Australian, N.Z. Dollars Fall as Investors Pare Carry Trades

By Ron Harui and Tracy Withers

Sept. 1 (Bloomberg) -- Australia's dollar dropped to a four-month low against the yen and New Zealand's dollar fell to the lowest in two weeks as a slide in U.S. and Asian stocks prompted investors to pare holdings of higher-yielding assets.

The two currencies, favorites of so-called carry trades, declined for a second day after crude oil futures increased as Hurricane Gustav entered the Gulf of Mexico. The Australian dollar slipped to near its lowest in almost a year versus the U.S. currency on speculation Reserve Bank of Australia policy makers will cut interest rates when they meet tomorrow.

``Investors are shunning risk by unwinding carry trades,'' said Tsutomu Soma, a bond and currency dealer at Okasan Securities Co. in Tokyo. ``The trends for the Australian and New Zealand dollars are to the downside.''

The Australian dollar declined 1 percent to 92.41 yen as of 4:40 p.m. in Sydney from 93.36 yen late in New York on Aug. 29. It reached 92.40 yen, the weakest since April 2. The currency, known as the Aussie, fell 0.5 percent to 85.35 U.S. cents from 85.78 cents.

The New Zealand dollar dropped 1.1 percent to 75.38 yen from 76.25 yen late last week. It reached 75.31 yen, the lowest since Aug. 14. The currency, called the kiwi, lost 0.6 percent to 69.64 U.S. cents from 70.05 cents.

The currencies also weakened for a second day against the U.S. dollar as crude oil for October delivery rose as much as 2.2 percent to $118 a barrel in electronic trading on the New York Mercantile Exchange.

Hurricane Gustav

Gustav, downgraded to a Category 3 storm by the National Hurricane Center in Miami yesterday, may strengthen to Category 4 later today and will make landfall as a ``major'' hurricane, according to the U.S. National Hurricane Center.

The storm shut three-quarters of oil output in the region and refineries operated by Valero Energy Corp., ConocoPhillips, Marathon Oil Corp. and Exxon Mobil Corp.

The Aussie and the kiwi are favorites for carry trades because the nations' benchmark interest rates are 7.25 percent and 8 percent, respectively. Those compare with 0.5 percent in Japan and 2 percent in the U.S. In the strategy, investors get funds in a country with low borrowing costs and invest in one with higher rates, earning the spread between the two. The danger is that currency market moves erase those profits.

``The risk aversion story has weakened the Australian dollar,'' said John Kyriakopoulos, a currency strategist at National Australia Bank Ltd. in Sydney. ``Carry trade sentiment has been hurting it.''

Australia's currency will trade between 85.25 and 87.50 cents this week, Kyriakopoulos said.

Australian Economic Data

Australia's currency remained lower after consumer prices rose 4.2 percent from a year earlier, down from 4.6 percent in the 12 months through July, according to a monthly gauge released today by TD Securities Ltd. and the Melbourne Institute in Sydney.

The Bureau of Statistics also said today that the nation's current-account deficit narrowed to A$12.77 billion ($10.9 billion) in the second quarter from a revised A$19.84 billion in the first quarter. The median estimate of 24 economists surveyed by Bloomberg News was for a trade shortfall of A$11.65 billion.

Traders are certain Reserve Bank of Australia policy makers will lower their interest rate by a quarter-percentage point when they meet tomorrow, according to interest-rate futures trading on the Sydney Futures Exchange.

New Zealand's dollar extended the past five days of losses to 1.3 percent as the MSCI Asia-Pacific Index of regional shares slipped 2.1 percent after the Standard & Poor's 500 index fell 1.4 percent on Aug. 29.

Government Bonds

The kiwi-yen and the MSCI Asia-Pacific Index had a correlation of 0.82 in the past year, according to Bloomberg calculations based on their value changes. A reading of 1 would mean they moved in lockstep.

The kiwi also declined on expectations that Reserve Bank of New Zealand Governor Alan Bollard will cut rates at his next review on Sept. 11 as the economy slows. Fourteen of 15 economists surveyed by Bloomberg News expect a quarter- percentage point cut and one expects a half-point reduction.

Australian government bonds gained for a second day. The yield on the 10-year bond fell 3 basis points, or 0.03 percentage point, to 5.73 percent. The price of the 5.25 percent bond maturing in March 2019 rose 0.225, or A$2.55 per A$1,000 face amount, to 96.242. Yields move inversely to prices.

New Zealand government bonds rose, pushing the yield on the three-year note down 2 basis points to 6.05 percent. The price of the 6 percent security due in November 2011 rose 0.062, or NZ$0.62 per NZ$1,000 face amount, to 99.844.

To contact the reporter on this story: Ron Harui in Singapore at rharui@bloomberg.net; Tracy Withers in Wellington at twithers@bloomberg.net

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Asian Currencies: Won, Peso Lead Declines on Fund Outflows, Oil

By Anil Varma

Sept. 1 (Bloomberg) -- Asian currencies fell, with South Korea's won reaching the lowest level in almost four years, on speculation overseas investors are withdrawing funds from local bond and stock markets.

The won extended last month's 7 percent loss, the biggest since 1998 when the Asian financial crisis drove Korea to the brink of a national default. Won-buying by the government to check losses in the currency may fail to stop its slide, said Roh Sang Chil, a dealer with Kookmin Bank in Seoul. Pictet Asset Management Ltd. and Aberdeen Asset Management Plc are betting the Bank of Korea will lose the battle to stem the won's drop.

``The market is receiving a lot of orders for the dollar from foreign stock sales and oil importers,'' Roh said. ``Offshore players are staying on the buy side too, despite caution against the intervention.''

The currency fell 2.2 percent to 1,111.55 against the dollar at 1:02 p.m. in Seoul, the weakest since November 2004, according to data compiled by Bloomberg. It fell 15 percent this year, the worst performer among 10 most-active regional currencies outside of Japan.

Government currency purchases failed to halt the decline and led to a $16.7 billion drop in foreign-exchange reserves in the four months through July to $247.5 billion. Central banks intervene in currency market by either selling or buying foreign exchange.

Higher Oil Prices

The Philippine peso fell to the lowest level in a year after oil prices rose, increasing the nation's demand for dollars used to pay for the commodity.

The peso declined the most in a week as crude gained after an approaching hurricane in the U.S. stopped most of its regional oil and gas output. The Philippines imports almost all of its oil requirements. Crude oil rose 0.9 percent to $116.45 a barrel in after-hours electronic trading on the New York Mercantile Exchange.

``Higher oil prices are adding to the import bill,'' said Rafael Algarra, treasurer at Security Bank Corp. in Manila. ``The momentum is for a stronger dollar.''

The local currency declined 0.9 percent to 46.29 versus the dollar, according to Bloomberg data. That is the lowest since Sept. 18.

The Taiwan dollar fell to a six-month low on speculation a global economic slowdown will reduce demand for Asian goods and encourage the central bank to seek a weaker currency to support exports.

Slowing Growth

The currency declined the most since 2001 in August as the statistics bureau cut its 2008 growth forecast on Aug. 22 to 4.3 percent from 4.78 percent on slumping overseas orders. Overseas shipments advanced 8 percent from a year earlier in July, the smallest gain since May 2007. A weaker currency would help exports by making Taiwan's electronics products cheaper overseas.

``The trend still points to weaker Asian currencies,'' said Christy Tan, a currency strategist at Bank of America Corp. in Singapore. ``What's dragging not just Taiwan but the rest of the region is the fact that growth is slowing while inflation is still staying firm. Shoring up growth is gaining priority.''

The island's currency dropped as much as 0.4 percent to NT$31.634 against the U.S. dollar, the weakest since Feb. 21.

Indonesia's rupiah fell for a second day before government reports that economists forecast will show inflation held at a 22-month high and export growth slowed.

Inflation

Consumer prices rose 11.9 percent in August from a year earlier, after increasing by the same amount in July, according to a Bloomberg News survey of economists. Exports rose 30 percent in July from a year earlier, slowing from a 34.9 percent increase in June, a separate survey showed. Both the reports are due at 2:00 p.m. today in Jakarta.

``Many traders would like to see how the inflation data will affect the Jakarta stock exchange,'' said Lindawati Susanto, head of currency trading at Bank Resona Perdania Pt in Jakarta.

The local currency declined as much as 0.2 percent to 9,168 per dollar in Jakarta, according to data compiled by Bloomberg. The rupiah may trade between 9,150 and 9,200 this week, Susanto forecast.

Elsewhere, the Indian rupee declined 0.5 percent to a 17- month low of 44.16 against the U.S. currency, the Singapore dollar weakened 0.5 percent to S$1.4224 and Thailand's baht was little changed at 34.25. Vietnam's dong slipped 0.1 percent to 16,545.

To contact the reporter on this story: Anil Varma in Mumbai at avarma3@bloomberg.net.



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Malaysia's Budget May Put Ringgit, Ratings at Risk, RBS Says

By David Yong

Sept. 1 (Bloomberg) -- Malaysia may miss its budget-deficit target because lower oil prices may hurt revenue, putting the nation's currency and credit rating at risk, according to the Royal Bank of Scotland Group Plc.

The government's projections for a narrower shortfall may unravel, RBS's Singapore-based analysts Sanjay Mathur and Scott Wilson said in a research note today. Prime Minister Abdullah Ahmad Badawi is counting on oil prices to average $125 a barrel in 2009, unchanged from 2008. Malaysia depends on oil exports to make up for losses from a slew of handouts including lower personal income tax and import duties on consumer goods.

``Softer oil prices could derail the fiscal arithmetic,'' Mathur and Wilson wrote. ``Should the current softening of oil prices continue, attaining the revenue target will be difficult. We are skeptical that the 2009 deficit target will be met.''

RBS, the U.K.'s second-biggest banking group, said the ringgit, ``with risks skewed to the upside,'' may drop to 3.5 per dollar by the end of the year, maintaining its earlier forecast. That would be the weakest level since Sept. 12, 2007.

Fiscal measures to boost the purchasing power of consumers as well as Bank Negara Malaysia's accommodating monetary policy can only add to the pressure on the ringgit, according to RBS.

The finance ministry said Aug. 29 that the budget deficit will narrow to 3.6 percent of gross domestic product in 2009, from a five-year high of 4.8 percent this year. The government projected its revenue will rise 9.1 percent to 176.2 billion ringgit ($51.8 billion) and total spending to rise 3.8 percent to 204.7 billion ringgit.

Oil Exporter

Malaysia is the second-largest oil producer in Southeast Asia. Oil sales will account for 6.7 percent of all exports in 2009, versus 7 percent in 2008, according to the finance ministry's forecasts.

Crude oil prices in New York have dropped 21 percent from their all-time high of $147.27 a barrel reached on July 11.

The ringgit slumped 4.2 percent in August, its worst month since Bank Negara Malaysia scrapped a fixed peg to the dollar in July 2005. The currency traded at 3.394 on Aug. 29. Local financial markets are closed today for a public holiday.

The central bank has kept its overnight policy rate at 3.5 percent in 19 straight meeting since April 2006, even as inflation in Southeast Asia's third-largest economy accelerated to a 27-year high of 8.5 percent in July.

Fitch Ratings may cut the sovereign outlook on Malaysia to `stable' from `positive' in the near term, RBS's analysts said. Failure to reverse the fiscal trend could put its rating at risk of a downgrade in the medium term, they said.

Cutting Outlook

Fitch last raised Malaysia's credit rating by one level to A-, the fourth-lowest investment grade, with a positive outlook in November 2004, according to data compiled by Bloomberg. Standard & Poor's on May 15 cut its outlook to `stable' from `positive.'

James McCormack, head of Fitch's Asian sovereign ratings based in Hong Kong, couldn't be reached for comments.

Malaysia's economy grew 6.3 percent in the second quarter, the slowest in a year, the finance ministry forecast. It expanded 7.1 percent in the first quarter. Annual growth will ease to 5.7 percent in 2008 and to 5.4 percent in 2009, versus 6.3 percent in 2007, it said.

To contact the reporter on this story: David Yong in Singapore at dyong@bloomberg.net.



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Buy Australia's Dollar Against Canada's, TD Securities Says

By Ron Harui

Sept. 1 (Bloomberg) -- Investors should buy Australia's dollar against Canada's on prospects that the interest-rate differential between the two nations will shrink less than traders expect, according to TD Securities.

Australia's dollar is the third-worst performer among the 16 most-active currencies versus Canada's dollar in the past month as investors raised bets the Reserve Bank of Australia will lower borrowing costs by more than the Bank of Canada in coming months. The yield advantage of two-year Australian government bonds over similar-maturity Canadian bonds decreased to 2.98 percentage points from 3 percentage points on Aug. 29.

``Possibly too much has been priced into the Australian interest-rate easing cycle and we could see some weakness in Canada, so interest rates may not narrow as much as people expect,'' said Joshua Williamson, a senior strategist at TD Securities in Sydney. ``If we do see the BOC cut and the RBA not cut as much as the market expects, that's going to have some significant re-pricing in terms of the cross-currencies.''

Australia's dollar traded at 0.9105 versus Canada's currency at 3:44 p.m. in Sydney from 0.9123 late in New York on Aug. 29. The currency, known as the Aussie, touched 0.8922 on Aug. 27, its lowest level since Feb. 14.

TD Securities recommended buying Australia's dollar at 0.9050 against Canada's dollar, with a target of 0.9350, and placing an automatic instruction to sell the Aussie at 0.8875 in case the bet goes the wrong way. The 0.9350 level would be the currency's strongest since Aug. 13.

Capital Spending

The Aussie may extend its 2 percent rally from the six- month low reached on Aug. 27 after a government report showed last week the nation's business investment rose more than twice as much as economists forecast in the second quarter as mining companies spent extra on machinery and equipment to meet demand from China.

Capital spending grew 5.7 percent from the previous three months, when it gained a revised 1 percent, the Bureau of Statistics said in Sydney on Aug. 28. The median estimate of 23 economists surveyed by Bloomberg News was for a 2 percent gain.

``The business sector is on fire with strong investment growth in the quarter and an extremely buoyant outlook for planned investment over the next year,'' Williamson and Stephen Koukoulas, London-based head of global foreign exchange and fixed income strategy, wrote in a client note dated today.

Benchmark interest rates are 7.25 percent in Australia and 3 percent in Canada, compared with 2 percent in the U.S. and 0.5 percent in Japan.

Traders expect the RBA will lower borrowing costs by 1.06 points over the next 12 months, while they forecast the Bank of Canada will cut its benchmark by half a point within the next year, according to Credit Suisse Group indexes based on interest-rate swaps. The RBA's next rate decision is tomorrow and the Bank of Canada's is on Sept. 3.

`Clearly Soggy'

Canada's dollar has fallen versus 11 of the 16 major currencies in the past month. The Bank of Canada reduced interest rates four times from December through April to 3 percent, to support a faltering economy.

The world's eighth-largest economy expanded less than economists forecast in the second quarter, a government report showed last week, when the currency dropped 0.6 percent versus Australia's dollar.

``The Canadian economy is clearly soggy and the market is looking for interest-rate cuts in the months ahead,'' Williamson wrote.

Gross domestic product, the sum of all Canadian-produced goods and services, grew at an annualized pace of 0.3 percent from April to June, after a revised 0.8 percent drop in the first quarter, Statistics Canada said on Aug. 29. Economists surveyed by Bloomberg News had forecast 0.6 percent growth.

To contact the reporter on this story: Ron Harui in Singapore at rharui@bloomberg.net



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Brazil's Inflation May Slow on Lower Food Prices: Week Ahead

By Laura Price

Sept. 1 (Bloomberg) -- Brazil's inflation rate may slow for a third month in August because of declining costs for meat, fruits and vegetables.

Consumer prices as measured by the IPCA index increased 0.31 percent last month, according to the median forecast of 23 economists surveyed by Bloomberg. That would be the smallest gain since October. The report is slated for release Sept. 5.

Slowing inflation may not be enough for policy makers to pare back the fight against rising prices just yet, said Alexandre Lintz, an economist at Banco BNP Paribas Brasil SA in Sao Paulo. The central bank has raised the benchmark rate three times since April, to 13 percent from a record low of 11.25 percent, to slow inflation near the 6.5 percent upper limit of its target.

``This deceleration is very short term, due to food prices,'' Lintz said ``There's not much room for optimism. The central bank will have to be very tough to keep inflation under control.''

The annual inflation rate may ease to 6.2 percent, according to 12 economists surveyed by Bloomberg, after reaching a three-year high of 6.37 percent in July. The central bank targets inflation of 4.5 percent, plus or minus 2 percentage points. Policy makers are expected to raise the benchmark rate to 14.75 percent by year-end, according to an Aug. 22 central bank survey of about 100 economists.

Consumer Prices

Consumer prices rose by 0.53 percent in July and 0.74 percent in June.

Stabilizing prices for cattle, fruit and vegetables are leading the deceleration in inflation, Lintz said. Average cattle prices in the South American country fell to 90.36 reais ($55.44) per arroba, a Brazilian weight measure equal to 15 kilograms or 33 pounds, on Aug. 28, according to the University of Sao Paulo. The price reached a record 94.41 reais on June 23.

``When the economy starts decelerating faster, which is our expectation for the first half of 2009, the central bank will be able to start cutting rates again,'' Lintz said. ``If we get to 2009 and inflation is high, with high salaries, they won't be able to cut.''

Last week, the real fell 0.3 percent to 1.6315 per dollar. The yield on the government's zero-coupon bond due January 2010 fell 4.5 basis points, or 0.045 percentage point, to 14.74 percent, according to Banco Votorantim.

The benchmark Bovespa index fell 0.3 percent in the week to 55,680.41 points. Cia. Energetica de Sao Paulo, the utility controlled by the state of Sao Paulo, led the declines, while Duratex SA, a Brazilian maker of bathroom and wood products, led the gains.

Event Date IPC-S Weekly Consumer Prices 09/01 Monthly Trade Balance 09/01 Industrial Production 09/02 Vehicle Sales 09/04 IPCA Monthly Inflation 09/05

To contact the reporter on this story: Laura Price in Sao Paulo at lprice3@bloomberg.net



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Pictet, Aberdeen Sell Korean Won as BOK Fights Drop

By Kim Kyoungwha

Sept. 1 (Bloomberg) -- Pictet Asset Management Ltd. and Aberdeen Asset Management Plc are betting the Bank of Korea will lose the battle to stem the won's drop, thwarting its attempt to curb the fastest inflation in a decade.

The won slid 7 percent against the dollar in August, the most in a decade, as price increases and a slowing economy prompted bond and stock funds to move money out of the country. Government currency purchases failed to halt the slide and led to a $16.7 billion drop in foreign-exchange reserves in the four months through July to $247.5 billion. The won slid as much as 3.2 percent to 1,124.05 per dollar today, the lowest since 2004.

The slump in reserves ``weakens the hand'' of the central bank, said Wee-Ming Ting, head of Asian fixed income in Singapore for Pictet, part of Switzerland's largest privately held bank for the wealthy. ``We are short the won,'' he said, referring to positions that profit from further declines.

The drop surprised strategists, who predicted at the start of the year that the won would appreciate 5 percent to 890 per dollar, according to a Bloomberg News survey of 22 estimates. The currency is still weaker than the median fourth-quarter forecast of 1049.

Consumer prices in Asia's fourth-largest economy climbed 5.9 percent in July from a year earlier, increasing pressure on the central bank to raise its benchmark rate from an eight-year high of 5.25 percent. Confidence among consumers in July was the lowest since 2000 and spending by households, saddled with record debt, fell in the second quarter for the first time in four years.

Stock, Bond Sales

International investors sold a record 25 trillion won ($22 billion) more Korean shares than they bought this year, stock exchange data shows, and the benchmark Kospi stock index fell 25 percent.

Net sales of the nation's bonds totaled $4.2 billion in June and July, snapping a two-year run of monthly purchases, according to central bank figures. Benchmark five-year yields climbed 90 basis points, or 0.90 percentage points, in the past four months to 5.86 percent.

Including dollar sales in the forwards market, the Bank of Korea has spent about $43.7 billion supporting the won this year, according to Richard Yetsenga, a strategist in Hong Kong with HSBC Holdings Plc.

``We have been targeting 1,100,'' Yetsenga wrote in an Aug. 28 report. ``Now that we are in striking distance of that target, it is difficult to see what will stop the move there.''

Vice Finance Minister Kim Dong Soo pledged last week to take action to stem the won's depreciation and Goldman Sachs Group Inc. predicts the government will have some success, forecasting an exchange rate of 1,040 in three months.

`One-Way Bet'

The won is ``not a one-way bet,'' said Goohoon Kwon, a Seoul-based economist with Goldman, the world's biggest securities firm. Policy makers could raise rates, helping attract funds seeking higher returns, he said.

Aberdeen Asset, Scotland's largest independent money manager, is betting the Bank of Korea will fail, forecasting the won will be as weak as 1,200 per dollar in a year's time.

``We have been short the won and are generally negative over the next three to six months,'' said Anthony Michael, who oversees the equivalent of $3.7 billion of Asian assets as the firm's regional head of fixed income in Singapore. ``Growth in Korea is going to slow substantially.''

The $970 billion economy expanded 4.8 percent in the second quarter from a year earlier, the slowest since the first three months of 2007, when it grew 4 percent. The trade balance swung to a deficit in December for the first time in five years.

Overseas Borrowings

An increase in South Korea's overseas borrowings is also driving funds out of the country, said Dwyfor Evans, a strategist with State Street Global Markets in Hong Kong.

Short-term overseas debt, external borrowings that mature in a year, almost tripled to $175.65 billion as of June 30 from $65.9 billion at the end of 2005, official figures show.

The increase was mainly caused by exporters' locking in dollar rates for overseas earnings, Bank of Korea Deputy Governor Rhee Gwang-Ju said in a July interview. This year's decline in Asian currencies doesn't signal a repeat of the financial crisis a decade ago because central banks have more reserves, he said.

``Potential difficulties with rolling over the debt may lead to a sharp drawdown of reserves and pressure on the won,'' said Dariusz Kowalczyk, a strategist with CFC Seymour Ltd. in Hong Kong, who has the most bearish estimate in the survey. He predicts the won will end the year at 1,200 per dollar.

To contact the reporters on this story: Kim Kyoungwha in Beijing at kkim19@bloomberg.net.

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Yen Rises on Speculation Stock Declines to Crimp Carry Trades

By Stanley White

Sept. 1 (Bloomberg) -- The yen rose to the highest in more than four months against the euro as a decline in Asian stocks prompted traders to pare holdings of higher-yielding assets funded in the Japanese currency.

The yen also climbed to the highest in more than a week against the dollar as Hurricane Gustav approached the Gulf of Mexico, halting most oil and natural gas output from the region. The British pound fell to a record low against the euro after Chancellor of the Exchequer Alistair Darling said the British economy faces the worst slump in 60 years. The won declined to the lowest in almost four years as South Korean stocks slumped.

``The yen is rising on a bout of risk reduction,'' said Motonari Ogawa, director of currency trading in Tokyo at Barclays Capital Inc., a unit of the U.K.'s third-biggest bank. ``Falling stocks make players less inclined to sell the yen. There was also some interest in selling the dollar because the hurricane is bad for the U.S.''

The yen rose to 158.42 per euro, the strongest since April 14, before trading at 158.62 at 7:36 a.m. in London from 159.65 in New York on Aug. 29. Japan's currency climbed to 108.21 per dollar, the strongest since Aug. 21, before trading at 108.37 yen from 108.80. The euro slid to $1.4640 from $1.4673. The yen may rise to 158 versus the euro this week, Ogawa forecast.

Currency trading may be below usual levels because U.S. financial markets are closed today for a public holiday.

South Korea's won fell 2.4 percent to 1,116.10 per dollar. It weakened beyond 1,100 a dollar for the first time since November 2004 as global funds accelerated sales of local stocks and oil refiners bought dollars to pay for crude oil imports.

Carry Trades

The yen advanced versus the Australian and New Zealand dollars, favorites of so-called carry trades. It rose to a five- month high of 92.44 per Australian dollar from 93.36 at the end of last week. It climbed to 75.31 per New Zealand dollar, the strongest in more than two weeks, as the MSCI Asia-Pacific Index of regional shares declined 2.1 percent after U.S. consumer spending slowed in July.

In carry trades, investors get funds in a country with low borrowing costs and buy assets where returns are higher. The risk is currency moves erase the profits. The Bank of Japan's target lending rate is 0.5 percent compared with 4.25 percent in Europe, 7.25 percent in Australia and 8 percent in New Zealand.

The pound declined to 81.39 pence per euro, the lowest since the single European currency's debut in 1999, before trading at 81.15 pence. It also declined to $1.8006, the lowest since April 2006, and traded at $1.8044 from $1.8211.

`Profound and Long-Lasting'

An economic downturn in the U.K. due to a housing slump would be ``profound and long-lasting,'' Darling said in an interview with the Guardian newspaper on Aug. 30. The next day Darling said he was referring to global conditions, the Sunday Telegraph reported.

The pound also declined as U.K. house prices fell by the most since at least 2001 in August, according to a report released today by Hometrack Ltd.

The Bank of England will keep interest rates unchanged at 5 percent on Sept. 4, according to a Bloomberg News survey of economists. Traders are paring bets on higher borrowing costs in the U.K. The implied yield on the March short-sterling futures contract fell to 5.185 percent on Aug. 29 from 5.45 percent at the end of July.

``Darling painted a pretty dismal picture of the U.K. economy, prompting some speculation of a rate cut,'' said Sue Trinh, a senior currency strategist at RBC Capital Markets in Sydney. ``We're in uncharted territory.''

The pound may fall to $1.80 in coming weeks, she said.

Hurricane Gustav

The dollar slid to the lowest in more than a week against the yen on speculation a rise in oil prices will harm the economic outlook for the world's largest energy consumer.

Crude oil for October delivery rose 0.8 percent to $116.39 a barrel. Prices are up 21 percent this year. Hurricane Gustav will make landfall as a ``major'' hurricane later today, the U.S. National Hurricane Center said.

The dollar fell to a fourth-month low versus the euro and the lowest in more two months against the yen after Hurricane Katrina struck Louisiana on Aug. 29, 2005, causing more than $80 billion in damage.

``If we do go above $120 a barrel and hold that for several days, that would create a little bit of pain for the U.S. dollar,'' John Kyriakopoulos, a currency strategist at National Australia Bank Ltd. in Sydney, said in an interview with Bloomberg Television.

ECB

The euro fell against the dollar on speculation European Central Bank policy makers will acknowledge that the euro-zone economy is weakening, making an rate increase less likely.

The ECB will leave its benchmark rate at 4.25 percent on Sept. 4, according to a Bloomberg News survey. Business confidence in Germany, Europe's largest economy, slumped last week, adding to concern the euro-zone will fall into a recession.

The implied yield on the Euribor futures contract expiring in September 2009 fell to 4.485 percent from 4.49 percent on Aug. 29. The yield averaged 18 basis points above the ECB rate from 1999 to August 2007.

``The euro has the potential to weaken,'' said Osamu Takashima, chief analyst for global market sales and trading in Tokyo at Bank of Tokyo-Mitsubishi UFJ Ltd., a unit of Japan's largest publicly listed bank. ``ECB members may try to maintain a hawkish stance, but they'll have to lower their assessment of the economy.''

The ECB may cut rates in the fourth quarter and the euro may decline to $1.45 in six months, he said.

To contact the reporter on this story: Stanley White in Tokyo at swhite28@bloomberg.net

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Asia Commodities Day Ahead: Strike May Affect Potash Shipments

Sept. 1 (Bloomberg) -- Potash Corp. of Saskatchewan Inc. may not be able to meet delivery commitments if a strike continues, JPMorgan Chase & Co. said. Wheat and corn declined. Gold fell, and platinum and palladium gained. Agnico-Eagle Mines Ltd. Chief Executive Officer Sean Boyd said gold prices may rise to about $1,250 an ounce as the metal's appeal as a store of value increases. Orange juice rose on speculation more storms will threaten groves in Florida.

AGRICULTURAL COMMODITIES

Potash Strike May Force Shipment Cuts, JPMorgan Analyst Says

Potash Corp. of Saskatchewan Inc., the world's largest producer of the crop nutrient, may not be able to meet its delivery commitments if a strike at three Canadian mines continues, said an analyst at JPMorgan Chase & Co.

Wheat, Corn Futures Fall as Global Production Expected to Rise

Wheat fell, marking the biggest weekly drop in five months, and corn declined on expectations that world production of both grains will be higher than previously forecast. Wheat futures for December delivery dropped 9.75 cents, or 1.2 percent, to $8.0125 a bushel in Chicago. Corn lost 2.75 cents, or 0.5 percent, to $5.85 a bushel. Soybeans settled unchanged at $13.24 a bushel.

Hogs Fall as Slaughter Rates May Outpace Demand; Cattle Gain

Hogs fell to a four-month low on speculation that pork supplies will outpace consumption and the dollar's rally will erode the appeal of shipments from the U.S. Hogs dropped 0.1 cent, or 0.2 percent, to 68.425 cents a pound in Chicago. Cattle rose 0.225 cent, or 0.2 percent, to $1.0405 a pound. Feeder cattle climbed 0.525 cent, or 0.5 percent, to $1.1095 a pound.

PRECIOUS METALS, GEMS

Agnico-Eagle Mines Plans to Double Credit Line to $600 Million

Agnico-Eagle Mines Ltd., owner of the LaRonde gold mine in Quebec, plans to double a revolving loan facility to $600 million after the cost of digging four new mines rose, Chief Executive Officer Sean Boyd said.


Agnico's Boyd Expects Gold to Rise to $1,250 on Credit Crisis

Agnico-Eagle Mines Ltd. Chief Executive Officer Sean Boyd said gold prices may rise to about $1,250 an ounce as the metal gains increasing allure as a buffer against tough economic conditions and a worsening credit crisis.

Gold Has Biggest Monthly Drop Since April 2004 on Dollar Rally

Gold fell, capping the biggest monthly decline since April 2004, as the dollar climbed against the euro, eroding the appeal of the metal as an alternative investment. Gold dropped $2, or 0.2 percent, to $835.20 an ounce on the Comex division of the New York Mercantile Exchange. Silver was little changed at $13.707 an ounce.

Platinum Gains as Storm Pushes Up Crude Oil; Palladium Rises

Platinum and palladium gained in New York as a rise in the price of crude oil boosted demand for the metals as a hedge against inflation. Platinum rose $5.60, or 0.4 percent, to $1,489.80 an ounce in New York. Palladium jumped $10.70, or 3.6 percent, to $306.80 an ounce.

INDUSTRIAL METALS, MINING

ArcelorMittal, U.S. Steelworkers Reach Four-Year Pact

ArcelorMittal, the world's biggest steelmaker, and the union representing steelworkers at the company's U.S. plants reached a tentative four-year agreement after four months of talks.

Copper Falls for Second Straight Month as Inventories Climb

Copper fell, capping the second straight monthly drop, as rising inventories signal slowing demand for the metal used in wire and pipe. Copper dropped 1.35 cents, or 0.4 percent, to $3.387 a pound in New York.

SOFT COMMODITIES

Sugar Caps Biggest Weekly Drop in a Month as Demand May Slow

Sugar dropped, capping the biggest weekly decline in more than a month, on speculation that a slowing U.S. economy will reduce oil prices and trim the value of alternative fuel made from cane. Sugar declined 0.47 cent, or 3.6 percent, to 12.76 cents a pound in New York.

Coffee Falls in New York as Brazil Exports Rise, Demand Slows

Coffee fell, wiping out earlier gains, as shipments accelerated from Brazil, the largest producer, and demand from roasters slowed. Arabica fell 2.05 cents, or 1.4 percent, to $1.4575 a pound in New York. Robusta gained $25, or 1.1 percent, to $2,336 a metric ton in London.

Cocoa Rises on Speculation Ivory Coast Rains Spreading Fungus

Cocoa rose on speculation wet weather is spreading a crop- damaging fungus in Ivory Coast and Ghana, the world's biggest producers. Cocoa gained $24, or 0.8 percent, to $2,884 a metric ton in New York.

Orange Juice Rises on Bets More Storms to Threaten Florida Crop

Orange juice gained on speculation more storms will threaten groves in Florida, the world's second-biggest grower. Orange juice climbed 0.75 cent, or 0.7 percent, to $1.1215 a pound in New York.

Cotton Rises on Concern Storms May Hurt Fiber Quality in Delta

Cotton rose, capping the second straight weekly gain, on speculation Tropical Storms Gustav and Hanna may diminish the quality of fiber from farms in the Mississippi Delta region already drenched by Tropical Storm Fay. Cotton gained 0.42 cent, or 0.6 percent, to 69.78 cents a pound in New York.


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U.S. Refineries Are Shut, Offshore Wells Closed, for Hurricane

By Jordan Burke

Sept. 1 (Bloomberg) -- At least eight refineries across the U.S. Gulf Coast, including plants owned by Valero Energy Corp.,ConocoPhillips and Exxon Mobil Corp., have been shut as companies brace for Hurricane Gustav's arrival.

Almost half of U.S. refining capacity is located along the Gulf Coast. The shuttered refineries are taking with them about 1.56 million barrels a day of crude oil processing capacity, or 9.8 percent of the U.S. total. Another five refineries were operating at reduced rates.

Gustav, a Category 3 hurricane, was about 220 miles (360 kilometers) southeast of New Orleans, Louisiana, packing winds of 115 miles an hour, the National Hurricane Center said. It may reach Louisiana as early as midday with a force ``not very different'' from its current strength, the center said in an advisory issued 10 p.m. Miami time yesterday.

Crude oil for October delivery rose 99 cents, or 0.9 percent, to $116.45 a barrel in after-hours electronic trading on the New York Mercantile Exchange at 12:01 p.m. Singapore time. Prices are up 21 percent this year.

Gasoline for October delivery gained 6 cents, or 2.1 percent, to $2.9142 a gallon on the exchange the same time.

Refineries in Texas and Louisiana can process 6.44 million barrels a day of oil, turning it into products including gasoline and diesel fuel. About 28 percent, or 2.36 million barrels a day, of the U.S. gasoline supply is produced along the Gulf Coast, according to the Energy Department.

In 2005, Hurricanes Katrina and Rita idled about 19 percent of the country's refining capacity.

Gulf Oil, Gas Production

Companies idled 96 percent of Gulf of Mexico oil output and 82 percent of natural-gas production as Hurricane Gustav moved toward the region, the Minerals Management Service said in a report on its Web site yesterday.

Personnel from 86 offshore rigs and 518 production platforms have been evacuated, according to the report. About 1.25 million barrels of daily oil output and 6.09 billion cubic feet of gas a day were shut.

The Gulf of Mexico accounts for 26 percent of U.S. oil output and 14 percent of natural-gas production. The Gulf normally produces an estimated 1.3 million barrels of oil and 7.4 billion cubic feet of gas a day, according to the agency, part of the U.S. Interior Department.

Valero, the largest U.S. refiner, shut down its St. Charles, Louisiana refinery, which can process 185,000 barrels per day.

Valero's Port Arthur, Houston and Texas City, Texas refineries were running at reduced rates. Combined the plants can process about 572,000 barrels a day. Valero is based in San Antonio.

Motiva, ConocoPhillips

Motiva Enterprises LLC, a Houston-based joint venture of Royal Dutch Shell Plc and Saudi Arabia's state oil company, said it shut its Norco, Louisiana, plant, which can process 236,400 barrels a day. Motiva also reduced rates at its Convent refinery, which can process about 235,000 barrels a day, and its 285,000 barrel-a-day Port Arthur plant.

ConocoPhillips, based in Houston, shut its Lake Charles, Louisiana, refinery, which can process 239,000 barrels a day, and its Alliance refinery in Belle Chase, Louisiana, which can process about 247,000 barrels per day.

Houston-based Marathon Oil Corp. shut its Garyville, Louisiana, refinery, which can process about 256,000 barrels a day. El Dorado, Arkansas-based Murphy Oil Corp. shut its Meraux, Louisiana, plant located near New Orleans. The refinery can process about 120,000 barrels a day.

Chalmette Refining LLC, a joint venture of Irving, Texas- based Exxon Mobil and Petroleos de Venezuela SA, shut its Chalmette, Louisiana, plant. The refinery can process about 193,000 barrels per day.

Alon USA Energy Inc. based in Dallas, shut its Krotz Springs, Louisiana, which can process about 80,000 barrels a day.

To contact the reporter on this story: Jordan Burke in New York at jburke29@bloomberg.net.



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Dalian Soybeans Advance as Festival Boosts Vegetable Oil Demand

By William Bi

Sept. 1 (Bloomberg) -- Soybeans climbed in Dalian on expectation that demand for vegetable oil in China, the world's biggest consumer, will increase ahead of holidays this month, spurring processors to raise crushing. Soybean oil also gained.

Prices advanced before the mid-autumn festival this month, when Chinese people exchange gifts of vegetable oil-rich moon cakes and bottles of cooking oil. Vegetable oil for immediate delivery have gained 100 yuan to 200 yuan ($15-$30) a metric ton today, Tommy Xiao, analyst at Shanghai JC Intelligence Co., said by phone.

``Demand will typically strengthen at this time of year,'' and that's helping reduce some excess domestic supplies of soybean oil, said Nie Ben, manager at Shanghai Mainland Futures Co. in Dalian.

Soybeans for January delivery on the Dalian Commodity Exchange gained as much as 102 yuan, or 2.4 percent, to 4,365 yuan a metric ton, and ended the morning trading session at 4,335 yuan. January-delivery soybean oil rose as much as 250 yuan a ton, or 2.7 percent, to 9,370 yuan and last traded at 9,260 yuan.

The Chicago Board of Trade is closed today for the U.S. Labor Day holiday.

Zen-Noh, Japan's largest corn buyer, suspended the operation of its grain export facility in the U.S. Gulf as Hurricane Gustav approaches the region, threatening shipments from the world's biggest exporter. China currently imports little corn from the U.S., according to customs data.

``I don't think it'll have much of an impact'' on U.S. soybean exports, said Phil Laney, China country director of the American Soybean Association's international marketing. Shutting the elevators is normal, and there are few soybeans being handled because most crops haven't been harvested, he said.

To contact the reporter on this story: William Bi in Beijing at wbi@bloomberg.net



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Gold Rises on Higher Oil After Gustav Cuts U.S. Gulf Production

By Glenys Sim

Sept. 1 (Bloomberg) -- Gold climbed on higher energy prices as Hurricane Gustav halted most U.S. oil and natural gas production and refining, boosting the precious metal's appeal as an inflation hedge.

Bullion also rose as the dollar declined against the euro and yen on concern a rise in oil prices will harm the economic outlook. Energy producers have shut more than 96 percent of offshore oil output and 82 percent of gas production in the Gulf of Mexico because of the hurricane.

``Gold is still in a consolidatory phase and will continue to take cues from oil and the dollar,'' said Zhu Bin, head of research at Nanhua Futures Co. in Hangzhou.

Bullion for immediate delivery gained as much as $5.35, or 0.6 percent, to $836.50 an ounce, and traded at $831.30 an ounce at 8:53 a.m. in Singapore. Silver for immediate delivery rose 0.8 percent to $13.6925 an ounce.

Eleven of 25 traders, investors and analysts surveyed from Mumbai to Chicago, said gold may rise for a third straight week on speculation that higher energy costs will boost demand for the precious metal as a hedge against accelerating consumer prices. Ten said to sell, and four were neutral.

Gold for December delivery was little changed at $835.70 an ounce in after-hours electronic trading on the Comex division of the New York Mercantile Exchange at 9:09 a.m. in Singapore. The U.S. markets are closed today for the Labor Day holiday.

Gold for June delivery on the Tokyo Commodity Exchange fell 1.1 percent to 2,913 yen a gram ($836 an ounce).

To contact the reporter on this story: Glenys Sim in Singapore at gsim4@bloomberg.net



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Copper Declines as Global Inventories Climb to Seven-Month High

By Glenys Sim

Sept. 1 (Bloomberg) -- Copper fell as global inventories of the metal used in wires and pipes reached the highest in almost seven months, increasing concern a spreading global economic slowdown will reduce demand.

Copper slid 6.8 percent in August as stockpiles monitored by the London Metal Exchange jumped 22 percent to 173,375 metric tons, the most since February 5.

``Copper prices in the near term will look to crude oil and the U.S. dollar for direction, with a slight downside bias as stockpiles continue to rise,'' Zeng Chao, chief metals analyst at Everbright Futures Co., said in a report.

Copper for delivery in three months dropped 0.3 percent to $7,490 a ton on the London Metal Exchange at 12:37 p.m. Singapore time. Metal for November delivery fell 0.2 percent to 58,540 ($8,565) a ton on the Shanghai Futures Exchange.

Manufacturing in China, the world's fastest-growing major economy, contracted for a second straight month in August, according to a survey of purchasing managers.

The Purchasing Managers' Index was a seasonally adjusted 48.4, unchanged from July, the China Federation of Logistics and Purchasing said today in an e-mailed statement. A reading above 50 reflects an expansion, below 50 a contraction.

A 5.7-magnitude earthquake in China killed more than two dozen people in the same southwestern province that was struck less than four months ago by the nation's deadliest temblor in 32 years. Chinese aluminum and zinc companies in Sichuan province shut plants after the May 12 earthquake damaged infrastructure and cut power supplies.

China Quake

``We've not heard any news of damaged zinc and aluminum plants or stopped production this time,'' said Pang Ying, an analyst at Shenzhen Rongtuo Trading Co. ``The damage wasn't much the last time so unless reports surface to say otherwise, I don't think this will affect prices much.''

Panzhihua New Steel & Vanadium Co., southwestern China's biggest steelmaker, said its main plant was affected by earthquakes during the weekend.

Other factories and mines of Panzhihua Iron & Steel Group, the parent, also had damage, Panzhihua New Steel said today in a statement to the Shenzhen stock exchange, without giving details.

Zinc on the LME traded little changed at $1,810 a ton, and Shanghai zinc for November delivery rose 1.1 percent to 14,415 yuan a ton at the 11:30 a.m. local time break. LME aluminum gained 0.3 percent to $2,723 a ton, and November-delivery in Shanghai ended little changed at 17,705 yuan a ton, shrugging off the possibility that the quake in China's Sichuan province could halt production in the region.

To contact the reporter for this story: Glenys Sim in Singapore at gsim4@bloomberg.net



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Chocolates, Cresud, Molinos, Tam, Vitro: Latin Equity Preview

By [bn:PRSN=1] William Freebairn [] and Paulo Winterstein

Sept. 1 (Bloomberg) -- The following companies may have unusual price changes today in Latin America trading. Stock symbols are in parentheses, and share prices are from the previous close. Preferred shares are usually the most-traded class of stock in Brazil.

The MSCI Latin America Index fell 1.7 percent Aug. 29 to 3,965.62.

Argentina

Cresud SACIF y A (CRES AF) and Molinos Rio de la Plata SA (MOLI AF): Argentine truckers blocked grain crushers and ports to protest for better wages and social security benefits, the country's main cereal exchange said Aug. 29. Cresud, which farms soybeans and other crops, fell 0.3 percent to 3.37 pesos. Molinos, an exporter of soybean oil, declined 1.4 percent to 7.57 pesos.

Brazil

Tam SA (TAMM4 BS): Brazil's largest airline agreed to allow its two largest shareholders to convert about 9.6 million common, voting shares into an equal number of preferred, non- voting shares, the company said in a statement on Brazil's stock-regulator's Web site Aug. 29. TAM preferred shares rose 0.1 percent to 32.32 reais.

Chile

Cintac SA (CINTAC CC): The Chilean steel processor plans to sell as much as $60.8 million in bonds. The bonds will have a maturity of as long as 10 years, the company said in a filing with regulators Aug. 29. Cintac fell 0.8 percent to 255 pesos.

Colombia

Grupo Nacional de Chocolates SA (CHOCOLA CB): Colombia's biggest food company will begin steps to start an American depositary receipt program to give international investors access to its shares, the company said in a statement Aug. 29. Chocolates rose 3.9 percent to 16,500 pesos.

Mexico

Vitro SAB (VITROA MM) and Grupo Iusacell SAB (CEL* MM): Mexico's largest glassmaker and its third-largest mobile-phone company were among stocks that may be traded short or by brokers for their own accounts starting today. The Mexican stock exchange added 13 companies to a list of shares with higher liquidity that can by law be traded short, it said in a statement e-mailed Aug. 29. Vitro gained 2 percent to 12.67 pesos. Iusacell advanced 3.2 percent to 100 pesos.

To contact the reporter on this story: William Freebairn in Mexico City at wfreebairn@bloomberg.net; Paulo Winterstein in Sao Paulo at pwinterstein@bloomberg.net.



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Esprit Shares Slide, Extending Decline on Slowing Profit Growth

By Frank Longid

Sept. 1 (Bloomberg) -- Esprit Holdings Ltd., the clothing retailer that makes more than four-fifths of sales in Europe, fell in Hong Kong trading, continuing a drop that began after its earnings last week showed slowing profit growth.

Esprit tumbled 7.4 percent to HK$60.20 at noon, the biggest loser on the benchmark Hang Seng Index. That extended its slide to 25 percent since earnings on Aug. 27, followed by ratings downgrades by at least nine companies including Goldman Sachs Group Inc., Lehman Brothers Holdings Inc. and JPMorgan Chase & Co. Before 2008, the stock gained for seven years.

Chief Executive Officer Heinz Krogner, battling a shrinking economy in Europe, told reporters after earnings that he's no longer looking for acquisitions. The retailer's net income grew 13 percent in the six months to June, the weakest expansion since at least 2002, when it joined the Hang Seng Index.

Esprit's net income rose to HK$3.16 billion ($405 million) in the six months to June, its fiscal second half, from HK$2.8 billion in the previous year. Sales rose 25 percent to HK$18.7 billion. Second-half figures were derived from full-year results.

Full-year net income climbed 25 percent to HK$6.45 billion, 2 percent lower than the HK$6.6 billion average estimate of six analysts surveyed by Bloomberg. Operating profit margin narrowed to 20.7 percent from 21.1 percent in the previous year.

The euro-area economy contracted in the second quarter for the first time since the debut of the currency almost a decade ago, as faltering sales undermined investment by companies and soaring costs eroded consumer spending. The stronger euro and slower global growth damped the region's exports just as the fastest inflation in 16 years hurt domestic purchasing power.

Hong Kong's Hang Seng Index fell 1.6 percent to 20,921.43 today.

To contact the reporter on this story: Frank Longid at flongid@bloomberg.net

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Accor, Alcatel, Carrefour, GDF Suez: French Stocks Preview

By Ladka Bauerova and Adria Cimino

Sept. 1 (Bloomberg) -- The following is a list of companies whose stocks may have unusual changes in Paris. Symbols are in parentheses after company names and prices are from the last close.

September futures on France's CAC 40 Index retreated 29 to 4,456 at 8:12 a.m. in Paris.

The CAC 40 rose 21.11, or 0.5 percent, to 4,482.60 on Aug. 29. The SBF 120 Index advanced 0.6 percent.

Accor SA (AC FP): UBS cut its recommendation on shares of Europe's biggest hotel company to ``sell'' from ``neutral.'' The stock increased 74 cents, or 1.7 percent, to 45.25 euros.

Alcatel-Lucent SA (ALU FP): The board will pick a new chief executive officer in the ``coming days,'' and the nominating committee may propose former executive Mike Quigley or Ben Verwaayen, the former CEO of BT Group Plc, Les Echos said. Shares of the world's largest supplier of fixed-line telephone networks sank 19 cents, or 4.5 percent, to 4.15 euros.

Boiron SA (BOI FP): The homeopathic drugmaker said first- half net profit more than doubled to 12.5 million euros ($18.3 million). The shares fell 10 cents, or 0.5 percent, to 19.50 euros.

Carrefour SA (CA FP): JPMorgan Chase & Co. cut its recommendation on shares of the world's second-largest retailer to ``underweight'' from ``neutral.'' The stock jumped 2.43 euros, or 7.2 percent, to 36.13.

CS Communication & Systemes SA (SX FP): The computer- services company that makes air- and traffic-control systems posted a first-half loss of 2.2 million euros on increased marketing costs and delayed U.S. project. The stock dropped 6 cents, or 0.4 percent, to 16.88 euros.

Entrepose Contracting SA (ENTC FP): The builder of pipelines and storage facilities said first-half profit rose to 7.8 million euros from 4.2 million euros a year earlier. The shares rose 1.65 euros cents, or 3 percent, to 56.90 euros.

GDF Suez SA (GSZ FP): The world's second-biggest utility said first-half profit rose 14 percent to 3.38 billion euros, beating analysts' estimates, on higher power and natural gas prices. The stock lost 48 cents, or 1.2 percent, to 39.40 euros.

Groupe Norbert Dentressangle SA (GND FP): The trucking company said first-half profit fell to 16.1 million euros from 25.3 million euros. The shares lost 70 cents, or 1.2 euros, to 56 euros.

Iliad SA (ILD FP): France's second-largest provider of broadband Internet was cut to ``underperform'' from ``buy'' at Merrill Lynch & Co. The stock sank 1.82 euros, or 2.5 percent, to 70.48.

Jacquet Metals SA (JCQ FP): The metals producer said first- half net income dropped to 5.5 million euros from 24 million euros last year. The shares fell rose 48 cents, or 1.2 percent, to 41.48 euros.

Lagardere SCA (MMB FP): Shares of France's largest publisher were cut from the ``most preferred'' list at UBS. The stock added 5 cents, or 0.1 percent, to 38.20 euros.

Mecelec SA (MCLC FP): The industrial equipment maker said its net loss in the first half narrowed to 570,000 euros from 1.32 million euros a year earlier. The shares fell 1 cent to 5.99 euros.

Michelin & Cie. (ML FP): The world's second-largest tiremaker was upgraded to ``buy'' from ``neutral'' at Merrill Lynch & Co. after a drop in oil. The stock slipped 14 cents, or 0.3 percent, to 44.36 euros.

Groupe Steria SCA (RIA FP): The company, whose computer systems organize the arrival of taxis at Paris's Charles de Gaulle airport, said first-half net profit rose to 27 million euros from 23.7 million euros a year earlier and that operating margins for the full year would be close to its 8 percent target. The shares rose 18 cents, or 1 percent, to 18.40 euros.

Viel & Cie. (VIL FP): The securities broker reported a first-half profit of 17.6 million euros, an increase from last year's 11.7 million euros. The shares rose 3 cents, or 0.8 percent, to 3.83 euros.

Vivendi SA (VIV FP): France's biggest media company said second-quarter profit unexpectedly rose as higher earnings at pay-TV operator Canal Plus made up for declining income at Universal Music Group. Profit excluding one-time gains and some costs rose 0.3 percent to 757 million euros. The shares gained 45 cents, or 1.7 percent, to 26.44 euros.

To contact the reporter on this story: Ladka Bauerova in Paris at lbauerova@bloomberg.net



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Commerzbank, Allianz, Volkswagen, Bayer: German Equity Preview

By Patrick Donahue

Sept. 1 (Bloomberg) -- The following companies may have unusual price changes in Germany. Stock symbols are in parentheses and prices are from the previous close.

DAX Index futures expiring in September fell 1, or 0.02 percent, to 6,436.5. The DAX Index rose 1.76 percent to 6,422.30 on Aug. 29.

Bayer AG (BAY GY): Germany's largest drugmaker said its Xarelto anti-clotting drug will enter the last phase of testing earlier than expected. The shares fell 22 cents, or 0.4 percent, to 54.01 euros.

Commerzbank AG (CBK GY): Germany's second-largest lender agreed to buy Allianz SE's Dresdner Bank for 9.8 billion euros ($14.4 billion) in Germany's biggest banking takeover in three years, leapfrogging Deutsche Bank AG (DBK GY) by customers and branches. Commerzbank fell 37 cents, or 1.8 percent, to 20.09 euros. Allianz (ALV GY) shares rose 60 cents, or 0.5 percent, to 114.10 euros.

Deutsche Post AG (DPW GY): Chief Executive Officer Frank Appel said a U.S. congressional hearing in September won't threaten the cooperation between its DHL Express unit and United Parcel Services Inc., WirtschaftsWoche reported. The shares fell 21 cents, or 1.3 percent, to 16 euros.

Volkswagen AG (VOW GY): The carmaker's commercial-vehicle unit will meet its goals for the second half, unit chief Stephan Schaller told WirtschaftsWoche magazine in an interview. the shares fell 1.04 euros, or 0.5 percent, to 204.

To contact the reporter on this story: Patrick Donahue in Berlin at at pdonahue1@bloomberg.net



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European Stock Futures Fall; Air France, Continental May Drop

By Adam Haigh

Sept. 1 (Bloomberg) -- European stock-index futures fell, following declines in the U.S. and Asia, after higher oil and gasoline prices dimmed the earnings outlook for airlines.

Air France-KLM Group may follow its U.S.-traded shares lower as Hurricane Gustav approached the U.S. Gulf coast, forcing the closure of refineries and evacuation of offshore rigs and pushing crude up as much as 2.2 percent. Continental AG may retreat after Merrill Lynch & Co. recommended selling shares of Europe's second-largest car-parts maker.

U.S. markets are closed today for the Labor Day holiday. The Standard & Poor's 500 Index sank 1.4 percent on Aug. 29, while Asian shares dropped the most in almost two weeks today.

``The combination of a holiday weekend and the accompanying uncertainty of the impact of Hurricane Gustav's arrival on the U.S. Gulf Coast unsurprisingly pushed Wall Street lower ahead of Friday's close,'' said Matt Buckland, a trader at CMC Markets in London. ``We're expecting to see this cautious sentiment carry over into Europe as the new month's trading gets underway.''

Futures on the Dow Jones Euro Stoxx 50 Index, a benchmark for the euro region, lost 28, or 0.8 percent, to 3,345 at 7:30 a.m. in London. The U.K.'s FTSE 100 Index is set to open 44 points lower, according to IG Markets.

Europe's Dow Jones Stoxx 600 Index added 1.6 percent last month, its first monthly gain since April. The measure has still lost 21 percent this year as the global economy cooled and the world's largest banks posted writedowns and credit losses of more than $500 billion.

Earnings Estimates

Profits for companies in the Stoxx 600 will decline 2.1 percent on average in 2008, Bloomberg data shows.

The strains in the global money markets that pushed relative borrowing costs higher will probably persist ``for some time'' as financial institutions struggle to raise cash, according to the Bank for International Settlements.

In the U.K., house prices slid by the most since at least 2001 in August as economic growth stagnated, Hometrack Ltd. said. The London-based research company added that an end to the property slump is ``still some way off.''

Air France-KLM may fall after its American depositary receipts dropped 1.1 percent from the close of trading in Paris on Aug. 29. Crude oil for October delivery rose as much as $2.54, or 2.2 percent, to $118 a barrel today in electronic trading on the New York Mercantile Exchange.

Continental might decline after Merrill cut its recommendation on the stock to ``underperform'' from ``neutral.''

`Underperform'

The tiremaker may need to ``warn'' on its operating targets in the coming months ``like most of its peers have already done,'' London-based analyst Thomas Besson wrote in a note today.

Iliad SA may retreat as Merrill downgraded the French provider of broadband Internet to ``underperform'' from ``buy.''

Vivendi SA will probably gain. The owner of France's second- largest mobile-phone company said second-quarter profit excluding one-time gains and some costs, which Vivendi calls adjusted net income, rose 0.3 percent to 757 million euros ($1.1 billion). Analysts had predicted 728 million euros, the median of seven estimates in a Bloomberg News survey via e-mail.

GDF Suez SA, the world's second-biggest utility, might be active after saying first-half profit rose 14 percent on higher power and natural gas prices.

Allianz SE may advance. Commerzbank AG agreed to buy the insurer's Dresdner Bank unit for 9.8 billion euros, which will double its retail clients to about 11 million, surpassing Deutsche Bank AG's with 9.7 million.

To contact the reporter on this story: Adam Haigh in London at ahaigh1@bloomberg.net



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Australia Stocks: Allco, Alumina, Atlas, Babcock Power, Centro

By Shani Raja

Sept. 1 (Bloomberg) -- The S&P/ASX 200 Index fell 17.30 points, or 0.3 percent, to 5,118.30 at the close in Sydney, the most since Aug. 21. The broader All Ordinaries Index lost 15.50 points, or 0.3 percent, to 5,200, while the futures index expiring in September dropped 0.2 percent to 5,133.

Allco Finance Group Ltd. (AFG AU) slumped 2.5 cents, or 6.5 percent, to 36 cents, the lowest since July 11. Allco was cut to ``sell'' from ``hold'' and had its target price slashed to 24 Australian cents from 49 cents at Citigroup Inc.

Alumina Ltd. (AWC AU), partner in the world's biggest producer of the material used to make aluminum, plunged 45 cents, or 10 percent, to A$3.90, the third-worst performer on the index. Alumina sold A$644 million ($552 million) in shares to institutions to fund expansion.

Aragon Resources Ltd. (AAG AU), the Perth-based gold, uranium and nickel explorer, jumped 4 cents, or 25 percent, to 20 cents. Aragon said it completed its purchase of Territory Phosphate Ltd., making it the ``sole owner'' of a portfolio of phosphate projects in the Northern Territory.

Atlas Iron Ltd. (AGO AU), building an iron ore mine in Western Australia, surged 34 cents, or 15 percent, to A$2.62, the index's second-biggest gainer. Shaw River Resources Ltd., an Australian minerals explorer part-owned by Iron, said in an investor presentation that all its base metal and gold projects were ``drill ready,'' and that new Manganese targets were identified at Mt. Minnie.

Babcock & Brown Power (BBP AU), Australia's biggest publicly traded electricity producer, fell 3.5 cents, or 18 percent, to 15.5 cents, the biggest loser on the benchmark. JPMorgan Chase & Co. cut its rating to ``underweight'' from ``neutral.''

Centro Properties Group (CNP AU) slipped 1 cent, or 5.7 percent, to 16.5 cents, extending Friday's 5.4 percent slump, after posting a A$2.1 billion ($1.8 billion) loss in the 12 months ended June 30 after writing down the value of U.S. shopping malls.

Frigrite Ltd. (FRR AU), which makes refrigeration products, plunged 4 cents, or 24 percent, to 13 cents, the most since June 25, after swinging to a loss of A$4.7 million in fiscal 2008.

Macquarie Infrastructure Group (MIG AU) advanced 12 cents, or 5.5 percent, to A$2.31, the most since July 24. Macquarie may bid for Irish phone company Eircom Group, the Sunday Times said, without saying where it got the information.

Perilya Ltd. (PEM AU), an Australian zinc and lead producer, declined 3.5 cents, or 6.6 percent, to 49.5 cents, the fourth- worst performer on the benchmark. Perilya on Friday said it swung to a full-year loss after writing down the value of its biggest mine and prices for both metals slumped.

To contact the reporter on this story: Shani Raja in Sydney at sraja4@bloomberg.net.



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RCG, Taylor Wimpey, WPP, Kenmare: U.K., Irish Equity Preview

By Jonathan Browning and Sarah Thompson

Sept. 1 (Bloomberg) -- The following is a list of companies whose shares may have unusual price changes in U.K. and Irish markets today. Stock symbols are in parentheses and prices are from the last market close.

The benchmark FTSE 100 Index advanced 35.4, or 0.6 percent, to 5,636.60. The FTSE All-Share Index rose 0.7 percent, and Ireland's ISEQ Index was virtually unchanged at 4494.92.

U.K. companies:

Associated British Foods Plc (ABF LN): The owner of British Sugar is negotiating the purchase of Spanish sugar producer Azucarera Ebro, the Mail on Sunday reported, without saying where it got the information. The shares added 2 pence, or 0.3 percent, to 806.5.

Bodycote Plc (BOY LN): The U.K. supplier of metal- strengthening services was downgraded to ``underperform'' from ``neutral'' at Merrill Lynch & Co. because of worries about slowing earnings growth. The shares added 8.75 pence, or 3.9 percent, to 232.75.

Bradford & Bingley Plc (BB/ LN): The biggest lender to U.K. landlords was rated ``sell' in resumed coverage at Royal Bank of Scotland Group Plc.

``Growing the customer deposit base and issuing medium- term notes without encumbering too much of the balance sheet will be the key priorities'' for the bank in the second half of 2008, analysts wrote in a note to investors.

Analysts said earnings per share will likely be negative in 2009 and 2010 and set a price target for the shares at 40 pence. The stock slid 1.25 pence, or 2.5 percent, to 49 pence.

Headlam Group Plc (HEAD LN): The U.K. distributor of floor coverings founded in 1992 said first-half profit rose 3.9 percent as sales to businesses increased. The shares rose 11.5 pence, or 3.6 percent, to 333.5 pence.

Informa Plc (INF LN): The U.K publisher that is in talks about a takeover by private-equity companies was added to the ``most preferred'' list in UBS AG's ``short-term alpha preferences portfolio.''

``Reports in Euroweek suggest that the Providence private equity consortium looking to acquire Informa have their financing in place,'' UBS said. ``We see the risk reward on Informa as attractive given the increasing likelihood a deal will go through.''

The stock lost 2.5 pence, or 0.6 percent, to 425.75.

RCG Holdings Ltd. (RCG LN): The Hong Kong-based maker of the i-Series fingerprint-recognition products said first-half profit rose 77 percent as it added customers and security products. The shares fell 1.25 pence, or 2 percent, to 62 pence.

Taylor Wimpey Plc (TW/ LN): The U.K.'s largest homebuilder will this week launch a campaign among institutional investors to broaden its shareholder base in order to raise capital, the Sunday Telegraph reported, without saying where it got the information. The stock rose 1 penny, or 1.9 percent, to 54.25 pence.

Weir Group Plc (WEIR LN): The world's biggest maker of pumps for the mining industry sold its Weir Process Equipment Canada unit to Wajax Income Fund for C$25.4 million to focus on oil and gas clients. The stock added 1 pence, or 0.1 percent, to 924.5.

WPP Group Plc (WPP LN): The world's second-biggest advertising company extended the deadline of its unsolicited takeover offer for Taylor Nelson Sofres Plc. The shares rose 15 pence, or 2.9 percent, to 537.5 pence.

Xstrata Plc (XTA LN): The world's fourth-largest copper producer aims to finish a feasibility study for the expansion of one of its Peruvian copper mines next year, Peru country manager Jose Marun said. The stock advanced 20 pence, or 0.7 percent, to 3066 pence.

Irish companies:

Kenmare Resources Plc (KMR ID): The producer of titanium in Mozambique said it raised $30 million in a share sale to help increase output. The shares rose 1.8 cents, or 4.3 percent, to 43.8 cents.

To contact the reporter on this story: Sarah Thompson in London at sthompson17@bloomberg.net.



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South Korean Stocks, Currency Slump on Economic Growth Concern

By Kyung Bok Cho and Kim Kyoungwha

Sept. 1 (Bloomberg) -- South Korean stocks fell to the lowest since March 2007 while the won weakened below 1,100 a dollar for the first time in almost four years on mounting concern Asia's fourth-biggest economy will weaken.

LG Electronics Inc., Asia's second-largest handset maker, tumbled 9.8 percent, the most since May 2004, after U.S. consumer spending slowed. Korean Air Lines Co. plunged 15 percent as the won declined, driving up dollar-denominated fuel bills.

The Kospi index declined 57.78, or 3.9 percent, to 1,416.46 as of 2:45 p.m. in Seoul, the steepest fall since Jan. 22. The currency fell 2.6 percent to 1,117.50 against the dollar, according to Seoul Money Brokerage Services Ltd.

``The currency is a measure of how well the economy is managed, so the sudden declines in the won reflect a negative view on Korea,'' said Seo Jung Ho, a director of equities at UBS Hana Asset Management Co. in Seoul, which manages the equivalent of $2.7 billion in equity funds. ``Without any immediate factors in sight to calm the situation down, people should take a conservative stance on the markets.''

South Korea's Financial Services Commission said today that pension funds should use the ``exaggerated'' slump in stocks as a buying opportunity. The economy grew 4.8 percent last quarter from a year earlier, the weakest pace in more than a year, while manufacturers' confidence for August sank to the lowest in three years. A falling won drove up the costs of importing commodities and lifted inflation to near the highest in a decade.

Inflation Slows

South Korea's consumer-price inflation slowed to 5.6 percent in August from a 10-year high of 5.9 percent the previous month, providing room for the central bank to refrain from adding to last month's interest-rate increase, according to figures from the statistics bureau today.

LG Electronics, Asia's second-largest handset maker, lost 9,800 won to 91,700. Samsung Electronics Co., the world's biggest computer-memory maker, retreated 2.7 percent to 502,000, the lowest since July 5, 2005. Credit Suisse Group cut its price estimate for Samsung by 11 percent to 630,000 won in a report, saying all of Samsung's key businesses are slowing down and the magnitude of the downside is ``surprising.''

Consumer purchases in the U.S. rose in July at a third of the previous month's pace, while prices surged the most in 17 years, the commerce department said on Aug. 29. The U.S. is the world's biggest economy and the second-largest destination for South Korean exports, after China.

Exports

South Korean exports, which account for two-fifths of the nation's economy, increased 20.6 percent in August from a year earlier, the Ministry of Knowledge Economy said today.

``The exports data was below consensus,'' said Sebastien Barbe, a Hong Kong-based strategist at Calyon, the investment banking unit of Credit Agricole SA. ``It's a challenging backdrop for Korea with less global demand, more inflation at home and authorities who don't want to raise interest rates as they want to protect domestic demand.''

Fuel-dependent companies fell on speculation a weaker won will increase their dollar-denominated fuel bills. Korean Air, the nation's biggest carrier, fell to 33,000, the most since the terrorist attacks of Sept. 11, 2001 in the U.S. Hanjin Shipping Co., the largest South Korean shipping line, dropped 13 percent to 24,300 won, the most since March 12, 2003.

Shipbuilders, who expected the won to rise this year and bought forward currency contracts to hedge their dollar- denominated orders, declined on concern the unanticipated depreciation will increase non-operating losses.

Dollar Orders

Daewoo Shipbuilding & Marine Engineering Co., the world's third-largest maker of ships, slid 10 percent to 31,400 won, the lowest since March 18. Samsung Heavy Industries Co., the second largest, lost 4.6 percent to 29,900, the lowest since March 24.

The won extended last month's 7 percent loss, the biggest since the Asian financial crisis in 1998 that drove the nation to the brink of default. Won-buying by the government to check the slide failed to stop the currency from weakening, according to Roh Sang Chil, a currency dealer at Kookmin Bank in Seoul.

``The market is receiving a lot of orders for the dollar from foreign stock sales and oil importers,'' Roh said. ``Offshore players are staying on the buy side too, despite caution about the intervention.'' Central banks intervene in currency markets by either selling or buying foreign exchange.

The won slid 19 percent against the dollar this year as price increases and a slowing economy prompted bond and stock funds to move money out of South Korea. Fund managers outside the nation sold more Korean shares than they bought for a 10th day, stock exchange data showed.

Five-year government bonds dipped, snapping a four-day gain, before the release of the inflation data. The yield on the 5.25 percent note due March 2013 rose 5 basis points to 5.91 percent, according to Korea Exchange. The price fell 0.20, or 20 won per 10,000 won face amount, to 99.91. A basis point is 0.01 percentage point.

To contact the reporter for this story: Kyung Bok Cho in Seoul at kcho7@bloomberg.net; Kim Kyoungwha in Beijing at kkim19@bloomberg.net

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Japan's Stocks Fall on Spending, Wage Concern; Nippon Oil Drops

By Kanoko Matsuyama and Toshiro Hasegawa

Sept. 1 (Bloomberg) -- Japan's stocks fell the most in two weeks on concern demand for cars and electronics will fall as spending slows and wages stagnate.

Honda Motor Co., Japan's second-biggest carmaker, dropped the most in a month after U.S. consumer spending declined and domestic auto sales fell in August. Sharp Corp., Japan's biggest maker of liquid crystal display TVs, declined 3.1 percent, after the nation's wages grew at the slowest pace all year. Nippon Oil Corp., Japan's largest refiner, tumbled 3.8 percent as crude prices advanced, raising its production costs.

``We can't expect consumer spending to improve soon,'' said Yoshinori Nagano, a senior strategist in Tokyo at Daiwa Asset Management Co., which manages about $94 billion. ``It will be difficult for companies with high dependence on exports, such as automakers, to regain revenue.''

The Nikkei 225 Stock Average dropped 238.69, or 1.8 percent, to close at 12,834.18 in Tokyo. The broader Topix index declined 24.07, or 1.9 percent, to 1,230.64. Both gauges retreated the most since Aug. 19, and almost eight shares fell for every one that rose on the Topix.

Purchases in the U.S. rose 0.2 percent, one-third the pace in June, the Commerce Department said on Aug. 29 in Washington, while prices surged the most in 17 years. Japan's wages grew in July at the slowest pace all year, the Labor Ministry said today.

Sales of cars, trucks and buses fell 15 percent to 193,902 from a year earlier, the Japan Automobile Dealers Association said in a statement today.

To contact the reporter for this story: Kanoko Matsuyama in Tokyo at kmatsuyama2@bloomberg.net.

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Asian Stocks Decline Most in Five Weeks on Economic Outlook

By Chen Shiyin and Ian C. Sayson

Sept. 1 (Bloomberg) -- Asian stocks fell the most in five weeks, led by technology companies and automakers, on concern profits will decline as global economic growth slows.

LG Electronics Inc., the world's No. 3 television maker, dropped 9.6 percent after U.S. consumer spending waned and South Korea's exports grew less than forecast. Hon Hai Precision Industry Co. slumped by the 6.9 percent daily limit in Taipei following its first earnings decrease in seven years. China Merchants Bank Co. lost 5.7 percent in Shanghai on concern the nation's expansion will weaken after manufacturing contracted.

``Investors are still cautious,'' said Olan Caperina, who helps manage about $6.7 billion at BPI Asset Management Inc. in Manila. ``Unless there's a clear indication that global growth won't stall, stocks will pull back whenever there's news of a weakening U.S. economy.''

The MSCI Asia Pacific Index fell 2.1 percent to 122.61 at 3:16 p.m. in Tokyo, poised for its largest drop since July 29. All 10 industry groups retreated.

The regional measure has lost 22 percent this year as the global economy cooled and the world's largest financial companies posted writedowns and credit losses of more than $500 billion.

Japan's Nikkei 225 Stock Average fell 1.8 percent to 12,834.18, paced by Kawasaki Kisen Kaisha Ltd., after prices of shipping raw materials declined and Morgan Stanley downgraded the shares. China's CSI 300 Index dropped 3.8 percent, with Suning Appliance Co. tumbling by the daily limit after the electronics retailer said profit growth slowed.

Korea Air

South Korea's Kospi Index plunged 4.1 percent, the biggest decline in the Asia Pacific region. Korean Air Lines Co. fell the most in six years on concern rising oil prices and a weakening won will dent earnings. Most other regional stock indexes retreated. Malaysia and Vietnam are closed today for holidays.

Futures for the Dow Jones Stoxx 50 Index fell 0.9 percent today in European trading.

U.S. markets are shut today for the Labor Day holiday. Stocks retreated on Aug. 29, paring the biggest monthly gain since April, after the Commerce Department said consumer purchases rose in July at a third of the previous month's pace, while prices surged the most in 17 years. A report released a day earlier had shown gross domestic product expanded faster than economists had expected.

``Investors are getting worried again with a demand slowdown in the U.S.,'' said Seo Jung Ho, a fund manager at UBS Hana Asset Management Co. in Seoul, which has $30 billion in assets.

LG Electronics, which counts North America as its largest overseas market, slumped 9,700 won to 91,800 won, its largest drop since May 2004. Profit from mobile phones will fall in the current period from the second quarter because of lower shipments and higher marketing costs, Tong Yang Investment Bank said today in a report.

Exports, Manufacturing

Hynix Semiconductor Inc., the world's second-largest computer-memory maker, plunged 11 percent to 17,200 won. Honda Motor Co., Japan's second-largest automaker, retreated 3.4 percent to 3,460 yen.

South Korean exports, which make up more than half of gross domestic product, rose 20.6 percent in August from a year earlier, missing the 23.3 percent median estimate of economists surveyed by Bloomberg News.

Hon Hai, which makes iPods for Apple Inc. and Wii game consoles for Nintendo Co., tumbled NT$11 to NT$149, its largest retreat since Jan. 22. Second-quarter net income dropped 24 percent to NT$11.9 billion ($378 million), missing the average estimate of NT$14.9 billion in a Bloomberg News survey of analysts.

In China, manufacturing contracted for a second straight month in August, according to a survey of purchasing managers. Vice Commerce Minister Gao Hucheng said last week that weakness in global demand will weigh on exports for the rest of the year.

China Banks

China Merchants, the nation's fifth-largest bank by market value, lost 1.31 yuan to 21.77. Industrial & Commercial Bank of China Ltd., the world's most profitable bank, declined 3.5 percent to 4.76 yuan. The company predicted slowing growth after posting the fastest earnings increase among the world's banks in the first half.

Suning, China's biggest electronics retailer by market value, tumbled by the 10 percent limit to 36.62 yuan after saying first- half profit slowed. Aluminum Corp. of China Ltd., the country's biggest producer of the metal, fell 4.2 percent to 9.76 yuan after saying first-half profit slumped 65 percent.

Korean Air, South Korea's largest carrier, dropped 15 percent to 33,000 won, its largest slump since September 2001, after crude oil prices rose as much as 2.2 percent to $118 a barrel in New York and the won weakened, driving up dollar- denominated fuel bills.

Asiana, Kawasaki Kisen

Asiana Airlines Inc., South Korea's second-biggest carrier, plunged 11 percent to 3,970 won.

Kawasaki Kisen Kaisha, Japan's third-biggest shipping line, lost 4.9 percent to 744 yen in Tokyo after Morgan Stanley cut its rating to ``equal-weight'' from ``overweight.''

The shares also retreated after the Baltic Dry Index, which tracks the cost of shipping bulk commodities, slumped 1.7 percent on Aug. 29, its eighth straight decline.

Hanjin Shipping Co., South Korea's largest shipping line, tumbled 15 percent to 23,900 won, its biggest drop since March 2003. STX Pan Ocean Co., South Korea's No. 1 bulk carrier, lost 5.6 percent to S$2.36 in Singapore.

To contact the reporter for this story: Chen Shiyin in Singapore at schen37@bloomberg.net; Ian C. Sayson in Manila at isayson@bloomberg.net.

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