Dec 15, 2010 ~ Business

Wednesday, December 15, 2010

Oil futures rise after crude inventories fall more in eight years

Crude oil rose after a U.S. government report showed supplies fell the most since 2002, imports fell and refiners boosted fuel production.

Inventories fell 9.85 million barrels to 346 million last week, the Energy Department said. The stock is expected to decline from 2.5 million barrels. Imports fell 15 percent to 7.69 million barrels, the lowest level since September 2008. Refineries operated at 88 percent capacity, the highest since September.

"The numbers are striking oil," said Andre Julian, chief financial officer and senior market strategist OpVest Wealth Management in Irvine, California. "The short-term shortage of oil in the U.S. is forming. The prices could easily reach $ 100 by the end of the year on the basis of this report."

Crude oil for January delivery rose 71 cents, or 0.8 percent, to $ 88.99 a barrel at 10:52 am at the New York Mercantile Exchange. Futures traded at $ 87.89 a barrel before the publication of the report at 10:30 am in Washington.

Crude also rose after U.S. industrial production increased more than expected in November, indicating factories to support economic growth in the country's largest oil consuming world.

Production factories, mines and utilities rose 0.4 percent after a revised decline of 0.2 percent in October, Federal Reserve figures showed today in Washington. Economists forecast a 0.3 percent gain, according to the median of 75 estimates in a survey.

Manufacturing in the New York region recovered more than expected in December after contracting for the first time in over a year, a report by the New York Federal Reserve also showed today. The bank's general economic index rose to 10.6 from minus 11.1 in November. Readings greater than zero signal growth in New York, northern New Jersey and southern Connecticut.

OAO Uralkali is near a deal to buy OAO Silvinit

OAO Uralkali, the largest fertilizer company in Russia, is near a deal to buy OAO Silvinit, its biggest domestic rival with a market value of $ 6.9 million, according to two people with knowledge of the situation.

Uralkali obtained the agreement of the government to create a national champion to compete internationally, said the officials, who declined to be identified because the plan is confidential. The transaction is likely to be announced before year's end, the people said.

Russian billionaire Suleiman Kerimov and partners acquired a controlling interest in Berezniki, based Urals Uralkali and Silvinit between June and August and have been trying to combine the two. The combined group representing 17 percent of world potash production, making it the second largest producer after Canada's Potash Corp. of Saskatchewan Inc., according to Fertecon Ltd., an industry consultant the United Kingdom.

Alexey Sotskov, a spokesman for Uralkali in Moscow and Anton Subbotin, representing Silvinit, declined comment. Dmitry Peskov, a spokesman for Prime Minister Vladimir Putin, said the prime minister is "informed of the merger in progress" and declined to comment on any government approval.

The world's largest potash eight miners whose control market already exceeds that of oil cartel OPEC has been trying to strengthen his control over the prices of crop nutrients. BHP Billiton Ltd. last month rejected an offer of $ 40 billion for Potash Corp. following opposition from lawmakers in Canada.

Price earnings

With the world population, adding 75 million people a year, the demand for food is able to put more pressure on crops, increasing the need for fertilizers. Consolidation among producers of potash, a form of potassium used to increase yield by helping plants resist dry soil, has caused concern in countries like India, the largest importer last year, prices will rise.

A fivefold increase in potash prices in 2007-2008 resulted in at least eight class-action lawsuits in the U.S. most of collusion, a charge denied to producers. Potash was one of the latest products to immerse themselves in the global recession as suppliers to cut production to support prices. Potash Corp. used a third of its capacity last year, while none of its seven biggest rivals use over 80 per cent and Potash Corp. Fertecon data show.

Kerimov directly owns 25 percent of Uralkali through its holding Kaliho Finance Ltd., and together with partners controls 53 percent, Uralkali said in June.

The billionaire owns 25 percent of Silvinit, the newspaper Vedomosti. Their control extends to 69 percent when accounting for 44 percent stake acquired by its partners in August, a person familiar with the purchase, said at the time.

European stocks fell

European stocks fell, breaking the longest streak of gains in six months, after Moody's Investors Service placed the debt rating of Spain on review for possible downgrade.

Banco Santander SA, Spain's largest bank, and Banco Bilbao Vizcaya Argentaria SA, both landed in Madrid. Inditex SA, slid 4.7 percent after the world's largest clothing retailer reported a slowdown in earnings growth. The drug decreases limited after Novartis AG said it will take total control of Alcon Inc., ending a 11-month conflict with minority shareholders.

The Stoxx Europe 600 index lost 0.3 percent to 276.94 at 3:09 pm in London, early crop a drop to 0.7 percent. The benchmark had risen in the last seven days China refrained from raising interest rates and U.S. data Retailers boosted confidence in the world's largest economy.

"We just had a huge stone thrown into the water sending waves of uncertainty through the market," said the Londoner David Buik, market strategist at BGC Partners. "Spain is a vast country, its economy is the size of Greece, Ireland and Portugal twice. Let's have a little mark down, but the markets regain their balance again."

The shares pared losses after reports showed U.S. industrial production grew more than expected in November while manufacturing in the New York region recovered more than estimated in December.

National benchmarks fell in 11 of the 18 western European markets. The French CAC 40 fell 0.3 percent, Britain's FTSE 100 rose 0.1 percent while Germany's DAX fell 0.1 percent.

Classification of Spain

Spain's IBEX fell 35 percent after Moody's placed the country Aa1 local and foreign currency government bond ratings in the review, saying Spain will have to raise about 170 million euros in 2011.

EU leaders are meeting tomorrow in Brussels to discuss the creation of a permanent mechanism to underpin the most indebted countries. At the summit on December 16 and 17 the group will face skepticism from investors about its willingness to curb sovereign debt crisis led to bailouts for Greece and Ireland, and threatens to spread.

Santander fell 1.6 percent to 8.23 euros and BBVA, the second largest bank in Spain, lost 1 percent to 7.91 euros in Madrid and Moody's warned that Spain's debt could increase due to the costs of recapitalization the banking sector.

"The substantive requirements of Spain for funding, not only for the sovereign, but also for regional governments and banks, the country is susceptible to new episodes of stress in funding," said Kathrin Muehlbronner, an analyst at Moody's, in a report published today.

Inditex, Hennes & Mauritz

Spain's Inditex fell 4.7 percent to € 59.55 in profit growth slowed in the third quarter. Net income rose 20 percent to 551 million euros ($ 734 million) in the three months ended Oct. 31, according to results announced today nine months the owner of the Zara chain. nine-month profit rose 42 percent. The stock has risen 37 percent so far this year.

Hennes & Mauritz AB fell 1.9 percent to 239.80 crowns. the second largest European clothing retailer reported a 17 percent increase in total November sales, while sales at stores open at least a year rose 8 percent.

SuperGroup Plc, owner of the clothing brand SuperDry, fell the most since its initial public offering in March, losing 14 percent to 1,396 pence, as the increased costs slowed earnings.

"We see this as a negative turn," wrote London-based Noble Implementation Sanjay Vidyarthi Ltd. analyst in a report released today. "We had previously understood that SuperGroup expected to navigate through the inlet pressures at a relatively well as a result of increased scale and bargaining power with suppliers."

Aixtron

Aixtron AG, a maker of equipment used to produce LED screens, fell 3.8 percent to € 26.58 in Frankfurt after the U.S. pairs Veeco Instruments Inc. tumbled 16 percent in U.S. trading yesterday. Citigroup Inc. downgraded the U.S. manufacturer gear for manufacturers of chips and data storage to "hold" from "buy."

Beiersdorf AG fell 6.8 percent to € 40.71 after the maker of Nivea skin cream forecast for 2011 operating earnings before interest and taxes below the level of this year as the company plans to "increase spending marketing significantly. " The company posted an investor presentation on its website today.

Novartis rose 6 percent to 56.8 Swiss francs after the company agreed to pay 12.9 billion U.S. dollars for shares of Alcon has not yet. Payment will be a combination of Novartis shares and cash if necessary, so that the value of the offer to $ 168 per share. Alcon Independent Director Committee recommended approval.

Atos Origin

Atos Origin SA soared 11 percent to € 37.66 after Germany's Siemens AG, said yesterday afternoon plans to sell its computer services to Atos 850 million euros ($ 1.14 billion) of transactions.

The Munich-based company will receive a 15 percent stake in the combined entity, as well as cash and a convertible bond and contribute some 250 million euros to aid integration. Siemens shares rose 1.6 percent to € 92.60.

Shopping Capital Group Plc rose 5.5 percent to 418.2 pence after Simon Property Group Inc. made a bid for the retail largest landowner in Britain that values the company at 2.9 million pounds ($ 4,600,000,000). Capital purchases later rejected the proposal.

Hochtief AG gained 1.2 percent to € 65.14 after Actividades de Construccion y Servicios SA raised its offer price to 9 ACS shares for every 5 shares of the German company.

Silver is likely to repeat its success in 2011, reaching $ 40 an ounce in new applications and demand for the industry, said the head of commodity trading in Japan's Standard Bank Plc.
The precious metal is likely to exceed the gains in gold next year, which exceed $ 1,500 an ounce and palladium, Ikemizu Bruce said in an interview in Tokyo. "Unexpected" new applications for silver, as in solar batteries, and industrial application that supports 80 percent of demand, make the metal's appeal to "a lot of famous investors, especially in the U.S. . "Ikemizu said, without elaborating.
Cotton has only won silver in the UBS CMCI index of commodities this year, winning 92 percent to 76 percent of the metal. The precious metal touched a 30-year high earlier this month to reach $ 30.7025 an ounce. Gold, which reached a record $ 1431.25 an ounce on December 7, has advanced 27 percent this year.
Federal Reserve chairman, Ben S. Bernanke boosted the earnings of commodity prices, especially denominated in U.S. dollars, saying that on 6 December that the Fed could expand purchases of bonds beyond the $ 600 billion announced in November to shore up the fragile economic recovery.
Ikemizu prospects, who negotiated commodities for over 24 years and correctly predicted in June that gold will exceed $ 1,300, broadly agrees with the view of 2011 Deutsche Bank AG and Credit Suisse Group AG.
Credit Suisse sees an average of $ 30.10 per ounce silver, gold $ 1,490 an ounce, palladium and $ 795 an ounce next year, the bank said yesterday. Deutsche Bank has offices silver among the 10 commodities in 2011, the bank said Dec. 13.
Silver holdings of European technology platforms rose for a fourth day today, extending from 73 metric tons to 15.163 tons in its highest level since at least February, data from four suppliers of entertainment.
Gold for immediate delivery declined 0.5 percent to $ 1,389.05 an ounce at 3:29 pm in Tokyo. Silver for immediate delivery fell 1 percent to $ 29.1625 an ounce.

S & P 500 can not rise beyond the pre-Lehman levels Amid technical resistance

The restoration of all losses spurred by the bankruptcy of Lehman Brothers Holdings Inc. is testing the determination of U.S. bulls stock market.

500 Standard & Poor's rose above 1245 hours before paring its gains, failing for a second day to overcome the closing level before Lehman Brothers collapsed in September 2008.

Climbing above 1251.70, the closing price on September 12, 2008, may mean that investors are increasingly confident in the manifestation of 21 percent since the July 2 is sustainable, as companies reported earnings above the estimated and the Federal Reserve attempts to boost the economy by purchasing bonds. The S & P 500, up 11 percent this year surpassed the previous 2010 high of 1,217.28 hit in April and posted a combined increase of 13 percent in September and October.

"That is obviously a critical level, which is the level at which we realized things were broken," said Ryan Detrick, senior technical analyst at Schaeffer's Investment Research, in a telephone interview yesterday Cincinnati. "Now we're back there, it makes sense that the market takes a pause."

The benchmark rose as high as 1,246.59 at 2:21 pm yesterday, before falling back to 1,238.17. The S & P 500 had a similar motion on 13 December, reaching 1246.73 at 2:46 pm before deleting all your winnings at the last minute to make a lower daily gain since Oct. 26.

Largest drop

On September 15, 2008, the equity benchmark fell 4.7 percent, the biggest drop since the first trading day after the attacks on September 11, 2001, terrorist, as the bankruptcy of Lehman Brothers and declining asset prices led investors to speculate that markets are freezing and the economic slowdown could get worse. Depreciation and related credit losses have totaled more than 1.8 trillion U.S. dollars worldwide since the beginning of the financial crisis and the S & P 500 fell to 57 percent from its peak in October 2007 to March 2009.

While the S & P 500 has risen 84 percent since reaching a 12-year low in March last year, unemployment in a quarter-century high of 9.8 percent has led some investors remain cautious. Pacific Investment Management Co., manager of the largest bond fund in the world, has warned since May 2009 that economic recovery is slower than normal had lower average levels. Capital funds have been more than $ 80 billion in outflows since the beginning of May, according to the Washington-based Investment Company Institute.

Head and Shoulders

The S & P 500 reached a low of 1022.58, 2010 July 2 rose amid speculation some European nations can not pay your debt. Christopher Verrone, chief technical analyst in New York Strategas Research Partners, said a head and shoulder pattern on the base table called the lows of March 2009 and July: S & P 500 will face resistance between 1240 and 1,250.

"It's purely technical movements," Verrone said. The level of 1,251.70 Lehman "has a psychological impact.'s Close to a round number - 1250 - and people put emphasis on round-number resistance.'s In the back of the minds of the people."

The head and shoulders pattern is formed by three consecutive peaks on a graph, the highest in the center. The level that connects the valleys between the peaks known as the neckline. In technical analysis, investors and analysts study charts of trading patterns to predict changes in the security, commodity, currency or index.

The S & P 500 also can take a break after a rally, according to Detrick. He predicts that the proposed measure will make its way to close above 1,251.70 at the end of the year.

"Catching his breath"

"We had this great movement and we are now selling at the end of the day, but it seems that large institutions dumping many of the stocks," said Detrick. "That's an encouraging sign for the bulls. It's just that the market for catching your breath."

The S & P 500 has gained an average of 1.9 percent during the trading days in the last 10 of the year, according to Bespoke Investment Group dates back to 1990. While there are 12 days remaining in 2010, as a gain boost the benchmark to 1,265.18 yesterday's close, above the pre-Lehman.

"You're seeing a turnaround in the market moves every day," said Jeffrey Saut, chief investment strategist at Raymond James & Associates in St. Petersburg, Florida, who helps manage 240 billion U.S. dollars. For the rest of the year, the S & P 500 recover and rebuild itself for another rally in the first part of next year. "

Gold fell for the first time in three days in New York as the Federal Reserve refrained from making further purchases of government bonds, curbing demand for the metal as a protection of wealth.

The dollar was little changed against the euro before data forecast to show growth in U.S. industrial production, supporting the Fed's comments that the U.S. economy is recovering. The central bank yesterday held a $ 600 billion debt purchases. The dollar rose 0.7 percent against the euro today. Gold futures set a record $ 1432.50 an ounce on 07 December.

The Fed "will not increase the volume of Treasury purchases," said Daniel Briesemann, an analyst at Commerzbank AG in Frankfurt, in a report today. "This could weigh on gold prices in the short term. One of the reasons for the decline in prices is the strong U.S. dollar again yesterday."

Gold futures for February delivery fell $ 9.80, or 0.7 percent, to $ 1,394.50 an ounce at 8:02 am on the Comex in New York. The metal for immediate delivery in London was 0.2 percent, to $ 1,394.05.

Gold gained 27 percent this year, set for an annual gain of 10, as investors lost confidence in the currency and buy precious metals as a hedge of wealth. European Union leaders will meet this week amid dissension about how to stop a debt crisis which made Greece and Ireland to accept bailouts. The dollar strengthened after Moody's Investors Service said the rating is Spain's debt on review for possible downgrade.

U. S. Growth "insufficient"

More government bond purchases by the Fed are "certainly possible", said Chairman Ben S. Bernanke, in an interview broadcast on CBS Corp. s "60 Minutes" on Dec. 5. The Fed said yesterday that growth is "insufficient to reduce unemployment."

the U.S. factory production rose 0.3 percent in November, according to the median estimate of 78 economists surveyed by us before the Fed released information today. U.S. sales retail rose 0.8 percent last month, the Commerce Department said yesterday.

"Expectations that the U.S. economy will doubtless grow after retail sales rose and after the Fed meeting," said Hwang Il Doo, a senior trader at Korea Bank Futures Co. in Seoul . "That's a weight in gold."

gold assets in exchange-traded products fell 4.83 to 2,091.56 tons metric tons yesterday. Holdings reached a record 2,104.65 tonnes on 14 October. won silver holdings to 73.08 tonnes 15,163.25 tonnes, the highest amount since at least February, data from four suppliers of entertainment.

Silver for March delivery in New York fell 1.6 percent to $ 29.30 an ounce. It rose to $ 30.75 on 7 December, the highest since March 1980 and 74 percent this year. Prices reached a record high of $ 50.35 in New York in 1980, a year after the Hunt brothers tried to corner the market.

Palladium for March delivery fell 2.2 percent to $ 751.25 an ounce. It rose to $ 780 on 3 December, the highest since April 2001. Platinum for January delivery was 0.8 percent, to $ 1.701 an ounce.

Cotton futures in New York fell for the first time in six days

Cotton futures in New York fell for the first time in six days on speculation a rally to a maximum of one month may reduce the demand for fiber and increase the sowing area in the U.S., the largest supplier in the world.

Cotton for March delivery fell as much as 1.9 percent to $ 1.4178 a pound on ICE Futures U.S. New York and was at $ 1.42 at 4:06 pm in Tokyo. The contract touched $ 1.4597 yesterday, the highest since Nov. 10.

"Today's higher prices may reduce purchases of foreign importers and encourage U.S. farmers to increase acreage," said Hiroyuki Kikukawa, general manager of research at IDO Securities Co. "It can be it is selling to take profits as the plight of the power supply can last for a while. "

cotton acreage may increase by at least 10 percent in the southwestern U.S., according to John Robinson, professor and extension economist at Texas A & M University in College Station. Texas is the largest cotton producers.

"The high prices and the impact of entering a dry year, which will reinforce the effect of planting more cotton in Texas," Robinson said yesterday in a conference call organized by Ag Market Network. "We will see the surface of cotton, especially on the mainland, arriving at the place of either sorghum or wheat acres. While it stays dry, it will strengthen. Worth cotton plant under those conditions."

The decrease in inventories

Cotton prices have risen 88 percent this year, heading for the biggest annual gain since 1973. Fiber reached a record $ 1.5195 a pound on November 10 on signs that producers would struggle to meet mounting demand in China, the world's largest consumer.

U.S. stocks for the year to July 31 at a total 1.9 million bales, the lowest level since May 1996 projected, when Our data begin, the Department of Agriculture said that 10 December. That is 14 percent below the estimate of the agency in November.

Deposits inventories monitored by the ICE expanded to 116,695 bales of 13 December, from 114,876 bales the previous day. Stocks have fallen 72 percent this year. A bullet weighs about 480 pounds or 218 kilograms.

Cotton for delivery in September fell 1.3 percent to settle at 27.660 yuan ($ 4.154) per tonne in the Zhengzhou Commodity Exchange. Demand in China is expected to outstrip supply by 17 million bales in the year ended July 31, according to the USDA.

Natural gas rose in New York

Natural gas rose in New York, reversing a previous fall, after the U.S. Federal Reserve reported that industrial production rose more than expected, indicating that economic growth can boost demand for fuel.

Natural gas for January delivery rose 1.5 cent, or 0.4 percent, to $ 4.27 per million British thermal units at 9:31 am in the New York Mercantile Exchange. The future will take place from 2 percent this month.

Global Demand for U.S. Assets Slowed in October

Global demand for U.S. stocks, bonds and other financial assets slowed in October from the previous month, the Department of the Treasury, as the pace of economic recovery weighed on demand.

net purchases of long-term debt and bonds amounted to 27.6 billion during the month compared with net purchases of 77.2 billion U.S. dollars in September, according to statistics released today in Washington. Including short-term securities such as stock swaps, foreigners bought a net $ 7.5 billion compared with net purchases of 80.1 billion U.S. dollars last month.

U.S. economic recovery the deepest recession since the 1930's has lagged behind growth in emerging markets, burdened with an unemployment rate approaching 10 percent and record home foreclosures.

"There are some doubts about the pace of our recovery and the size of our deficit and may be dampening demand for U.S. assets," said Gary Thayer, chief strategist at Wells Fargo Macro Advisors LLC in San Luis by phone after the data were released. "I also think there may be better opportunities in other places that attract people."

Total net foreign purchases of Treasury bonds and bonds fell to 23.5 billion U.S. dollars in October of 78.9 billion U.S. dollars for purchases in September, according to data released today.

Treasury reporting

Treasury reporting of long-term securities captures international purchases of government notes and bonds, stocks, corporate debt and securities issued by U.S. agencies such as Fannie Mae and Freddie Mac, which buy mortgages .

China remained the largest foreign holder of U.S. Treasury bonds, after its holdings increased by 23.3 billion U.S. dollars to 906.8 billion U.S. dollars in October, according to Treasury statistics.

China's currency, the yuan has strengthened from a dollar parity was scrapped two years on 19 June. The Government will promote the reform of RMB exchange rate next year, according to a statement on the website of the State Council of 12 December after the Central Economic Work Conference.

The Treasury statistics from other countries were Japan, the second largest operator, increased its holdings by 12.8 billion U.S. dollars to 877.4 billion U.S. dollars in October. Hong Kong, counted separately from China, increased its share in $ 3.3 billion to $ 139 200 000 000.

Interest rates on deposits Argentina are rising to the highest level in 13 months

Interest rates on deposits Argentina are rising to the highest level in 13 months as banks try to meet a year-end demand for cash that the monetary authorities are trying to meet printing pesos.

BADLAR call rate that banks pay on deposits of more than 1 million pesos ($ 252,000), held from 30 to 35 days rose to 11.25 percent on December 10, the highest since the 03 November 2009, and up to two-year low of 8.81 percent in May. The BADLAR, which is used as a reference point for Argentina yield corporate bonds, compared with 0.26 percent the interbank rate of one month's supply of London, or Libor, in U.S. dollars.

The largest economic expansion since 2005 is driving the demand for cash that companies need to pay mandatory premiums in December and that tourists used to travel in the southern hemisphere summer. Banco de la Ciudad de Buenos Aires Federico Sturzenegger president said in October that the bills were scarce.

"There is a struggle for the weights of the banks, for physical bills," said Boris Segura, a Latin America economist with Nomura Securities International Inc., in an interview from New York. "That is pushing the BADLAR."

the nation's cash in circulation and current accounts and savings, as measured by M2 monetary indicator, increased by 2 percent in the week to 242.1 billion pesos on December 3, according to the latest data from the central bank. The central bank raised its M2 target year-end to 254.7 billion pesos in August, after exceeding its original goal.

Rate Outlook

BADLAR rate can rise as high as 15 percent by the end of this year before falling to 11 percent in March, said Mariano Kruskevich, an analyst at SBS Sociedad de Bolsa SA, a brokerage firm in Buenos Aires.

"The movement we're seeing today with the BADLAR corresponds to the seasonal year-end," he said.

BADLAR reinforces a growing rate government bonds in dollars maturing in 2014 and 2015 that are linked to bank rate, SBS said in a note yesterday. 2014 bonds was 15.7 percent yesterday, according to the price of MBA Lazard.

The BADLAR has become the preferred reference for floating-rate corporate debt sold in the last two years, to replace the reference stabilization coefficient, or CER, which is related to the consumer price index official said Kruskevich into an e-mailed response to questions.

Inflation data

Economists and politicians including Vice President Julio Cobos reports have questioned the government's inflation since 2007, when then-President Nestor Kirchner began changing personnel in the national statistical institute. Kirchner, died in October.

President Cristina Fernandez de Kirchner, the widow of former president, he brought in the International Monetary Fund officials last week to offer advice on creating a new national inflation index.

The government said annual inflation of 11.1 percent in October, less than half the estimated 25 percent of Nomura, Goldman Sachs Group Inc. and Credit Suisse Group AG.

The National Statistics Institute will publish the November inflation report today at 2 pm New York time.

The extra yield investors demand to hold government bonds in dollars rather than U.S. Treasuries contracted two basis points, or 0.02 percentage point, to 496 at 8:26 am New York time, according to JPMorgan Chase & Co.

Credit Default Swaps

The cost of insuring Argentine bonds against default for five years fell 4 basis points to 631 yesterday, according to CMA DataVision. Swaps credit-default pay the buyer face value in exchange for the underlying securities or the cash equivalent of a government or a company fails to meet debt agreements.

The peso fell 0.1 percent to 3.9728 per dollar today. Badlar rate dropped to 11 percent on 13 December. The interbank lending rate a day today was unchanged at 10.5 percent, the highest since Nov. 1. The type of call is up 10.1 percent at the end of last week.

Guarantees linked to economic growth rose 0.08 cent to 13.95 cents. Argentina's economy may expand as much as 9 percent this year, the central bank.

Badlar Central Bank rate is likely to decrease in January, before increasing to 12 percent in late 2011, Nomura Securities said.

"Things will normalize after the holidays," he said.

Moscow Micex began operating the yuan against the ruble for the first time today

Moscow Micex exchange began operating the yuan against the ruble for the first time today, as Russia and China try to reduce the use of dollars in trade.

The ruble closed at 46.3405 for 10 Chinese yuan for 11 hours in Moscow, after opening at 46.35 yuan for 10 shortly after 10 am By the end of the session the trading volume amounted to 4.92 billion yuan (738 850 dollar), or 22.78 million rubles, according to data from the index.

Both China and Russia have demanded that the dollar's role in world trade declined from the global financial crisis, and Russia is promoting the ruble as a reserve currency and trade within the former Soviet Union. China is allowing greater use of the yuan, which is not yet fully convertible in international transactions as it seeks to reduce its dependence on the dollar. Asian exchange derivatives trading palm oil and gold are starting to accept yuan for payment and warranty.

"This event will become part of history in relations between Russia and China, in the history of our financial markets," said Viktor Melnikov, a deputy chairman of Russia's central bank, in a ceremony to launch the trade at the headquarters Micex in Moscow, attended by the Ambassador of China Li Hui Moscow. "No doubt this will become a major catalyst for the economy and trade."

The Micex, which is the largest exchange in Russia by volume, expects about 3 million yuan (450,518 U.S. dollars) changed hands every day, the exchange of vice Igor Marich said on 6 December. China allowed the yuan to trade against the ruble in the interbank market on November 22.

'Exotic'

"It is an exotic cross that can develop in importance in coming years," Piotr Matys, an emerging markets analyst at 4Cast currency Ltd., said by phone from London today. "The dollar will remain the most important currency trading, but obviously, given the relationship of these two countries' trade this step makes sense."

Russian Chinese companies buying products such as timber, seafood and coking coal and Russian companies importing Chinese goods are the main customers of trade yuan, rubles, Melnikov rossii Bank said on December 6. Customers of Russian banks doing business in China will be able to save up to 5 percent in transaction costs for buying yuan through Micex, according to Melnikov.

Chinese Premier Wen Jiabao said in March that he was "troubled" by holding assets denominated in U.S. currency. The derivatives exchange Berhad, which sets the global benchmark for crude palm oil, was launched in November to accept the Chinese yuan as margin collateral for trading in the derivatives market in Malaysia. The Chinese Gold & Silver Exchange will start the first international gold yuan early next year, the Financial Times reported yesterday, citing President Haywood Cheung exchange.

"The launch of this trade is a great thing," said Ruben Aganbegyan, president of the Micex. "It will become the leading currency pair in our market, but the first step in a very interesting direction."

Treasuries rose & pushing yields to 10 years less than the highest level in seven months

Treasuries rose, pushing yields to 10 years less than the highest level in seven months, a government report showed that consumer prices advanced in November than economists expected.

The extra yield investors demand to hold a 10-year 2-year debt fell for the first time in four days as Moody's Investors Service said it may cut the credit rating of Spain. U.S. debt fell yesterday after the Federal Reserve said that economic recovery continues and maintained its program of 600 billion U.S. dollars for purchases of debt.

"The rise in yields is ahead of itself," said Dan Greenhaus, chief economic strategist at Miller Tabak & Co. in New York. "The Fed is still suspended, and inflation as evidenced by today's report is relatively benign."

The yield on the benchmark 10-year fell six basis points, or 0.06 percentage point to 3.41 percent at 9:25 am in New York, according to BGCantor Market Data. The price of the security of 2,625 percent due November 2020 rose 15/32, or $ 4.69 per $ 1,000 face amount, to 93 13/32. Past performance rose to 3.50 percent, the highest since May 14.

MOVE rate of Bank of America Merrill Lynch, which measures the oscillations of the Treasury based on prices of put options maturing in 2-30 years, rose yesterday to 118.40, the highest since October 2009 .

Consumer prices increased 0.1 percent in November, the Labor Department reported today in Washington. The median forecast of 80 economists surveyed by us was for an advance of 0.2 percent.

"There is no serious sign '

"There is no serious sign of inflation pressure," said Andy Cossor, Hong Kong, chief market strategist for Asia at the DZ Bank AG, Germany's fifth largest lender, before the inflation report was released .

China remained the largest foreign holder of U.S. Treasury bonds, after its holdings increased by 23.3 billion U.S. dollars to 906.8 billion U.S. dollars in October, the U.S. Treasury reported. Japan, the second largest operator, increased its holdings by $ 12,800,000,000 to $ 877,400,000,000 in October.

Treasuries rose earlier after Moody's Investors Service said it put the credit rating of Spain on the review and auction € 500 million (666 million U.S. dollars) from Portugal bills three months drew less demand.

Portuguese stock sale attracted bids due March equivalent to 1.9 times the amount offered, compared with a ratio of 2.2 in November, government figures showed. Tickets were sold at an average yield of 3.403 percent, up from 1.818 percent the previous offer.

Tax Reduction Deal

Treasury bonds fell in early speculation about the U.S. agreement President Barack Obama to extend the tax cuts will in Congress to support growth, raise inflation and prompted investors to reduce holdings of longer-term.

Fed officials maintained yesterday its plan to buy Treasuries through June, under the quantitative easing, disappointing some investors by not extending the stimulus record.

The central bank remained committed to keep its benchmark rate low for an extended period will, keeping the target rate for overnight bank loans a day zero to 0.25 percent, where it has been since December 2008.

Yields of 10-year bonds may fall back toward 3 percent, technical indicators show the debt has been oversold, according to Canadian Imperial Bank of Commerce.

When the yield increased to 3.49 percent yesterday, to cross the 61.8 percent decline from a peak of 4 percent in April and a low of 2.33 percent on Oct. 8, on the basis of a series of numbers known as the Fibonacci sequence.

"Yields may fall to 3 percent by year-end, possibly before returning to test the level of 61.8 percent back to form a double top," said Kazuaki Oh'e, Executive Director based in Tokyo fixed income, currencies and its distribution in Canada's fifth-largest lender.

RIM Rally May Fizzle as Rival estimates are too optimistic IPAD

Research In Motion Ltd. has increased by 41 percent since August on prospects for its new tablet device. That may be too big jump since the product is late to a market led by Apple Inc. 's IPAD, analysts say they are reducing ratings.

Sales estimates for the BlackBerry playbook vary from 1 million units next fiscal year to 8 million analysts try to predict demand for a team that will not leave until the first quarter and will also face other rivals as well Apple.

"It will be a modest seller and the IPAD probably make 10 times more," said Shaw Wu, an analyst at Kaufman Bros. in San Francisco, which cut its rating on RIM to "hold" on November 9. He estimates RIM sold 1,000,000 playbooks next year at most.

The tablet shows that RIM are the growth beyond the BlackBerry device, which is losing users of Apple's iPhone and devices that use Google Inc. 's Android software. Book sales strategies may reach $ 1.1 billion, or 4.8 percent of the 22.8 billion in revenue analysts predict that by next year from RIM. The calculation is based on the median of 17 estimates in a survey for RIM to sell 2.55 million tablets at an average price of $ 430.

At least six analysts have cut their rating on RIM shares over the last six weeks, and less than half of those tracked by us recommend buying. Shares of Apple, it is recommended 90 percent of the analysts that follow.

Some maintain faith in the MRI. Matthew Robinson, Wunderlich Securities analyst in Denver, said in a research note Dec. 10 the playbook is compelling because it works with the BlackBerry, allowing hooked on the smartphone from RIM to "continue to use his communication device preferred. " He reiterated his "buy" rating on the shares.

The fight against Holder

RIM, based in Waterloo, Ontario, is quick to introduce the tablet to its core audience of what co-CEO Jim Balsillie called "people so busy working," with the aim of preventing the IPAD to make new inroads with users business. IPads Apple sold 4.19 million last quarter, revenue of $ 2.8 billion.

By the time the playbook goes, Apple has sold about 17 million iPads, said Steven Fox, an analyst at Credit Agricole in New York Securities, who expects annual sales playbook about 1 million. The IPAD was released in April.

"Unlike smart phones, iPhone, where there was a big hurdle to overcome to enter controlled companies by the owner of RIM, the IPAD is now the owner at the beginning of the company that RIM would have to" in one of its characteristics , "Fox said in a note to clients last week. He cut his rating on RIM "underperform."

RIM says the playbook is better than the IPAD on tasks like video playback. The stock rose 12 percent in two days in October, after co-CEO Mike Lazaridis demonstrated the playbook running video clips. He and Balsillie handle stress the playbook of Adobe Systems Inc. 's Flash technology on which much of video content online. The IPAD does not support Flash.

Expectations 'too strong'

The dominance of market iPad tablet PC that "change when we are in the market," Balsillie said in an interview last month. Apple CEO Steve Jobs has said that devices like the playbook is "dead on arrival" because they are too small to compete with the iPad. The playbook is a 7-inch (18 cm) screen, smaller than 9.7 inch screen of the iPad.

Jeff Fidacaro, an analyst at Susquehanna Financial in New York, RIM expects to ship 8,000,000 playbooks next fiscal year. While his prognosis makes the most optimistic among analysts said recent increases in action suggests that investors are taking sales even more, about 10 million units.

"The investors' expectations are too high for the power of incremental revenues for this release tablet," he said in a note.

Gleacher & Co. 's Mark McKechnie and Exane BNP Paribas Peterc, Alexander both reduce RIM its rating to "neutral," saying recent rise of the action is no longer manufactured cheaply, given the competition. Peterc expects sales of the playbook of 3.3 million units next fiscal year. McKechnie provides 1.8 million.

RIM declined to comment on analysts' estimates sales playbook, said Tenille Kennedy, a spokesman for the company.

'Rally playbook-Driven'

RIM fell 36 cents to $ 60.45 on the Nasdaq stock market yesterday. The stock has risen from a low of 17 months of $ 42.84 on August 31, before the company unveiled the tablet. Apple has increased 56 percent since the introduction of IPAD 27 January.

"Much of it is real based on demonstration playbook," said Colin Gillis, an analyst at BGC Partners LP in New York, in an interview. "But the real position of competition and the scenery has not changed at all." He recommends selling the shares of RIM.

RIM reports fiscal third-quarter results tomorrow. Sales grew 38 percent to 5.41 billion U.S. dollars, according to the average of 43 estimates compiled by us, helped by new products like the BlackBerry Torch slideout keyboard. Earnings per share is estimated to increase to $ 1.65 from $ 1.10 last year.

new software on QNX playbook is able and willing to be the platform for all future devices from RIM, RBC Capital Markets Mike Abramsky said. However, the onus is on RIM to build the software successfully in the playbook and persuade customers to choose the device, Abramsky, who is based in Toronto and has a "top pick" for RIM, said in a research note.

"Apple has a huge advantage and the proliferation of Android devices are," said Abramsky.

India plans to start field testing a genetically modified

India, the largest consumer of natural rubber, after China, plans to start field testing a genetically modified as it tries to overcome a shortage forecast by industry to increase fivefold in the next decade.

The state-run Rubber Board shall ensure the approval of the states of Kerala and Maharashtra before planting 0.4 hectares, James Jacob, director of the Rubber Research Institute of India, said via email. Trials were cleared last month by the Evaluation Committee of genetic engineering, a group of experts established by the Ministry of Environment, said.

Global automobile manufacturers led by Ford Motor Co. are building plants in the second fastest in the fastest growing economy in Asia where auto sales are projected by the government to double to 3 million by 2015. Bridgestone Corp. and its Indian rivals are spending $ 3 billion in new capacity to meet projected demand by the Association of Automobile Manufacturers tires to increase 10 percent to 106 million tires in the year to 31 March.

"Every country in the world needs natural rubber, vital and strategic industrial raw materials like iron and coal," said Jacob. "Domestic rubber Prescription increase with increasing our GDP, and it appears that is not enough."

rubber trees of the altered gene are resistant to drought and dryness by touching the panel, and have the ability to produce higher yields, even in adverse weather conditions, said Jacob.

Prices in Tokyo, Thailand and China have risen to records this year after heavy rain in the producing countries of low production. In India, prices exceeded Rs 200 per kilo last month for the first time.

India's deficit could rise to 840,000 tons in 2020 to 175,000 tons next year, Vinod Simon, president of the Association of Industries of All India Rubber, said on 2 December. Consumption may increase to 1.89 million tonnes in 2020 from 930,000 tons this year if the economy is expanding at 8.5 percent per year, the group said.

Eggplant

India has said it wants gene technology modified to be part of efforts to increase basic food production, following the success of GM cotton was introduced in 2002. However, the government rejected in February the nation's first gene-modified foods, eggplant or aubergine, after protests from farmers.

GM cotton accounts for 90 percent of the planting of the nation, according to the Ministry of Agriculture. The country has gone from being a net buyer for the second largest producer and exporter.

He urged the CFTC to curb speculation in the commodity trade

U.S. regulators and lawmakers this week are considering rules to curb speculation in the commodity trade, as Wall Street firms delay calls for companies like Delta Airlines Inc. urging strict limits.

Commodity Futures Trading Commission Chairman Gary Gensler is set to appear today before a subcommittee of U.S. agriculture House, in part to discuss the progress of the agency about the rules. Tomorrow, the commissioners will meet in the field.

The CFTC has received hundreds of comments on how to implement a contentious part of the Dodd-Frank financial reform - the limits of the influence of large traders in the markets for crude oil, gasoline, heating oil and natural gas. Commissioners have discussed so-called position limits in at least 75 of the 400 meetings have been held with banks, oil companies, hedge funds and others, according to the website of the agency.

"The speculative bubble in oil prices has specific negative consequences for the real economy," said Richard B. Hirst, Delta's general counsel, in a Dec. 13 letter that encouraged the CFTC to move "aggressively" to limit the number of contracts a single company can hold.

The law gives the CFTC until January to impose restrictions on energy and metals trading, and until April to limit agricultural contracts.

Gensler said last week that the agency will consider the proposed division of position limits between spot month and all months combined. The agency may move "quickly" on the proposal this month in cash, he said.

Sufficient data

The financial sector has recommended that the commission delay the establishment of limits. The asset management group of the Securities Industry and Financial Markets Association, a trade group in New York and headquartered in Washington, said in a Nov. 23 letter that the CFTC first have sufficient data to evaluate the "desirability" of standards.

Morgan Stanley and the Association of Futures Industry, a trade group in Washington, suggested that the Commission set interim standards. CME Group Inc., the largest futures market, pushed the CFTC to set limits to defer until the regulators have "the necessary data to accurately establish and enforce limits."

The commission has position limits in place for other commodities, and legislators and regulators have been debating whether and how to curb energy speculation for more than two years. The focus on the role of speculators was intensified in 2008 when oil prices reached a record $ 147.27.

"We see little merit to the argument that the CFTC has not sufficiently considered the imposition of such limits," said Jim Collura, VP Fuel Institute New England, a coalition of energy providers in the home, in testimony prepared for the hearing House and obtained by us.

"We are disappointed"

"We are disappointed that, despite ample evidence of excessive speculation in commodity markets that some continue to doubt, question and absolutely deny that speculation has been and can never be excessive," said Collura.

The limits are necessary because two decades of market deregulation "led to an opaque market that meets the needs of financial speculators and not protectionist in good faith and customers," said Robert J. Hirsch, president of Hirsch Fuels Inc., a heating oil company in Hauppauge, New York, 19 November in a letter to the CFTC.

Companies such as Goldman Sachs Group Inc., Vitol and Cargill Inc. have teamed up with the CFTC on the rules, according to the website of the commission.

Vulnerable consumers "

"If the Commission does not act in a timely manner or not to adopt strong position limits, markets and consumers will be more vulnerable to commodity prices and excess volatility resulting from speculative trading activity," said William F. Galvin, the chief financial regulator for the state of Massachusetts, in a letter of 09 December.

The hearing of the House will be the first time the agriculture panel debate the financial law, since it was enacted in July and since regulators began writing dozens of regulations. Along with Gensler, Bart Chilton, one of the five commissioners of the agency, is scheduled to testify.

The CFTC must resist pressure "inside and outside the agency" to find a way around the time of execution, Chilton said yesterday in a speech prepared for a conference held by the Americans for Financial Reform, an advocacy organization which includes the work of the AFL-CIO federation.

Terrence Duffy, executive chairman of CME Group, Jeffrey Sprecher, chairman and CEO of IntercontinentalExchange Inc. and Robert Jones, senior vice president of ABN Amro in Chicago Clearing LLC also scheduled to appear before a panel of 18 members.

Swaps loophole

The Bill Dodd-Frank expanded the authority of the CFTC for the derivatives market sales for the first time since the swap was first introduced 30 years ago. Before the law passed, merchants can buy futures on regulated markets or in private could negotiate contracts not covered lookalike.

The so-called swaps loophole allowed traders to circumvent the limits by buying derivatives, which are contracts whose value derives from commodities, stocks, bonds, loans, currencies or linked to specific events such as changes interest rates or weather. Some companies use contracts to fix prices of goods they buy or sell, while speculators may be used to place bets in the markets.

into account the collapse of Amaranth Advisors LLC, a hedge fund in 2006 lost 6.6 billion U.S. dollars in bets on natural gas derivatives. Amaranth amassed a large position in unregulated swaps after being ordered to reduce its position in the regulated market.

The new rules limit the number of contracts that a company can have on both trade and private market transactions while the exemption to cover the commercial risk. The CFTC has not published the rules that define which firms are exempt.

Copper fell for the first time in four days

Copper fell for the first time in four days in New York as a potential reduction of Spain's interest credit rating debts are revived hinder economic recovery in Europe.

Spain's rating may be cut from Aa1, Moody's Investors Service said, amid concern that Greece and Ireland would continue seeking a ransom. Copper also fell as the dollar rose before the forecast data to show growth in U.S. industrial production.

"The reduction potential of the Spanish debt weakened the euro, adding to the downward pressure of the metals," said William Adams, analyst at Basemetals.com in London.

Copper for March delivery fell 6.75 cents, or 1.6 percent, to $ 4.1415 a pound at 7:46 am on the Comex in New York. Copper for delivery in three months declined 1 percent to $ 9,075 a ton on the London Metal Exchange.

LME copper stocks gained 7,050 tonnes, or 2 percent, to 357,950 tons, the largest percentage increase since December 30, 2009, the figures showed daily exchange. Orders for drawing copper in LME stocks or warrants canceled, fell 6 percent, to 19,200 tonnes, the lowest since 06 October.

The U.S. currency gained as much as 0.6 percent against a basket of currencies. A stronger dollar reduces demand for raw materials as an alternative investment and makes metals priced in the currency more expensive in terms of other currencies. The U.S. industrial production probably rose 0.3 percent in November after being unchanged the previous month, according to economists polled by us before the report of the Federal Reserve at 2:15 pm London time.

Tin for delivery in three months on the LME fell 1 percent to $ 26,000 a tonne. Aluminium fell 0.9 percent to $ 2,330 a tonne and nickel fell 0.5 percent to $ 24,387 a tonne. Lead fell 1.9 percent to $ 2,404 a tonne and zinc fell 1.4 percent to $ 2,269 a tonne.

Dynegy Agrees to Be Acquired by companies Icahn for $ 665 million

Dynegy Inc., the U.S. producer third largest independent power, said its board has unanimously approved a bid of 665 million U.S. dollars to be acquired by Icahn Enterprises LP after the company's shareholders rejected a lower bid from Blackstone Group LP.

Icahn companies offer $ 5.50 per share represents a premium of 10 percent of Blackstone's offer of $ 5 per share, Dynegy said in a statement. Agreement also allows Dynegy to continue pursuing a better offer until 24 January. Icahn has agreed not to oppose another buyer if Dynegy receives a higher offer.

Carl Icahn and hedge fund Seneca Capital, major shareholders of Dynegy, opposed Blackstone bid to acquire Houston-based company. Most Dynegy's shareholders voted to reject the deal last month.

Sale of the company at more than $ 4.50 per share within 18 months of the Blackstone offer in November will trigger a payment of $ 16.3 million for Blackstone, according to an agreement with Dynegy.

NRG and Calpine Corp. are the two largest U.S. producers independent power.

The UK is proposing major changes to energy policy in two decades ago, when the coalition government set plans to ensure the aging plants are replaced and met with the climate targets.

Government, David Cameron, is likely to reassert state control over the market-based system introduced by his predecessor, Margaret Thatcher, when submitting proposals to Parliament. The regulator has proposed a "carbon floor" price target to increase the cost of emission of greenhouse gases, encouraging investment in nuclear reactors and wind farms.

The cost of replacing existing facilities and the creation of renewable energy projects will be around 200 million pounds (316 billion), according to a report by Ernst & Young LLP. The government says that existing agreements do not provide the security necessary for utilities to finance new plants. Electricite de France SA and Centrica Plc, which own nuclear plans and a plan, you might benefit from policies that raise the cost of burning coal or gas.

"Not enough time if companies start building and investing now," said Bill Easton, director of European public services of Ernst & Young, in an interview. "Within the next 12 months, the industry should not be looking over their shoulders wondering if the market will change."

The UK is committed to get 15 percent of its energy from renewable sources by the end of the decade and reduce carbon dioxide emissions by 80 percent from 1990 levels by 2050. Achieving this will require as many as 40,000 megawatts of energy projects, low-carbon, according to a report of 07 December the Commission on Climate Change.

"The fragmentation of the market"

"We have a unique opportunity in a generation to rebuild our fragmented, restore investor confidence, and rebuild our plants," said Chris Huhne, the secretary of state for energy and climate change, in a speech on 17 November. "This will be a radical change."

Britain is trying to reduce emissions linked to global warming, while replacing much as a quarter of its existing generation by 2020 as older plants are closed, Huhne said.

power network in Britain was built in the 20th century to move energy from coal in northern England to consumers the power concentrated in the south, according to Robert Gross, head of Imperial College London Centre for Energy Policy and Technology . Existing transmission prices are set in 1990 under Thatcher to reduce energy costs by promoting the generation as close as possible to consumers.

Government Guarantees

Thatcher created the most competitive European electricity and gas markets, privatization of state enterprises, including British Gas, British Energy, National Power and PowerGen. In 1997, the change was down consumer prices up by 20 percent, compared to costs prior to privatization, according to former British Energy Plc, the chief executive, Robert Hawley.

While privatization has remained low energy prices, the scale of investment needed to meet climate change goals and to replace aging plants is so great that it will not happen without government guarantees, according to regulator Ofgem. The global financial crisis, the toughest carbon targets and increasing dependence on gas, have weighed on the finance industry, the regulator said.

Tomorrow's proposals may include capacity payments call, raising a pool of consumers who make payments to the generators of low carbon energy, including nuclear reactors and wind farms at sea, said Easton.

The government may also introduce so-called contracts for difference to cope with the volatility of future energy prices and avoid windfall profits, "said Easton. These contracts are utilities to offset energy prices lower than expected or charge if prices are higher, thus locking in a price and ease concerns that costly projects, only paid off.

Carbon Flat

The Committee on Climate Change proposes to replace the climate change levy to establish a carbon floor is 27 pounds per tonne in 2020. European Union carbon permits closed yesterday at € 14.46 per tonne in Europe ICE Futures in London.

A flat carbon assets would benefit nuclear and renewable energy, including by raising the cost of other forms of generation, according to analysts at the corporate parent of Capital LLP. Such a policy is likely to adversely affect companies such as Drax Plc, owner of Western Europe's largest coal fired power station, they said.

Drax has fallen 8.8 percent this year to 378.3 pence in London trading, valuing the company at 1.4 billion pounds. Centrica has increased by 17 percent this year to 329.7 pence at 11:07 am in London, making it one of the performers of the first level in the World Europe Index Income, up 16 percent this year. E. ON AG and RWE AG, German utilities that operate on coal and gas generation in the UK are lagging behind the index.

Nuclear Renaissance

Britain's 19 operating nuclear reactors account for 18 percent of the country's energy generation. The government approved eight sites for new facilities in October. EDF, Centrica, Scottish & Southern Energy Plc, based Iberdrola SA in Spain and France, GDF Suez SA, RWE and E. ON announced plans for about 19,000 megawatts of new reactors until 2050. Utilities may have to spend as much as 6 billion pounds in each reactor in Britain, according to Energy Minister Charles Hendry.

The UK generates about half its electricity from gas and is forced to import increasing amounts of their reserves decrease. UK market gas monitoring makes it possible wholesale costs at any time. That transparency can allow other nations to make a higher bid for the supply of gas, leaving them vulnerable to shortfalls in Britain.

CLP, NSW Origin buy energy assets for $ 5.3 billion, outbidding AGL Energy

CLP Holdings Ltd., Hong Kong's largest power supplier, and Origin Energy Ltd. won the assets of the electricity in the state of New South Wales in Australia for $ 5.3 billion, outbidding AGL Energy Ltd. to get about 3 million customers.

TRUenergy Holdings Pty, a unit of CLP is the purchase of assets including EnergyAustralia dealer for 2.04 billion U.S. dollars (2020 million dollars), the state government said today. Source of earnings Country Energy and Integral Energy, plus the right to sell the production of state-owned power station Eraring, for 3.25 billion U.S. dollars.

The purchases will double the number of retail customers in Australia CLP has 2.8 million, while Sydney-based Origin said it will become the largest energy supplier with a jump of 50 percent over users. The agreement is the culmination of a 12-year process has caused division in the state and contributed to the departure of two prime ministers since 2008.

"Many people said this day would never come," said Eric Roozendaal, Treasurer of the country's most populous state, in a press conference today in Sydney.

Origin rose 1.8 percent to $ 17.10 in Sydney for the 4:10 pm closing. AGL rival power supplier, fell the most in almost two years after the night saying that his failed attempt, fell 1.1 percent to $ 14.91, extending the previous session's 4.9 percent fall. The S & P / ASX 200 was little changed. CLP fell 1.1 percent to $ 63.25 in Hong Kong in Hong Kong, the Hang Seng index city fell nearly 2 percent.

"Cold Light of Day"

AGL said it will intensify a campaign to lure businesses out of competition after missing the assets. The Sydney-based company plans to more than double its customer base in New South Wales, adding up to 500,000 electric bills over the next three years. AGL said its state property offers fell well short of the winning bids.

"It's always exciting to win, but when we look in the cold light of day it would have had to pay to acquire the business, I have no regrets at all," AGL CEO Michael Fraser said in a conference call.

New South Wales said the sale will strengthen its finances, increase competition in the electricity market and no financial resources to schools, transport and hospitals.

The state is still in talks over the possible sale of rights to trade in energy produced by Macquarie Generation and Delta Costa, known as "gentrader" contracts, and intends to complete the transactions in February, Roozendaal said. New South Wales aimed to complete all operations at the end of the year.

Midnight Agreement

The sale has been confronted by the continuation of "challenges", Peter Achterstraat, the Auditor General, has said. Nathan Rees was overthrown and replaced as prime minister Kristina Keneally A year ago, partly because of divisions within the ruling Labour Party on the transaction. Rees replaced Morris Iemma, in 2008, after failing to win approval of its plan to sell assets.

Discontent over the process continued until the agreements were completed about midnight last night. Eight directors leave the board of state power involved in the sale after refusing to take a decision stating that the trading transactions "non-market" Roozendaal said.

The sale of energy "is carried out to ensure that taxpayers would not be responsible for the construction of future power generation," he said. "We have. We wanted a more competitive retail market. We have succeeded. The retention value of these assets is much lower than what we have received from them."

Origin said it is paying $ 1,282 for each customer. That is "more or less in line with previous agreements," said Xavier Grunauer, Sydney-based analyst at Nomura Holdings Inc.

"Golden Opportunity '

"I do not think the market is very concerned about the price," he said. "It's a golden opportunity to grab market share. The key question is how far to increase."

Origin, also continuing with plans for a liquefied natural gas project in Queensland state may try to raise up to $ 1,750,000,000 sales actions according to Grunauer.

Country Energy and Integral Energy together were valued at about U.S. $ 1.8 billion, while the Eraring assets worth $ 1.1 billion, said Marie Miyashiro, a Sydney-based analyst at Citigroup Inc . She EnergyAustralia valued at $ 1.3 billion.

"I think TRUenergy is the winner, even though they have taken a substantial risk to pick up customers aggressively pursued by others," said David Leitch, a Sydney-based analyst at UBS AG in Sydney, by telephone today day. "They become a very viable third force in Australia."

EnergyAustralia buy and sell rights to energy production will join Western Delta HK $ 389,000,000 ($ 50 million) annual net income of CLP, 4 percent of the estimated gain for the year 2011, Citigroup estimated a report. The agreement has a stake in the Australian market of CLP to about 20 percent, he said.

TRUenergy sales

TRUenergy a turn out is more attractive after the transaction, according to Citigroup. CLP, which also bought three development sites power station has been considering an initial public offering in Australia for TRUenergy, CEO Andrew Brandler, said in September.

Origin, which will grow to 4.6 million customers, is the acquisition of the retail of U.S. $ 2.3 billion and pay $ 950 million in assets Eraring he said. Operations are expected to be completed on 1 March.

Origin plans to finance the deal with the new debt is expected to be partly refinanced through a stock offering in 12 months, he said.

The Sydney-based company has organized a signed 2.2 billion U.S. dollars a bridge loan due in one or two years, and a A $ 1,100,000,000 loan to three to five years, also signed, to be sold to other lenders early 2011, according to a statement submitted to the Stock Exchange of Australia.

CLP Australia Finance signed a 1.6 billion U.S. dollars of loans for the acquisition of May 2012 tour.

Chinese consumers are more concerned about rising prices at any time in the last decade

Chinese consumers are more concerned about rising prices at any time in the last decade, underscoring the pressure on policy makers to step up efforts to counter inflation running at a maximum of two years.

A price satisfaction index fell to 13.8 this quarter, the lowest level since data began in the fourth quarter of 1999, the central bank said on its website today.

The authorities have taken place outside of the addition of October to raise interest rates, rather than ratchet up bank reserve requirements and the use of tools such as the sale of food reserves to cope with inflation. The Ministry of Commerce said today that "closely monitored" prices during the next quarter, especially during holiday periods, and maintain the release of the pork stores and sugar.

"Normalization of interest rate is the best option," said Yao Wei, an economist at Societe Generale SA in Hong Kong. Inflation is "eroding the purchasing power" and encourage consumers to shift savings into assets such as stocks, he said.

The benchmark rate for one-year deposits stands at 2.5 percent and the interest rate is 5.56 percent rise in October after a quarter point.

The Shanghai Composite Index of stocks closed 0.5 percent, the first decline in four days, the concern that accelerating inflation will spur more monetary tightening.

Wealth Gap

China needs to "urgently" to stabilize prices to safeguard people's living standards, the National Development and Reform, the national planning agency, above, said on its website today after a meeting in Beijing of the regional heads of the office prices.

The ruling Communist Party seeks to avoid the higher prices and a widening gap between rich and poor lead to riots and public discontent.

November 5.1 percent annual gain in consumer prices was the biggest in 28 months, with rising food costs by 11.7 percent, also the most since July 2008.

"There is a widespread belief in China that the actual CPI inflation is higher than the data indicated," said Shen Jianguang, chief China economist at Mizuho Securities Asia Ltd. in Hong Kong. "The low-income people feel strongly about it."

In total, 74 percent of households considered prices too high, up to 15.6 percentage points from the third quarter, said the central bank. Its fourth-quarter survey was 20,000 households in 50 cities.

Price controls

Inflation expectations are "intensifying," said the central bank, with 61 percent expect price increases in the next quarter. In the previous survey, the proportion was 46 percent.

The government has pledged to use price controls on daily necessities when needed. These measures are in force in the southern city of Kunming, where retailers such as Wal-Mart Stores Inc. and Carrefour SA have been told to report any increase in price expectations.

Over 80 million people need food aid during the winter and spring after natural disasters, the government said last month.

Capital inflows may hinder government efforts to cool prices of consumer goods and real estate market by adding liquidity. Foreign direct investment in China rose 38 percent in November from a year earlier to $ 9,700,000,000, the Ministry of Commerce, said in a statement today in Beijing.

Asset markets

The central bank survey said that inflation may accelerate to encourage people to change money into property and stocks of savings accounts, hampering efforts to prevent asset bubbles in real estate in some cities. Of those surveyed, 45 percent preferred to put money into investment, compared with 39 percent in the third quarter. The interest rate on savings fell.

government of Prime Minister Wen Jiabao pledged to do more to stabilize prices after a financial planning conference concluded in Beijing on 12 December.

China has set an inflation target of 4 percent next year, state television reported yesterday, citing the National Development and Reform.

In the central bank survey, 76 percent of households said that property prices were unacceptably high. That was the highest proportion since the question was first included in the first quarter of 2009.

The high cost of housing in China is widening the wealth gap, Li Shenming, deputy director of China Academy of Social Sciences, said in Beijing on 8 December. China's Gini coefficient, a measure of inequality, reached 0.47 in 2009, surpassing the mark of 0.4 used as an indicator of social unrest, according to World Bank data.

Meanwhile, an indicator of the economic prospects of China rose for the sixth month of October, up 0.9 percent to 152.1, the New York-based Conference Board said on its website today.

A measure of the confidence of lenders in the fourth quarter fell to its lowest level in a year, another central bank survey showed today. About half of the executives of financial institutions expect a tighter monetary policy in the next quarter, according to the survey.

The strongest signals Fed will not slow economy stimulus of $ 600 billion

Responsible for the Federal Reserve said that signs of economic strength not deter them from injecting money into the financial system as long as unemployment remains high.

The Federal Open Market Committee said yesterday after their last meeting in 2010 that growth is "insufficient to reduce unemployment" and inflation has "followed a downward trend." U.S. central bankers said a plan to buy $ 600 billion of bonds through June and renewed his promise of an "extended period of low interest rates.

Stocks rose and Treasuries fell as a continuation of the Fed's stimulus and sales better than expected retail growth increased prospects for next year. Policy makers led by Chairman Ben S. Bernanke, are challenging the Republican criticism that his policy of fuel inflation and bubbles in asset prices to focus on reducing the unemployment rate has remained above 9.4 percent since May 2009.

"The clear message is that there is rethinking the program, regardless of backtracking," said Jim O'Sullivan, chief economist of MF Global Ltd. in New York. "Arguably, played down what had clearly been growing better data."

Signs of economic strength, combined with the prospects for additional fiscal stimulus, have pushed Treasury yields higher, with the 10-year yield rising to 3.47 percent yesterday from 2.57 percent on 3 November the day he announced the second round of easing. The Dow Jones Industrial Average reached its highest level since the September 15, 2008 the bankruptcy of Lehman Brothers Holdings Inc., to close at 11,476.54 yesterday.

U.S. dollar rises

The dollar has risen 3.9 percent against a basket of six currencies, while inflation expectations for the next five years, as measured by the rate of equilibrium between nominal bonds and inflation index, rose to 1, 63 percent yesterday from 1.47 percent on Nov. 3.

The statement from the Fed must "lead market participants to focus on the unemployment rate to the extent relevant to determine whether the economy is recovering fast enough," said Dean Maki, chief U.S. economist Barclays Capital in New York. "The economic data have clearly been improving and the Fed may have sounded far more optimistic than I did."

December 3 A Labor Department report showed the unemployment rate rose to 9.8 percent from 9.6 percent, the economy created only 39,000 jobs in November. Other reports in recent weeks, said an improving economy, such as a larger-than-expected retail sales, the 16 consecutive months of expansion in manufacturing and consumer confidence to a maximum of six months .

'Restriction of credit "

The FOMC statement said that "household spending is increasing at a moderate pace, but remains constrained by high unemployment, modest income growth, lower housing wealth and the credit crunch."

Fed officials yesterday left its target for the federal funds rate, which covers interbank loans overnight, in a range from zero to 0.25 percent, marking two years of the policy. The central bank is likely to wait until the first quarter of 2012 to increase the rate, based on the median estimate of 8.2 in December poll of economists by us.

The $ 600 billion of purchases are in addition to the Treasury's long-term the Fed is buying for reinvestment of maturity of the mortgage debt, a policy that began in August. June combined purchase of a total of $ 850,000,000,000 to $ 900 million, or $ 110 billion per month, the Fed said Nov. 3. Political leaders reiterated Thursday that he will "regularly review, the purchase program and adjust as necessary.

The central bank has bought 114.1 billion U.S. dollars of Treasury bonds since 12 November, under the program called Queen Elizabeth 2 for the second round of so-called quantitative easing. The Fed bought $ 1,700,000,000,000 debt and mortgage bonds in the first round until March 2010.

The majority disagrees

Kansas City, Thomas Hoenig, president of the Fed, the head of the longest-serving policy, voted against the decision of the FOMC for the eighth straight time and reiterated its view that "continued high level of monetary flexibility "may" destabilize the economy. " He tied the record of former Governor Henry Wallich in 1980 for most in a year dissents.

"Importantly, only recognition of the strong economic data and upward revisions to 2011 from fiscal policy was at odds with Tom," said Diane Swonk, chief economist at Mesirow Financial Inc. in Chicago. "It would take a lot of good economic news for Bernanke to change your mind" about the stimulus plan.

The list of voting members of the FOMC will change next month to include policy makers have expressed doubts about the asset purchase program.

They expressed concern

President of the Minneapolis Fed Narayana Kocherlakota, Richard Fisher of Dallas and Philadelphia, Charles Plosser, have expressed concern about the effectiveness of the return of the Fed of quantitative easing, although Kocherlakota said in a speech on November 18 that supports policy as "a step in the right direction."

Fed President Charles Evans of Chicago, also will become a voting member, said in October that the central bank would buy securities on a large scale in several times to carry out its preferred strategy to increase inflation temporarily.

The lawmakers said in their statement today they need to guide the economy more in line with its mission the Congress shall determine.

"The unemployment rate is high, and measures of core inflation are relatively low, compared to the levels that the Committee of judges to be consistent in the long term, with its dual mandate," the Fed said, repeating the language the statement last month.

Slower

Inflation excluding food and fuel costs, as measured by the consumer price index for personal expenses, decreased to 0.9 percent in October, the slowest pace since records began in 1960. Central banks prefer a long-term rate of 1.6 percent to 2 percent for core PCE indicator call.

Republican lawmakers, including Rep. Mike Pence Indiana and Tennessee Sen. Bob Corker, want to get rid of half the Fed's legislative mandate that focuses on the maximum use to focus on price stability alone. Texas Rep. Ron Paul, author of "End the Fed," is chair of a subcommittee that oversees the Fed next year.

With the increased political pressure, "which will be much more noise and controversy over the policies of the Fed," said Julia Coronado, chief economist for North America at BNP Paribas in New York.

"This is the time Bernanke Volcker, when you have to engage in policies that are unpopular, but what he thinks he has to do for the good of the economy," he said. Paul Volcker, Fed chairman from 1979 to 1987, rising interest rates as high as 20 percent to tame inflation rate reaching 15 percent.

Spanish government bonds fell for an eighth day

Spanish government bonds fell for an eighth day after Moody's Investors Service said it may cut the country's credit rating, citing a possible fight for the government to fund itself next year amid losses at banks.

The decline pushed the yield 10-year Spanish to within nine points of the highest since September 2000. Portuguese bonds fell after costs rose by 500 million euros (664 million dollars) the sale of Treasury bonds. Spain plans to sell bonds tomorrow.

"The rating action reminds the market and investors that the fundamental problems have not been mitigated by the purchase of the European Central Bank bonds," said Michael Leister, a bond analyst at WestLB AG in Dusseldorf. "Until the supply is off tomorrow, it is expected that Spain will continue to underperform."

The Spanish production of 10-year note rose two basis points to 5.58 percent after 11 hours in London. The guarantee of 4.85 percent, due October 2020 fell 0.16, or 1.6 euros per 1,000 euros (1,329 dollars) nominal value of 94.56. The German bund yield was little changed after rising to 3.07 percent, the most since May 4.

Spain's debt could increase because of "the cost of recapitalizing the banking sector, while limited control over regional finances erode the central government's ability to improve their finances," Moody's said in a statement.

"Moody's also wants to emphasize that Spain continues to be regarded as a claim much stronger than other countries with problems of the euro area," said analyst Kathrin Muehlbronner in the report. "Review of Moody's therefore most likely conclude that Spain's rating will remain in the range ca."

Portuguese Sale

Moody's does not see a Spanish rescue plan as "probable" but "can not be ruled out," said Muehlbronner.

Portuguese 10-year yields rose 11 basis points to 6.66 percent. Borrowing costs increased 3.4 percent in the bill of sale today, from 1.82 percent last time the securities were sold on 3 November. The values attracted bids worth 1.9 times the offer, compared to 2.2 in November.

Spain lost the top AAA rating from Moody's in September as leaders of the euro-region struggled to contain the debt crisis. Spain is raise taxes, cut wages and privatization of industries to persuade investors that they can avoid a bailout. Ireland last month became the second euros for ransom after Greece requested assistance in April.

Spanish bonds fell yesterday after the country was forced to pay more in a sale of accounts 12 months and 18 months. Spain is due to issue 3 billion euros of 4.85 percent for 2020 and 4.65 percent of the 2025 debt tomorrow. It is the only European country except Italy region plans to sell bonds for the rest of this year.

Yields of Ireland, Portugal

Belgian bonds also fell yesterday after Standard & Poor's said that "the prolonged political uncertainty" could hurt your credit score. Belgium 10-year bonds were little changed today, with the yield up one basis point to 4.07 percent.

Greek 10-year yields rose seven basis points to 12 percent. Greek unions grounded all flights to and from Athens, kept the ferries docked at ports and public services closed today in protest against wage cuts that the government adheres to the terms of an international bailout.

Ireland 10-year yields rose two basis points to 8.45 percent.

EU leaders begin a two-day summit at 5 pm tomorrow in Brussels to focus on the permanent system to combat the crisis that occurred in 2013.

Germany is opposed to expanding the government-funded assistance beyond the emergency fund of EUR 750 billion set in May, while ECB President Jean-Claude Trichet, said more money must be made available to end the debt crisis instead of relying on the central bank's program of gift vouchers.

"Maximum flexibility '

"We're calling for maximum flexibility and capacity, quantitatively and qualitatively," Trichet told reporters in Frankfurt, in remarks released yesterday.

German bonds returned 5.5 percent this year, compared with 5.1 percent for U.S. Treasuries and 5.2 percent for UK gilts, according to indexes compiled by us and the European Federation of Financial Analysts Societies.

Spanish bonds lost 5.3 percent, while the debt of Ireland gave investors a loss of 11 percent and 7.2 percent Portuguese bonds, indexes show.

Real Estate Evita "catastrophe"

investor confidence in U.S. commercial property is the highest since the 2007 market peak, a sentiment reflected in the bonds of real estate companies that own everything from the skyscrapers of New York to California malls.

Yields on debt securities issued by real estate investment trusts average of 210 basis points more than Treasuries, at least from the November 12, 2007, according to data from Bank of America Merrill Lynch index. The debt has returned 13.2 percent this year, outpacing an 8 percent increase in investment grade bonds.

The debt of the companies that own offices, shopping centers, apartments and warehouses has joined as a lack of demand spurs development of new "little by little," according to billionaire investor Sam Zell, chairman of Chicago-based Residential Capital apartment owner. The Moody's / REAL Property Price Index has changed little since October 2009 after falling 45 percent in two years.

"If there is a new offer, then the disaster that everyone was hoping not going to happen," said Zell, 69, in a telephone interview. "Commercial real estate is not suffering and is in fact getting better," said Zell, the founder of Equity Office Properties Trust, the largest U.S. owner office before Blackstone LP bought in a record leveraged buyout in 2007.

REITs have issued 17.7 billion U.S. dollars of bonds this year, the most since 2006. The sales helped to refinance existing debt and strengthen balance sheets stabilize incomes and employment, debt-research firm CreditSights Inc. said in a report last month.

No Stone

"Real estate is all about supply and demand," said Zell. "We have not built anything in this country since July '07. We're not building anything right now."

Elsewhere in credit markets, the extra yield investors demand to own company bonds rather than similar-maturity government debt remained unchanged at 171 basis points, or 1.71 percentage points, according to the Bank of America Merrill Lynch Corporate Market general index. The average yield of 4.021 percent, the highest since June 22.

The cost of protecting corporate bonds from default in the U.S. fell for the tenth consecutive day yesterday, the longest streak of declines since 2006.

Securities of Wal-Mart Stores Inc. sold in October fell to its lowest level since they were issued as debt offerings fell to less than about three weeks. Leveraged loan prices climbed to the highest in almost a month, while junk bond spreads matched the lowest point this year.

Coverage against loss

The Markit CDX North America Investment Grade Index, which investors use to cover losses on corporate debt or to speculate on creditworthiness, fell 0.6 basis points to 85.8 basis points from New York 18:54 yesterday, the lowest since Nov. 5, according to index administrator Markit Group Ltd. The index has fallen from 99.4 in late November. The indicator fell for 10 consecutive days in the period ended October 26, 2006.

The Markit iTraxx Crossover Index of 50 European companies swaps mostly junk rating fell 2 basis points to 237 today, the lowest since November 09.

Swaps credit-default tend to fall as improving investor confidence and rising as it deteriorates. Contracts pay the buyer face value if a borrower defaults on its obligations, less the value of the defaulted debt. A basis point equals $ 1,000 annually on a contract protecting $ 10 million of debt.

Federal Reserve chairman, Ben S. Bernanke said yesterday the central bank maintains its plan to buy $ 600 billion of Treasuries in June to boost the economy and reduce unemployment.

"Do not fight the Fed," said James Parascandola, head of credit derivatives operations of Holdings Ltd. MF Global in New York. "Stocks are rising, credit spreads get tighter, that is the environment."

Most traded bonds

Bond New York, Citigroup Inc. were the most actively traded U.S. corporate securities by dealers, with 125 transactions of $ 1 million or more, according to Trace, the bond information system in the prices of the Financial Industry Regulatory Authority.

Wal-Mart for $ 1.75 billion of 3.25 percent securities due in October 2020 fell 1.3 cents to 92.6 cents, monitoring data show. The notes of Bentonville, Arkansas-based company performance 70 basis points more than Treasuries of similar maturity, according to Trace. The debt was issued at 99.619 cents on the dollar, with a spread of 78 basis points more than the benchmark.

Financial companies led by NCO Group Inc. sold 747 million U.S. dollars in U.S. debt, the lowest volume of sales since November 26, when the expedition stopped after the Thanksgiving holiday.

CNO sells bonds

CNO, the insurer formerly known as Conseco Inc., sold $ 275 million of 9 percent notes due in January 2018 to yield 626 basis points more than Treasuries of similar maturity.

"We saw a lot of today's broadcast and there was really no reason to hit the market," said Guy LeBas, chief fixed income strategist and economist at Janney Montgomery Scott LLC in Philadelphia. "There is no incentive to enter the kind of volatility that a statement from the Fed can invite."

The Barclays Capital Global Aggregate Bond Index lost 0.28 percent this month, cutting profit this year to 3.9 percent.

In the loan market, the Standard & Poor's / LSTA U.S. leveraged loan 100 Index rose for a sixth day, gaining 0.15 cent to 92.32 cents, the highest since Nov. 15.

The index tracking the 100 largest dollar loans first lien leveraged. leveraged loans and junk bonds are rated below Baa3 by Moody's Investors Service or below BBB-by S & P.

The high-yield debt

The extra yield investors demand to own high-yield debt fell 16 basis points to 542 basis points, matching the lowest level this year set April 26, Bank of America Merrill Lynch index data show. Debt spreads have fallen 80 basis points this month.

In emerging markets, the relative yields fell 12 basis points to 220 basis points, the lowest since December 26, 2007, according to JPMorgan Chase & Co. index data. The indicator has fallen 52 basis points this month, reversing a profit of 30 basis points in November.

REITs were beaten in 2008 by falling property prices and declining employment and incomes fueled by the worst recession since the Great Depression. The bonds lost 29 percent this year on average, as were extended to 1383 points in December 2008 after credit markets seized.

The price of the bond debt over similarly qualified REIT has removed the incentive for investors to buy, said Thierry Perrein, senior analyst at Wells Fargo & Co. in Charlotte, North Carolina.

Rally Over

"The game is over," said Perrein, in October cut its rating on the debt to "market perform" from an "outperform" rating is assigned in May 2009.

"If you are involved now, they kind of missed the rally," he said.

REIT debt, which had won for 10 consecutive months in the longest winning streak since 2001, fell 2.67 percent this month, the index data show. That compares with a loss of 2.34 percent on investment-grade debt and a gain of 0.92 percent in high yield bonds.

Improved forecasts denies investors, including the interiors Real Estate Group Inc. Vice President Joe Cosenza commercial real estate market that had more to fall.

'Double-Dip "

In an interview in the office of LP in Chicago in July, Cosenza said a "double dip" in the commercial real estate market may have reached as early as September.

The change is being driven in part by the relatively thin list of distressed properties are for sale and rebound faster than expected in fundamentals such as rents and vacancy rates, according to Newport Beach, California , based in Green Street Advisors, an independent real Private research firm.

HCP Inc., the largest U.S. REIT health care market value, said on the night of Dec. 13 it would pay 6.1 billion U.S. dollars for 338 nursing homes in UNHCR Inc. ManorCare Carlyle Group in the biggest REIT deal in three years.

The acquisition is "a good example of public REIT purchase of private equity firms looking to profit on investments a few years ago," said Craig Guttenplan, a London-based analyst at CreditSights, who recommends buying the REIT debt.

Boston Properties

Boston Properties Inc., the U.S. office REIT led by Mortimer Zuckerman, and Toledo, Ohio-based Health Care REIT Inc. was $ 2,630,000,000 of bond sales for the industry in November, the highest since March.

Sales of bonds linked to commercial real estate loans are beginning to recover as well. About 10.6 billion U.S. dollars of debt issued this year, up from $ 3.4 billion in 2009. The issue may reach $ 45 billion in 2011, according to a November 24 report from JPMorgan.

Americold Realty Trust, an operator of stores owned by Ron Burkle's Yucaipa Cos., sold $ 600 million of bonds backed by commercial debt, mortgages, a person familiar with the deal said on December 9. The offer was guaranteed by cold storage, compared with recent transactions that have been supported mainly by shopping malls and office buildings.

U.S. vacancies apartment fell for the first time in nearly three years in the third quarter, suggesting the trend of people traveling with family or friends may fall, New York, research firm Reis Inc. said.

Less vacancy

Vacancies in U.S. district Central Business Office declined for the second time in the third quarter, reaching 14.7 percent compared with 14.8 percent in the last three months, the tenants signed leases additional space, according to agent Cushman & Wakefield Inc.

The average rent per square meter of REITs operating in the central business districts, including Boston Properties and Vornado Realty Trust, the increase in the third quarter, while declining REIT focused on suburban properties, the As Highwoods Properties Inc. and Mack-Cali Realty Corp., according to CreditSights report in November '22.

"The non-urban office buildings could be a good way to ever rent again, but all in New York and other cities 24 / 7 continues to improve every day," said Zell.

World Cup Mantega Push to Strengthen Local Bond Market

Brazil's local corporate bond market is not providing the necessary funding to help pay the 955 billion reais (562 billion) for infrastructure projects, prompting the government to accelerate reforms to extend credit.

Companies in Latin America's largest economy raised 41 billion reais this year in the local bond market, up 48 percent from the year 2009, according to the Brazilian capital markets known as Anbima. The emission lags behind Russia's 27 billion and 163 billion U.S. dollars China. Only India, at $ 18 billion, has fewer than corporate debt issuance between the largest developing economies, or BRIC.

The Finance Minister Guido Mantega, who shall hold office under President-elect, Dilma Rousseff, is set to raise awareness of measures today to lower borrowing costs and increase long-term financing. The government plans to cut funding of the state development bank by 50 percent next year to wean companies subsidized loans and reduce the world's second highest interest rates adjusted for inflation. Brazil is to increase spending on infrastructure as it prepares to host the 2014 World Cup and the Olympic Games in 2016.

"Brazil needs large infrastructure investments, and the government has been noted a reduction in state funding," said Augusto Lauro Campos, superintendent of credit analysis SulAmerica Investimentos in Sao Paulo, which manages $ 10 billion of assets. "There could be a migration to the capital markets, encouraging capital markets through bond."

"Financial Modernization"

Mantega may announce a number of "financial modernization" measures today intended to stimulate long-term debt, investment in infrastructure and housing finance and construction, according to a person familiar with the matter who declined to be identified because he was not authorized to speak publicly.

Ramiro Alves, Minister of Finance official press in Brasilia, did not respond to an e-mail request seeking comment.

Rousseff reduce government offered loans to BNDES development bank as the state is known, from 104.7 billion reais in 2010, Mantega said 30 November. Bank lending, which provides subsidized loans for long-term projects, is helping to push inflation to 5.63 percent, the highest since February.

BNDES, with headquarters in Rio de Janeiro, gave 171 billion reais of new loans in the 12 months through October, a jump of 33 percent over the same period last year, according to the website of the bank. BNDES loans more than doubled to Brazilian companies to 137.4 billion reais last year, up from 72.2 billion U.S. dollars worldwide provided by the World Bank in the fiscal year ended in June.

Interest Rates

The yields of future interest rates indicate traders are betting the central bank will raise the benchmark rate by 25 basis points, or 0.25 percentage points to 11 percent in January. adjusted for inflation rates in Brazil are second to Croatia from 46 countries tracked by us.

"We're going to have new credit instruments," said Mantega in an interview with Globo TV News last month. "It will be easier for the private sector to borrow more. The private sector will have a stronger ability to make long-term loans, BNDES replacement."

The government is betting on new measures and the reduction in BNDES financing will boost the country's capital market local SulAmérica Campos said.

A new rule that allowed companies to sell debt more quickly through private sales rather than public offerings helped drive up bonuses this year. These offerings 54 percent of sales to private credit in 2010, compared to 46 percent through November last year, according to headquarters in Sao Paulo Anbima. The average maturity of domestic corporate bonds rose to about five years from four years in 2010, the data show Anbima.

'Big improvement'

"This is a big improvement is from 2009," said John de Biase, director of capital markets debt Itau Holding Unibanco SA, Brazil's largest bank by market value. "The entire spectrum of debt instruments will increase from year to year, or at least the next five years," he said in a telephone interview from Sao Paulo.

The government must find ways to increase trade in the local market, currently dominated by a small group of pension funds, Biase said.

Even with the new measures, firms still need to borrow from the state development bank, said Huang Kuo seen, a hedge fund manager in the Grau Gestao of Ativan, which manages 250 million reais in Sao Paulo.

The measures "will complement" seen in a telephone interview. "Change is difficult. It's easier when an established company with an established project long term. The market will continue to need the BNDES."

Yield spread

Brazilian companies sold a record $ 38.7 billion of bonds overseas this year, up 74 percent from 2009, as near-zero interest rates in the U.S. and Europe caused the demand for emerging market assets increased performance.

The extra yield investors demand to own Brazilian dollar bonds instead of U.S. Treasuries widened 2 basis points to 168 at 6:19 am New York time, according to JPMorgan Chase & Co.

The cost of protecting Brazil's bonds against default for five years has changed little in 111, according to CMA prices. Swaps credit-default pay the buyer face value in exchange for the underlying securities or the cash equivalent of a government or a company fail to adhere to its debt agreements.

Yields on Brazil's overnight rate for futures contracts in January 2012 rose 1 basis point to 11.84 percent.

The real fell 0.1 percent to 1.6989 per U.S. dollar.

The government infrastructure R 955 billion spending plan will encourage investment in urban transport, sewerage, housing and electricity and water distribution.

"There will come a time when the banks, together with BNDES, will not be able to provide 100 percent debt required for these new infrastructure projects in Brazil, Itaú Biase said. "At this point, you need to bring more money into these projects."

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