US & World News

Scholarships Southeast Asia, which have mostly closed on Thursday in 2010, experienced a vintage luxury, especially for equity markets of Indonesia and Thailand.

The Seoul stock exchange also concluded the year, it has completed its closing level of the highest in over three years, supported by hopes of a sustained global economic recovery next year.

The exercise proved particularly successful for the index Indonesian who signs a 46.13% increase over 2010, the highest in the region, thanks to strong domestic business and foreign capital flows.

Only the stock market in Vietnam would end the year in the red Friday after his final meeting of 2010.Hanoi will be the only place with active regional Singapore on the eve of New Year Those Jakarta, Manila, Kuala Lumpur or Bangkok are all closed.

On Thursday, the Indonesia Composite Index ended the session on a positive note to 0.12%. The major indexes also finished up, mild to Singapore (+0.14%) and Philippines (+0.04%), clearer in Vietnam.

Only exchanges of Malaysia and Thailand have erased the gains in early trading to yield 0.36% and 0.29% respectively, but both are part of a sharp increase over the year.

FOREIGN INVESTMENT BOND

In South Korea as in Southeast Asia, further gains are expected next year.They should not be as important this year because of slower economic growth, but markets should be less volatile, analysts said.

"We expect a slowdown in growth for the domestic economy.This could be difficult for the market to repeat the strong performance this year, "said Jose Vistan, at AB Capital Securities, referring to the prospects of Filipino values.

"The issue of inflation will be crucial and could lead to a reversal, an expansionary policy to a tightening and rising interest rates, thus affecting market sentiment," he adds.

The Manila Stock Exchange, who signs the third highest growth in south-east Asia with a jump of 37.62% over the year, received a net inflow of foreign capital of 2.77 billion this year, according to data Reuters.

The Indonesian market has meanwhile seen foreign investment more than doubled over 2009 to $ 2.18 billion.Jakarta stands out with its increase of 46.1% after gaining 87% in 2009.

Interposed between the two exchanges that of Bangkok with a gain of 40.60% over the year.The place was the Thai economy in the last quarter with a gain of 5.9%, and relied on $ 1.9 billion of foreign investment.

In addition to these equity markets of emerging countries, the Tokyo Stock Exchange has also prepared its annual report Thursday, ending 2010 on a 3.0% decline largely attributed to the stronger yen since the variation of the Nikkei corrected the exchange rate impact was up 10.7% according to Reuters data.

Seoul has also lowered the curtain on 2010, but on a different trend as the year ends with a jump of nearly 22% for the Kops (21.88%) at 2051.00 points, its best level since November 2007.

South Korean values were better than offset the losses incurred during the financial crisis at the back of strong domestic economic momentum and good results for companies and analysts do not rule out seeing the KOSPI reach 2400 points during the coming year.

"The growth of the global economy should not be strong next year but recovery looks better than expected before. Liquidity should also improve," said analyst Kim Joo-hyung, Tong Yang Securities.

Russian Norilsk Nickel on Wednesday launched a buyback of shares for $ 4.5 billion (3.4 billion euros) on a background of struggle between mining group's shareholders.

Vladimir Potanin is a major shareholder of Norilsk, the world leader in nickel and palladium, with 25% equity interest through its investment vehicle Interros. He tries to limit the influence on the group by rival Oleg Deripaska.

The latter is the majority shareholder of Rusal, the world leader in aluminum, which owns 25% of Norilsk.He recently rejected an offer from Norilsk, which wanted to buy back the 25%.

Faced with this refusal, the group now wants to buy nickel up to 6.2% of its shares at a price of 252 dollars, a premium of 6% from the market.

Rusal has denounced this bid a "coarse corporate blackmail", but analysts estimated that the aluminum companies could expect a better offer, which they said could be made next year.

"They must find a way out. We believe that in the first half of 2011, Norilsk has managed to redeem the shares of Rusal," said Olga Okunev, analyst for Deutsche Bank.

A source close to shareholders of Norilsk, it was indicated to Reuters that the group was ready to take the tender to Rusal 12 to $ 14 billion.Oleg Deripaska requires 16 billion.

Analysts estimate that it paid $ 14 billion in 2008 to acquire its shares, paying $ 7.2 billion in cash and 14% of Rusal.

The announcement that wanted to buy the Norilsk shares held by Oleg Deripaska has raised this month as the Rusal. An agreement would clear the net debt of Rusal, which amounted to 11.8 billion.

The contest between the two groups also affects their management. In addition to refusing a buyout of his shares, the board of directors of Rusal has blocked 2011 budget Tuesday to Norilsk in its long-term strategy and the sale of the utility OGK-3 as part of a any transaction in shares.

"Nobody will (at Interros and its leaders) and to take control of the company.Neither we nor the other shareholders, "said Wednesday Oleg Deripaska.

Industrial production in Japan rose in November for the first time in six months and manufacturers expect an increase in activity in the coming months, suggesting that the robust demand in Asia should help the Japanese economy to recover the road to recovery earlier this year.

The government, however, remain vigilant against the slow rise of the yen and the Minister of Finance reiterated that the government would act decisively to stem any sudden appreciation of the currency could jeopardize growth.

Industrial production rose in November from 1.0% in line with market forecasts, signing its first increase in six months, said Tuesday the Ministry of Economy, Trade and Industry.

Industrialists interviewed by the department also expects that production rose 3.4% in December and 3.7% in January.

These statistics bode well for the fragile economy of the archipelago and reinforce expectations the Bank of Japan expects a modest rebound in growth in early next year through the continued support of exports to Asia thereby reducing the likelihood of imminent easing of monetary policy.

"The main figure is in line with expectations but forecast for December and January are pretty solid," said Yoshiki Shink, economist at Dai-ichi Life Research Institute.

"As today's figures show that the downside risks weighing on the economy declined, there is now a lower probability of a further easing of policy (money) on condition that he does there is no sharp fluctuations in the market caused by factors outside, "he adds.

The detailed statistics show that companies have increased production of automobiles, machinery and electronic components for export mainly to Asia and the Middle East.

Car manufacturers have also increased their production to replenish their stocks in anticipation of a recovery in domestic demand next year, a sign that production may have bottomed out after collapsing in the wake of the off in September, incentives to buy cars 'green'.

NOTICE OF MINISTER OF FINANCE ON THE YEN

"We had good news from Asian neighbors for October and November.This is confirmation that Japan benefits from the recovery of Asian economies, "said Masamichi Adachi, senior economist at JPMorgan Securities.

The Department maintains, however, his diagnosis of industrial production remains fragile, stressing that its rebound is seen as moderate to large drops in recent months.

Financial markets have little reaction to the publication of statistics and movements in the yen were more influenced by the selling pressure on the dollar.

Evidence of the continuing fragility of the economy, household spending fell 0.4% in November compared with the previous year and the unemployment rate held steady at 5.1%.

The consumer price "core" fell for the 21st consecutive month, the country still struggling with deflation due to weak domestic demand, which should prompt the BoJ to maintain ultra-accommodative policy.

Analysts expect a slight contraction of the economy in the last quarter before rebounding in early 2011 but should remain moderate due to weak consumer spending.

Additional difficulty for the Japanese economy, the yen hit on Tuesday a three-week high against the dollar, nearing levels it had reached since the government intervention on the currency markets in September.

The Minister of Finance Yoshihiko Noda blamed the renewed rise of the yen to low trading volumes, but he warned that he would follow closely the movements in the markets later this year and early next year.

"Our position remains unchanged on the fact that we take decisive action in the event of rough handling," he told a news conference.

The Minister of Economy Banri Kaieda also told the press that the government wanted to prevent significant increases in the currency by cooperating closely with the Bank of Japan, without providing further details on the planned actions.

Bouygues Construction, a subsidiary of Bouygues, has teamed up Friday to the company's management to buy British Leadbitter Leadbitter with the Dutch Heijmans for 45 million euros.

In a statement, the French construction group said it will acquire initially a 51% stake of Leadbitter.

Bouygues Construction redeem later, within four years, the remaining 49% stake in Leadbitter with the management of the British group.

Heijmans, facing debt problems, said his side as the sale of Leadbitter for 45 million euros would enable it to reduce by 15 million net debt.

The Netherlands continues its strategy of refocusing its activities on the Belgian and Dutch infrastructure.

Bouygues Construction nevertheless indicates that Leadbitter employs 700 employees and its turnover is expected to reach nearly 400 million euros this year.

At the Paris Bourse, the action Bouygues gained 0.14% to 32.40 euros by 9:13.

The Anglo-Australian mining group Rio Tinto launched its takeover offer of 3.9 billion dollars (three billion) Riversdale Mining on coal, but the bid increases are likely.

The first big acquisition of Rio Tinto from that of the Canadian aluminum companies Alcan in 2007 anticipates a growing Asian demand for coal, the indispensable ingredient in the manufacture of steel.Riversdale also operates coal deposits in Mozambique.

Rio Tinto needs to finalize the support of at least three major shareholders of Riversdale: Indian steelmakers Tata Steel and Brazil's CSN and the fund Passport Capital, who collectively own approximately 50% of capital.

Riversdale expected that they react positively to the offer from Rio Tinto, but has not yet received a formal response from them, "said CEO of Australian mining group.

Steve Mallyon told Reuters that the third shareholder in Riversdale, Passport Capital, made a commitment to an unspecified number of shares available under a prior agreement that gives Rio Tinto an option on 14.9 % stake in its target.

"There was no reaction, positive or negative, following the decision of the Passport to place some of its shares in the prior agreement," said Steve Mallyon. "I think the reaction of CSN and Tata will be broadly positive," he added.

Fund managers believe that both these shareholders may be rather hostile.

All directors have recommended the offer Riversdale, in the absence of a superior proposal, with the exception of the director of Tata Steel, which abstained.Tata Steel had no comment.

Steve Mallyon, as the president and founder of Michael O'Keeffe, offered its shares under the agreement.

COMPETING OFFER LIKELY

Riversdale has talked with several other groups for a possible partnership, but not now negotiating a merger with Rio Tinto.

Rio Tinto's offer represents 16 Australian dollars per share instead of $ 15 codes.

Trading in Riversdale resumed Thursday after two days of suspension.The stock closed up 1.7% to 16.57 Australian dollars, suggesting that investors expect a better offer.

"I think there is a strong potential for a competing bid," said Andrew Harrington, an analyst at Paterson Securities in Sydney.

A group of Indian public companies, including NTSC, has expressed interest in Riversdale. A source within the consortium had told Reuters on Wednesday that he was about to decide whether or not outbidding.

Among other potentially interested groups include Anglo American, Xstrata and ArcelorMittal, indicate sources familiar with the matter and fund managers.

Investors are relatively bullish mood to discuss 2011, shows a Reuters poll released on Wednesday: they wear their holdings to a high of 10 months and expand their exposure to high yield debt while reducing the debt sovereign.

Within the bond holdings, the concern over cost of U.S. debt and instability of the debt of the euro area are hardly visible.

These are the allocations to emerging market debt, which by contrast are reduced.

The survey of 55 top managers from the United States, Europe outside of Great Britain, Great Britain and Japan shows that the proportion of shares in a diversified portfolio type was 54% in December against 53.2 % in November.This proportion is the highest since the 55.4% in February.

The share of bonds was 33.9%, the lowest since February, against 34.2% in November. Cash represented 3.9% against 4.6% of the portfolio.

Emerging debt accounted for 8.1% in December against 9.6% in November.The securities of euro area rose from 31.2% to 31.5%, while it was above 42% in early 2010.

LOCAL VARIATIONS

The combination of rising economic indicators and the anticipation of strong corporate profits have attracted investors to the stock market in recent months.

On Wednesday, the MSCI Global Value was close to levels not seen since September 2008.

The return to debt securities with higher yields also indicates that investors are more willing to take risks.

The taste varies according to the actions continents.United States, it goes from 63% to 65% in November in December, while in Europe outside Britain, it passes in November from 49.6% to 50.1% in December.

It only fell slightly in Japan, 47.2% to 47.1%, and increases in Britain, 52.8% to 54.2%.

The share of bonds in the U.S. declined for the fourth consecutive month in November from 30.2% to 27.9% in December. She also declined in Britain, 22.5% to 22.0%.

It increases in contrast to Japan by 46.9% to 48.3% in Europe excluding UK 37.3% to 37.5%.

The European Central Bank Wednesday expressed "serious concerns" about the possible effects of the bailout of Ireland on its liquidity operations.

In an article posted on its website and dated Friday, the ECB also notes that legal uncertainties surrounding the bill that allows the implementation of this plan in Ireland could affect its rights to collateral.

"The ECB has serious concerns about the fact that the bill be sufficiently secure in law on several critical issues for the Eurosystem," the text says about Irish law to help unlock $ 85 billion euros from the European Union and the International Monetary Fund.

These issues include "the scope of duties of central banks as collateral security in connection with the provision of emergency liquidity," and the rights of the ECB and perhaps other central banks in the euro area.

The Irish parliament on Wednesday passed the aid package signed by the government, the EU and the IMF to Dublin out of the crisis caused by the collapse of its banking system.

This bill should not affect the ability of the central bank or the ECB to "enforce their rights, including, without limitation, the establishment of a security on any eligible collateral issued by an authorized institution.

A law enacted last week by Dublin also grants to the Irish state broad powers to carry out the restructuring of the banking system, including the ability to attribute losses to non-priority bondholders.

The text allows in particular the Minister of Finance to transfer the assets and liabilities of banks and "prevent any action taken or to support the banking strategy of the state."

The opposition has warned that this legislation will strengthen enormously the powers of the Minister of Finance Brian Lenihan.

Faced with European concerns, however, Ireland has defended the law and ensured that the ECB would not be affected by these measures.

"There is no question that a central bank, either the ECB or any other central bank creditor institutions, is exposed by the financial powers of the minister ordained by this law," said a spokesman Ministry of Finance in a statement.

The sovereign rating of Ireland was downgraded last week to five notches by Moody's, Aa1 to Baa1, which may place additional pressure on banks already in big trouble.

The ECB then signed an agreement for a swap facility of 10 billion pounds with the Bank of England to try to limit the problems of the Irish banking system.

Aeroports de Paris announced Thursday a 3.5% increase in passenger traffic at its airports in November, driven by growth across all trajectories with the exception of Latin America.

European traffic grew by 4.2% and, internationally, it was up 2.7%, the total number of passengers have been accommodated in the Group's airports was 6.3 million.

The fill rate has meanwhile had improved by 2.5 points to 78% in November.

From January through November, traffic grew by 0.6%, the balance became positive last month since early 2010.

The action ADP closed Thursday up 1.83%, to 60.64 euros.It rose 5.7% since the beginning of the year, having won 16.4% in 2009.

Drought and floods in Australia, snow and cold weather in Europe and the United States to push up the prices of many commodities, sugar to oil through soybeans.

Australia is the second largest exporter of sugar after Brazil, but recent rains have forced the industry leader, Queensland Sugar Ltd., to purchase unrefined sugar in South America and Thailand to meet its delivery commitments to export.

Brazil also suffers from adverse weather conditions for the sugar industry.The drought has reduced yields and volume of harvestable cane.

ICE Futures on sugar reached Tuesday to their highest level in five weeks when, the impact of weather have added concerns about production in India.

In eastern Australia, farmers are assessing the effects of the wettest spring ever known and the quality of planting wheat suffers.

The high quality wheat typically used in the manufacture of Chinese noodles or bread in the Middle East, the record harvest, should essentially be used for animal feed.

While the rains ravage eastern, western Australia is experiencing a drought that almost three divided by the annual production of wheat, about three million tons.

"Some sellers think that the global market will remain tight in the near future and the impact of the damage caused by the weather on crops in Australia will once again be a central problem soon," said a dealer in cereals in Germany.

In China, the end of the particularly dry autumn could weigh on pre-planted winter wheat in the north, although the level of soil moisture is good.

"This harvest will depend on favorable early rains in the spring to achieve performance targets," the private weather forecasting center Meteorlogix.

In Europe, the snowfall allowed the wheat to overcome the first frost in France and Germany, the continent's two largest producers, but it causes delays in planting in Italy, where the next crop is threatened by industry professionals.

The experts expect that Europeans sow more wheat than usual in 2011 because of soaring prices partly caused by the heatwave which has significantly reduced production around the Black Sea.

PICS OF ENERGY

In South America, the La Nina climate phenomenon – characterized by abnormally low temperatures of the equatorial Pacific and accompanied by drought – would again weigh on corn and soybeans from Argentina and cause a fall in yields, according to a meteorologist .

Argentina is a major exporter of soybeans and corn but La Nina, which usually falls on Argentina, southern Brazil and Uruguay, the uneasy because corn plants are in a key phase of development .

La Nina is expected to be responsible for a decrease of 15% yield soybean fields by Eduardo Sierra, climate scientist on the Bourse cereal Buenos Aires.

"Some are already predicting a return of La Nina next year, it seems to be a 50-50 chance," he observes. This phenomenon had already severely reduced harvests in 2008-09.Wednesday, the future of the soybean is increasing in the United States.

Besides its impact on agriculture, weather affects energy consumption, which reached the peak of winter in the northern hemisphere, as was the case Tuesday in France with a record of power consumption.

Some parts of China could face a shortage of coal, oil, electricity or gas during the coming winter months, warned Wednesday the agency responsible for planning.

Cold waves in the U.S. and Europe have pushed U.S. light crude future, which hit a high in 26 months this month.Sustained demand for its oil has begun the stocks accumulated during the crisis and the volume of which weighed on the market since 2008.

United States, analysts expect to be announced this Wednesday the 11th week of decline over the last 12 stocks of refined products.

The European Ministers of Foreign Affairs must decide Monday to take "restrictive measures" against Côte d'Ivoire. The former president, Laurent Gbagbo, still refuses to accept the victory of Alassane Ouattara in the presidential election.

The European Union decided on Monday to impose "restrictive measures" against Cote d'Ivoire because Laurent Gbagbo's refusal to recognize the victory of his rival Alassane Ouatarra in the presidential election, told AFP a diplomatic source.A draft declaration, adopted in Brussels on Monday morning by the ambassadors of EU countries indicates that the Union has decided to take immediate restrictive measures "against the Ivorian regime," said this source, without giving immediate details on the contents of sanctions and their targets.

The decision must still be formally confirmed by the EU foreign ministers, meeting in the afternoon in Brussels. The United States has also brandished Thursday the threat of sanctions and the African Union has suspended the Ivory Coast, increasing pressure from the international community does not recognize the re-election of Laurent Gbagbo to the presidency.

Alassane Ouattara was given the winner of the Nov. 28 presidential election by the Independent Electoral Commission (IEC) with 54.1% of the votes but the Constitutional Council, granted to Laurent Gbagbo, has invalidated the results and proclaimed the last president with 51.45 % of votes.