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Wednesday, December 1, 2010

China manufacturing grows more than expected

China's manufacturing grew at a faster pace for the fourth consecutive month in November, indicating that the economy can withstand higher interest rates as price pressures increase.

The purchasing managers index rose to 55.2 from 54.7 in October, the China Federation of Logistics on its website today. That was more than the 54.8 median estimate of 14 economists surveyed by us. A PMI published by HSBC Holdings Plc jumped also.

Today's reports showed that increasing input prices, strengthening the case that the central bank to boost borrowing costs again after that behind counterparts in Malaysia to South Korea. The concern that monetary tightening will hinder corporate profit growth driven by 8 percent selloff in the benchmark stock index in China in the last month.

"The risk of a sharp slowdown in growth has slowed, but all signs suggest that inflation can surprise on the upside," said Dong Tao, an economist at Credit Suisse AG in Hong Kong. He called the input price data "alarming."

Federation of Logistics PMI showed the strongest reading in seven months, while HSBC and as published by Markit Economics was at a maximum of eight months of 55.3.

The Shanghai Composite Index closed up 0.1 percent, rising for the first day in four.

Strength in Asia

The image of China's increased production and escalating prices across Asia are repeated in reports released today by HSBC and Markit for India, South Korea and Taiwan.

India need to keep tightening monetary policy, an economist at HSBC, Leif Eskesen said, commenting on the PMI data shows the nation's fastest growing manufacturing in six months. Taiwan had its first expansion in four months and South Korea also rose from a contraction.

By contrast, an Australian measure slipped, a report by the Australian Industry Group and PricewaterhouseCoopers showed today. In the U.S., manufacturing growth probably fell to a maximum of five months, according to the median estimate before the release today of the Institute for the index of Supply Management's factory.

Chinese reports reinforced economists' forecasts of higher rates. Credit Suisse said today that the increase is probably around December 13 when the government will announce the latest prices.

Price increase

In October, China's central bank took the rate of one-year loans to 5.56 percent, the first increase since 2007. In comparison, South Korea has happened twice this year, Malaysia and India three times six.

Ben Simpfendorfer, an economist at Royal Bank of Scotland Plc, said the increase in inventories is shown in today's data may indicate that companies restocking end, easing producer price pressures and causing a "modest "slower growth in the first quarter.

The index of the federation of logistics input costs rose to 73.5, the highest since June 2008. HSBC's report showed that manufacturers' output prices rose by the most since data began in 2004.

Cement prices have risen to a record, the state-run China Daily reported today. Consumer prices may have risen 4.8 percent in November after an increase of 4.4 percent in October, which was the highest in 25 months, the China International Capital Corp.

Slowing growth

McDonald's Corp., the biggest restaurant chain, rising prices in China on 17 November to offset rising costs. Kweichow Moutai Co., the largest Chinese manufacturer of alcoholic beverages by market value, may raise prices as much as 24 percent this month, according to a report of Shenyin & Wanguo Securities Co.

Zhang Liqun, a senior researcher at the Center of State Council Development Research, said that while PMI data shows an "improved economic climate," the expansion of the nation will remain moderate. The leaders meeting in Beijing later this month to set economic policy will gauge the risk of debt crisis in Europe, China's largest market, reduced export demand.

Bank of America-Merrill Lynch said the data today supports its forecast for China's economy expands at an annual rate of 9.3 percent this quarter and 10.3 percent for the year. Goldman Sachs Group Inc. said export orders and "continued strong" growth in credit and money supply, even after adjustment measures can be strengthened both PMI.

Wen Campaign

Premier Wen Jiabao announced Nov. 17 a package of measures to counter inflation, the threat of price caps for "daily use" to be committed to maintaining the food supply through the sale of state reserves. The future of China for raw materials like cotton, sugar, rice and natural rubber have risen to records in the past two months.

The government's campaign to control the money supply and prices of cold increases also include two-reserve ratio for lenders last month, draining cash from the financial system.

At the same time, the central bank has limited the yuan's gains that could help offset inflation. While the officials allowed the appreciation of about 1.8 percent against the dollar in September, since then, earnings have been 0.3 percent.

Nomura Holdings Inc. said this week that China is "a strong growth phase, even when inflation concerns rise. Citigroup Inc. said that while inflation, driven mainly by food and overall production costs, is "a key policy concern," the economy is not overheating as it did in 2007-08.

Cotton, steel

The National Commission for Development and Reform Commission, said yesterday that the price controls at the national level are not needed yet.

In the PMI surveys of purchasing managers cited price increases for agricultural products, cotton and raw materials, including fuel and steel. Spot prices of coal for power plants in the port of Qinhuangdao, a benchmark of China, rose to a maximum of two years this week.

Manufacturing growth accelerated even in the midst of a shortage of diesel and stops at the steel mills and aluminum smelters as a result of a government campaign of energy efficiency. The authorities are also trying to cool the housing market.

Economic growth slowed to an annual rate of 9.6 percent in the third quarter from 11.9 percent in the first three months of this year. Despite the moderate growth, China will overtake Japan this year to become the second largest economy in the world.

The government backed by PMI, published by Beijing-based China Federation of Logistics and Purchasing and the Office for National Statistics, covers more than 820 companies in 20 industries, including energy, metallurgy, textiles, automobiles and electronics. HSBC's survey covers more than 430 companies.

European manufacturing grew faster in pace in four months

European manufacturing industries expanded at its fastest pace in four months in November, led by Germany, the largest economy in the region.

An indicator of manufacturing sector in the 16-nation euro rose to 55.3 from 54.6 the previous month, London-based Markit Economics, said today. Previously reported an increase to 55.5 in November. A reading above 50 indicates expansion.

Germany has led to the recovery of the region as global demand boosted sales in the companies of Daimler AG: BASF SE. The European Commission said on 29 November that the German growth will exceed the euro zone growth this year, the economies of Ireland, Spain and Greece may continue to fall.

"Economic activity in the euro zone slowed in the third quarter and seems likely to be relatively moderate in coming months," said Howard Archer, chief European economist at IHS Global Insight in London. "Tightening of fiscal policy in the region, high unemployment, recurring problems of sovereign risk and a lower overall activity are a serious threat."

New orders at manufacturers rose at the fastest pace since July and increased payrolls for the seventh month, Markit said.

"Less Rosy '

In Germany, the manufacturing index rose to 58.1, a maximum of three months, from 56.6 the previous month, down from an initial estimate of 58.9. France indicator rose to a 10-year high of 57.9 from 55.2, while the flag of Italy fell to 52 from 53.

the so-called peripheral countries of Europe continued to struggle. Ireland's rate was 51.2, while manufacturing contracted Spanish stagnated and Greece.

Beyond Germany and France, "the conditions are much less optimistic in other parts of the euro area," said Markit chief economist Chris Williamson.

A flag made in China rose more than economists forecast in November, according to a report of the current federation of logistics. A PMI published by HSBC Holdings Plc jumped also. In the U.S., the Institute for the index of Supply Management's factory probably fell to 56.5 from 56.9, according to the median of 82 economists surveyed by us.

the euro-region growth may weaken to 1.5 percent next year from 1.7 percent in 2010, governments cut spending to reduce the budget deficit, the Brussels-based commission said this week. On November 28, Ireland became the second euros for foreign aid as officials tried to prevent a debt crisis from spreading.

Some companies have cut spending to revive profits. ThyssenKrupp AG, Germany's largest steelmaker, said yesterday it returned to profit in the fiscal year through September after the sale of divisions and reducing its workforce. Euro-area unemployment rose to 10.1 percent in October, the highest in more than 12 years.

Markit said on 4 November that an indicator of the euro zone services rose to 55.2 in November from 53.3 in the previous month, while the composite index rose to 55.4 from 53.8 in October. Markit will publish the final figures for both indicators on 3 December.

Suda Bank of Japan has little chance of deflation Winning FY 2011


Bank of Japan, Miyako Suda, a board member said the country probably will not overcome deflation in the year from April, a view that conflicts with the Central Bank forecasts moderate inflation in the year .
"The chances of overcoming the fundamental negative prices for consumers in the next fiscal year are not high," Suda said in a speech in Yamagata, northern Japan today, referring to the 12 months from April. "It will take time to overcome deflation."
Suda, senior member of the board whose terms expire in March, failed to offer proposals to beat more than a decade of price declines. The central bank in October cut its interest rates near zero and has created a fund of 5 trillion yen (U.S. $ 60 billion) to buy government and corporate debt and riskier instruments, including traded funds traded.
"Given that Suda is a relatively aggressive member of the board, the fact that she said that prices will keep falling suggests the Bank of Japan could delay end its global facilitation program," said Naoki Iizuka, senior economist at Mizuho Securities Co. in Tokyo. "There is no way the conditions for increasing prices are set in fiscal year 2011."
Suda is a member of the board first to suggest deflation may persist beyond the next year forecasts of the policy board of the Bank of Japan in October that core consumer prices rise 0.1 percent in fiscal year 2011. Prices by that measure, which excludes fresh food, fell 0.6 percent in October, the fall line 20.
The price index adjustment to the month of August also reduces the chances of overcoming the low prices, Suda said. The statistics office reorganization of the basket of goods used to measure the CPI, a measure that Goldman Sachs Group Inc. estimates may decrease the rate of inflation by 0.4 percentage points.
Risks Remain
Suda said the risks to the economy can remain as an advance against the dollar yen clouds the outlook for growth. Reports in the last week showed exports grew at the slowest pace this year and factory production fell for the fifth month, the evidence points to the weakening economic expansion in the last quarter of 2010.
"Given the strong yen and declining business confidence and consumer, there is a high risk that the temporary weakening of the economy will remain," said Suda.
Bank of Japan, Masaaki Shirakawa, said this week that the expansion of the program bank purchases of assets is a "likely option" if the bank has to ease monetary policy.
Suda later told reporters the central bank is aware that you may need to diversify the assets acquired in the bottom of 5000000 million yen to avoid exerting too much influence on specific markets.
Foreign currency assets
Asked if those purchases might include foreign currency assets, Suda said the chances were "extremely low but not zero." Purchase said could be interpreted as a form of currency intervention.
The bank, in October pledged to maintain "practically zero" interest rates to a point of view arises from sustained price increase. Board members say they consider inflation stable in a positive range of up to 2 percent, with the median estimate of 1 percent.
"The Bank of Japan will remain under pressure to make it even more given the economic outlook is unclear," said Masamichi Adachi, senior economist at JPMorgan Chase & Co. in Tokyo. "The Japanese economy is in a soft patch with a risk of delayed recovery because the impact of a stronger yen will weigh on growth over this quarter."

Gold rose for a third day



Gold rose for a third day, climbing to the highest level in over two weeks in New York as concerns about the debt crisis in Europe fueled demand for protecting the wealth and weakness of the dollar.

The dollar fell from the highest level in more than two months against the euro amid speculation the European Central am responsible for meeting the Bank's policies may signal its willingness to act to prevent the spread of the debt problems of the region . Gold futures, which usually move inversely to the U.S. currency reached a record $ 1424.30 an ounce on November 09. The metal rose to a record price in euros.

There are "too many complications in the euro area and U.S.," said Bernard Sin, chief currency and bullion trading metal refinery MKS Finance SA in Geneva. "People are gold and probably long retain their long positions in the New Year."

Gold futures for February delivery was up $ 12.20, or 0.9 percent, to $ 1398.30 an ounce, the highest price since 12 November, was $ 1395.60 at 8 am on the Comex New York. The metal for immediate delivery in London was 0.6 percent, to $ 1,394.40.

Bullion rose to $ 1,391.50 an ounce in the morning "fix" in London, used by some mining companies to sell production, from $ 1,383.50 in the afternoon yesterday fixing.

investor concern has shifted to the growing debt in Spain and Portugal after European governments bailed out Ireland, which earlier this year to help Greece. ECB Governing Council will meet tomorrow amid speculation that he will delay his departure from the emergency liquidity measures. All 52 economists surveyed expect the central bank to leave its benchmark interest rate unchanged at 1 percent.

"Uncertainty" Dollar

"The increased uncertainty regarding the role of the U.S. dollar in the international monetary system, concerns related to the stability of the peripheral countries of the euro area and increasing inflationary pressures in emerging Asian markets, especially China "are supportive of gold, Anne-Laure Tremblay, a London-based analyst at BNP Paribas SA, wrote in a report yesterday. Gold may average $ 1.500 to $ 1,600 next few years in 2012, he said.

Bullion for immediate delivery rose to a record high of 1,070.474 euros an ounce today, and a high of 895.4353 British pound. The metal rose to a five-month high in Swiss francs and was near the highest since at least 1971 in Canadian dollars.

Silver for March delivery in New York gained 1.9 percent to $ 28.75 an ounce. It peaked at $ 29.34 30 years on November 9 and 71 percent this year.

Palladium for March delivery rose 1.6 percent to $ 714.50 an ounce. Platinum for January delivery was 0.8 percent, to $ 1679.10 an ounce.

Carrefour gave in Paris trading after cutting profit forecast full-year



Carrefour SA, the second world's largest retailer, fell the most in almost two years in Paris trading after cutting its earnings forecast, saying Brazil's depreciation will be more than three times higher than expected.

the contribution of call activity, a measure of operating profit will amount to around 3 million euros (3.9 billion) in 2010, the Paris-based company said yesterday afternoon, cutting a previous forecast around 130 million euros. fees once in Brazil of 550 million euros, compared to an estimate made in October of 180 million euros, and now have non-operating revenue.

The forecast revision is the second in two months from Carrefour, which has forecast higher sales and earnings until 2015, because the updates large areas of Western Europe. Lars Olofsson, who joined as chief executive last year, aims to win more European customers by reducing prices, offering more than the products of the store and promoting and advertising discounts.

"This is a blow to the credibility," wrote Dave McCarthy, an analyst at Evolution Securities in London, in a note. "While we believe that management is taking the right actions in the restructuring of the company, the results are not likely until later in 2011 at the earliest." McCarthy cut its rating on Carrefour to "neutral" from "buy" and lowered its price target to 35 euros from 48 euros per share.

Carrefour declined to € 3.53, or 10 percent to € 31.33, the steepest intraday decline since December 18, 2008. The action was trading at € 32.30 as of 13:57

2013, 2015 targets is not affected

The retailer's objectives for 2013 and 2015 will not be affected by "the previous mismanagement" in Brazil, Olofsson said in a conference call yesterday. Carrefour aims to raise the contribution of the activity to 5.2 million euros in 2013 and 6.4 million in 2015 compared with 2.7 billion euros in 2009, the chief executive, said in September.

"We now believe that it is unlikely that the market will buy in 2013 and 2015 guidance shows tangible improvement in reported numbers," wrote McCarthy Evolution.

The reduction in earnings forecast weak sales came from large areas of Brazil, a performance worse than expected in France in September and adverse economic conditions in Italy, Greece and Spain, CFO Pierre Bouchut said on the call yesterday . The measure of operating income also fell by 50 million euros following the sale of operations in Thailand last month.

Brazil charges

Carrefour replaced its management in Brazil and hired KPMG LLP in October to audit its operations there after a poor performance of large areas of the unit. The retailer has also commissioned an independent investigation to determine who may be responsible for the need for accounting changes include adjustments to inventories and depreciation of assets in the unit.

"We are confident that we can fix the situation quickly to return to a sustainable, profitable revenue in Brazil," said Bouchut.

Brazil charges consist of 110 million euros for depreciation and inventory adjustments, 280 million euros of provisions for labor disputes and tax, 35 million euros of vendor discounts unrecoverable, 75 million of depreciation of assets, and 50 million of accounting adjustments, Bouchut said.

French market share

Carrefour has lost market share in France since September after competitors opened more stores, while price deflation "is clearly pushing margins," Olofsson said yesterday. Call on an equal footing, the retailer is gaining market share and considerable reduction of average costs "we must be able to grow our margins in 2010 compared to 2009 in France," he said.

"An increasingly competitive environment in France and Europe's economic weakness cited by the company suggest Carrefour may have difficulty maintaining the benefit of cost reduction initiatives," wrote Christopher Hogbin, an analyst at Sanford C. Bernstein in London, in a report today. He maintained his "market perform" on the stock and lowered his price target to 36 euros per share from 40 euros.

Lowe's Recalls 11 million blind after near strangulation incidents

Lowe's Cos., the second largest U.S. retailer home improvement, recalled 11000000 Roman shades and roller blinds after reports of two almost chokes, U.S. Consumer Product Safety Commission said.

The CPSC said that Lowe's, based in Mooresville, North Carolina, recall all brands it sells two types of window coverings, with a total of 6 million and 5 million Roman shades roll up blinds. Consumers should stop using recalled products immediately and get the free repair kits, he said.

Lowe's joins a retreat organized by the CPSC in December 2009 that covered more than 50 million Roman and roller blinds, also because of the dangers of strangulation, the agency said. That recall, one of the largest in the CPSC, covered all products sold in stores like Wal-Mart Stores Inc., Williams-Sonoma Inc. 's Pottery Barn and Restoration Hardware outlets Inc.

Strangulation can occur when a child plays with the loose strings, wrapping them around his neck, the agency said. Roman shades, which are made from the bottom in a series of folds, has an indoor cable at the back that is dangerous, the agency said. Rolling shutters have a lifting cycle that can be dropped.

Roman blinds recalled today are sold at Lowe's and the website of the company from 1999 to June, the CPSC said. The shutters were sold from 1999 to January 2005. Covers sold for between $ 10 and $ 1,800.

Injuries reported

In July, a 4-year-old in Lexington, South Carolina, suffered rope burns on his neck after becoming entangled in a cable Roman shade, the agency said. One child under 2 years of age in Arvada, Colorado, was found with a cord around his arm and neck in November 2009, he said.

No incidents have been reported with shutters, the CPSC said.

Consumers can get free games for the repair of the Security Council Window Covering calling 1-800-506-4636 or visiting their website, http://www.windowcoverings.org.

U.S. regulators received reports of five dead and 16 almost chokes on Roman shades since 2006 and three deaths involving roller shutters since 2001, CPSC said in December.

American International Group Sells $2 Billion of Bonds.

Bonds issued by American International Group Inc. rose in the secondary market, according to Trace, the bond information system in the prices of the Financial Industry Regulatory Authority.

The insurance debt sold yesterday for the first time since 2008 his rescue by the U.S. government. The New York-based company $ 500 million of 3.65 percent notes due January 2014 rose 0.83 percent to 100.8 cents, from 8:39 am in New York, the tracking data show. The bond yields 179 basis points, points more than Treasuries of similar maturity after issuing a 295 basis points spread.

AIG's $ 1.5 billion of debt of 6.4 percent due December 2020 rose 0.33 percent to 100.07 cents, a spread of 349 basis points, the tracking data show. The notes were issued with a relative yield of 362.5 basis points.

"It was a good deal, since it was relatively cheap," said Michael Donelan, who oversees $ 3.5 billion in bonds as chief operating officer and portfolio manager at the head of Ryan Labs Inc. in New York. "The grant price, but not as much as we would have expected."

Falling Treasuries amid speculation the ECB will end the crisis



Treasury bonds fell as speculation the European Central Bank may take additional measures to prevent the crisis in the euro region extends debt decreased the attractiveness of U.S. securities as a refuge.

The 10-year bond fell for the first time in four days before reports that economists said will show U.S. manufacturing extended for a month 16 companies added the most jobs since the recession began in December 2007. The descents down the yield on the 10 years older after reaching its lowest level in a week yesterday. The Federal Reserve is set to buy $ 7,000,000,000 and $ 9 billion of bonds maturing in June 2016-November 2017 today as part of its plan for growth.

"Treasuries are losing some of its appeal as a safe haven," said Marc Ostwald, fixed income strategist at Monument Securities Ltd. in London. "Yields yesterday reached levels that are downright unattractive. Labor data this week could decide if this correction in Treasuries continues."

The yield on benchmark 10-year note rose six basis points to 2.87 percent at 6:57 am in New York, according to Cantor BC market. The yield fell to 2.75 percent yesterday, the lowest level since 23 November. The guarantee of 2,625 percent, due November 2020 fell 16/32, or $ 5 per $ 1,000 face amount, to 97 30/32.

The yield on the 30-year bond rose five basis points to 4.16 percent. Fell to 4.05 percent yesterday, the lowest level since Nov. 5.

ten-year rates rise to 3.23 percent in late 2011, according to a survey of banks and securities firms with the most recent forecasts given the highest weights. Investors who bought today are lost around 0.2 percent after accounting for interest payments.

Manufacturing expands

The index of the Institute for Supply Management's factory will be 56.5 in November from 56.9 in October, based on the median estimate of economists surveyed by us. Figures above 50 signal growth.

"A strong ISM number will give investors hope the economic recovery is under way," Ostwald said.

ADP Employer Services say employment increased by 70,000 in November, a separate survey showed. The Labor Department will report on December 3 that employers added jobs for the second month, economists said.

Treasuries rose yesterday on speculation financial crisis spread to Portugal, Ireland and Spain. Ireland on November 28 became the second country to take advantage of EU aid, after Greece. The rescue package worth € Ireland 85000000000 ($ 111 million).

Trichet Comments

Standard & Poor's said Wednesday it may cut the credit rating of Portugal on concern the government has made little progress in promoting economic growth. Portugal costs increased loans at an auction today.

"Investors are concerned that there is more to come," wrote Kevin Giddis, president of capital markets fixed income brokerage firm Morgan Keegan Inc. in Memphis, Tennessee, in a note to clients.

ECB President Jean-Claude Trichet said yesterday the central bank's program of gift vouchers is "permanent" and "see what we decide," refusing to rule out an expansion of shopping. His comments helped push the euro today.

Europe to the debt crisis is "off" soon, Adam Carr, senior economist at ICAP in Sydney, wrote to clients today. "Things are going to disappear. The U.S. economy is doing very well."

The demand for security helped pull 10-year yields up 16 basis points from its highest level in November.

"It's interesting how little help a growing crisis of sovereign debt borrowed at rates markets," including George Goncalves analyst at Nomura Holdings Inc. in New York, wrote in a research note yesterday. "This just adds more details to our assertion that market rates can be fully price." Nomura is one of the 18 primary dealers required to bid in the sale of public debt.

Exchange spread

The demand for security is shown in the increasing diffusion of the exchange rate of two years. The gap widened to 31 basis points, most in four months. In this transaction, investors exchange fixed interest rates and floating. The spread is the difference between fixed rate and return on Treasuries of similar maturity. Because the figure is a type of bank with government performance, is used as an indicator of risk appetite.

Banks are charging more to lend to each other. The London interbank offered three-month dollar rate rose to 0.30 percent yesterday, the highest since August. Pacific Investment Management Co., which runs the world's biggest bond fund, said that the debt is attractive.

"In an environment of low growth, global bonds are an attractive investment option," according to a press release of Pimco, based in Newport Beach, California.

of U.S. government securities gave investors a loss of 0.7 percent last month, the most since March on the basis of Bank of America Merrill Lynch indices such as the Federal Reserve embarked on a plan to pump 600 billion U.S. dollars in the system banking.

Amgen, Bristol-Myers, Google, Mercer, Thermo Fisher

Shares of the following companies may have unusual movements in U.S. trade. Stock symbols are in parentheses and prices are from 7:50 am in New York.

Amgen Inc. (AMGN U.S.): The company, the AM Nplate won the backing of the UK National Institute for Health and Clinical Excellence in the proposed draft guidelines for the treatment of a chronic bleeding disorder.

The agency also advised Bristol-Myers Squibb Co. (BMY U.S.) and Otsuka Pharmaceutical Co., MA drug Abilify for use in the treatment of schizophrenia in people 15 to 17 years of age.

Copart Inc. (CPRT U.S.): The online auction site to recover stolen vehicles reported first quarter revenue of 212.7 million U.S. dollars.
Corinthian Colleges Inc. (COCO U.S.): The educational institution nonprofit, said Chief Executive Peter Waller resigned and replaced by President Jack D. Massimino, who previously served as executive director from November 2004 to July 2009.

Enterprise Products Partners LP (EPD U.S.) fell 2.4 percent to $ 41.07. The largest U.S. pipeline operator sell 10.5 million units representing the interests of members and use the proceeds to reduce debt.

Google Inc. (GOOG U.S.) rose 0.6 percent to $ 559. The world, the AM most popular search engine will open an online store for electronic versions of books in the U.S. this year, and internationally in 2011, according to a person familiar with the company, administrative and operational plans.

Health Care REIT Inc. (HCN U.S.) fell 3.6 percent to $ 44.60. The real estate fund that invests in housing and health properties said it would sell 9 million shares. Proceeds from the offering will be used for property investment.

Jos A. Bank Clothiers Inc. (JOSB U.S.) slumped 3.4 percent to $ 43.50. The maker of men, clothing AOs posted third quarter earnings of 45 cents per share, the lack of analyst estimates of 50 cents.

Motorola Inc. (MOT U.S.) rose 2 percent to $ 7.81. The U.S. manufacturer mobile phones and two-way radios that plans to split in two, said the transfer completed on 4 January, the issue of new shares in both companies to existing shareholders.

OmniVision Technologies Inc. (OVTI U.S.) rose 6 percent to $ 30. The maker of image sensors for camera phones projected third-quarter profit up 63 cents a share, beating analysts' average estimate of 40 cents.

Thermo Fisher Scientific Inc. (TMO U.S.): The world's largest manufacturer of administrative officers of laboratory instruments Lomb agreed to buy Scientific an undisclosed amount to expand in Australia and New Zealand.

United Fire & Casualty Co. (UFCS U.S.) rose 11 percent to $ 23. The Cedar Rapids, Iowa, based on ownership and insurance of victims, said it would buy Mercer Insurance Group Inc. (MIGP U.S.) $ 28.25 per share in a transaction expected to add to earnings in the 2012. Mercer rose 47 percent to $ 27.75.

FTSE 100 Stocks Advance & UK stocks rose



UK stocks rose, with the benchmark FTSE 100 Index rebounding from its lowest level since September, after the China manufacturing grew for the fourth month, boosting commodity companies.

Rio Tinto Group advanced 2.6 percent and Xstrata Plc rose 4.1 percent in metals prices obtained. Sage Group Plc rose 5.4 percent as the UK's largest software maker reported earnings that beat estimates. Royal Bank of Scotland Group Plc led banking stocks higher after three days of losses.

The benchmark FTSE 100 gained 80.9, or 1.5 percent, to 5,609.17 at 12:42 pm in London. The index has fallen 1.1 percent so far yet week after the rescue of the European Union led by Ireland to reassure investors that the region will contain the crisis of sovereign debt. The FTSE All-Share Index advanced 1.4 percent today, while Ireland ISEQ index rose 1.2 percent.

"We are optimistic about UK equities and see decent upside down at the end of 2011," UBS strategists wrote Nick Nelson and Karen Olney, in a report dated November 30, when he presented his budget for 6700 in late 2011 for the FTSE 100. Marking a 21 percent rally yesterday's close. "We believe that the flow of funds valuation and strongly support."

Rio Tinto, the mining company in the world's third largest, gained 2.6 percent to 4,187 pence. Xstrata rose 4.1 percent to 1,345 pence as copper, lead, nickel and rising tin prices on the London Metal Exchange.

China's economy

China Purchasing Managers' Index for November rose to 55.2, its fastest pace in seven months, from 54.7 in October, according to the China Federation of Logistics and Purchasing. The result was more than the 54.8 median forecast of economist surveyed by Bloomberg News. A PMI published by HSBC Holdings Plc jumped also.

Sage rose 5.4 percent to 271.1 pence as the company said earnings for the year increased to 227.3 million pounds (355.1 million U.S. dollars), exceeding analysts' estimates of 220 million pounds. Wise had sales of 1.44 billion pounds. Analysts predicted sales of 1.43 billion pounds, according to the median of 19 estimates.

Royal Bank of Scotland gained 4.8 percent to 39.41 pence. Barclays rose 2.8 percent to 263.3 pence.

Sovereign Swaps

The FTSE 350 banks index rose 1.7 percent, the most since Nov. 4 after falling for three consecutive days amid concern the debt crisis in the region is worsening. The index rose as Portugal and Ireland led a decline in the cost of insurance against loss of government and corporate bonds in Europe. Contracts to Belgium, Italy and Spain also fell from record levels, helping push down the benchmark index of the region's sovereign swaps highs.

Prudential Plc climbed 4.6 percent to 594 pence, the pace at a rally in insurers in the UK, after saying it plans to double the profit in Asia in 2013. Aviva Plc, the second largest UK insurer, rose 3.1 percent to 365.4 pence and Legal & General Group Plc rose 3 percent, to 94.1 pence.

Thomas Cook Group Plc retreated 3.6 percent to 179.6 pence. the second largest European tour operator reported a loss for the year of 2.6 million pounds ($ 4,000,000) at the close of European airspace after a business trip and altered volcanic eruption took time costs.

Numis Securities cut its recommendation to the tour operator to "hold" from "add."

rising U.S. Stock index futures Before Output Data

U.S. Stock index futures rose, indicating that 500 of Standard & Poor's put an end to a fall three days before a report that may show manufacturing in the U.S. economy grew in November.

United Technologies Corp. rose 1.2 percent in the German operations of Airbus SAS said it planned to sell A320 aircraft with an engine company. Motorola Inc. rose 1.7 percent after saying it will split in two in January. Google Inc. gained 0.7 percent after a person familiar with the company's plans said the world's largest search engine will open an online store for hundreds of thousands of electronic books.

Futures on the S & P 500, which expires this month rose 1.1 percent to 1,192.6 at 7:49 am in New York. Dow Jones Industrial Average futures rose 1 percent to 11,107 and Nasdaq futures-100 Index advanced 0.9 percent to 2,136.5.

"In spite of sovereign debt problems continue to weigh on the outlook for the euro area, the history of U.S. recovery is strengthening," wrote James Knightley, economist at ING Financial Markets in London, in a note. "ISM today should follow the trend of strong data."

Today's factory index from the Institute for Supply Management's U.S. manufacturing show expanded for 16 consecutive months in November, a sign that the U.S. economy continues to recover.

Economists forecast a reading of 56.5, little changed in the five-month rate of 56.9 in October, according to the median estimate in a survey. Readings above 50 signal growth. A separate report may show construction spending fell. Both reports are due at 10 am New York.

Employment Report

Another report from ADP Employer Services at 8:15 am U.S. companies may submit added the most jobs in November from the recession began in December 2007. Finally, the Federal Reserve will release its report on regional economic activity, known as the Beige Book, at 2 pm

"This is interesting as we approach Friday's official release payroll as market expectations of 155,000, in conjunction with the October increase of 159,000, representing the largest increase of twice a month on the job since March and April year, "Adrian Foster, director of financial market research for Asia at Rabobank Groep NV in Hong Kong, wrote in a note.

China Manufacturing

Today, the federation of China reported that the logistics of the country's manufacturing industry grew at a faster pace for the fourth consecutive month in November. The federation Purchasing Managers' Index rose to 55.2 last month, the fastest pace in seven months, from 54.7 in October. That exceeded the median forecast of 54.8 from economists surveyed by us.

The S & P 500 fell 0.6 percent yesterday, taking the measure to a decline of 0.2 percent in November, as concern mounted that Europe's crisis of government debt will get worse and Google is facing an antitrust investigation.

The Federal Reserve, under orders from Congress, today identified, which received $ 3.3 billion in emergency aid that the central bank, as always fought against the worst financial crisis since the Great Depression.

The Fed intends to publish data on its website at noon in Washington to comply with a provision in the Dodd-Frank legislation in July that examined the financial regulation. The information spans six programs of loans and currency swaps with other central banks, purchases of securities backed by mortgages and bailouts of Bear Stearns Cos. and American International Group Inc.

United Technologies earnings

United Technologies, which makes the Pratt & Whitney jet, increased 1.2 percent to $ 76.19 after Airbus said it plans to offer geared turbofan engine A320-Pratt & Whitney to help defend their participation market for single-aisle aircraft.

Motorola, the U.S. manufacturer mobile phones and two-way radios, rising 1.7 percent to $ 7.79 in early New York Stock Exchange after it said that the business will be split in two on Jan. 4, the issue of new shares in both companies to their existing shareholders.

Motorola investors receive one share of Motorola Mobility Holdings Inc., the new phone business, for every eight shares they currently own, the Schaumburg company, based in Illinois, said in a statement after the market closed yesterday. Motorola then swap to seven old shares for each new share in the remaining company, increasing the value of the action by a proportional amount.

Google, OmniVision

Google gained 0.7 percent to $ 559.75 in New York. The world's most popular search engine will open an online store for electronic versions of books in the U.S. this year, and internationally in 2011, according to a person familiar with the plans of the company.

OmniVision Technologies Inc. rose 8.3 percent to $ 30.64 in German trading. The maker of image sensors for camera phones forecast third-quarter profit of as much as 63 cents per share, beating the average 40 cents analysts estimates.

American Express Co. advanced 0.5 percent to $ 43.44 in Germany. JPMorgan Chase & Co. initiated coverage of the largest U.S. credit issuers, card purchases with an "overweight" recommendation and a price tag of $ 50, said in a note that "we expect that the model passes American Express driven to beat the credit-driven models in an environment where consumers are cutting leverage. "

JPMorgan Chase advanced 0.8 percent to $ 37.68 after gains in shares of European banks today.

Health Care REIT Inc. fell 2.4 percent to $ 45.18 in real estate fund that invests in housing and health goods said it would sell 9 million shares. The company said it would use the proceeds to buy more property.

Dollar defies the skeptics as the best asset-back in November



The dollar was better investment last month, outperforming stocks, bonds and commodities, confusion officials around the world that the policies of the Federal Reserve said that debase the U.S. currency.

U.S. The dollar index, which tracks the currency against six major U.S. trading partners, including the euro, yen and sterling, rose 5.2 percent in November. The Thomson Reuters / Jefferies CRB Index of 19 commodities has changed little. The MSCI All Country World Index of shares fell 2.2 percent after accounting for reinvested dividends. The bonds lost 1.1 percent, including reinvested interest, as measured by Global Bank of America Merrill Lynch broad market index.

While the German finance minister, Wolfgang Schaeuble, said the decision of the Fed chairman, Ben S. Bernanke 's to pump 600 billion U.S. dollars in the world's largest economy by buying Treasury bonds was "no idea", rising bond yields and signs of economic recovery increased the attractiveness of U.S. assets . UU .. The gain in the dollar index brought his progress for the year to 4.4 percent, behind the 5.3 percent rally in bonds, 5.5 percent of the population and 6.4 percent in prices jump commodities.

"Strong U.S. economic figures have helped the dollar," said Masataka Horii, one of four managers of the $ 35,900,000,000 Kokusai Global Sovereign Open in Tokyo, the largest bond fund in Asia. dollar holdings Sovereign World opened the account for 22 percent of the total, the second largest behind the 28 percent devoted to the assets in euros, he said.

Employment Growth

U.S. policy central bank also revived speculation that inflation will accelerate at the same time as growing concerns about demand dampened European sovereign bonds and shares. The Labor Department in two days to say that U.S. employers added jobs for the second consecutive month in November, according to the median estimate of economists surveyed by us .

"The U.S. and European economies will bounce back next year," he said in an interview Horii. "The dollar and the euro will start becoming more attractive."

Intercontinental Exchange Inc. 's dollar index yesterday rose to 81,290 from 77,266 in late October. Last month's increase was the largest since the measure increased 5.8 percent in May. The index fell 0.4 percent at 7:43 am in New York, the first decline in four days, amid speculation the European Central Bank policymakers tomorrow's meeting could signal their willingness to act for prevent the spread of the debt crisis in the region.

Of the 16 most traded currencies, the dollar had its biggest gain against the euro, the strengthening of 7.43 percent, followed by an increase of 7.37 percent compared with a crown of Denmark and 6.17 percent, to Crown Norway.

Printing money

U.S. currency rose even as Japan's Prime Minister Naoto Kan, said the U.S. November 4 is implementing a "weak dollar policy" through its plan to buy Treasuries. Chinese central bank adviser Xia Bin, said the same day that Federal Reserve policy amounted to print "uncontrolled" money.

Speculation Fed purchases of Treasury bonds would succeed in preventing deflation and strengthening the recovery pushed U.S. government bonds low, driving the 10-year yield up to 2.96 percent on 16 November from 2.6 percent in late October.

The average yield of maturity of more than 19,400 bonds at the Bank of America Merrill Lynch rose to 2.54 percent from 2.27 percent on Oct. 31. Last month's decline was the largest since the index fell 1.5 percent in April 2004.

German bonds lost 0.2 percent, the U.S. government bonds fell 0.7 percent and Japanese debt fell 1.2 percent.

Ireland Bonds

Ireland bonds fell 11 percent, the biggest monthly drop since the Bank of America Merrill Lynch indexes began in 1988. The country is seeking a ransom of € 85000000000 (U.S. $ 110 million) of the European Union and the International Monetary Fund, becoming the second country after Greece to seek help.

Corporate bonds of U.S. fixed income Europe and Asia fell by 1 percent on average. The extra yield investors demand to own the debt rather than benchmark government bonds widened to 1.77 percentage points, from 1.64 to 31 October.

"The problem with the euro area is a problem that causes risk aversion," said Walter de Wet, head of commodity research at Standard Bank Plc in London, a unit of largest lender in southern Africa.

The Thomson Reuters / Jefferies Commodity Index ended November, to 301.41, after peaking at 25 months of 320.38 on Nov. 9. Wheat was the worst performer, declining 9.3 percent, followed by a 8.9 percent drop in corn and a 7.1 percent decline in orange juice.

Cheaper alternatives

Silver futures traded in New York led gains in commodities in November, bringing 14 percent because the metal is a cheaper alternative to gold for investors and jewelers, De Wet said. Gold rose to a record $ 1424.60 on 9 November, before the end of the month at $ 1386.02.

"The downside is likely to be limited from here" for commodities, De Wet said, forecasting the stimulus package by the Fed and China's demand will increase prices in the coming year. Is in favor of gold, copper and palladium for the next 6 to 12 months.

Shares worldwide snapped a gain of two months as the debt crisis in Europe and China's measures against inflation by curbing demand for the shares. The People's Bank of China raised its benchmark interest rates and deposit in October for the first time since 2007.

The MSCI All Country World Index fell 3.6 percent after returning in October and 9.6 percent in September, the largest monthly increase in back-to-back hike from 23 percent in April and May 2009.

Growth Prospects

"We have some recovery in equity markets," said Shane Oliver, Sydney-based head of investment strategy at AMP Capital Investors Ltd., which manages about 93 billion U.S. dollars and is a unit of AMP Ltd. , the second largest asset manager in Australia. "There is nothing to be seen to indicate a return to recession."

The Organization for Economic Cooperation and Development said Nov. 18 that the global economy will expand 4.2 percent next year instead of 4.5 percent forecast in May. The growth will recover to 4.6 percent in 2012, the Paris-based group said in its semiannual economic outlook.

Japan's Nikkei 225 Stock Average returned 8 percent in November to 9937.04, the highest gain among the largest markets in the world of equity. The shares advanced as the yen to a two-month low against the dollar improved the prospects for export earnings.

Komatsu Ltd., the second world's largest manufacturer of construction equipment, Fast Retailing Co., operator of Japan's largest clothing chain, and TDK Corp., the world's largest maker of magnetic heads for disk drives, each one returned more than 17 percent.

Global Equities

The Euro Stoxx 50, a measure of equity in the countries using the euro, fell 6.4 percent including reinvested dividends as Ireland accepted the bailout of its banking sector. Refer to the debt crisis will spread to other countries sent from Spain IBEX 35 Index by 14 percent and the FTSE / ASE 20 index for the Greek populations in a loss of 10.2 percent.

Shanghai, China composite index fell for the first time in five months, losing 5.3 percent. 500 of Standard & Poor's U.S. equity returned 0.01 percent, after rising for two months.

Japan said it will help extend the Kyoto Protocol agreement

Japan said it will help extend the Kyoto Protocol agreement to reduce emissions of greenhouse gases after it expires in 2012, saying instead that a new global agreement is needed to combat climate change.

The Kyoto treaty is "obsolete" because it only covers 27 percent of global emissions, Kuni Shimada, special advisor to the Japanese Environment Minister Ryu Matsumoto, said yesterday in an interview at United Nations talks on Climate in Cancun, Mexico.

Failure to extend the Kyoto through a deal brokered by the UN can set the second largest world market for emissions credits at risk of collapse. The organization of the Clean Development Mechanism, worth 2.7 billion U.S. dollars last year, is defined in the Kyoto agreement and the credits are generated to help polluters around the world meet emissions targets established in the 1997 treaty.

"This is firmer Japan has been," said Jake Schmidt, director of international climate policy in Washington, the Natural Resources Defense Council, in an interview in Cancun. "The fate of the Kyoto Protocol will cast a shadow on what we're trying to do here at all other building blocks of a climate agreement."

The agreement negotiated in Kyoto, Japan, binds 37 developed nations in the European community to reduce emissions to 1990 levels by a group of 5.2 percent in the five years to 2012. U.S. never ratified the treaty, developing countries like China are not included.

The operators of this year have sold in the United Nations concern Kyoto credits can not be extended.

Extending Credit Spread

Appropriations for 2012 which created the United Nations under the Clean Development Mechanism, established after the Kyoto agreement, traded at 4.25 euros (5.56 dollars) less than in the European Union program cap and trade from 30 November. That compares with a discount of 2.39 euros at the beginning of the year.

Compensation for the year 2010 gained 0.3 percent today to 11.8 euros per metric ton, compared the descent to 12.5 percent in the last three months. EU permits rose 0.1 percent to € 14.78.

The value of credits sold by investors in CDM projects, emission reduction by 59 percent last year to $ 2.7 million, according to a World Bank report.

Talks to extend the Kyoto targets for U.S. emissions and China, the largest emitter in the world, not the 2008 Summit of the UN climate protection in Poznan, Poland.

In Copenhagen last year, negotiators hoped to write a global treaty to replace Kyoto. The talks collapsed due to differences between the U.S. and China on the scale and reduction of emissions control.

"China and India want to ensure that the Kyoto Protocol is not dead, and you have Japan, Russia and Canada say no chance unless the U.S. and China are on board," Schmidt said.

U.S. is unlikely to agree to binding targets until at least 2013, and that needs a national law first, "said Shimada.

Depth Division

"Without the active participation of the two largest emitters, namely China and the United States, is a global effort," said Shimada, who was formerly Japan's top negotiator in the talks. "Whatever happens, under any conditions that do not accept a second commitment period."

The comments reflected the deep divisions that have prevented a new climate change treaty. UN officials leading the current round of negotiations are looking for other notable advances in the protection of forests, the channeling of funds to poor countries and the verification of emission reductions of guilt about damaging the Earth's atmosphere .

To agree an extension to the Kyoto Protocol is a key demand of developing countries, including China and the 43 nations of the Alliance of Small Island States. The 27-nation European Union has said it is open to a second commitment period, but also wants the U.S. action and China.

Pershing, Japan Slammed

Jonathan Pershing, head of the U.S. delegation, said this week that the Obama administration is committed to reducing its emissions of greenhouse gases by 17 percent of the 15 years until 2020. He said that President Barack Obama still believes the legislation is the right approach, even after Congress this year failed to pass a law that climate change and the Obama Democrats lost control of the House of Representatives.

"We believe that may not necessarily be only a global law, but perhaps the power elements or elements of the environment in other activities we also can move in that direction," Pershing said.

Environmental and nonprofit groups ended Japan's refusal to accept a second commitment period.

"It is surprising that at a time when everyone is trying to strengthen the climate regime, Japan wants to kill the treaty that bears his name," said Mohamed Adow, climate change adviser to Christian Aid, in an emailed statement.

The collapse of CDM carbon market backed by the UN would offset the impact of the funding source for renewable energy projects in developing countries of Asia, Haruhiko Kuroda, president of the Asian Development Bank said in a press conference today in Tokyo.

"The truth is that the carbon trading market has been affected," Kuroda said. If the CDM is collapsing, "a very important pillar of the funding mechanism for the efforts of climate change mitigation in developing countries will disappear."

Oil rose by adjusting the biggest drop in nearly two weeks



Oil rose by adjusting the biggest drop in nearly two weeks on signs of accelerating growth in China and declining fuel inventories in the U.S.

Futures gained as much as 1.7 percent after a report showed China manufacturing grew at its fastest pace in seven months in November. data from the U.S. government today may show oil inventories fell 1.15 million barrels last week. Crude advanced as the dollar fell for the first time in four days, increasing the attractiveness of commodities to investors.

"The confidence of oil is getting better, with U.S. data rather support the demand side and the Chinese figures stronger than expected," said Hannes Loacker, analyst at Raiffeisen International Bank AG in Vienna. "But with the possibility of raising rates further in China, prices are likely to be capped at $ 90 this year."

The January contract rose to $ 1.42 to $ 85.53 a barrel on the New York Mercantile Exchange and was at $ 85.49 a barrel at 12:30 pm London time. Brent crude oil for January settlement rose to $ 1.49, or 1.7 percent, to $ 87.41 a barrel on the ICE Futures Europe exchange in London.

China Purchasing Managers' Index rose to 55.2 from 54.7 in October, according to the federation of logistics in the country today. That was more than the 54.8 median estimate of 14 economists surveyed by us.

European Debt

Oil prices fell 1.9 percent yesterday concern mounted that Europe's debt problems are spreading to countries like Spain, Portugal and Italy. It was the biggest daily drop since Nov. 17. The European Union approved a rescue package of 85 billion euros ($ 111 million) for Ireland from 28 November.

The crisis has pushed down the euro against the dollar, which limits the appeal of commodities priced in U.S. currency. The euro was at $ 1.3102 today, 0.9 percent, as the dollar fell against all but one of his 16 fellow seniors.

"China's economy will continue to grow as much as possible, and in five years their oil consumption will be much greater," said Tetsu Emori, fund manager of raw materials Astmax Ltd. in Tokyo. "The market is more focused on the dollar and the euro and worried about credit problems in Europe."

An Energy Department report today may show U.S. crude and distillate fuel stocks fell last week. Oil top of its third monthly increase in November, rising 3.3 percent. Prices have risen 6.6 percent this year.

U.S. Inventories of distillates, which include heating oil and diesel, fell 1.1 million barrels. The American Petroleum Institute funded by the industry yesterday said they were up 224,000 barrels.

Crude supplies fell 1.15 million barrels, according to the median of 16 responses in the survey. The API said yesterday fell 1.14 million barrels.

The API contains holdings information voluntarily by operators of refineries, bulk terminals and pipelines. The government requires that reports be submitted to the Department of Energy for its weekly report.