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LONDON (AFP) – The euro sank under 1.33 dollars for the first time in two months, Spanish borrowing rates rose and European stocks recovered on Wednesday amid spreading eurozone debt concerns and Korean unrest.

In London morning trade, the single currency dropped to 1.3285 dollars -- the lowest point since September 22 -- before rebounding back above 1.33.

London's benchmark FTSE 100 index climbed 0.72 percent, Frankfurt's DAX 30 rose 0.92 percent and in Paris the CAC 40 gained 0.50 percent a day after heavy losses.

However the Dublin market fell 0.60 percent as investors awaited details on Ireland's latest public spending cuts due at 1400 GMT.

Portugal, also seen at risk over its public finances, was embroiled in a general strike against austerity measures.

Increasing concerns over the eurozone were highlighted on Wednesday when the rate Spain must pay to borrow for 10 years jumped to above 5.0 percent for the first time since 2002. It also reached a record wide gap above the key eurozone German rate -- of 2.51 percentage points.

The Madrid stock market gained 0.41 percent in morning deals, reversing losses seen earlier Wednesday.

Markets are worried that Ireland's debt troubles will spread to Portugal and Spain, and are also concerned about tensions between the two Koreas.

"German Chancellor (Angela) Merkel has described the situation in Europe as 'exceptionally serious' and we don't think this is an exaggeration at all with the financial markets indicating zero confidence in the authorities' ability to stem the contagion in the eurozone debt markets," said Derek Halpenny, European head of global currency research at The Bank of Tokyo-Mitsubishi UFJ.

Merkel said on Wednesday the European Union should set limits on markets and ensure that private investors bear some of the risk on government bonds.

"Do politicians have the courage to also make those who earn a profit take some of the risk?" Merkel said in a speech to parliament. "This is about the primacy of governments, about setting limits on markets."

Germany wants a new rescue mechanism for eurozone countries from 2013 to ensure that private investors, not just taxpayers, bear part of the costs of bailouts.

The proposal has seriously rattled markets and also some other European governments, making for tough negotiations ahead of a summit of the bloc's leaders in mid-December.

With its banking system in dire straits and its budget deficit forecast to be 10 times the EU limit this year, Ireland became on Sunday the second eurozone member in six months to apply for a bailout after Greece.

"We have said that the stability of the euro as a whole must be guaranteed and therefore we will ... consider the appeal of Ireland positively," Merkel said on Wednesday.

Analysts at the Capital Economics consultancy believe that the "eurozone fiscal crisis will become too big to resolve harmoniously".

Germany appears to be saying it will provide more bailout support when a current rescue scheme expired but on the condition that private investors take some of the pain.

"If Germany doesn't get such an agreement from other member states or else simply decides it has had enough of providing support to weaker countries, it may decide to cut its losses and leave monetary union," Capital Economics analysts wrote in a research note.

On the other hand, if Germany "does get what it wants, then other countries might not like the consequences," one of which would be permanently higher borrowing costs, and "might then to choose to leave (the eurozone) themselves", they added.

The European single currency's level on Wednesday compared with 1.3364 dollars late in New York on Tuesday.

Earlier this week, the euro had briefly spiked above 1.37 dollars on relief over the Irish bailout news. However, it has since shed almost three percent so far this week on mounting eurozone debt concerns.

Later on Wednesday, beleaguered Irish Prime Minister Brian Cowen will present a four-year austerity plan tied to the bailout, which will reportedly total 85 billion euros (114 billion dollars). Analysts are concerned that passage of a vital budget on December 7 could be compromised by pressure for an immediate general election.

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LONDON (AFP) – Stocks rose in opening trades on Wednesday after tumbling a day earlier on a sharp spike in tensions between the two Koreas and eurozone debt worries.

The benchmark FTSE 100 index climbed 0.49 percent to 5,608.50 points after shedding 1.75 percent on Tuesday.

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Now rolls will work with Airbus and three airlines fly the A380 with its Trent 900 engine replacement part.

UK manufacturer has refused to say what kind of component were wrong on the defective part Sydney.La Qantas flight caused a leak of oil which then leads to the "liberation" of a disc turbine, causing the explosion.

Investors welcomed the clarification, sending shares of rolls up to 27 p 611, return of the United for ￡ 1 in value lost society levies after engine failure 4 novembre.Cependant, actions are still lower than the closing p 654.5 on the eve of the failure.

Rolls said the cost of dealing with failure engine meant growth of revenues for the year would be "slightly lower" 5mC 4pc increase forecast in July.

Sales of engines to the marine and defence customers "mitigate" some of the costs, the company said.

Airbus said fixing faulty engine part could cause delays in the A380 deliveries next year, adding to the difficulties of the manufacturer to obtain the widebody aircraft until a cost-effective production rate.

"We regret the disruption we caused," said Sir John Rose, Executive Director of rollers."Safety is the priority of Rolls-Royce.We have instigated a programme of measures in collaboration with Airbus, Trent 900 customers and agencies réglementation.Cela allow customers progressively to all fleet to service.?

Sir John is due to resign in March after 15 years as Chief Executive.

Friday, Singapore Airlines released three ordering anchored there and Qantas has stated that it expects to have his flight six command still within days.

""It is pleasant to the issue of Trent 900 was restricted and may be set for what appears to be a relatively modest cost,"said analysts Investec.Mais disappointment short-term fell orientation.Il is difficult to assess the long-term reputation damage.

EADS, the parent company of Airbus, has raised its forecasts for 2010 by 10pc Friday, operating income after reported 88pc third quarter profit increased to 378 million euros (￡ 320 m).

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