China's stocks fell driving down the benchmark index of the sixth of seven weeks

China's stocks fell, driving down the benchmark index of the sixth of seven weeks, the refers to a cash deficit will be more difficult for companies to borrow for expansion and new regulations in Beijing can limit sales car.

SAIC Motor Corp. fell to its lowest level in four months after the capital of China announced measures to restrict the number of new vehicles. Baoshan Iron & Steel Co. led declines for steelmakers in the prospect of falling car
demand

would curb earnings. Greenland Yunnan Biological Technology Co. shelter rate for small businesses amid speculation of higher ratios of the banks' reserve requirements, have led to a liquidity crisis.

"Do not be a surprise if the government announces the reserve ratio, or more increases in interest rates later this year as inflation control is a top priority for decision makers at the time," said Wu Kan, an administrator fund Dazhong Insurance Co., which oversees $ 285 million. "The market is also suffering a liquidity crisis near the end of the year and remain fluctuating in the short term."

The Shanghai Composite Index, which remains the largest stock exchanges in China, fell 20.1, or 0.7 percent, to 2,835.16 at 3 pm The index fell nearly 2 percent this week. The CSI 300 Index lost 0.8 percent to 3,162.96. The CSI SmallCap 500 fell 1.5 percent to lowest close since Dec. 9.

The Shanghai Composite Index, the worst performer among the major benchmarks in Asia this year, has dropped 13 percent in 2010 on concern the central bank will raise interest rates for the second time since October as part of strengthening policy measures to curb inflation that reached 28 months last month.

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SAIC Motor lost 2.3 percent to 15.63 yuan, the lowest close since 26 August. Beiqi Foton Motor Co. fell 4.5 percent to 24.88 yuan.

Beijing has introduced measures such as limiting the number of new passenger vehicles in China's capital to alleviate the congested roads. The government will issue a new quota of 240,000 vehicle license places through a lottery system next year, with 88 percent allocated to individual buyers, according to a statement released yesterday.

Nomura International cut its forecast for 2011 sales of passenger vehicles by 3 per cent to 13.4 per cent to reflect the possible effects of policy, Hou Yankun Nomura analyst said in a report released today.

"These measures will have a substantial impact on automobile sales," Hou said in the note. "The policy clarification catalysts central and local governments."

Baoshan Iron & Steel, the largest steel company publicly traded in China, fell 0.2 percent to 6.61 yuan. Wuhan Iron & Steel Co. lost 0.5 percent to 4.45 yuan.

Aluminium stocks

Aluminum Corp of China Ltd., the country's largest manufacturer of metal, fell 2.6 percent on speculation the shortage of power supply can reduce the production and income. Yunnan Aluminum Co. dropped 1.7 percent to 12.14 yuan.

Aluminum smelters in China could face a "shortage" of power that prevents them from ramping up production in the first quarter of 2011, helping to buoy stock prices and further declines, according to Macquarie Group Ltd.

"Our recent visit to Shanxi and Henan provinces suggested the power supply would still be in severe shortage during the winter due to tight supply of coal," analyst Bonnie Liu wrote in a report released today. Aluminum prices can be obtained in the next three or four months, he wrote, without giving a forecast.

Ministry of Finance of China sold 16.76 billion yuan (2530 million dollars) of securities to 91 days, below the planned target of 20 billion yuan, according to traders lead underwriters of public debt, which asked anonymity.

Cash crunch

The government has ordered banks to increase their reserve requirements six times this year to curb loan growth and prevent asset bubbles. The interest rate of seven days, which measures the cost of loans between banks, rose 150 basis points to 5.67 percent, the highest since October 2007, according to yesterday

SmallCaps indicator fell for the third consecutive day, the longest losing streak since September. Even with the fall of this week, the index trading 49.6 times reported earnings, compared with 18.8 times for the CSI 300. Yunnan Greenland sunk by the limit of 10 percent per day for a second day to 30.89 yuan, adding to a 22 percent slide this week. Tianjin Zhonghuan Semiconductor Joint-Stock Co. fell 8.2 percent to 25.85 today.

China property stocks can recover 25 percent from the current level until mid-January, in the absence of new measures to curb housing prices, according to Guotai Junan Securities.

The rebound may increase the valuations of developers to 13 times estimated earnings for 2011 from the current 10.5 times, and Pinke Sun Jianping Li, brokerage analysts wrote in a report released today. Investors should not have high expectations of the policy of detente curbs in the short term due to rapid price increases in the cities of second and third level of China, the report said.

Outlook Actions

China Vanke Co., the biggest developer, added 1.9 percent to 9.01 yuan. Gemdale Corp. climbed 5 percent or 6.58 yuan.

The measures of the policy tightening will be "largely by" next spring, prompting a rally for equities in the second half, according to Donald Straszheim, China research director at International Strategy & Investment Group .

"China's economy continue to grow rapidly in 2011 and inflation will fall," he said in an interview. "The tightening of monetary policy will be largely in the spring of the year. This will create a" buy "for the second half of 2011, a very nice rally in the shares of China."

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Asian stocks fell driving the benchmark index to its first drop in four days

Asian stocks fell driving the benchmark index to its first drop in four days until the lower metal prices dragged mining companies and Japanese exporters fell after the yen gained yesterday as Tokyo markets were closed.

BHP Billiton Ltd., the world's No. 1 mining company, lost 0.9 percent in Sydney. Nissan
Motor Co., a Japanese automaker earns about 75 percent of its sales abroad, fell 1.3 percent in Tokyo. Advantest Corp., the world's largest maker of chip testing equipment, fell 1.8 percent in Tokyo after reviewing a takeover bid. Hyundai Merchant Marine Co. fell 5.7 percent in Seoul after the sale of new shares at a discount.

"The market seems to be taking a little breather today after a month quite strong," said Matt Riordan, who helps manage about $ 7 billion in Sydney at Paradice Investment Management Pty. "The economic data has been looking quite reasonable and there is no data-wise or prudent news, which is particularly bad. Probably there is some profit taking going on at the end of the calendar year. "

The MSCI Asia Pacific Index fell 0.2 percent to 135.25 as of 19:36 in Tokyo, with more than two stocks declining for every one advanced. The meter is ready for a gain of 5 percent this month as U.S. reports showed gross domestic product expanded more rapidly than expected and the country's retail sales rose last week, reinforcing confidence in a global economic recovery.

Retirement rates

Japan's Nikkei 225 Stock Average fell 0.7 percent yesterday after being closed for a holiday. Australia S & P / ASX 200 fell 0.5 percent. South Korea's Kospi index dipped 0.4 percent. Hong Kong Hang Seng Index lost 0.3 percent, led by Chinese automakers in the government restricts the concern of car sales. Shanghai, China Composite Index fell 0.7 percent.

Markets in Australia, Hong Kong and Singapore closed early on Christmas Eve.

The MSCI Asia Pacific Index advanced 13 percent this year through yesterday on speculation that growth in corporate profits is the climate of Europe's debt crisis, China's measures to curb inflation of property prices and concern about the pace of U.S. recovery economic. Which coincides with the gain 500 of Standard & Poor's in the U.S. and exceeds the 11 percent increase in the Stoxx Europe 600 Index.

The benchmark index of Asia fell 43 percent in 2008 and recovered 34 percent last year, its biggest gain since 2003.

Shares in the MSCI index is valued at 14.8 times estimated earnings on average at the end of yesterday, compared with 14.7 times for the S & P 500 and 12.5 times for the Stoxx 600.

Metal prices, currency

Materials related to businesses and consumers fell most today among the 10 industry groups in the MSCI index of Asia Pacific. BHP Billiton fell 0.9 percent to $ 46.04 in Sydney. Rio Tinto Group, the world's third largest mining, fell 1 percent to $ 86.36.

Copper futures for March delivery fell 0.4 percent yesterday in New York. The London Metal Exchange index of six metals such as copper and aluminum fell 0.8 percent yesterday, falling for a second day.

Nissan lost 1.3 percent to 785 yen in Tokyo. Mazda Motor Corp., with about 24 percent of sales in North America and 17 percent in Europe, sank 2.5 percent to 239 yen.

The dollar fell to a low of 82.86 against the yen yesterday in New York, the lowest level since 14 December. The euro fell to a low of 108.46 against the yen yesterday, near the lowest level this month. This reduces the value of foreign earnings in Japanese companies when converted into local currency.

"Close-profit '

"The stronger yen is likely to lead investors to sell shares to take profits," said Juichi Wako, senior strategist at Tokyo-based Nomura Holdings Inc.

Advantest fell 1.8 percent to 1.853 yen after Verigy Ltd., a manufacturer of test equipment for semiconductor manufacturers, said Advantest raised its bid by 23 percent. Advantest said it amended its offer, without giving further details.

In Seoul, Hyundai Merchant Marine fell 5.7 percent to ₩ 37,150. Hyundai Elevator Co. agreed to the purchase of 1,800,000 new shares of the shipping company for 32,000 won each, according to a regulatory filing.

Dongfeng Motor Group Co., the Chinese partner of Nissan fell 7.9 percent to $ 13.08 in Hong Kong in Hong Kong. Geely Automobile Holdings Ltd., whose father bought Volvo Cars, lost 6 percent to HK $ 3.43. The city of Beijing has introduced measures such as limiting the number of new passenger vehicles in China's capital to alleviate the congested roads.

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Copper rose to almost a record amid speculation as Swiss franc declined

Copper rose to almost a record amid speculation that the global recovery will continue in 2011. The Swiss franc declined and the United Kingdom shares advanced for a fifth day before the weekend.

Copper gained 0.7 percent, extending the rally this year to 27 percent, at 10:59 am in New York. The franc has depreciated 0.3 percent against the euro. The FTSE 100 index added 0.2 percent, swinging to a profit from a loss in the last minutes of trading, while the CAC-40 index lost 0.3 percent. The MSCI Emerging Markets Index fell below 0.1 percent, the first decline in four days, as North Korea threatened to launch a "holy war" if attacked. U.S. markets were closed for the Christmas holidays.

Confidence among U.S. consumers probably better off this month, economists said before the report to be released on December 28, Conference Board. U.S. stocks finished fourth consecutive weekly gain yesterday after data showed the economy grew in the third quarter, initially reported an increase in expenditure and the Americans in November for the fifth month.

"The steady advance in base metals continues to demonstrate the strength of economic growth and the tortuous business of making additional supplies of metals," said Michael Smedley, who helps manage C $ 1.2 billion (1.19 billion U.S. dollars ) as a fund manager at Morgan Meighen & Associates Ltd. in Toronto. "In South America, the mines of the main ones have been topping out for some time in production. There is going to be easy, therefore, the price should not be getting easier."

The Standard & Poor's 500 surpassed 1251.70 this week, surpassing its closing level on September 12, 2008, the last trading session before the bankruptcy of Lehman Brothers Holdings Inc. 's sent the economy into a tailspin and spurred a retreat 46 percent at March 9, 2009.

Copper, nickel, gold

Copper rose to $ 9,371 a ton on the London Metal Exchange, approaching the $ 9,392 record set on December 21 after stocks fell in China, the world's biggest buyer of the metal. Nickel rose 1.7 percent. Gold for immediate delivery added 0.3 percent to $ 1,383.72 an ounce.

The franc weakened against all 16 major counterparts, fell 0.4 percent against the dollar. The central bank said it is ready to counter the risk of deflation if necessary.

Although most European markets were closed, the FTSE 100 reached its fourth consecutive weekly gain, the longest streak of gains since September. The benchmark has risen 11 percent this year. Randgold Resources Ltd. fell 4.3 percent in London after the metals producer, said the "political impasse" in Ivory Coast affect its fourth quarter. JJB Sports Plc rose 24 percent after the retailer announced measures to shore up its finances.

Advantest Nissan

The MSCI Asia Pacific Index fell 0.3 percent, ending a three-day advance. Nissan Motor Co. retreated 1.3 percent in Tokyo. Advantest Corp., the world's largest maker of chip testing equipment, fell 1.8 percent after reviewing a takeover bid. Hyundai Merchant Marine Co. fell 5.7 percent in Seoul after the sale of new shares at a discount.

Automakers took a drop of 0.7 percent in China's Shanghai Composite index after Beijing said it would limit the number of new passenger cars in China's capital. South Korea's Kospi index declined 0.4 percent after North Korea threatened to launch a "holy war" using nuclear weapons if attacked.

Investors pulled money out of equity funds emerging market mutual for the first time since May in the week ended Dec. 22 amid concern that rising commodity prices prompted China to tighten monetary policy, according to EPFR Global. The funds have taken in a record 92.5 billion U.S. dollars this year, the MSCI emerging markets advanced 14 percent.

Canada S & P / TSX Composite Index rose 0.2 percent. Western Financial Group Inc. jumped 67 percent to C $ 4.09. Desjardins Financial Group, the largest credit union in Canada, agreed to buy the insurance of C $ 443,000,000 ($ 439,000,000), or C $ 4.15 per share, to expand in British Columbia and Alberta.

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Japanese stocks fell for a second day

Japanese stocks fell for a second day after the dollar weakened against the yen, while the Tokyo market was closed yesterday, dampening prospects for export earnings.

Honda Motor Co., automaker of Japan's second-largest, lost 1.1 percent. Kyocera Corp., a manufacturer of electronic equipment that earns a third of its income from U.S. and Europe, fell 1.1 percent. Mitsubishi UFJ Financial Group Inc., a bank whose stock has advanced nearly 15 percent over the past two months, declined 0.7 percent. Mitsui O.S.K. Lines Ltd., operator of the largest merchant fleet in the world, fell 2.5 percent after Goldman Sachs Group Inc. cut its rating to "sell" and freight rates fell to a five-month low.

"The stronger yen is likely to lead investors to sell shares to take profits," said Juichi Wako, senior strategist at Tokyo-based Nomura Holdings Inc.

The Nikkei 225 Stock Average fell 0.7 percent, to 10,279.19 at the 3 pm close in Tokyo. The broader Topix lost 0.5 percent to 901.66, with more than three times as many shares declining as it progresses. Both indicators had the biggest drop since Dec. 20 and plunged to the lowest levels since.

For the week, both the Nikkei 225 and Topix lost 0.2 percent. The Nikkei 225 fell for the first time in eight weeks, and the broadest indicator slipped for the first time in four.

The Topix was down about 9.7 percent from its peak this year on 15 April as the debt crisis of Europe, China's measures to curb property prices and concerns about U.S. economic growth . dampened confidence in a global recovery. Shares in the overall index are valued at 15.7 times estimated earnings on average, nearly four months.

Exporters decline

Carmakers contributed most to the Topix's decline among 33 industry groups, followed by banks and manufacturers of electronic products.

Honda Motor Co., a manufacturer of cars that gets about 80 percent of its sales abroad, fell 1.1 percent to 3.265 yen. Toyota, the largest automaker in the world, fell 0.5 percent to 3.225 yen. Mazda Motor Corp., the second largest exporter of cars in Japan sank 2.5 percent to 239 yen.

Kyocera lost 1.1 percent to 8.420 yen. Murata Manufacturing Co., a manufacturer of electronic precision obtained over 80 percent of its revenues outside Japan fell 1.8 percent to 5.560 yen.

Weak dollar

The dollar fell to a low of 82.86 against the yen yesterday in New York, the lowest level since 14 December. The euro fell to a low of 108.46 against the yen yesterday, near the lowest level this month. This reduces the value of foreign earnings in Japanese companies when converted into local currency. Japanese stock markets were closed yesterday for a public holiday.

Mitsubishi UFJ Financial, Japan's biggest bank, traded, fell 0.7 percent to 440 yen. Sumitomo Mitsui Financial Group Inc., which is the second largest bank in Japan, jumped almost 20 percent in the past two months, fell 0.8 percent to 2.888 yen. Sumitomo Mitsui was the most active action by the value in Japan.

Bank stocks as a group grew 15 percent in the past two months, surpassing 9.8 the Topix percent gain over the same period.

"The stock market has increased recently and may be time for investors to take a break," said Hisakazu Amano, who helps oversee about $ 29 billion Tokyo-based T & D Asset Management Co. investors "in buying positions can clear their positions, and that is the end of this year. "

Trade Light

About 1,460,000,000 shares are traded on the Tokyo Stock Exchange today, the lowest since Aug. 23. Markets in Australia, Hong Kong and Singapore closed early on Christmas Eve.

"Investors are in a mood to wait and see," said Naoteru Teraoka, general manager based in Tokyo Chuo Mitsui Asset Management Co., which oversees about $ 26 billion. "There is no Japanese exclusive story big enough to encourage action among many foreign investors taking a vacation."

Mitsui O.S.K. fell 2.5 percent to 554 yen after its investment rating dropped to "sell" from "buy" by Goldman Sachs. Nippon Yusen KK, the Japan's largest shipping company by sales, fell 1.4 percent to 364 yen and Kawasaki Kisen Kaisha Ltd., the third largest, fell 1.4 percent to 353 yen after Goldman cut its target prices and maintained its "neutral" rating on both stocks. Shipping companies had the steepest percentage decline in the industry group of the Topix.

The Baltic Dry Index of shipping commodities fell 1.9 percent yesterday, a retreat of 13 consecutive to the lowest level since 21 July. Copper futures for March delivery fell 0.4 percent yesterday in New York. The London Metal Exchange index of six metals such as copper and aluminum, fell 0.8 percent yesterday, falling for a second day.

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Britain's FTSE 100 Index closed above 6,000 for the first time since June 2008

Britain's FTSE 100 Index closed above 6,000 for the first time since June 2008, extending the yardstick for measuring progress for the fourth straight week.

Resolution Ltd., BG Group Plc and Schroders Plc all rose at the close of trade today, dragging the index higher. JJB Sports Plc rose 24 percent in the broader All-Share index after the retailer announced a share sale to shore up its finances. Randgold Resources Ltd. fell after metals producer said the political crisis in Ivory Coast un''impacto would impact on its earnings.

The FTSE 100 rose 12.85, or 0.2 percent, to 6,008.92 at the close at 12:30 pm in London, extending its weekly gain of 2.3 percent. The FTSE All-Share Index rose 0.1 percent today, while Ireland ISEQ Index fell 0.2 percent to close 1:15 pm in Dublin.

"The prolonged rally Santa has left the market looking strong before the holidays and there is still scope for further increases before the end of year," said David Jones, head of London-based strategy of IG Index.

The FTSE 100 briefly yesterday from 6,000 in intraday trading for the first time since June 2008, as U.S. reports added to evidence that the recovery in the world's largest economy is intact. So far this year, the FTSE 100 has risen by 11 percent.

Resolution rose 2 percent to 239.5 pence, bringing the close of trade today. BG Group advanced 1.2 percent to 1,337.5 pence and Schroders also recovered, gaining 1.4 percent to 1,900 pence.

JJB Sports Salta

JJB Sports jumped 24 percent to 5.3 pence, their biggest gain in almost six months after the unprofitable maker of sporting goods announced plans to raise at least 31.5 million pounds ($ 48,600,000) for help the company survive. JJB sell new shares at 5 pence each, more than yesterday's closing price of 4.3 pence. The sale has the support of major shareholders JJB, while Bank of Scotland Plc has agreed to waive a trial January JJB banking agreements.

Randgold Resources fell 4.3 percent to 5,265 pence after the metal producer said its fourth quarter was "proving to be even more difficult than expected." Ivory Coast President Laurent Gbagbo's refusal to surrender the presidency to Alassane Ouattara, the country won 28 November elections, has led to violence, delaying the delivery of equipment to mine the Tongon Randgold, which affect production, the company said yesterday in a statement.

GKN Plc, which manufactures aircraft components for Airbus SAS, lost 3.5 percent to 218 pence, breaking the longest streak of gains action since October 2009.

Eatonfield Group Plc fell 12 percent to 0.5 pence after the developer reported a loss of 13.8 million pounds in the year to June 30, wider than 4.4 million pounds loss last year.

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Canadian dollar made gains against its two weekly U.S.

Canadian dollar made gains against its two weekly U.S. and the euro as crude oil to a stock price in two years and increased demand pushed higher-yielding assets.

Canadian currency, nicknamed the loonie, is a 2 percent this month and 0.8 percent in the last five days against the dollar, recovering from two consecutive weekly losses, on speculation that the Bank of Canada will resume its cycle of interest rate hikes in 2011. The Canadian dollar has gained more than 12 percent this year versus the Danish krone, the most among the 16 most-traded counterparts.

"The Canadian data was not strong enough to change the perception that the Bank of Canada will begin to walk in the second quarter," wrote David Watt, senior currency strategist at RBC Royal Bank of Canada Capital Markets unit, a e-mail. "There is little reason for the rally in the U.S. dollar against the Canadian dollar to be sustained and good argument for that fade."

The Canadian currency climbed to C $ 1.0062 per U.S. dollar at 11:47 am in Toronto, compared with C $ 1.0140 on 17 December. Appreciated by 1.3 percent to C $ 1.3198 against the euro, after five straight gains through today.

"The U.S. growth outlook still looks pretty good," said Watt. "The feeling of risk remains alone. The actions follow the rotation of the profits and now oil prices are starting to gain momentum. A test of parity is likely to be aligned with a test of $ 100 per barrel oil. "

Bank of Canada

Brent crude rose to 49 cents to $ 94.74 a barrel on London's ICE Futures exchange in Europe, the highest since October 2008. Prices have gained 2.3 percent this week, and 20 percent this year.

500 of Standard & Poor's gained 1 percent this week. U.S. markets are closed today.

The Bank of Canada, which meets next on Jan. 18, left its benchmark interest rate by 1 percent on 07 December for the second time directly to measure the global economic recovery after three successive increments.

Economists predict that the central bank will raise the target rate overnight to 1.25 percent in late June.

Canadian government bonds were mixed. The yield on the benchmark 10-year note fell 2 basis points to 3.17 percent from 3.19 percent on 17 December. A basis point is 0.01 percentage point. The yield touched 3.37 percent on Dec. 14, the highest since June 21. The price of the 3.5 percent security due in June 2020 rose 11 cents to C $ 102.55.

Bond yields

two-year yield rose six basis points to 1.70 percent. five-year yields rose five basis points to 2.44 percent.

Government bonds have lost 0.4 percent this month, comparing this year's gain to 5.8 percent, according to a Merrill Lynch Bank of America Index.

Canadian gross domestic product grew 0.2 percent to a seasonally adjusted annual rate of C $ 1,240,000,000,000 (1.22 trillion U.S. dollars) in October after contracting 0.1 percent in September, the national statistics agency said yesterday in Ottawa. Economists expected a 0.3 percent increase, based on the median of 21 forecasts.

Reports earlier this week showed that wholesale prices unexpectedly stagnated, inflation slowed, while retail sales rose more than economists had forecast.

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The franc weakened against the euro and the dollar for a second day

The franc weakened against the euro and the dollar for a second day, as the Swiss National Bank said it is ready to "take steps" to combat deflation, fueling speculation that he may intervene.

The yen fell against most major pairs as Reuters reported that Japan said it is likely to increase their reserves to intervene in the currency market. The dollar was on the verge of a weekly loss against 12 of its 16 most-traded counterparts as positive U.S. data spurred economic investment in riskier assets. Reports next week may show confidence among U.S. consumers including improved housing remains weak.

"It does not take much to get the market to move at Christmas or New Year and, in view of the euro-Swiss acceleration to the minimum of a couple of days, does not take much for a little investment, "said Jeremy Stretch, executive director of foreign exchange strategy at the Canadian Imperial Bank of Commerce in London.

"The SNB could have learned the lesson of how painful and expensive unilateral intervention," said the stretch. "It might want to rush back into the same type of risk at the moment."

The franc has depreciated 0.4 percent against the euro at 1.2619 from 14:12 in London, and weakened to 96.22 cents per dollar from 95.87 yesterday.

"Concerns about stability in the euro area have led to renewed financial market tensions," pushing up the franc, the central bank based in Zurich, said in its quarterly report published on its website today day. "If these tensions were exacerbated and put a strain on economic developments in the euro area, that too would have a detrimental effect on the Swiss economy. If there is a risk of deflation, the Swiss National Bank will take the necessary measures to ensure price stability. "

Six Days of Records

The Swiss currency strengthened to a record $ 1.2439 against the euro on December 22 after touching new highs for six consecutive days. Has appreciated 15 percent against the euro and 7.1 percent against the dollar this year, as investors sought refuge from the debt crisis of the region's troubled currency.

The yen weakened against 13 of his 16 fellow seniors. Japan is likely to increase their reserves to one side to intervene in the foreign exchange market by 5 trillion yen (60 billion) in the next fiscal year, Reuters reported, citing unidentified sources. The pool is 145000000000000 yen, the report said.

Treasury Bonds Drop

The yen gained 12.1 percent this year, according to indexes of correlation-weighted currencies, which track a basket of 10 currencies of the developed countries.

The euro gained for a second day against the dollar. S & P said yesterday that France deserves a rating of AAA sovereign credit because of the "richness and depth" of its economy and the view that the government of President Nicolas Sarkozy will consolidate its budget deficit.

credit rating of France was vulnerable to a rescheduling because its budget deficit and because its banks are the largest holders of debt issued by so-called peripheral countries, analysts said before yesterday's announcement.

The common currency traded little changed at $ 1.3118 after strengthening 0.3 percent to $ 1.3149.

The vote of confidence in France came hours after Fitch Ratings cited concern for the environment "financing" for the government of Portugal and banks, as well as the economic outlook as a court of the nation's long-term foreign issuer in local currency default rating to A +, the fifth-highest level of AA-. The outlook is negative.

China voices support

The euro will end 2011 about $ 1.50 European accelerates growth led by Germany, Stacey Gavin, interest rate strategist at Barclays Capital in Sydney, said in an interview.

"If the euro is down to around $ 1.25 level, then that's a good time to load up on the history of European growth because Germany is growing rapidly," he said.

The demand of the common currency was also boosted by Chinese officials this week expressed support for the European Union. The strengthening of the state of the euro will help "promote the construction of a diversified global monetary system," said China's ambassador to the EU Song Zhe yesterday in a statement on the website of the Ministry of Foreign Affairs.

His comments follow those of Chinese Vice Premier Wang Qishan said on 21 December that his country had taken "concrete steps" to help the EU meet its debt crisis.

The confidence index for the Conference Board's U.S. consumer rose to 56.3, according to the median estimate in a survey before the report of the group from New York, expiring December 28.

S & P / Case-Shiller index of home values in 20 U.S. cities fell 0.2 percent in October from the same month of 2009, the first decline year by year, since January, a report is expected to show December 28. The gauge probably fell 0.7 percent from the previous month after adjustment for seasonal variations.

"Recovery of the whole world seems to be recovering," said Tsutomu Soma, a provider of bond and currency of Okasan Securities Co. in Tokyo. "It seems that there are risks in the sense that probably negative for the yen and the dollar."

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The euro may fall to a minimum of four months against the yen

The euro may fall to a minimum of four months against the yen should fall below key support levels established in the last month, said Tsutomu Soma, a provider of bond and currency of Okasan Securities Co.

Support at 108.35 yen weakest marks the euro on Nov. 30, and the level of 108.49 yen represents a trend line connecting the lows of August 24, 1908 September and 23 December. Daily momentum indicators such as Moving Average Convergence Divergence, or MACD, also show that the euro is likely to weaken against the yen, Soma said.

"The euro is very bad against the yen in the lists, " said Tokyo-based Soma in an interview. "The trend is downward, with a clear break below 108.35 yen target the August low 105.44 yen."

The European currency rose to 109.04 yen at 9:53 am in Tokyo from 108.74 yen in New York yesterday, when it fell to 108.46 yen, at least from 1 December. The level of 105.44 yen reached on 24 August was the weakest since July 2001. The euro has fallen 18 percent against the Japanese currency this year, set for biggest loss since 2008.

MACD of the euro against the yen today was less than 0.7102, below the signal line of less than 0.5405. The MACD is calculated by subtracting the 26-day exponential moving average of the mean of 12 days. The signal line is a nine-day exponential moving average of the MACD, and provides signals for buying and selling of some analysts.

In technical analysis, investors and analysts charts on trading patterns and prices to forecast changes in the security, commodity, currency or index. Support is on purchase orders can be grouped while resistance refers to a level where sell orders may be.

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Canadian dollar dropped after showing the nation's economic growth forecasts lost

Canadian dollar dropped compared with commodity-linked counterparts after a report showed the nation's economic growth forecasts lost, adding to evidence of recovery can be prolonged.

The Canadian currency, known as the Canadian dollar strengthened against the dollar as crude oil climbed to the highest level in over two years. The Canadian dollar led to a gain of 0.5 percent in the week, after falling the previous two. It has risen 4.3 percent this year against the U.S. dollar, the ninth best performance among its 16 major counterparts.

The U.S. dollar pair Canadian dollar currency "has been less attuned to the risk of finding the feelings," said Brian Kim, currency strategist at UBS in Stamford, Connecticut, via email. "It's probably the choppiness in the Canadian and U.S. data that batting around the couple."

Canadian dollar fell 0.5 percent to 75.42 Canadian cents per dollar of New Zealand at 5 pm in Toronto from 75.01 cents yesterday, and declined 0.2 percent to C $ 1.0138 per Australian dollar, from $ 1.0122. Australia and New Zealand, like Canada, are based on raw materials for export earnings.

The Canadian dollar gained 0.4 percent to C $ 1.0095 per U.S. dollar, from $ 1.0132 yesterday, after depreciation of up to 0.3 percent. It touched C $ 1.0209 per dollar on 20 December, the lowest since Dec. 1.

Canadian gross domestic product grew 0.2 percent to a seasonally adjusted annual rate of C $ 1,240,000,000,000 (1.22 trillion U.S. dollars) in October after contracting 0.1 percent in September, the national statistics agency said today in Ottawa.

Bond Reduction

Crude oil for February delivery rose to 1.3 percent, to $ 91.63 a barrel in New York, the highest since October 2008. The oil is the largest Canadian export. 500 of Standard & Poor's fell 0.2 percent.

Government bonds fell, bringing the yield on the two years for up to five basis points, or 0.05 percentage point to 1.72 percent, the highest level in a week. It touched 1.76 percent on Dec. 13, the highest since Nov. 25. The price of the guarantee of 1.5 percent due December 2012 fell 6 cents to C $ 99.64.

Canadian dollar, known as the Canadian dollar for the image of waterfowl in the C $ 1 coin, will strengthen the dollar peg at the end of March, and trade there for most of 2011.

New Zealand Dollar

New Zealand's currency was the best performer among the major partners of the dollar. The U.S. dollar fell against most of its peers after reports showed U.S. economic recovery is gaining momentum, creating demand for higher yielding assets. The data showed that household spending and capital goods orders rose in November and initial claims for unemployment insurance benefits fell last week.

Canadian Finance Minister Jim Flaherty said the budget next year will include measures to help boost economic growth without losing sight of the long-term goal of a balanced budget.

Expansion of training programs and "significant" infrastructure spending will be part of Canada's 2011 budget, Flaherty said in a Dec. 21 interview. However, the country's finances back in balance "anchor" of the fiscal plan, he said.

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Orders for capital equipment in the U.S. recovered in November

Orders for capital equipment in the U.S. recovered in November, indicating a slowdown in business investment may be less pronounced than some economists projected.

Bookings for goods like computers and communications equipment rose 2.6 percent after declining 3.6 percent in October, which was lower than estimated, the Commerce Department figures showed today in Washington. Total orders fell 1.3 percent, pressured by the ongoing demand for airplanes, and reserves excluding transportation equipment rose more than expected.

Capital spending has been a source of strength for the world's largest economy, while household purchases are starting to accelerate. Manufacturing industry helped pull the U.S. the worst recession since the 1930's, has remained strong throughout the recovery, driven in part by foreign demand for American-made goods.

"There are still some teams spending going on," said Brian Bethune, chief U.S. financial economist IHS Global Insight in Lexington, Massachusetts. "It will be a positive factor for growth."

Another Commerce Department report today showed consumer spending rose in November as incomes rose. Household purchases by 0.4 percent after rising 0.7 percent in October, which was higher than previously estimated. Revenue rose 0.3 percent and the preferred price measure of the Federal Reserve showed that inflation remained below the comfort zone of policy makers.

Jobless Claims

Initial claims for unemployment fell in 3000 to 420,000 in the week ended Dec. 18, the Labor Department figures showed today in Washington. And collecting those benefits fell last week to 4.06 million.

The index futures fluctuated after the reports. The contract on the Standard & Poor's 500 Index expiring in March fell 0.2 percent to 1252.50 at 8:57 in New York. Treasury securities were lower, pushing the yield on the benchmark 10-year to 3.36 percent from 3.35 percent late yesterday.

The median forecast calling for a decline in total orders for durable goods reflects 74 projections in a survey. Estimates ranged from a decline of 3.6 percent to an increase of 3 percent.

Reservations for commercial aircraft fell 53 percent last month after a 7.1 percent decline in October.

Excluding transportation, bookings rose 2.4 percent, the biggest increase since March. They were forecast to rise 1.8 percent.

Business Investment

The capital goods orders excluding aircraft non-defense is considered an indicator of business investment in the future. The revised fall in October compared with a 4.5 percent decline previously estimated. In the last three months, stocks rose at an annual rate of 7.1 percent, down from an increase of 11 percent in October.

The demand for computers and electronics rose 5.8 percent last month, the biggest increase since February 2009.

Shipments of capital goods excluding aircraft non-defense, which is used in the calculation of GDP, increased 1 percent after falling 1.2 percent in October.

The U.S. economy grew at a rate of 2.6 percent between July and September, the Commerce Department said yesterday. Corporate profits rose 1.6 percent during the third quarter and increased 26 percent from the same three months last year.

Industrial Production

Today's report supports others suggesting factories are contributing to growth in the fourth quarter. Last week the Fed said U.S. industrial production increased in November by the most in four months.

Some manufacturers are projecting higher earnings as orders increase. Joy Global Inc., the manufacturer of P & H Joy Mining equipment, last week announced an earnings forecast for fiscal 2011 that exceeded analysts' estimates in a survey.

"The rate of stock enhancement supports our view that mining customers continue to increase their capital spending plans," said Mike Sutherlin, CEO of Milwaukee-based company said in a statement on 15 December. "We continue to increase our production to meet forecasted demand growth."

Foreign sales are a plus for factories and exports in October rose to its highest level in more than two years, according to Commerce Department data released on 10 December. Some companies are responding to increased U.S. demand and abroad by replacing obsolete equipment and the expansion of its plants on line.

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The pound sterling depreciated against the dollar for the second straight week

The pound sterling depreciated against the dollar for the second straight week as economic data stoked concern the recovery may be slower.

The pound headed for weekly decline against 16 of its most actively traded counterparts. The pound hit a three-month low against U.S. currency December 22 as the Office for National Statistics said gross domestic product grew by 0.7 percent in the three months to September, below the initial estimate of 0.8 percent announced in October. Second quarter growth was revised downward to 1.1 percent from 1.2 percent. The budget deficit rose to a record of approvals and home loans fell to the lowest since March 2009.

"It was not the best race of the data in the course of the last session and the pound is looking a little softer," said Jeremy Stretch, executive director of foreign exchange strategy at the Canadian Imperial Bank of Commerce London. "The GDP data was a bit disappointing, and does not provide a lot of positivity to be the end of the year."

The pound was little changed at $ 1.5440 as of 12:40 pm in London. That is a decline of 0.7 percent from $ 1.5533 on 17 December. It reached $ 1.5356 on 22 December, its lowest level since 14 September. The UK currency was at 85.05 pence per euro from 84.91 pence a week ago.

Published data showed 21 December, the deficit of the United Kingdom in November rose to a record budget. Net public debt rose to 22.8 million pounds, up from 16.7 million pounds a year earlier, said the ONS. The growing gap highlights the challenge facing the prime minister, David Cameron and his government is prepared to implement deeper cuts in spending since World War II.

Home Loans

A report by the British Bankers Association showed on December 23 UK banks granted 29,991 mortgages in November, compared with 30,689 the previous month. That was the lowest number of mortgage approvals since March 2009 when the economy was in the depths of the recession, according to the data.

"The housing market is showing signs of recovery in the short term fiscal consolidation likely to weigh," said CIBC stretch.

The pound has lost 1.1 percent in the last week, which track a basket of 10 currencies of the developed countries.

Since late 2009, the British currency has lost 6.4 percent, compared with a decline of 10.5 percent for the euro and a loss of 1.4 percent for the dollar.

The UK currency dropped their declines as Bank of England markets director Paul Fisher said in an interview on 23 December that interest rates may rise to a "standard position" of about 5 percent.

"It's not impossible"

"I do not think a change of 25 or even 50 basis points, will cause a recession," Fisher told the Daily Telegraph. "But we have to do is turn on the way people think that's where the rates that may come back."

The central bank official also said it is "impossible" the economy may contract for a quarter.

Minutes of the meeting of the Bank of England in December on 22 December showed that policymakers remained divided in its decision to keep the benchmark interest rate at a record low of 0.5 percent and the asset purchase program without changes in 200 million pounds.

Member of the Monetary Policy Committee Adam Posen, who has asked the bank to increase the stimulus, said last week policy makers should not "overreact" to inflation. His colleague Andrew Sentance voted to increase rates since June.

The 10-year gilt yield gained two basis points to 3.51 percent from 3.56 percent on 17 December. This is his first weekly loss in four. The yield on two-year note increased one basis point in the week to 1.21 percent.

Gilts have returned 6.7 percent this year, according to indexes compiled by the European Federation of Financial Analysts Societies . Treasuries gained 5.4 percent and Germany's debt reference values of the euro zone, returned 6.1 percent, rates of EFFAS show.

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Gold rose for the first time in three days in London

Gold rose for the first time in three days in London as concern about the debt crisis in Europe led investors to protect their wealth.

Portugal Fitch Ratings downgraded by one level yesterday and said the economy faces a "deterioration" of Outlook as the government struggles to contain the euro zone's fourth largest budget deficit. Gold rose to a record $ 1431.25 an ounce on 07 December amid growing concern about the fiscal health of countries like Ireland, Spain and Greece.

"Gold prices have risen largely on the sovereign risk in Europe," said Chris Kwon, Co. operates Seoul-based KTB Securities "ingots may soon break the $ 1,400 mark again."

Gold for immediate delivery rose $ 4.83, or 0.3 percent, to $ 1,384.93 an ounce at 12:45 pm in London. Gold futures for February delivery closed at $ 1,380.50 in the Comex in New York yesterday. Trade is closed today.

Bullion rose to $ 1,380.50 an ounce in the morning "fix" in London, used by some mining companies to sell production, from $ 1,373.50 in the afternoon yesterday fixing. Spot prices by 26 percent this year, heading for a 10th consecutive year, the longest streak in at least nine decades.

The euro rose against the dollar after Standard & Poor's said on Tuesday that France deserves a rating of AAA sovereign credit because of the "richness and depth" of its economy and the view that the government of President Nicolas Sarkozy will consolidate its budget deficit.

gold assets in exchange-traded products fell 3.12 metric tons to 2,101.3 tons yesterday. Holdings reached a record 2,114.6 tons on 20 December.

Silver for immediate delivery in London was little changed at $ 29.2725 an ounce. Palladium rose 1.6 percent to $ 764.25 an ounce. Platinum was 0.4 percent, to $ 1,726.25 an ounce.

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The premium of yuan to buy outside of China disappeared

The premium of yuan to buy outside of China disappeared as Hong Kong's central bank established a fund to guarantee the supply of currency cross-border trade settlements.

Yuan traded in Hong Kong to 6.6510 per dollar as of 12:10 pm local time, a discount rate of 6.6333 in Shanghai. offshore trading began in July and the Hong Kong rate has averaged 0.8 percent stronger than on the mainland. Hong Kong banks will be allowed to exploit the 20 billion yuan ($ 3 billion) of funds from the bank next month the city of yuan of compensation runs out of funds created pursuant to a quarterly fee.

The Hong Kong Monetary Authority made available 10 million yuan in October with a swap agreement with China's central bank after a quota of 8000 million yuan was insufficient. Chinese Premier Wen Jiabao, is allowing the currency to be more readily available outside the borders of China to reduce reliance on U.S. dollars in trade and finance.

"They're hurtling toward this point," said Gavin Parry, chief executive of Hong Kong Parry International Trading Ltd. "They are really in Hong Kong as the clearing and settlement center for storage and offshore transactions" in yuan, he said.

Hong Kong aspires to grow as havens for trade in yuan and HKMA Chief Executive Norman Chan said yesterday deposits amounted to 280 billion yuan by the end of November, up from 220 million yuan the previous month. The city received 130 million yuan in net trade payments of China in the first 11 months, told reporters in Hong Kong.

Currency Swap

The amount available in the yuan clearing bank will be subject to quarterly review, Chan said, predicting that 4 million yuan will be sufficient for the first quarter of 2011. The yuan fund, created through a currency swap agreement with the People's Bank of China will be "more than sufficient" to meet the growing demand for the currency, he said.

The HKMA, together with the city banks, will be the promotion of yuan business in Hong Kong offshore next year in countries that have "rapid increase in trade and investment flows to the continent," said Chan.

BOC Hong Kong is currently Hong Kong (Holdings) Ltd. as a clearing bank for RMB. There are risks in having a single bank for the release of yuan, the official Xinhua news agency reported on 10 December, citing Peter Wong, executive director of the Asia-Pacific of HSBC Holdings Plc.

the city's richest man, Li Ka-shing, plans for what may be the first initial share sale of yuan next year, in their search for more than 10 billion yuan (1.5 billion dollars ) for a real estate investment trust backed by the Beijing Oriental Plaza development, a person briefed on the matter, he said.

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Naoto Kan plans to limit new bond sales of 44.3 trillion yen in 2011

Japanese Prime Minister Naoto Kan plans to limit new bond sales of 44.3 trillion yen ($ 534,000,000,000) in 2011 to finance a record budget in an attempt to stimulate demand and boost business growth.

The country's budget will amount to 92.4 billion yen in the year from April 1, according to a proposal approved today by the Council of Ministers in Tokyo. Kan is committed to maintaining the bond sales unchanged for three years to curb the industrialized world's largest debt burden.

Kan budget juggling the need to stimulate demand in an economy battered by the yen up to a deflation in 15 years, and reduce the burden of debt twice the size of gross domestic product. The increase in sales tax to improve Japan's finances might not be feasible because it runs the risk of a further decline in his popularity, Nikko Cordial Securities Inc., said.

"Given the political situation will be difficult for Khan to discuss a tax increase sales," said Hidenori Suezawa, chief strategist at Nikko Cordial Securities in Tokyo. "There is no doubt that the government will have a harder time compiling the budget for next year as social security costs swell and run out" of the sources of income.

Japan's economy will shrink this quarter, due to the stimulus of government spending expire and reinforced the strength of the yen threatens export profits. The government said this week that he expected growth to slow to 1.5 percent next fiscal year of 3.1 percent.

The job cuts

JVC Kenwood Holdings Inc., a Japanese manufacturer of audio equipment, video cameras and televisions, said it plans to eliminate 500 jobs at its unit Victor Japan due to the appreciation of the yen and competition from Asia have reduced income.

The yield on the benchmark 10-year note rose to 1.16 percent at 6:56 pm in Tokyo. The yen was trading at 82.90 as of 18:57 has fallen 2.9 percent against the dollar to a 15-year high of 80.22 reached on November 1.

The government also said today it plans to add ¥ 5000000000000 145000000000000 yen reservations aside pool of currency intervention, after Japan sold yen for the first time in six years on 15 September.

Japan's primary deficit was reduced to 22,700,000,000,000 yen from 23.7 trillion yen, the Finance Ministry said, equivalent to about 4.7 percent of GDP. Khan wants to publish a primary balance, which can be achieved when revenues match expenditures, excluding bond sales and interest payments for the year 2020.

The decline in income

The government hopes that new bond issues over the tax revenue of 41 billion yen for a second consecutive year. Japan tax revenues have declined more than a third after peaking in 1990 ¥ 60,100,000,000,000.

Sales of all bonds and obligations including to refinance maturing debt will take place next year ¥ 144900000000000 144300000000000 yen, according to the proposal. Nikko Suezawa said the amount of bond sales were within expectations and have a limited market impact.

Kan submit the draft budget to Parliament, where it is almost certain to be approved by the ruling party controls the more powerful lower house.

Lack of Leadership

Prime Minister 7000000000000 yen tapping unused accounts and reserves to pay for the plan, including money from an account in foreign currency reserves and accumulated funds from a company affiliated with the government railway. Finance Minister Yoshihiko Noda said the government needs to find a sustainable source of funds.

"This outstanding debt and low tax revenues, obviously, suggest the need to increase taxes, including sales tax," said Yoshiki Shinke, economist at Dai-Ichi Life Research Institute in Tokyo. "The real obstacle is the lack of political leadership."

The ruling Democratic Party of Japan lost ground in the midterm elections in July after Kan proposes increasing the nation's 5 percent sales tax to restore the finances. Kan Cabinet's approval ratings fell to 21 percent, the lowest since he took office in June, the Asahi newspaper reported on 13 December.

To meet budget guidelines Kan, DPJ abandoned its promise to double the child care leaflets to households, which limits the increase to families with children under three years old.

'Troubling' initiatives

Yoshimasa Hayashi, a legislator from the opposition Liberal Democratic Party, said Khan plans expenses are increasing the risk of a bond market crash and his cabinet should implement more aggressive measures to restore fiscal health of the nation. "There are many worrying spending initiatives" in the proposed budget, said in an interview Dec. 20 in Tokyo.

bond yields in Japan are the lowest in the world. About 95 percent of holders of domestic investors. A total of ¥ 908800000000000 Japanese government bonds are outstanding, making the country the largest global debt market.

Japan is one of the four economies, together with Greece, Italy and Portugal, to the enhanced risk of needing a drastic reduction of the budget to avoid uncontrollable debt, according to an IMF report in September.

aging of the nation is also putting pressure on their chests. social security costs, which have risen more than 60 percent since 2000, representing 53 percent of next year's general expenses. Families receiving welfare payments rose to a record $ 1.4 billion in September as the data were compiled in 1951, according to the Ministry of Social Welfare.

There is good news

The Japanese government has said it plans to reduce corporate taxes by 5 percentage points next year to stimulate investment and employment without obtaining funds to cover about 1.5 trillion yen of losses of income. That may be a sign that Japan is losing its commitment to reduce its debt, "said Azusa Kato, economist at BNP Paribas in Tokyo.

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debt rating of Portugal was demoted one level by Fitch Ratings

debt rating of Portugal was demoted one level by Fitch Ratings, which said the economy faces a "deteriorating" prospects as the government struggles to contain the euro zone's fourth largest budget deficit.

The long-term issuer foreign and local currency default rating was reduced to A +, the fifth highest level, from AA-, Fitch said in a statement. The outlook is negative. March 24, Fitch cut the rating by one step to AA-. The company said in a separate report, the risk of the European Union will have to rescue other euro member states after rescue of Ireland and Greece.

"The downgrade reflects a further slow reduction in the current account deficit and financing environment much more difficult for the Portuguese government and the banks prior to joining Fitch rating and negative outlook assigned on March 24, 2010, and as impaired short-term economic prospects, "the rating company said.

The Portuguese government plans to cut salaries of state workers and raise taxes to convince investors that it can reduce the budget gap, after the Greek debt crisis led to an increase in borrowing costs for high-income countries deficit. Ireland became the second euro country to find the rescue and the first to request assistance from the European Financial Stability Fund last month.

Yield spread

The difference in performance between 10-year bonds Portuguese and German bonds, a benchmark in Europe, the euro hit a record was 483 basis points on November 11. The spread was 364 basis points yesterday.

The rating downgrade by Fitch announced it is "difficult to understand" at the present time in 2011 in Portugal, the budget has been approved and its banking system is "solid and strong," said the Finance Ministry yesterday in a comment sent by e-mail.

"The white structural budgetary adjustment in 2011 - equivalent to almost four per cent of GDP - will be difficult, especially if, as Fitch expects the economy goes into recession next year," said the rating company's statement yesterday.

The government is taking the necessary measures so that they do not have to ask for help, Finance Minister Fernando Teixeira dos Santos said on 15 December. Portugal faces no bond repayments until April and has completed sales this year of the debt. Borrowing costs increased by Dec. 15 sale of 500 million euros (655 million U.S. dollars) of bonds in three months.

Finance market

"The government has shown it can maintain access to market financing, albeit at a high cost during the crisis," Fitch said. "The current ratings are based on the Portuguese government to maintain market access and not assume that it is external financial support under a program of the EU and the IMF."

Moody's Investors Service said on December 21 Portugal bond rating may be downgraded one or two levels on the basis of that budget cuts will worsen the country "weak" economic growth. Moody's downgraded the credit rating two steps to A1 Portugal on 13 July.

Standard & Poor's said Nov. 30 it may lower the country's rating, after being cut to A-from A + in April. S & P yesterday affirmed the AAA rating in France.

Credit rating companies also review other countries. Moody's said Dec. 15 it may cut the rating Aa1 from Spain and on 16 December said that Greece placed bonds Ba1 ratings on review for possible downgrade. Ireland's credit rating was reduced five levels by Moody's on 17 December.

'Systemic' Crisis

Fitch said in a separate report yesterday that the crisis is "systemic" and is concerned about the viability of the single currency as a whole.

"While the economic fundamentals of the euro area credit are stronger than current levels of risk assessment indicates, Fitch believes that the crisis is systemic to the extent that it reflects concerns about the viability of the euro, as well as country-specific vulnerabilities, "the ratings company said in London.

Portugal has exports, such as paper and wood products to support economic growth, as spending cuts. The budget envisages a GDP growth of 0.2 percent in 2011, slower than previously estimated 1.3 percent this year. Portugal's economic growth has averaged less than 1 percent annually over the past decade, one of the weakest growth rates in Europe.

"The evidence that the economy was on a path of sustainable recovery, supported by adherence to the government's objectives of fiscal consolidation could lead to a revision in the rating outlook to stable," Fitch said yesterday.

Portugal 2011 budget includes the largest cuts in spending over three decades. In September, the government said it would cut the wage bill by 5 percent for public sector workers earning more than 1,500 euros a month, hiring freeze and increase value added tax by 2 percentage points to 23 percent to help to reduce the government deficit amounted to 9.3 percent of gross domestic product in 2009.

The country recorded the largest deficit of the 16-nation euro zone last year after Ireland, Greece and Spain. It aims to reduce its budget deficit to 7.3 percent of GDP this year, 4.6 percent in 2011, and reach the EU limit of 3 percent in 2012.

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The largest gains in Russia's actions in comparison with bond yields

The largest gains in Russia's actions in comparison with bond yields are encouraging more entries from venture capital fund in a year when the stakes rise in the price of raw materials will help extend the best rally among major emerging markets.

The 30 stocks in the Russian MICEX index have an earnings yield, or earnings as a proportion of stock price, from 11.1 percent. That is 1.9 times the yield of 5.85 percent in Russia in U.S. corporate bonds, according to JPMorgan Chase & Co. 's EMBI +. The average multiple of 2.05 percent since June is the highest for a period of half a year.

The Micex has gained 22 percent this year, beating rates of Brazil, India and China, the largest energy exporting country benefits from an increase of 26 percent oil in the last four months and expectations investors will join the World Trade Organization. Investors poured 2.6 billion U.S. dollars in funds from Russia's actions in this quarter, the highest since 2009 and four times the amount of bonds, according to data compiled by EPFR Global, a research firm in Cambridge, Massachusetts.

"There is a clear change in bond money from Russia goes to riskier instruments such as equities," said Mark Rubinstein, director of research at IFC Metropol in Moscow, in a telephone interview. "Investors see that the majority of first-rate bonds are paying 5 percent or less."

The yield on dollar bonds sold by the Russian companies has fallen 14.5 percentage points since October 2008 of 20.4 percent, according to JPMorgan Chase & Co. 's EMBI +. Russian average is less than the 6.21 percent yield for corporate bonds in Brazil, according to the index.

Gazprom, Severstal

The revenue performance of OAO Gazprom, the Russian monopoly over gas exports, is 21.5 percent. bonds of the state-owned company in dollars maturing in 2015 was 4,493 per cent yesterday.

OAO Severstal, Russia's largest steelmaker, more than double in the bag Micex stock this year, the biggest gain in the stock market in Moscow in 2010. That compares with a return of 20 percent of total dollar bonds maturing in 2013 the Cherepovets-based company.

"Russia is the flavor of the month between the strategists of emerging market equities," said Brad Durham, a co-founder of Global EPFR, the comments via email. "The market is trading at an attractive valuation and the expectation of higher profitability in the energy sector in the coming year is to benefit energy companies in Russia."

The MICEX index rose 16 percent this quarter, beating a 4.8 percent rise for the MSCI Emerging Markets Index, after a performance below the first three quarters.

Evraz, Mechel

Evraz Group SA, Russia's second largest steelmaker, rose 14 percent in the last month, and OAO Mechel, the country's largest producer of coal for steelmakers, surged 20 percent of commodities went up and gave Russia one step closer to WTO accession by signing an agreement with the European Union on 7 December. Russia's bid to host the 2018 World Cup contributed to the gains as the government prepares to spend 3.8 billion U.S. dollars on stadiums and expanding airports and highways.

The earnings performance for the Micex is more than twice the rate of China's Shanghai Composite Index and India's Sensex index of 5.4 percent compared with Brazil's Bovespa index at 7.3 percent
.

Tickets for capital funds this quarter is the highest since the 2.85 billion U.S. dollars received in the last quarter of 2009 and the third-largest total since the first quarter of 2006, when Russia took funds at $ 3.8 billion, the data show EPFR.

"Hot money"

"Speculative hot money" in exchange-traded funds contributed to the influx, "said Chris Weafer, chief strategist at UralSib Financial Corp.

BlackRock Inc., the largest money manager, opened its iShares MSCI Russia cap index fund on 10 November. It follows Van Eck Associates Corp. 's Market Vectors Russia Foundation was created in April 2007 and SSgA Fund Management Inc.' s SPDR S & P Russia ETF, which began in March 2010.

"ETFs are very dynamic and driven flow we are seeing a lot, especially after iShares launched the fund," Weafer said in a telephone interview on 22 December in London. "But the money from the ETF tends to be much less stable than investment funds, which charge higher fees and have more time horizons."

Russian bonds in 2020 the dollar rose, pushing the yield 13 basis points below 5.01 percent. The extra yield investors demand to hold the Russian debt rather than U.S. Treasuries fell 4 basis points to 196 yesterday, according to JPMorgan Chase & Co. 's EMBI + index. The difference compared to 140 for Mexico's debt with similar qualifications and 179 for Brazil, two steps that is rated below Baa3 by Moody's Investors Service.

Spreads, swaps

The yield of Russian bonds is 43 basis points below the average for emerging markets, the biggest difference since 21 October, according to JPMorgan.

The cost of protecting Russian debt against default by five years using credit-default swaps fell 2 basis points yesterday to 147, below the peak year of 217, according to data provider CMA. The contracts pay the buyer face value in exchange for the underlying securities or the cash equivalent of a borrower fail to adhere to its debt agreements.

Swaps credit-default for Russia, rated Baa1 by Moody's, the third lowest investment grade rating, cost of 6 basis points more than the contracts in Turkey, classified as four levels lower than Ba2. Russia swaps cost as much as 40 points lower on 20 April.

The ruble, which is administered by the central bank against a dollar-euro basket to limit swings, was little changed at 30.6100 per dollar in Moscow yesterday, its strongest level since 11 November. non-deliverable, which provide a guide to the expectations of currency movements and interest rate differentials, to show the depreciation of the ruble at 30.8500 per dollar in three months.

The slower growth

While yields are higher incomes in Russia, companies in the other BRIC nations benefit from higher rates of economic growth. Russian economic growth at 3.8 percent this year compared with 7.5 percent in Brazil, 9.7 percent in India and 10.5 percent in China, according to forecasts by the International Monetary Fund Washington.

Russian stocks are outperforming oil traded above $ 90, the highest price in two years. Russian efforts to win 10 to 20 percent in 2011, with the market slowdown in the second half of the year, interest rates and inflation rises, Rubinstein said Metropol.

"The rotation is certainly the case with most of the entries in the accounting firms of second and third, because of the ratings better," said Gregory Klumov, head of Moscow-based investment Everest Asset Management, which oversees about $ 300 million in the e-mail comments on 22 December.

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The government of China does not draw enough demand in a sale bill for the second time in a month

The government of China does not draw enough demand in a sale bill for the second time in a month as seasonal demand and higher cash reserve ratios on the left banks with less money.

The Ministry of Finance sold 16.76 billion yuan ($ 2,530,000,000) of securities to 91 days, below the planned target of 20 billion yuan, according to a statement on the website of Chinabond, the nation's largest home debt clearance. The average yield was 3.68 percent gain, above the 3.22 percent rate for similar debt maturity in the secondary market yesterday.

China needs to return to a "prudent monetary policy" to contain prices and money supply control, the People's Bank of China said in a statement posted on its website today. While inflationary pressures are increasing, regulators will allow a reasonable growth of loans, the statement said.

"Banks are very short of cash," said Qu Qing, bond analyst at Shenyin Wanguo Securities Co. in Shanghai. "Given the cash crunch, the central bank probably will not announce any measures of adjustment later this year."

The repurchase rate seven days, which measures the cost of loans between banks, has more than doubled in the last two weeks and yesterday reached a maximum of three years of 5.67 percent, according to daily fixings published at 11 hours by the National Center for interbank funding. The rate fell seven basis points to 5.60 percent today.

Rate Swaps

The interest rate swap one year, the fixed cost for receiving floating payments, has fallen 25 basis points from a maximum of two years he played on 29 November, reflecting ease speculation the central bank will raise rates interest as the credit crunch worsened. The index fell one basis point today to 3.14 percent. Policy makers on December 10 ordered lenders to set aside more money as reserves for the third time in five weeks to contain inflation.

The lack of liquidity has also undermined the demand for tickets sold by the central bank. The monetary authority has sold one billion yuan in tickets a year in each of his last four auctions per week, amounts lower sales since October 2007.

"The market is desperate for cash," said Chen Liang, bond analyst at Guohai Securities Co. in Shenzhen. "It's too expensive to park your money with the debt at a given price the interest rate of seven days has risen above 5 percent."

Acceleration of inflation

The yield of 3.67 percent in October 2020 was little changed at 3.81 percent, and the price of safety was at 98.89, according to the China Interbank Bond Market.

The Ministry of Finance sold 11.55 billion yuan in bills to 91 days on 26 November, less than the expected 20 billion yuan. The average yield was 2.74 percent. China's inflation accelerated to a maximum of 28 months from 5.1 percent in November, the statistics office said on 11 December.

The yuan has risen 0.3 percent since 06 December, when 30 senators sent a letter to Chinese Vice Premier Wang Qishan, calling for the yuan to "appreciate significantly" before the visit of President Hu Jintao Washington next month.

The currency strengthened 0.24 percent to 6.6270 per dollar at 4:30 pm close, the biggest gain since 09 November, according to the China Foreign Exchange Trade System. It increased by 0.43 percent this week, the biggest weekly gain since October.

"Some banks may be buying the local currency in the foreign exchange market because it is difficult to borrow money in fixed income," said Li Tao, a foreign exchange trader at Shenzhen Development Bank Co. in Shenzhen. "There is also the concern of the appreciation may fastest ahead of the visit of President Hu Jintao."

Delivery within twelve months rose 0.13 percent to 6.4993 per dollar, reflecting the currency bets strengthen 2 per cent in a year.

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The 10-year German bonds posted their first weekly gain since early November

The 10-year German bonds posted their first weekly gain since early November as renewed concern about the indebted countries of the region demand driven by dams as a refuge.

The yield on the Bund, government security benchmark in Europe, fell from about seven months reached on 16 December. Portuguese bond denied that his rating was downgraded by Fitch Ratings, which also said it may cut Greece to non-investment grade. AAA rating in France was confirmed yesterday by Standard & Poor's with a stable outlook. Spanish bonds rose.

"The concerns about the periphery are still valid to enter the new year and that has been essential to support bonds," said Eric Vara, interest rate strategist at Lloyds Corporate Bank. "Without a dramatic surprise of the political leaders of the EU, I can not see the situation change."

The yield on the 10-year Bund ended the week to 2.98 percent from 3.03 percent on Dec. 17, while two-year yield fell to 0.96 percent from 1.06 percent. The Portuguese 10-year production rose to 6.84 percent from 6.68 percent, and the Irish equivalent yield gained 62 basis points to 9.22 percent. Spanish production of 10 years fell four basis points to 5.52 percent.

debt rating was downgraded one level Portugal yesterday by Fitch Ratings to A +, which said the economy faces a "deteriorating" prospects as the government struggles to contain the euro zone's fourth largest budget deficit. The outlook is negative. The rating may be cut one or two levels by Moody's Investors Service, the company said on 21 December.

Ratings Downgrades

Greece may have its credit rating cut to non-investment grade by Fitch Ratings within six weeks after a review of the nation "fiscal sustainability", the agency said Dec. 21. Moody's downgraded credit rating five levels of Ireland on 17 December and said that further reduction is possible for the government struggles to stem losses in the banking system in the country.

Fitch said in a separate report, the risk of the European Union will have to rescue other euro member states after rescue of Ireland and Greece.

"While the economic fundamentals of the euro area credit are stronger than current levels of risk assessment indicates, Fitch believes that the crisis is systemic to the extent that it reflects concerns about the viability of the euro, as well as country-specific vulnerabilities, "the ratings company said.

The euro will overcome the crisis in the region of deficit and support the international monetary system, Song Zhe, China's ambassador to the European Union, said yesterday.

Chinese Vice Premier Wang Qishan said on December 21 his country had taken "concrete steps" to help the European Union with their debt problems.

German bonds returned 6.1 percent this year compared with 5.4 percent for U.S. Treasuries. Ireland bonds gave investors a loss of 14 percent, bonds 20 percent Greek and Portuguese bonds 8.1 percent, the indexes show....

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Goldman Sachs Group aid bonuses may be granted depending on future earnings

Goldman Sachs Group Inc. which weighs 2,010 packages to pay for a year that could have the character of Wall Street "the second best", said bonuses may be granted depending on future earnings, as well as stock performance.

Prizes will go to "key employees" and linked to a series of financial measures, including income, net income and return on capital, an indicator of profitability, the company based in New York, said yesterday in a regulatory filing. Prizes may include cash, securities or other components linked to equities, and provisions that allow you to cancellation or return.

The plan is a tool of the compensation committee can be used to further align incentive compensation with long-term performance, "said Stephen Cohen, spokesman for the company. Cohen declined to provide figures on potential payments, saying that the awards have not been established.

The regulators have encouraged banks to design pay packages of top employees would discourage excessive risk-taking, after a financial crisis ended with firms such as Lehman Brothers Holdings Inc. and led to government bailouts. Most companies have interpreted the guidance to emphasize deferred stock awards of cash bonuses.

Goldman Sachs new program aims to ensure "that the structure of the company's incentive compensation is balanced and consistent with safety and soundness of the company," according to the filing. Non-combustible "reckless risk-taking," he said.

Recipients are selected by the compensation committee of the board, according to the filing, which did not specify eligible executives.

"Inappropriate risk"

Payments may be withheld or recovered if the company determines, for example, that an employee who participates in the risk analysis materially inaccurate or not enough to raise concerns about the risks, "according to the filing. Previous awards have also included provisions to recover the call.

The new plan, approved by the Compensation Committee of 17 December, was announced after markets closed in New York yesterday, the last trading session before Christmas.

Goldman Sachs and the four largest U.S. companies by the investment banking and trading revenue - JPMorgan Chase & Co., Bank of America Corp., Citigroup Inc. and Morgan Stanley - are set to complete his two-year best investment banking and trading. Probably have a better fourth quarter in the last two periods, driven by capital subscription and increased trading volume in stocks and bonds. Even if the quarter is only the third match, revenues higher than any year except 2009.

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renewable energy funds suffered outflows record this year reversing its direction from 2009

renewable energy funds suffered outflows record this year reversing its direction from 2009, as money managers like BlackRock Inc. said the credit crisis dimmed the outlook for solar energy projects and wind energy.

Investors took € 931 million ($ 1.2 million) in the first 10 months, eclipsing the withdrawal of the entire year in 2008, when the global financial crisis spooked investors, according to data compiled by Lipper Inc. The past year clean energy funds captured € 1300000000 new money, Lipper said.

More stringent conditions for loans for clean energy projects, increased competition from Chinese manufacturers and the reduction of subsidies from European governments beaten some of the stocks that were the favorites of fund managers by 2010, as Vestas Wind Systems A / S, the world's largest wind turbine manufacturer. The funds that held oil and gas companies were winners, an independent survey said.

"The actions of the new energy markets and related is significantly affected by the credit crisis," said Robin Batchelor, manager of the $ 2900000000 BlackRock New Energy Fund, in an e-mail. Lower demand for energy and "the fact that governments are perceived as many new concerns in their agenda combined to create a difficult environment," he said. New York, BlackRock is the world's largest money manager.

conventional energy stocks saw the largest increase in farms and were the biggest gamble of funds, according to a survey by Bank of America Merrill Lynch of 209 fund managers control of 569 billion, took place December 3 to December 9 .

Environmental Funds

Clean energy settlement is a blow to the politicians in the U.S., Japan and the European Union pledged last year in Copenhagen at the ramp of the investment, and that will channel $ 100 billion a year in aid of climate for developing countries in 2020.

Extended to the withdrawal of environmental funds, net withdrawals of 373 million euros, also a record, according to Lipper, a subsidiary of New York, Thomson Reuters Corp.

At BlackRock, as clean technology fund is one of the world's largest asset was reduced to $ 2,900,000,000 October 31 $ 3,800,000,000 12 months earlier, and the fund's value fell by 8 percent. That suggests that clients pulled about 560 million euros, or 15 percent of assets.
A BlackRock spokesman did not immediately comment on the calculation. Batchelor refused to comment on the outputs.

Climate negotiators meeting in Cancun, Mexico, signed an agreement to limit global warming to 2 degrees Celsius (3.6 degrees Fahrenheit) without reaching an agreement on how. current commitments of individual nations are within 4 degrees of warming by 2100, according to climate scientists interactive model warming scenarios.

The best, worst results

"There was a positive step, but without the urgency or the scale needed to achieve the target of 2 degrees," said Peter Sweatman, Executive Director of Climate Strategy & Partners, a consulting firm based in Madrid. "The warning lights are flashing red."

The worst performing fund of energy and the environment clean in the Lipper database that follows the return of individual pools Azem Hornet Renewable Energy Asset Management AG II, which lost 24 percent in the 12 months to 30 September investing in stocks such as SMA Solar Technology AG and Meyer Burger Technology AG. The best performance was that of Jupiter Environmental Income Fund, managed by Christopher Watt, who won 18 percent. Watt did not immediately respond to requests for telephone and email for comment.

183 Tracked Funds

This year's sell-off reduced the total money invested for 183 renewable energy and environmental funds Lipper tracks to € 12100000000 13.4 million euros at the end of last year.

U.S. investment fell this year amid investor doubts about the government's energy policy, while the sovereign debt crisis has limited growth prospects in Europe. The governments of Germany, Spain and Italy, reduced subsidies for solar panels.

The industry is "exhausted," said Thiemo Lang, director of 510 million euros the Group Holding AG SAM Smart Energy Fund. "There are price pressures, there are concerns about reducing the incentives and there are concerns about the ability of the new production will lead to an oversupply."

Luxembourg-based fund Lang, whose share price fell 6.6 percent in the first 10 months, has attracted new investments of more than 70 million euros this year.

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The funds of emerging equity markets posted net withdrawals for the first time since May

The funds of emerging equity markets posted net withdrawals for the first time since May, in the week ended Dec. 22 amid concerns China will continue tightening monetary policy, cutting a record year for entries, EPFR Global, said .

For the year, emerging markets funds have taken action on a record of 92.5 billion U.S. dollars and bond mutual funds in developing economies the income of 52.5 billion U.S. dollars, almost seven times their income previous year in history.

"Uncertainty about inflationary trends, the investor fear of being caught on the wrong side of controls on capital and profit-making basis kept the pressure on EPFR Global emerging market funds up to enter the last week of 2010, "the Massachusetts-based research company in an emailed statement.

China's central bank raised bank reserve requirements on 10 December for the third time in five weeks as inflation accelerated at its fastest pace in 28 months in November. Housing prices in 70 Chinese cities rose 7.7 percent in November from the previous year, even after the government raised borrowing costs for the first time in three years, suspended to purchase mortgages from a third country and pledged to introduce a property tax.

The Shanghai Composite Index fell 0.5 percent as of 11:30 am local time during a retreat of 1.8 percent per week. The measure has lost 13 percent this year, making China among the worst-performing stock markets in Asia. The MSCI Emerging Markets Index, tracking 21 developing nations, sank 0.2 percent, breaking a three-day gain.

Global stock funds took in 4.5 billion U.S. dollars during the week, while bond funds had net redemptions of $ 2.3 million, according to research firm.

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Apollo agreed to pay $ 1.2 billion for distressed real estate loans held by Credit Suisse Group

Apollo Global Management LLC agreed to pay $ 1.2 billion for distressed real estate loans held by Credit Suisse Group AG, according to a person familiar with the deal.

Mortgages are backed by buildings in Europe, said the person, who requested anonymity because the deal has not been made public.

The demand for commercial real estate loans has increased as banks around the world to strengthen balance sheets and start selling non-strategic real estate assets. Private equity firms TPG Capital and KKR & Co. really have competed ING Groep NV of the real estate investment unit, people familiar with the matter. Morgan Stanley said last month that the European real estate stocks will probably exceed the broader market in 2011.

Apollo, last month completed the purchase of real estate investment unit of Citigroup Inc., the addition of more than $ 3 billion in assets under management.

Rick Matthews, a spokesman for out of Apollo, declined comment, as Steven Vames, a spokesman for Credit Suisse.

The Wall Street Journal reported that the agreement with Credit Suisse today. Credit Suisse has already written loans below its par value of $ 2.8 billion, the Journal said.

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an independent consultant in California pleaded guilty and agreed to cooperate with federal prosecutors in a widening U.S

Karl Motey, an independent consultant in California, pleaded guilty and agreed to cooperate with federal prosecutors in a widening U.S. investigation insider trading on Wall Street.

Motey pleaded guilty in federal court in Manhattan on Dec. 14 of conspiracy and securities fraud, according to court documents released today. He got up tips from multiple sources to Marvell Technology Group Ltd. and provided the information to hedge fund clients, according to the charging document.

Motey agreed to tell prosecutors about a regime insider trading that ran from 2007 to March 2009, according to court documents. Also reveal details of advice he received from a source with Taiwan-based United Microelectronics Corp. and "employees of a California hedge fund," according to court documents.

An accomplice who does not identify "provided inside information to Karl Motey" on "and Marvell Marvell customers," according to the criminal information.

Chitung Liu, Hsinchu, financial director at Taiwan-based UMC, said he had not heard of the case and had not been contacted by U.S. authorities. The company has strict controls on its internal information, he said.

Tate Tran, a spokesman for Marvell, did not immediately return voicemail messages left at his work and mobile phones today. Lee Altshuler and Alexandra Shapiro, Motey lawyers did not return phone calls seeking comment.

Smartphone processors

Motey appears on the records of the state of California as an agent in Los Altos, California, Inc., based Coda Group, formed in 2000. A message left at his home was not returned.

Marvell, based in Hamilton, Bermuda, makes the processors that run smartphones. United Microelectronics is the global chip manufacturer contract second.

Prosecutors announced last week on charges of abuse of privileged information against four people working in technology companies and a fifth man, James Fleishman, who worked in a company of expert networks, Primary Global Research LLC. Of those five, Daniel DeVore, former manager of global supply of Dell Inc., pleaded guilty and is cooperating with prosecutors.

According to the complaint last week, prosecutors had the help of four other people besides DeVore. The Wall Street Journal reported on December 20 Motey who was one of them. He is identified in court papers as "CW-2."

In the complaint last week, prosecutors said they recorded a phone call between "CW-2", which was then cooperating with the government, and Fleishman, whose work in the global primary dealers was put in contact with so-called experts working in public enterprises.

'Winning design'

"During the call, CW-2, Fleishman provided with a list of things that CW-2 wanted to learn from a consultation about Marvell, Marvell including whether he had obtained a" design win "in Western Digital and Seagate," the complaint said, referring to Western Digital Corp. and Seagate Technology Plc.

A design win is when a technology company has chosen to use another company's product in their products.

Since October 2009, federal prosecutors in New York have filed charges against two dozen operators of hedge funds, corporate information, the network expert executives and lawyers as part of a campaign against the extension of use privileged information. At least 16 have pleaded guilty. As Motey, many have agreed to assist the government in exchange for leniency. When he is sentenced, Motey faces up to 25 years in prison, prosecutors said.

Among those charged in the investigation of insider trading is Raj Rajaratnam, co-founder of Galleon Group LLC. He faces trial in February and denies irregularities.

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Buffett unit buys agricultural products Ironwood, plastics, automobile manufacturer, pumps

Warren Buffett's Berkshire Hathaway Inc. is expanding its CTB, Inc., a manufacturer of feeder pigs and farm equipment, by the addition of a Michigan-based producer of plastic components used by the automotive industry and the military.

CTB bought Ironwood Plastics, which was founded in 1979 and has manufacturing facilities in Michigan and Wisconsin, a subsidiary of Berkshire, said in a statement posted on its website. Terms were not disclosed.

Buffett, 80, has financed the expansion CTB from Omaha, Nebraska-based Berkshire bought the maker of PigTek and Chore-Time products in 2002. CTB, whose predecessor was founded in 1952 to serve farmers of poultry and livestock, later expanded into grain storage.

"The combination of Ironwood Plastics' management skill and process along with its wide variety of plastic processes will open up many new possibilities for us," said Director General Victor Mancinelli CTB in the statement.

Ironwood enter the agricultural market expansion outside the U.S. and Canada, while maintaining service for existing customers, the statement said.

Ironwood is custom precision molded plastics for automotive, military and industrial, including parts for bomb fuses, sensors and gauges of electric car, said Mark Stephens, president of the company, in an interview. The company has about 165 employees, Stephens said. He declined to disclose annual revenue. CTB has over 1,100 employees, Berkshire said in its latest annual report.

Stephens co-founded the company with his father Gordon, according to the statement CTB. Mark Stephens will continue to run the business along with Rick Faustich Ironwood, CTB said.

Buffett said in October that he prefers to keep the former owners after the acquisitions, because they have a "passion" for their companies.

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Tokyo Electric Power may sell bonds in dollars For the first time in at least 13 years

For the first time in at least 13 years, Tokyo Electric Power Co. may sell bonds in dollars and the falling demand cuts size of the bid denominated in yen.

Demand for tickets to the biggest company in Asia for energy has been reduced to the central bank's policy of near zero interest rates pushed the average yield of AA utility debt rated below five years of notes relevant government for the first time in at least five years. Bond sales by Tokyo Electric, or Tepco, have fallen to an average of about 30 billion yen (359 million dollars) each year, from 50 billion yen in 2007 and 2008.

"We want to use the foreign sales of bonds as a tool for fundraising," said Chief Financial Officer Masaru Takei in an interview on December 7 in Tokyo. "We like to think markets such as sales of big bonuses are possible."

The sales of yen-denominated debt by international companies taking advantage of the world's lowest cost loans rose 34 percent this year to 1.74 trillion yen. That sent the rebate to transfer dollars to yen loans through cross-currency interest rate swaps to 57 basis points, the biggest advantage in developed markets, and stimulated a fourfold increase in sales of dollar bonds by Japanese companies to $ 17.6 billion, according to the data.

TEPCO last sale of dollar bonds was in June 1997 when it raised $ 500 million over 10 years 7125 Eurobond percent to yield 26 basis points more than U.S. Treasuries similar maturity. A sale would be the first new U.S. currency by a Japanese non-financial company since 2007.

Narrower spreads

The difference in bond yields versus Tepco Japanese government bonds fell last year, giving investors less incentive to buy new titles. ten-year notes Tepco sold this year were priced from 7 to 9 basis points more than government notes, compared to as much as 13 basis points in 2009.

The average yield of utility debt five years of AA fell 9 basis points above the reference debt on December 22 from 17 earlier this year, after declining to 0.1 basis points below the government's performance on 15 November.

Companies raised less money this year, even as the number of sales increased to 457. Bond sales fell 16 percent to 9.6 trillion yen last year's record ¥ 11,400,000,000,000 which led to the fall of 1664 confidence in the Topix index companies to cut capital spending in the last three months of 2010.

Lower sales

The gross domestic product will shrink 1.9 percent this quarter as spending Prime Minister Naoto Kan stimulus fades, the government-affiliated Economic Planning Association, said earlier this month, citing the forecasts of economists. the second largest economy in the world is struggling to end deflation, a prolonged fall in prices discourages investment media revenues and profit margins.

TEPCO, rated Aa2 by Moody's Investors Service and AA by Standard & Poor's, sold 30 billion yen in bonds to 10 years in September with a return of 7 basis points more than government bonds. The company, which supplies energy to 28.6 million customers, up ¥ 235 000 000 000 in eight domestic sales this year, an average of 29 billion yen issue, the smallest since at least 1999 . The average size has decreased every year since 2007 when it rose ¥ 650 000 000 000 in 12 offerings, or 54 billion yen issue.

"The spread of the bonds of utility is at a historic low," said Yasunobu Katsuki, Mizuho Securities Co. 's primary credit analyst. "There is so much liquidity in terms of public debt as it used to be."

Willing to pay

Tepco sold 300 million Swiss francs (313 million) of 2.125 percent notes due 2017 in March, its first foreign currency bond since the collapse of Lehman Brothers Holdings Inc. in September 2008. Were to yield about 14 basis points more than the rate of exchange in Switzerland, according to TEPCO. The stock has returned 0.8 percent, while the company's 1.73 percent notes of 2017 yen gained 1.9 percent.

TEPCO, which has 732 billion yen in debt due next year and 675 billion yen in 2012, is willing to pay higher rates of foreign debt to improve its image in global bond markets, "said Takei. "We would like to sell foreign currency bonds once a year," he said.

Third, the highest rating

The company may also use bank loans, "said Takei. Sold 407 billion yen of new shares in October to fund a management plan 10 years including the construction of a new nuclear plant.

The cost of protecting company debt from default for five years rose to 42 basis points on December 22, 1934 at the end of last year, after reaching a maximum of 11 months from 58 February 11. The Markit iTraxx Japan index default swaps of 50 investment grade borrowers fell 32 basis points this year to 102. The contracts pay the buyer face value in exchange for the underlying securities or the cash equivalent of a government or a company fails to meet its obligations.

TEPCO will reduce profit forecasts by 40 percent to 80 billion yen in the year to March 2011, while revenue rose 7.4 percent to 5 trillion yen.

Yen weaker

The company can return to dollar markets both expensive and analysts forecast that the yen will weaken to 12 per cent next year. Japan's currency has depreciated by 3.6 percent to 83.16 yen yesterday, and it reached a 15-year high of 80.22 in November, the performance advantage offered by Treasuries widened.

Treasury bonds to ten years rose 55 basis points, or 0.55 percent, this month to 3.35 percent yesterday, while Japanese government bonds due in 1135 were similar percent on December 22, a drop of five points. Japanese financial markets were closed yesterday for a public holiday.

Sales of so-called Samurai bonds, yen-denominated debt of borrowers outside Japan, rose to ¥ 1740000000000 this year of 1.33 trillion yen in 2009, the largest increase since 2007.

The Samurai sales growth helped reduce the exchange of yen every five years at least 63 basis points on December 1, the highest since March 2009. A negative rate means that borrowers debt swap yen into dollars at a discount. Borrowers often use the base currency swaps to exchange floating-rate payments in one currency to another.

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My wife celebrates cancer lesson for Health Care

In July 2008, my wife Linda was diagnosed with advanced squamous cell carcinoma of the oral cavity. Further treatment has led me to see the U.S. health care from a different perspective. Linde What I've learned over the past two years has expanded my core beliefs about medicine. In sum, while amazing advances have been made and the miracles that are occurring, medicine remains as much an art.

I have spent almost 40 years in the business side of health care industry, including the last seven as CEO of a health plan. I thought my network serve us well. I figured it had clear answers to questions about the best treatment plan and the best suppliers.

What I learned was that for rare diseases such as Linde, if not all diseases in general, clear answers are often lacking. Never forget a doctor tells me that the information sought was not available and would have to trust my instincts. This is pretty incredible when you think about the quantity and the society we spend on health.

The new federal health care reform promotes the adoption of health technology information and supports comparative effectiveness research to understand the marginal contribution of new drugs, devices and procedures. But what we have learned to treat Linde is that data on innovations, especially for less common diseases, is not sufficient to create an overview of the evidence-based medicine.

Risk Adjustment

Often medical research, even when coordinated and summed across the industry, does not have enough patients with a particular disease to test alternative treatments with scientists - trial and error - methods. I can not tell you how many times I've heard of doctors who each patient is different.

The same deficiency exists for assessing the professional experience of a particular treatment for a disease. To evaluate a doctor or treatment is necessary to adjust for differences in risk in patients. In general, it is more difficult to care for an elderly patient a younger. Similarly, the treatment of patients with diabetes is more difficult than those without. There are thousands of risk factors and standards for them is difficult if not impossible.

This has implications for what we consider the best places to get care and how the medical performance should be reported. We really do not want doctors to avoid the most risky to achieve better grades.

Work in Progress

Faced with these limitations, clinicians often rely on their understanding of the underlying disease process to decide the best course of action. Major medical organizations convene panels of experts to provide opinions about the most effective method for diagnosis and treatment. The work of these groups is important, but sometimes their views are later proved to be incorrect.

The human genome has recently developed a promise to get an overview of the disease process, but is a work in progress.

In short, there is not much hard science as you wanted.

So what do we do? I wish there was an answer that offer real value. After all, I am a business executive who runs a health plan providing benefits to thousands of employers. I'm also a taxpayer who supports government programs. Unfortunately, no such guarantees, but there are steps we can take.

Best Course

As a society, we must be honest about the limitations of treatment. Patients should be well informed about what the industry knows and does not know. There should be openness about the likelihood that care for the worse rather than better. Patients should be empowered to be responsible for the treatment.

In recognition of the uncertainties patients face, we must acknowledge their grief with compassion and fear. We need a lawyer that aggressive intervention is not always the best course of action.

I share these conclusions do not indicate dissatisfaction, Linde and I are grateful for your attention. His doctors including the country's most respected physicians, who did what they were trained to do - aggressively seek a cure.

Rather, these observations are offered to challenge the U.S. industry health care to be more explicit about the medical treatment as much an art as a science and to provide emotional and spiritual support to enhance the experience of the patient and the caregiver.

Disease Course

There may be an economic benefit to this. As patients learn more about the limits of medicine, some may choose less intensive and costly care. As a nation, our rising health care costs as patients near the end of life.

Since its inception, Linde cancer has returned twice. The first time, went on a brave and courageous fight. The second time, he learned that additional treatment would be painful, risky and probably leave a partial disability and deformed. He also said the probability of having a longer life and high quality was remote.

With this knowledge, he opted for palliative care facilitate quality of life over prolonging life. My acceptance of his decision, though difficult, was the best way I could show my love and support.

Linde celebrates its doctors for being great teachers. They were sincere, patient, non-clinical terms used, and shared their uncertainty about the effectiveness of the proposed treatment. Your support of it as the decision maker was wonderful.

Linde and I chose to share our trip because we expect the understanding of medicine has developed will be useful to others.

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