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Hungary Says German Criticism of Constitution Is ‘Unacceptable’

http://www.bloomberg.com/news/2011-04-19/hungary-says-german-criticism-of-constitution-is-unacceptable-.html

German criticism of Hungary ’s newly adopted constitution was rejected as “baffling and unacceptable,” by the Hungarian foreign ministry. Remarks by Werner Hoyer, German deputy foreign minister, “evaluate an internal political matter,” the ministry said in a statement on its website today. It said the German government was briefed several times on the constitutional plans. The constitution, approved by parliament in the face of protests and a boycott by two opposition parties, adds to concerns about the policies of Prime Minister Viktor Orban ’s government, particularly on minority rights, Hoyer said in an e- mailed statement yesterday. Fears fueled by the adoption of a controversial media law have been sharpened, he said. The ministry said the constitution strengthens minority rights and reinforces rather than curbs the rule of law. It’s “especially unacceptable” that Hoyer’s statement refers to the media law, which the government modified in line with European Union requirements, the ministry said. Orban, who won a two-thirds majority in parliament last year, says the constitution completes the transition to democracy that began after the collapse of communism. Opponents claim it amounts to a “constitutional coup.” To contact the reporter on this story: Edith Balazs in Budapest at ebalazs1@bloomberg.net To contact the editor responsible for this story: James M. Gomez at jagomez@bloomberg.net

Doral, Golar LNG, Red Hat, Wynn Resorts: U.S. Equity Movers

http://www.bloomberg.com/news/2011-04-19/ibm-intel-juniper-yahoo-wynn-resorts-u-s-equity-preview.html

Shares of the following companies had unusual moves in U.S. trading. Stock symbols are in parentheses and prices are as of 4 p.m. in New York. Albemarle Corp. (ALB) rallied 12 percent to $64.87 for the second-biggest increase in the Russell 1000 Index. The maker of specialty chemicals reported first-quarter profit excluding some items of $1.15 a share, beating the average analyst estimate by 20 percent, Bloomberg data show. Amphenol Corp. (APH) rose 6.5 percent, the most since Sept. 1, to $54.92. The maker of electronic and fiber optic connectors and cable forecast second-quarter sales of at least $985 million, beating the average analyst estimate of $979.8 million in a Bloomberg survey. Autoliv Inc. (ALV) climbed 7.6, the most since May 10, percent to $78.15. The world’s biggest producer of automotive seatbelts and air bags reported first quarter adjusted earnings of $1.93 a share, beating the average analyst estimate of $1.74. Bancorp Rhode Island Inc. (BARI) surged 43 percent, the most since March 1998, to $44. The company for Bank Rhode Island agreed to be bought by Brookline Bancorp Inc. (BRKL) for $234 million in cash and stock. Brookline fell 11 percent to $9.01. Doral Financial Corp. (DRL) advanced 28 percent, the most since November 2009, to $1.33. The Puerto Rico bank holding company said it earned 1 cent a share in the first quarter. Two analysts surveyed by Bloomberg both estimated a loss of 14 cents. Golar LNG Ltd. (GLNG) rose 16 percent to $30.50, the highest price since at least December 2002. The liquefied natural gas shipping line said it doesn’t need to raise additional equity to fund the construction of new carriers. Hanesbrands Inc. (HBI) gained 6.4 percent to $30.99, the highest price since June 2008. The maker of Playtex and Hanes underwear forecast earnings in 2011 will be as much as $2.90 a share, topping the $2.71 average estimate of analysts. Intel Corp. (INTC) advanced 7.8 percent, the most since March 2009, to $21.41. The biggest chipmaker forecast second- quarter sales that may top analysts’ estimates as demand for processors for high-powered machines that handle Web services overcame slower personal computer growth. Intel also raised its capital spending estimate for the year. Piper Jaffray Cos. (PJC US) declined 5.5 percent, the most since Feb. 22, to $35.87. The Minneapolis-based brokerage posted first-quarter profit of 38 cents a share excluding some items, trailing the average analyst estimate in a Bloomberg survey by 27 percent. Polaris Industries Inc. (PII) jumped 21 percent to $110.28, the highest price since 1987. The snowmobile maker forecast earnings in 2011 will be at least $5.53 a share, topping the average analyst estimate of $4.87. Red Hat Inc. (RHT) gained 5.8 percent to $47.71, the highest price since Dec. 21. The largest seller of the Linux operating system is likely to benefit from Attachmate Corp.’s acquisition of Novell Inc. (NOVL) , Piper Jaffray Cos. (PJC) said in a note to clients, citing a survey of Red Hat’s partners. United Technologies Corp. (UTX) rose 4.3 percent to $85.90, the highest price since at least 1980. The maker of Pratt & Whitney jet engines said 2011 sales will be at the high end of its forecast buoyed by demand for Carrier air conditioners and refrigeration. VMware Inc. (VMW) rallied 14 percent to $97.90 for the biggest increase in the Russell 1000 Index. The biggest maker of programs that let computers run multiple operating systems reported first-quarter profit that topped analysts’ estimates as it benefited from a foray into storage and desktop software. Wells Fargo & Co. (WFC) fell 4.1 percent, the most since Oct. 15, to $28.83. The largest U.S. home lender said first- quarter revenue fell 5.2 percent to $20.3 billion as fees from mortgage banking declined and average loans outstanding decreased. Wynn Resorts Ltd. (WYNN) rose 6.5 percent to $147.92, the highest intraday price since November 2007. The owner of the Wynn and Encore casinos reported first-quarter profit rose sixfold, beating analysts’ estimates, lifted by a second Macau resort and improved results in Las Vegas. Yahoo! Inc. (YHOO US) increased 4.7 percent, the most since Nov. 18, to $16.87. The most-visited U.S. Web portal reported first-quarter sales that topped estimates as companies stepped up their use of Internet advertising. To contact the reporter on this story: Lu Wang in New York at lwang8@bloomberg.net To contact the editor responsible for this story: Nick Baker at nbaker7@bloomberg.net

Middle East Oil-Shipping Costs Slump for Seventh Day in a Row

http://www.bloomberg.com/news/2011-04-19/middle-east-oil-shipping-costs-slump-for-seventh-day-in-a-row.html

The cost of shipping Middle East oil to Asia , the world’s busiest route for supertankers, fell for a seventh day as an excess supply of vessels cut the amount owners could charge for charters. Charter rates for very large crude carriers, or VLCCs, on the industry’s benchmark Saudi Arabia-to-Japan route dropped 0.3 percent to 49.92 Worldscale points, according to the Baltic Exchange in London. Returns from the voyage, which take fuel- cost changes into account, declined 11 percent to $2,272 a day, the lowest level since Oct. 8. “The tonnage list refuses to shrink,” Erik Nikolai Stavseth, an analyst at Arctic Securities ASA in Oslo, said by e-mail today. Any recovery in charter costs “appears to be put on hold” until the vessel glut decreases “radically,” he said. The VLCC fleet’s transportation capacity will expand by 6.9 percent this year to 172 million deadweight tons, according to data from Clarkson Research Services Ltd. , a unit of the world’s biggest shipbroker. That would be more than double the 2.8 percent increase in demand it predicts. Worldscale points are a percentage of a nominal rate, or flat rate, for more than 320,000 specific routes. Flat rates for every voyage, quoted in U.S. dollars a ton, are revised annually by the Worldscale Association in London to reflect changing fuel costs, port tariffs and exchange rates. Each flat rate assessment gives owners and oil companies a starting point for negotiating hire rates without having to calculate the value of each deal from scratch. The Baltic Dirty Tanker Index, a measure of crude-oil transportation costs that includes vessels smaller than VLCCs, rose 1 percent to 844 points, according to the Baltic Exchange. To contact the reporter on this story: Alaric Nightingale in London at anightingal1@bloomberg.net To contact the editor responsible for this story: Stuart Wallace at swallace6@bloomberg.net

Swan Says Australia Budget Pressured by Currency, Lower Revenue

http://www.bloomberg.com/news/2011-04-19/swan-says-australia-budget-pressured-by-currency-lower-revenue.html

Australian Treasurer Wayne Swan says the government will make unpopular budget cuts to deliver a surplus as natural disasters crimped tax revenue and a strong currency put “immense” pressure on parts of the economy. Revenue this fiscal year will fall more than A$4.5 billion ($4.7 billion) because of two months of flooding and a tropical cyclone in the northeastern state of Queensland, Swan will say today in Brisbane, according to excerpts of prepared remarks given to reporters. The Australian dollar’s 13 percent gain in the past year is hurting tourism, education and manufacturing, according to the e-mailed notes of the speech. Voters oppose rushing to bring the budget into surplus, with 61 percent in a Nielsen opinion survey published in the Age newspaper April 18 saying the government could delay its efforts. “We will withstand the impacts of natural disasters just like we withstood the global financial crisis and our economic fundamentals remain very strong,” Swan will say. “We take no joy in announcing cuts to this budget.” Prime Minister Julia Gillard has pledged to achieve a surplus in the year ending June 30, 2013. Swan in November forecast a A$41.5 billion deficit in the current fiscal year, followed by A$12.3 billion shortfall the following year. The budget, due to be presented to parliament on May 10, will deliver a A$3.1 billion surplus in 2012-13, those forecasts said. Mining companies will increase investment and attract more workers, stretching the economy’s capacity in coming years, Swan will say. To contact the reporter on this story: Gemma Daley in Canberra at gdaley@bloomberg.net To contact the editor responsible for this story: Peter Hirschberg at phirschberg@bloomberg.net

Air-Traffic Snoozers Risk Sky-Hopping Wakeup: Margaret Carlson

http://www.bloomberg.com/news/2011-04-19/air-traffic-snoozers-risk-sky-hopping-wakeup-margaret-carlson.html

Some mistakes are such doozies, with consequences so serious, that the only honorable thing for the perpetrator to do is own up, resign and make amends. In Washington, that rarely happens. There may be as many as 6,600 mislabeled or unmarked graves at Arlington National Cemetery, and the closest thing to accountability so far is that two cemetery officials were allowed to retire. Bankers who threw the economy into a meltdown remain Too Big to Resign. Invade a country based on faulty rationales, then bungle the occupation? George W. Bush bestowed the Presidential Medal of Freedom on three architects of the war in Iraq. No wonder voters are angry: Nobody’s ever wrong. Nobody’s ever sorry. Then last week, someone was. Henry Krakowski, chief of the Federal Aviation Administration’s Air Traffic Organization , resigned after a string of frightening instances of air-traffic controllers asleep at the switch -- literally. Krakowski, a Boeing 737 captain and former vice president of United Airlines in charge of safety who did aerobatic stunts on the side, was in charge of the country’s 15,000 controllers. In January and again in April, a controller at Seattle ’s King County International Airport dozed off a total of three times, twice during the same shift. At Reno-Tahoe International Airport in Nevada , an airborne ambulance with a sick patient on board circled the runway for 16 minutes while a controller got his forty winks. Close to Capitol The lapse that embarrassed the FAA the most occurred at Ronald Reagan Washington National Airport , 20 minutes from the Capitol. As the most frequent of fliers, members of Congress were outraged that two jets had to land on their own when they couldn’t rouse anyone. What’s amazing when you pull back the curtain on the conditions in the country’s towers is that there aren’t more near-collisions and that at least one of those doesn’t result in a midair crash. There are a lot of officials at fault for the Rip Van Winkles in front of blinking radar screens, all the way up to Transportation Secretary Ray LaHood. Pitifully, LaHood called for extending from eight to nine hours the minimum time between shifts, a gesture unlikely to make much of a difference. At 27 airports, instead of one controller on the night shift, the FAA says there will now be two. No Rest The one fix that could make a difference immediately is managing the inevitable fatigue of the late shift. Firemen, emergency-room doctors and others burning the midnight oil rest during their time on duty. In some European countries, air- traffic controllers get a quiet room with a cot. Earlier this year, a working group of officials from the FAA and the National Air Traffic Controllers Association looked at research by the Air Force , NASA and sleep experts and recommended that controllers be allowed to take naps while colleagues covered for them. They were ignored. When it came up again during the recent trouble, LaHood shot it down: “On my watch, controllers will not be paid to take naps.” If Krakowski offers a class in accountability, there’s a U.S. senator who probably should attend. Thanks to a Freedom of Information Act request by the website smokinggun.com, we learned last week the grisly details of a reckless, unauthorized landing by Oklahoma Republican Senator James Inhofe last October at a Texas airport near his vacation house on South Padre Island. Sky-Hopping Flying his own Cessna, Inhofe chose to disregard the giant X marking the runway as closed. He sent workers running for their lives as he “sky-hopped” over them and six vehicles. One was reportedly hit by debris, others felt the “backwash of the propeller” and still another, according to a supervisor, almost “wet his britches” he was so scared. A senator wants to land where a senator wants to land. According to the FAA report , Inhofe noticed the X, but “still elected to land.” Airport manager Marshall Reece said, “I got over 50 years flying, three tours in Vietnam , 23,000 hours, I can assure you I have never seen such a reckless disregard for human life in my life.” Inhofe offered various explanations: he thought he had “unlimited” use of the airport space, landed to the side of workers, and is only being criticized because an airport official he didn’t name “hates” him. Recklessness and Recidivism One entity that doesn’t hate him is the FAA, which had every reason to ground him and take action for what might be considered , to quote its safety manual, “deliberate, willful violations which involve gross negligence, recklessness, recidivism” -- Inhofe had two previous accidents, both very minor -- “or flagrant disregard of” FAA rules. Instead, Inhofe submitted evidence that he’d gone for remedial training, the equivalent of traffic school. Unlike senators, who don’t have to say they’re sorry and play by different rules, Krakowski stepped up, setting a land record for speed -- less than a month between public outrage and packing it in. We should name an airport after him. ( Margaret Carlson , author of “Anyone Can Grow Up: How George Bush and I Made It to the White House” and former White House correspondent for Time magazine, is a Bloomberg News columnist. The opinions expressed are her own.) To contact the writer of this column: Margaret Carlson in Washington at mcarlson3@bloomberg.net To contact the editor responsible for this column: James Greiff at jgreiff@bloomberg.net

Euro Advances Against Yen, Dollar; Trades 0.3 Percent Stronger at 117.99

http://www.bloomberg.com/news/2011-04-19/euro-advances-against-yen-dollar-trades-0-3-percent-stronger-at-117-99.html

The euro climbed against the yen to trade 0.3 percent stronger at 117.99 as of 11:07 a.m. in London. Japan ’s currency pared gains versus the dollar, trading less than 0.1 percent stronger at 82.59. The euro was 0.3 percent stronger at $1.4277. To contact the reporter on this story: Matthew Brown in London at mbrown42@bloomberg.net To contact the editor responsible for this story: Matthew Brown at mbrown42@bloomberg.net

Volkswagen Group More Than Triples First-Quarter India Sales

http://www.bloomberg.com/news/2011-04-19/volkswagen-group-more-than-triples-first-quarter-india-sales.html

Volkswagen AG (VOW) more than tripled first-quarter sales in India to 28,072 vehicles, it said in a statement on its website today. The Volkswagen brand lead gains with sales jumping more than 10-fold to 18,244 vehicles. To contact the editor responsible for this story: Neil Denslow at ndenslow@bloomberg.net

Al Jouf, Bank Al Jazira, Doha Bank, Sorouh: Gulf Equity Preview

http://www.bloomberg.com/news/2011-04-19/al-jouf-bank-al-jazira-doha-bank-sorouh-gulf-equity-preview.html

The following stocks may rise or fall in Persian Gulf markets. Stock symbols are in parentheses and prices are from the last close. Dubai’s DFM General Index (DFMGI) climbed 0.3 percent to 1,652.76, the highest level since Jan. 10. Kuwait’s gauge advanced 0.5 percent, while Saudi Arabia ’s Tadawul All Share Index (SASEIDX) rose less than 0.1 percent. Al Jouf Cement Co. (JOUF AB): The Saudi Arabian producer of building materials said its first-quarter profit increased to 28.2 million riyals ($7.5 million) from 5.2 million riyals a year ago. The shares gained 5.7 percent to 13.05 riyals. Astra Industries Group (ASTRA AB): The Saudi holding company said first-quarter profit advanced to 62 million riyals compared with 57.9 million riyals in the same period a year earlier. The shares fell 0.3 percent to 35.5 riyals. Aseer (ATTMCO) Company for Trading, Tourism, Agriculture, Real Estate & Contracting (ATTMCO AB): The Saudi company said first- quarter profit increased to 25 million riyals ($6.7 million) from 20 million riyals a year earlier. The shares dropped 0.4 percent to 13.9 riyals. Bank Al Jazira (BJAZ AB): The Saudi Arabian lender said first-quarter profit increased to 62 million riyals from 13 million riyals a year ago. The shares climbed 2.3 percent to 20 riyals. Doha Bank QSC (DHBK) : Qatar’s fourth-biggest bank by assets said first-quarter profit rose 15 percent to 363 million riyals ($99.7 million). The shares fell 0.6 percent to 51.5 riyals. Jabal Omar Development Co. (JOMAR) : The real-estate developer based in Saudi Arabia’s holy city of Mecca signed an agreement to raise 1.35 billion riyals in bridge financing from five banks. The loan is part of a 5 billion-riyal borrowing plan over the coming few months. The shares declined 0.7 percent to 15.25 riyals. Saudi Advanced Industries Co. (SAIC) : The Riyadh-based company that manufactures airplane parts said its unit Alsalam Aircraft Co., in which it owns 10 percent, signed a 545 million- riyal contract with the country’s air force for the maintenance of C-130 aircraft. The shares were unchanged at 15.8 riyals. Saudi Basic Industries Corp. (SABIC) : The world’s biggest petrochemicals maker said first-quarter profit surged 42 percent to 7.69 billion riyals from a year ago. The shares retreated 0.7 percent to 106.25 riyals. Sorouh Real Estate Co. (SOROUH) : Abu Dhabi ’s Urban Planning Council signed housing contracts valued at 13.5 billion dirhams ($3.7 billion) including a 2.89 billion-dirham deal with Sorouh to build 7,500 houses for United Arab Emirates ’ nationals. The shares were unchanged at 1.45 dirhams. Saudi Electricity Co. (SECO) : The state-controlled power producer reported a first-quarter loss of 774 million riyals compared with a loss of 782 million riyals a year ago. The shares dropped 0.4 percent to 13 riyals. To contact the reporters on this story: Alaa Shahine in Dubai at asalha@bloomberg.net To contact the editor responsible for this story: Claudia Maedler at cmaedler@bloomberg.net

Enagas Quarterly Net Rises 4.8% as Company Adds Grid Assets

http://www.bloomberg.com/news/2011-04-19/enagas-quarterly-net-rises-4-8-as-company-adds-grid-assets-1-.html

Enagas SA, the operator of Spain ’s natural-gas grid, said first-quarter profit rose 4.8 percent as it added network assets. Net income increased to 86 million euros ($123 million) from 82 million euros a year earlier, the Madrid-based company said today in a regulatory filing. Sales from regulated operations rose 4.2 percent to 242 million euros. Enagas, which earns a fixed return on investments, has purchased assets and invested in expanding its network. Chief Executive Officer Antonio Llarden forecasts net income will rise at an average annual pace of at least 7 percent from 2009 through 2014. The company aims to increase profit by about 5 percent this year. It plans to invest 650 million euros in 2011 and forecasts it will start operating 650 million euros of assets. Enagas (ENG) invested 130 million euros in the first quarter and started operating 165 million euros of assets. Enagas plans to put 3.4 billion euros of assets in operation through 2014, or an average of 680 million euros a year, more than the average of 550 million euros in 2007 through 2009, the company said on July 20. It will invest 700 million euros a year on average through 2014. Net debt climbed to 3.18 billion euros at the end of March from 3.02 billion euros a year earlier and the average cost of debt increased to 2.76 percent from 2.72 percent a year earlier. Besides pipelines, Enagas is also investing in liquefied natural gas terminals and the El Musel regasification plant is under construction. The company runs three of Spain’s six regasification terminals that turn liquefied natural gas back into gas. Spain is Europe ’s biggest importer of LNG. CEO Llarden on March 24 said the company forecasts domestic natural gas demand this year will climb 1.5 percent. Spanish gas demand fell 0.1 percent in 2010. Enagas shares have climbed 5.5 percent in Madrid this year, giving the company a market value of 3.76 billion euros. To contact the reporter on this story: Joao Lima in Lisbon at jlima1@bloomberg.net To contact the editor responsible for this story: Will Kennedy at wkennedy3@bloomberg.net

Cantor, Kyl Named to Deficit-Cutting Talks by Republicans

http://www.bloomberg.com/news/2011-04-19/cantor-kyl-named-to-deficit-cutting-talks-by-republicans-2-.html

Top Republicans in Congress named House Majority Leader Eric Cantor and Senate Minority Whip Jon Kyl to represent them in White House talks over reducing the U.S. government deficit. President Barack Obama invited leaders to begin talks May 5 with Vice President Joe Biden on a comprehensive plan to reduce long-term government spending. The goal of the talks is to seek agreement on spending controls that Republican leaders insist is a prerequisite to raising the government’s $14.3 trillion limit. The Treasury Department projects the national debt will reach the limit by May 16 and says it may use emergency measures to avoid default until early July. “I remain skeptical that the administration will take this effort seriously” because “President Obama had to be dragged kicking and screaming to consider minimal spending cuts for the rest of this fiscal year,” Cantor said in a statement in which House Speaker John Boehner announced the appointment. Congress passed legislation last week to avert a government shutdown by cutting $38.5 billion in spending authority this year. The talks that led to that agreement involved Boehner, Senate Majority Leader Harry Reid and Obama. Kyl, an Arizona senator who isn’t seeking re-election next year, was named by Senate Republican leader Mitch McConnell as his representative at the new talks. ‘Credible Path’ McConnell of Kentucky said he was “encouraged to see the president acknowledge” in an April 15 interview “there is bipartisan opposition in the Senate to raising the debt ceiling unless we do something significant about the debt.” “A serious and credible path forward to reduce spending is the only thing” that “will get Republican votes in the Senate to raise the debt ceiling,” McConnell said. Reid of Nevada named as his negotiators Finance Committee Chairman Max Baucus of Montana and Hawaii Senator Daniel Inouye, the Appropriations Committee chairman. On April 17, House Democratic leader Nancy Pelosi named Assistant Democratic leader Jim Clyburn of South Carolina and Maryland Representative Chris Van Hollen, the House Budget Committee’s ranking Democrat, to represent House Democrats at the talks. In an interview today with Bloomberg Television, Treasury Secretary Timothy Geithner voiced confidence that congressional leaders will reach an agreement to reduce the debt and narrow annual budget deficits. “We have an opportunity now over the next two months” to put “in place strong targets for savings, deficit reduction over a specific time frame with enforceable limits,” he said. To contact the reporter on this story: James Rowley in Washington at jarowley@bloomberg.net To contact the editor responsible for this story: Mark Silva at msilva34@bloomberg.net

MSRB Adviser Rule, N&P Fined, ICICI Credit Curb: Compliance

http://www.bloomberg.com/news/2011-04-19/msrb-advisor-rule-n-p-fined-icici-credit-curb-compliance.html

Financial advisers to municipal governments will be limited in their ability to make campaign contributions under a new rule adopted by the Municipal Securities Rulemaking Board. The limits, adopted at the agency’s two-day meeting in Nashville last week, need approval by the Securities and Exchange Commission, said Michael Bartolotta, chairman of the Washington-based board, which oversees the $2.9 trillion market for state and local government debt. The restrictions would make advisers subject to board regulation for the first time, Bartolotta said in a conference call with reporters yesterday. By limiting use of campaign contributions to win advisory work, the MSRB wants those firms to be chosen based on “skill and merit,” he said. Under the rule , advisers would be banned from working for governments to which they made campaign contributions to elected officials. Advisers will face the same limits as underwriters. The MSRB now bans contributions to issuer officials who influence hiring underwriters and advisers, with limited exceptions. The MSRB, with new authority over municipal advisers under the Dodd-Frank legislation overhauling financial market regulation, took other steps to oversee advisers that help state and local governments plan bond sales, enter derivative contracts and run pension plans. The board is seeking comment on a draft rule on the supervision of municipal advisers. Compliance Action Norwich and Peterborough to Pay $84 Million Over Keydata Sales Norwich and Peterborough Building Society was fined 1.4 million pounds ($2.3 million) for failing to advise customers about the risks of investing in Keydata Investment Services Ltd. structured products. Norwich and Peterborough, a British customer-owned lender, also agreed to pay 50 million pounds to compensate customers for losses, the U.K. Financial Services Authority said in a statement yesterday. The lender didn’t give 3,200 customers suitable advice over a three-year period about the structured investment products issued by Keydata, which was forced into insolvency in 2009. The FSA and the U.K.’s Serious Fraud Office, the agency that prosecutes complex crime and corruption, have been investigating the firm’s collapse. The building society “has been deeply concerned for those customers who bought these products and who lost out following Keydata’s administration in 2009,” Norwich and Peterborough Chairman Gordon Horsfield said in a statement. “We are very sorry for the hardship and anxiety that they have suffered.” Norwich and Peterborough cooperated with the FSA and settled early, the regulator said. ICICI May Curtail Loans to Indian Clients From U.K., Canada ICICI Bank Ltd. (ICICIBC) , India’s second-largest lender, said it may curb credit to Indian companies from its U.K. and Canadian units as regulators seek to curtail risks tied to funds it collected in those nations. A tightening of the rules may make it tougher for ICICI Bank to tap demand from Indian clients for overseas loans as domestic borrowing rates climb. Regulators globally are increasing oversight after European governments spent $5.3 trillion bailing out banks amid the worst financial crisis in 70 years and the U.S. set up a $700 billion fund to buy troubled assets from lenders. The Mumbai-based lender began discussions with regulators in Canada and the U.K. last year after it was told about the proposed restrictions, a person with direct knowledge of the matter said. ICICI Bank aims to take a decision about its international operations in three to six months, the person said, declining to be identified before a public announcement. For more, click here. Egypt Central Bank Says Lenders Should Carry Out Stress Tests The Egyptian Central Bank urged all lenders to carry out stress tests to assess the impact of the country’s worst political crisis in three decades on their credit portfolios. Banks can design “several assumptions and scenarios to measure the impact of variables and adverse events,” the regulator said in a statement on its website yesterday. Banks should also “urgently” review loan portfolios “and study the situation of each client separately, taking into consideration the impact of the crisis on them,” the central bank said. Foreclosure Talks Said to Yield Some Agreements With Banks Attorneys general negotiating a settlement of a 50-state investigation of foreclosure practices have reached agreements with lenders on some terms while failing so far to reach an accord on potential monetary payments by the banks, said a person familiar with the talks. The probe was triggered by claims of faulty foreclosure practices following the housing collapse which law enforcement officials said may violate state law. Significant progress has been made on a deal with lenders, which include Bank of America Corp. (BAC) and JPMorgan Chase & Co., with agreements in principle reached on several issues, said the person, who didn’t specify the areas of accord as they may change as talks proceed. It may take at least two months to reach a final agreement, said the person, who declined to be identified because the talks are private. An accord remains out of reach because states want principal reductions for borrowers, which is more than banks agreed to in deals reached with U.S. regulators last week, said Allison Schoenthal, a lawyer at Hogan Lovells in New York. Geoff Greenwood, a spokesman for Iowa Attorney General Tom Miller, who leads the negotiations for the states, declined to comment. Dan Frahm , a spokesman for Charlotte, North Carolina- based Bank of America, declined to comment. Thomas Kelly, a spokesman for New York-based JPMorgan, didn’t respond to an e- mail seeking comment. The 50 states, along with federal agencies including the Justice Department, seek to set requirements for how banks service loans and conduct home foreclosures. For more, click here. Courts Investment Funds Allege Banks Conspired to Manipulate Libor Three investment funds accused banks including Bank of America Corp., JPMorgan Chase & Co., HSBC Holdings Plc (HSBA) , Barclays Bank Plc and Credit Suisse Group AG (CSGN) of conspiring to manipulate the London interbank offered rate. The lawsuit was filed April 15 in New York federal court. The banks allegedly sold Libor-based futures, options, swaps and derivative instruments “at artificial prices that defendants caused,” thereby harming investors, FTC Capital GmbH of Vienna, FTC Futures Fund SICAV of Luxembourg and FTC Futures Fund PCC Ltd. of Gibraltar contend in the complaint. Last month a person close to an investigation on possible Libor manipulation said regulators in the U.S. and U.K. were cooperating in the probe. The U.S. Justice Department, Securities and Exchange Commission and Commodity Futures Trading Commission are working together with the U.K.’s Financial Services Authority on the probe, according to two people familiar with developments. “We believe the suit is without merit,” said Danielle Romero-Apsilos, a spokeswoman for Citigroup. Lawrence Grayson, a spokesman for Bank of America and Jennifer Zuccarelli , a JPMorgan spokeswoman, each declined to comment. Deutsche Bank spokesman Ronald Weichert said he couldn’t immediately comment. Eberhard Roll and Walter Hillebrand-Droste, spokesmen for defendant WestLB AG in Dusseldorf, weren’t immediately reachable for a comment. Officials at Lloyds Banking Group Plc (LLOY) and HSBC Holdings Plc weren’t immediately available to comment. A spokeswoman at Barclays Plc (BARC) and a spokeswoman for Credit Suisse, both in London, each declined to comment. The case is FTC Capital v. Credit Suisse, U.S. District Court, Southern District of New York (Manhattan). Citigroup, Morgan Stanley (MS) Cleared in Parmalat Market-Abuse Case Citigroup Inc. (C) , Deutsche Bank AG (DBK) , Morgan Stanley, Bank of America Corp. and bankers at the firms were acquitted by a Milan court in a market-abuse case relating to the 2003 collapse of Parmalat Finanziaria SpA, Italy’s biggest dairy company. Milan prosecutors claimed the banks knew Parmalat’s true financial situation when they sold bonds and carried out transactions on behalf of the food maker. The company, now called Parmalat SpA (PLT) , collapsed in Italy’s biggest bankruptcy and its founder Calisto Tanzi has been convicted for misleading investors. Parmalat’s failure left the maker of juices and long-life milk with 14 billion euros ($20 billion) in debt, about eight times the amount reported to investors. Citigroup, the third-biggest U.S. bank, said in a statement handed out to reporters in Milan that the ruling confirms the bank and its employees had no involvement. Warsaw Court Overturns 338 Million-Zloty Regulatory Fine on TPSA A Warsaw court overturned a 338 million-zloty ($120.45 million) fine on Telekomunikacja Polska SA (TPS) , the largest Polish phone company, for failing to get approval from regulators for rates for broadband services, the unit of France Telecom SA (FTE) known as TPSA said in an e-mailed statement yesterday. Piotr Dziubak, a spokesman for the regulator, didn’t answer a phone call seeking comment. Taylor Bean Jury Weighs Ex-Chairman’s Role in Fraud Case The case against Lee Farkas , the ex-chairman of Taylor, Bean & Whitaker Mortgage Corp. and accused mastermind in a “stunning” mortgage fraud, ended with prosecutors saying he stole millions of dollars out of greed and his lawyer saying Farkas is innocent while others made mistakes. Farkas and the government, which for the first time used the figure of $3 billion to describe the size of the fraud, made final arguments to the jury yesterday in federal court in Alexandria, Virginia. Later, jurors began weighing whether Farkas is guilty of 14 counts of conspiracy and bank, wire and securities fraud. Farkas, 58, is charged with orchestrating a fraud involving fake mortgage assets that duped some of the country’s largest financial institutions, targeted the federal bank bailout program and contributed to the failure of Montgomery, Alabama- based Colonial Bank. If convicted of the single conspiracy charge, Farkas faces as long as 30 years in prison. Taylor Bean, based in Ocala, Florida, was servicing more than 500,000 mortgages including $51 billion of Freddie Mac loans when it collapsed in August 2009, according to court records. The case is U.S. v. Farkas, 10-cr-00200, U.S. District Court, Eastern District of Virginia (Alexandria). Interviews/Speeches Czech Banker Says Preventing Crises by Regulation Is ‘Nonsense’ Attempts to prevent economic crises through regulatory and supervisory measures are bound to fail as market economies are “generating crises by definition,” Czech central bank Governor Miroslav Singer said. Czech policy makers have been critical of initiatives that may weaken national supervisory powers. The country hasn’t had to bail out any of its banks in the global financial crisis and the Prague-based Ceska Narodni Banka has “considerable worries” about proposed changes in banking supervision, Singer said in an interview in Washington on April 16. Czech banks weathered the financial crisis as their exposure to toxic assets accounted for less than 1 percent of all assets, banks had a liquidity surplus and deposits exceeded loans, according to central bank data. The largest Czech banks are owned by foreign institutions, including KBC Groep NV (KBC) , Societe Generale (GLE) SA and Erste Group Bank AG. (EBS) Global regulators are overhauling bank capital and liquidity requirements because existing rules, known as Basel II, failed to protect lenders from insolvency during the financial crisis. The new requirements, known as Basel III, are scheduled for full implementation by 2019. For more, click here and click here. Noyer Says French Lenders Could Withstand Euro-Area Default Bank of France Governor Christian Noyer said French banks could withstand a default by a euro-area nation, as Greek bond yields surged to a record amid concern the country will renege on its debt. French banks’ holdings of southern European sovereign debt represent 38 percent of their total tier-1 assets, and it’s 13 percent excluding Italian government bonds , Noyer said in a speech in New York yesterday. The remarks represent an effort to reassure investors that banks in Europe ’s main economies can cope with the debt crisis amid speculation Greece may restructure its debt after it was forced to take a 110 billion-euro ($156 billion) bailout last year. The Bloomberg Europe Banks and Financial Services Index fell for a third session yesterday after two German officials last week spoke of a possible Greek restructuring. For more, click here. Pappas Says Online Poker Probe Hurts Players, Keeps Money Frozen John Pappas, executive director for the Poker Players Alliance , talked about the fraud charges brought by the U.S. Justice Department against Internet gambling companies Pokerstars, Full Tilt Poker and Absolute Poker. Pappas spoke with Margaret Brennan on Bloomberg Television’s “InBusiness.” For the video, click here. Warren Says Consumer Bureau to Release Model Mortgage Forms Elizabeth Warren , the Obama administration adviser charged with setting up the U.S. Consumer Financial Protection Bureau, said the agency will soon release model mortgage forms that may become the basis of new regulations on home finance. “We’ve come up with a couple of prototypes,” Warren said yesterday during a meeting with community bankers in Louisville, Kentucky. “In a few weeks, we’ll be ready to share those prototypes.” Warren, 61, has made simplification of mortgage disclosure forms a centerpiece of her work at the new agency, which is scheduled to officially begin work in July. Warren has said that many of the forms now in use are duplicative. Warren has touted mortgage disclosure as a way community banks can make inroads against larger rivals like JPMorgan Chase & Co. (JPM) and Bank of America Corp. If disclosure is simpler and less costly, community banks can compete based on their close ties to customers, she said. “A community banking model works for American families,” Warren said during the session. Warren highlighted how the new agency has built outreach to community banks into its initial structure, with a “box” on its organizational chart for a liaison to community banks and other small firms. In an interview, Warren said that public release of the prototypes would come before advance notice of proposed rulemaking. After the release, she said in her remarks, the bureau will seek public comment, and has budgeted for five phases of testing of the forms with consumers. The inspector general of the Treasury Department, which currently houses the bureau, has said these notices, an early phase of creating new regulations, could come before the agency is scheduled to assume its full powers on July 21. To contact the reporters on this story: Carla Main in New Jersey at cmain2@bloomberg.net Ellen Rosen in New York at erosen14@bloomberg.net. To contact the editor responsible for this report: Michael Hytha at mhytha@bloomberg.net .

Laos to Delay Mekong Dam After Failing to Convince Neighbors

http://www.bloomberg.com/news/2011-04-19/laos-seeks-to-gain-neighbors-approval-for-3-8-billion-mekong-river-dam.html

Laos agreed to delay proceeding with a $3.8 billion hydropower dam because of concerns among neighboring Mekong River countries that the project would disrupt fish catches and rice production downstream. Laos, Cambodia , Vietnam and Thailand will consider the project at another meeting with environment ministers “as they could not come to a common conclusion,” according to a joint statement after representatives met in Vientiane to consider the project. The next meeting will take place “as soon as possible,” Te Navuth, a Cambodian official who chaired today’s meeting, told reporters by phone from the Lao capital. The Thai-financed Xayaburi hydropower plant is the first of about 10 dams the government plans to build on the mainstream Mekong, which runs from China’s Tibetan plateau through Myanmar, Thailand , Laos, Cambodia and Vietnam. Laos’s government can make a final decision on whether to proceed with the dam at any time. Failure to build the dam may hinder the efforts of Southeast Asia ’s smallest economy to use its resources to boost incomes for its 6 million citizens who comprise Asia ’s youngest population. Hydropower and mining projects are set to underpin gross domestic product growth that may reach 7.7 percent this year, the Asian Development Bank said in an April 7 report. Laos proposed today to end a review of Xayaburi called for under a 1995 agreement between the Mekong countries requiring prior consultations before building hydropower plants on the river. Vietnam recommended that all planned hydropower projects on the Mekong be delayed for 10 years. Vietnam Opposition “The deferment should be positively seen as a way to provide much-needed time for riparian governments to carry out comprehensive and more specific quantitative studies on all possible cumulative impacts,” Le Duc Trung, head of the Vietnamese delegation, said in a statement. Thailand questioned the dam’s sustainability, while Cambodia called for more studies on the project, according to the statement from the Mekong River Commission , an intergovernmental body that hosted the meeting. “We appreciate all comments, but we will consider to accommodate all concerns,” Viraphonh Viravong, head of the Lao delegation, said in the statement. The Mekong and its tributaries provide food, water and transportation to about 60 million people in those four countries. U.S. Senator Jim Webb said April 15 that approval of the dam could cause “irreversible” damage and threaten the stability of Southeast Asia. Thai Construction Thailand agreed in December to buy 95 percent of the electricity from the plant, which will have a capacity of 1,285 megawatts. Ch. Karnchang Pcl, Thailand’s third-biggest construction company by market value, owns a 57 percent stake in the 115 billion baht ($3.8 billion) project. Ch. Karnchang shares have fallen 6.3 percent this year, compared with a 5.5 percent gain in Thailand’s benchmark SET Index. The Laos Composite Index, which opened on Jan. 11 with two stocks, has gained 34 percent since then. PTT Pcl (PTT) , Thailand’s biggest energy company, has a 25 percent stake, while Bangkok-based Electricity Generating Pcl (EGCO) owns 12.5 percent, according to company filings. The project is expected to start commercial operations in January 2019, PTT told the Thai stock exchange on March 1. The Xayaburi plant will help “to secure and to stabilize” Thailand’s energy supply over the long term, Prasert Bunsumpun, president of state-owned PTT, said in the statement. Giant Catfish A technical review by the commission released last month found that the dam may lead to the extinction of species like the Mekong giant catfish and “gaps in knowledge” mean the full extent of the downstream impact on fisheries is hard to estimate. The dam “will not materially affect” the quantity and timing of river flows to Cambodia and Vietnam, it said. China has already built four hydropower dams on the Mekong, completing the first one in 1993 without consulting its downstream neighbors. It plans to build four more as part of efforts to almost double its hydropower capacity to at least 300 gigawatts by 2020. Laos also plans to sell electricity from dams to Vietnam as an alternative to nuclear power, Daovong Phonekeo , deputy director general of Laos’s Department of Electricity, said by phone yesterday. Vietnam, which faced rolling electricity outages in February, last year announced plans to build as many as 13 nuclear power plants with a capacity of 16,000 megawatts over the next two decades. “We are trying to benefit not only our country, but also develop a cheap source of electricity for our neighbors,” Daovong said. “Each riparian country has the right to use the Mekong River for its own development.” To contact the reporter on this story: Daniel Ten Kate in Bangkok at dtenkate@bloomberg.net To contact the editor responsible for this story: Peter Hirschberg at phirschberg@bloomberg.net

Giants, Jets to Play Christmas Eve Game in 2011 Schedule Released by NFL

http://www.bloomberg.com/news/2011-04-19/giants-jets-to-play-christmas-eve-game-in-2011-schedule-released-by-nfl.html

The past two Super Bowl champions will meet in the opening game of the National Football League’s 2011 regular season, which will feature a Christmas Eve clash between New York ’s Giants and Jets. The NFL yesterday released its full 2011 schedule , which is contingent on owners and players resolving a labor dispute that has led to a five-week lockout. “We’re doing all we can to prepare for the 2011 season,” NFL Commissioner Roger Goodell said in a televised interview on NFL Network. “The release of the schedule is an important point where fans start looking ahead to the season.” The season is set to begin Sept. 8 with a Thursday night game between the Green Bay Packers and New Orleans Saints at Lambeau Field in Green Bay, Wisconsin. The Packers won the Super Bowl last season and the Saints captured their first NFL title two years ago. The Washington Redskins host the Giants three days later, 10 years to the day after the Sept. 11 terrorist attacks on New York and Washington. The game will be played in Landover, Maryland, about 12 miles (19 kilometers) east of the U.S. Capitol in Washington and 15 miles from the Pentagon, which was struck by one of the hijacked planes. The Jets also begin their season that night, with a primetime game against the Dallas Cowboys that will be nationally televised by Comcast Corp.’s NBC network. The matchup pits Jets coach Rex Ryan against his twin brother, Rob, who is the defensive coordinator for the Cowboys. “They’ve had a back and forth already, so it’s going to be a fun night for everybody,” Cowboys coach Jason Garrett told NFL Network. Season in Limbo The 2011 season is in limbo because owners and players have failed to negotiate a new collective bargaining agreement. Players seeking to halt an owner-imposed lockout began mediation this week with the league before a federal magistrate judge in Minneapolis. The NFL said two days ago that it won’t play a game in London this season if the labor situation isn’t resolved by Aug. 1. The Tampa Bay Buccaneers and Chicago Bears are scheduled to play at London’s Wembley Stadium on Oct. 23, the seventh week of the 17-week regular season. The Giants and Jets are set to play Dec. 24, one week before the end of the regular season. The Giants also visit the Philadelphia Eagles in a Week 3 game on Sept. 25, host the Packers on Dec. 4 and play the division rival Cowboys twice in the final four weeks, including their season finale at New Meadowlands Stadium in East Rutherford, New Jersey. Primetime Games The Jets finish their regular season on Jan. 1 in Miami against the Dolphins. The Jets are one of six teams scheduled to play a league-high five primetime games this season, along with the Packers, Eagles, Indianapolis Colts, Baltimore Ravens and Pittsburgh Steelers. The American Football Conference champion Steelers kick off their season on the road Sept. 11 against the division rival Ravens. Baltimore then hosts the Jets the following week in a Sunday night game on Sept. 18. Also in Week 2, the Eagles visit the Atlanta Falcons , marking Michael Vick’s first game against his former team as a starting quarterback. Colts quarterback Peyton Manning returns home to New Orleans on Oct. 23 to face the Saints in a rematch of the Super Bowl two seasons ago. Thanksgiving History On the Nov. 24 Thanksgiving Day holiday, the Ravens host the San Francisco 49ers, making Johnand Jim Harbaugh the first brothers in NFL history to face each other as head coaches. “Thanksgiving, family, sharing a meal and a football game together, what could be better than that?” Ravens coach John Harbaugh said on NFL Network. “It’s going to be historic. We’re working on mom and dad, but they said they’re not going to be within three time zones of the game.” The Packers visit the Lions and the Cowboys host the Dolphins in the other Thanksgiving games. Green Bay also plays on Christmas night, hosting the rival Chicago Bears on Dec. 25 in a rematch of last season’s National Football Conference championship game. The Packers complete their schedule against Detroit on Jan. 1, becoming the first team in NFL history to play games on Thanksgiving, Christmas and New Year’s Day in the same season. To contact the reporter on this story: Erik Matuszewski in New York at matuszewski@bloomberg.net To contact the editor responsible for this story: Michael Sillup at msillup@bloomberg.net

U.S. Treasury Department Schedule for Tuesday, April 19

http://www.bloomberg.com/news/2011-04-19/u-s-treasury-department-schedule-for-tuesday-april-19.html

The following is a reformatted version of the U.S. Treasury Department’s daily release on the schedule for Secretary Timothy F. Geithner and other officials: On Tuesday morning, Deputy Secretary Wolin will deliver remarks on the implementation of Wall Street reform legislation at the Pew Charitable Trusts. In his remarks, Wolin will discuss the importance of moving forward quickly, carefully and responsibly to implement the critical protections in the Dodd- Frank Wall Street Reform and Consumer Protection Act. Following his remarks, Deputy Secretary Wolin will participate in a question and answer session with the audience. This event is open press. To contact the reporter on this story: Vincent Del Giudice in Washington vdelgiudice@bloomberg.net. To contact the editor responsible for this story: Christopher Wellisz at cwellisz@bloomberg.net

Skyscraper Boom Reaches End as City of London Goes 'From Vanity to Sanity'

http://www.bloomberg.com/news/2011-04-19/london-skyscraper-boom-ends-as-city-goes-from-vanity-to-sanity-.html

London property developers are sacrificing height and glitz for better returns as the craze for building iconic skyscrapers comes to an end, said Ken Shuttleworth, the architect of the landmark Gherkin building. “The age of bling is over,” said Shuttleworth, who led the team at Norman Foster ’s firm that designed the seven-year- old tower in the City of London financial district. He said it would never get off the ground today. “Money now drives everything, so if you can build something for half the price, you will,” he said. While skyscrapers with nicknames such as the Shard, the Cheesegrater and the Walkie Talkie are joining the 40-story Gherkin as part of the British capital’s skyline, those buildings reflect past rather than present considerations. All of the office towers that are due to open in London by 2014 were conceived before the financial crisis and developers are increasingly adopting cheaper, less ambitious plans. Commercial Estates Group Ltd., a privately held developer, last month said it will review a plan to build a 63-story property adjacent to Canary Wharf. Hammerson Plc (HMSO) , a real estate investment trust that owns seven London office buildings, in January abandoned its design for a 32-story tower and block in the City in favor of a 15-floor office complex. “A tall building was proving very expensive, so we went back to the drawing board,” Martin Jepson, Hammerson’s managing director for London, said by telephone. New York Revival Developers in New York are reviving projects to capture rising rents and office construction is set to rebound after the credit crisis curbed building. One World Trade Center, which will be the western hemisphere’s tallest tower when it opens in 2013, is one of several skyscrapers that may be built by the end of the decade, according to New York-based property broker Cassidy Turley. In London, high-rise buildings cost 50 pounds to 150 pounds more per square foot than shorter ones because of their stronger frames and typically more irregular shapes, said Steve Watts, the partner responsible for tall structures at real-estate adviser Davis Langdon, part of Aecom Technology Corp. (ACM) That means the money needed to construct a skyscraper with 500,000 square feet (46,000 square meters) of space can be 150 million pounds, twice as much as a lower-rise structure with the same space. Extra Rent What’s more, many tenants won’t pay the typical 15 percent to 20 percent extra rent for being in a tower, given the economy’s weakness, said Mark Swetman, project director for Hines Interests LP. Texas-based Hines is developing the 389,000 square foot, eight-story Cannon Place project in central London. Tall buildings are also less attractive to investors than shorter ones because tenants can’t start moving in until the construction work is over, said Mark Farmer, a partner at London-based property adviser EC Harris LLP. That’s not the case for a development divided into two or three low-rise buildings. “You can’t occupy floors below a building site, so it takes a very long time to get the first money through the door,” he said. The move away from office towers is a “flight from vanity to sanity,” Farmer said. “Bankers are all over the viability of high-rise like a rash and are indirectly shaping London’s skyline, not architects,” he said. Cheaper Techniques In the meantime, Stuart Lipton of Chelsfield Partners LLP is trying to find cheaper ways of putting up skyscrapers. Lipton, who built most of Broadgate in London between 1984 and 1991, plans to import techniques from the U.S. to make tall buildings more profitable. Last year, Lipton, 68, asked Watts at Aecom to design a prototype 40-story tower costing close to 125 pounds per square foot to erect, about half of the average cost. Watts said he cut the cost to between 135 and 150 pounds by “keeping everything as simple and repetitive as possible.” “This is a new opportunity rather than the death of high rise,” Lipton said by telephone. “The latest towers are wibbly-wobbly fancies of the sky, but with a more disciplined approach to architecture and standardized components, you can get elegant and efficient designs for much less money.” The Gherkin reflected a booming economy and the aspirations of Ken Livingstone, the London mayor from 2000 to 2008 who championed futuristic office buildings with colorful names. Miles of Steel More than 22 miles (35 kilometers) of steel was used to build the Gherkin, located at 30 St. Mary Axe. The 180-meter (591-foot) tower’s exterior is made up of 24,000 square meters of glass, enough to cover five soccer fields , according to its website. The only piece of curved glass is the dome at the top. Shuttleworth’s design for a new 700,000 square-foot building at the Broadgate complex, near Liverpool Street Station, has 13 stories and little more than a third of the outside walls will be glazed to cut energy costs. The property, approved by city planners yesterday, will be occupied by UBS AG (UBSN) , the Swiss bank that’s already Broadgate’s biggest tenant. Tenants are demanding “austere and efficient” buildings that are more likely to be “ground-scrapers” than high-rises, said Shuttleworth, 58. “The tall glass box is dead.” In December, Bloomberg LP announced a plan to have a property constructed on a site close to the Bank of England that will be the company’s European headquarters. The building will be designed with Foster + Partners, the firm Shuttleworth worked for when he did the Gherkin. Bloomberg is the parent of Bloomberg News. Space Shortage Demand for office space in the City of London evaporated in 2008, as Britain entered its worst recession since World War II and the government was forced to bail out Royal Bank of Scotland Group Plc. Vacancy levels have since fallen and a shortage of space is causing rents to outpace Canary Wharf, the city’s second, smaller financial district. By January of this year, the market had recovered enough to enable Land Securities Group Plc (LAND) to revive the Walkie Talkie near the Bank of England and British Land Co. to start work on the Leadenhall Building high-rise known as the Cheesegrater. The Shard, architect Renzo Piano ’s 1,016-foot pyramid next to London Bridge , will have more than twice as much glass as the Gherkin and will be Britain’s tallest tower when it’s completed next year. It’s being funded by Qatar-based companies. The developers aim to capitalize on a shortage of prime office space that, according Capita Symonds Ltd., caused rents in the City to increase by 16 percent in the past 12 months. Within two years, tenants may be charged about 65 pounds a square foot, up from 55 pounds now, the London-based property broker said in an April 1 report. Financial-services companies in the capital will add 11,000 employees in the next three years and will require the equivalent of four Shards to accommodate them, BNP Paribas SA’s real estate unit said in an April 15 report. “Towers aren’t built because people want to move into them, but because developers want to maximize their return on a piece of land,” EC Harris’s Farmer said. “There will always be that gravitational pull upwards.” To contact the reporter on this story: Tom Bill in London at tbill2@bloomberg.net. To contact the editor responsible for this story: Andrew Blackman at ablackman@bloomberg.net .

Euro May Decline to One-Month Low on Break of Support: Technical Analysis

http://www.bloomberg.com/news/2011-04-19/euro-may-decline-to-one-month-low-on-break-of-support-technical-analysis.html

The euro may decline to a one-month low against the dollar after dropping below two levels of so- called major support yesterday, Forecast Pte said, citing trading patterns. The single currency slid below $1.4275, which was on an ascending trend line connecting the lows of Jan. 10, March 11 and April 1, and it also dropped past $1.4267, which was the 20- day moving average, based on data compiled by Bloomberg. Daily momentum indicators such as the moving average convergence/divergence, or MACD, also suggest the euro will fall, said Pak Lai Ng, a technical analyst at Forecast in Singapore. “The euro is in a corrective downtrend,” Ng said. “The first downside target would likely be the $1.40 level,” he said, referring to the March 28 low of $1.4021 and the 50-day moving average of $1.4003. The euro traded at $1.4231 as of 9:33 a.m. in Tokyo after falling to $1.4158 yesterday, the lowest level since April 5. The last time the currency traded at $1.40 was on March 18. The common currency has weakened 2 percent since reaching a 15-month high of $1.4520 on April 12 and 13. The MACD for the euro was 0.0104 today, below the so-called signal line of 0.0125, Bloomberg data show. A reading below the signal line indicates the currency will weaken. MACD is a gauge of momentum and is calculated by subtracting the 26-day exponential moving average from the 12- day average. The signal line is a nine-day exponential moving average of the MACD, and provides buy and sell signals. Support is where buy orders may be clustered. In technical analysis , investors and analysts study charts of trading patterns to forecast changes in a security, commodity, currency or index. To contact the reporter on this story: Ron Harui in Singapore at rharui@bloomberg.net. To contact the editor responsible for this story: Rocky Swift at rswift5@bloomberg.net .

IBM Boosts Profit Forecast; Contract Signings Fall Short

http://www.bloomberg.com/news/2011-04-19/ibm-boosts-2011-profit-forecast-beating-analysts-estimates-shares-jump.html

International Business Machines Corp. (IBM) , the world’s largest computer-services provider, boosted its full-year profit forecast as companies buy more software and equipment. Operating earnings will be at least $13.15 a share this year, higher than a previous projection of at least $13 and the $13.08 average estimate of analysts surveyed by Bloomberg. First-quarter services signings fell 14 percent from a year earlier, Armonk, New York-based IBM said today, erasing a gain in the shares in extended trading. The contract signings were “a blemish,” although they aren’t a good indicator of future revenue, said Chris Whitmore, an analyst at Deutsche Bank AG in San Francisco who recommends buying the stock. For the first quarter, IBM reported “a solid revenue beat, driven by improvement in services and strength in hardware.” Sales last quarter climbed 7.7 percent to $24.6 billion, topping projections, as software, hardware and services revenue jumped. Equipment sales climbed for the fifth straight quarter as customers continued to upgrade after IBM released its Power7 server-computer system and a new mainframe last year. IBM slid $4 to $161.40 at 6:17 p.m. after rising to $170 in extended trading. Before the earnings’ release, the stock fell 54 cents to $165.40 in New York Stock Exchange composite trading. The shares have climbed 13 percent this year. ‘Volatile’ Signings Signings -- the value of new contracts signed during a specific quarter -- declined to $10.5 billion. It’s the fourth time in five quarters that a drop in new contract signings overshadowed an improved profit forecast. The signings figure is “volatile” and not as accurate a predictor of sales as the backlog, which includes contracts accumulated over time, Chief Financial Officer Mark Loughridge said on a conference call today. Backlog climbed 5.6 percent to $142 billion last quarter. First-quarter net income rose 10 percent to $2.86 billion, or $2.31 a share, from $2.6 billion, or $1.97, a year earlier. Profit on an operating basis was $2.41 a share, compared with analysts’ average estimate of $2.30. This is the first year IBM is reporting on an operating format, which excludes acquisition and some retirement costs. Hardware sales climbed 19 percent to $4.02 billion, the largest jump of any segment. Software revenue rose 5.8 percent to $5.31 billion. Sales from emerging markets, which IBM expects to make up almost 30 percent of revenue in 2015, advanced 18 percent. Gross profit margin expanded to 44.1 percent last quarter, from 43.6 percent a year earlier. The company had about $220 million in workforce restructuring costs, Loughridge said. ‘Limited’ Japan Effect IBM, which gets about 11 percent of its sales from Japan, saw a limited effect from last month’s earthquake, Loughridge said on the call. The company’s infrastructure in the country, which is in “very good shape,” had about $20 million in damages. The company doesn’t expect “appreciable impact” on its supply chain, he said. Operating earnings will be at least $20 a share in 2015, IBM said last month, reiterating a forecast from a year ago. The company is investing in cloud-computing and analytics- software businesses, which the company predicts will generate $7 billion and $16 billion in revenue, respectively, by 2015. Those initiatives, along with investments in emerging markets and Smarter Planet -- IBM’s plan to digitize physical infrastructure

DRDGold of South Africa Posts Quarterly Operating Profit of $21.1 Million

http://www.bloomberg.com/news/2011-04-19/drdgold-of-south-africa-posts-quarterly-operating-profit-of-21-1-million.html

DRDGold Ltd. (DRD) said it posted a quarterly operating profit of 145.1 million rand. To contact the editor responsible for this story: Antony Sguazzin at asguazzin@bloomberg.net

Flyers, Penguins Win to Lead NHL Playoff Series 2-1; Red Wings Go Up 3-0

http://www.bloomberg.com/news/2011-04-19/flyers-penguins-win-to-lead-nhl-playoff-series-2-1-red-wings-go-up-3-0.html

The Detroit Red Wings pushed the Phoenix Coyotes to the verge of postseason elimination with a 4- 2 victory in one of three National Hockey League playoff games decided by the same score. The Philadelphia Flyers defeated the Buffalo Sabres 4-2 on the road for their second straight win, while the Boston Bruins beat the Montreal Canadiens 4-2. The Pittsburgh Penguins topped the Tampa Bay Lightning 3-2 in yesterday’s other playoff game. Ruslan Salei and Drew Miller each scored goals for Detroit less than three minutes into last night’s game at Jobing.com Arena in Glendale, Arizona. Valtteri Filppula and Johan Franzen added goals for the Red Wings as the third seed in the Western Conference went up 3-0 in the best-of-seven playoff series. Detroit can complete a sweep with a road win in Game 4 tomorrow. The Vancouver Canucks are the only other team that could sweep its first-round series and visit the defending Stanley Cup-champion Chicago Blackhawks tonight with a 3-0 lead. The Los Angeles Kings host the San Jose Sharks in today’s other Western Conference playoff game. Jeff Carter, Danny Briere , Nikolay Zherdev and Kimmo Timonen scored goals yesterday for the Flyers, who never trailed at HSBC Arena in Buffalo. Philadelphia, the second seed in the Eastern Conference, took a 2-1 series lead. The Flyers have totaled nine goals in the past two games after being shut out in the opener. The Sabres host Game 4 tomorrow. David Krejci, Nathan Horton and Rich Peverley scored as the third-seeded Bruins opened a 3-0 lead and held off the Canadiens at Bell Centre in Montreal. Chris Kelly added an empty-net goal with 26 seconds left for Boston, which lost the first two games of the series at home and now trails 2-1. Tyler Kennedy’s third-period goal snapped a 2-2 tie for the fourth-seeded Penguins at the St. Pete Times Forum in Tampa, Florida. Pittsburgh rebounded from a 5-1 home loss in Game 2 to take a 2-1 lead in the series. To contact the reporter on this story: Erik Matuszewski in New York at matuszewski@bloomberg.net To contact the editor responsible for this story: Michael Sillup at msillup@bloomberg.net

India’s Basu Says April Inflation Rate May Be Lower Than March

http://www.bloomberg.com/news/2011-04-19/india-s-basu-says-april-inflation-rate-may-be-lower-than-march.html

Kaushik Basu , chief economic adviser of India ’s finance ministry, comments on inflation. He was speaking at the sidelines of an event in New Delhi today. “Inflation has come down from where it was last year and I am expecting that April inflation will be a percentage point lower than where it was in March. I would expect it to be less than 8 percent. That’s not good enough, but you have to keep in mind that global crude prices are very high. ‘‘It is worrying and we will have to see what further actions we may have to take. I can’t speculate on whether the measures will be monetary or fiscal. Some of these measures have to be quite different from those we are used to because this is a new kind of inflation, given the commodity price situation and easy money policy being followed in the world.” To contact the reporter on this story: Tushar Dhara in New Delhi at tdhara1@bloomberg.net To contact the editor responsible for this story: Stephanie Phang at sphang@bloomberg.net .

Hewlett-Packard Hires Homlish of SAP as Chief Marketing Officer

http://www.bloomberg.com/news/2011-04-19/hewlett-packard-hires-homlish-of-sap-as-chief-marketing-officer.html

Hewlett-Packard Co. (HPQ) hired Martin Homlish as chief marketing officer, the latest attempt by Leo Apotheker , chief executive officer since November, to reshape management of the world’s largest computer maker. Homlish was formerly marketing chief at SAP AG (SAP) , the top maker of business-management software, and will report to Apotheker, said Bill Wohl , a spokesman for Hewlett-Packard. The move follows the exit in January of former marketing head Michael Mendenhall and comes a day after Hewlett-Packard said Jan Zadak will run business-computing sales, replacing the departing Tom Hogan. Apotheker, who succeeded Mark Hurd as CEO, is appointing new deputies as he aims to broaden software operations and revive sales in the personal-computer business. Marketing at SAP will be led on an interim basis by Jonathan Becher, an executive vice president, Walldorf, Germany- based SAP said in a statement via e-mail. The company has begun a search for Homlish’s successor. Hewlett-Packard issued a profit forecast in February that missed analysts’ predictions, underscoring the challenge facing Apotheker as he aims to transform Hewlett-Packard into a provider of more computing and programs via the Internet and lessen its dependence on PC sales to consumers. Homlish, who joined SAP in 2000, overlapped with Apotheker, who worked at 22 years at SAP and was CEO from 2009 until his ouster last February. Shelly Lazarus, chairman of Ogilvy & Mather Worldwide, said in an interview in December that Homlish is close to Apotheker and has worked directly for him. SAP hired Homlish, an American who works in New York , from Sony Corp., where he spent 15 years and helped introduce the company’s PlayStation video-game console in 1995. Apotheker helped appoint five new directors in January and unveiled plans in March to push Hewlett-Packard more deeply into software. Hewlett-Packard, based in Palo Alto, California , gained 24 cents to $39.99 at 4 p.m. in New York Stock Exchange composite trading. It has slipped 5 percent this year. To contact the reporter on this story: Aaron Ricadela in San Francisco at aricadela@bloomberg.net ; Diane Brady at at Dbrady11@bloomberg.net. To contact the editor responsible for this story: Tom Giles at tgiles5@bloomberg.net

British Olympic Association, London 2012 Organizers End Dispute, Sky Says

http://www.bloomberg.com/news/2011-04-19/british-olympic-association-london-2012-organizers-end-dispute-sky-says.html

The British Olympic Association and the London 2012 Organizing Committee reached an agreement to end their financial dispute, Sky News said on its website. To contact the editor responsible for this story: Peter Woodifield at pwoodifield@bloomberg.net

VMware Profit Tops Analysts’ Estimates on New Product Sales

http://www.bloomberg.com/news/2011-04-19/vmware-profit-tops-estimates-on-server-multitasking-software-shares-jump.html

VMware Inc. (VMW) , the biggest maker of programs that let computers run multiple operating systems, reported first-quarter profit that topped analysts’ estimates as it benefited from a foray into storage and desktop software. Profit excluding certain costs was 48 cents a share, exceeding the 42-cent average of projections compiled by Bloomberg. Sales rose 33 percent to $843.7 million, the Palo Alto , California-based company said today in a statement. Analysts on average estimated $814.5 million. The company’s shares surged as much as 12 percent in extended trading. Clients are using VMware software to turn more of their servers -- computers used to run websites and networks -- into multitasking machines that can operate several different applications, said Brian Freed, an analyst at Wunderlich Securities Inc. The company has been adding staff and spending more on research and development as it ramps up new businesses including security and storage. “They released 18 new products last year, and here we are almost six months later,” Robert Breza, an analyst at RBC Capital Markets in Minneapolis , said in an interview. “You’re starting to see the new products penetrate the customer base.” VMware, majority-owned by EMC Corp., climbed as high as $96 in late trading after the earnings report. The shares fell 53 cents to $85.97 at 4 p.m. in New York Stock Exchange composite trading. The stock has declined 3.3 percent this year. Sales Forecasts Sales in the second quarter will be $860 million to $880 million, the company said. That’s greater than the $846.6 million average estimate of analysts. VMware expects full-year 2011 revenue to be $3.55 billion to $3.65 billion. First-quarter net income rose 60 percent to $125.8 million, or 29 cents a share, from $78.4 million, or 19 cents, a year earlier. VMware has added almost 400 employees since the beginning of the year and will keep hiring at a “brisk pace” throughout 2011, Chief Financial Officer Mark Peek said on a conference call. The company will continue to invest to take advantage of “a lot of very strong long-term growth opportunities,” he said. To contact the reporter on this story: Danielle Kucera in New York at dkucera6@bloomberg.net To contact the editor responsible for this story: Tom Giles at tgiles5@bloomberg.net

UAW Said to Seek Early Labor Agreements With GM, Ford, Chrysler

http://www.bloomberg.com/news/2011-04-19/uaw-said-to-seek-early-labor-agreements-with-gm-ford-chrysler.html

The United Auto Workers will seek early contract settlements in talks with the U.S. automakers this year, breaking a pattern of brinksmanship that stretches at least four decades, two people familiar with the plan said. UAW Vice President Joe Ashton, who leads bargaining with General Motors Co. (GM) , has said the union wants a deal before the current four-year agreements with GM, Ford Motor Co. (F) and Chrysler Group LLC expire on Sept. 14, said the people, who asked not to be identified revealing internal discussions. The union may seek a deal with GM first, one of the people said. UAW President Bob King favors an early agreement at GM to avoid an attempt by Ford to gain concessions that workers at GM and Chrysler granted before the companies went bankrupt in 2009, the person said. Ford, which avoided bankruptcy and earned $6.56 billion last year, is the only U.S. automaker whose workers refused to accept limits on strikes over wages and benefits. “Bob will go to GM first because he couldn’t take a rich Ford agreement to GM and Chrysler,” Sean McAlinden , chief economist with the Center for Automotive Research in Ann Arbor , Michigan, said in an interview yesterday. “It would be almost impossible to sell a Ford agreement to GM and Chrysler.” Michele Martin, a UAW spokeswoman, didn’t respond to a request for comment. The UAW traditionally targets a lead automaker to set a pattern for wages and benefits that the union then seeks to impose on the other two companies, McAlinden said. Typically, bargaining goes up to or beyond the contract deadline before a deal is reached, he said. In 2007, GM and Chrysler had short strikes before an agreement was reached. Ford hasn’t had a national strike since 1977. Bargaining History A review of UAW settlements with the U.S. automakers back to the early 1970s showed the union hasn’t reached an agreement early in that time frame, said William LeFevre, an archivist on labor history at the Walter P. Reuther Library at Wayne State University in Detroit. “If Chrysler or GM were the target, then the pattern agreement would be cheaper for Ford,” said McAlinden, a former autoworker. “GM wants to do it and they are claiming they are the middle-of-the-road company.” Jodi Tinson, a Chrysler spokeswoman, and Kim Carpenter , a spokeswoman for Detroit-based GM, declined to comment yesterday. “The decision about which company will lead the negotiations with the UAW is up to the UAW leadership,” Marcey Evans , a Ford spokeswoman, said in an interview. “We look forward to our discussions later this year to ensure Ford becomes competitive with the best in the world.” Surrendering Raises King, 64, elected president of the union in June, has said workers must be rewarded for the $7,000 to $30,000 in concessions they each gave since 2005 to help the automakers survive. The workers surrendered raises, bonuses and cost-of- living adjustments and agreed to a two-tier wage system, in which new hires earn about $14 an hour, half of the amount paid to senior production workers. The concessions helped the U.S. automakers lower labor costs to about $58 an hour for wages and benefits from about $75 an hour and get close to the $52 an hour Toyota Motor Corp. (7203) gives its U.S. workers, McAlinden said. Labor rates at U.S. automakers remain above the $44 to $48 hourly rate Hyundai Motor Co. (005380) pays its U.S. workers in wages and benefits, McAlinden said. “We did what we had to do to save the companies,” King told delegates to the union’s bargaining convention in Detroit last month. “It will take time to win back what we’ve given up.” Ford’s 40,600 hourly workers in November 2009 rejected additional concessions, including a six-year ban on some strikes and a wage freeze for new hires until 2015. Unionized workers at GM and Chrysler accepted those terms before the automakers filed for bankruptcy protection in 2009. No-Strike Clause “Ford wants parity on the no-strike clause and on freezing wages for entry-level workers,” McAlinden said. “But by going to GM first, the UAW could say, ‘Ford, just take this pattern, and we don’t want to discuss those other details.’” All three companies are trying to avoid an expensive contract that would boost labor costs, McAlinden said. The union will seek new work and jobs at factories in Tennessee, Louisiana and Wisconsin , the person said. The UAW is willing to expand the use of the $14 hourly wage if the automakers commit to more jobs in the U.S., Ashton has said. “We will look at anything that will retain jobs,” Ashton said March 29 at a GM factory in Orion Township, Michigan , in response to a question about whether the union would consider additional use of the two-tier wage system. “The most important thing going into this set of negotiations is jobs.” Automakers’ Earnings GM, which sold stock to the public in November, earned $6.17 billion last year. Auburn Hills , Michigan-based Chrysler posted a net loss of $652 million last year and forecast net income of as much as $500 million this year. Ford last month rewarded Chief Executive Officer Alan Mulally with $56.6 million in stock for leading the Dearborn, Michigan-based automaker’s turnaround. In addition, Mulally’s 2010 compensation rose 48 percent to $26.5 million. King has called Mulally’s stock award “morally wrong” and “outrageous.” Mulally’s pay may be an issue at the bargaining table, McAlinden said. “Everybody in every Ford plant that I know, knows every last dime he got,” McAlinden said. “It didn’t help.” To contact the reporters on this story: Keith Naughton in Detroit at knaughton3@bloomberg.net ; John Lippert in Chicago at jlippert@bloomberg.net. To contact the editor responsible for this story: Kevin Orland at korland@bloomberg.net .

Payrolls Rise in 38 States, Led by Texas; Unemployment Rate Declines in 34

http://www.bloomberg.com/news/2011-04-19/payrolls-rise-in-38-states-led-by-texas-unemployment-rate-declines-in-34.html

Payrolls rose in 38 U.S. states in March, indicating improvement in the labor market is broadening. Texas , with a 37,200 increase, and Missouri, at 24,300, showed the biggest gains in employment from February, figures from the Labor Department showed today in Washington. The jobless rate fell in 34 states, with the largest decline in New Mexico , where it fell by 0.6 percentage point to 8.1 percent. The report is consistent with government figures released April 1 that showed the nation added 216,000 workers in March, the most since May 2010, and unemployment dropped to a two-year low of 8.8 percent. Improvement in hiring across a wider swath is helping sustain consumer spending , the biggest part of the economy. “We’re seeing a broadening out in the jobs recovery,” said Jonathan Basile , an economist at Credit Suisse in New York. “It gives us more confidence that the labor market is shifting gears.” Florida, North Carolina and Oklahoma rounded out the top five states with the largest increases in employment last month. California, Connecticut, Louisiana and Maryland were among the states with the biggest payroll decreases. North Dakota had the lowest unemployment in the nation, falling to 3.6 percent from 3.7 percent the prior month. Unemployment rose in seven states, including Louisiana and Connecticut. Nevada remained the state with the highest jobless rate at 13.2 percent. Broad Improvement “Most districts reported that labor market conditions were generally stronger than in their last reports,” the Federal Reserve said in its Beige Book report released April 13. Central bank policy makers will likely keep interest rates near zero and maintain plans to buy $600 billion in Treasury securities by June to boost the pace of growth. An improving jobs outlook is drawing people back into the workforce, causing unemployment to rise in some states. New Jersey’s jobless rate rose to 9.3 percent in March, the second straight monthly gain, as more people resumed a search for work, state figures showed. Employers added 4,600 jobs in New Jersey, the second- wealthiest U.S. state by per-capita income. Cutbacks at state and local governments will restrain the recovery. States face projected deficits totaling $112 billion in the next fiscal year because revenue hasn’t bounced back from the recession while spending on unemployment and Medicaid has swelled. State and local employment data are derived independently from the national statistics, which are typically released on the first Friday of every month. The state figures are subject to larger sampling errors because they come from smaller surveys, making the national figures more reliable, according to the government’s Bureau of Labor Statistics. To contact the reporters on this story: Shobhana Chandra in Washington schandra1@bloomberg.net To contact the editor responsible for this story: Christopher Wellisz at cwellisz@bloomberg.net

Saudis to Pump Almost 9 Million Barrels, Sfakianakis Says

http://www.bloomberg.com/news/2011-04-19/saudis-to-pump-almost-9-million-barrels-sfakianakis-says-1-.html

Saudi Arabia, the world’s biggest crude exporter, is expected to boost output to almost 9 million barrels a day in May from 8.3 million to 8.5 million this month as it expects demand to rise, a local economist said. The country cut production in March and early April because of reduced demand from Japan and refineries abroad halted for maintenance, John Sfakianakis, chief economist at Riyadh-based Banque Saudi Fransi, said today by telephone. Saudi Arabia pumped 9.02 million barrels of crude a day in February, up 5.9 percent from the previous month, according to official data posted April 17 on the Joint Organization Data Initiative website. Oil Minister Ali al-Naimi said earlier this week the kingdom produced 8,292,100 barrels a day in March and it will probably go a “little higher in April.” “Demand will pick up again in May and output will go back close to February’s levels as refineries consume more crude and the new blends Saudi made to make up for Libyan sweet crude receive more attention from the market,” Sfakianakis said. Saudi Arabia has said it will make up for any crude production lost as a result of the Libyan conflict, which erupted in mid-February. The Kingdom sold 2 million barrels of a new blend of crude it developed to help replace Libyan supplies withheld from the market, “and there is plenty left,” al-Naimi said this week. Time to Adjust “Indeed there have been some takers of the new Saudi blends but it wasn’t enough,” Sfakianakis said. “It’s clear that an appropriate replacement for Libyan sweet crude has not yet been created. It will take time for refiners in Europe to adjust to the new blends offered by Saudi Arabia.” OPEC Secretary General Abdalla el-Badri told reporters yesterday in Kuwait that he is surprised that nobody is buying the new Saudi special blend. “The market doesn’t want to exchange the Libyan crude,” el-Badri said. Libyan crude production slumped this year, pushing up prices for comparable low-density grades that are sweet, or low in sulfur, including Nigeria ’s Qua Iboe. Saudi Arabia developed two blends to offset the shortfall. European refiners including Petroplus Holdings AG prefer to process light, sweet crude as it yields more premium products such as gasoline and jet fuel that meet European Union environmental regulations. Libya ’s benchmark grade, Es Sider, has a sulfur content of 0.44 percent compared with 1.8 percent for Arab Light, according to data from Energy Intelligence Group. To contact the reporter on this story: Wael Mahdi in Khobar at wmahdi@bloomberg.net To contact the editor responsible for this story: Stephen Voss at sev@bloomberg.net

Moser Baer Seeks $200 Million for Power Generation, Times Says

http://www.bloomberg.com/news/2011-04-19/moser-baer-seeks-200-million-for-power-generation-times-says.html

Moser Baer Projects is in talks with the private equity units of Standard Chartered Plc (STAN) and Kohlberg Kravis Roberts & Co. to raise $200 million for thermal power plants , the Times of India reported, citing unidentified bankers. To contact the editor responsible for this story: John Chacko at jchacko@bloomberg.net

Canada March Composite Leading Indicators (Text)

http://www.bloomberg.com/news/2011-04-19/canada-march-composite-leading-indicators-text-.html

Following is the text of Canada 's leading indicators report from Statistics Canada. The composite leading index rose 0.8% in March, after a 1.1% gain in February. Among the 10 components, 8 advanced in March, 1 less than in February. The stock market and the housing index posted the largest gains, with increases of 2.2% and 2.0% respectively. Furniture and appliance sales increased 0.6%, while sales of other durable goods rose 0.3%. The ratio of manufacturing shipments to inventories rose for the second straight month, as shipments turned up while stocks fell. The average workweek at factories rose for the third month in a row. New orders for durable goods fell 0.6%, after a rebound in February. To contact the reporter on this story: Ilan Kolet in Ottawa at ikolet@bloomberg.net To contact the editor responsible for this story: Marco Babic at mbabic@bloomberg.net

Stanbic IBTC of Nigeria Climbs to 10-Week High After Dividend Announcement

http://www.bloomberg.com/news/2011-04-19/stanbic-ibtc-bank-of-nigeria-rises-to-10-week-high-on-dividend.html

Stanbic IBTC Bank Plc (IBTCCB) , a Nigerian lender, rose to a 10-week high after saying it would pay a dividend of 39 kobo a share. The stock climbed 44 kobo, or 4.6 percent, to 10 naira by the 2:30 p.m. close in Lagos, taking its gain this year to 8.7 percent, compared with a 3 percent increase in the Nigerian Stock Exchange All-Share Index over the same period. The dividend will be paid on June 9, the company said in a statement on the Lagos-based Nigerian Stock Exchange’s website today. To contact the reporter on this story: Vincent Nwanma in Lagos at vnwanma@bloomberg.net To contact the editor responsible for this story: Antony Sguazzin at asguazzin@bloomberg.net .

Brazil Pushes Forward Registration Date for Two Power Auctions

http://www.bloomberg.com/news/2011-04-19/brazil-pushes-forward-registration-date-for-two-power-auctions.html

Brazil has postponed the registration deadline for two energy auctions scheduled for July by 15 days in order to give developers more time to complete the necessary paperwork. Companies will have until midday May 4, the Ministry of Mines and Energy said on its website. The previous deadline was today, according to the statement. One auction will be for power contracts for natural gas, wind, biomass and hydroelectric projects, according to a Feb. 2 statement in the country’s official gazette. The other will be for wind and biomass projects. To contact the editor responsible for this story: Reed Landberg at landberg@bloomberg.net .

European New-Car Registrations Fall in March, ACEA Says

http://www.bloomberg.com/news/2011-04-19/european-new-car-registrations-fall-in-march-acea-says.html

European new-car registrations fell 4.7 percent in March to 1.6 million vehicles, the ACEA industry group said in an e-mailed statement today. To contact the reporter on this story: Mariajose Vera in Munich at mvera1@bloomberg.net. To contact the editor responsible for this story: Angela Cullen at acullen8@bloomberg.net .

BRAZIL DAYBOOK: Copom Meeting, Unemployment, Tax Collection

http://www.bloomberg.com/news/2011-04-19/brazil-daybook-copom-meeting-unemployment-tax-collection.html

The central bank’s monetary policy committee begins its two-day meeting to decide on Brazil ’s benchmark interest rate. The so-called Selic rate will rise 50 basis-points, or 0.5 percentage point, to 12.25 percent, according to the median estimate in a Bloomberg survey of 47 economists. WHAT TO WATCH: *Vale’s shareholders may elect a new board in a meeting in Rio de Janeiro at 11 am. *Agriculture Minister Wagner Rossi speaks to reporters about his visit to China at 10 a.m. *The head of Brazil’s tax agency Carlos Alberto Barreto comments on the government tax collection for the month of March at 11 a.m. *Labor Minister Carlos Lupi talks to reporters in Brasilia about job creation figures for the month of March at 2 p.m. *The Treasury auctions local government bonds LTN and NTN-F; results at 2:30 p.m. *Brazil’s new vehicle sales rose to 159,033 units in the first half of April, up 0.8 percent from the same period last year, the country’s dealership federation, known as Fenabrave, said yesterday. ECONOMY: *Fipe weekly consumer price index at 5 a.m. *FGV second preview of broad inflation index IGP-M at 8 a.m. *Unemployment rate at 9 a.m. *Tax collection at 10:30 a.m. *Caged - job creation at 2 p.m. EQUITIES: *Usiminas (USIM5 BZ) said it is unaware of Gerdau, CSN interest in buying shares *Banco Pine (PINE4 BZ) canceled overseas 5-year bond offering *CPFL (CPFE3 BZ) advanced on possible bid for ERSA *OGX (OGXP3 BZ) plunged as oil-resource report missed estimates *Duratex (DURA3 BZ) gained on plans to invest in new plants *Gerdau (GGBR4 BZ) fell as S&P changed U.S. Outlook MARKETS *The Bovespa index fell 1.9 percent to 65,415.49. *The real rose 0.9 percent to 1.5900 per dollar. To contact the reporter on this story: Helder Marinho in Sao Paulo at hmarinho@bloomberg.net To contact the editor responsible for this story: Francisco Marcelino at mdeoliveira@bloomberg.net

Telesat Bids Fall Short of $6 Billion Asked, N.Y. Post Reports

http://www.bloomberg.com/news/2011-04-19/telesat-bids-fall-short-of-6-billion-asked-n-y-post-reports.html

Activist Shareholder Mark Rachesky hasn’t yet been able to find a buyer willing to pay $6 billion for Telesat, the satellite unit of Loral Space Communications, the New York Post reported, citing three unidentified people close to the situation. Telesat, the world’s number 4 satellite operator told bidders that if they don’t raise their offers it will cancel the sale and grant shareholders a dividend that may be as much as about $1 billion, the newspaper added. To contact the editor responsible for this story: James Kraus at jkraus2@bloomberg.net

Repsol to Halt Gasoline Unit at Bilbao Refinery for Maintenance

http://www.bloomberg.com/news/2011-04-19/repsol-to-halt-gasoline-unit-at-bilbao-refinery-for-maintenance.html

Repsol YPF SA (REP) , Spain ’s biggest oil company, will halt a platformer at its Petronor refinery in Bilbao for maintenance. The refinery “is proceeding with the shutdown of the platforming unit P2,” Petronor said today in a statement on its website. “The process may produce intermittent flaring.” The unit will be restarted within a month, according to the statement. Platformers make high-octane blending components for gasoline. The refinery has the capacity to process 220,000 barrels of crude a day, according to data compiled by Bloomberg. Flaring is a safety measure to prevent excessive pressure from building in processing units that are being shut or started. To contact the reporters on this story: Lananh Nguyen in London at lnguyen35@bloomberg.net ; To contact the reporters on this story: Nidaa Bakhsh in London at nbakhsh@bloomberg.net

U.S. Natural Gas Shipments Rise on Outlook for Warmer Weather

http://www.bloomberg.com/news/2011-04-19/u-s-natural-gas-shipments-rise-on-outlook-for-warmer-weather.html

Scheduled natural gas shipments to U.S. power plants rose to the highest level in almost 10 weeks on forecasts for warmer weather that may boost air conditioning demand. Shipments to the Southeast increased for a second day. A sample of scheduled deliveries to power generators in the U.S. and Canada rose 4.2 percent to 14.4 million dekatherms (14.1 billion cubic feet), according to data compiled by Bloomberg as of 11:30 a.m. in New York. That level was the highest since Feb. 10. Power plants in the Southeast were to receive 2.87 million dekatherms of gas, 5.7 percent more than yesterday, Bloomberg data show. Scheduled shipments for U.S. residences declined 4.7 percent to 26.8 million dekatherms. Forecasters including Commodity Weather Group LLC in Bethesda, Maryland , predicted that temperatures in the South would be as much as 14 degrees above normal through April 28. Wholesale gas delivered at the Sonat-T1 hub, where gas is transported to the Southeast from Texas and Louisiana, rose 7.43 cents, or 1.8 percent, to $4.2406 per million British thermal units yesterday on the Intercontinental Exchange. Gas at the Henry Hub in Erath, Louisiana, the delivery point for futures traded on the New York Mercantile Exchange , advanced 2.25 cents, or 0.5 percent, to $4.233 per million Btu. To contact the reporter on this story: Christine Buurma in New York at cbuurma1@bloomberg.net ; To contact the editor responsible for this story: Dan Stets at dstets@bloomberg.net .

Palm Oil Output to Rise 6.6 Percent This Year, Oil World Says

http://www.bloomberg.com/news/2011-04-19/palm-oil-output-to-rise-6-6-percent-this-year-oil-world-says.html

Palm oil production will increase in 2011, boosting tight supplies, researcher Oil World said in a report today. World production of palm oil may rise 6.6 percent to 48.6 million metric tons, following an “unusually small” increase of 1.1 percent in 2010, the researcher said. Palm oil prices have declined 14 percent so far this year. China will buy 550,000 tons of palm oil in April after the price declined and purchases will rise 7.7 percent in the marketing year that ends on Sept. 30, according to the report. To contact the reporter on this story: Tony C. Dreibus in London at tdreibus@bloomberg.net. To contact the editor responsible for this story: Claudia Carpenter at ccarpenter@bloomberg.net .

Philippine Stocks: Ayala Land, Belle, Leisure, Robinsons Land

http://www.bloomberg.com/news/2011-04-19/philippine-stocks-ayala-land-belle-leisure-robinsons-land.html

Shares of the following companies had unusual moves in Philippine trading. Stock symbols are in parentheses and prices are as of the noon close in Manila. The Philippine Stock Exchange Index fell 0.6 percent to 4,245.21, snapping a four-day, 1.7 percent rally. Developers: Ayala Land Inc. (ALI) , the largest developer, sank 3.1 percent to 16.44 pesos, the sharpest loss since Feb. 22, after central bank Governor Amando Tetangco said “upside risks to inflation remain” and authorities “will implement further monetary action as and when necessary.” Robinsons Land Corp. (RLC) , the nation’s second-largest builder of shopping malls, decreased 1 percent to 13.40 pesos. Belle Corp. (BEL) , which is building an entertainment complex in Manila, fell for a fourth day, losing 3.9 percent to 5.38 pesos, the lowest level since March 21. Vice Chairman Willy Ocier said the company delayed the opening of its casino because it decided to increase the gaming center’s floor area by 35 percent and to build more facilities. The company aims to open the casino in the second quarter of 2012, from the fourth quarter this year previously, Ocier said. Leisure & Resorts World Corp. (LR) , which will operate the casino, decreased 4 percent to 10.58 pesos, the lowest since April 5. To contact the reporter on this story: Ian C. Sayson in Manila at isayson@bloomberg.net To contact the editor responsible for this story: Darren Boey at dboey@bloomberg.net

RBA to ‘Look Through’ Higher Inflation Rate, Slower Growth, Minutes Show

http://www.bloomberg.com/news/2011-04-19/rba-to-look-through-higher-inflation-rate-slower-growth-minutes-show.html

The Reserve Bank of Australia viewed its policy setting as appropriate, saying it will “look through” higher inflation and slower growth stemming from natural disasters, minutes of its April 5 meeting showed. “Headline inflation was likely to be quite high in the March quarter, while GDP would be held down, to a greater extent than earlier assumed,” the bank said in the minutes released in Sydney today. In setting interest rates , “the board would look through these fluctuations,” it said. Central bank Governor Glenn Stevens has held the benchmark borrowing cost for four meetings at 4.75 percent after raising the overnight cash rate target seven times from October 2009 to November last year. Tropical Cyclone Yasi tore through sugar-and banana-producing areas in February, following two months of floods in Queensland state that shut mines and wiped out crops. “The warning on CPI suggests the RBA will want to see more data that’s not so distorted by weather, which may take some time to come through, before moving on rates,” said Su-Lin Ong, senior economist at RBC Capital Markets in Sydney. “They seem fairly comfortable with rates in mildly restrictive territory at the moment.” The Australian Bureau of Statistics will release its first- quarter inflation report in Sydney on April 27. Difficult to Interpret “The extreme weather events across Queensland and elsewhere were complicating the interpretation of the economic data for the March quarter,” policy makers said in the minutes. Gross domestic product advanced 0.7 percent in the three months through December from the third quarter, when it rose a revised 0.1 percent. Australia’s trade balance unexpectedly swung to a deficit in February for the first time in almost a year as the natural disasters cut mining shipments and higher fuel prices boosted imports, a government report showed this month. The Australian dollar extended declines, trading at $1.0469 as of 12:30 p.m. in Sydney from $1.0493 before the minutes were released and $1.0509 yesterday in New York. The nation is undergoing a boom in resource investment as mining and energy companies boost output to meet demand from China and India. That has spurred hiring and helped bolster demand for Australia’s dollar, the world’s fifth-most traded currency, which touched a record $1.0584 on April 8. Resource-Rich States Australian employers added more workers than economists forecast in March, led by hiring in the mineral- and energy-rich states of Western Australia and Queensland. The number of people employed rose by 37,800, rebounding from a decline of 8,600 in February, a government report showed April 7. The jobless rate fell to 4.9 percent, matching a two- year low set in December. “Forward-looking indicators pointed to a continuation of employment growth over the months ahead,” policy makers said. “Liaison with firms suggested that wage growth was increasing in mining-related industries and some skilled occupations, though pressures in the labor market had not become widespread.” The central bank in February raised its forecast for 2011 economic growth to 4.25 percent, from a November prediction of 3.75 percent, saying flood rebuilding will accelerate in the second half. Policy makers expect annual growth will be boosted by projects such as BG Group Plc’s $15 billion liquefied natural gas venture in Queensland, which is expected to generate 5,000 construction jobs. Energy Investment BG, Chevron Corp. (CVX) , Royal Dutch Shell Plc and ConocoPhillips are among energy companies investing about A$200 billion ($209 billion) in proposed LNG projects in Australia. The outlook for global growth has been clouded by unrest in Libya that spurred oil prices and the radiation crisis in Japan , Australia’s second-largest trading partner. “In the very short term, it was likely there would be some disruption to exports of goods and services to Japan, though, beyond this, the rebuilding effort and a possible increase in use of non-nuclear forms of energy could provide a boost to Australian exports,” policy makers said. Interest rates on “housing and business loans were a little above average levels,” policy makers said. “Given the outlook for the economy, and in particular the high level of the terms of trade and the prospective further large increase in investment, members considered that this stance remained appropriate so as to ensure that the medium-term inflation outlook remained consistent with the target.” The bank aims to keep inflation between 2 percent and 3 percent and the Australian currency’s strength has helped slow parts of the economy. Traders see a less than 50 percent chance Stevens will increase the benchmark rate by a quarter percentage point this year, bank bill futures show. “Outside the resources sector, growth in investment was expected to be relatively modest,” policy makers said. “In contrast, with office vacancy rates in the two largest cities projected to fall to quite low levels, a pick-up in commercial property construction was expected over the next couple of years from the current low levels.” To contact the reporter on this story: Michael Heath in Sydney at mheath1@bloomberg.net To contact the editor responsible for this story: Stephanie Phang at sphang@bloomberg.net

Panasonic to Move U.S. Headquarters to Newark for $102 Million

http://www.bloomberg.com/news/2011-04-19/panasonic-moving-u-s-headquarters-to-newark-for-102-million.html

Panasonic Corp. (PC) , the world’s largest maker of plasma televisions, plans to move its North American headquarters to Newark , New Jersey, using a tax incentive to stay in the Garden State, a company spokesman said. The move from nearby Secaucus, scheduled to be announced at a press conference in Newark today, was supported by a $102 million tax credit from the New Jersey Economic Development Authority , an incentive that faces a court challenge by Panasonic’s current landlord, Hartz Mountain Industries Inc. “We’re looking forward to being able to commit to a future in Newark,” Jim Reilly, a spokesman for Panasonic, said in a telephone interview from Secaucus. He declined to discuss financial details or the timing of the move. Granting tax credits to relocate a company within New Jersey violates the intent of the Economic Development Authority, a not-for-profit organization that is supposed to use incentives to create jobs in the state, said Allen Magrini, senior vice president for Hartz Mountain. “It’s ludicrous,” Magrini said in a telephone interview from Secaucus. “It’s terrible public policy to finance intrastate moves.” New Jersey faces a budget gap of as much as $10.5 billion in the fiscal year starting July 1, more than one-third of the current $29.4 billion spending plan, the state Office of Legislative Services projected in July. Hartz Mountain filed an appeal of the Economic Development Authority’s decision with the state superior court’s appellate division in Trenton on March 30, Magrini said. ‘Favorable Determination’ The appeal “is baseless and we look forward to a favorable determination by the court,” Reilly said. “The company was looking at a number of options for relocations over many months, in New Jersey and elsewhere.” Laura Jones, a spokeswoman for the Economic Development Authority, didn’t respond to a telephone message and e-mail seeking comment. Panasonic, which moved to Secaucus in 1973 from what is now the MetLife building at 200 Park Ave. in Manhattan , has 800 employees and about 200 contract workers at its headquarters campus, Reilly said. To contact the reporter on this story: John Gittelsohn in New York at johngitt@bloomberg.net To contact the editor responsible for this story: Kara Wetzel at kwetzel@bloomberg.net

Gasoline Falls on Concern Higher Pump Prices Will Lower Demand

http://www.bloomberg.com/news/2011-04-19/gasoline-falls-on-concern-higher-pump-prices-will-lower-demand.html

Gasoline fell to the lowest level in a week as prices at the pump reached a 31-month high, increasing concern that rising fuel costs will slow the U.S. economic recovery and reduce demand for motor fuel. Futures slipped a second consecutive day as regular retail gasoline rose 0.2 cent to $3.835 a gallon yesterday, AAA said on its website. Federal Reserve Bank of Atlanta President Dennis Lockhart said yesterday that he expects a “soft” first quarter in the U.S. because of the impact of rising gasoline prices on consumer spending. “The market is showing sensitivity to the economic outlook again,” said Gene McGillian , an analyst and broker at Tradition Energy in Stamford, Connecticut. “We have gas prices above $4 in some areas. Elevated price levels will reduce fuel demand.” Gasoline for May delivery dropped 1.97 cents, or 0.6 percent, to settle at $3.2331 a gallon on the New York Mercantile Exchange. Futures touched a low of $3.1979 before paring losses as equities rebounded and the dollar retreated. The Standard & Poor’s 500 Index rose 0.4 percent as of 3:06 p.m. in New York as companies from Johnson & Johnson to Burberry Group Plc. reported earnings that beat expectations. The euro gained 0.7 percent against the U.S. currency on speculation the European Central Bank will raise rates, increasing the investment appeal of dollar-denominated commodities. “The stock market is positive now, the dollar is on the lows, there’s little volume and the market was probably oversold on yesterday’s” Standard & Poor’s Ratings Services reducing its outlook on the U.S.’s long-term sovereign credit rating, said Ray Carbone, president of Paramount Options Inc. in New York. Negative Outlook Prices fell yesterday after Standard & Poor’s Ratings Services revised its outlook on the U.S.’s long-term sovereign credit rating to negative from stable, and Saudi Arabia ’s Oil Minister Ali al-Naimi said that the “market is oversupplied.” U.S. gasoline supplies probably shrank 1.5 million barrels last week, according to the median estimate of 13 analysts in a survey by Bloomberg News. The Energy Department is scheduled to report on oil inventories for the week ended April 15 at 10:30 a.m. tomorrow in Washington. Gasoline stockpiles sank 7 million barrels in the week ended April 8, according to department data, as refiners cut rates, imports slipped 17 percent and demand jumped to a five- week high. Refinery Rates Refinery utilization probably increased 0.9 percentage point last week to 82.3 percent, according to the survey. “Prices are extremely overextended, and this week’s report is likely to show an increase in utilization,” said Peter Beutel , president of trading advisory company Cameron Hanover Inc. in New Canaan , Connecticut. Beutel, who participated in the survey, estimates refinery rates increased 0.8 percentage point. Heating oil for May delivery declined 2.43 cents, or 0.8 percent, to settle at $3.1585 a gallon on the exchange. Inventories of distillates, including heating oil and diesel, rose 300,000 barrels, according to the survey. Stockpiles in the week ended April 8 dropped 2.68 million barrels to 150.8 million, the lowest level in almost a year, according to department data. To contact the reporter on this story: Barbara J Powell in Dallas at bpowell4@bloomberg.net. To contact the editor responsible for this story: Dan Stets at dstets@bloomberg.net

Syria's Cabinet Endorses Draft Decree to Lift 48-Year-Old Emergency Law

http://www.bloomberg.com/news/2011-04-19/syria-s-cabinet-endorses-draft-decree-to-lift-48-year-old-emergency-law.html

Syria ’s Cabinet endorsed a draft decree to lift a 48-year-old emergency law, the main demand of protesters challenging President Bashar al-Assad’s rule. Assad will issue the decree ending emergency rule today, Al Watan newspaper reported. The Council of Ministers also approved draft bills to dissolve the Supreme State Security Court and regulate the right to protest, Information Minister Adnan Mahmoud said yesterday in a televised speech. The measures need the approval of the president or parliament to become law, former lawmaker George Jabbour said in a telephone interview. “This will reinforce security and will protect the dignity of the citizens,” Mahmoud said. The draft law on the right to protest “is similar to those in place in most countries of the world, particularly in European countries and the United States .” Syria is the latest Middle Eastern country to be hit by the wave of uprisings that ousted long-time rulers in Egypt and Tunisia , and sparked an armed conflict in Libya. Assad’s regime is an ally of Iran and a power broker in neighboring Lebanon, where it supports Hezbollah, an armed Shiite Muslim group. Assad will issue a decree today approving the lifting of the emergency law, Al Watan , which is close to the regime, reported, citing an unidentified senior official. The law won’t be replaced by a special anti-terrorism law and the existing general punishment law will apply to terrorism crimes, the privately run newspaper said. Assad will also issue a decree dissolving the Supreme State Security Court and another on the organization of peaceful rallies, Al Watan said. Not Enough “The number of deaths and injuries suffered by protesters at the hands of the security forces in the past month has angered and galvanized the opposition to demand much more than the modest reforms they initially wanted, some even calling for regime change,” Chris Phillips, an analyst at the Economist Intelligence Unit in London , said yesterday. “Now, the formal ending of emergency law is unlikely to satisfy protesters unless it is accompanied by a marked change in the behavior of the security services.” Demonstrations broke out in mid-March, prompting a government crackdown that led to scores of deaths across the country. Assad ordered his ministers to prepare the legal framework for scrapping the state of emergency in a speech on April 16, without referring to the protesters’ other demands, including the release of political prisoners. Protesters Killed At least 17 protesters died on April 17 during anti- government rallies in the central city of Homs, home to one of the country’s two oil refineries, and Latakia, Ammar Qurabi, head of Syria’s National Organization for Human Rights , said by phone from Cairo. He said security forces broke up a sit-in Homs yesterday, causing at least one death. Agence France-Presse put the death toll yesterday in Homs at four. Syrian authorities yesterday arrested Mahmoud Issa, a prominent opposition figure and former prisoner, after he gave an interview to Al Jazeera , activist Mazen Darwish said in a phone interview today. The Interior Ministry accused “criminal gangs” of killing a general and three of his relatives, as well as a colonel and a soldier, in two separate attacks in Homs, according to the state-run Syrian Arab News Agency. At least 130 people have been killed in the unrest, according to Human Rights Watch. The New York-based organization says Syrian forces have tortured protesters and that it is impossible to verify how many remain in detention. Activists say the number killed exceeds 200. ‘More to Do’ U.K. Foreign Secretary William Hague told Sky News television yesterday that while the Syrian Cabinet’s approval of the draft decree on lifting the emergency law “is a step forward,” Assad “still has much more to do to meet the legitimate aspirations of the people of his country.” Assad’s Baath party regime, which has been in power since 1963, has blamed the violence on terrorists. The Interior Ministry yesterday announced a ban on street protests. The ministry “said it will not be lenient with such terrorist acts and it will work strictly to enhance security and stability all over Syria and pursue terrorists everywhere to bring them to justice,” according to SANA. The ruling Baath party’s assistant secretary-general, Mohammad Saeed Bkhaitan, told officials from the organization there will be no tolerance for “terrorists” and that “events have proved that tolerance and forgiveness don’t pay off with the enemies of the nation and those lurking against the security and stability Syria enjoys,” SANA reported. ‘All Talk’ Banning protests is unconstitutional, former Judge Haitham al-Maleh, 80, a human-rights activist who was recently released from prison as part of an amnesty, told Al Arabiya television. “No decrees or laws have so far been enacted, so this is all talk for now,” he said. The Cabinet yesterday studied a series of draft decrees to introduce further changes, including a new media law to enforce freedoms, Mahmoud said. The Cabinet also looked into draft laws for political parties and local administrations, SANA said. “These strategic draft decrees come within the framework of political reform that will help build democracy and increase the participation of citizens,” SANA said. The government examined a draft law that would employ 10,000 degree-holders in public institutions every year, it said. Government concessions don’t seem to satisfy protesters, who always “want a bit more,” Theodore Karasik , director of research at the Dubai-based Institute for Near East and Gulf Military Analysis, said yesterday by telephone. The turmoil has posed the most serious challenge to Assad, who inherited power from his father 11 years ago. He has accused foreign-led conspirators of taking advantage of the unrest to undermine Syria, mostly due to its support for anti-Israel groups. Assad issued a decree on April 14 approving a new government under former Agriculture Minister Adel Safar, after the protests intensified. To contact the reporters on this story: Massoud A. Derhally in Beirut at mderhally@bloomberg.net ; Inal Ersan in Dubai at iersan@bloomberg.net ; Nayla Razzouk in Amman at nrazzouk2@bloomberg.net To contact the editor responsible for this story: Andrew J. Barden at barden@bloomberg.net

Brazil Unemployment Rises to 6.5% in March, Lowest for Month

http://www.bloomberg.com/news/2011-04-19/brazil-unemployment-rises-to-6-5-in-march-lowest-for-month-3-.html

Brazil ’s unemployment rate rose less than economists expected in March, reaching the lowest on record for the month, reinforcing signals that the economy remains heated. Unemployment in March rose to 6.5 percent from 6.4 percent in February, below the median 6.7 percent forecast of 36 analysts surveyed by Bloomberg, the national statistics office said today in Rio de Janeiro. Latin America’s largest economy is currently “almost at full employment” and faces labor shortages in many industries, Finance Minister Guido Mantega said yesterday in New York. Policy makers will rely on interest rate increases, spending cuts and measures to rein in credit to slow inflation toward the bank’s target by the end of 2012, economic policy director Carlos Hamilton said March 30. “The figures aren’t showing the economic slowdown we would like to see now,” Andre Perfeito , chief economist at Gradual Investimentos, said in a telephone interview from Sao Paulo. “The macro-prudential measures the central bank is relying on is a beautiful name to avoid interest rate increases, but the effect must be the same otherwise inflation will remain high and expectations will get out of control.” Job Creation The Brazilian economy generated 92,675 government- registered jobs in March, the fewest since a seasonal loss of jobs in December, the Labor Ministry said today in a report distributed in Brasilia. “The labor market is still heated, we had fewer jobs because of the Carnival holiday,” Labor Minister Carlos Lupi told reporters in Brasilia. “Interest rate increases may have an effect, but nothing that will change our course, I’m confident we’ll create 3 million jobs this year.” Brazil created 583,886 government-registered jobs in the first quarter, the ministry said. Government-registered job creation is a balance of posts created minus job eliminated. Registered jobs, so-called formal work, assure employees a range of benefits such as unemployment insurance , bonuses and retirement payments by the government. Brazil’s benchmark consumer price inflation index rose 6.3 percent in the year through March on higher food prices and transportation costs. Brazil targets an annual 4.5 percent inflation rate of plus or minus two percentage points. Inflation may breach the upper-limit of the target between July and August this year, Hamilton said. Benchmark Rate The central bank will raise the benchmark interest rate by 50 basis points by a third consecutive time tomorrow in a bid to cool domestic demand and slow inflation running at the fastest pace in more than two years, according to the median estimate in a Bloomberg survey of 56 economists. Policy makers led by central bank President Alexandre Tombini raised the so-called Selic rate by 100 basis points this year to 11.75 percent. Traders are wagering the central bank will increase borrowing costs by at least 25 basis points to slow inflation that is threatening to breach the upper limit of policy makers’ target, Bloomberg estimates based on interest rate futures show. Yields on the interest-rate futures contract maturing in May 2011, the second-most traded today, rose one basis point, or 0.01 percentage point, to 11.87 percent, at 2:39 p.m. New York time. The real rose 0.9 percent to 1.5751 per dollar. To contact the reporter on this story: Iuri Dantas in Brasilia at idantas@bloomberg.net To contact the editor responsible for this story: Joshua Goodman at jgoodman19@bloomberg.net

Miro Show at Tate Has Fanciful Blobs, Squiggles, Turds: Review

http://www.bloomberg.com/news/2011-04-19/miro-tate-show-has-fanciful-blobs-squiggles-earthy-turds-martin-gayford.html

There’s a certain amount of crap in the new exhibition, “Joan Miro: The Ladder of Escape,” at Tate Modern in London. That doesn’t prevent it from being a fine show, which not only contains many of the artist’s most celebrated works, but transforms your ideas about him. Indeed, the crap is part of the point. It appears unforgettably in the title of the 1935 painting “Man and Woman in Front of a Pile of Excrement.” As the critic Robert Hughes pointed out in his book “Barcelona,” that’s an extremely Catalan subject. Miro (1893-1983) was a most Catalan artist -- industrious and anarchic, mystical and earthy. In Catalonia, Hughes wrote, an unusual figure is on sale for the Christmas crib. “A red Catalan cap, or barretina, flopping over his head, the fellow squats, breeches down, with a brown cone of excrement connecting his buttocks to the earth.” An infant in just this posture is to be seen in the center of Miro’s early masterpiece, “The Farm” (1921-2), an encyclopedic catalog of the Catalan countryside: the animals, plants, ancient buildings and fertile soil (being fertilized further by the small individual in the middle). This powerful painting would have been a perfectly distinguished climax to an artistic career. For Miro, it was only the beginning of half a century of dizzying exploration. Moving to Paris, he allied himself with the Surrealists. Radical Lines His images of the countryside became the theme of increasingly radical, almost abstract pictures. The Catalan peasant was reduced to a few fine lines, plus that characteristic cap, on a canvas of carefully painted nothingness suggesting an empty sky or the nebulous backdrop to a dream. Then, in the mid-1930s, as the politic crisis in Spain turned to civil war, Miro’s art became harsher and more grotesque (as in that couple with the pile of excrement). In 1937, he created an extraordinary apocalyptic still life, “Still Life With Old Shoe.” It’s one of the greatest of Spanish paintings, in which the horrors of contemporary conflict are evoked by a few humble objects: a broken bottle, as Miro said himself, “like a burning house,” an apple speared by a “cruel fork.” Miro fled the German invasion of France in 1940, moving first to the coast of Normandy, eventually back to his native land, then ruled by Franco. During this flight, he produced a series of marvelous paintings on paper, the “Constellations” (1940-41). These consisted of his personal symbols -- colorful squiggles and blobs denoting “bird,” “star,” “woman” -- strewn across an airy background. Scorched Canvases Miro might simply have gone on repeating this idiom -- and he did frequently. The exhibition focuses on a series of adventurous works he produced in the 1960s and 1970s. There are violent-looking burned pictures from 1973 in which he allowed fire to mutilate the canvases. They’re startling. Even more impressive are series of huge three-piece works in a sort of zen-abstract manner, including one triptych in which a single fine line wanders across the monochrome white surface of each enormous picture. This sounds boring yet is actually a compelling demonstration that even less can be more. The three “Fireworks” I-III (1974) were created by throwing paint at the canvases, which sounds silly though looks exhilarating. It isn’t clear whether Miro was leading or following younger artists such as Cy Twombly. Still, you leave the show wondering whether he might have been his most audacious at the age of 80. “Joan Miro: The Ladder of Escape” is at Tate Modern, London, through Sept. 11, supported by the Institut Ramon Llull, sponsored by British Land Co., Finsbury Ltd. and Goldman Sachs Group Inc. (GS) The exhibition will travel to the Fundacio Joan Miro, Barcelona, in October 2011, and to the National Gallery of Art, Washington D.C., in May 2012. Information: http://www.tate.org.uk/modern. (Martin Gayford is chief art critic for Muse, the arts and leisure section of Bloomberg News. The opinions expressed are his own.) To contact the writer on the story: Martin Gayford in London at martin.gayford@googlemail.com or http://twitter.com/# !/martingayford To contact the editor responsible for this story: Mark Beech at mbeech@bloomberg.net .

China Stocks: Gezhouba, Xinjiang Goldwind, Yunnan Copper, ZTE

http://www.bloomberg.com/news/2011-04-19/icbc-vanke-baoshan-steel-china-shenhua-china-equity-preview.html

Shares of the following companies had unusual moves in China trading. Stock symbols are in parentheses as of 3 p.m. close. The Shanghai Composite Index, which tracks the bigger of China’s stock exchanges, rose 8 points, or 0.3 percent, to 3,007.04. The CSI 300 Index (SHSZ300) was little changed at 3,295.76. China Gezhouba Group Co. (600068 CH), the builder of hydropower projects, jumped 10 percent to 13.12 yuan, the most since Jan. 31. Gezhouba said its parent company plans to restructure with units of China State Grid Corp., China Southern Power Grid Co. and China Power Engineering Consulting Group Corp., and form a new company. "The announcement prompted speculation that the listed Gezhouba may get an injection of some new assets," Cao Zhu, an analyst at First Capital Securities Co., said by telephone from Shenzhen. CSC Nanjing Tanker Corp. (600087) (600087 CH) lost 3.4 percent to 6.01 yuan, the biggest decline since March 4. The stock was cut to “neutral” at Shenyin & Wanguo Securities Co., which cited overcapacity in the oil shipping industry and the company’s “relatively high” price-to-book-value ratio. The previous rating was “outperform,” according to data compiled by Bloomberg. Hong Yuan Securities Co. (000562 CH) slid 3.1 percent to 17.76 yuan, the most since March 17. The brokerage said first- quarter net income fell 19 percent from a year earlier to 339 million yuan ($51.9 million). Xinjiang Goldwind Science & Technology Co. (002202 CH), the country’s second-biggest maker of wind turbines , tumbled 6.7 percent to 17.88 yuan, the steepest decline since Nov. 12. First-quarter net income fell 17 percent from a year earlier to 206.2 million yuan. Yunnan Copper Industry Co. (000878) (000878 CH), China’s fourth- biggest producer of the metal, rose 1.3 percent to 25.42 yuan after saying first-quarter net income gained 6 percent from a year earlier to 174.3 million yuan. ZTE Corp. (000063) (000063 CH), China’s second-biggest phone- equipment maker, climbed 2.7 percent to 29.15 yuan. ZTE said first-quarter profit gained 16 percent from a year earlier to 127.3 million yuan as sales of handsets increased in the U.S. and Europe. --Zhang Shidong. Editor: Allen Wan To contact Bloomberg News staff for this story: Zhang Shidong in Shanghai at +86-21-6104-3040 or szhang5@bloomberg.net To contact the editor responsible for this story: Darren Boey at dboey@bloomberg.net

Australian, N.Z. Stocks: BHP, Newcrest, Woodside, Gindalbie

http://www.bloomberg.com/news/2011-04-19/australian-n-z-stocks-bhp-newcrest-woodside-gindalbie.html

Australia ’s S&P/ASX 200 Index fell 1.4 percent to 4,793.30 as of the close of trading in Sydney. New Zealand ’s NZX 50 Index (NZSE50FG) dropped 0.7 percent to 3,439.98 in Wellington. The following were among the most active shares in the market today. Stock symbols are in parentheses after company names. Australia: Mining companies: A measure of primary metals traded in London fell 1.9 percent to its lowest level in more than a month. BHP Billiton Ltd. (BHP) , the world’s No. 1 mining company, dropped 1.7 percent to A$46.67, the biggest decline since March 15. BHP may also expand its iron ore operations in Western Australia’s Pilbara region to 480 million metric tons a year at a cost of A$48 billion ($50 billion), the Australian newspaper said, citing state and federal applications. Rio Tinto Group (RIO AU), the world’s second-largest mining company by sales, lost 2.3 percent to A$82.10 in Sydney, the biggest drop since March 10. Cellestis Ltd. (CST) , an Australian biotechnology company, dropped 1.2 percent to A$3.42. The Cellestis Shareholders Action Group says it has secured a 34.2 percent stake in the company and may block a proposed takeover by Qiagen NV, the Australian Financial Review reported. The takeover of Cellestis is a “terrible outcome” for a company “starting to gain sales traction,” the newspaper quoted Gavin Ross, a spokesman for the group, as saying. Gindalbie Metals Ltd. (GBG) lost 3.4 percent to A$1.01, the lowest level in almost a month. The iron-ore exploration company had its rating cut to “hold” from “buy” by Royal Bank of Scotland Group Plc. because of uncertainty about operating costs and project timing. Newcrest Mining Ltd. (NCM) fell 0.8 percent to A$40.80, its second day of declines. Australia’s largest gold mining company cut its production forecast a second time after third- quarter output fell 16 percent on heavy rainfall in Australia and a mine shutdown in Ivory Coast. Woodside Petroleum Ltd. (WPL) fell 1.5 percent to A$46.05, the lowest level since March 24. Australia’s second- biggest oil and gas producer reported production in the March quarter of 15.6 million barrels of oil equivalent, down 19 percent from a year earlier, according to a regulatory filing. Rival Santos Ltd. (STO) lost 2.2 percent to A$15.26, its second daily drop. New Zealand: New Zealand Refining Co. (NZR NZ) fell 2.2 percent to NZ$4.50. David Jackson, Chairman of the company, said the environment for the refining business “remains volatile,” according to an annual general meeting speech released today. To contact the reporters on this story: Angus Whitley in Sydney at awhitley1@bloomberg.net ; Anna Kitanaka in Tokyo at akitanaka@bloomberg.net. To contact the editors responsible for this story: Nick Gentle at ngentle2@bloomberg.net

Stocks in South Africa Rebound From Biggest Drop in a Month on Metals Gain

http://www.bloomberg.com/news/2011-04-19/stocks-in-south-africa-rebound-from-biggest-drop-in-a-month-on-metals-gain.html

South African stocks rebounded from the biggest drop in a month as copper rose, boosting mining companies including BHP Billiton Plc (BIL) , and as SABMiller Plc (SAB) reported sales that beat estimates. The FTSE/JSE Africa All Share Index snapped two days of losses, adding 1.4 percent to 31,837.06 at the 5 p.m. close of trading in Johannesburg. The gauge declined 2.6 percent yesterday after Standard & Poor’s cut the U.S.’s long-term credit outlook to negative and commodity prices fell. “What you’re seeing is the paring of yesterday’s losses following the aggressive selloff,” sSobantu Modise, an equities trader at Metropolitan Asset Management in Cape Town , said in a phone interview. “The commodity story is still real.” Copper snapped six days of losses, rising as much as 1.8 percent to $9,393 a metric ton in London , after Freeport-McMoRan Copper & Gold Inc. said it suspended operations at a mine in Indonesia. Builders in the U.S. broke ground on 549,000 homes at an annual pace in March, beating the 520,000 median estimate of economists surveyed by Bloomberg News. BHP Billiton , the world’s largest mining company, gained for the first time in three days, rising 1.1 percent to 276.25 rand. Anglo American Plc (AAL) , a diversified mining company that makes up 11 percent of the measure, advanced 2.9 percent to 342.70 rand, paring yesterday’s 4.6 percent decline. SABMiller, the world’s second-biggest brewer by volume, advanced after reporting fourth-quarter beer sales rose 3 percent. To contact the reporter on this story: Sikonathi Mantshantsha in Johannesburg at smantshantsh@bloomberg.net To contact the editor responsible for this story: Gavin Serkin at gserkin@bloomberg.net

Spurlock Shills for Pomegranate Juice, Shoes in New Film

http://www.bloomberg.com/news/2011-04-19/spurlock-shills-for-pomegranate-juice-shoes-in-greatest-movie-ever-sold-.html

Filmmaker Morgan Spurlock walked into the interview room wearing a navy sports jacket plastered with 21 corporate logos. “This is my Nascar prom jacket,” he joked, referring to stock-car racers whose uniforms are covered with sponsor names. Spurlock was promoting his new film, “ POM Wonderful Presents: The Greatest Movie Ever Sold ,” whose $1.5 million budget was funded entirely by companies whose products are prominently displayed in the documentary. POM Wonderful, which makes pomegranate juice packaged in distinctive bulb-shaped bottles, is paying $1 million to be the title sponsor. Another sponsor, the Sheetz convenience-store chain, is based in Altoona, Pennsylvania , which is changing its name to the movie’s title for 60 days in exchange for a $25,000 donation from Spurlock’s production company. The documentary explores the burgeoning world of product placements, whereby companies pay to have their brands used in movies and TV shows. With more and more viewers fast-forwarding past commercials on TV and ignoring them when they’re squeezed between trailers at the movie theater, companies are resorting to more direct advertising. “I didn’t sell out, I bought in,” Spurlock explained. “I wanted to look at the way Hollywood makes movies these days. If you really wanted to reach a wide audience, you need that cross-promotion. You need the hat. You need the T-shirt. You need the collector cup.” Horse Shampoo Like Spurlock’s other films, including “Super Size Me” and “Where in the World Is Osama Bin Laden ?,” “The Greatest Movie” examines a serious subject with liberal doses of humor. I spoke to the 40-year-old director in a conference room at a New York publicity firm. Warner: So what do your sponsors think of the film? Spurlock: They all love it. They realize it’s a great way to promote their products. Mane ‘n Tail (which makes a shampoo that works on horses and humans) even invited me to the Kentucky Derby next month. Warner: Why did you make this film? Spurlock: I wanted to pull back the curtain and show how the process works. I take you inside these pitch meetings and negotiations, which most people have never seen. Warner: Product placements have been around for a long time, but they’re more noticeable these days. How come? Spurlock: It’s expensive to make movies and TV shows, so producers are looking for new sources of money. Also, no place is really safe from commercials anymore. They’re even talking about selling advertising space in the Grand Canyon. No Guns, Cigarettes Warner: Did any of your sponsors try to influence the content of your movie? Spurlock: They had creative input on how we promoted their products, but they didn’t have any say over the final cut. Warner: Did you turn down any companies that wanted to be in the film? Spurlock: No. In fact, we tried to get some offensive sponsors like cigarette companies and gun manufacturers but they said no. We even asked BP if they were interested. Who needs good publicity more than BP right now? Warner: You visited Sao Paulo , Brazil , which has banned all outdoor advertising. That must have been a strange sight. Spurlock: It was weird. As you’re driving into town, you see all these billboards. Then suddenly, as you hit the city limits, there’s nothing -- no advertising at all. It’s like you’ve landed on another planet. Nader’s Shoes Warner: You interviewed Ralph Nader, who’s a harsh critic of commercialization. As a gag, you then gave him a pair of Merrell shoes, which is one of your sponsors. Do you know if he’s wearing them? Spurlock: We gave him a pair of slip-ons, but he wanted one with laces. So we sent him another pair. “The Greatest Movie Ever Sold,” from Sony Pictures Classics , opens April 22 in New York, Philadelphia, Boston , Washington , Chicago , Phoenix, San Diego , San Francisco , Los Angeles and Austin, Texas. (Rick Warner is the movie critic for Muse, the arts and leisure section of Bloomberg News. Opinions expressed are his own. This interview was adapted from a longer conversation.) To contact the writer on the story: Rick Warner in New York at rwarner1@bloomberg.net. To contact the editor responsible for this story: Manuela Hoelterhoff at mhoelterhoff@bloomberg.net .

India’s BSE and NSE Equity Derivative Market Activity

http://www.bloomberg.com/news/2011-04-19/india-s-bse-and-nse-equity-derivative-market-activity.html

Following are the highlights for the equity derivative market activity at the National Stock Exchange and the Bombay Stock Exchange. ---------------------------------------------------------------------------- Futures & Options Units 8-Apr-11 7-Apr-11 % Change ---------------------------------------------------------------------------- F&O Traded Contracts INDRTOCO Qty 3336377.0 2576233.0 29.51 Turnover INDRTOTU Rs Bn 962.4 741.9 29.72 OI Contracts INDRTOOI Qty 7384147.0 7241057.0 1.98 OI Value INDRTOOV Rs Bn 1282.8 1272.7 0.79 FII Traded Contracts Qty 561379.0 3757790.0 49.39 Turnover Rs Bn 160.5 108.0 48.60 OI Contracts Qty 3276059.0 3216052.0 1.87 OI Value Rs bn 920.1 911.4 0.96 ---------------------------------------------------------------------------- * NA - Not available at the time of reporting due to more than usual delay in release by source. To contact the reporter on this story: --Urvana Somaiya in Mumbai at usomaiya@bloomberg.net

Placid’s Port Allen, Louisiana, Crude Unit Resumes Operation

http://www.bloomberg.com/news/2011-04-19/placid-s-port-allen-louisiana-crude-unit-resumes-operation-1-.html

Placid Refining Co. LLC’s Port Allen, Louisiana , refinery resumed operations at a crude unit today after completing repairs. The unit and several other downstream process components were shut after a fire April 17 at the 59,000-barrel-a-day refinery, the company said yesterday. Customer supplies weren’t affected, according to a statement e-mailed by Rafael Bermudez, an outside spokesman. The plant supplies jet fuel to the U.S. military, Bermudez said. To contact the reporter on this story: Aaron Clark in New York at aclark27@bloomberg.net To contact the editor responsible for this story: Dan Stets at dstets@bloomberg.net

Indonesia Stock Movers: Garuda Indonesia, Telekomunikasi, Timah

http://www.bloomberg.com/news/2011-04-19/indonesia-stock-movers-garuda-indonesia-telekomunikasi-timah.html

Shares of the following companies had unusual moves in Indonesian trading. Stock symbols are in parentheses, and prices are as of the 4 p.m. Jakarta-time close. The Jakarta Composite index (JCI) rose 5.58 points, or 0.2 percent, to 3,732.65. PT Garuda Indonesia (GIAA IJ), the nation’s largest airline, rose 1.9 percent to 540 rupiah, the steepest gain since April 1. Crude oil for May delivery fell 2.3 percent to $107.12 a barrel in New York yesterday, the first decline in four days, and was at $105.98 a barrel in after-hours trading. A lower oil price reduces the risk of higher fuel costs for the carrier. PT Telekomunikasi Indonesia (TLKM IJ), Indonesia’s biggest telephone company, jumped 4.1 percent to 7,650 rupiah, the steepest increase since March 24. Telkom, as the company is also known, said today it may spend as much as 3 trillion rupiah ($345 million) to buy back shares. PT Timah (TINS IJ), Indonesia’s largest tin producer, fell 1.8 percent to 2,800 rupiah, the biggest drop among mining companies. Tin futures retreated 2.3 percent to $32,350 a metric ton in London yesterday, the sharpest drop since March 15. To contact the reporter on this story: Femi Adi in Jakarta at fadi1@bloomberg.net To contact the editor responsible for this story: Darren Boey at dboey@bloomberg.net ;

Cantor Sells $635 Million of Commercial-Mortgage Backed Debt in Debut Deal

http://www.bloomberg.com/news/2011-04-19/cantor-sells-635-million-of-commercial-mortgage-backed-debt-1-.html

Cantor Fitzgerald LP, the bond broker working to transform itself into a full-service investment bank, sold $635 million of bonds backed by commercial mortgages in its first sale of the securities. The pool of loans includes a $52.4 million mortgage on the Hudson Valley Mall in Kingston, New York, and $41.4 million in debt on Tribeca West in Los Angeles , according to a person familiar with the transaction who declined to be identified because terms aren’t public. Cantor started its real-estate finance business in September as issuance revived after freezing up in 2008. Banks have arranged about $8.6 billion of commercial-mortgage backed securities this year, compared with $11.5 billion for all of last year, according to data compiled by Bloomberg. JPMorgan Chase & Co. (JPM) is planning a $1.5 billion sale. The largest AAA slice of New York-based Cantor’s deal, a $304.7 million portion maturing in 4.77 years, yields 125 basis points, or 1.25 percentage points, more than the benchmark swap rate, the person said. A $153.6 million portion of top-rated securities maturing in 9.64 years yields 140 basis points over the benchmark. Top-rated securities tied to commercial property loans are yielding 1.93 percentage points more than Treasuries, compared with 2.28 percentage points on Dec. 31, according to a Barclays Plc index. Relative yields on the debt were as low as 1.88 percentage points on Feb. 18, the data show. Issuance may climb to $45 billion this year, according to JPMorgan. Sales plummeted to $3.4 billion in 2009 during the financial crisis from a record $234 billion in 2007, Bloomberg data show. To contact the reporter on this story: Sarah Mulholland in New York at smulholland3@bloomberg.net To contact the editor responsible for this story: Alan Goldstein at agoldstein5@bloomberg.net .

EU to Investigate Possible ‘Throttling’ of Internet Services

http://www.bloomberg.com/news/2011-04-19/eu-to-investigate-possible-throttling-of-internet-services.html

The European Union’s Internet chief threatened to ban companies from unfair “blocking or throttling” of Web traffic if efforts by regulators to ensure open access to services are shown to fail. Internet regulators should start “a rigorous fact-finding exercise” into practices including possible “abusive Internet traffic management,” the European Commission, the EU’s executive arm, said in an e-mailed statement today. The move coincides with new telecom rules that come into force across the 27-nation bloc next month. “If I am not satisfied, I will not hesitate to come up with more stringent measures,” Neelie Kroes , the EU commissioner in charge of the digital agenda, said in the statement. “If this proves to be insufficient, I am ready to prohibit the blocking of lawful services or applications.” Regulatory authorities in the EU’s member nations will be obliged from May 25 to promote the ability of Internet users “to access and distribute information or run applications and services of their choice.” Examples of “blocking” include restrictions by mobile- phone operators that prevent customers using alternative voice over Internet services to make phone calls. “Throttling,” which seeks to reduce Internet traffic congestion, can be abused to slow down the quality of content such as video streaming provided by rivals, the commission said. The Brussels-based EU agency plans to publish the results of the investigation by the Body of European Regulators for Electronic Communications at the end of this year. To contact the reporter on this story: Stephanie Bodoni in Brussels at sbodoni@bloomberg.net To contact the editor responsible for this story: Anthony Aarons at aaarons@bloomberg.net

Barclays Private Equity to Buy The Mill from Carlyle, FT Says

http://www.bloomberg.com/news/2011-04-19/barclays-private-equity-to-buy-the-mill-from-carlyle-ft-says.html

Barclays Private Equity Ltd. agreed to buy The Mill, a London-based provider of digital visual effects for television and Internet ad campaigns, from U.S. private equity firm The Carlyle Group in a deal that values the London company at 119 million pounds ($193.5 million), the Financial Times reported, citing remarks by Steven Silvester, director at Barclays Private Equity, Robert Easton, managing director and co-head of Carlyle Europe Technology Partners and Robin Shenfield, chief executive officer and co-founder of The Mill. To contact the reporter on this story: Blanche Gatt in London at bgatt@bloomberg.net To contact the editor responsible for this story: Colin Keatinge at ckeatinge@bloomberg.net .

Reliance’s Two Gas Finds Said to Be Rejected by India Regulator

http://www.bloomberg.com/news/2011-04-19/reliance-s-two-gas-finds-said-to-be-rejected-by-india-regulator.html

Reliance Industries Ltd. (RIL) had two natural gas discoveries in India rejected because tests to establish reserves differed from methods recommended by the regulator, a person with direct knowledge of the matter said. The two wells are located in the NEC-25 block off the coast of the eastern state of Orissa, the person said, asking not to be identified because he isn’t allowed to speak to the press. The regulator may reject four more gas wells in the KG-D6 block, the nation’s biggest deposit of the fuel, the person said. Reliance, controlled by billionaire Mukesh Ambani , is seeking new reserves to help offset a decline in gas production from the D6 area. Reliance’s net income missed analysts’ estimates in the three months ended Dec. 31 after gas output fell. S.K. Srivastava, director general of India ’s oil regulator, didn’t answer two calls to his mobile phone seeking comment. Reliance spokesman Manoj Warrier declined to comment. Reliance gained 0.3 percent to 1,011.65 rupees at the close in Mumbai. The stock has declined 4.7 percent in the past year compared with a 9.9 percent increase in the benchmark Sensitive Index. The Directorate General of Hydrocarbons wants Reliance to drill 11 wells in the KG-D6 block in the year that started April 1, including two wells that were to be drilled last year, the person said. The drilling may mean spending more than $1 billion, the person said. The additional wells may not result in gas production increasing from the KG-D6 block, the person said. The regulator’s rejection of the gas discoveries was reported by CNBC-TV18 today, citing people it didn’t identify. Reliance is producing 50 million cubic meters of gas a day from the D1, D3 and MA areas in the KG-D6 block, a person with direct knowledge of the matter said April 11. Reliance sold stakes in 23 Indian oil and gas blocks, including KG-D6, to BP Plc for $7.2 billion in February as it seeks technology to raise output. To contact the reporter on this story: Rakteem Katakey in New Delhi at rkatakey@bloomberg.net To contact the editor responsible for this story: Amit Prakash at aprakash1@bloomberg.net

South Africa Sees ‘Alternatives’ to WTO-Brokered Trade Pact, Minister Says

http://www.bloomberg.com/news/2011-04-19/south-africa-sees-alternatives-to-wto-brokered-trade-pact-minister-says.html

South Africa sees “alternatives” to a World Trade Organisation-brokered global trade accord as the demands of developed nations have become “unreasonable,” according to Trade and Industry Minister Rob Davies. “The demands of the big players are dominating the process and it’s led to demands which are frankly not sustainable” and which are “unreasonable,” he told lawmakers in Cape Town today. “A lot of people are saying the multilateral system will be in danger. We now have alternatives.” South Africa, which recently joined the BRIC group of nations, is now able to build trade relations amongst other developing countries, Davies said. To contact the editor responsible for this story: Alastair Reed at areed12@bloomberg.net

AusChina Energy Plans A$6 Billion of Renewable Projects Over Eight Years

http://www.bloomberg.com/news/2011-04-19/auschina-energy-plans-a-6-billion-of-renewable-projects-over-eight-years.html

AusChina Energy Group, a venture between Australia ’s CBD Energy Ltd. (CBD) and two Chinese companies, plans to develop A$6 billion ($6.3 billion) of renewable-energy projects over the next eight years. The venture between CBD, China Datang Renewable Power Co. and Baoding Tianwei Baobian Electric Co. aims to get a third of Australia’s renewable-energy market by investing in wind farms, solar-thermal and energy-storage projects, CBD said in a statement to the Australian Stock Exchange yesterday. AusChina Energy has an initial 1,500 megawatts of projects on which it plans to spend A$3 billion to develop by 2014. The Chinese partners will provide equipment and funding to the venture, according to the statement. China Datang, based in Beijing, holds a 63.75 percent stake in the venture, while Double Bay-based CBD has 23.75 percent and Hebei-based Baoding Tianwei holds 12.5 percent. To contact the reporter on this story: Natalie Obiko Pearson in Mumbai at npearson7@bloomberg.net. To contact the editor responsible for this story: Reed Landberg at landberg@bloomberg.net .

Gold Futures Rise to $1,500 an Ounce on Comex, Extending Rally to Record

http://www.bloomberg.com/news/2011-04-19/gold-futures-rise-to-1-500-an-ounce-on-comex-extending-rally-to-record.html

Gold futures for June delivery rose as much as 0.5 percent to $1,500 an ounce on the Comex in New York , extending a rally to a record. To contact the editor responsible for this story: Patrick McKiernan at pmckiernan@bloomberg.net

Brazil’s Bovespa Gains Most in One Month on Unemployment Report

http://www.bloomberg.com/news/2011-04-19/brazil-s-bovespa-gains-most-in-one-month-on-unemployment-report.html

The Bovespa stock index rose the most in a month, rebounding from yesterday’s drop, after a report showed Brazil ’s unemployment rate rose less than forecast in March. Hypermarcas SA, Brazil’s fourth-largest consumer-goods company by market value, led gains by companies that depend on domestic demand. Brasil Ecodiesel Industria e Comercio de Biocombustiveis e Oleos Vegetais SA advanced after announcing it’s in talks to merge with Vanguarda do Brasil SA to create a biodiesel and crop producer valued at 2.16 billion reais ($1.4 billion). OGX Petroleo & Gas Participacoes SA rebounded from yesterday’s 17 percent drop. The Bovespa rose 1.1 percent to 66,121.45 at the close of Sao Paulo trading at 4:15 p.m. New York time, the most since March 22. Forty-nine stocks gained, 18 declined and two were unchanged. The measure tumbled the most in more than two months yesterday after Standard & Poor’s put a “negative” outlook on its AAA credit rating for the U.S., Brazil’s second-biggest trading partner. “If it was just for Brazil’s fundamentals, we’d be much more optimistic,” Alexandre Ghirghi, who manages about 150 million reais at Metodo Investimentos in Sao Paulo, said in a telephone interview. “Economic growth was brilliant last year, beyond our expectations, but the stock market stayed sideways. I think there’s plenty of room for recovery in the longer run.” The real strengthened 0.7 percent to 1.5793 per U.S. dollar. Unemployment Report Unemployment in March rose to 6.5 percent from 6.4 percent in February, the national statistics agency said in a report published today in Rio de Janeiro. That’s lower than the median 6.7 percent estimate of 36 analysts surveyed by Bloomberg. Brazil’s central bank starts a two-day meeting to decide on the country’s benchmark interest rate today. The so-called Selic rate will be increased 50 basis points, or 0.5 percentage point, to 12.25 percent, according to the median estimate of 50 economists surveyed by Bloomberg. Stocks around the world gained as companies in the U.S. and Europe reported earnings that beat analysts’ forecasts. The Stoxx Europe 600 Index gained 0.5 percent to 274.42. Brasil Ecodiesel gained 1.2 percent to 0.85 reais after earlier jumping 3.6 percent. The company’s board said in a regulatory filing it is likely to make a decision on the proposed merger with Vanguarda within 60 days. Veremonte Participacoes SA, a company controlled by Spanish billionaire Enrique Banuelos, indirectly owns a controlling stake in both Ecodiesel, a biodiesel producer, and a 50 percent stake in Vanguarda, a soybean, cotton and corn producer in Brazil. Petrobras Shipment Petroleo Brasileiro SA, Brazil’s state-controlled oil company, gained 0.9 percent to 25.73 reais after earlier climbing 2.1 percent. The company known as Petrobras said it reached a deal to export its first shipment from the country’s second-largest crude field. The producer will sell 1 million barrels of oil from the deepwater Lula field to Chile ’s Empresa Nacional de Petroleo, according to an e-mailed statement today. Delivery is expected in mid-May, the company said. OGX jumped 4.9 percent to 17.05 reais, leading gains for the Bovespa index. The oil producer rebounded from yesterday’s drop, when shares plunged 17 percent after a report on its oil reserves trailed analysts’ estimates. “The market overshot on OGX,” Max Bueno, an analyst at Spinelli SA in Sao Paulo, said in a telephone interview. Hypermarcas rose 4 percent to 21.25 reais, the most since March 18. The Bovespa is down 4.5 percent this year as homebuilders and banks declined on concern inflation will limit growth, overshadowing a rally in telecom shares. The index trades at 10.4 times analysts’ earnings estimates, according to weekly data compiled by Bloomberg. That compares to a ratio of 14.2 for the Shanghai Composite Index, 7.1 for Russia ’s Micex, and 15.1 for India ’s Sensex. Investors pulled 3.3 billion reais from Latin America’s biggest equity market this year through April 13, data from the Sao Paulo exchange show. To contact the reporter on this story: Ney Hayashi in Sao Paulo at ncruz4@bloomberg.net To contact the editor responsible for this story: David Papadopoulos in New York at papadopoulous@bloomberg.net

Hindustan Petroleum Offers Naphtha for May Loading, ICIS Says

http://www.bloomberg.com/news/2011-04-19/hindustan-petroleum-offers-naphtha-for-may-loading-icis-says.html

Hindustan Petroleum Corp. has offered to sell 20,000 to 25,000 metric tons of naphtha for loading from Mumbai on May 1 to May 7, ICIS reported today, citing traders that it didn’t identify. Bids will close on April 21, according to ICIS. To contact the reporters on this story: Lananh Nguyen in London at lnguyen35@bloomberg.net ; To contact the editor responsible for this story: Stephen Voss at sev@bloomberg.net

UniCredit Given Extra Time to Raise Capital Ratios, FT Reports

http://www.bloomberg.com/news/2011-04-19/unicredit-given-extra-time-to-raise-capital-ratios-ft-reports.html

UniCredit SpA (UCG) has been given additional time, until the end of the year, to raise capital to comply with Italian regulators’ new equity requirements, the Financial Times reported, citing two people briefed on the matter. Italian Finance Minister Giulio Tremonti and Bank of Italy Governor Mario Draghi have indicated UniCredit doesn’t need to follow peers into rights offerings because of the lender’s particular circumstances, the FT reported. These may include the fact that the lender’s two biggest investors, the Libyan Investment Authority and the Libyan Central Bank which together own 7.5 percent of the bank’s shares, would be unable to participate in a capital raising because of the conflict in Libya, the FT said, citing unnamed bankers. To contact the reporter on this story: Blanche Gatt in London at bgatt@bloomberg.net To contact the editor responsible for this story: Colin Keatinge at ckeatinge@bloomberg.net .

Microsoft’s Turner Says Japan Business Has Been ‘Very Strong’

http://www.bloomberg.com/news/2011-04-19/microsoft-s-turner-says-japan-business-has-been-very-strong-.html

Kevin Turner, chief operating officer of Microsoft Corp. (MSFT) , comments on the world’s biggest software maker’s business performance in Japan and other markets and its plans to invest in cloud computing. Turner spoke to reporters in Singapore today. On business performance: “Our business in Japan has been really strong. We’re certainly working through the national disaster that they’re dealing with in their economy. We don’t know what’s going to happen there. But certainly, we’ve had a very good and a very healthy business for a very long time and certainly year to date, it’s been very strong. ‘‘If you look across markets like Singapore, our business is growing extremely well and very rapidly. The beautiful thing about the global economy is that there’re always some strong markets and always some markets that are going through opportunity. ‘‘Our developed markets have been really, really strong all out as a company. In emerging markets, it’s really relative to what’s going on in the various environments, some are really off the charts and some are going through an opportunity to correct.” On cloud technology, or computing delivered over the Internet: “Office 365 is a game changer for our customers. Our plan is to continue to invest in our cloud capabilities. Today more than 75 percent of Microsoft’s R&D engineering talent is devoted to cloud-related services and products. Over the next year, we expect that number to grow in excess of 90 percent.” To contact the reporters on this story: Andrea Tan in Singapore at atan17@bloomberg.net ; Liza Tan in Singapore at ltan104@bloomberg.net To contact the editor responsible for this story: Douglas Wong at dwong19@bloomberg.net ; Young-Sam Cho at ycho2@bloomberg.net

Brasil Foods, Telmex, Usiminas: Latin America Equity Preview

http://www.bloomberg.com/news/2011-04-19/brasil-foods-telmex-usiminas-latin-america-equity-preview.html

The following companies may have unusual price changes in Latin American trading. Stock symbols are in parentheses and share prices reflect the previous close. The MSCI Latin America Index tumbled 2.7 percent to 4,482.84, the biggest drop since October. Brazil Banco Pine SA (PINE4 BS): The Brazilian lender focused on loans to mid-sized companies postponed its offering of five-year international bonds, said a press official who declined to be identified in accordance with company policy. The shares fell 2.5 percent to 12.68 reais. BRF Brasil Foods SA (BRFS3 BS): Chairman Luiz Fernando Furlan agreed to pay 200,000 reais ($125,786) to settle a case with Brazil’s securities regulator. The payment will settle a claim that Furlan, while chairman of Sadia SA, failed to keep secret the negotiations that led to the merger of Sadia with Perdigao SA to form Brasil Foods, the regulator said in an e- mailed statement. The stock gained 0.7 percent to 30.95 reais. Drogasil SA (DROG3) (DROG3 BS): The Brazilian drugstore chain was cut to "market perform" from "outperform" at Itau Securities. The brokerage has a share-price forecast of 13.40 reais. The stock retreated 3.4 percent to 12.07 reais. Usinas Siderurgicas de Minas Gerais SA (USIM5) (USIM5 BS): Brazil’s second-biggest steelmaker said it’s unaware of any move by rival Gerdau SA to buy a stake in the company. Usiminas, as the steelmaker is known, also said it’s unaware of any intention by Cia. Siderurgica Nacional SA to increase its stake, according to a regulatory filing. The shares tumbled 2.7 percent to 17.15 reais. Mexico Alfa SAB (ALFAA MM): Alestra SA, Alfa’s fixed-line phone unit, was put on review by Moody’s Investors Service for a possible downgrade. Alfa’s planned acquisition of the 49 percent stake of Alestra held by AT&T Inc. could have a “negative impact” on Alestra’s sales, Moody’s said in a statement. Alfa plunged 4.1 percent to 167.28 pesos. Telefonos de Mexico SAB (TELMEXL MM): Mexico’s largest fixed-line telephone company agreed to increase workers’ salaries by 4.4 percent after a salary review with union members, the company said in an e-mailed statement. The stock declined 0.6 percent to 10.76 pesos. To contact the reporter on this story: Jonathan J. Levin in Mexico City at jlevin20@bloomberg.net To contact the editor responsible for this story: David Papadopoulos at dpapadopoulos@bloomberg.net

Ukraine Wheat Production, Exports May Rebound, USDA Unit Says

http://www.bloomberg.com/news/2011-04-19/ukraine-wheat-production-exports-may-rebound-usda-unit-says.html

Ukraine may produce 19.6 million metric tons of wheat in the marketing year that will begin July 1, up from an estimated 16.845 million tons this year, a unit of the U.S. Department of Agriculture said in a report posted today on its website. Exports may rebound to 9 million metric tons next year, from 3.5 million a year earlier, the USDA’s Foreign Agricultural Service said. To contact the reporter on this story: Whitney McFerron in Chicago at wmcferron1@bloomberg.net To contact the editor responsible for this story: Steve Stroth at sstroth@bloomberg.net

Serbia’s New IMF Arrangement May Begin in September, Danas Says

http://www.bloomberg.com/news/2011-04-19/serbia-s-new-imf-arrangement-may-begin-in-september-danas-says.html

Serbia’s new, precautionary credit with the International Monetary Fund may be negotiated within the coming months and start in September, Danas reported, citing Mission Chief Albert Jaeger. The new loan program, size is yet to be determined, will help Serbia reduce the number of public workers, make the pension system more sustainable and the economy more export- oriented, Jaeger was quoted as saying by the newspaper. Funds from the credit would be drawn only in case of “external shocks” such as soaring energy prices, according to the report. Serbia’s initial 3 billion-euro ($4.26 billion) bailout loan with the IMF expired last week. The country drew only about a half of the amount. To contact the reporter on this story: Misha Savic in Belgrade at msavic2@bloomberg.net To contact the editor responsible for this story: James M. Gomez at jagomez@bloomberg.net

Sarkozy Calls For Special Workers’ Bonus as Economy Recovers

http://www.bloomberg.com/news/2011-04-19/sarkozy-calls-for-special-workers-bonus-as-economy-recovers.html

French President Nicolas Sarkozy said companies that have profited in the recovery from recession should give employees a special bonus, as he seeks to recoup support before he runs for re-election in a year’s time. “In all French companies, workers must feel that their efforts during the crisis are being rewarded,” Sarkozy told toolmakers today at La Fonte Ardennaise iron foundry in Vrigne- aux-Bois, northeast France. “If a company gives more to the shareholder, it must give more to the worker.” The president said parliament will examine a bill “in the coming weeks” that would force companies to “share profits.” Listed companies that increase their dividends would have to negotiate a bonus with workers, while unlisted small and medium- sized companies would have to provide a tax-free bonus. Sarkozy did not give full details of his plan. Sarkozy’s factory visit took him to the same region where in 2006 he announced the slogan of his first presidential campaign, “Work more to earn more.” Sarkozy is seeking to reconnect with those who supported him then, having become the least popular French president since World War II and facing possible elimination in the first round of next year’s vote. “I visit two to three factories every month, it’s not a caprice,” Sarkozy said. “It’s because I love factories.” His plans are “not promises, they are facts,” he told local mayors at a roundtable in the town of Renwez after the factory visit. The French leader, who has not formally declared his intentions for the 2012 race, travels around France once or twice a week, visiting workplaces and schools and meeting with voters. To contact the reporter on this story: Helene Fouquet in Renwez, France , at hfouquet1@bloomberg.net To contact the editor responsible for this story: James Hertling at

Italy’s Tremonti Says EU May Need New Treaty, Ansa Reports

http://www.bloomberg.com/news/2011-04-19/italy-s-tremonti-says-eu-may-need-new-treaty-ansa-reports.html

Italian Finance Minister Giulio Tremonti said the European Union’s governing treaty may have been rendered obsolete by the financial crisis and the impact of globalization and a new agreement should be considered, Ansa news agency reported. “They are products of a previous world,” Tremonti said in testimony to the Constitutional Affairs Committee of the European Parliament in Brussels, Ansa reported today. The global financial crisis is a reason “to think about a new and more intense European agreement,” he said. Tremonti said that after the region’s debt crisis is brought under control, the EU should consider collectively selling bonds to finance investment, particularly in energy. Tremonti also said that the EU has been “missing in action” in terms of dealing with the flood of immigrants fleeing violence in North Africa and arriving in Italy , Ansa reported. To contact the reporter on this story: Andrew Davis in Rome at abdavis@bloomberg.net. To contact the editor responsible for this story: Craig Stirling at cstirling1@bloomberg.net .

Gold Futures Climb to Record $1,498.90 an Ounce in New York Comex Trading

http://www.bloomberg.com/news/2011-04-19/gold-futures-climb-to-record-1-498-90-an-ounce-in-new-york-comex-trading.html

Gold futures rose to a record $1,498.90 an ounce by 7:49 a.m. on the Comex in New York. To contact the editor responsible for this story: Claudia Carpenter at ccarpenter2@bloomberg.net

Kansai Paint's Takeover of Freeworld Approved With Antitrust Conditions

http://www.bloomberg.com/news/2011-04-19/kansai-paint-s-takeover-of-freeworld-approved-with-antitrust-conditions.html

South Africa ’s Competition Commission said it proposed the takeover by Kansai Paint Co. of Freeworld Coatings Ltd. (FWD) be approved on condition the companies address competition concerns arisng from the transaction. To contact the editor responsible for this story: Vernon Wessels at vwessels@bloomberg.net

Chilean Stocks: CCU, CMPC, Falabella, Sudamericana de Vapores

http://www.bloomberg.com/news/2011-04-19/chilean-stocks-ccu-cmpc-madeco-sudamericana-de-vapores.html

The following companies had unusual price changes in Chilean trading. Stock symbols are in parentheses and prices are as of 3:14 p.m. New York time. The Ipsa index rose 0.7 percent to 4,675.60. Cia. Cervecerias Unidas SA (CCU CC) advanced 1.8 percent to 5,672.3 pesos, its highest value in three months. Chile’s largest brewer was initiated with a “hold” at Santiago-based brokerage firm IM Trust SA, with a year-end price estimate of 6,224 pesos. Cia. Sudamericana de Vapores SA (VAPORES CC) rose 1.5 percent to 385.99 pesos, its highest price in two weeks. Latin America’s largest container shipping company reported yesterday a 13 percent increase in container volumes in March from February. Empresas CMPC SA (CMPC) closed unchanged at 23,730 pesos. Chile’s second-largest pulp exporter will invest more than $600 million in 2011 and 2012 to expand production facilities in Chile and Mexico , according to the company’s annual report. SACI Falabella (FALAB) rose 3.2 percent to 4,850.9 pesos, the most in five weeks. Chile’s largest retailer by market value was reiterated “buy” yesterday at Banco Santander SA. To contact the reporter on this story: Eduardo Thomson in Santiago at ethomson1@bloomberg.net To contact the editor responsible for this story: David Papadopoulos at papadopoulos@bloomberg.net

JK Tyre Plans to Set Up 1,360-MW Power Plant in India, PTI Says

http://www.bloomberg.com/news/2011-04-19/jk-tyre-plans-to-set-up-1-360-mw-power-plant-in-india-pti-says.html

JK Tyre and Industries Ltd., an Indian tiremaker, plans to set up a 1,360-megawatts power plant near Jhansi in the central state of Madhya Pradesh , the Press Trust of India reported, citing Vice-Chairman and Managing Director Raghupati Singhania. The company will make an initial investment of 13 billion rupees on the venture, the report said. To contact the reporter on this story: Ameya Karve in Mumbai akarve@bloomberg.net. To contact the editor responsible for this story: Darren Boey at dboey@bloomberg.net .

EU Parliament Panel Supports Trichet Over Sarkozy on Tougher Budget Rules

http://www.bloomberg.com/news/2011-04-19/eu-parliament-panel-supports-trichet-over-sarkozy-on-tougher-budget-rules.html

A European Parliament panel blunted a French-German push to dilute tougher budget rules, supporting central bank chief Jean-Claude Trichet ’s call for a more credible threat of penalties against big-spending governments. The Parliament’s economic committee voted for more automatic sanctions against high-deficit nations such as Greece to limit the risk of future debt crises. European Union governments led by France and Germany agreed last month that penalties against budget violators should be left in political hands, a position that Trichet has criticized as president of the European Central Bank. At stake is an overhaul to toughen and speed up punishment of governments that head over the budget-deficit limit of 3 percent of gross domestic product and the debt ceiling of 60 percent of GDP. The European Commission, the EU regulator, proposed that fines be applied after no more than three votes by euro-area governments, which allowed for a fourth round of scrutiny. The Parliament committee turned the extra political buffer into a near-automatic step toward penalties. “We want more automaticity in the enforcement of the rules to avoid political horse-trading among governments,” Corien Wortmann-Kool , a Dutch member helping to steer the draft legislation through the 736-seat EU Parliament, said in an interview today in Brussels after the committee vote. The stand pits Trichet, commission President Jose Barroso and the Parliament against French President Nicolas Sarkozy and German Chancellor Angela Merkel as the EU seeks to strengthen the threat of fiscal penalties that have never been imposed in the euro’s 12-year history. Greece, which sparked the debt crisis last year by requiring a 110 billion-euro ($158 billion) rescue, has gone the whole period with a deficit over the limit. Market Tensions Trichet has urged euro-area governments to go further in tightening fiscal legislation and warned them against relying on the ECB to ease debt-market tensions through bond purchases on the secondary market and emergency liquidity measures. Trichet, who in early April oversaw the ECB’s first increase in interest rates in almost three years, has called for a “quantum leap” in the way euro-area governments coordinate and enforce budget policies. The Parliament economic committee’s vote will be the basis of negotiations with national governments over the new legislation, which the commission proposed in September and Sarkozy and Merkel first pledged to scale back in October. Approval by the EU Parliament as well as by governments is required. Six-Piece Package The EU aims to endorse a six-piece package of legislation on economic management by mid-year. The central pillar of the proposals is the system for fining the 17 nations that make up the euro area as much as 0.2 percent of GDP for failing to heed fiscal targets. Penalties starting with interest-bearing deposits could be imposed before a country bursts over the limit, with the money confiscated if the government balks at repeated EU demands to fix the budget. It is in this area where governments added an extra layer of political scrutiny over any members deviating from their targets before the imposition of fines, which would involve confiscating non-interest-bearing deposits. The Parliament’s economic committee kept the extra evaluation step while turning it into a formality on the path to penalties unless opponents can muster support from a weighted majority of governments within 10 days to block the process. A second part of the package would tackle debt more aggressively, applying the tougher surveillance system to nations that veer from the 60-percent-of-GDP limit. The Parliament’s economic committee endorsed a proposal by the commission that countries over the debt limit would have to hit an annual reduction target equal to 1/20th of the excess. To contact the reporter on this story: Jonathan Stearns in Brussels at jstearns2@bloomberg.net To contact the editor responsible for this story: James Hertling at jhertling@bloomberg.net

Mugabe to ‘Plunder’ Zimbabwe Economy With Ownership Law, Tsvangirai Says

http://www.bloomberg.com/news/2011-04-19/mugabe-to-plunder-zimbabwe-economy-with-ownership-law-tsvangirai-says.html

President Robert Mugabe ’s party will “plunder” Zimbabwe’s economy through a law requiring foreign businesses to cede control to black Zimbabweans, Prime Minister Morgan Tsvangirai said. “Now, 30 years after independence, we are being told by multimillionaires and multiple-farm owners that indigenization will set us free,” Tsvangirai, who leads the Movement for Democratic Change , said yesterday in an e-mailed statement. “They are not referring to the broad-based empowerment of the ordinary man and woman, but the looting and plunder of national resources by a small, parasitic elite.” Between 2000 and 2008, loyalists from Mugabe’s Zimbabwe African National Union-Patriotic Front seized almost all of the country’s white-owned commercial farms in an often violent campaign that displaced about 300,000 farm workers and as many as 2 million of their dependents, according to groups that campaign for farmers’ rights, such as the Harare-based Commercial Farmers’ Union and Justice for Agriculture. Rugare Gumbo, ZANU-PF spokesman, denied Tsvangirai’s allegation today in a telephone interview from Harare, saying, “There is nothing like that. Farms in Zimbabwe have been allocated lawfully and the empowerment process will continue lawfully.” Under the Indigenization and Empowerment Act, which became law on March 1, 2010, foreign-owned businesses have five years to sell 51 percent of their shares to black Zimbabweans. The measure has yet to be enforced. The legality of the law is disputed by the MDC, which shares power with ZANU-PF, the party that drafted the law. The measure was pushed through parliament before elections in March 2008 in which the MDC won a majority. To contact the reporter on this story: Brian Latham in Durban at blatham@bloomberg.net. To contact the editor responsible for this story: Antony Sguazzin at asguazzin@bloomberg.net .

Portugal’s Sines to Receive LNG Cargo From Nigeria on April 22

http://www.bloomberg.com/news/2011-04-19/portugal-s-sines-to-receive-lng-cargo-from-nigeria-on-april-22.html

Portugal ’s port of Sines is scheduled to receive a shipment of liquefied natural gas from Nigeria on April 22. The LNG Sokoto is sailing from Bonny in Nigeria, according to the website of Administracao do Porto de Sines SA , the port’s management company. The Sines LNG terminal, with a capacity of 5.26 billion cubic meters of natural gas a year, is managed by REN-Redes Energeticas Nacionais SA, the nation’s power and gas grid operator. LNG is gas that’s cooled to a liquid for shipment by tanker and then converted back to a gas at terminals for distribution to users. Galp Energia SGPS SA (GALP) , Portugal’s biggest oil and gas company, receives LNG at Sines as well as gas from Algeria through a pipeline crossing Morocco and Spain. Galp also operates Portugal’s largest refinery at Sines. EDP-Energias de Portugal SA, the country’s biggest power utility, runs a coal- fired electricity plant at the site. To contact the reporter on this story: Joao Lima in Lisbon at jlima1@bloomberg.net To contact the editor responsible for this story: Will Kennedy at wkennedy3@bloomberg.net

South Africa to Auction Mining Rights Reverted to State, Business Day Says

http://www.bloomberg.com/news/2011-04-19/south-africa-to-auction-reverted-mine-rights-business-day-says.html

South Africa ’s Department of Mineral Resources will set up a bidding system allowing investors to compete for mineral rights that have reverted to the state before June, Business Day reported, citing Director- General Sandile Nogxina. The department will ensure that no outstanding litigation affects the properties and that previous owners don’t have legal claims to them before putting them on auction, the Johannesburg- based newspaper said. To contact the editor responsible for this story: Ana Monteiro at amonteiro4@bloomberg.net

Wimbledon Will Pay the Men’s, Women’s Champions 1.1 Million Pounds Each

http://www.bloomberg.com/news/2011-04-19/wimbledon-will-pay-the-men-s-women-s-champions-1-1-million-pounds-each.html

Wimbledon’s singles champions will each receive 1.1 million pounds ($1.79 million), the most in the history of the tennis tournament, the All England Club said. The 100,000-pound increase for the winners comes as the event, being held for the 125th time, competes with other tournaments to compensate top players, Chairman Philip Brook said. “It is important that we offer prize money which suitably rewards the players both for the box-office appeal they bring to the event and for their supreme performances on the court,” he said. Total prize money will rise 6.4 percent to 14.6 million pounds, the southwest London club said. The tournament, where Serena Williams and Rafael Nadal are defending champions, will be held June 20 through July 3. To contact the reporter on this story: Danielle Rossingh at the All England Club through the London sports desk at drossingh@bloomberg.net To contact the editor responsible for this story: Christopher Elser at celser@bloomberg.net .

Novolipetsk First-Quarter Sales Rose 41%, Sees Future Gains

http://www.bloomberg.com/news/2011-04-19/novolipetsk-first-quarter-sales-rose-41-sees-future-gains-1-.html

OAO Novolipetsk Steel, owned by Russian billionaire Vladimir Lisin , reported a 41 percent gain in first-quarter sales to $2.4 billion, and forecast further increases in revenue and output in the following three months. The margin on earnings before interest, tax, depreciation and amortization was 20 percent to 25 percent in the first quarter, it said in a statement, from 23 percent a year ago. Crude steel production rose 1.8 percent in the quarter from a year before and fell 2.8 percent from the prior three months. “We expect sequential growth in second-quarter sales volumes as market conditions improve,” the company said today. To contact the reporters on this story: Ilya Khrennikov in Moscow at ikhrennikov@bloomberg.net. To contact the editor responsible for this story: Amanda Jordan at ajordan11@bloomberg.net .

Texas Teacher Pension Needs 21% Return to Keep 80% Funded Ratio

http://www.bloomberg.com/news/2011-04-19/texas-teacher-pension-needs-21-return-to-keep-80-funded-ratio.html

The Teacher Retirement System of Texas needs an annual return of 21 percent in the year ending Aug. 31 to maintain an 80 percent funded ratio, the level actuaries consider adequate to cover liabilities, said its deputy director. “We’d have to have remarkable investment returns for the rest of the year to reach 80 percent,” Brian Guthrie, the fund’s executive director-designate, said at a Texas House hearing today in Austin. The fund’s investment return was 14.7 percent in 2010, the best among large public pension funds, Chief Investment Officer Britt Harris said at an April 7 board meeting. The fund had about $109 billion on April 1, up from $95.7 billion in September. Even with the gains, the pension’s funded ratio -- the portion of promised benefits covered by current assets -- dropped to 81.3 percent as of Feb. 28 from 82.9 percent on Aug. 31, 2010, because of trading losses in 2008 and 2009 included through a process called smoothing, Executive Director Ronnie Jung said April 7. Public pensions nationwide are grappling with about $3.6 trillion in unfunded liabilities, according to a 2010 study by Joshua Rauh of Northwestern University and Robert Novy-Marx of the University of Rochester. Texas Teachers’ annualized return for the decade ended Dec. 31 was 4.8 percent, below the fund’s assumption of an 8 percent annual return. Texas legislators are considering reducing the state’s contribution to the fund, which is now 6.64 percent of employees’ salaries. The Texas House earlier this month passed a budget that would cut general revenue spending by $4.6 billion, or 5.2 percent, during the 2012-2013 biennium. To contact the reporter on this story: David Mildenberg in Austin, Texas, at dmildenberg@bloomberg.net To contact the editor responsible for this story: Mark Tannenbaum at mtannen@bloomberg.net

Copper Prices Rise as Freeport Halts Operations at Grasberg Mine

http://www.bloomberg.com/news/2011-04-19/copper-rises-as-halt-at-freeport-mine-compounds-supply-concern.html

Copper rose, halting the longest slump since June, after Freeport-McMoRan Copper & Gold Inc. said it suspended operations at a mine in Indonesia. Subsurface activity was stopped at the Grasberg mine after an “industrial accident” killed one worker and left another missing, said Freeport, the world’s biggest publicly traded producer. U.S. builders broke ground on 549,000 homes at an annual pace in March, more than analysts forecast. Copper has gained 21 percent in the past year. “The market is in a long-term uptrend” because global mine output is failing to keep pace with demand, said Lannie Cohen, the president of Capitol Commodity Services Inc. in Indianapolis. Copper futures for July delivery rose 3.1 cents, or 0.7 percent, to close at $4.2485 a pound at 1:23 p.m. on the Comex in New York. Before today, prices fell for six sessions, dropping 6.3 percent, partly on concern that demand will slow as China , the world’s biggest consumer, tightens credit to fight inflation. The metal gained today after a report signaled that manufacturing remains robust in China. “Any sort of worries over what impact the Japanese earthquake might have had on activity in China have been put aside now,” said Christin Tuxen, an analyst at Danske Bank A/S in Copenhagen. On the London Metal Exchange, copper for three-month delivery climbed $115, or 1.2 percent, to $9,340 a metric ton ($4.24 a pound.) Lead, zinc, aluminum and tin also rose in London. Nickel fell. To contact the reporters on this story: Yi Tian in New York at ytian8@bloomberg.net ; Agnieszka Troszkiewicz in London at atroszkiewic@bloomberg.net To contact the editor responsible for this story: Steve Stroth at sstroth@bloomberg.net

Enel Green Power Planning to Spend $9.1 Billion on Renewables Through 2015

http://www.bloomberg.com/news/2011-04-19/enel-green-power-planning-to-spend-9-1-billion-on-renewables-through-2015.html

Enel Green Power SpA (EGPW) , a unit of Italy’s biggest utility, will spend 6.4 billion euros ($9.1 billion) through 2015 on power plants using wind, sun and other renewable sources, the chief executive officer said. Part of the funding will go to building a factory to make solar-energy panels in Catania on the Italian island of Sicily, Enel Green Power CEO Francesco Starace said at a conference in Dubai today. Italy’s state-controlled utility Enel SpA (ENEL) sold shares and listed Enel Green Power on the Milan Stock Exchange in November. The company, which operates wind, solar, thermal and hydro- electric plants, is expanding in Europe and the Americas. Enel Green Power has earmarked about 1 billion euros for spending on solar plants and the panel factory, Starace said. The first phase of the Catania project will cost 300 million euros, and the possible expansion of the facility may bring the total expense to 800 million euros, he said. The company aims to expand production in Italy , Spain, France, Greece, Turkey, Romania, Starace said. Enel Green Power may expand to North Africa and the Middle East after 2015, he said. To contact the reporters on this story: Anthony DiPaola in Dubai at adipaola@bloomberg.net. To contact the editors responsible for this story: Stephen Voss on sev@bloomberg.net .

RHB’s Choy Says China, Singapore to Gain From U.S. Credit Woes

http://www.bloomberg.com/news/2011-04-19/rhb-s-choy-says-china-singapore-to-gain-from-u-s-credit-woes.html

Ray Choy, head of debt-market research at RHB Research Institute in Kuala Lumpur , comments on the U.S. credit-rating outlook and the market implications for Asian sovereign debt. Standard & Poor’s cut the outlook on the U.S. top AAA rating yesterday, citing a one-in-three chance of a downgrade within two years on debt concern. Choy made the comments in a phone interview. “The search for the next best reserve-currency proxy could lead to flows initially to the G-3 sovereign markets in Germany and Japan. However, this is likely to be short-lived given low yields and continued questions over the long-term sustainability of high G-3 sovereign ratings. “Selective emerging markets with sound macroeconomic policies and higher yields in Asia outside Japan stand to benefit from the increased downgrade risk to G-3 economies. We should continue to see a trend of narrowing differentials relative to the high-grade G-3 economies. “Although China is also attached with a negative outlook, it has a relatively more attractive risk-reward profile. The U.S. already has the top rating with no upside potential, and the risk-reward is skewed to the downside. “We foresee greater downward pressure on the U.S. dollar this year and next year, and added upside risks on U.S. Treasury yields. Hence, capital flows would benefit well-managed economies in emerging markets and in Asia outside Japan. These would include China, Singapore and Malaysia.” To contact the reporter on this story: David Yong in Singapore at dyong@bloomberg.net. To contact the editor responsible for this story: Sandy Hendry at shendry@bloomberg.net .

East African Community Names Rwandan as Secretary-General

http://www.bloomberg.com/news/2011-04-19/east-african-community-names-rwandan-as-secretary-general-1-.html

The East African Community appointed Rwandan Health Minister Richard Sezibera as its new secretary-general, replacing Tanzania ’s Juma Mwapachu, whose five-year term ends this month. Sezibera’s deputy will be Enos Bukuku, deputy governor of the Bank of Tanzania, according to a statement read today at an EAC summit in Dar es Salaam, Tanzania’s commercial capital. Sezibera is currently a member of the board of the Global Alliance for Vaccines and Immunization, which is co-funded by the Bill & Melinda Gates Foundation. The EAC post of secretary-general is a rotational position among Uganda, Kenya , Tanzania, Rwanda and Burundi, the bloc’s partner states. Rwanda and Burundi, which joined the community in June 2007, hadn’t previously headed the organization. To contact the reporter on this story: David Malingha Doya in Dar es Salaam via Nairobi at pmrichardson@bloomberg.net. To contact the editor responsible for this story: Paul Richardson at pmrichardson@bloomberg.net .

Zhejiang Glass Denies Hexun Report It May Declare Bankruptcy

http://www.bloomberg.com/news/2011-04-19/zhejiang-glass-denies-hexun-report-it-may-declare-bankruptcy.html

Zhejiang Glass Co., which has been suspended from trading in Hong Kong for almost a year, denied a report by news website Hexun.com that it may declare bankruptcy. Bankruptcy is “impossible,” Tao Haipin, a Zhejiang Glass investor relations official, said by telephone today. “We are looking for partners for restructuring.” The company’s stock was suspended May 2010 pending the release of its 2009 earnings. Hexun reported yesterday that Zhejiang Glass may declare bankruptcy or be acquired by a state-owned company, citing banks and the local government of the region where the company is based. The glassmaker owes banks 7 billion yuan ($ billion), Hexun reported, citing an unidentified person familiar with the company’s accounts. “Basically, the company is now under the control of the local government and the future is all based on the government’s decision,” Zhejiang Glass’s Tao said today by telephone. Zhejiang Glass was the first company from China founded by private individuals to list shares in Hong Kong, Hexun reported. To contact the editor responsible for this story: John Liu at jliu42@bloomberg.net

Russia’s Investment Fund Seeks Returns of 15-20%, Dmitriev Says

http://www.bloomberg.com/news/2011-04-19/russia-s-investment-fund-seeks-returns-of-15-20-dmitriev-says.html

Vladimir Dmitriev, chairman of Russia’s state development bank VEB, comments on the country’s planned sovereign investment vehicle, the Direct Investments Fund. Dmitriev spoke to reporters in Washington , where he participated in International Monetary Fund meetings on April 16 and April 17. Russia plans to complete registration of the fund as soon as May, he said. On returns: “Co-investors will invest 5 rubles per ruble of investments from the fund. The sectors that matter for investors are those that are understandable, where they are able to secure good returns on their investment. We expect that won’t be below 15 percent. Overall, we’re talking about 20 percent. That’s what is attractive to the investors with whom we are in talks.” On the size of the fund: “This year, we’re talking about $2 billion. We plan that the Russian share of the fund will be formed at $10 billion over five years. “We have to show a pipeline of projects and only then ask for money. It makes no sense to ask for $2 billion if we only have projects for $1 billion. We presume that this $1 billion will generate $5 billion in private investments.” On sectors of the economy that the fund will invest into: “Agriculture, food-processing industry, pharmaceutical industry, anything that has a good potential for growth in Russia. To contact the reporter on this story: Halia Pavliva in New York at hpavliva@bloomberg.net To contact the editors responsible for this story: Gavin Serkin at gserkin@bloomberg.net ; David Papadopoulos at papadopoulos@bloomberg.net

Three-Month Euribor Rises to Highest Level in Almost Two Years

http://www.bloomberg.com/news/2011-04-19/three-month-euribor-rises-to-highest-level-in-almost-two-years.html

The rate at which European banks say they see each other lending in euros for three months increased to the highest level in almost two years, according to the European Banking Federation. The euro interbank offered rate, or Euribor, climbed 0.5 basis point to 1.343 percent today, EBF data showed. That’s the highest level since May 5, 2009. To contact the reporter on this story: Keith Jenkins in London at kjenkins3@bloomberg.net To contact the editor responsible for this story: Daniel Tilles at dtilles@bloomberg.net

Canadian Natural Gas Up on Higher U.S. Heating, Cooling Demand

http://www.bloomberg.com/news/2011-04-19/canadian-natural-gas-up-on-higher-u-s-heating-cooling-demand.html

Canadian natural gas rose as late- season cold in the U.S. Midwest boosts furnace use and warm weather in the South spurs air-conditioning needs. Demand for heat in the Chicago area will top normal by 52 percent tomorrow as cold weather lingers over the Midwest, according to Weather Derivatives. Cooling needs elsewhere will drive air conditioning use to 66 percent above seasonal norms for the next week, the Belton, Missouri-based forecaster said. “There’s a very big split between the North and the South right now,” said Bob Haas, a meteorologist at MDA EarthSat Weather in Gaithersburg, Maryland. “You don’t get that too often.” Alberta gas for May delivery rose 8.25 cents, or 2.4 percent, to C$3.46 per gigajoule ($3.42 per million British thermal units) as of 3 p.m. New York time, according to NGX, a Canadian Internet market. Gas traded on the exchange goes to users in Canada and the U.S. and is priced on TransCanada’s Alberta system. Natural gas for May delivery on the New York Mercantile Exchange gained 12.4 cents, or 3 percent, to settle at $4.262 per million Btu. Spot gas at a Chicago hub where Canadian gas is traded dropped after touching a three-week high yesterday on forecasts of colder weather. Gas at the Alliance Pipeline delivery point fell 3.49 cents to $4.4294 per million Btu on the Intercontinental Exchange. Alliance is an express line that can carry about 1.5 billion cubic feet a day to the Midwest from western Canada. Hub Prices At the Kingsgate point on the border of Idaho and British Columbia, gas gained 0.19 cent to $4.1013, according to ICE. At Malin, Oregon, where Canadian gas is traded for California markets, gas was down 0.66 cent to $4.1761. Volume on TransCanada Corp.’s Alberta system, which collects the output of most of the nation’s gas wells, was 16.2 billion cubic feet as of 1:30 p.m. in New York, about 88 million below its target level. Gas was flowing at a daily rate of 2.66 billion cubic feet at Empress, Alberta, where the fuel is transferred to TransCanada’s main line. At McNeil, Saskatchewan, where gas is transferred to the Northern Border Pipeline for shipment to the Chicago area, the daily flow rate was 1.74 billion cubic feet. Available capacity on TransCanada’s British Columbia system at Kingsgate was 668 million cubic feet. The system was forecast to carry 1.84 billion cubic feet today, about 74 percent of its capacity of 2.51 billion. The volume on Spectra Energy’s British Columbia system, which gathers the fuel in northeastern British Columbia for delivery to Vancouver and the Pacific Northwest, totaled 2.82 billion cubic feet at 1:50 p.m. To contact the reporter on this story: Gene Laverty in Calgary at glaverty@bloomberg.net. To contact the editor responsible for this story: Dan Stets at dstets@bloomberg.net .

Biden Emerges to Lead Deficit Talks With Obama’s ‘Full Accord’

http://www.bloomberg.com/news/2011-04-19/biden-emerges-to-lead-deficit-talks-in-congress-with-obama-s-full-accord-.html

Vice President Joe Biden might have struggled to stay awake last week when President Barack Obama spoke about his debt-reduction plan. Still, When Obama needed someone to forge a deal with Congress, he summoned his second- in-command. For Biden -- who appeared to nod off for about 30 seconds during Obama’s speech on fiscal policy -- the assignment to lead the debt talks with lawmakers was further evidence of how the president depends on him, especially when it comes to dealing with an increasingly hostile Congress. Biden, who directed the White House campaign to reach an accord on this year’s budget and avoid a government shutdown, will now head negotiations between Republican and Democratic lawmakers to come up with a plan by the end of June for comprehensive debt reduction. He has also been tapped to find votes in Congress to raise the U.S. debt limit, according to an administration official who asked for anonymity. “He can do things; he has the president’s full accord,” Alan Simpson , co-chairman of the president’s debt commission, told reporters after an April 14 White House meeting with Obama, Biden and Erskine Bowles, the debt panel’s other leader. Simpson, a former Republican senator from Wyoming , said one of the best decisions Obama made was asking Biden to be the “point person” on the deficit discussions. Biden may be better known for his gaffes than his policy advice. In March 2010, he audibly whispered an expletive in Obama’s ear at the signing of the health-care law. During the 2008 election campaign, he introduced Obama to a crowd as “Barack America” and at a rally urged a wheelchair-bound Missouri legislator to “stand up” and take a bow. No ‘Gaffe Machine’ His supporters insist that those who work with Biden, 68, take him seriously. “Thinking people, the people you have to deal with in order to make the kind of things he’s made happen, they don’t think that Joe Biden’s a gaffe machine,” said longtime friend Ted Kaufman, who was appointed to Biden’s Senate seat from Delaware after the 2008 election. “ Mitch McConnell doesn’t underestimate him.” That’s what Obama is counting on in naming Biden to oversee the discussions on deficit reduction. House and Senate leaders from both parties will pick members from their caucuses to take part in the talks, and Biden will host the first meeting with lawmakers on May 5 at Blair House, the White House said yesterday. $4 Trillion Cut In his April 13 speech Obama outlined his plan to reduce the deficit by $4 trillion over 12 years. He set a target of reducing the annual U.S. deficit to 2.5 percent of gross domestic product by 2015, compared with the 10.9 percent of GDP projected for this year. During the speech, Obama, 49, teased Biden, who is 19 years his senior, saying “you don’t qualify” as one of the young people the president was addressing who may wonder why deficits matter. Biden, a 36-year veteran of the Senate who was either chairman or the top Democrat on the Foreign Relations Committee for 12 years, does qualify as a key presidential adviser, his backers say. He successfully argued behind the scenes for a multilateral effort before the March 19 U.S. and allied intervention in Libya, according to another person familiar with the talks. And he led the campaign to win Senate support to approve ratification of a new arms-reduction treaty with Russia. Looking for Momentum Since taking office in 2009, he has traveled to Baghdad six times to help wind down the war in Iraq. And he oversaw distribution of the $814 billion economic-stimulus package, an initiative that has drawn criticism from Republicans even as an independent board said that more than 75 percent of the funds have been allocated. On the deficit, Obama is seeking to regain momentum after the release of a spending plan by House Budget Committee Chairman Paul Ryan, a Wisconsin Republican, and an agreement with congressional Republicans on cuts for the current fiscal year that cleared the way for approval of a 2011 budget. At the beginning of March, Obama asked Biden to coordinate the administration’s efforts to break a stalemate on the 2011 budget. Soon after, the vice president held a meeting with Senate Majority Leader Harry Reid , a Nevada Democrat; House Speaker John Boehner , an Ohio Republican; Senate Minority Leader McConnell, a Kentucky Republican; and House Minority Leader Nancy Pelosi , a California Democrat, in his Capitol Hill office, according to chief of staff Bruce Reed. Biden asked all staff members to leave, then pushed a plan for the Senate to vote on a pair of competing proposals -- one a House Republican-backed measure to reduce the budget by $61 billion and the other a Democratic alternative that would cut about $10 billion. ‘Just Show’ The idea was to show those Republicans clamoring the loudest for deeper cuts that a compromise would be necessary. On March 9, the Senate rejected both options. Senator Susan Collins , a Maine Republican, called Biden “a constructive force in negotiations because he so understands Capitol Hill.” Some analysts dismiss his contribution to the budget talks. Daniel Mitchell, a senior fellow at the Cato Institute, a libertarian-leaning research group, said Biden’s outreach to his former colleagues “is mostly just show.” “He doesn’t have a budget and tax background and expertise,” Mitchell said. Douglas Holtz-Eakin, who was chief economic adviser to the 2008 Republican presidential candidate, Senator John McCain of Arizona , said Biden’s job of pushing Obama’s debt plan through Congress won’t be easy. ‘Pretty Thin’ “The president’s given a speech that’s pretty thin, and he’s left it to the vice president to bring to Congress,” said Holtz-Eakin, a former director of the Congressional Budget Office. Biden’s big strength may be in overseas affairs, having headed the Senate Foreign Relations Committee before becoming vice president. His behind-the-scenes role on Libya was as “a voice of extreme caution” sketching out “downside scenarios” against intervention during meetings with the president, said Steve Clemons, founder of the American Strategy Program at the Washington-based New America Foundation, a centrist public policy center, whom the administration has consulted on Libya. Biden’s argument ultimately prevailed. In his March 28 address to the nation on Libya, Obama stressed that the U.S. wasn’t going in alone to quell unrest. And shortly after the intervention began, the North Atlantic Treaty Organization took full control of all air operations over Libya. ‘Hard Feelings’ Still, some lawmakers say they wish that Biden had made more visits to Capitol Hill to talk about Libya. “There are hard feelings that are deeper than the lack of public criticism would indicate about not being consulted,” said Senator Jeff Sessions , an Alabama Republican. “That’s in both parties.” The White House “missed a great opportunity to not have the vice president be on top of the Libya situation from the beginning,” Sessions said in an interview. “All the senior members that are relevant he served with for a long time.” Republican Senator Orrin Hatch of Utah , who has known Biden for 34 years, said the vice president has the president’s ear, along with those of lawmakers. “I have no doubt that they would not move ahead or backwards or any other direction without having Joe Biden in the room,” Hatch said. To contact the reporter on this story: Kate Andersen Brower in Washington at kandersen7@bloomberg.net To contact the editor responsible for this story: Mark Silva at msilva34@bloomberg.net

Angel’s Kapur Says Normal Monsoon Will Ease Raw Material Prices

http://www.bloomberg.com/news/2011-04-19/angel-s-kapur-says-normal-monsoon-will-ease-raw-material-prices.html

Chitrangda Kapur, an analyst at Angel Broking Ltd., comments on consumer goods companies and stock market after the India Meteorological Department forecast a normal monsoon rainfall for a second year for the country, the world’s second-biggest producer of sugar, rice and cotton. Rainfall will be 98 percent of the 50-year average in the June-September season, the weather bureau said in a statement today in New Delhi. The bureau defines normal precipitation as 96 percent to 104 percent of the long-term average. Kapur spoke in a phone interview from her office in Mumbai. On raw material prices: “Normal monsoons will increase the farm output, including certain key raw material prices, which will help tame the food inflation and help ease out the inflationary pressures that most of the consumer goods companies are facing. ‘‘It will also increase the income for rural India , which comprises almost two-third of the country’s population. That will trigger demand not only for consumer goods, but also other sectors like automobile and farm equipment. ‘‘Overall it is very good news, which should reflect in the market and it will drive positive sentiment.’’ In the consumer goods sector, stocks like Dabur India Ltd., Britannia Industries Ltd. and Nestle India Ltd. may react positively immediately to this news as these companies have a huge rural population to cater and they also use a lot of agriculture commodities as raw materials, she said. To contact the reporter on this story: Ameya Karve in Mumbai +91-22-6120-3668 or akarve@bloomberg.net. To contact the editor responsible for this story: Darren Boey at +852-2977-6646 or dboey@bloomberg.net .

Community Health Seeks Dismissal of ‘Baseless’ Tenet Healthcare Suit

http://www.bloomberg.com/news/2011-04-19/community-health-seeks-dismissal-of-baseless-tenet-healthcare-suit.html

Community Health Systems Inc. (CYH) , accused in a lawsuit by Tenet Healthcare Corp. of overcharging Medicare, moved to dismiss what it called a “baseless” legal action. Community Health , which has an unsolicited buyout offer for Tenet, said in court papers that the claims must be dismissed in part because Community Health modified its acquisition proposal to an all-cash offer. Community Health filed its motion today in federal court in Dallas. Tenet, a Dallas-based operator of hospitals, sued Community Health on April 11, charging that it would have difficulty raising money for a buyout because its methods for admitting patients to hospitals under Medicare could subject it to “liability and damages of well over $1 billion.” “In a misguided effort to score points in this contest for corporate control, Tenet has filed this lawsuit attacking the ethics and professional judgment of 15,000 attending physicians, who make the decision whether to admit patients at CHS- affiliated hospitals,” Community Health said in the filing. Community Health offered $6 a share, or $7.3 billion, to acquire all the stock of Tenet. Tenet rejected the offer in December, saying it wasn’t “remotely fair.” “This changes nothing,” Rick Black, a spokesman for Tenet, said in a telephone interview. “We intend to vigorously prosecute our claims.” Tenet owns 49 hospitals. Community Health owns, operates or leases 130 hospitals. Tenet rose 15 cents, or 2.3 percent, to $6.64 in New York Stock Exchange composite trading at 4:15 p.m. Community Health, based in Franklin, Tennessee, climbed 70 cents, or 2.3 percent, to $31.20. The case is Tenet Healthcare Corp. (THC) v. Community Health Systems Inc., 11-00732, U.S. District Court, Northern District of Texas (Dallas). To contact the reporter on this story: Don Jeffrey in New York at djeffrey1@bloomberg.net. To contact the editor responsible for this story: Michael Hytha in San Francisco at mhytha@bloomberg.net .

Russian Milling Wheat Led Declines Last Week, Union Says

http://www.bloomberg.com/news/2011-04-19/russian-milling-wheat-led-declines-last-week-union-says-table-.html

Russian fourth-grade milling wheat fell 5.3 percent to 5,683 rubles ($201) a metric ton in Central Russia last week, leading declines in grain prices, the country’s Grain Union said today in an e-mailed statement. The following table gives average prices in rubles a ton and percentage changes in parentheses for the week ended April 15. To contact the reporter on this story: Marina Sysoyeva in Moscow at msysoyeva@bloomberg.net To contact the editor responsible for this story: Claudia Carpenter at ccarpenter2@bloomberg.net

Georgia Joins Dissenters Opposing Writedown Plan in State Foreclosure Deal

http://www.bloomberg.com/news/2011-04-19/georgia-joins-dissenters-opposing-writedown-plan-in-state-foreclosure-deal.html

Georgia Attorney General Sam Olens said he has “significant concerns” about a proposal to reduce loan balances for some homeowners as part of a settlement of a nationwide foreclosure probe, joining at least seven other states that have criticized such a plan. A deal with the top mortgage servicers in the U.S. that includes writedowns could encourage homeowners who are current on their loans to stop making payments, Olens, a Republican, said today in a telephone interview. “You’re declaring in advance who the winners and losers are,” Olens said. “I’m a little concerned that this process disengages the normal market forces.” Republican attorneys general in Virginia , Texas , Florida , South Carolina , Oklahoma, Nebraska, and Alabama have signed letters opposing the imposition of writedowns, which proponents call the most effective way to modify a home loan. State and federal agencies, including the U.S. Justice Department, last month submitted proposed settlement terms to five banks as a starting point for negotiations to set standards for mortgage service and foreclosure. The 50-state effort began last year after homeowners complained of faulty foreclosure practices in the housing collapse. The state-federal proposal calls in part for monetary payments by banks to go toward a loan-modification program that includes principal reductions. Proposal Supporters Supporters of the proposal include attorneys general of Iowa, Connecticut and Illinois , according to representatives in their offices. “Our position has been that principal reductions are one tool in the toolbox, and should only be used in appropriate circumstances,” Iowa Attorney General Tom Miller, who is leading the investigation for states, said in an e-mailed statement. “We have never advocated broad-based principal reductions that would pick winners and losers or trigger strategic defaults.” A separate agreement with 14 mortgage servicers announced April 13 by federal regulators was a “big step forward,” though it was “vague” on details that he hopes the attorneys general will clarify, Olens said. Standard & Poor’s , the New York-based ratings company, said in a Feb. 7 report that trimming mortgage balances is the “most effective” and “least frequent” modification. Fewer than 3 percent of workouts include writedowns. Borrowers who have loan balances in line with their home values have an incentive to keep paying and a cushion if they lose a job or face other financial setbacks, Cristian deRitis, a director at Moody’s Analytics Inc., said in an interview earlier this month. Olens today echoed concerns of the other dissenting attorneys general that writedowns could cause additional defaults as homeowners stop making payments so they can qualify for reductions. “Market forces generally work better than government dictates,” he said. To contact the reporter on this story: David McLaughlin in New York at dmclaughlin9@bloomberg.net ; Prashant Gopal in New York at pgopal2@bloomberg.net. To contact the editor responsible for this story: Michael Hytha at mhytha@bloomberg.net

Crude Oil Futures Advance in New York, Reversing Earlier Decline of 1.5%

http://www.bloomberg.com/news/2011-04-19/crude-oil-futures-advance-in-new-york-reversing-earlier-decline-of-1-5-.html

Crude oil advanced in New York , reversing an earlier decline of 1.5 percent. Crude for May delivery gained 43 cents, or 0.4 percent, to $107.55 a barrel at 11:34 a.m. on the New York Mercantile Exchange. To contact the editor responsible for this story: Richard Stubbe at rstubbe1@bloomberg.net

Cape Wind Power Project Off Massachusetts Wins U.S. Construction Approval

http://www.bloomberg.com/news/2011-04-19/cape-wind-power-project-wins-u-s-backing-for-construction-1-.html

The Cape Wind Energy Project won U.S. Interior Department approval of its construction plan in Massachusetts for the nation’s first offshore wind farm. Cape Wind Associates said building the wind turbines in the water, a project in development for about a decade, may begin as early as the U.S. fall. Federal officials said approving the plan is a milestone in developing clean-energy sources that will help lower carbon emissions and create jobs. “After a thorough review of environmental impacts, we are confident that this offshore commercial wind project -- the first in the nation -- can move forward,” Interior Secretary Ken Salazar said in a statement. Cape Wind plans to install 130 wind turbines in Nantucket Sound off the Massachusetts coast. The project has been opposed by homeowners whose ocean view would be affected by the windmill towers and by local lawmakers as a threat to a sensitive ecosystem. The Interior Department is seeking to speed the process of building wind energy projects off the Atlantic Coast, Salazar said today. In February, Salazar and Energy Secretary Steven Chu said development off New Jersey, Delaware, Maryland and Virginia may advance when no environmental impediments are identified. “Taking 10 years to permit an offshore wind project like Cape Wind is completely unacceptable,” Salazar said today at a news conference in Boston’s Charlestown Navy Yard national park where he was joined by Cape Wind Vice President Dennis Duffy. The department today took a step that may lead to a wind farm near New Jersey , seeking information to gauge interest and shortening the time for development, Salazar said. Duffy said Cape Wind has yet to sell half the power the wind farm is forecast to produce. “We are confident the bulk of the power will be sold and discussions are underway,” Duffy said Interior’s Bureau of Ocean Energy Management, Regulation and Enforcement approved the construction and operations plan. To contact the reporter on this story: Jim Snyder in Washington at jsnyder24@bloomberg.net To contact the editor responsible for this story: Larry Liebert at lliebert@bloomberg.net

Ringgit, Bonds Fall on U.S., Europe Debt Concern as Stocks Slide

http://www.bloomberg.com/news/2011-04-19/ringgit-bonds-fall-on-u-s-europe-debt-concern-as-stocks-slide.html

Malaysia’s ringgit fell to a four- week low as sovereign debt concerns in the U.S. and Europe prompted investors to favor safer bets than emerging-market assets. The currency dropped the most in a week after Standard & Poor’s cut the outlook on its AAA rating for the U.S. to negative from stable and the yield on Greece ’s two-year bonds exceeded 20 percent. Asian stocks fell for a third day and gold climbed for a third day to record on safe-haven demand. Government bonds declined. “People will sell and remain on the sidelines for a while given the uncertainty and knee-jerk aversion to risk,” said Lam Chee Mun, a fund manager in Kuala Lumpur at TA Investment Management Bhd. “It’s a timely reminder that countries will need to consider how they will pay up when the bills come due.” The ringgit weakened 0.1 percent to 3.0260 per dollar as of 4:08 p.m. in Kuala Lumpur , according to data compiled by Bloomberg. It earlier touched 3.0365, the weakest level since March 22. The MSCI Asia Pacific Index of stocks dropped 1.1 percent, tracking declines in U.S. and European equities. S&P put a one- in-three chance of a U.S. credit-rating downgrade within two years, saying policy makers need to agree on a plan by 2013 to reduce budget deficits and the national debt. The cost of insuring Greek government debt rose to a record yesterday. The additional yield on developing nations’ debt over U.S. Treasuries increased eight basis points to 273 yesterday, the highest level since March 18, according to JPMorgan Chase & Co.’s EMBI+ Sovereign Spread. It fell 6 basis points, or 0.06 percentage point, as of 9:08 a.m. in London. Inflation Survey Five-year notes declined, snapping a six-day rally and lifting yields from a one-month low, before a government report on inflation tomorrow. The yield on the 4.262 percent note due September 2016 increased 3 basis points to 3.57 percent, according to Bursa Malaysia. The price dropped 0.12, or 1.2 ringgit per 1,000 ringgit face amount, to 103.38. Consumer prices probably rose 3.1 percent in March from a year earlier, matching the biggest increase since April 2009, according to the median forecast in a Bloomberg News survey. They increased 2.9 percent in February. To contact the reporter on this story: David Yong in Singapore at dyong@bloomberg.net. To contact the editor responsible for this story: Sandy Hendry at shendry@bloomberg.net .

U.K. Solar Companies Ask Court to Study Huhne Subsidy Review

http://www.bloomberg.com/news/2011-04-19/u-k-solar-companies-ask-court-to-study-government-s-review-of-subsidy.html

Low Carbon Solar U.K. Ltd., Element Power Ltd. and eight others asked a British court to review U.K. Energy and Climate Change Secretary Chris Huhne ’s decision to reexamine solar subsidies. The government in March said it may cut subsidies for bigger solar projects by as much as 72 percent after announcing a comprehensive review in February of feed-in tariffs, or guaranteed prices paid for electricity from renewable sources. The ministry Huhne leads wants to prevent large solar farms from taking money earmarked for rooftop installations. The companies said today in an e-mailed statement that the government had set “clear expectations” that a review wouldn’t take place until 2012, with subsidies changing in 2013. They also said the Department of Energy and Climate Change never disclosed what the trigger would be for an early review. “In pulling back on a commitment to support solar energy, the government will cause the abandonment of hundreds of community-scale schemes,” said Mark Shorrock, chief executive officer of Cirencester, England-based Low Carbon Solar. “The cost of not getting this right now, aside from the government meeting its climate change targets, include the creation of new jobs, a diversified income for farmers and landowners, reduced energy costs for businesses and the provision of more secure and reliable energy.” The energy department said in an e-mailed statement that it will “consider” the judicial review. ‘Sustained Growth’ “We support sustained growth in the solar industry and have proposed measures for consultation that will protect the feed-in tariffs scheme for homes, small businesses and communities,” the department said. After the introduction of the tariffs in April 2010, solar developers including Low Carbon Solar planned to build farms of ground-mounted photovoltaic panels to benefit from the subsidies, sparking England ’s southernmost county, Cornwall, to predict a “gold rush.” While none had been built by February, the government said it feared developers would earn money intended for smaller projects and announced a review of plans for facilities bigger than 50 kilowatts. Judicial reviews in the U.K. examine the decisions of public agencies. While an authority may be ordered to reconsider an action, it may later be allowed to draw the same conclusion provided all procedures are correctly followed. The other companies and individuals making the legal challenge are Alectron Investments Ltd., Juwi Renewable Energies Ltd., Lark Energy Ltd., MO3 Power Ltd, Donald Anderson, Guy Anderson, Kate Kenyon and The Green Company ( Europe ) Ltd., according to today’s statement. The group filed the action in the High Court in London. To contact the reporters on this story: Alex Morales in London at amorales2@bloomberg.net. To contact the editor responsible for this story: Reed Landberg at landberg@bloomberg.net

SNC Lavalin Eyes Energoprojekt, Serbia to Divest Stake, CEO Says

http://www.bloomberg.com/news/2011-04-19/snc-lavalin-eyes-energoprojekt-serbia-to-divest-stake-ceo-says.html

SNC-Lavalin Group Inc. (SNC) , a Canadian engineering, construction and manufacturing company, is among three companies interested in Energoprojekt Holding AD, the Serbian company’s chief executive officer said. Serbia ’s government, which currently controls 33.6 percent of the Belgrade-based Energoprojekt, “does not intend to keep the stake long-term, maybe not even mid-term” and contacts with potential buyers are underway, Vladimir Milovanovic said, naming only SNC-Lavalin as “the biggest and most serious” of potential buyers. “There are many aspects to consider, primarily compatibility of operations and synergy” as SNC-Lavalin and Energoprojekt overlap on some foreign markets, Milovanovic said today at a meeting with investors in Belgrade. Energoprojekt’s core businesses are construction and energy and it runs operations in 22 countries in Europe , the Middle East, Africa and South America. The Serbian company has opened a data room on its performance and activities for potential investors “but we don’t expect that a sale would be completed this year” Milovanovic said. The Energoprojekt Holding comprises seven core and two non- core companies with 2,650 employees in Serbia and in its units abroad. Its other activities include urban planning, industrial development, information technologies, trade, real estate and insurance. The company’s current contracts total 350 million euros ($500 million) and it expects to close new ones this year worth 275 million euros, the CEO said. Energoprojekt’s consolidated sales rose 10.42 percent last year to 228 million euros with pre-tax profit falling nearly 30 percent to 8.74 million euros. To contact the reporter on this story: Misha Savic in Belgrade at msavic2@bloomberg.net To contact the editor responsible for this story: James M. Gomez at jagomez@bloomberg.net

Liverpool's Comolli Is Planning Triple French Swoop, Sun Says: Roundup

http://www.bloomberg.com/news/2011-04-19/liverpool-s-comolli-is-planning-triple-french-swoop-sun-says-roundup.html

The following is a roundup of soccer stories from U.K. newspapers, with clickable links to the Web. Liverpool’s French Foray Liverpool technical director Damien Comolli has identified Lyon goalkeeper Hugo Lloris , Paris Saint-Germain defender Mamadou Sakho and Rennes midfielder Yann M’Vila to bolster the Reds next season, the Sun reported. The trio would cost between 45 million pounds ($73.2 million) and 55 million pounds, the newspaper said. Liverpool would finance the signings by selling players including Alberto Aquilani. The Italian midfielder has spent this season on loan at Juventus a year after joining for 20 million pounds from Roma, the Sun added. Wall Beaten The Football Association may invoice Manchester United for damage to a wall in the Wembley locker-room that occurred after the team’s 1-0 F.A. Cup semifinal defeat to Manchester City last weekend, the Sun said. The newspaper said someone “took out their frustrations” on the wall in the manager’s side of the dressing room during the trip to the London stadium. Ben Arfa Back Newcastle may get Hatem Ben Arfa back from his broken leg for the last three games of the season, the Daily Mail said. The Frenchman has been out since suffering a double fracture following a challenge by Manchester City’s Nigel de Jong in October. Carlo for Madrid? Chelsea manager Carlo Ancelotti could replace Jose Mourinho as Real Madrid coach, the Mail said. Ancelotti is on a shortlist to take over from Mourinho, whose future looks uncertain amid strains with bosses and the Spanish media, the newspaper said. Ancelotti’s own future at Chelsea is also in doubt. The Italian said he doesn’t know if he’ll be coaching the Blues next season. Berbatov Doubts There’s a question mark over the future of Manchester United’s Bulgarian forward Dimitar Berbatov following a poor performance in the F.A. Cup semifinal loss, the Daily Mirror said. Berbatov has a year left on the contract he signed when he joined for a club record 30 million pounds in September 2008. He’s unsure if United will trigger a clause allowing the team to extend the deal by a further 12 months, the Mirror said. Berbatov has been benched in recent matches as coach Alex Ferguson preferred to pair Wayne Rooney with Mexican forward Javier Hernandez. Berbatov will return to the sidelines for tonight’s match with Newcastle as Rooney is returning from suspension, the Mirror added. To contact the reporter on this story: Tariq Panja in London at tpanja@bloomberg.net To contact the editor responsible for this story: Chris Elser at celser@bloomberg.net

Rwandan Government Caps Fuel Prices as Imported Oil Costs Increase

http://www.bloomberg.com/news/2011-04-19/rwandan-government-caps-fuel-prices-as-imported-oil-costs-increase.html

Rwanda capped prices for premium gasoline and diesel fuel at 1,060 Rwandan francs ($1.76) per liter, after a more than 12 percent increase in the cost of imported oil over the past month and a half, according to an e- mailed statement released by the government today. Prices at the pump have risen 14 percent during the year to date due to political instability in the Middle East, Trade and Industry Minister Monique Nsanzabaganwa said at a meeting in the capital, Kigali, on April 17. To contact the reporter on this story: Heather Murdock in Kigali at hmurdock1@bloomberg.net To contact the editor responsible for this story: Agnes Nikoi at anikoi@bloomberg.net

BNY Mellon Profit Climbs 12% as Market Rally Increases Assets, Boosts Fees

http://www.bloomberg.com/news/2011-04-19/bny-mellon-first-quarter-net-climbs-12-as-market-rally-increases-assets.html

Bank of New York Mellon Corp. (BK) , the world’s biggest custody bank, reported a 12 percent increase in first-quarter earnings as a rising stock market lifted assets and the fees for overseeing them. Net income climbed to $625 million, or 50 cents a share, from $559 million, or 46 cents, a year earlier. Analysts had expected the New York-based company to earn 56 cents a share, according to the average of 13 estimates in a Bloomberg survey. “The fee-based banks like Bank of New York have real revenue growth at a time when other banks don’t,” Gerard Cassidy , an analyst with RBC Capital Markets in Portland , Maine , said in a telephone interview before the earnings were released. Cassidy rates the stock “outperform.” Assets under custody and administration rose 14 percent to $25.5 trillion, helping offset earnings from money funds and fixed-income investments that have been hurt by interest rates near zero. Bank of New York Mellon and rival State Street Corp., the third-largest custody bank, together spent at least $4.4 billion on acquisitions over the past year to add assets and expand abroad. State Street, which is based in Boston, said today that first-quarter profit on an operating basis rose 19 percent to $439 million. Net income fell to $466 million, or 93 cents a share, from $492 million, or 99 cents, a year earlier, when earnings were boosted by the sale of securities the bank had previously written down. Expanding Abroad Northern Trust Corp. may post a 0.6 percent increase in profit when it reports earnings at 7:30 a.m., according to the average estimate of 13 analysts. The Chicago-based firm is the fourth-largest custody bank. JPMorgan Chase & Co. in New York is the second-largest. Custody banks earn fees for keeping records, tracking performance and lending securities to institutional investors such as mutual funds, pensions and hedge funds. U.S. firms, the largest in the business, have expanded in Europe , where the market is more fragmented and banks have been selling custody units to strengthen their balance sheets. State Street added the securities-servicing unit of Italy’s Intesa Sanpaolo SpA for 1.28 billion euros ($1.82 billion) in May, Mourant International Finance Administration in the U.K.’s Channel Islands in April of last year, and Bank of Ireland’s investment-management business in January of this year. Bank of New York Mellon bought Germany ’s BHF Asset Servicing GmbH for 253 million euros in August, and acquired Pittsburgh-based PNC Financial Service Group Inc.’s investment- servicing business for $2.31 billion in July. Assets Rise Assets under management rose 11 percent to $1.2 trillion. The money-management unit attracted $31 billion in net long-term deposits. Bank of New York Mellon in March hired Jack Malvey, a former Lehman Brothers Holdings Inc. analyst, as chief global markets strategist. It named BlackRock Inc. (BLK) ’s Curtis Arledge as chief executive officer of its asset-management unit in August, filling a role left vacant when Ronald O’Hanley departed to become president of asset management at Boston-based Fidelity Investments. Revenue rose 8.5 percent to $3.65 billion. Foreign exchange and other trading revenue fell 24 percent to $198 million, driven by lower volatility and declines in fixed-income and derivatives trading, the bank said. Raising Dividends Bank of New York Mellon declined 3.3 percent this year through yesterday, compared with the 0.1 percent decline for S&P’s index of 17 custody banks and asset managers. State Street lost 3.6 percent and Northern Trust fell 7.2 percent. Bank of New York Mellon and State Street raised their dividends last month and announced share buybacks, after the Federal Reserve approved the measures following a review of banks’ financial strength. Both cut their payouts to investors in 2009 after plunging financial markets hurt earnings. The Standard & Poor’s 500 Index, the benchmark for U.S. stocks, has gained 9 percent in the past year, boosting fees of asset managers and custody banks. All three independent custody banks sold preferred shares to the government in 2008 as part of the Treasury’s Troubled Asset Relief Program, an effort to inject cash into the banking system during the worst months of the credit crisis. BNY Mellon received $3 billion, State Street $2 billion and Northern Trust $1.58 billion. The banks repurchased the shares in 2009. To contact the reporters on this story: Charles Stein in Boston at cstein4@bloomberg.net ; Christopher Condon in Boston at ccondon4@bloomberg.net To contact the editor responsible for this story: Christian Baumgaertel at cbaumgaertel@bloomberg.net

Novartis Rises as Profit, Sales Beat Estimates on Generic Lovenox, Gleevec

http://www.bloomberg.com/news/2011-04-19/novartis-first-quarter-profit-falls-on-flu-vaccine-sales-1-.html

Novartis AG (NOVN) gained the most in four months in Zurich trading after first-quarter sales and profit surpassed analyst forecasts on higher revenue from a generic blood thinner and the Gleevec cancer medicine. Net income dropped 6 percent to $2.77 billion from $2.93 billion a year earlier, the Basel, Switzerland-based company said today. Analysts forecast profit of $2.57 billion, the average of eight estimates compiled by Bloomberg in the past month. Sales increased 16 percent to $14 billion, beating the average estimate of $13.7 billion. Novartis, Europe’s second-largest drugmaker by sales, expects new products such as the copy of Sanofi-Aventis SA (SAN) ’s Lovenox and Gilenya for multiple sclerosis to fuel growth in coming quarters as patents start to expire on the company’s best-selling treatments, including Diovan for hypertension. “This is a really strong underlying performance heading into Diovan pressures in 2012,” Gbola Amusa , an analyst at UBS AG in London , said in an interview today. The company’s sales growth is “a standout” in the industry, Amusa said. Revenue gains this year will be “around the double-digit mark” at constant currency rates, the company said, repeating its forecast from Jan. 27. Novartis aims to improve core operating income margin in constant currencies while absorbing price cuts, generic competition and the loss of flu-vaccine sales, according to the statement. Novartis doesn’t forecast earnings. Diovan Competition Profit fell in the quarter as sales of influenza vaccine sank following the end of the flu pandemic last year. The addition of revenue from Alcon Inc. (ACL) , the eye-care company in which Novartis bought a majority stake in August, failed to offset the vaccine drop. Novartis completed the acquisition of the rest of Alcon this month. Novartis rose 1.68 Swiss francs, or 3.5 percent, to 50.30 Swiss francs at the close of Zurich trading. The gain was the biggest since Dec. 15. Before today, the stock had lost 10 percent in the past year including reinvested dividends, compared with a 3.7 percent return for the Bloomberg Europe Pharmaceutical Index. Diovan, the company’s best-seller in 2010 with $6.1 billion of sales, began to lose patent protection in Europe this year and faces generic competition in the U.S. in 2012. The Gleevec cancer medicine, the No. 2 product, will start to face cheaper copies in the U.S. in 2015. Joicela Application Novartis’s efforts to replace lost revenue from Diovan and Gleevec were set back today when the European Medicines Agency said the company withdrew its application to market the Joicela pain pill. The Swiss company wasn’t able to provide information to regulators in the time allowed, the agency said in a statement. The EU filing was the company’s second attempt at re- introducing the drug for osteoarthritis patients who don’t carry a specific genetic marker. The application withdrawal “has nothing to do with biomarkers or genetic tests,” Eric Althoff , a spokesman for Novartis, said in a telephone interview. The group of painkillers that includes Joicela “remain a challenging environment.” Novartis won’t ask EU regulators to approve its LBH589 drug to treat Hodgkin’s lymphoma. LBH589 will continue to be developed for other uses, Novartis said. Generic Drugs Revenue from the Sandoz generic-drug unit advanced 16 percent to $2.3 billion, boosted by $247 million of sales of the Lovenox copy. Novartis and Momenta Pharmaceuticals Inc. (MNTA) began selling the treatment in July after approval by the U.S. Food and Drug Administration. Sales of branded medicines gained 7 percent to $7.8 billion. Diovan generated $1.4 billion in revenue, down 3 percent. Doctors wrote fewer Diovan prescriptions in the first quarter as generic competitors went on sale in Spain , Canada and Brazil. The loss of Diovan sales to generics was not as severe as expected, Chief Executive Officer Joe Jimenez said on a conference call. Competition will increase late in the year when the drug loses patent protection in more European countries, he said. Sales of Gleevec, used to treat the blood cancer chronic myeloid leukemia, rose 4 percent to $1.08 billion. Gilenya revenue totaled $59 million, according to the statement. Sales were “significantly ahead of what we expected,” Jimenez said. More than 6,500 patients in the U.S. are using the drug, which was approved by regulators in September, he said. Gilenya, the first oral medicine approved in the U.S. for multiple sclerosis, costs about $48,000 a year, a price that rivals cancer medicines such as Roche Holding AG (ROG) ’s Avastin. Vaccines and diagnostics sales fell 73 percent to $371 million as pandemic-flu revenue plunged by $1.1 billion. Novartis’s consumer-health unit had revenue of $1.6 billion, up 11 percent from a year earlier. To contact the reporter on this story: Eva Von Schaper in Munich Bureau at evonschaper@bloomberg.net To contact the editor responsible for this story: Phil Serafino at pserafino@bloomberg.net

Syria's Cabinet Endorses Draft Decree to Lift 48-Year-Old Emergency Law

http://www.bloomberg.com/news/2011-04-19/syria-s-cabinet-approves-draft-decree-to-lift-48-year-old-emergency-law.html

Syria ’s Cabinet endorsed a draft decree to lift a 48-year-old emergency law, the main demand of protesters challenging President Bashar al-Assad’s rule. The Council of Ministers also approved draft bills to dissolve the Supreme State Security Court and regulate the right to protest, Information Minister Adnan Mahmoud said today in a televised speech after the Cabinet session. The measures need the approval of the president or parliament to become law, former lawmaker George Jabbour said in a telephone interview. “This will reinforce security and will protect the dignity of the citizens,” Mahmoud said. The draft on the right to protest “is similar to those in place in most countries of the world, particularly in European countries and the United States ,” he said. Syria is the latest Middle Eastern country to be hit by the wave of uprisings that ousted long-time rulers in Egypt and Tunisia , and sparked an armed conflict in Libya. Assad’s regime is an ally of Iran and a power broker in neighboring Lebanon, where it supports Hezbollah, an armed Shiite Muslim group. “The number of deaths and injuries suffered by protesters at the hands of the security forces in the past month has angered and galvanized the opposition to demand much more than the modest reforms they initially wanted, some even calling for regime change,” Chris Phillips, an analyst at the Economist Intelligence Unit in London , said today by e-mail. “Now, the formal ending of emergency law is unlikely to satisfy protesters unless it is accompanied by a marked change in the behavior of the security services.” Protesters Killed Activists said at least 18 protesters have died in clashes in the three days since Assad instructed the Cabinet to make changes aimed at calming dissent. The protests broke out in mid- March, prompting a government crackdown and scores of deaths across the country. Assad ordered his ministers to prepare the legal framework for lifting the state of emergency in a speech on April 16, without referring to other protester demands, including the release of political prisoners. At least 17 protesters died two days ago during anti- government demonstrations in the central city of Homs, home to one of the country’s two oil refineries, and Latakia, Ammar Qurabi, head of Syria’s National Organization for Human Rights , said by phone from Cairo. He said security forces broke up an overnight sit-in Homs early today, causing at least one death. Agence France-Presse put the death toll today in Homs at four. Officers Die The Interior Ministry accused “criminal gangs” of killing a general, his three relatives, as well as a colonel and a soldier in two separate attacks in Homs, according to SANA. Assad must do more to meet the demands of the Syrian people for greater freedom and democracy, U.K. Foreign Secretary William Hague said after the Cabinet approved the draft decree on lifting the emergency law. The move “is a step forward, there’s no doubt about that,” Hague said in an interview with Sky News television today. “He still has much more to do to meet the legitimate aspirations of the people of his country.” Assad’s Baath party regime, which has been in power since 1963, has blamed the violence on terrorists. The Interior Ministry announced today a ban on street protests. “The ministry said it will not be lenient with such terrorist acts and it will work strictly to enhance security and stability all over Syria and pursue terrorists everywhere to bring them to justice,” according to the state-run Syrian Arab News Agency. Nothing Enacted “Banning protests is unconstitutional,” former Judge Haitham al-Maleh, 80, a human-rights activist who was recently released from prison as part of an amnesty, told Al Arabiya television. “No decrees or laws have so far been enacted, so this is all talk for now.” The Cabinet today also studied a series of draft decrees to introduce further reforms, including a new media law to enforce freedoms, Mahmoud said. The Cabinet also looked into draft laws for political parties and local administrations, SANA said. “These strategic draft decrees come within the framework of political reform that will help build democracy and increase the participation of citizens,” SANA said. The government studied a draft law that would employ 10,000 degree-holders in public institutions every year, it said. Government concessions don’t seem to satisfy protesters who always “want a bit more,” Theodore Karasik , director of research at the Dubai-based Institute for Near East and Gulf Military Analysis, said today in a phone interview. Allegations of Torture At least 130 people have been killed in the unrest that started in mid-March, according to Human Rights Watch. The New York-based organization has said Syrian forces have tortured protesters and that it is impossible to verify how many remain in detention. Activists say the number killed exceeds 200. The turmoil has posed the most serious challenge to Assad, who inherited power from his father 11 years ago. He has accused foreign-led conspirators of taking advantage of the unrest to undermine Syria, mostly due to its support for anti-Israel groups. Assad issued a decree on April 14 approving a new government under former Agriculture Minister Adel Safar, after the protests intensified. To contact the reporters on this story: Massoud A. Derhally in Beirut , Lebanon, at mderhally@bloomberg.net ; Nayla Razzouk in Amman at nrazzouk2@bloomberg.net ; Inal Ersan in Dubai at iersan@bloomberg.net. To contact the editors responsible for this story: Andrew J. Barden at barden@bloomberg.net ; Shaji Mathew at shajimathew@bloomberg.net .