Yen Rises on Speculation U.S. Lawmakers Will Block Auto Bailout

By Ron Harui and Stanley White

Nov. 19 (Bloomberg) -- The yen rose against the dollar as speculation U.S. lawmakers will fail to agree a bailout for automakers damped demand for carry trades, in which investors buy higher-yielding assets with funds borrowed in Japan.

The currency also gained against the Australian dollar and the British pound as a deepening global economic slump spurred Asian stock losses. A $700 billion U.S. financial stability package isn't intended to prevent General Motors Corp., Ford Motor Co. and Chrysler LLC from collapsing, Treasury Secretary Henry Paulson said in a House hearing yesterday.

``It seems unlikely that the U.S. will pass legislation this year to help its carmakers,'' said Hiroshi Yoshida, foreign-exchange trader in Tokyo at Shinkin Central Bank, Japan's fifth-largest publicly traded lender by assets. ``Once this filters through the markets, this will push up the yen.''

The yen climbed to 96.60 against the dollar as of 3:28 p.m. in Tokyo from 97.03 late yesterday in New York. It rose to 121.99 per euro from 122.43. The euro bought $1.2629 from $1.2618. The pound was at $1.4952. The yen may rise to 96.20 versus the dollar today, Yoshida said.

The Australian dollar fell 1.6 percent to 62.26 yen from late yesterday in New York, while the New Zealand dollar declined 1 percent to 53.07 yen. The South African rand slid 0.7 percent to 9.4107 yen.

The yen is popular in carry trades because of Japan's low interest rates. The nation's benchmark rate of 0.3 percent compares with 3.25 percent in Europe, 5.25 percent in Australia, 6.5 percent in New Zealand and 12 percent in South Africa. The risk with carry trades is that currency moves erode profits.

The Nikkei 225 Stock Average slid 0.7 percent and the MSCI Asia-Pacific Index of regional shares declined 0.6 percent.

U.S., Japanese Automakers

The yen has advanced 14 percent versus the dollar, 32 percent against the euro and 54 percent against the Australian dollar in the past three months as the global economy headed toward a recession. Nissan Motor Co., Japan's third-largest automaker, said profit in the second-half will go to ``zero'' because of lower sales in the U.S. and a stronger yen.

The U.S. should reduce its trade and budget deficits to support the dollar as it is the world's reserve currency, Japan's Vice Finance Minister for international affairs Naoyuki Shinohara said today in a speech in Sydney.

`Catastrophic Collapse'

The U.S. economy would suffer a ``catastrophic collapse'' if domestic carmakers fail, GM Chief Executive Rick Wagoner said yesterday, as the nation's auto industry renewed appeals to Congress for federal aid.

Three million jobs would be lost within the first year, personal income would drop by $150 billion and government tax losses would total $156 billion over three years, Wagoner told a Senate panel.

The dollar may extend declines before government reports today that economists say will show the housing recession at the heart of the U.S. economic downturn is deepening, bolstering the case for the Federal Reserve to cut interest rates.

The ICE's Dollar Index, a gauge of the greenback against the currencies of six major trading partners, snapped two days of gains as futures traders raised bets the Fed will lower borrowing costs in coming months. A U.S. report yesterday showed confidence among homebuilders dropped in November to the lowest level since record-keeping began in 1985.

`Deteriorating Further'

``The reports are likely to indicate the U.S. economy is deteriorating further,'' said Yuji Saito, head of the foreign- exchange group in Tokyo at Societe Generale SA, France's second- largest bank by market value. ``The Fed may cut rates more. It's negative for the dollar.''

The dollar may weaken to 96 yen today, Saito said. The ICE's Dollar Index declined 0.3 percent to 87.122.

Housing starts in the U.S. fell to a 780,000 annual pace in October, the lowest since records began in 1959, according to a Bloomberg News survey of economists. Building permits dropped to a 774,000 pace last month, the lowest since November 1981, a separate Bloomberg survey shows. The Commerce Department releases both reports at 8:30 a.m. in Washington.

Futures on the Chicago Board of Trade show a 9 percent chance the Fed will reduce its 1 percent target rate for overnight bank loans to 0.25 percent by its Jan. 28 meeting, up from zero odds a day earlier.

The dollar may also decline as economists say data today will show U.S. consumer prices fell 0.8 percent in October, the most since 1949, after being unchanged the previous month. The Fed will also today release minutes of its Oct. 29 meeting where policy makers cut rates by half a percentage point.

``The dollar may face some selling pressure,'' said Masahiro Sato, joint general manager in Tokyo of the treasury division at Mizuho Trust & Banking Co., a unit of Japan's second-largest publicly listed lender. ``Traders will look for any signs of crisis at the Fed or anything that suggests rates will fall further.''

To contact the reporters on this story: Ron Harui in Singapore at rharui@bloomberg.net; Stanley White in Tokyo at swhite28@bloomberg.net

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Corn Advances as Cold Damages Argentine Corn Crops; Soybeans Up

By Jae Hur

Nov. 19 (Bloomberg) -- Corn gained on speculation that cold weather in Argentina will damage crop production, raising the sales prospect for U.S. supplies. Soybeans also rose, while wheat was little changed.

Argentine corn and wheat crops were damaged by freezing overnight temperatures, according to Eduardo Sierra, the weather forecaster for the Buenos Aires Cereals Exchange. Argentina is the world's second-largest exporter of corn and third-biggest exporter of soybeans.

``Crop weather in Argentina and Brazil will get more attention, with the U.S. harvest progressing,'' said Hiroyuki Kikukawa, general manager of research at IDO Securities Co. in Tokyo. ``Also all the bearish factors have already factored into the market, making people reluctant to bet on a price drop.''

Corn for December delivery was up 0.5 percent at $3.8175 a bushel in after-hours trading in Chicago at 10:15 a.m. Singapore time. The grain lost 1.5 percent yesterday. The price still is down 52 percent from a record $7.9925 on June 27.

Soybeans for January delivery rose 0.4 percent to $9.0575 a bushel at 10:31 a.m. Singapore time. The price is down 45 percent from a record $16.3675 on July 3.

The cold harmed newly planted corn in Buenos Aires province, Sierra said. About 300,000 hectares (741,300 acres) were most affected, or about 12 percent of the 2.5 million hectares that are expected to be sown, he said. One farmer in the northern part of the province lost 80 percent of his crop, according to Sierra.

The area planted with the 2008-09 corn crop in Argentina will be the smallest in more than a decade after dry weather and government export restrictions discouraged farmers, the exchange said Nov. 14. Wheat output may drop 36 percent to 10.5 million metric tons, from 16.3 million tons in the 2007/2008 season, the exchange said.

Wheat for March delivery was down 1 cent at $5.485 a bushel at 10:28 a.m. Singapore time. Futures have fallen 59 percent from a record $13.495 on Feb. 27, partly because global growers increased planting to exploit prices that rose 77 percent in 2007.

Japan is seeking to buy 91,000 tons of U.S. milling wheat at a tender tomorrow.

To contact the reporter for this story: Jae Hur in Singapore at jhur1@bloomberg.net

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Oil Is Steady After Falling on Forecast of U.S. Stockpile Gain

By Christian Schmollinger

Nov. 19 (Bloomberg) -- Crude oil traded little changed in New York after falling yesterday on expectations U.S. inventories gained for an eighth week as fuel demand in the world's largest user declines.

Stockpiles probably climbed 1 million barrels in the week ended Nov. 14, according to the median of 12 analyst estimates before an Energy Department report today. Refinery output likely fell for a third week. U.S. gasoline purchases dropped 2.8 percent last week, the 30th consecutive decline, MasterCard Inc. said yesterday in its weekly SpendingPulse statement.

``The market is still very worried about consumption, leaving the price at a low level,'' said David Moore, a commodity strategist at Commonwealth Bank of Australia in Sydney. ``The broad story in the report won't be changed. The key may not be so much the stock figures, but the demand figures within the report and that should show continued weakness.''

Crude oil for December delivery was at $54.47 a barrel, up 8 cents, at 12:54 p.m. Singapore time on the New York Mercantile Exchange. The December future expires tomorrow. The more active January contract was at $54.85 a barrel, up 9 cents.

Oil has dropped 63 percent since reaching a record $147.27 in July. Futures fell 56 cents, or 1 percent, to $54.39 a barrel yesterday, the lowest settlement since Jan. 29, 2007.

Prices rose earlier yesterday as a hijacked Saudi Arabian supertanker was anchored close to the Somali coast. Pirates directed the Sirius Star, the largest merchant ship ever seized, to the Eyl coastal area to the north of Somalia, the U.S. Navy said. The vessel is carrying 2 million barrels of crude oil.

``The effect on the price is marginal and it's been overshadowed by the demand side worries,'' said Commonwealth Bank's Moore.

China Slowdown

China's economy may grow by less than 9 percent in the fourth quarter of this year as overseas demand weakens, the China Securities Journal reported, citing People's Bank of China adviser Fan Gang.

The Asian nation's economic expansion may slip to below 8 percent next year before rebounding to between 8 and 9 percent in 2010, the Xinhua News Agency-affiliated newspaper said today, citing Fan's interview. The country is the world's second-biggest oil consumer.

Most Asian stocks fell today, led by commodity producers as oil and metals prices dropped. Woodside Petroleum Ltd., Australia's second-largest oil company, lost as much as 6.3 percent. Cnooc Ltd., China's biggest offshore explorer, fell 1.8 percent to HK$5.60.

U.S. Stockpiles

Refineries probably operated at 84.5 percent of capacity, down 0.1 percentage point from the week before, the survey showed. The plants used 87 percent of their capacity a year ago as they raised their output to produce heating fuels.

``Seasonally it is a time where demand for heating oil starts to pick up,'' said Toby Hassall, a research analyst with Commodity Warrants Australia in Sydney. ``But offsetting that is the economic slowdown which should mute any seasonal support.''

Analysts were split over whether gasoline stockpiles rose or fell last week. Supplies were probably unchanged from 198.1 million barrels the week before, according to the survey.

Supplies of distillate fuel, a category that includes heating oil and diesel, rose 600,000 barrels from 128.4 million barrels the week before, according to the survey.

The Energy Department is scheduled to release its weekly report today at 10:35 a.m. in Washington.

Brent crude oil for January settlement was at $51.90 a barrel, up 6 cents on London's ICE Futures Europe exchange at 12:55 p.m. in Singapore. The contract declined yesterday 47 cents, or 0.9 percent, to $51.84 a barrel, the lowest settlement since Jan. 18, 2007.

To contact the reporter on this story: Christian Schmollinger in Singapore at christian.s@bloomberg.net.

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UBS Lowers Target on South Korea’s Kospi to 1,250 From 1,700

By Saeromi Shin

Nov. 19 (Bloomberg) -- UBS AG cut its 12-month target for South Korea’s Kospi index by 26 percent to 1,250, citing “weak” corporate profits in the third quarter.

The brokerage, which previously had an estimate of 1,700 for the stock gauge, said a recent rally may be “nearing an end,” according to a report sent to clients today.

To contact the reporter on this story: Saeromi Shin in Seoul at sshin15@bloomberg.net.

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Australia Stocks: AWB, Babcock, CSR, Macquarie, OZ, Suncorp

By Shani Raja

Nov. 19 (Bloomberg) -- The S&P/ASX 200 Index slipped for the third day. The benchmark lost 23.60 points, or 0.7 percent, to 3,499.60 at the close in Sydney, the lowest since Aug. 20, 2004. The broader All Ordinaries Index declined 29.90 points, or 0.9 percent, to 3,483.20, while the futures index expiring in December dropped 0.2 percent to 3,544.

Mining shares: BHP Billiton Ltd. (BHP AU), the world’s largest mining company, dropped A$1, or 4.1 percent, to A$23.20, the lowest since January 2006. Rio Tinto Group (RIO AU), the world’s third-biggest mining company, fell A$2.10, or 3.1 percent, to A$65.90.

Gold fell for the second day, losing 1.3 percent to $732.70 an ounce, while aluminum slid to a three-year low in London.

AWB Ltd. (AWB AU), Australia’s largest wheat exporter, surged 18 cents, or 6.9 percent, to A$2.79, the most since Nov. 3 and the benchmark’s third-biggest gainer. The company said second-half profit more than doubled, driven by increased sales at its Landmark farm merchandise unit.

Babcock & Brown Infrastructure Group (BBI AU) declined 0.6 cents, or 11 percent, to 4.7 cents, a record low. The owner of Australia’s second-biggest coal-export harbor said it’s examining the sale of as much as 49 percent of the port after drawing interest from potential bidders.

Babcock & Brown Ltd. (BNB AU), the worst performing stock on the MSCI Asia-Pacific Index this year, plunged 6 cents, or 19 percent, to 25 cents, a record low. Babcock said it will accelerate job cuts and separate its businesses as it tries to avoid defaulting on A$3.1 billion ($2 billion) of debt.

CSR Ltd. (CSR AU), Australia’s third-largest maker of building products, tumbled 30 cents, or 17 percent, to A$1.42, the most since 1987. The company announced a 1-for-4 entitlement offer priced at A$1.40 a share, along with an institutional placement, aimed at raising A$482 million.

DUET Group (DUE AU), an Australian energy asset investor, surged 13 cents, or 6.2 percent, to A$2.23, the most since Nov. 3. DUET said in a statement that contrary to press speculation, it has no plans to raise new equity in the “near future,” adding that it faces no term-debt maturities until financial year 2010.

Gunns Ltd. (GNS AU), which plans a A$2 billion wood pulp mill in Australia’s Tasmania state, sank 18.5 cents, or 18 percent, to 86.5 cents, the most since 1999. Press reports said the company ended its pulp mill project in Tasmania. Gunns later issued a statement saying the reports were “inaccurate.”

Macquarie Group Ltd. (MQG AU), Australia’s biggest securities company, surged A$1.16, or 4.8 percent, to A$25.16, the highest since Nov. 12. Citigroup Inc. raised the company’s rating to “buy” from “hold.” Macquarie soared 17 percent yesterday after results that beat analyst estimates.

Suncorp-Metway Ltd. (SUN AU), Australia’s third-largest insurer, soared 58 cents, or 9.2 percent, to A$6.90, the index’s second-best performer, after Citigroup Inc. raised the company’s rating to “buy” from “hold.”

OZ Minerals Ltd. (OZL AU), the world’s second-largest zinc mining company, tumbled 10 cents, or 14 percent, to 63 cents, the lowest since July 2003. The company said it expects full- year earnings to decline because of falling metal prices and higher production costs.

Woodside Petroleum Ltd. (WPL AU), the nation’s No. 2 oil producer, dropped A$1.06, or 3 percent, to A$33.93, the lowest in three years. Crude oil fell to the lowest in almost 22 months in New York on forecasts that U.S. oil supplies increased for an eighth week as a recession erodes demand.

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

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Japan Stocks Decline After MUFG Results Spark Bad-Loan Concern

By Masaki Kondo

Nov. 19 (Bloomberg) -- Japan stocks declined, led by banks, on mounting concern the nation's drop into recession will lead to an increase in bad-loan costs.

Mitsubishi UFJ Financial Group Inc., Japan's largest publicly traded bank, sank 6.4 percent after posting a 61 percent decline in quarterly profit and announcing a share sale to boost capital. Takefuji Corp. tumbled 9.9 percent, leading a slump by consumer lenders, after Nikko Citigroup Ltd. said interest refund claims are rising. Softbank Corp., a mobile carrier that's lost half its value this year, jumped 5.6 percent.

The Nikkei 225 Stock Average fell 55.19, or 0.7 percent, to 8,273.22. The broader Topix index slipped 8.01, or 1 percent, to close at 827.43 in Tokyo, the lowest level since Oct. 28. Twenty one of 33 industry groups on the Topix slumped.

``The economic slowdown is dimming the earnings outlook for banks,'' said Kiyoshi Ishigane, a Tokyo-based senior strategist at Mitsubishi UFJ Asset Management Co., which oversees about $61 billion. ``People are avoiding borrowing money from consumer lenders amid uncertainty in the economy. Borrowing money without a repayment plan is like committing suicide.''

The Topix has fallen 44 percent this year as the collapse of the U.S. mortgage market prompted banks to tighten lending, triggering a series of a series of corporate bankruptcies. About 75 percent of shares on the gauge trade at below their book value, according to Bloomberg data.

Mitsubishi UFJ yesterday posted a 61 percent drop in net income for the three months to Sept. 30, citing mounting losses on stockholdings and rising costs to get rid of bad loans. The bank said it will raise as much as 546 billion yen ($5.65 billion) through a share sale.

Nikkei futures expiring in December dipped 0.7 percent to 8,260 in Osaka and lost 0.3 percent to 8,265 in Singapore.

To contact the reporter for this story: Masaki Kondo in Tokyo at mkondo3@bloomberg.net.

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Asian Stocks Fall for Third Day; Financial Companies Lead Drop

By Kyung Bok Cho and Chua Kong Ho

Nov. 19 (Bloomberg) -- Asian stocks fell for a third day, led by financial companies and commodity producers, as Sumitomo Mitsui Financial Group Inc. planned to raise cash and Oz Minerals Ltd. said earnings may decline.

Sumitomo Mitsui, Japan's third-largest bank, fell 7.9 percent on a plan to raise 400 billion yen ($4.1 billion) to replenish capital as Japan's recession drives up bankruptcies and bad loans. Babcock & Brown Ltd., the worst performer on the MSCI Asia Pacific Index this year, lost 19 percent in Sydney after saying it will hasten jobs cuts to avoid debt default. Oz Minerals, the world's second-largest zinc-mining company, plunged 14 percent after saying falling metal prices may reduce profit.

``Banks will definitely be affected by the global recession, it's a question of how much,'' said James Chua, investment analyst at Phillip Capital Management in Singapore, which oversees about $450 million. ``Commodities look expensive even at these levels.''

The MSCI Asia Pacific Index fell 0.4 percent to 79.62 at 3:42 p.m. in Tokyo, extending a two-day, 3.8 percent drop. Financial stocks were the biggest contributor to the measure's retreat.

MSCI's Asian gauge has plunged 50 percent in 2008 as global financial institutions lost almost $1 trillion since the U.S. subprime-mortgage market collapsed last year.

Shares on the index are valued at 9.7 times trailing earnings, compared with 19.5 times on Nov. 11, when the measure hit a peak of 172.32, Bloomberg data shows.

Futures on the U.S. Standard & Poor's 500 Index declined 0.1 percent. The S&P 500 rose 1 percent yesterday, gaining in the last hour of trading as energy and technology shares rallied.

Nikkei, Kospi

Japan's Nikkei 225 Stock Average lost 0.7 percent to 8,273.22. Mitsubishi Estate Co. led developers lower after concern the property market is slowing.

South Korea's Kospi Index slumped 1.9 percent, capping a seven-day, 12 percent decline, its longest losing streak since July 4. UBS AG cut its target for the measure by 26 percent to 1,250 to reflect ``sharp'' earnings declines.

China's CSI 300 Index surged 6.5 percent, erasing most of yesterday's 7.4 percent slump, as automakers gained on speculation the government will widen assistance to industries hurt by the global financial crisis.

In Tokyo, Sumitomo Mitsui lost 7.9 percent to 314,000 yen. The lender is considering raising 400 billion yen in capital by selling preferred shares before the end of the year, a person familiar with the plan said.

Quarterly Loss

Larger Mitsubishi UFJ Financial Group Inc., which plans to raise more than 900 billion yen selling shares, dropped 6.4 percent to 511 yen. The bank posted a 61 percent decline in quarterly profit on mounting losses from stockholdings and rising costs to get rid of bad loans. Mizuho Financial Group Inc., Japan's second-biggest bank, slid 7.5 percent to 212,500 yen.

Results may get worse, Hironari Nozaki, an analyst at Nikko Citigroup Ltd., wrote in a note. The benchmark Nikkei fell 24 percent in October, the biggest monthly drop on record, while bankruptcies in Japan rose to a three-year high, led by real- estate companies.

Mitsubishi Estate, the country's biggest developer by market value, lost 4.5 percent to 1,222 yen. Nomura Real Estate Holdings Inc., which cut its annual profit target last month, plunged a record 16 percent to 1,355 yen.

``We are seeing a softening in the market for new tenants,'' Toyohisa Miyauchi, executive vice president of Mitsubishi Estate, said in an interview.

Job Losses

Babcock, the Sydney-based owner of wind farms and properties, dropped 19 percent to 25 Australian cents. The company said it will reduce headcount by almost two-thirds while it renegotiates debt agreements with bankers. The stock has tumbled 99 percent this year as it fights to avoid the fate of Allco Finance Group Ltd., a Sydney-based manager of infrastructure funds that collapsed this month.

OZ Minerals slid 14 percent to 63 Australian cents after saying a drop in metal prices and higher output costs may cut full-year profit. Zinc has slumped 49 percent this year and rose 4 percent yesterday in London.

Other commodity producers declined as gold dropped for the second day, losing 1.3 percent to $732.70 an ounce, while aluminum slid to a three-year low.

BHP, the world's biggest mining company, slipped 4.1 percent to A$23.20. Mitsubishi Corp., a Japanese trading company that gets half its profit from commodities, retreated 9.2 percent to 1,118 yen, the lowest level since August 2004.

Tianjin FAW, the Chinese maker of $5,000 compacts, gained 9.9 percent to 3.33 yuan. FAW Car Co., a partner of Mazda Motor Corp., climbed 10 percent to 6.57 yuan.

Automakers in China are seeking government aid and lower sales taxes to help revive waning demand in the world's second- largest vehicle market, said Zeng Qinghong, general manager of Guangzhou Automobile Group Co., a partner of Toyota Motor Corp. and Honda Motor Co.

To contact the reporter for this story: Kyung Bok Cho in Seoul at kcho7@bloomberg.net; Chua Kong Ho in Shanghai at kchua6@bloomberg.net

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Alstria Office, BASF, HeidelbergCement: German Equity Preview

By Nadja Brandt

Nov. 19 (Bloomberg) -- The following is a list of companies whose shares may have unusual price changes in Germany. Stock symbols are in parentheses, and share prices are from the previous close.

The X-DAX Index slipped 0.1 percent to 4596.01. The measure, derived from trading in DAX Index futures, provides an estimate of Germany's benchmark index. The DAX added 0.5 percent to 4,579.47.

Alstria Office REIT-AG (AOX GY): Germany's first real estate investment trust plans to release third-quarter results. The shares dropped 17 cents, or 5.2 percent, to 3.13 euros.

BASF SE (BAS GY): The world's largest chemical company is dropping plans to build a gas pipeline in southern Germany, Frankfurter Allgemeine Zeitung said. The shares fell 12 cents, or 0.5 percent, to 25.43 euros.

HeidelbergCement AG (HEI GY): Germany's biggest cement maker said it's ``not affected'' by billionaire owner Adolf Merckle's attempts to prop up its struggling VEM Vermoegensverwaltung GmbH. The shares slipped 0.1 percent to 39.88 euros.

QSC AG (QSC GY): The phone and Internet-service provider whose customers include N-TV television channel, plans to report final third-quarter results. The company earlier this month said earnings before interest, taxes, depreciation and amortization more than doubled to 18.3 million euros, compared with the 16.5 million-euro average estimate of five analysts compiled by Bloomberg. The shares declined 3 cents, or 2.2 percent, to 1.35 euros.

To contact the reporter on this story: Nadja Brandt in Los Angeles at nbrandt@bloomberg.net

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Aquila, CCA, Fonciere Massena, Touax: French Stocks Preview

By Rudy Ruitenberg

Nov. 19 (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.

France's CAC 40 Index rose 35.37, or 1.1 percent, to 3,217.40. The SBF 120 Index gained 0.9 percent.

Aquila (ALAQU FP): The provider of security monitoring devices reported a 6.6 percent increase in third-quarter revenue and forecast improved profitability for 2009. The shares last traded at 4 euros, down 35 cents, or 8.1 percent.

CCA International SA (CCA FP): The provider of client- relation services reported a 27 percent increase in third- quarter revenue to 20.3 million euros. The shares last traded at 5.54 euros, up 40 cents, or 7.8 percent.

Fonciere Massena SCA (SOCM FP): The real-estate investment trust run by Credit Mutuel Group bought an office building in Paris for 51 million euros. The shares dropped 1 cent to 10.89 euros.

Tonna Electronique (TONN FP): The maker of radio and television transmitters, antennas and cable networks said third- quarter revenue was little changed from year-earlier levels at 3.25 million euros. The shares last traded at 54 cents on Nov. 7.

Touax SCA (TOUP FP): The company, which leases rail cars, shipping containers and temporary buildings, said Irish unit Touax Rail Ltd. obtained a 55 million-euro syndicated credit facility. The shares declined 1.04 euros, or 4.5 percent, to 21.96 euros.

To contact the reporter on this story: Rudy Ruitenberg in Paris at rruitenberg@bloomberg.net.

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Experian, British Land, Woolworths: U.K., Irish Equity Preview

By Howard Mustoe

Nov. 19 (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 76.39, or 2 percent, to 4,208.55. The FTSE All-Share Index rose 1 percent, and Ireland's ISEQ Index fell 5 percent.

U.K. companies:

British Land Co. Plc (BLND LN): The U.K.'s second-largest real estate investment trust releases earnings. British Land advanced 19.5 pence, or 4 percent, to 543.5 pence.

Business Post Group Plc (BPG LN): The postal company that handles about a tenth of the U.K. mail market announces results. Business Post declined 5.5 pence, or 2 percent, to 277.25 pence.

Experian Plc (EXPN LN): The world's largest credit-checking company may say first-half profit was unchanged as the company advanced a cost-cutting program to offset declining demand for credit services in the U.S. and U.K. Experian fell 8.25 pence, or 3 percent, to 306.5 pence.

Marks & Spencer Group Plc (MKS LN): The retailer will hold a one-day 20 percent-off sale tomorrow to prevent stock building up after Christmas, the Financial Times reported, citing people familiar with the matter. Marks fell 4.25 pence, or 2 percent, to 211.25 pence.

Rensburg Sheppards Plc (RBG LN): The investment manager formed by Rensburg Plc's purchase of Carr Sheppards Crosthwaite announces results. Rensburg fell 10 pence, or 2 percent, to 400 pence.

Woolworths Group Plc (WLW LN): The retailer is in talks to sell all its retail stores to turnaround company Hilco for 1 pound ($1.49), the Times reported, without saying where it got the information. Woolworths declined 0.22 penny, or 5 percent, to 3.81 pence.

To contact the reporter on this story: Howard Mustoe in London at hmustoe@bloomberg.net.

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Grupo Famsa, Hogar, Profarma, Redecard: Latin Equity Preview

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

Nov. 19 (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 3.3 percent yesterday to 1,914.82.

Brazil

Profarma Distribuidora de Produtos Farmaceuticos SA (PFRM3 BS): The Brazilian distributor of pharmaceutical products may buy back up to 6 percent of shares during the next year, Profarma said in a filing yesterday with regulators. The company's board increased more than threefold a previous share buyback program, according to the filing. Profarma fell 9.1 percent to 5 reais.

Redecard SA (RDCD3 BS): The Brazilian credit- and debit-card processing company's partnership with a unit of BNP Paribas and MasterCard Inc. to accept Aura cards at Redecard affiliates is positive as it will increase the number of Redecard customers, Fator Corretora analyst Jacqueline Lison wrote in a note to clients. Redecard dropped 4.7 percent to 25.25 reais.

Mexico

Consorcio Hogar SAB (HOGARB MM): Mexico's sixth-largest homebuilder said shareholders approved a plan to sell 180.6 million pesos ($13.8 million) in bonds convertible to stock. The bonds will be sold to existing shareholders only, Hogar said in a statement yesterday. Hogar was unchanged at 1.64 pesos when it last traded Nov. 10.

Grupo Famsa SAB (GFAMSAA MM): The operator of department stores in Mexico and the southern U.S. hired Credit Suisse Group AG to make a market in its shares. Credit Suisse will begin market-maker operations in Grupo Famsa shares starting today, the company said in a statement yesterday. Market makers agree to buy and sell shares in an effort to increase liquidity of stocks. Famsa fell 8.5 percent to 7.79 pesos.

To contact the reporters 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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BASF SE, D/S Norden, HeidelbergCement: European Equity Preview

By Nadja Brandt

Nov. 19 (Bloomberg) -- The following companies may have unusual price changes in European trading. Stock symbols are in parentheses, and share prices are from the previous close.

The Dow Jones Stoxx 600 added 0.8 percent to 201.91. The Dow Jones Stoxx 50 Index climbed 1.5 percent to 2,127.89. The Euro Stoxx 50 Index, a benchmark for the nations using the euro, increased 1.1 percent to 2,390.10.

BASF SE (BAS GY): The world's largest chemical company is dropping plans to build a gas pipeline in southern Germany, Frankfurter Allgemeine Zeitung said. The shares fell 12 cents, or 0.5 percent, to 25.43 euros.

Coloplast A/S (COLOB DC): Europe's largest maker of colostomy products may say it had fiscal fourth-quarter net income of 83.4 million kroner ($14 million) on sales of 2.16 billion kroner, the average analyst estimates compiled by Bloomberg. The stock lost 5.5 percent to 361 kroner.

D/S Norden A/S (DNORD DC): Denmark's biggest dedicated shipping line may report net income of $127.4 million on $894.6 million in revenue, the mean analyst predictions. The stock retreated 3.1 percent to 148.5 kroner.

HeidelbergCement AG (HEI GY): Germany's biggest cement maker said it's ``not affected'' by billionaire owner Adolf Merckle's attempts to prop up its struggling VEM Vermoegensverwaltung GmbH. The shares slipped 0.1 percent to 39.88 euros.

To contact the reporter on this story: Nadja Brandt in Los Angeles at nbrandt@bloomberg.net

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Yahoo Investors Push for CEO Search to Start With Outsiders

By Crayton Harrison

Nov. 19 (Bloomberg) -- Yahoo! Inc. investors say the search to replace Chief Executive Officer Jerry Yang should focus on a turnaround artist from outside the Internet company who can draw Microsoft Corp. back into takeover talks.

Yahoo announced plans this week to replace Yang, fueling speculation the board will seek to woo Microsoft back. Hiring an insider such as President Susan Decker may signal Yahoo is planning ``more of the same,'' limiting the likelihood of new talks, said Darren Bagwell, director of equity research at Thrivent Asset Management Inc.

``Who's kidding who? We all know what the endgame is,'' said Bagwell, whose Appleton, Wisconsin-based firm had about $73 billion in assets under management, including Yahoo shares, as of September. ``The board finally recognizes that there's frustration and change is required.''

Possible candidates include former Yahoo executives Ellen Siminoff and Dan Rosensweig, he said. Whoever takes the job will be charged with rejuvenating a stock that has plunged by more than half since Yang took over and shoring up Internet advertising sales that are increasingly falling behind those of Google Inc.

UBS AG analyst Ben Schachter identified News Corp. President Peter Chernin and former EBay Inc. chief Meg Whitman as potential choices. Either may balk at joining a company that's only being prepared for a sale, according to Bagwell.

``Why would Chernin, Whitman or somebody like that really want to sign up for Yahoo?'' Bagwell said. ``If I were a betting man, I'd be leaning more toward a pick that's less high profile, probably somebody more operationally focused.''

Yahoo rose 92 cents, or 8.7 percent, to $11.55 yesterday on the Nasdaq Stock Market after Yang said he would step down once a successor is found. Microsoft advanced 43 cents to $19.62.

Siminoff's Side

Siminoff, a Yahoo senior vice president until 2002 and now chairman of Efficient Frontier Inc., declined to say whether Yahoo had contacted her.

``Yahoo's been down before but not out,'' she said in a phone interview yesterday. ``Jerry truly wants what is best for the company. If he stepped down, it meant that he thought it was time for a change.''

Chernin and Rosensweig, a former Yahoo chief operating officer, didn't return phone messages. EBay's Whitman couldn't be reached. Yahoo spokeswoman Kim Rubey declined to comment. The company confirmed yesterday that Decker, 46, is a candidate. Yahoo has hired Heidrick & Struggles International Inc. to help find a new leader.

Microsoft backed away from a $47.5 billion takeover bid for Yahoo this year. Less than two weeks ago, CEO Steve Ballmer said he has no interest in buying Yahoo. Frank Shaw, a spokesman for the Redmond, Washington-based software maker, declined to comment.

No Guarantees

``There's no guarantee that Microsoft comes back,'' said Clay Moran, an analyst at Stanford Group Co. in Boca Raton, Florida. ``You've got to create a strategy based on the expectation of being a stand-alone company.''

Yang, 40, will return to his role as Chief Yahoo, overseeing strategy, partnerships and recruiting with co-founder David Filo. His successor will face a deteriorating market for online advertising, thanks to the global economic crisis and a U.S. recession. Clients in the finance, travel, retail and automotive industries are cutting spending, Yang said last month.

Yang planned to expand Yahoo's share of the online advertising market by spending on technology to make the ad- buying process faster. His replacement will have to do more to help Yahoo catch Google, said Mark May, an analyst at Needham & Co. in New York.

``Where they've fallen behind the most is probably in terms of technological innovation and engineering,'' said May, who advises holding on to Yahoo shares. ``A media-centric CEO is probably not the right fit right now.''

To contact the reporter on this story: Crayton Harrison in Dallas at tharrison5@bloomberg.net.

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Euro Open: Australia To See Recession In 2009, Bank Of England Minutes Ahead

Daily Forex Fundamentals | Written by DailyFX | Nov 19 08 06:46 GMT |

Australia faces the risk of recession at the beginning of next year as the Westpac leading index plunged to the lowest in 23 years. The Euro and British Pound remained range-bound in overnight trading. The release of the minutes from the last meeting of the Bank of England headlines the economic calendar in European trading hours. Key Overnight Developments Australia At Risk of Recession in 2009, Says Westpac Euro, Pound Range-Bound in Overnight Trading The Euro stayed range-bound in overnight trading, consolidating in a 40-pip range above the 1.26 level. The British Pound followed suit, oscillating around the 1.4950 mark. Technical positioning points to the likelihood of a bullish correction in both EURUSD and GBPUSD before the dominant bearish trends regain momentum. Asia Session Highlights Australia's Westpac Leading Index fell -1.0% in September, the lowest in at least 23 years. The reading suggests the annualized growth rate has fallen to a meager 1.1%, a far cry from the average trend level at 3.9% and a dramatic drop-off from last month's 3.5%. This suggests the economy is on pace to sink into recession for the first time in 17 years. Indeed, Westpac's chief economist Bill Evans said that there is a 'decent risk that the first two quarters of growth in 2009 could be negative.' A separate report showed New Motor Vehicle Sales fell for the fourth consecutive month as the sluggish economy and elusive credit saw consumers shy away from big-ticket purchases. Policymakers have moved aggressively to offer fiscal and monetary stimulus, with the Reserve Bank of Australia slashing borrowing costs by a hefty 2% since September and the government offering A$10.4 billion ($6.8 billion) in handouts. The fiscal approach may prove most effective: Australia has some of the lowest household savings rate among OECD countries, suggesting consumers will actually spend the money being given to them and help boost demand. Meanwhile, it typically takes several months for the effects of rate cuts to filter through the broad economy. Still, traders continue to price in at least 175 basis points in additional monetary easing over the next 12 months. The Australian Dollar was indifferent to the release, with forex traders becoming arguably numb to continuously poor performance from the larger antipodean economy. Euro Session: What to Expect The release of the minutes from the last meeting of the Bank of England headlines the economic calendar in European trading hours. Mervyn King and company had embraced the rhetoric long espoused by perennially dovish MPC member David Blanchflower, moving aggressively to cut borrowing costs by a whopping 1.5%. Yesterday saw inflation slow more than expected in October with the Consumer Price Index falling to 4.5%, down from a 16-year high at 5.2% in the preceding month. This gives the BOE scope to continue to lower rates on the assumption that sluggish growth and sharply lower commodity prices will be enough to contain price growth. With the markets pricing in 100 basis points in additional rate reductions over the next 12 months, traders will be scanning the minutes document for clues about the pace of easing rather than is likelihood. So far, at least the Reserve Bank of Australia has expressed concern with creating entrenched rate cut expectations that would fuel continued depreciation of the domestic currency and stoke inflation, opting for a 'big bang' approach to get monetary stimulus out of the way quickly. The same considerations could very well be at work for the BOE, with the British Pound down over 25% since mid-July. DailyFX Disclaimer Investment in the currency exchange is highly speculative and should only be done with risk capital. Prices rise and fall and past performance is no assurance of future performance. This website is an information site only. Accordingly we make no warranties or guarantees in respect of the content. The publications herein do not take into account the investment objectives, financial situation or particular needs of any particular person. Investors should obtain individual financial advice based on their own particular circumstances before making an investment decision on the basis of the recommendations in this website. While we try to ensure that all of the information provided on this website is kept up-to-date and accurate we accept no responsibility for any use made of the information provided. All intellectual property rights are the property of Daily FX. Daily FX and its affiliates, will not be held responsible for the reliability or accuracy of the information available on this site. The content herein is provided in good faith and believed to be accurate, however, there are no explicit or implicit warranties of accuracy or timeliness made by Daily FX or its affiliates. The reader agrees not to hold Daily FX or any of its affiliates liable for decisions that are based on information from this website. Daily FX highly recommends that before making a decision, the reader collects several opinions related to the decision and verifies facts from at least several independent sources.

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Forex Technical Update

Daily Forex Technicals | Written by India Forex | Nov 19 08 05:38 GMT |

Euro: Euro witnessed a sideways trading within 133 pips in yesterday's session whereby it tested the bids at 1.2566. Currently Euro is trading below the resistance zone formed by the hourly and 4-hourly EMA's. Intraday shorts for 40 pips can be taken here (1.2630). The bias remains on the downside below the important resistance of 1.2820 (21 Daily EMA). Further shorts can be initiated around 1.28 levels for 70-80 pips. (Euro: 1.2628) Pound: Cable remained quiet yesterday as it traded within 190 pips. The upside was capped around 1.5090 levels (falling trendline) which determines an important resistance for Cable in today's session as well. Although, the daily charts are indicating some buying pressure, overall outlook remains on the downside. Initiate shorts around 1.51 levels with stops above 1.53. (Gbp/Usd: 1.4965) Yen: The Usd/Jpy pair continued to trade sideways in 140 pips touching the high of 97.41 in the US session yesterday. The hourly charts are showing an upside and the pair may take resistance around 97.28 levels (short-term falling trendline) where shorts can be initiated for 60-70 pips. (USD/JPY: 96.50) Rupee: The rupee opened lower today at 49.72 as compared to the previous close of 49.67, as weaker Asian equities raised concerns of foreign fund withdrawals from the local stock market. Rupee is expected to remain in the range of 49.00-50.00(USD/Re: 49.77) Swiss Franc: The Usd/Chf pair continued to trade above the 1.20 levels touching the high of 1.2044 in yesterday's session. Currently trading above the yesterday's high and taking resistance at the 55 Monthly EMA (1.2060); the pair may retrace slightly from current levels. However, with the charts are flattening in the overbought region, further upside for the pair cannot be ruled out. (Usd/Chf: 1.2050) Australian Dollar: Aussie traded within 160 pips yesterday touching the high's of 0.6576 taking resistance around the 55 4-hourly EMA. The 4-hourly charts are indicating further downside with immediate support coming in around 0.6340 levels. If this level is broken decisively then Aussie may re-test the previous low of 0.6009. Shorts could be initiated around 0.6650 levels (21 Daily EMA) for 60-70 pips. (Aud/Usd-0.6447) Gold: Gold witnessed a $13 move yesterday below the 21 Daily EMA. The charts are neutrally poised with resistance staying at $750. On the downside cluster support comes in at $735 levels, which if broken decisively can take this precious metal to $700 and below. Initiated shorts around $750 or at the breakout of $733 on the downside. (Gold: $737.30). Dollar index: Dollar index is currently trading around 87.51 levels with the stochastic at 74.79%. India Forex http://www.indiaforex.in DISCLAIMER These views/ forecasts/ suggestions, though proferred with the best of intentions, are based on our reading of the market at the time of writing. They are subject to change without notice.Though the information sources are believed to be reliable, the information is not guaranteed for accuracy. Those acting in the market on the basis of these are themselves responsible for any profits or losses that might occur, without recourse to us. World financial markets, and especially the Foreign Exchange markets, are inherently risky and it is assumed that those who trade these markets are fully aware of the risk of real loss involved.

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Hedge Funds Have Worst Two Months in At Least 8 Years

By Tomoko Yamazaki

Nov. 19 (Bloomberg) -- Hedge funds capped their worst two months in at least eight years in October as global declines in stocks and commodity prices curbed returns and investor withdrawals cut assets, according to Eurekahedge Pte.

The Eurekahedge Hedge Fund Index, tracking more than 2,000 funds that invest globally, dropped 4.5 percent last month after falling 5 percent in September, the Singapore-based data provider said. October's drop, based on 71 percent of constituent funds reporting as of today, pushed the index down 12 percent on the year, the worst since Eurekahedge began publishing data in 2000.

Investors withdrew a net total of $62.7 billion from hedge funds last month, according to Eurekahedge, shrinking the industry by $110 billion to $1.65 trillion of assets as markets tumbled amid a global recession. Assets may fall to about $1 trillion by the middle of next year, Citigroup Inc. said in a report this week.

``The industry will probably face more redemptions for a while,'' said Akihiro Nishi, executive director at Tokyo-based Mitsubishi Asset Brains Co.'s investment advisory division. ``The decline is a reflection that a majority of hedge funds seem to be taking risks betting more on beta,'' a gauge of a fund's risk that measures the volatility of its past returns in relation to the returns of the benchmark.

The October loss compares with a 19 percent decline in the MSCI World Index, which tracks more than 1,700 companies worldwide, and a 22 percent drop in the Reuters Jefferies CRB Index, a benchmark for commodities.

Hedge Funds Fold

About 350 hedge funds shut down in the first half of this year, up 16 percent from 303 a year earlier, according to Hedge Fund Research Inc. An estimated 700 may go out of business by the end of the year, according to the Chicago-based firm.

``The hedge fund industry is witnessing some of the biggest asset outflows in over three years, but we also continue to see less risk-averse investors seeking entry into previously closed funds or retaining their current allocations in view of substantial future gains,'' Eurekahedge said in its October performance commentary, posted on its Web site.

Hedge funds are mostly private pools of capital whose managers participate substantially in the profits from their speculation on whether the price of assets will rise or fall.

Best Performers

By strategy, managers trading futures, known as commodity trading advisers or CTA funds, outperformed the industry by exploiting directional trends in the commodity and currency markets, Eurekahedge said. Similar trades also helped boost the performance of macro-fund managers, who wager on trends in stocks, bonds and currencies worldwide, the firm said.

Managers of so-called long-short funds, who bet on rising and falling prices, had the biggest redemptions last month at $24 billion, followed by CTAs, which saw withdrawals of $12.3 billion as investors made wrong-way bets on commodity prices. Other strategies saw single-digit redemptions, Eurkeahedge said.

In terms of regional mandates, the Eurekahedge Japan Hedge Fund Index was the best performer, declining 2.8 percent in October even as the benchmark Topix index slid 20 percent.

Trades that involved selling regional stocks while taking advantage of currency moves helped stem losses, Eurekahedge said in a preliminary report last week. The yen strengthened more than 7 percent against the dollar in October, the most in a decade.

Funds investing in Latin America followed with a 3.8 percent drop, while the Eurekahedge Asian Hedge Fund Index lost 5.3 percent and the Eurekahedge North American Hedge Fund Index fell 4.7 percent.

The index tracking emerging-market hedge funds was the worst performer, declining 8.1 percent, while the Eurekahedge European Hedge Fund Index slid 7.2 percent, according to the data provider. All October index data are preliminary figures.

To contact the reporter on this story: Tomoko Yamazaki in Tokyo at tyamazaki@bloomberg.net

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Asia Session Recap

Daily Forex Fundamentals | Written by Forex.com | Nov 19 08 06:35 GMT |

This session's big question would have to be whether the moves (or lack thereof), that we saw are a return to the markets prior to the credit turmoil, or a proverbial 'calm before the storm'. I don't have an answer for you, but there is no dismissing the fact that in comparison to the moves we have become accustomed to over the past few months, the past eight hours were like watching paint dry. The big mover of the session was undoubtedly USD/JPY, which saw the Yen strengthen on speculation that there will be no $25 Billion bailout for the big three US auto makers. The USD/JPY pair peaked early at near 97.16, and it was all downhill from there as the pair finally put on the brakes near 96.33 and reversed closer to 96.60 to close out the session. The Yen also gained a bit of steam as the carry trade was once again abandoned, and as it was abandoned EUR/JPY fell from early highs of 122.70 to 121.46. AUD/JPY saw the bigger decline, as it fell from 63.41 early on to 62.14 by session end as Asian stocks looked soft. The AUD/JPY has lost almost 2% from early yesterday, NZD/JPY almost 1%. The EUR/USD did almost nothing all session and stuck in about a 35 pip range in subdued action. The GBP/USD made a quick break to the downside, but was still unable to beak the 1.4900 figure it had tested earlier in NY. Most other pairs were stagnant, and as stated earlier can this be the beginning, or the end. Upcoming Economic Data Releases (London Session): 11/19/2008 3:50 AU Assistant RBA Governor Edey Gives Speech in Sydney 19-Nov 11/19/2008 9:30 AU Reserve Bank Governor Stevens Speaks in Melbourne 19-Nov 11/19/2008 9:30 UK Bank of England Minutes 19-Nov 11/19/2008 10:00 GE Bundesbank's Reckers Holds Speech in Frankfurt 19-Nov 11/19/2008 11:00 UK U.K. CBI November Industrial Trends 19-Nov Forex.com http://www.forex.com DISCLAIMER: The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase of sale of any currency. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

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Asian Market Update

Daily Forex Fundamentals | Written by Trade The News | Nov 19 08 06:48 GMT |

Rescue plea by car makers put to test on the Hill, Asia markets pare early gains In the most dire display of desperation, CEO's of the US 'Big-Three' automaker companies pleaded reluctant Congress to bail out their industry, contending that staying afloat without a lifeline from the government in the immediate future will be difficult. Speaker of the House Nancy Pelosi appeared favorable to the cause, urging Congress to move on a decision as early as this week as time becomes of the essence ahead of December Washington break, however Congressional members across both parties appeared to be skeptical. Automaker executives used a variety of arguments - from the inherent interconnectedness of domestic auto industry with the rest of the economy, to the progress that has already been made in reforming the viability of their business models. Entrenched difficult economy, reined in consumer spending, and tight credit conditions have made this a difficult choice for the legislators however, who were still visibly seething from (in the words of one Senator) being told that 'fundamentals are sound, to being asked for bazooka-size bailout for banks, to discovering that the funds they appropriated would not be used as intended.' Additionally, UAW labor union chief contending that concessions have already been made, as well as an academic from University of Maryland arguing that federal aid would create another AIG while recommending bankruptcy to restructure companies costs contributed to lawmakers skepticism. And while President-elect Obama has stated his support in helping the auto industry, the current administration is still not willing to spend taxpayer money on 'company that can't prove that it has a long-term path for success.' Equity markets in Asia initially rallied, tracking the gains made by US indices in the final hour of trading, thanks in part to a solid Q4 outlook from tech bellwether Hewlett-Packard. However, with little else to get excited about from other sectors, the early gains were pared by mid-session across the board. Nikkei225 traded over 1% to the downside on the other side of the lunch break amid reported weakness from housing and financial names. Mitsubishi Estate cites a sharp slowdown in commercial tenant market while its financial relative - Mitsubishi UFJ - posted a 60% drop in profit. Likewise, Sumitomo Mitsui bank was under financial duress, disclosing the need to raise 400B yen ($4B) by selling preferred securities. In South Korea, Vice Finance Minister Kim reiterated most recent dim assessment from officials, stating that domestic economy is weakening further while expressing administration plans to focus on creating jobs and help smaller businesses. Testament to deteriorating regional fundamentals, investors in Korea's electronics powerhouse Samsung reportedly asked company management to focus on cheaper laptops and mobile phones as well as to slow pace of production of large screen TVs, while also requesting less spending on semiconductors and LCD displays next year. Meanwhile, Central Bank chief Lee pledged to supply timely short-term liquidity to money markets. S Korea's Kospi traded off by over 1% in mid-Asian hours. Australia received another round of sobering economic data with release of Westpac leading index figure below -0.1% estimates at -1.0%, sparking a selloff in equities to fresh 4-year lows in S&P/ASX, however those losses were subsequently retraced, with the index falling by just over 0.5% toward session close. RBA member Edey spoke at Economic Outlook Conference, commenting on persisting uncertainty and forecasting significant further slowing in the economy while allowing for the central bank's monetary action and the government's fiscal measures to 'cushion' the decline. Aussie oil names like Woodside Petroleum were particularly heavily sold as slumping energy demand pushed crude prices below $55 - a 22-month low. Equity indices in India meanwhile cheered additional remarks from the country's Finance Minister, who pledged government focus to stimulate domestic demand via a stimulus package while also commenting on central bank bias toward more accommodative monetary policy. Sensex thwarted selloff elsewhere in Asia with a 1.8% rally. Shanghai Composite was also notably higher on announcement of possible rise of oil prices in China stemming from OPEC production cuts. This may not sit well among increasingly dissatisfied with financial hardships populace - a development underscored by riots reported from Northwestern Gansu province in response to local governments forced resettlement scheme. Protests by workers laid off from local factories impacted by global economic decline escalated into violence against police force and commercial property in what could still evolve into another historic manifestation of mass opposition to central planning system, as its systemic weaknesses become exaggerated by a global economic downturn. In currencies, volatility among the majors remains subdued for second consecutive session. EUR/USD oscillated in a tight 1.26-2640 range for the duration of the Asian session, GBP/USD rebound was contained by former support turned resistance at 1.4980 despite the late rally in US markets, while USD/CHF took out 1.2050 en route to fresh 2008 low for Swiss franc. Japanese Yen rallied in conjunction with Asian equity market weakness, however the USD/JPY downside was thwarted by US session low just above 96.30. EUR/JPY slid from 122.50 to 121.50 with subsequent support found at US session low of 121.00. GBP/JPY has also traded with little directional momentum, finding consistent buying interest below 144.00 figure. Among commodity related pairs, AUD traded with a heavy tone for second consecutive session, paring earlier gains with a selloff toward 0.6420 while aiming for week low of 0.6370. USD/CAD traded marginally to the upside, testing session highs of 1.2330 on continued selling in crude. Among emerging Asian FX, Hong Kong dollar rally was reported to be interrupted by injection from HKMA at 7.75. USD/SGD briefly tested fresh multi-month highs just below 1.53, while USD/KRW maintained its clearly defined November uptrend with a new high above 1,460. In commodity trading, crude oil is higher by more than (%) and trading below $55.00/bbl. Overall crude has swung between gains and losses on the session and trading has been confined to a roughly $0.55 range. In terms of the speculation related to a Nov OPEC output cut, the cartel's Secretary General noted that it is too early to talk about cutting oil supplies. In China, the CEO of one of the country's largest oil companies, CNOOC, said that national oil companies in the country are expecting oil prices to fall to $40/bbl. This comments follow a WSJ report which disclosed that China's Oct fuel demand fell sharply. Despite the declining demand for oil in China, a government researcher noted that the government plans to introduce a retail fuel tax “soon” in a move to support local oil companies. In India, there are reports that the government may seek to lower retail fuel taxes as a way to provide aid to the country's airlines and stimulate travel demand. Looking ahead, today's US Department of Energy weekly inventories report is expected to show that crude stocks rose by 1M barrels during the prior week, according to 1 survey. Spot Gold is higher by more than 0.50% and the metal has traded in a $3 range for most of the session. Spot gold continues to lack direction as it deals with being a safe haven asset and demand for the USD. Earlier on the session an unconfirmed report noted that China's central bank is examining raising its gold reserves to as much as 4K tons from the current level of approximately 600 tons in a move to diversify its foreign exchange reserves. This report was in line with a prior report in the HK Standard and comes on the day that it was announced that China surpassed Japan to become the largest foreign holder of US Treasuries. According to an analyst at Investec, if China raised its gold holdings to 4,000 tons it would be like going back to the gold standard. Amid the speculation about China diversifying its fx reserves, which are mostly dollar denominated, Japan's Ministry of Finance Official Shinohara noted that the USD needs to remain as the reserve currency, echoing recent comments out of Japan's PM and Finance Minster. Trade The News Staff Trade The News, Inc. Legal disclaimer and risk disclosure All information provided by Trade The News (a product of Trade The News, Inc. "referred to as TTN hereafter") is for informational purposes only. Information provided is not meant as investment advice nor is it a recommendation to Buy or Sell securities. Although information is taken from sources deemed reliable, no guarantees or assurances can be made to the accuracy of any information provided. 1. Information can be inaccurate and/or incomplete 2. Information can be mistakenly re-released or be delayed, 3. Information may be incorrect, misread, misinterpreted or misunderstood 4. Human error is a business risk you are willing to assume 5. Technology can crash or be interrupted without notice 6. Trading decisions are the responsibility of traders, not those providing additional information. Trade The News is not liable (financial and/or non-financial) for any losses that may arise from any information provided by TTN. Trading securities involves a high degree of risk, and financial losses can and do occur on a regular basis and are part of the risk of trading and investing.

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