GLOBAL TRADER INDICATOR

January 22, 2010

FW: (BN) Top Stories: Commodities

Jan. 22 (Bloomberg) -- The following are the day's top stories
on commodities:

Sugar May Advance 20% in First Half on Supply Gap, Top Thai Exporter Says
Sugar futures may climb 20 percent by June, extending the
rally to the highest level since November 1980, as global
demand exceeds supply, said Thai Sugar Trading Corp., the
country's top exporter. Prices could increase to 35 cents a
pound by mid-year, Piromsak Sasunee, the general manager, said
in an interview. Raw sugar for March delivery, the most active
contract, ended at 29.26 cents a pound in New York yesterday.
India, China, Indonesia, Pakistan, Egypt and Russia are among
nations planning to buy sugar to cool domestic prices,
straining supplies forecast by broker Czarnikow Group Ltd. to
lag behind demand by 13.5 million tons in the 2009-2010 season.
Sugar had its biggest annual gain since 1974 last year because
of rains and drought in Brazil and India, the largest growers.
``The market remains bullish,'' Piromsak said in Bangkok
yesterday. ``The price is on an upward trend. India will be a
key factor driving the market this year.'' Thailand is the
world's second-biggest exporter.

Copper Slumps to One-Month Low as Metals Drop on Chinese Lending Concerns
Copper dropped to a one-month low and was set for its worst
week in six as industrial metals fell on concern China will
take more steps to slow growth and after U.S. President Barack
Obama proposed to cut bank risk-taking. Copper for three-month
delivery on the London Metal Exchange fell as much as 1.1
percent to $7,194 a metric ton, the lowest price since Dec. 24.
The metal gained 0.7 percent earlier as its discount to
Shanghai increased, spurring Chinese buying. The contract
traded at $7,265 a ton at 2:24 p.m., down 2.2 percent this
week, the most since the week ended Dec. 11. China's record
bank lending and $586 billion stimulus spending drove raw
material demand and helped prices more than double last year.
Imports by China climbed for a second month in December to
244,013 tons, extending a rebound from an 11-month low, the
customs office said yesterday. ``Metals are pressured by
concerns about China's tightening,'' said Chen Jian, an analyst
at Minmetals Haiqin Futures Co.

Commodities Have Further to Advance This Year, Hermes Fund's O'Shea Says
Commodities, as measured by the S&P GSCI Light Energy
Index, may gain as much as another 10 percent this year, led by
oil, sugar and coffee, according to Colin O'Shea, head of
commodities at Hermes Fund Managers Ltd. The index, which
Hermes uses as a benchmark, advanced 15 percent last year,
buoyed by Chinese demand for oil, copper and other commodities.
The gauge has a 36 percent weighting in energy, 30 percent in
agriculture and almost 18 percent in industrial metals, based
on data from Jan. 21. ``Last year, we had very strong demand
from emerging markets, particularly from China,'' said O'Shea,
who forecast a gain of 5 percent to 10 percent in the index and
manages 1.2 billion pounds ($2 billion) across three funds.
``Will demand continue? We believe so, albeit at a lower
rate.'' China's economy, the world's largest copper consumer
and second-biggest oil user, accelerated to the fastest pace
since 2007 in the fourth quarter, the statistics bureau
reported yesterday. The World Bank on Jan. 20 raised its
forecast for 2010 global growth to 2.7 percent, compared with
an estimate in June of 2 percent.

India's Commodity Futures Turnover May Rise 43% to Record, Regulator Says
Turnover on commodity exchanges in India, the world's
biggest gold consumer, may rise 43 percent to a record this
year on higher prices and volumes, the industry regulator said.
Commodities worth 75 trillion rupees ($1.63 trillion) may trade
on India's 22 exchanges in the year ending March 31, up from
52.5 trillion rupees a year ago, B.C. Khatua, chairman of the
Forward Markets Commission, said in an interview in Mumbai. The
forecast compares with his June estimate for a gain of more
than 20 percent. Copper, sugar and lead prices doubled last
year, helping raw materials post the biggest annual gain in
four decades, as Chinese demand compensated for the slump in
the world economy. Commodity bourses in China, closed to
foreigners like those in India, clocked a record turnover of
$19 trillion in 2009. ``Given the limitations on international
players, and the corporates are not there in a big way, the
growth has been pretty satisfactory,'' Khatua said. ``In the
current year the growth is somewhere around 45-50 percent.
That's pretty good.''

Oil Advances on Inflation Outlook as Dollar Link Fades: Chart of the Day
Crude oil prices will move in tandem with investor
expectations for higher inflation as last year's inverse link
to the U.S. dollar fades, Morgan Stanley said. The CHART OF THE
DAY plots oil, the euro-dollar exchange rate and expected
inflation -- measured as the spread between nominal and
inflation-linked 10-year Treasuries, or TIPS. All three moved
together until the middle of December, when crude rose even as
the euro weakened versus the dollar, a currency move that has
typically been bearish for oil. ``The TIPS market is signaling
that the market is starting to price in higher inflation
expectations, and we think this will become an increasingly
important driver of oil prices going forward,'' Morgan Stanley
analysts Hussein Allidina and Seth Kleinman said in a report.
The New York-based bank said it expects the dollar to
strengthen 10 percent versus other developed-market currencies
this year, a move that won't hold back a rally in crude. Last
year, oil futures surged 78 percent in New York as the dollar
fell to a one-year low against the euro in November.

Gold May Rise in London as Weaker Dollar and Three-Week Low Spur Purchases
Gold, little changed in London today, may climb as a weaker
dollar and the metal's drop to a three-week low prompt
investors to buy. The dollar slid as much as 0.5 percent
against the euro on concern a U.S. proposal to curb financial
institutions' risk trading will deter investors from buying
assets in the world's largest economy. Bullion, which yesterday
fell to the lowest price since Dec. 30, usually moves inversely
to the greenback. ``Yesterday we had a lot of pressure on gold,
and overnight we've seen some physical demand,'' said Afshin
Nabavi, a senior vice president at bullion refiner MKS Finance
SA in Geneva. ``The physical market thinks these prices are
fantastic to buy at. The dollar is also a little bit lower.''
Gold for immediate delivery added $1.05, or 0.1 percent, to
$1,095 an ounce at 8:57 a.m. local time. The metal is down 3.2
percent this week, headed for its biggest slide in six weeks.
Bullion for February delivery was 0.8 percent lower at
$1,094.60 on the New York Mercantile Exchange's Comex division.

Rubber Drops Most in Four Months as Obama Plan Spurs Yen Rally, Stock Sale
Rubber slumped by the most in four months on concern that
investor demand will weaken after a U.S. proposal to restrict
risk-trading spurred a rally in the yen and a sell-off in
global stocks. Futures in Tokyo tumbled as much as 5.8 percent,
the most in intraday trading since Sept. 14. President Barack
Obama called for limits on the trading activities of banks as a
way to prevent another financial crisis. The yen rose to a
one-month high against the dollar and Japan's Nikkei 225 Stock
Average lost 2.6 percent, erasing most of this year's advance.
``Investors were cutting holdings of risk assets because of the
proposed restrictions on U.S. financial institutions,''
Kazuhiko Saito, an analyst at Tokyo-based broker Fujitomi Co.,
said today by phone. ``Rubber was dragged down by losses in the
equities and metals markets.'' Rubber for June delivery lost as
much as 17.5 yen to 285.1 yen per kilogram ($3,158 a metric
ton) before settling at 289.3 yen on the Tokyo Commodity
Exchange. It fell 3.0 percent this week, the worst performance
since the week ended Dec. 11. Prices have still gained 4.8
percent this month.

Chinese Steel Demand Growth to Continue on Demand from Builders, CISA Says
Steel demand in China, the largest consumer of the metal,
will continue to grow, a research department at the China Iron
& Steel Association said today. ``Industries including housing,
automakers, shipbuilding and machinery will continue to grow
fast,'' which will support steel demand, the association known
as CISA said today in a research report on its Web site. The
State Council recently approved a combined 882 billion yuan
($129 billion) investment in subway projects in 22 cities, it
said. China's growth rate accelerated 10.7 percent in the
fourth quarter, the fastest pace since 2007, as the nation's
$586 billion stimulus spending and record lending stoked car
and property sales. China's crude steel output rose 14 percent
to a record 568 million metric tons last year. The country,
which surpassed the U.S. as the world's largest auto market in
2009, may continue to see a ``hefty'' rise in demand this year,
the China Securities Journal reported Dec. 17, citing Baoshan
Iron & Steel Co. General Manager Ma Guoqiang. Baoshan, the
listed unit of China's biggest steelmaker, controls half of
domestic market for automobile sheets.

Soybean Cash Premiums Widen in the U.S. on Increased Purchasing by China
Cash premiums for soybeans shipped to export terminals near
New Orleans widened against Chicago futures after U.S.
exporters reported new sales to China, the biggest global buyer
and consumer. The so-called spot-basis bid, or premium, for
soybeans delivered this month rose to 60 cents to 63 cents a
bushel above March futures on the Chicago Board of Trade
yesterday from 55 cents to 62 cents on Jan. 20, government data
show. Bids for soybeans delivered in the second half of
February jumped to 54 cents to 58 cents from 47 cents to 55
cents on Jan. 20. The cash premium ``is firmer for soybeans''
because of increased export demand, said Charlie Sernatinger, a
Fortis Clearing Americas LLC vice president in Chicago. ``The
Chinese continue to pick away at business, a cargo at a time.''
China bought 230,000 metric tons (8.5 million bushels) from
U.S. exporters, including 55,000 tons for delivery by Aug. 31
and the rest in the marketing year that begins on Sept. 1, the
Department of Agriculture said yesterday. China's imports rose
14 percent to almost 42.6 million tons last year, a record.

Furukawa-Sky Expects 11% Jump in Aluminum Sales as Japan's Demand Recovers
Furukawa-Sky Aluminum Corp., Japan's biggest processor,
forecasts sales will climb 11 percent in the next fiscal year
as the nation's economy recovers from its worst postwar
recession. Sales will probably rise to 407,000 metric tons in
the year beginning April 1 from 368,000 tons this year, when
the economic slump slashed demand by 9.6 percent, Katsuyasu
Niibori, general manager at the company's corporate planning
department, said in an interview in Tokyo. Reviving demand in
Japan, Asia's biggest aluminum user after China, may support
the global price, which rallied 45 percent last year.
Furukawa-Sky supplies 30 percent of the nation's flat-rolled
products for autos, cans and construction. The Tokyo-based
company, along with rivals such as Kobe Steel Ltd., benefitted
from government rebates and tax cuts that boosted sales of
fuel-efficient vehicles. ``We expect sales next fiscal year
will return to the level in 2008-2009,'' Niibori said
yesterday. ``The recovery in domestic demand will probably
continue, although it will take more time for sales to reach
the peak volume in 2006-2007.''

Orange Juice May Rise as January Freeze in Florida Cuts Crop: Chart of Day
Orange-juice futures may rise as much as 28 percent in the
first half of this year because of crop losses from a January
freeze in Florida, said James Cordier, the founder of
OptionSellers.com. The CHART OF THE DAY shows annual crop
output in Florida, the world's second-biggest orange grower,
compared with Cordier's forecasts for a drop in production and
a price rally. Futures also may get a boost from an increase in
consumer spending, he said. ``Orange juice is extremely
undervalued,'' Cordier said in a telephone interview from
Tampa, Florida. ``If there's still optimism about the economy,
if that continues through the first and second quarter, orange
juice could easily trade to $1.75'' a pound, he said. That
would mark the highest price since May 2007. The 2010 harvest
may shrink to 128 million boxes because of freeze damage,
Cordier said. On Jan. 12, the U.S. Department of Agriculture
affirmed an estimate of 135 million boxes, already the lowest
in three years. The projection didn't reflect the impact of the
cold spell. A box of oranges weighs 90 pounds, or 41 kilograms.

Rice Prices Unlikely to Ease Until at Least March, According to UN Agency
Rice prices are unlikely to fall before March as major
exporters restrict overseas sales amid lower supplies,
according to the United Nations' Food and Agriculture
Organization. ``Prices are unlikely to subside before newly
harvested crops reach the market in March/April,'' the FAO said
in an e- mailed statement. Rice exports dropped in China,
Pakistan, Thailand and the United States and government curbs
in India and Egypt also restrained the availability in 2009, it
said. Rough rice has advanced 22 percent on the Chicago Board
of Trade from last year's low as the Philippines, the biggest
buyer, accelerated purchases to secure supplies after storms
destroyed at least 1.3 million metric tons of the crop. Concern
India may become a net importer after a drought also lifted
prices. Production last year totaled 678 million tons, a
decline of 2 percent from a year earlier, it added.

Gold May Fall Next Week as Rebounding Dollar Curbs Demand, Survey Shows
Gold may decline as a rebounding dollar curbs demand for
the metal as an alternative investment, a survey showed. Twelve
of 17 traders, investors and analysts surveyed by Bloomberg, or
71 percent, said bullion would fall next week. Four forecast
higher prices and one was neutral. Gold for delivery in
February was down 2.9 percent for this week at $1,097.70 an
ounce at noon in New York yesterday. Bullion is little changed
this year, erasing a gain of as much as 6.1 percent, as the
U.S. Dollar Index, a six-currency gauge of the strength of the
greenback, rebounded from a drop of as much as 1.6 percent. The
metal fell for the sixth time in seven weeks last week.
``Dollar strength is being accompanied by increased risk
aversion and weaker equities,'' said Walter de Wet, an analyst
at Standard Bank Ltd. ``We now find it difficult to see major
upside for the metal in coming weeks.''

Rusal Said to Raise $2.2 Billion in First Russian Company IPO in Hong Kong
United Co. Rusal Ltd., the world's largest aluminum
producer, raised HK$17.4 billion ($2.2 billion) in the first
initial public offering by a Russian company in Hong Kong, said
three people familiar with the sale. The company, controlled by
billionaire Oleg Deripaska, priced 1.61 billion new shares, or
a 10.6 percent stake, at HK$10.80 each, said the people, who
declined to be identified before a public announcement. The
final pricing gives Rusal a market value of $21 billion, about
12 percent less than Aluminum Corp. of China Ltd., the nation's
largest producer of the metal. Rusal offered the shares at
HK$9.10 to HK$12.50. The offering, delayed by regulators at
least twice on concern about Rusal's borrowings, comes less
than two months after the Moscow-based company completed
Russia's biggest corporate debt restructuring. Deripaska, also
chief executive officer, persuaded Hong Kong billionaire Li
Ka-shing, Malaysia's Robert Kuok and New York hedge fund
Paulson & Co. Inc. to invest. ``Thanks to the SFC these
professional investors got it a lot cheaper than they would
have otherwise,'' said Hong Kong- based Ben Collett, head of
equities at broker Louis Capital Markets (Hong Kong) Ltd.,
before the final pricing. ``Looking to the future, I suspect
the quality of these listings will decline, ironically, as the
confidence increases.''

For the complete stories summarized here, and for more of
the day's top news, see TOP <Go>.

-0- Jan/22/2010 9:41 GMT
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December 17, 2009

(BN) Top Stories: Stocks

+-----------------------------------------------------------------------
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Top Stories: Stocks
2009-12-17 09:19:37.502 GMT

Dec. 17 (Bloomberg) -- The following are the day's top stories on
stocks:

Stocks in U.S. Erase Advance as Bond Yields Rise on Interest-Rate
Concern
U.S. stocks erased most of their advance after yields on 10-year
Treasury notes rose on concern the Federal Reserve is preparing
investors for higher interest rates next year. Metal producers, energy
companies and financial institutions in the Standard & Poor's 500 Index
advanced more than 0.4 percent, the steepest gains among 10 industries.
Intel Corp. retreated 2.1 percent, leading the Dow Jones Industrial
Average's decline, after U.S. regulators accused the world's largest
computer-chip maker of illegally stifling competition. The Standard &
Poor's 500 Index added 0.1 percent to 1,109.18 at 4 p.m. in New York,
almost wiping out all of a 0.8 percent. The Dow average lost
10.88 points, or 0.1 percent, to 10,441.12. The yield on 10-year notes
touched 3.60 percent. ``When you see materials, financials and energy
leading, it means the market fears higher prices and inflation,'' said
Joseph Veranth, chief investment officer at Dana Investment Advisors in
Brookfield, Wisconsin, which manages $2.8 billion. In the S&P 500,
``Market participants are going to the sectors that will perform well
in that environment.''

Tudor Jones Turns Away Investors as Hedge-Fund Industry Outflows Persist
In a year when investors pulled an estimated $118 billion from
hedge funds through November, Paul Tudor Jones was one of at least six
managers who decided it was time to turn away cash. BVI Global Fund
Ltd., Jones's biggest, stopped taking new investments after bringing in
$1.3 billion from March to July, according to a person with knowledge
of the matter. Brookside Capital Partners LP and Woodbine Capital
Advisors LP also have closed or restricted inflows, said people
familiar with the firms, who asked not to be named because the funds
are private.
Institutions and wealthy individuals have sought out managers with
consistent long-term gains, especially those with funds previously
closed to new investors. After firms such as D.E.
Shaw & Co. and Polygon Investment Partners LLP froze or limited
redemptions, investors also gravitated to funds that avoided such steps
or eased restrictions quickly. ``Those managers that honored their
agreements and treated their investors as partners during the last 18
months of economic difficulties are being rewarded with additional
money this year,'' said Debra Pipines, founder of New York-based
Asperion Group LLC, which raises capital for hedge funds.

TPG's Kraton IPO Sells Below Purchase Price as Private-Equity Deals
Falter
TPG sold a stake in Kraton Performance Polymers Inc. in an initial
public offering for less than it paid to buy the chemical maker, as
investors extracted the third price cut from a private equity-led IPO
in two days. The maker of polymers used in adhesives and lubricants
raised $139 million at $13.50 a share yesterday, after buyers rejected
an offer of much as
$18 each, Bloomberg data show. The IPO price was a penny lower than
what TPG and JPMorgan Chase & Co.'s buyout arm spent on average for
Kraton, a Dec. 2 filing showed. A day earlier, Carlyle Group and
Goldman Sachs Group Inc. accepted 21 percent less than they sought for
Cobalt International Energy Inc., an oil explorer with no revenue or
profits, while investors extracted concessions from Blackstone Group LP
for its IPO of Team Health Holdings Inc. While owners have used the
biggest rally in the Standard & Poor's 500 Index since the Great
Depression to unload $12 billion in stock since September, companies
from AEI to HealthPort Inc. that were backed by private-equity funds
have postponed initial offerings.
Investors are demanding better terms as leveraged-buyout firms count
on IPOs to exit some of the $2 trillion in LBOs they made since the
start of 2004. ``The pendulum has swung toward the public-market
investors,'' said Giri Cherukuri, who helps manage $1.7 billion at
Oakbrook Investments in Lisle, Illinois.
``These private- equity firms ended up paying very high prices because
of cheap capital, and now they want to get any money they can out of
it. They just need money, so investors are taking advantage of their
position as buyers of capital.''

U.S. Treasury Delays Sale of Citigroup Stake as Shares Priced at
Discount
Citigroup Inc., the last of the four largest U.S. banks to seek
funds to exit a taxpayer bailout, raised $17 billion by selling stock
for a price so low that the U.S. delayed plans to shrink its one-third
stake in the lender. Citigroup sold 5.4 billion shares at $3.15 apiece,
less than the $3.25 the government paid when it acquired its stake in
September. The New York-based bank said the Treasury won't sell any of
its shares for at least 90 days. Investors demanded a bigger discount
from Citigroup than Bank of America Corp. or Wells Fargo & Co., which
together raised more than $31 billion this month to exit the Troubled
Asset Relief Program. Wells Fargo, which trumped Citigroup's bid to buy
Wachovia Corp. last year, leapfrogged its rival by completing a $12.25
billion share sale Dec. 15. JPMorgan Chase & Co. repaid $25 billion in
June. ``The market cast its vote and they're low down on the ballot,''
said Douglas Ciocca, a managing director at Renaissance Financial
Corp. in Leawood, Kansas. ``Citigroup needs to show steps to reinstall
the quality of the brand.''

Greenspan Says S&P 500 Rally Cuts Stimulus Needs as Household Wealth
Rises
The biggest stock market advance in seven decades is reducing the
need for additional government stimulus measures, according to former
Federal Reserve Chairman Alan Greenspan.
The Standard & Poor's 500 Index's 64 percent jump since March made
Americans richer by restoring $5.4 trillion to U.S.
equities and helped spur a 1.3 percent increase in retail sales last
month, data compiled by Bloomberg and the Commerce Department show.
``The stimulus is only a third spent, and its order of magnitude is not
large enough to compare with the strength and power of the remarkable
global equity increase that's occurred since early March,'' Greenspan,
83, said in a telephone interview yesterday from Washington. ``Capital
gains have proved a far greater stimulus than one can attribute to the
$787 billion program that has been only partially spent.''
Increasing spending beyond the $11.6 trillion already pledged may also
be unnecessary because higher stocks will help boost profits and make
loans easier to come by, Greenspan said.
Earnings among S&P 500 companies are forecast to rise 65 percent in
the fourth quarter, ending the longest series of declines since World
War II, data compiled by Bloomberg show.

European, Asian Shares Drop as Banks Fall; U.S. Stock-Index Futures Slip
European stocks fell for the first time in six days as the Federal
Reserve signaled it will remove most emergency measures and Standard &
Poor's cut its rating for Greece. Asian shares and U.S. futures
dropped. National Bank of Greece SA led European lenders lower. Bank of
Ireland Plc and Allied Irish Banks Plc declined at least 2.7 percent.
Westpac Banking Corp., Australia's second-largest bank by market value,
slid 1.1 percent in Sydney. Shire Plc retreated 1.8 percent after UBS
cut its recommendation on the shares. The Dow Jones Stoxx 600 Index
decreased 0.2 percent to 249.76 at 9:08 a.m. in London, snapping its
longest winning streak since September. The benchmark gauge for
European equities has rallied 58 percent since March 9, leaving it
valued at 56 times its companies'
reported earnings, near the highest level since 2003, weekly data
compiled by Bloomberg show. U.S. stocks erased most of their advance
yesterday after the Fed's policy statement.
Standard & Poor's 500 Index futures retreated 0.2 percent today, while
the MSCI Asia Pacific Index slid 0.8 percent.

FTSE 100 Drops as Fed Signals Stimulus Removal; Barclays, Antofagasta
Fall
U.K. stocks dropped, led by financial and raw-material shares,
after the Federal Reserve signaled it will remove more emergency
measures. Barclays Plc and Antofagasta Plc slid at least 1.2 percent
after a Fed statement yesterday said deterioration in the labor market
is abating, paving the way for it to rein in stimulus packages. JJB
Sports Plc, the unprofitable U.K. sporting goods retailer, sank 5.4
percent after reporting a slump in sales. The benchmark FTSE 100 Index
slid 27.04, or 0.5 percent, to 5,293.22 as of 8:21 a.m. in London. The
index has rebounded 51 percent since March and is heading for its
biggest annual gain since 1997 as central banks cut interest rates to
record lows and governments worldwide committed about $12 trillion to
revive the economy. The FTSE All-Share Index lost 0.5 percent today and
Ireland's ISEQ Index fell 0.7 percent. Barclays, Britain's
second-largest bank, slid
1.2 percent to 288.55 pence. Antofagasta declined 2 percent to
925 pence.

DAX Index Snaps Five-Day Advance as Bayer, Infineon Technologies Decline
German stocks dropped for the first time in six days, falling from
the highest level since September 2008, as the Federal Reserve signaled
it will remove most of its emergency aid and Standard & Poor's
downgraded Greece. The benchmark DAX Index declined 0.4 percent to
5,877.90 as of 9:46 a.m. in Frankfurt. The measure has rallied 60
percent since March 6 as Europe's largest economy exited recession,
fueled by government spending and a recovery in exports. The broader
HDAX Index also slipped 0.4 percent today. The Fed, after concluding a
two-day meeting yesterday, said most of its lending programs would
expire as scheduled Feb. 1 because of ``improvements in the functioning
of financial markets.'' Greece's credit rating was cut by Standard &
Poor's and the company threatened to take further action unless Prime
Minister George Papandreou tackles the European Union's largest budget
deficit. Germany said today it will sell 343 billion euros ($494
billion) of debt next year, according to the country's Federal Finance
Agency.

Asian Stocks Decline, Led by Financial Companies, on Interest-Rate
Concern
Asian stocks fell, led by financial companies, on expectations the
U.S. Federal Reserve will raise interest rates next year and after Hong
Kong's central bank said the city is at risk of ``sharp corrections''
in asset prices. Westpac Banking Corp. dropped 1.1 percent in Sydney
and China Overseas Land & Investment Ltd. lost 2.1 percent in Hong
Kong. National Australia Bank Ltd. tumbled 4.7 percent after saying it
will sell stock to fund the purchase of AXA Asia Pacific Holdings Ltd.
FAW Car Co.'s 4.5 percent plunge led declines in Shanghai on concern a
flood of share sales will divert funds from existing equities. Rio
Tinto Group, the second-biggest producer of iron ore, advanced 1.2
percent as the Fed said the economy is improving. The MSCI Asia Pacific
Index dropped 0.9 percent to 118.53 as of 3:12 p.m. in Tokyo, erasing
an earlier 0.1 percent advance. The gauge has climbed 32 percent this
year on signs government spending and lower interest rates bolstered
economies. ``With the improving economic data, investors are looking at
the possibility that the stimulus packages will be pulled out earlier
than expected and that interest rate increases would follow,'' said
Marvin Fausto, who helps manage
$9.56 billion as chief investment officer at Banco de Oro Unibank Inc.
in Manila, the nation's largest bank by assets.
``An early exit and increase in interest rates can throw the ongoing
recovery off track.''

Japan Stocks Drop, Reversing Gains; Banks Lead Declines, Developers Fall
Japanese stocks fell as banks slid on investor concerns that
yesterday's gains were excessive. Commodity producers rose on higher
prices for oil and metals. Sumitomo Mitsui Financial Group Inc.,
Japan's second- biggest lender by market value, declined 1.5 percent
after a 14 percent surge yesterday after the Nikkei newspaper reported
banks will be given at least 10 years to implement stricter capital
rules. Mitsubishi UFJ Financial Group Inc., Japan's No. 1, lost 1.3
percent.
Mitsubishi Estate Co., a property developer, slumped 2.7 percent as
foreclosure auctions increased. Inpex Corp., Japan's largest energy
exploration company, advanced 3.6 percent after crude oil climbed the
most in a month. ``Yesterday's gains were excessive,'' said Takeshi
Osawa, a senior fund manager in Tokyo at Norinchukin Zenkyoren Asset
Management Co. ``It's difficult for long-position investors to keep
buying bank stocks without seeing growth strategies.'' The Nikkei 225
Stock Average fell
0.1 percent in the last seconds of trading to close at 10,163.80 in
Tokyo. It rose as much as 0.8 percent during the day. The broader Topix
index dropped 0.2 percent to 896.28 after changing directions at least
nine times in the afternoon session.

China Stocks Are World's Worst Performer as Shares Decline on IPO
Concerns
China's stocks fell, making the benchmark index the world's worst
performer, on concern a flood of new share sales will divert funds from
existing equities and faster global economic growth will spur
interest-rate increases. Auto companies FAW Car Co. and Chongqing
Changan Automobile Co. led declines among consumer-discretionary stocks
on the prospect investors will sell this year's best-performing shares
to take part in initial public offerings. Shanghai Bailian Group Co.,
the listed unit of the biggest retailer, slid 4.2 percent on concern
that higher borrowing costs may damp consumer spending as growth
accelerates. ``Money is drying up and the pace of new share sales
hasn't shown any sign of slowing down,'' said Wu Kan, a Shanghai-based
fund manager at Dazhong Insurance Co., which manages about $285
million. ``The weak sentiment will carry on.'' The Shanghai Composite
Index dropped 76.14, or 2.3 percent, to 3,179.08 at the close, the
lowest since Nov. 27.
The index's three-day losing streak is the longest since the period
ended Sept. 29. It was also the world's worst performing index today
out of the 90 measures tracked by Bloomberg.

Stay `Constructive' on Stocks in 2010 as Economies Strengthen, Mowat
Says
Investors should ``stay constructive'' on stocks next year as the
global economy recovers and other asset classes become more costly,
according to JPMorgan Chase & Co. Technology and bank shares may be the
best bets because of rising demand and improving financial markets,
Adrian Mowat, JPMorgan's chief Asian and emerging markets strategist,
said in a Bloomberg Television interview from Hong Kong. The global
recovery also means bond yields will rise and the attraction of gold
will lessen, he also said. ``The outlook for equities next year is
going to be very good, both in developed and emerging markets,'' Mowat
said. ``It's going to be a story about growth next year. It's also a
story where other asset classes are quite expensive.'' The MSCI AC
World Index, tracking both developed and developing markets, has gained
31 percent this year, rebounding from last year's record 44 percent
slump. Only six of the 90 benchmark stock indexes tracked by Bloomberg
worldwide have retreated this year.

For the complete stories summarized here, and for more of the day's
top news, see TOP <Go>.

-0- Dec/17/2009 9:19 GMT

(BN) Top Stories: Bonds

+-----------------------------------------------------------------------
-------+

Top Stories: Bonds
2009-12-17 09:23:46.340 GMT

Dec. 17 (Bloomberg) -- The following are the day's top stories on
bonds:

Treasuries Rise as Greece Rating Cut, Stock Losses Spur Demand for
Safety
Treasuries rose, pushing the yield spread between two- and 10-year
notes to the widest in more than three decades, after Standard & Poor's
cut Greece's debt rating and the Federal Reserve signaled interest
rates will stay low. Yields fell from near a four-month high after S&P
said it would take further action unless Prime Minister George
Papandreou tackles the European Union's largest budget deficit,
spurring demand for the relative safety of U.S. debt. Federal Reserve
policy makers yesterday reiterated a pledge to keep interest rates
``exceptionally low'' for an ``extended period.'' ``The short-end of
the Treasury market is a place to be,'' said David Schnautz, an
interest-rate strategist in Frankfurt at Commerzbank AG. ``The Fed
pledged to keep rates low, and people are looking for the safest place
to park their money as liquidity is drying up into the year end.
There's still a lot of risk out there, and Greece is a good example for
that.''
Ten-year yields fell 3 basis points to 3.56 percent as of 8:15 a.m. in
London, according to data compiled by Bloomberg. The
3.375 percent security due November 2019 rose 7/32, or $2.19 per
$1,000 face amount, to 98 14/32. The yield climbed as high as 3.62
percent on Dec. 15, the most since Aug. 13, from the record low of 2.04
percent on Dec. 18, 2008.

California's Bonds Fail on Wall Street Advice Bill Lockyer Couldn't
Refuse
For California Treasurer Bill Lockyer, the offer from Goldman
Sachs Group Inc., JPMorgan Chase & Co. and Citigroup Inc. was too good
to refuse. If California was willing to forgo competitive bidding for a
$4.5 billion bond offering, the banks promised more orders from
individuals and a lower bill to the taxpayers. The firms insisted that
by negotiating with them, the state would benefit from its special
relationship with the Wall Street troika and wind up with what two
underwriters called a salutary ``buzz'' to boost demand for the debt.
When the October offering failed to sell as planned, California was
forced to accept 8 percent less money than it needed and to pay as much
as $123 million more in interest than the banks said was sufficient for
the market. And the threesome made $12.4 million on the deal,
contributing to record bonuses in the securities industry a year after
getting a total of $80 billion in a federal bailout. ``Just because
someone earns a big wad of money doesn't mean that they can do what
they say they can do,'' said Marilyn Cohen, who watched the sale unfold
from Los Angeles as president of Envision Capital Management, which
oversees $250 million in bonds for individuals. ``And shame on the
state if they were drinking that Kool-Aid.''

Fed Signals Markets Return to Health While Extending Low Rates for
Economy
Federal Reserve officials declared financial markets healthy
enough to remove most emergency aid without going as far on their
support for the U.S. economy. The Fed, after concluding a two-day
meeting yesterday, said most of its lending programs would expire as
scheduled Feb. 1 because of ``improvements in the functioning of
financial markets.''
Policy makers said the labor market is stabilizing yet kept a pledge
to keep interest rates ``exceptionally low'' for an ``extended
period.'' The statement reinforced economists'
forecasts that the Fed will wait from six months to a year before
raising borrowing costs. By confirming plans to end its aid to bond
dealers, short-term debt markets and money-market mutual funds, the Fed
signaled it sees a waning in the ``unusual and exigent'' conditions
that prompted creation of the programs in 2008. ``The nastiness of the
storm has dissipated,'' said Paul Ballew, a former Fed economist who's
now a senior vice president at Nationwide Mutual Insurance Co.
in Columbus, Ohio. ``Concern about the financial market has passed,
but they're looking at weak labor markets and sluggishness in the real
economy.''

LCH.Clearnet Begins Backing Interest-Rate Swaps for Banks, Their
Clients
LCH.Clearnet Ltd., Europe's largest clearinghouse, began
guaranteeing trades today between banks and their clients in the $342
trillion interest-rate swaps market. The London-based clearinghouse's
SwapClear Client Clearing Service is the first to back trades between
banks and hedge funds, asset managers and pension funds. SwapClear has
been guaranteeing interest-rate swaps between banks since 1999 and
accounts for more than half that market. About $146 trillion in
notional interest swaps between banks and clients that isn't cleared
could be processed by its new service, LCH.Clearnet said in an emailed
statement. Regulators in the U.S. and Europe are pushing the financial
industry to improve the over-the-counter derivatives market structure
after last year's bankruptcy of Lehman Brothers Holdings Inc., one of
the largest OTC dealers, froze trading and cost investors hundreds of
millions of dollars. Clearing interest swaps may generate $190 million
in annual revenue by 2013, according to Morgan Stanley. ``It's a very
significant market event to get clearing extended out to a wider
audience,'' Chris Willcox, global head of rates trading at JPMorgan
Chase & Co. in London, said in a telephone interview. ``At the core of
the offering is the robust and tested default management process, which
has been through the flames and proven itself to be successful,''
Willcox said.

Peru Poised to Win More Debt Upgrades, Credit Suisse, Societe Generale
Say
Peru is poised to receive more credit-rating increases after
Moody's Investors Service moved it to investment grade because the
country is posting above- average growth while keeping its budget
deficit under control, said Credit Suisse Group AG and Societe Generale
SA. Moody's raised Peru's foreign debt rating one level to Baa3, the
lowest investment-grade level, from Ba1 late yesterday, more than a
year after Standard & Poor's and Fitch Ratings made identical moves.
Moody's said Peru was able to prevent the global recession from sending
the local economy into a ``hard landing'' by bolstering government
spending. ``It sets up a trajectory for more upgrades,'' Igor Arsenin,
an emerging-market strategist at Credit Suisse in New York, said in a
telephone interview. ``The fundamentals look clean when compared with
other investment-grade countries. It reminds everybody of the positive
momentum in Peru.'' The Andean nation's credit-default swaps trade
almost on a par with Israel and Poland, countries that are rated at
least four levels higher by Moody's. It costs 1.21 percentage points to
protect Peru's debt against default for five years, compared with 1.20
points for Israel and Poland, according to CMA Datavision. Peru's cost
was 1.92 points six months ago.

Auction-Rate Investors Get Rematch After First Five Fraud Suits
Dismissed
Auction-rate securities investors who sued banks including
Citigroup Inc. and UBS AG to recoup billions of dollars in losses went
0 for 5 as their first cases were thrown out. Now some are gearing up
for a rematch over part of the $149 billion in securities that remain
outstanding. In three of the class actions, judges allowed the
investors to refile their complaints after finding the initial suits
failed to prove they lost money or satisfy a 1995 federal
securities-fraud law designed to discourage frivolous stock-loss suits.
Citigroup, UBS and Raymond James Financial Inc. have again asked that
the cases be tossed out. ``The private litigation has run into a brick
wall,'' said James Cox, a law professor at Duke University in Durham,
North Carolina. The legal bar for bringing such lawsuits has been too
high for auction-rate investors to surmount, he said. Those investors
may need a change in federal law if the 1995 act proves too big an
obstacle for genuine claims, said Elizabeth Warren, who chairs the
congressional oversight panel monitoring the Troubled Asset Relief
Program. She suggested the idea for a Consumer Financial Protection
Agency.

Greek Government Bonds Decline After S&P Signals It May Add to Rating
Cut
Greek bonds fell after Standard & Poor's cut the country's credit
rating and threatened to take further action unless Prime Minister
George Papandreou tackles the European Union's largest budget deficit.
The euro also slid against the dollar and the yen after S&P said in a
statement yesterday it lowered the rating by one level to BBB+ from A-.
Fitch Ratings cut Greece's debt to the same level on Dec. 8. The yield
on the benchmark 10-year Greek government bond has increased 52 basis
points this month to 5.51 percent, the highest among the 16 euro-region
countries. Papandreou pledged on Dec. 14 to implement ``radical''
measures to fix the budget. ``The market is telling you that there's
concern at the implementation of the plans,'' said Steven Major, global
head of fixed-income research at HSBC Holdings Plc in London. ``There's
a lot of positive talk from Greek officials going round, but the market
needs to see some action.'' The yield on Greece's 10-year bond rose 7
basis points to 5.8 percent as of 7:47 a.m. in London.
The 6 percent security maturing in July 2019 dropped 0.5, or 5 euros
per 1,000-euro ($1,441) face amount, to 102.99. The euro weakened 0.9
percent versus both the dollar and the yen.

Germany Plans to Issue Record Amount of Debt Next Year as Deficit Swells
Germany will sell a record amount of debt next year as rising
unemployment costs and weak tax revenue swell the budget deficit. Sales
of government securities will rise to 343 billion euros ($494 billion)
from 329 billion euros this year and 213 billion euros in 2008, the
Federal Finance Agency said today in a statement. The planned issuance
includes 207 billion euros of bonds and 136 billion euros of
money-market instruments, or securities that mature within 12 months.
Chancellor Angela Merkel's draft budget shows net federal borrowing
surging to 86 billion euros in 2010, from 37 billion euros this year.
Finance Minister Wolfgang Schaeuble has said the public-sector deficit
at federal, state and municipal levels will increase to 6 percent of
gross domestic product next year, the biggest since the inception of
the euro in 1999.
The Federal Finance Agency, which holds bond sales on the government's
behalf, said it may sell 3-4 billion euros of index-linked bonds each
quarter. It will also sell 30-year bonds, first issued in 2008, four
times next year.

Corporate Bond Risk Increases in Europe, Credit-Default Swap Prices Show
The cost of insuring European corporate bonds against default
rose, according to traders of credit-default swaps.
Contracts on the Markit iTraxx Crossover Index of 50 companies with
mostly high-yield credit ratings climbed 7 basis points to 478,
according to JPMorgan Chase & Co. prices at 7:32 a.m. in London. The
index is a benchmark for the cost of protecting bonds against default
and an increase signals deterioration in perceptions of credit quality.
The Markit iTraxx Europe Index of 125 companies with investment-grade
ratings rose 1 basis point to 80.5, JPMorgan prices show. A basis point
on a credit-default swap contract protecting 10 million euros ($14.4
million) of debt from default for five years is equivalent to 1,000
euros a year.

NAB to Buy Axa Asia's Australia, N.Z. Units for $4.2 Billion, Trumping
AMP
National Australia Bank Ltd. bid A$13.3 billion ($12
billion) for Axa Asia Pacific Holdings Ltd., scuttling AMP Ltd.'s
joint offer with French insurer Axa SA and winning approval from the
wealth manager's independent directors. The bank offered A$6.43 a share
for Axa Asia Pacific, beating the
A$6.22 bid by AMP and Axa SA, which owns 54 percent of Axa Asia
Pacific. The deal is conditional on Axa SA's agreement to buy Axa Asia
Pacific's units in eight Asian countries, according to a statement
today. The deal leaves AMP, Australia's second-largest asset manager,
empty-handed after what it called its ``best and final'' bid was
rejected today. National Australia Bank is paying A$4.6 billion for Axa
Asia Pacific operations in Australia and New Zealand, adding to assets
acquired in its purchase of Aviva Plc's local units in June.
``It will be a lot of work over the next three years digesting this,''
said Prasad Patkar, who helps manage $1.6 billion at Platypus Asset
Management in Sydney. The bank may underperform its rivals as it
integrates the units, he said.

Japan's Bonds Gain a Third Day on Speculation Interest Rates Will Stay
Low
Japan's bonds rose for a third day, the longest winning streak in
a month, after the Federal Reserve's pledge to keep interest rates low
backed speculation the Bank of Japan will hold borrowing costs near
zero next year. Ten-year yields fell to the lowest level in a week as
economists forecast Japan's central bank will leave its benchmark rate
at 0.1 percent at the end of a two-day policy meeting tomorrow. The
Ministry of Finance sold 2.6 trillion yen ($29 billion) in two-year
government notes today. ``The gloomy picture of future deflation will
mean the BOJ will have to stick to lower rates, so bonds are a safe
place to be,'' said Takashi Nishimura, an analyst in Tokyo at
Mitsubishi UFJ Securities Co., a unit of Japan's largest bank by
assets. The yield on the 1.3 percent bond due December 2019 fell one
basis point, or 0.01 percentage point, to 1.245 percent as of 4:23 p.m.
in Tokyo at Japan Bond Trading Co., the nation's largest interdealer
debt broker. The price rose 0.089 yen to 100.488. Yields earlier
declined to
1.24 percent, the lowest since Dec. 10.

Philippine Bonds Rise as Central Bank May Signal Rates to Stay Low Today
Philippine seven-year bonds gained on speculation the central bank
will today signal borrowing costs will remain at a record low to spur
growth. The peso declined. Bangko Sentral ng Pilipinas will hold the
rate it pays lenders for overnight deposits unchanged at 4 percent for
a fourth straight meeting when it announces the decision at 4 p.m.
local time, according to all 16 economists surveyed by Bloomberg News.
Gross domestic product increased 0.8 percent in the third and second
quarters, near the least in a decade. ``Bond yields will benefit if
Bangko Sentral keeps interest rates low for a period of time,''
said Angeline Sia, a fixed- income trader in Manila at BPI Asset
Management, which oversees 440 billion pesos ($9.5 billion). ``Growth
is still quite weak and the government's spending is constrained
because of the widening budget deficit.
The central bank may have to bear the burden of boosting economic
growth.'' The yield on the 7 percent note due January
2016 dropped five basis points to 7 percent as of 9:42 a.m. in Manila,
according to quotes from Tradition Financial Services.
A basis point is 0.01 percentage point.

Philippine Dollar Bond Demand to Rise on Fed's Rate Policy, Tetangco
Says
The Philippines may see a rise in investor demand for its dollar
bonds after the Federal Reserve reiterated U.S. interest rates will
stay low for ``an extended period,'' central bank Governor Amando
Tetangco said today. The Fed's comments should cap U.S. Treasury yields
and ``see some increase in risk appetite toward emerging-market dollar
bonds,'' including the Philippines, Tetangco said in a mobile phone
message. The Philippines last week sought clearance from the U.S.
Securities and Exchange Commission to sell $3 billion of overseas debt.
Officials said previously the nation was looking at selling
euro- and yen-denominated securities in 2010 and to continue tapping
the dollar bond market. The Philippines raised $3.25 billion from three
U.S. currency note offerings this year.
Developing economies including the Philippines ``will take advantage
of opportunities the current low interest-rate environment presents,''
Tetangco said. ``There is appetite for emerging-market debt as was seen
in the way recent bond issuances were received,'' he said.

For the complete stories summarized here, and for more of the day's
top news, see TOP <Go>.

-0- Dec/17/2009 9:23 GMT

(BN) Top Stories: Currencies

+-----------------------------------------------------------------------
-------+

Top Stories: Currencies
2009-12-17 09:15:59.737 GMT

Dec. 17 (Bloomberg) -- The following are the day's top stories on
currencies:

Dollar Rises to 3-Month High Versus Euro on U.S. Outlook, Greece
Downgrade
The dollar climbed against 15 of its 16 major counterparts as
signs the U.S. recovery is gaining momentum boosted demand for the
greenback. The euro sank to a three-month low after Greece's downgrade
reignited credit concerns in the currency's 16-nation region. The
greenback rose before reports forecast to show U.S. initial jobless
claims slowed and a gauge of the outlook for the world's largest
economy improved for an eighth month. The Federal Reserve said
yesterday the U.S. economy is strengthening, while Standard & Poor's
cut Greece's rating one level on its rising debt burden. The Australian
dollar sank to a 10-week low as Asian stocks fell, curbing demand for
higher-yielding assets. ``An improvement of the labor market enhances
confidence in the U.S. economy,'' said Akio Yoshino, chief economist in
Tokyo at Societe Generale Asset Management
(Japan) Co., a unit of France's third-largest bank. ``The dollar will
fare well.'' The dollar rose to $1.4369 per euro, the highest since
Sept. 8, before trading at $1.4406 as of 7:35 a.m. in London from
$1.4531 in New York yesterday. The U.S.
currency was at 89.70 yen from 89.78 yen after earlier hitting 90.26,
the strongest level since Dec. 7. The euro sank to
129.17 yen from 130.46 yen.

Fed Repeats Pledge to Keep Rates `Exceptionally Low' for Extended Period
Federal Reserve officials declared financial markets healthy
enough to remove most emergency aid without going as far on their
support for the U.S. economy. The Fed, after concluding a two-day
meeting yesterday, said most of its lending programs would expire as
scheduled Feb. 1 because of ``improvements in the functioning of
financial markets.''
Policy makers said the labor market is stabilizing yet kept a pledge
to keep interest rates ``exceptionally low'' for an ``extended
period.'' The statement reinforced economists'
forecasts that the Fed will wait from six months to a year before
raising borrowing costs. By confirming plans to end its aid to bond
dealers, short-term debt markets and money-market mutual funds, the Fed
signaled it sees a waning in the ``unusual and exigent'' conditions
that prompted creation of the programs in 2008. ``The nastiness of the
storm has dissipated,'' said Paul Ballew, a former Fed economist who's
now a senior vice president at Nationwide Mutual Insurance Co.
in Columbus, Ohio. ``Concern about the financial market has passed,
but they're looking at weak labor markets and sluggishness in the real
economy.''

Leading Index in U.S. Probably Rose, Signaling Sustained Economic Growth
The index of U.S. leading indicators probably rose for an eighth
consecutive month in November, indicating economic growth will extend
through the first half of 2010, economists said before a report today.
The Conference Board's gauge of the outlook for the next three to six
months rose 0.7 percent after a 0.3 percent October gain, according to
the median forecast of
61 economists surveyed by Bloomberg News. Fewer Americans filed for
jobless benefits last week, and Philadelphia-area manufacturing
expanded for a fifth month, other reports may show. Rising stocks and
fewer job losses are supporting consumer spending, which makes up 70
percent of the economy.
The Federal Reserve said yesterday it intends to keep its benchmark
interest rate near zero for an ``extended period,''
to spur growth as unemployment at 10 percent poses a risk to the
recovery. ``There has been a pretty broad-based improvement in economic
conditions,'' said David Resler, chief economist at Nomura Securities
International Inc. in New York. Resler's forecast matched the median.

Greece's Credit Rating Lowered One Level by S&P on Mounting Debt Concern
Greece's credit rating was cut by Standard & Poor's and the
company threatened to take further action unless Prime Minister George
Papandreou tackles the European Union's largest budget deficit. The
rating was lowered by one level to BBB+ from A-, S&P said in a
statement late yesterday. Fitch Ratings on Dec. 8 cut Greek debt to
BBB+. Papandreou two days ago pledged ``radical'' measures to fix
Greece's budget. ``The ratings could be further lowered if the
government is unable to gain sufficient political support to implement
a credible medium-term fiscal consolidation program,'' S&P credit
analyst Marko Mrsnik in London said. Papandreou's government, which
came to power in October promising higher spending and wages, is trying
to persuade investors it will step up efforts to cut its deficit from
12.7 percent of output to below the European Union's 3 percent limit by
2013. Finance Minister George Papaconstantinou said in an interview
yesterday that the country will cut its 2010 budget deficit by 4
percentage points, more than previously targeted.

ECB Said to Start Consulting Banks, Investors on Collateral
Transparency
European Central Bank officials are moving closer to forcing banks
to provide more information about the collateral they give the ECB in
return for loans. ECB policy makers may today approve the start of a
consultation process with banks, investors and market participants
asking them to suggest how residential mortgage- backed securities can
be made more transparent, according to two people involved in the
process.
The Governing Council meets today in Frankfurt. The ECB is trying to
better monitor the quality of the assets it's holding in return for the
funds it's pumped into the European banking system during the crisis.
European banks have created about 1.1 trillion euros ($1.6 trillion) of
asset-backed securities since June 2007, which they can use as
collateral for ECB loans. The ECB's push ``will increase transparency
for investors and better information will attract new investors,'' said
Dipesh Mehta, a London-based securitization analyst at Barclays
Capital. ``U.S. investors already find the European transactions hard
to look at without loan by loan data.''

EADS, Airbus A380 Insider-Trading Ruling May Come This Week, Jouyet Says
France's biggest civil insider trading investigation in two
decades may come to a close as the market regulator will release a
decision on its probe into sales of European Aeronautic Defence & Space
Co. shares. The insider-trading probe by France's Autorite des Marches
Financiers focuses on executives who sold shares before a report on
production delays on the Airbus A380, the world's biggest passenger
plane, sent EADS down a record 26 percent on June 14, 2006. The
decision ``will come before the end of the week,'' AMF President
Jean-Pierre Jouyet said in an interview yesterday. It was ``a very
difficult inquiry.'' The plunge prompted the AMF to expand an
investigation, opened in May 2006 after investors Lagardere SCA and
Daimler AG cut their stakes, to review insider sales in
2005 for possible trades based on privileged knowledge of production
issues. The investigation was trimmed to 17 current and former
executives in 2008 from a list of more than 1,100 employees.

Asia Faces `Tsunami' of Capital Inflows on China, U.S. Rates, Nomura
Says
Asia is under threat of asset bubbles next year as China's
rebounding economy and low U.S. interest rates drive a ``tsunami'' of
capital into the region, Nomura Holdings Inc.
said. Asia has attracted $241 billion in the six months to September
of 2009, reversing outflows of $262 billion in the period from July
2008 to March 2009, Nomura said. Unless regional governments allow
their currencies to appreciate, further inflows may fuel price bubbles
and a protectionist backlash, the brokerage said in its 2010 Global
Economic Outlook report received today. Surging stock and property
prices prompted Hong Kong's central bank to warn today of ``sharp
corrections'' should fund flows reverse. China's central bank released
a survey yesterday that showed that two-thirds of Chinese view property
prices are unacceptably expensive. ``Our base case is for shallow
recoveries in the G3 economies, with the Fed not raising rates until
early 2011,''
Nomura said, referring to the U.S., Europe and Japan. ``This alone
could fuel strong capital inflows to Asia, but with the region being
the stellar growth performer in the world, 2010 inflows could be more
like a tsunami.''

Asian Currencies Decline, Led by Won, Peso, as U.S. Recovery Boosts
Dollar
Asian currencies fell, led by the South Korean won and the
Philippine peso, as signs the U.S. economic recovery is gaining
traction prompted investors to rein in bets against the greenback. The
Bloomberg-JPMorgan Asia Dollar Index fell for a third day and the won
slumped the most this month after the Federal Reserve said the economy
is improving and most of its special liquidity facilities will expire
on Feb. 1. Investors are ``definitely'' bringing forward expectations
for a U.S.
interest-rate increase, said Gerrard Katz, head of currency trading at
Standard Chartered Plc in Hong Kong. ``The data coming out of the U.S.
has been reasonably good,'' he said.
``That's causing a lot of short-dollar covering.'' The Asia Dollar
Index, which tracks the region's 10 most- used currencies excluding the
yen, was down 0.2 percent as of 4:25 p.m. in Hong Kong, headed for its
lowest close since Nov. 5, according to data compiled by Bloomberg. The
won fell 1.1 percent to 1,177.85 per dollar, the peso dropped 0.8
percent to
46.612 and the Malaysian ringgit declined 0.3 percent to 3.4350.

For the complete stories summarized here, and for more of the day's
top news, see TOP <Go>.

-0- Dec/17/2009 9:15 GMT

(BN) Top Stories: Commodities

+-----------------------------------------------------------------------
-------+

Top Stories: Commodities
2009-12-17 09:04:39.852 GMT

Dec. 17 (Bloomberg) -- The following are the day's top stories on
commodities:

Oil, Gold, Copper Drop as Dollar Climbs to Three-Month High Against Euro
Oil, gold and copper declined as the dollar advanced to its
highest level in three months against the euro on signs the U.S.
economic recovery is gaining momentum. Wheat and soybeans reversed
gains as the U.S. currency increased against 15 out of
16 of its most-traded counterparts, advancing 0.9 percent against the
euro and 0.4 percent versus the yen. Investors turned bullish on the
dollar for the first time since March, a survey of Bloomberg users
showed. The U.S. economy is strengthening, the Federal Open Market
Committee said. ``If we see strong gains in the dollar, it will weigh
on all commodities,'' Shanghai Tonglian Futures Co. analyst Shi Hai
said in a phone interview today. Commodities, measured by the Standard
& Poor's GSCI index of 24 futures, advanced 44 percent this year by
yesterday's close as the dollar's value against six major currencies
dropped 5.3 percent. Investors bought raw materials to protect their
wealth amid the worst global recession since World War II and as
governments spent at least
$12 trillion in economic stimulus.

Palm Oil Exports From Indonesia May Climb in December Before Export Duty
Palm oil shipments from Indonesia, the biggest producer, may surge
at least 12 percent this month before the country imposes a 3 percent
export tax in January, said an official of the Indonesian Palm Oil
Association. Shipments may exceed 1.4 million metric tons, up from 1.25
million tons in November, and drop to 1.2 million tons in January,
Susanto, marketing head of the association, said in an e-mail from
Jakarta today. An increase in exports may curb a 54 percent gain this
year in the price of palm oil, used for cooking and as an alternative
fuel.
Production from Indonesia may climb to 20.7 million tons this year
from 18 million tons last year, Achmad Manggabarani, a director general
at the agriculture ministry, said Dec. 4.
``Exporters will probably boost shipments to avoid paying the tax in
January,'' Susanto said.

Gold May Drop After `Unsustainable' Rally to Record: Technical Analysis
Gold may decline to $1,098 an ounce after its ``unsustainable''
rally to a record this month, according to Royal Bank of Scotland Group
Plc. The attached chart shows bullion fell about $141 through late
April after peaking in mid-February, and slipped about $186 from March
to April last year. A drop to $1,098 ``looks the most obvious target
for the current correction,'' the bank said in a report dated Dec. 15,
referring to a series of numbers known as the Fibonacci sequence. That
would represent a 23.6 percent retracement of the metal's rally from an
October 2008 low to its record. Gold reached an all-time high of
$1,226.56 an ounce in London on Dec. 3. The precious metal is up 28
percent this year and heading for a ninth annual gain, spurred by a
plunging dollar and concern that government spending to lift economies
out of the worst global recession since World War II will spur
inflation.

Chinese Potash Contract May Be Signed by Yearend, Belarusian's Petrov
Says
Belarusian Potash Co., a trader representing Russian and
Belarusian potash producers, may sign a benchmark contract to supply
the crop nutrient to China by the end of the year, sales chief Oleg
Petrov said. The contract for 2010 ``will be important for the consumer
sentiment and may give a boost to the market,'' Petrov said in an
interview in Moscow yesterday.
He declined to forecast a price. BPC, as the trader is also called,
may move to spot sales in China in 2011 as the biggest potash market
becomes less dependent on imports because of growing local output, he
said. BPC's Chinese contract may be set at a price lower than spot
prices in Brazil, Petrov said.
German and Israeli potash suppliers cut Brazilian spot prices to $400
to $405 a metric ton, inclusive of transport costs, Fertecon, a
Tunbridge Wells, England-based adviser on fertilizers, said in a report
Dec. 15. Potash rose to a record of more than $1,000 a ton in some
parts of the world in 2008 before collapsing as farmers cut purchases
because of slumping grain prices.

Rubber Rallies to Highest Level in Almost 15 Months on Crude Oil Advance
Rubber climbed to the highest level in almost 15 months after the
Federal Reserve said the economy is strengthening, increasing
speculation demand for the commodity used in tires will increase.
Futures in Tokyo rose as much as 3.8 percent, extending yesterday's 4.2
percent rally, the best performance in four months. Prices gained as
Japan's currency fell to the lowest level in more than a week against
the dollar, making
yen- denominated contracts more attractive to investors.
``Investors are seeking to buy commodities, especially those backed by
tight fundamentals,'' Shuji Sugata, research manager at Mitsubishi
Corp. Futures Ltd. in Tokyo, said today by phone.
``Rubber may be their choice as its demand is boosted by rising car
sales in China.'' Rubber for May delivery climbed as high as 273.8 yen
per kilogram ($3,039 a metric ton), the highest level since Sept. 29,
2008, before settling at 272.1 yen on the Tokyo Commodity Exchange.
Prices rose as much as 10 yen, triggering an exchange trading circuit
breaker for a second day.

Gold Reverses Earlier Gains as Dollar's Strength Erodes Investment
Demand
Gold declined, reversing early gains, as the dollar's strength
eroded demand for the precious metal as an alternative investment. The
dollar rose against all of its 16 major counterparts before reports
forecast to show U.S. initial jobless claims slowed and a gauge of the
outlook for the world's largest economy improved for an eighth month.
The Federal Reserve said yesterday the economy is strengthening.
``In times of crisis where you don't trust paper money, where you
don't trust the financial system, then people like the physical aspect
of holding gold,'' Adrian Mowat, JPMorgan's chief Asian and emerging
markets strategist, said in a Bloomberg Television interview. ``As we
get a recovery I think gold is going to look like a very poor asset
class to own as we go into next year.'' Gold for immediate delivery
dropped as much as 1.1 percent to $1,125.40 an ounce and traded at
$1,128.20 at 3:30 p.m. in Singapore. Earlier it climbed as much as 0.4
percent to $1,141.88 an ounce, 6.9 percent off its record of $1,226.56
reached Dec. 3.

Coffee May Resume Drop After `Stumbling' at Resistance: Technical
Analysis
Robusta coffee may resume this year's decline toward $1,300 a
metric ton after approaching the high of a downward trend channel that
started in September, according to technical analysis by Newedge Group.
Robusta coffee for March delivery is ``stumbling at resistance at
$1,425 and it may very well be more of a waiting game as the upper
channel line declines towards prices,'' Veronique Lashinski, an analyst
in Chicago, said in a Dec. 15 report. ``A close below $1,385 would
point to a decline toward $1,350 and to an immediate resumption of the
decline.'' Robusta futures have dropped 11 percent this year, and on
June 25 fell to $1,250 a ton, the lowest level since the 10-ton
contract started trading in January 2008. Vietnam is the largest grower
of the beans. The five-ton contract, delisted after January this year,
fell to that price in July 2006. The March contract closed at $1,406 a
ton in London yesterday.

China Seeking Assistance From WTO to Resolve U.S. Cotton Subsidy Dispute
China, the world's largest cotton importer, will try to resolve
the issue of U.S. cotton subsidies through the World Trade
Organization, the Ministry of Commerce said yesterday.
``The U.S. massively subsidizes its cotton, violating fair trade and
fair competition, especially affecting the Chinese cotton farmers'
interests,'' Yao Jian, spokesman at the ministry, said in a regular
media briefing. ``China will actively seek resolution on the issue
under the WTO framework.'' China has about 140 million people involved
in cotton production and 20 million workers in the textile industry,
Yao said. U.S. supplies account for almost a third of the nation's
cotton imports, which increased almost 12-fold in six years to reach
2.11 million metric tons in 2008, he said.
Last month, Brazil was cleared by the Geneva-based World Trade
Organization to impose $294.7 million in trade sanctions because of
U.S. cotton subsidies. At the time, U.S. officials said the WTO's
rulings would be complied with and they doubted Brazil would need to
exercise the sanctions.

Crude Oil Declines as Dollar Rises to Three-Month High Against the Euro
Crude oil fell as the dollar strengthened against the euro,
limiting the appeal of commodities as a currency hedge. Crude snapped
two days of gains as the dollar rose to a three-month high against the
euro after the U.S. Federal Reserve said yesterday the economy is
strengthening and the deterioration in the labor market is abating. Oil
rose the most in a month yesterday after the Energy Department said
U.S. crude inventories declined to the lowest since the week ended Jan.
9.
``It's a bit of the dollar'' that's causing the decline in prices
today, Thina Saltvedt, a commodities analyst at Nordea Bank AB in Oslo,
said by telephone. ``Demand, although improving, is still sluggish.''
Crude oil for January delivery fell as much as 54 cents, or 0.7
percent, to $72.12 a barrel in electronic trading on the New York
Mercantile Exchange. It was at $72.15 a barrel at 8:56 a.m. London
time.

Wheat, Corn Decline as Dollar's Gains May Reduce Demand for U.S. Harvest
Wheat, rice, corn and soybeans declined on speculation that the
dollar's strength may erode demand for supplies from the U.S. The
dollar climbed to a three-month high against a basket of six major
currencies as signs the U.S. recovery is gaining momentum boosted the
attraction of the greenback. Wheat prices in Chicago have lost 9
percent this month, while the dollar index has risen 3 percent.
``Abundant global supplies and a lack of interest in uncompetitively
priced U.S. exports will continue to limit the upside for Chicago wheat
prices,'' said Toby Hassall, a research analyst at CWA Global Markets
Pty in Sydney. Wheat for March delivery dropped 0.7 percent to $5.3375
a bushel in electronic trading on the Chicago Board of Trade at
2:42 p.m. in Tokyo after earlier trading as high as $5.3925.

Ship Scrapping to Slow From 23-Year Peak on Freight Rates: Chart of Day
Ship owners are likely to scrap fewer commodity vessels as this
year's fourfold gain in freight rates reduces the attraction of sending
older ships to the breakers' yard, according to Sverre Bjorn Svenning,
an analyst at Fearnley Consultants AS in Oslo. The CHART OF THE DAY
shows scrapping in millions of deadweight tons is at a 23-year high,
based on data from shipbroker Simpson Spence & Young and Lloyd's
Register-Fairplay. The Baltic Dry Index, a measure of shipping costs
for commodities in red, is likely to decline next year as fewer ships
are broken up, Svenning said. The index advanced to a record in May
last year before slumping 94 percent by December amid the worst global
recession since World War II.
That drove freight rates on some vessels below operating costs,
spurring more scrapping. The gauge jumped 349 percent this year, partly
as China, the world's biggest steelmaker, imported record amounts of
iron ore and coal. ``As long as the freight market is at the level you
see today, there will be hardly any scrapping at all,'' Svenning said
by phone Dec. 15. The global dry bulk fleet will expand 8 percent to 10
percent next year, ``much bigger than the demand growth and as a result
rates will go down,'' he said.

For the complete stories summarized here, and for more of the day's
top news, see TOP <Go>.

-0- Dec/17/2009 9:04 GMT

November 25, 2009

Nov. 25 (Bloomberg) -- The following are the day's top stories on currencies:

U.S. Stocks Retreat as Personal Consumption Trails Economists Estimates
U.S. stocks fell, pulling the Dow Jones Industrial Average down from a 13-month high, as smaller- than-forecast growth in personal spending spurred concern that consumers are struggling to recover from the recession. Financial shares led declines, with JPMorgan Chase & Co. and Bank of America Corp. dropping at least 1.2 percent, after the Federal Deposit Insurance Corp.
said the number of ``problem'' lenders climbed to a 16-year high. Hewlett-Packard Co. slid 1.6 percent after reporting a drop in personal-computer sales. Stocks trimmed losses as Federal Reserve policy makers lowered their unemployment forecast. The Standard & Poor's 500 Index lost 0.1 percent to
1,105.65 at 4:06 p.m. in New York. The Dow fell 17.24 points, or 0.2 percent, to 10,433.71. Fewer than 7 billion shares changed hands on all U.S. exchanges, 23 percent below the
three- month average as trading slowed before the Thanksgiving holiday. ``The stock market is skittish,'' said Michael Holland, who oversees more than $4 billion as chairman of Holland & Co. in New York. ``We had mixed economic data points, personal spending is not feeling good and the FDIC making comments on problem banks. Those are all reminders that we're still in the process of healing. Investors are reacting accordingly.''
Brazilian Stocks Rise on Tax Cut Speculation, Pulp Outlook; Real Declines
Brazilian stocks rose for a second day on speculation the government may announce tax cuts for industries ranging from cars to furniture to bolster sales as an improving outlook for pulp prices sent producers higher. Duratex SA, which makes bathroom fittings and wood panels, jumped to a record after a Brazilian newspaper reported that the government may cut taxes on furniture sales to bolster demand. Lojas Americanas SA, Brazil's biggest discount retailer, rose 3.9 percent after UBS AG said it was one of its preferred stocks in the industry.
Fibria SA, the world's biggest supplier to paper companies, led gains on the Bovespa index on the outlook for higher pulp prices next year. ``You haven't been getting much bad news about the domestic economy,'' Fabio Cardoso, a partner at Adinvest Consultoria, a Rio de Janeiro-based consultancy and fund management firm. ``There's global liquidity and we continue to be a good destination for it.'' The Bovespa stock index gained in the last hour of trade, rising 0.8 percent to 67,317. Thirty-nine stocks fell on the index, while 22 rose.
The BM&FBovespa Small Cap Index gained 0.3 percent. The real added 0.3 percent to 1.7312 per dollar. In other Latin American markets, Mexico's Bolsa fell 0.4 percent and Chile's Ipsa retreated 0.6 percent.
Bond Traders Set for Apocalypse Give Lie to `Hearty' Stocks: Chart of Day
Parallel declines in the yield on three-month U.S. Treasury bills and the cost of insuring stocks against losses mean equity investors are setting themselves up for disappointment, according to PFP Wealth Management. The CHART OF THE DAY shows rates on 90-day bills issued by the U.S. government, which last week turned negative for the first time since financial markets froze, compared with the Chicago Board Options Exchange Volatility Index. The so-called VIX is trading below its level before Lehman Brothers Holdings Inc.'s bankruptcy in 2008.
While stock investors' appetite for risk has ``recovered heartily,'' bond traders ``appear to be living in fear of imminent apocalypse once again,'' Tim Price, PFP's director of investment, wrote in a report yesterday titled ``Eternal Sunshine of the Spotless Bulls.'' Shareholders are being deceived by ``conflicted happy-talkers painting their predictable landscape of perpetually sunlit uplands,'' he wrote. Bond buyers were willing to pay the government to hold their money last week amid speculation an eight-month rally in the highest-yielding securities has outpaced the prospects for growth. Three-month bill rates closed at 0.01 percent yesterday. Six-month bill rates last week fell to the lowest since 1958.
Individuals Inundate Bear-Market Funds From JPMorgan to Pimco During 2009
JPMorgan Chase & Co. and Pacific Investment Management Co.
are inundated with money from individuals attempting to mimic the performance of hedge funds speculating that the stock-market rally is over. So-called bear-market and long-short mutual funds, designed to protect against falling stock prices, attracted a record $10 billion this year through October, more than double the previous high in 2006, according to Morningstar Inc. Asset managers have opened 19 long-short funds, the most in one year. The funds' rising popularity shows how skeptical small investors remain even after the Standard & Poor's 500 Index recouped almost half the 57 percent loss incurred from October 2007 to the March 2009 low. Conventional mutual funds that only buy U.S. stocks posted $4.6 billion of redemptions in the first 10 months of the year, while bond funds added $280 billion. ``Companies are capitalizing on the uncertainty in the market,'' Nadia Papagiannis, an analyst with Chicago-based Morningstar, said in an interview. ``There's also a mystique that comes with hedge-fund investing.''
Bullish GE Options Trading Surges Following Bet on 40% Advance Before 2011
Trading of bullish General Electric Co. options surged to a five-week high as an investor wagered on a 40 percent jump in the stock before January 2011. More than 245,000 calls changed hands, or 2.7 times the four-week average. Contracts to buy GE shares for $22.50 by Jan. 21, 2011, were the most-active options in the U.S. following a single trade of 131,500 contracts. GE, the Fairfield, Connecticut-based provider of power-generation equipment, television programming and loans, added 0.6 percent to $16.12 in New York Stock Exchange composite trading. ``It's an ambitious trade because the strike price is so far above the actual stock price,'' said Frederic Ruffy, the senior options strategist at WhatsTrading.com, a New York-based provider of options market analysis. ``It reflects expectations for a good year in 2010.'' GE more than doubled after sinking to a 17-year low in March. The company has pledged to shrink GE Capital, the finance business that helped cost GE its AAA rating at Standard & Poor's in March following the credit-market freeze after Lehman Brothers Holdings Inc.'s collapse. The shares lost 0.5 percent since the end of 2008, a year in which the stock fell 56 percent because of the worst financial crisis since the 1930s.
Stocks in Asia, Europe, U.S. Futures Advance; Compass, BHP Billiton Gain
European and Asian stocks advanced and U.S. index futures rose as Japan's exports fell at the slowest pace in a year and Federal Reserve officials increased their forecast for U.S.
economic growth. Compass Group Plc, the world's largest catering company, gained 4 percent after earnings topped analysts' estimates. BHP Billiton Ltd., the largest mining company, climbed 2.3 percent in London as metals increased and Australia's central bank said the country's economy entered a ``new upswing.'' Europe's Dow Jones Stoxx 600 Index added 0.9 percent to 249.15 at 8:24 a.m. in London. The gauge has advanced 58 percent since March 9 amid signs government spending and record-low interest rates are helping to drag the economy out of recession. ``The macro setting is clearly improving,'' said Franz Wenzel, deputy director of investment strategy at Axa Investment Managers in Paris, which oversees about $600 billion. ``GDP is going to continue to expand and central banks will remain fairly accommodative. A lot of investors have been reluctant to buy equities so there is a lot of cash waiting on the sidelines,'' he said in a Bloomberg television interview.
U.K. Stocks Advance; HSBC, Anglo American, BHP Billiton Shares Lead Gains
The U.K.'s benchmark stock index, the FTSE 100, rose 0.81 percent at 8:05 a.m. The index of 102 stocks traded on the London Stock Exchange rose 43.37 to 5,367.33. Among the stocks in the index, 90 rose, 8 fell and 4 were unchanged. Gains in the FTSE 100 were led by Hsbc Holdings Plc (Hsba Ln), Anglo American Plc (Aal Ln) and Bhp Billiton Plc (Blt Ln). About
19.31 million shares traded in the FTSE 100. --Editor: Hauck.
London Stock Exchange Profit Falls on Lower Trading, Loss of Market Share
London Stock Exchange Group Plc, Europe's biggest exchange by value of listed companies, said fiscal first-half profit fell 40 percent as trading slowed and the company lost market share to new rivals. Net income for the six months ended Sept.
30 declined to 49.3 million pounds ($82 million) from 81.7 million pounds in the comparable period a year ago, the exchange said in a Regulatory News Service statement today.
That missed the 51.7 million-pound average of four analyst estimates compiled by Bloomberg. The results ``reflectedßmarket conditionsßdepressed byßthe fall-out from turmoilßin financial marketsßlast yearßand increased competition, particularly in U.K. cash equities trading which, as expected, resulted in a weaker performance in the Capital Markets division,'' Chief Executive Officer Xavier Rolet said in the statement.
Traditional exchanges including the LSE, Frankfurt-based Deutsche Boerse AG, and NYSE Euronext have been losing market share to so-called multilateral trading facilities including Turquoise, Bats Europe and Chi-X Europe Ltd., which have offered lower fees and faster trading. For the past five days, LSE accounted for 60 percent of FTSE 100 trading, according to data from Bats Europe.
Russia Micex to Jump to 1,400 This Year as Oil Rallies: Technical Analysis
Russia's Micex Index, the world's best-performing benchmark equity gauge this year, will surpass 1,400 by the end of December as oil prices rally, said Richard Ross, a technical strategist at brokerage Auerbach Grayson & Co. The Micex will gain more than 5 percent to a 14-month high by the end of 2009 as crude rises to $82 a barrel, Ross said, citing 50-day moving averages. Oil, which traded at $76.02 a barrel yesterday, may climb to $90 in the next six to nine months if the U.S.
maintains its economic recovery, he said. ``A breakout is imminent and could certainly occur by yearend,'' Ross said in a telephone interview from New York. ``Oil should catch up and provide the catalyst for that breakout above 1,400 and beyond.'' The Micex has surged 115 percent this year to 1,331.12, the best performance among 89 benchmark equity indexes tracked by Bloomberg, as oil and metals prices jumped amid a global economic recovery. Russia's dollar-denominated RTS Index is up 130 percent. Oil, the country's biggest export, has soared 74 percent this year.
Asian Stocks Advance as Australia's Central Bank Fuels Growth Speculation
Asian stocks rose, led by mining companies and automakers, after Australia's central bank said the country's economy had entered a ``new upswing'' and a Japanese export report beat economist estimates. BHP Billiton Ltd., the world's largest mining company, added 2.4 percent in Sydney on optimism metals demand will pick up. Fuji Heavy Industries Ltd., the maker of Subaru-brand cars, rose 5.3 percent in Tokyo as Japanese exports last month fell at the slowest pace in a year. James Hardie Industries NV, the top seller of home siding in the U.S., gained 2.6 percent after an index of U.S. home prices rose. ``There should be higher growth in Asia than any other region next year,'' said Christian Jin, a fund manager at HI Asset Management Co. in Seoul, which manages the equivalent of
$7.8 billion in assets. ``Domestic demand is good and exports to developed economies are likely to improve.'' The MSCI Asia Pacific Index added 0.8 percent to 117.67 as of 3:26 p.m. in Tokyo. The gauge climbed 67 percent from a more than five-year low on March 9 amid signs government stimulus measures were reviving economies around the world.
Japan's Topix Rises Most This Month on Utilities' Payouts; Developers Fall
Japanese stocks climbed, sending the Topix index to its sharpest gain this month, as falling returns on government bonds boosted the appeal of dividends paid by power companies and as indicators suggested stocks will rise. Tokyo Electric Power Co., whose dividend yield was twice as high as returns on 10-year government bonds, rose 1.3 percent. Honda Motor Co., a carmaker that gets 81 percent of its sales abroad, added 2.6 percent after a government report showed Japan's exports climbed the most month-on-month since April. Mitsui Fudosan Co., the country's largest property developer, sank 2.6 percent after Anabuki Construction Inc. filed for bankruptcy. The Topix index rose 0.5 percent to close at 833.29 in Tokyo, the steepest climb since Oct. 30. The Nikkei 225 Stock Average added 0.4 percent to 9,441.64, ending a five-day losing streak.
The Topix's 14-day relative strength index fell to 22.4 yesterday, below the 30 threshold that some traders see as a sign to buy. ``Valuations on defensive shares are coming down and investors seeking long-term returns are starting to be attracted by these stocks,'' said Naoki Fujiwara, chief fund manager at Shinkin Asset Management Co., which oversees the equivalent of $4 billion in Tokyo. ``Various indicators show the market is coming close to a technical rebound.''
China's Stocks Rebound From Biggest Loss in Three Months; Zijin Advances
China's benchmark stock index rebounded from its biggest loss in almost three months on speculation yesterday's decline was excessive relative to earnings prospects. SAIC Motor Co.
rallied 2.9 percent and Jiangxi Copper Co. added 3.8 percent.
Zijin Mining Group Co., the nation's largest gold producer, surged 6.5 percent as bullion climbed to a record for a second time this week. The Shanghai Composite Index rose 66.64, or 2.1 percent, to close at 3,290.17, after changing direction at least nine times. The measure plunged 3.5 percent yesterday, the most since Aug. 31, on concern banks will sell more shares to replenish capital. The CSI 300 Index advanced 2.3 percent to 3,629.63. ``The bull market in China is still underway,'' said Shane Oliver, Sydney-based head of investment strategy at AMP Capital Investors, which oversees about $89 billion in assets.
``Any pullbacks present opportunities for investors who missed out on the earlier rally to get in.''
Off-Exchange Trading Climbs to Record in Japan, Restoring Lead Over Jasdaq
Japan's alternative stock-trading systems handled a record amount of transactions in October, restoring their lead over the country's third-largest exchange. The six proprietary trading systems handled 1 percent of the value of stocks traded, the highest level on record, PTS Information Network said yesterday on its Web site. The 357 billion yen ($4
billion) managed by the platforms was 51 billion yen more than the value processed by the Jasdaq, the No. 3 exchange behind Tokyo and Osaka. The trading systems handled more than the Jasdaq in July and August, though lost that lead in September, PTS and Jasdaq data showed. Alternative systems have cut the New York Stock Exchange's share of U.S. stock trading to less than 30 percent, according to its Web site. The Tokyo bourse has said its Arrowhead trading system will start on Jan. 4, seeking to accelerate execution speed and stream more data to traders. ``We're going to fight to make sure that we continue to be the main trading destination in Japan,'' said Hironaga Miyama, an executive officer at the Tokyo Stock Exchange.
``Competition works to the benefit of both parties.''

January 22, 2010

FW: (BN) Top Stories: Commodities

Top News

December 17, 2009

(BN) Top Stories: Stocks

(BN) Top Stories: Bonds

(BN) Top Stories: Currencies

(BN) Top Stories: Commodities

November 25, 2009

Nov. 25 (Bloomberg) -- The following are the day's top stories on currencies:

Top Stories: Commodities

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