 per cent year-on-year increase seen in the second quarter, as pipeline companies Enbridge Inc. reduced spending.

The data support predictions by the Bank of Canada and economists such as Bank of America Corp. 's Sheryl King firms to use more of your money to fund capital expenditures in its attempt to boost competitiveness and harnessing the strengths of Canadian dollar makes imported machinery cheaper.

Companies cut spending during the recession need to increase by 20 percent over the next two years "only to replace the capital spent," King said in a telephone interview from Toronto. "If they want to reach all competitive probably have to drive the numbers up even higher."

On October 29 Bank of America Merrill Lynch report co-authored with Ryan Bohren, King estimated Canadian non-financial companies had C $ 241 billion cash deposits in the second quarter, about C $ 100 billion more than what is considered a normal level.

Low Social Capital

The corporate social capital is C $ 130 000 000 000 below where it should be given the Canadian dollar's appreciation over the last decade, the report said. The currency has strengthened 32 percent against U.S. dollar on a monthly basis over the past 10 years.

The Bank of Canada said last month the recovery in business investment has been tested with an investment recovery through June only 15 percent of the losses suffered during the recession. The bank cited an "unusual degree of uncertainty" for global recession as a possible cause.

However, the central bank raised its forecast for investment spending for the next two years due to the efforts of companies to improve competitiveness, strong balance sheets and favorable credit conditions. It provides business investment will contribute 0.3 percentage points to growth of 3 percent projected for 2010 and 0.9 percentage points to growth next year at 2.3 percent.

"Productivity gap"

"There is a big productivity gap with the United States and a number of other countries," said Bank of Canada Governor Mark Carney said in an interview Oct. 23. "There is a need for competitiveness in a sustained program of investment."

A chart in the report of the monetary policy last month showed the central bank's projects take 16 quarters for capital expenditures to reach about 95 percent of the pre-recession levels. The graph shows the annualized growth rate in business investment of about 11 percent in the third quarter, and an average growth rate of around 8 percent over the next nine quarters.

That compares with the Bank of Canada predicted in July, a similar chart showed that spending would grow by about 5 percent pace in the third quarter and increased by approximately a rate of 6.5 percent over the next nine quarters.

GDP report

Canada's gross domestic product report for the third quarter will be released tomorrow at 8:30 am New York, and can show weakness in areas outside of business investment such as housing and exports. Economists surveyed by forecast a Canadian was reduced to a rate of 1.4 percent annualized in the July-September period, compared with a rate of 2 percent in the second quarter and less than a quarter of the rate 5.8 per cent seen in the first quarter, according to the median of 21 forecasts. The central bank last month forecast a rate of 1.6 percent growth in the third quarter.

Statistics Canada reported the country's deficit on current account widened to a record C $ 17.5 billion in the third quarter as a stronger currency encouraged imports of machinery and equipment.

The slowdown contrasts with the acceleration of growth in largest trading partner of Canada. In the third quarter the annual growth in the U.S. was revised upward to 2.5 percent from an initial estimate of 2 percent and an increase of 1.7 percent in the second quarter, according to figures released Nov. 23 by the U.S. Department of Commerce ..

Omen

Capital expenditures for the 209 companies on the Toronto composite index that have reported since 07 October, the beginning of the current earnings season, has recovered from a three-year low of C $ 18,200 million in the second quarter last year. Changes in capital spending rate of listed companies have foreshadowed the changes in the growth of business investment in the national accounts for 62 percent of the time since 2005.

The government has also taken steps to encourage investment. Fiscal 2010 Plan of Finance Minister Jim Flaherty said his country hopes to be "duty-free zone for manufacturers," after the tariffs were eliminated on imports of machinery and equipment in the previous year's budget.

Five companies recorded more than C $ 1 billion in capital expenditures in the third quarter. There are four energy companies - Suncor, EnCana Corp., Talisman Energy Inc. and Imperial Oil Ltd. - while the other, TransCanada Corp., is a pipeline company. Barrick Gold Corp. led energy companies are not spending the last quarter to C $ 786 000 000 of investment, followed by BCE Inc. 's C $ 748 million.

Pipeline companies reduced capital spending, including investments Enbridge reduced by 25 percent over the previous year and expenditure by 17 percent TransCanada.

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European shares fall as the rescue of Ireland fails to calm investors

European stocks fell, extending three weeks of losses, a bailout of Ireland to reassure investors that the crisis in the region include sovereign debt.

Spanish and Italian equities led declines in Europe and the cost of insuring the debt of nations rose to records. Vestas Wind Systems A / S lost 4.5 percent as Exane BNP Paribas recommended selling shares of the world's largest maker of wind turbines. Allied Irish Banks Plc and Bank of Ireland Plc rose more than 7 percent after the governments of the Euro-agreed to give the nation an aid package of 85 billion euros (113 million dollars).

The Stoxx Europe 600 index fell 0.9 percent to 264.22 at 2:16 pm in London, after rising 0.8 percent. The measure has declined for three consecutive weeks as concern mounted that the peripheral countries of the euro area may not be able to pay its debt and North Korea fired missiles in South Korea for the first time since the 1950-53 war.

"If you think the problems stopped sovereign in Greece, Ireland and Portugal may depend on whether you think this is a problem with the entire Western financial system, or if you think it's just one problem with each of these institutions debt, "Jim Reid, head of global strategy at Deutsche Bank AG, wrote in an email today. "Spain can not be an isolated problem in itself, but if we are in a deleveraging trend may simply be a victim of deleveraging to come."

Indebted economies

The gains in the Stoxx 600 were limited to 4.1 percent this year, limited by losses in heavily indebted economies in the euro region, the cost of providing a rescue plan for Greece and the expectations of more charges to support Ireland.

national benchmark indexes fell in all 18 western European markets today, with the exception of Ireland. IBEX 35, Spain fell 1.7 percent, the FTSE MIB Italy lost 1.5 percent and Portugal PSI-20 fell 1.2 percent.

The cost of insuring the debt of Spain and Portugal rose to unprecedented levels, according to CMA prices for credit default swaps. Contracts in Spain rose 14 basis points to 336, while Portugal rose 23 basis points to 524.

"There is still great uncertainty in Europe with investors refusing to buy shares in Spanish or Portuguese for fear that they might be the next two states that require a solution similar to Ireland's rescue," said Joshua Raymond, market strategist at City Index Ltd. in London.

Franco-German compromise

European finance chiefs in crisis talks in Ireland yesterday also approved a Franco-German agreement on the post-2013 that rescues not automatically mean investors will split the cost of future taxpayer bailouts. The loss-sharing proposal by German Chancellor, Angela Merkel, has caused consternation among bond traders.

In the UK, house prices fell for the fifth consecutive month in November as demand for goods was reduced more in nearly two years, Hometrack Ltd. said. The report adds to evidence of a weakening housing market after Rightmove Plc said Nov. 15 that home sellers reduce asking prices by the most since 2007 this month and banks in the United Kingdom approved the minor number of mortgages since 2009 in October.

Even so, stocks in Europe will join up 9.9 percent at the end of 2011 and the actions of the UK will rise by 13 percent as increased revenue and investors for actions on bonds, Graham Secker, Morgan Stanley chief of pan-European equity strategy, wrote in a report.

Vestas slid 4.5 percent to 157.5 kronor as Exane downgraded the shares to "underperform" from "neutral."

Irish banks

Bank of Ireland jumped 19 percent to 31.4 cents, the biggest gain in the Stoxx 600. Allied Irish rose 7.9 percent to 36.9 cents.

Irish banks have up to 35 million euros in aid, while senior bondholders will escape the costs of rescue led by the European Union and the International Monetary Fund, the government said.

Gartmore Group Ltd., the fund manager in the UK which collapsed earlier this month after losing money star manager Roger Guy, rose 2 percent to 105.1 pence as the Financial Times reported that Henderson Group Plc is considering buying the company.

Henderson has asked the consultants to examine the possibility of buying part or all of its rival, the Financial Times reported on its website, citing unidentified sources familiar with the situation. Henderson, on behalf of clients, controls about 11 percent of Gartmore, the newspaper said.

Aryzta AG rose 5.1 percent, to 42.35 Swiss francs after the Swiss supplier of bakery products to restaurants, said fiscal first-quarter sales gained 33 percent.

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U.S. equity futures Stocks fell After Ireland Aid Package Agreement

U.S. equity futures Stocks fell as the rescue of Ireland, not to alleviate their concerns about the debt crisis of Europe, offsetting optimism about increased spending in the first weekend of the holiday shopping season.

American Express Co. and McDonald's Corp. were among the biggest drops in the Dow Jones Industrial Average in early trading. Amazon.com Inc. gained 1.4 percent after the National Retail Federation reported a 6.4 percent increase in retail sales last weekend.

500 Standard & Poor's Index expiring in December fell 0.3 percent to 1179.60 as of 9:05 am in New York. Dow Jones futures down 0.2 percent at 11.005. Future of Nasdaq-100 Index lost 0.2 percent to 2,141.25.

"It seems that there are many things that annoy the market," said William E. Stone, who oversees about $ 105 million as chief investment strategist for PNC Wealth Management in Philadelphia. "There is concern about the financial crisis affecting European economies healthier and viability of the euro. In the U.S., we have a decent batch of numbers in retail to keep the ball in motion. However, I'm not sure the market is going to be happy with almost anything at this time. "

The S & P 500 has fallen 3 percent since reaching a maximum of two years on 5 November amid concern the sovereign debt crisis will spread to southern Europe and speculation that China will increase interest rates to control inflation. Shares extended their losses on 23 November after North Korea bombed a South Korean island.

World stocks

Global stocks have fallen for three consecutive weeks, pushing the MSCI World Index down 4.5 percent from 05 November, the concern of the European sovereign debt crisis that took Greece and Ireland in search of aid is spreading. bond yields soared to ten years in Portugal, Spain and Italy last week while the euro fell to $ 1.3241 against the dollar, from $ 1.4282 on Nov. 4.

Ireland, flooded by the bursting of a housing bubble a decade and unemployment is about 14 percent, became the second country to take advantage of European aid. The government said it would pay an average interest of 5.8 percent in the package, which breaks down to 45 million euros (60 billion) of European governments, 22.5 billion International Monetary Fund and 17 5 million euros of cash reserves of Ireland and domestic pension funds.

American Express, the largest issuer of credit cards for purchases, fell 0.3 percent to $ 42.14. McDonald's Corp., the biggest restaurant chain, fell 0.7 percent to $ 78.02.

Retailers

Retailers won. Amazon.com, the largest online retailer, rose 1.4 percent to $ 179.92. Abercrombie & Fitch Co., the clothing store for teens added 1 percent to $ 48.94.

The average American buyer spends 6.4 percent more than last year during the weekend, the NRF said yesterday. Retail sales in the U.S. Weekend Thanksgiving was $ 45 billion, the Washington-based group said, citing a survey conducted by BIGresearch. The number of customers shopping on Thanksgiving Day more than doubled in the last five years, the group said.

"In general, early signs show a year-over-year pick-up in retail spending, with consumers highly motivated lot, but spending more on themselves and have some of the pent-up demand," wrote a research team Macquarie Group Ltd. in a report today.

Reports on manufacturing and payroll are among this week's releases that may shed light on whether a rebound in U.S. economy falters.

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Wheat rose for a third day in Chicago

Wheat rose for a third day in Chicago on concern that dry weather in the U.S. can damage the crop in the world's largest exporter and the rains could delay the harvest in Australia, causing a decrease in quality.

areas hard red winter wheat in the U.S. be kept dry during the next week, said Mike Tannura, a meteorologist and an agricultural economist at T-Storm Weather LLC, in an email today. Recent rains may extend the harvest delays of up to two weeks in some growing regions of Australia, as GrainCorp Ltd., the largest in eastern Australia's grain handler.

"We're seeing out the negative climate of Australia in terms of quality," said Michael Pitts, director of sales of commodities in the National Australia Bank Ltd., by telephone from Sydney. "There are also continuous drying" in the U.S., he said.

Wheat for March delivery gained 5.25 cents, or 0.8 percent, to $ 6,925 per bushel at 1:14 pm London time on the Chicago Board of Trade. The grain has soared 44 percent since late June as the worst drought in Russia in a half-century production of brake and caused the country to ban exports of cereals.

Australia, the wheat exporter's fourth largest, will increase sales of supplies of feed grade this season as the reduction of rainfall in the quality of the crop, AWB Ltd., the nation's largest carrier, said on 16 November.

Milling wheat for January delivery traded on NYSE Liffe Paris advanced 0.8 percent to 220 euros ($ 289.28) per metric ton.

Corn and soybeans rose in Chicago on speculation dry weather in Argentina will further delay planting and reduce output amid signs of rising demand from importers. The weather will be drier than normal in the next 10 days, which limits crop growth, Tannura T-Storm said.

Corn for March delivery rose 2.5 cents, or 0.5 percent, to $ 5.555 a bushel. The grain has advanced 34 percent this year, partly by dry weather in August halted U.S. production.

Soybeans for January delivery gained 2 cents, or 0.2 percent, to $ 12,405 a bushel. Oilseeds has increased by 12 percent since late September on increased demand from China.

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Euro Falls Against Dollar

The euro fell to its lowest level in more than two months against the dollar by 85 million euros (112 million) aid package for Ireland failed to halt the concern that Europe's crisis of sovereign debt deepens.

The single currency slipped against all of its 16 major counterparts. Finance leaders ended talks yesterday in Brussels to agree a future crisis management system is not automatically cuts the value of bond holdings as the Irish pack was secured. Irish opposition parties criticized the terms of the rescue plan led by the European Union and the International Monetary Fund, and raised the cost of insuring the debt of Spain and Portugal.

"The euro is more than following the same script over and over again here, the market just refuses to accept the stabilization mechanism of the EU," said Boris Schlossberg, director of currency research at GFT Forex online merchant in New York . "The currency markets are driven entirely by the credit markets, and until the credit markets in Europe showed some stabilization is difficult to imagine the euro to find a significant wealth."

The 16-nation currency slid 0.9 percent to $ 1.3117 at 8:59 am in New York, and fell before $ 1.3114, the weakest since Sept. 21. The euro fell 0.6 percent against the yen to 110.68 from 111.37 on Nov. 26. The Japanese currency has depreciated 0.2 percent to 84.23 per dollar, compared with 84.10 on November 26.

Credit Default Swaps

The cost of debt insurance in Spain and Portugal reached record levels, according to CMA. Prices of credit-default swaps in Portugal rose 40 basis points, or 0.40 percentage point, to 542, and those in Spain rose from 22.25 to 336, according to CMA.

Ireland said it would pay an average annual interest of 5.8 percent in the aid package, which is broken down into 45 million euros from European governments, 22.5 billion International Monetary Fund and 17.5 million euros cash reserves of Ireland and domestic pension funds.

European finance leaders also endorsed a Franco-German post-2013 rescues sovereign dilutes appeals German Chancellor Angela Merkel for investors to take losses and share the costs to taxpayers.

Irish politicians reacted angrily opposed to the bailout package. Michael Noonan, a spokesman for the funding for the main opposition party, Fine Gael, said the interest rate was "too high" and that "the government has cleaned up in the negotiations."

The agreement for Ireland focus shifts to Portugal, which last week approved cuts deeper into spending more than three decades with the aim to get back on the limits of EU deficit for the year 2012.

Monthly Gain

The dollar headed for its first monthly gain against the yen since April as concerns that military action in the Korean peninsula will intensify the demand supports the relative safety of U.S. currency.

South Korea has doubled its force of artillery in the disputed island of Yeonpyeong, who was hit by missiles launched from North Korea last week, and asked journalists to leave, Yonhap News. The North Koreans have installed anti-aircraft missiles in the area, he said.

The South Korean won rose against all 16 major counterparts, recovering from a nearly 11-week low against the dollar, as investors speculated exporters took advantage of a favorable exchange rate on repatriation of earnings.

The won rose 0.6 percent to 1,152.46 per dollar, the biggest gain in a week. 1172.50 touched on 24 November, the lowest since Sept. 9.

The dollar index, which tracks the dollar against the currencies of six major U.S. trading partners, including the euro and yen, rose as much as 0.5 percent to touch 80,793, the highest level since 21 September.

'Currency of choice "

"The dollar will be the currency of their choice as risk appetite remains somewhat under pressure due to problems with Korea remain front and center," said Jeremy Stretch, executive director of foreign exchange strategy at the Canadian Imperial Bank of Commerce in London.

The Australian dollar touched the lowest level in nearly eight weeks against the dollar as concern the military action in the Korean peninsula will intensify.

The Aussie fell 0.2 percent to 96.23 U.S. cents. Reached 95.85, the weakest since Oct. 5.

The Swiss franc rose against 14 of its 16 most-traded counterparts as investors sought refuge amid the concern of the debt crisis of Ireland spreading.

The franc strengthened 0.7 percent to 1.3182 per euro, from 1.3278 on 26 November. Appreciated by 0.2 percent to 1.0013 per dollar, from 1.0036 francs on 26 November.

The franc gained 7.9 percent on a measure of the currencies of 10 developed nations in the past six months, according to our indexes of correlation-weighted currencies, making it the best performance during that period.

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Asian stock markets rose again after a fall for three weeks

Asian stock markets rose again after a fall three weeks, while commodities rose after the Irish won a 85 million euros (113 million) aid package to overcome the concern that tensions on the Korean peninsula will weigh on growth.

The MSCI Asia Pacific Index added 0.5 percent to 129.59 as of 4 pm in Tokyo, the arrest of three weeks, a 4.4 percent drop. Euro Stoxx 50 futures little changed while the 500 Standard & Poor's rose 0.5 percent. Oil gained as much as 0.8 percent in New York and zinc rose to 2 percent in London. The dollar was near a two-month high against the euro after European Central Bank, Christian Noyer, a member of the council said that the monetary easing that creates the possibility of global imbalances.

Global stocks have fallen for three consecutive weeks, ending with 2300 billion dollars of market values worldwide, amid concerns the crisis of debt in Ireland is spreading. European governments ended talks in Brussels yesterday to Ireland delivered a package of aid and water down proposals to force bondholders to cover a portion of future bailouts. South Korean President Lee Myung Bak said the North will pay for any provocation as his nation and the U.S. joint military exercises.

"The fact that the senior bondholders are not going to assume the cost is a big problem," said Richard Yetsenga, Hong Kong-based global head of currency strategy for emerging markets at HSBC Holdings Plc, on the rescue of Ireland Television. "There seems to hawkishness much more in South Korea to respond more steps to push the North Koreans have taken."

Shares Advance

Japan's Nikkei 225 stock average rose 0.9 percent, with exporters such as Sony Corp. and Canon Inc. leading gains. Taiwan's TAIEX index rose 0.7 percent after the ruling party won key local elections, prompting speculation President Ma Ying-jeou will extend policies toward China, which boosted investment. The Kospi index sank 0.3 percent in Seoul.

Crude oil for January delivery rose 0.6 percent to $ 84.28 a barrel on the New York Mercantile Exchange, after reaching $ 84.46. Zinc traded at $ 2,150 a tonne in London while copper rose 1.1 percent to $ 8,326.25 a tonne.

Ireland loan will be funded for 45 million euros from European governments, 22.5 billion International Monetary Fund and 17.5 million euros of cash reserves of Ireland and domestic pension funds. Regional heads of finance also supported a Franco-German agreement on the post-2013 rescues which means that investors do not automatically take the loss of sharing the cost with taxpayers, as German Chancellor Angela Merkel, proposed initially dismay bond traders.

Yields Up

Treasuries took a gain last week before the reports of U.S. government and industry this week may show payrolls and manufacturing expanded in November. The yield on the benchmark 10-year note rose a basis point to 2.88 percent.

The S & P 500 fell 0.8 percent on Nov. 26 as the growing concern about the debt crisis in Europe and the escalation of tensions between the two Koreas overcome a rally in retailers after the purchasers of crowded stores on Black Friday, the biggest shopping day of the year. Sales rose 0.3 percent to $ 10.7 billion, Shopper Trak, a consulting firm based in Chicago, said on 27 November.

Speaking in Tokyo, ECB's Noyer called for an international effort to address the volatility of financial flows, saying that the efforts of individual risk without preventing shifting pressures. His proposal highlights the danger of increased capital flows to emerging markets that policy makers are worried cause asset bubbles.

Australia benefits

"Noyer's comments on low rates and imbalances in the world seems to be causing some selling of the euro and the dollar buying," said Tsutomu Soma, a provider of bond and currency of Okasan Securities Co. in Tokyo.

The dollar was trading at $ 1.3236 per euro from $ 1.3242 in New York last week. The dollar was at 84.07 yen from 84.10 yen, after advancing to 84.20 yen, the highest since Sept. 28.

Australia dollar fell to its lowest level in nearly eight weeks, trading as low as 95.85 U.S. cents of 96.45 cents in New York last week. A report today showed the benefit of the nation's business fell last quarter.

Australian Dollar Losses pace of regional currencies like the South Korean army began exercises with U.S. warships. China called for "emergency" discussions next month involving itself, the two Koreas, the U.S., Russia and Japan.

"Clearly, more patience and tolerance can only lead to more provocations," President Lee said today in a national address in Seoul. "North Korea was made to pay any further provocation no matter what."

The cattle are removed to as low as 1.164 per dollar before trading at 1,152.46 to the dollar. The currency touched 1172.50 on 24 November, the weakest since September 09, the day after an attack by North Korea in Yeonpyeong.

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