That stock News

HONG KONG (AFP) – Brazil's Vale will make its trading debut in Hong Kong Wednesday, the first South American firm to list on the city's bourse, as the mining giant sets its sights on the massive Chinese market.

Sao Paulo-based Vale, the world's second-biggest mining firm, has said it would list about 652 million common shares and class A preferred shares in the financial hub. The firm is not raising new money.

Vale shares will be traded in the form of Hong Kong-dollar depositary receipts, which mirror the miner's stock, the company said.

The firm, which has a market capitalisation of about 176 billion US dollars, is also traded in Brazil, New York and Paris.

Asia accounted for more than half the company's 23.31 billion US dollars in sales last year, with China responsible for almost 38 percent of turnover and the rest of the continent another 19 percent.

"A secondary listing in Hong Kong is a significant step in raising our profile in, and demonstrating our commitment to, Asia," Vale said in its listing prospectus.

The firm was looking to Asia as the region spends heavily on infrastructure projects, including building new airports and roads, chief financial officer Guilherme Cavalcanti said at a press briefing Sunday.

"This will increase demand a lot for minerals, including iron ore," he said.

Vale, the world's largest iron ore producer, has previously said it would spend 24 billion US dollars starting from next year to finance operations, research and development, and carry out projects.

Cavalcanti said Vale had no plans to raise new money in Hong Kong, but added that there was "always a possibility in the future".

Companies are increasingly looking to Hong Kong as a gateway to the Chinese capital market, with Russian mining giant UC Rusal raising 2.2 billion US dollars in Hong Kong earlier this year.

Rusal was the first Russian company to list on Hong Kong's exchange.

In May, cosmetics group L'Occitane became the first French company to list in Hong Kong, after an initial public offering raised 704 million US dollars to fund an aggressive expansion in China, Japan and other emerging markets.

Hong Kong's bourse is on track to lead the world in initial public offerings in 2010, raising about 51.49 billion US dollars as of Thursday, according to figures from Dealogic.

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LONDON (AFP) – London's main stock market tumbled at the start of trading on Friday amid increased investor worries about eurozone debt.

The FTSE 100 index shed 1.26 percent to 5,742.12 points in early deals.

Asian stocks closed sharply down on debt fears and also owing to possible further measures by Beijing to restrain a surging economy, traders said.

Shanghai's Composite index ended down 5.16 percent at 2,985.44 points, with across-the-board profit-taking after Chinese inflation data showed inflation roaring ahead of central bank targets, raising expectations of a rate hike.

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Forecasts solid growth during the five weeks between 29 November and January 2 comes as a relief for retailers who feared that the holiday season would be washing photo: PA

The growth in sales will be just below the 3 2pc growths on the High Street last Christmas, according to a report from BDO, Accounting Office.

Forecasts solid growth during the five weeks between 29 November and January 2 comes as a relief for retailers who feared that the holiday season would be washing as shoppers hold because of concerns on household budgets.

BDO stated that although this Christmas far from bumper, it is expected to attract relatively heavy consumer spending.

"It may sound a cliché but always Christmas comes every year and consumers spend pretty much always more each year regardless of the State of the economy."Even in 2008 after the collapse of the Lehmans and financial collapse which saw the sales fall the proverbial cliffs in the fall, consumers still relatively strong past Christmas, "the company said."

BDO has added the consumption economy was warmer than many imaginary observers that it would be in 2010. " 2010 has felt like a bit of a strange war.In the year consumer has largely been sheltered from the effects of the slowdown due to low interest rates and thus ch?mage.Par retail spending levels constraints have worked much better than expected, "he said."

Shoppers same will aim to maintain their current levels of expenditure in 2011, despite a hardening of the landscape économique.BDO said that British shoppers will attempt to avoid the "phantom twin" higher taxes and reduced government spending push them to give up their way of life in 2011.

In the meantime, PricewaterhouseCoopers (PWC) research predicts that January 17 5pc to 20pc VAT increase will lead to a reduction in spending next year, but only by 0 2pc autour for consommateurs.John Hawksworth, Chief Economist, PWC, said that the increase is likely to reduce the volumes of sales of non-food products.

PWC estimates that the increase in VAT could increase global inflation by a little more than 1 percentage point to 2011 compared to what would have otherwise been the cas.M.Hawksworth said: "the first effects of the year would tend to fade with the passage of time...""After five years, the net effect of the increase in VAT on the level of output and employment would close to zero".

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By DAVID K. RANDALL, Associated Press Business Writer David K. Randall, Associated Press Business Writer – 36?mins?ago

NEW YORK – Stock futures are pointing to a lower start for the week after major market indicators finished last week at their highest levels in more than two years.

With no major economic reports scheduled for Monday, traders will likely take a second look at a rally that has pushed market indexes to levels not seen since Lehman Brothers collapsed in September 2008. The Dow Jones industrial average climbed 2.9 percent last week, while the broad Standard and Poor's 500 index rose 3.6 percent.

Ahead of Monday's opening, Dow Jones industrial average futures are down 12, or 0.1 percent, to 11,364. Futures for the Standard and Poor's 500 index are down 2.1, or 0.2 percent, to 1,219.50, while Nasdaq 100 futures are down 6, or 0.3 percent, to 2,178.75.

Stocks have risen in recent weeks on better-than-expected corporate earnings reports and the introduction of a bond-buying program by the Federal Reserve that is intended to stimulate the economy. The central bank announced last week that it plans to buy $600 billion in Treasury bonds until the middle of next year in an effort to drive interest rates lower and spur spending.

The dollar is up 0.6 percent against a broad basket of currencies. The euro fell 1.1 percent from recent highs, trading at $1.39 after reaching $1.40 at the close of trading on Friday.

Overseas markets were mixed. The Euro Stoxx 50, an index that tracks companies in Europe, is down 0.2 percent. China's benchmark Shanghai Composite Index rose 1.0 percent.

Before the market opened, Chrysler announced that it will raise its full-year profit forecast despite losing $84 million in the third quarter. That loss was smaller than the $172 million the company lost in the second quarter. The company said a new version of its Jeep Grand Cherokee drove new sales. Chrysler has been managed by Italian automaker Fiat SpA since it left bankruptcy protection last year and is expected to announce an initial public offering in 2011.

Traders will get a better indication of consumer spending later in the week as several major retailers announce earnings. Kohl's Corp., Macy's Inc. and J.C. Penny Co. Inc. will release their third-quarter earnings starting Wednesday. Retailers such as The Gap Inc. and Macy's rose more than 8 percent last week on better-than-expected October sales that suggest that consumers will increase their spending this holiday season.

Leaders from the Group of 20 industrialized and developing nations will meet Thursday and Friday in Seoul. Tensions have risen between the group regarding trade imbalances and the respective strength of the Chinese yuan and the dollar. Officials from several countries have criticized the Fed's bond-buying program amid concerns that it will spark asset bubbles in emerging economies.

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GDP figures for the third quarter of Tuesday are another step towards this time.

A week ago I said constitute a threat to coalition collective determination to push through with the reductions.

But when I, as most of the "experts" in the city think economic growth would be tantamount to 0.4pc.Le 0 real 8pc was a piece of good news surprise. But there were in small print other reasons to rebuild confidence.

The quarter development, growth is more strong, which implies a positive momentum for the end of the year .Construction and Government services provided number of catchy titles, but recovery is wider than just these two sectors will be obviously affected by the slowdown in public spending next year. Do not take into account these two still output growth 2 6pc in the year through September.

And after it was as deep as the beginning of the 1980s recession, with a peak at the decline of 6 5pc, this last recession pit saw much faster recovery.

We are now in 3 9pc our economic summit in the first quarter of 2008. At the same point in the cycle in the 1980's we were still 4 low 4pc.

We will therefore make a good start to the recovery.But that needs now economy are the policies that will ensure momentum was lost step - policies that encourage the creation of businesses and jobs, not deterred by footling and myopic fees regulations.

These job losses are not what they seem

But what about reductions?Certainly, the reduction of public spending ￡ 81bn still threatens us knock off course.Remediation of finance public current required is a pain but will not fatal.As we know, social assistance payments will be a large part of the savings and so-called transfer payments do not directly feed in the same way with the wage sector public.De PIB.De figures clearly with 490 000 jobs should go, which must have an indirect effect on other sectors as consumption is undermined.

But how many of these job losses will actually sweat as compulsory redundancies - the kind of brutal slaughter people are fearful and what happens?

If you assume these losses of employment fall within four years of barely more than 120,000 per year and then take on outsourcing saving money from private sector providers contracts could absorb approximately 50 000 per year.But it is much more than public sector managers can do before taking an axe to the permanent staff.There are consultants and temporary staff who is not replaced at the end of their contrat.Il is voluntary redundancies and natural attrition staff people retire.Productivity can be increased by cracking down on rates of absenteeism and staff will leave voluntarily prospects improve private sector and become less attractive in the State sector.

It is too simplistic to assume that the savings identified in the active population simply convert a similar number of newly unemployed.

ARM raised to build workforce we need

If you want to have other reasons to feel more confident and then search for the business sector.

Particularly noticeable yesterday that Sir Martin Sorrell, Chief Executive of advertising and marketing giant WPP, said that his company had just his highest since 10 ans.Il joins other advertising on a more positive tone - an important plomb.Mais then indicator frameworks we have quarter saw results of ARM Holdings, Cambridge Semiconductor .Ses database designer results have been extremely strong leading to tell the city increase their prévisions.Mais analysts I was most struck by the fact that MRA employs more than people-10pc in the world and 15pc here.

It comes to software engineers, exactly the kind of job, we need to help us to build a sustainable future and brillant.Oui, there are reasons of prudence.Il are several reasons why we can begin to rebuild our confidence too.

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Shares trade IRAP of exchanged conditionally on the grey market until Wednesday, when the share certificates will be available and treat official begins.

Betfair shares were offered to ￡ 13 yesterday morning, valorisation Betfair with ￡ 1. 39bn, but ended the day more than 1550 ￡ 250 p.

While most large shareholders of Betfair, including founder Edward Wray and Andrew Black, who had developed 10pc of their stock in the lost float outside of these gains, makes the value of their much higher remaining issues.

The company says that the main objective of its stock list is not to raise new funds but to give him a currency to make redemptions of shares and allow it to gain more credibility in foreign markets where the mark is unknown.

However, owners of Betfair triggered 211 m ￡ in the IPOs of yesterday. Mr. Wray means making ￡ 18. 9 m and Mr. Black ￡ 16.6 m of flotation, if an overallotment option is exercised aussi.Ils will then have 10 7pc piles and 10 2pc respectively.

"Betfair may be just what the doctor ordered for market of United Kingdom, which badly need a dose of confidence, said David Wilkinson, head of the Agency to Ernst & Young at the United Kingdom."Companies looking to float pipeline remains strong, but many British companies are retaining until reduce volatility and improve évaluations.La mounted Pope, everyone waits is unlikely to appear in the middle of the year 2011 and 2012.?

Betfair is also a blow of Goldman Sachs, who acted as a sponsor joint with Morgan Stanley.Goldman put on the market in July, in a tank that further than once the offer price strikethrough to 180 p.Ensuite Ocado IPO shares fell 7pc on their first day of trading and are now at 137.2 p.

Floats that were completely this year include the string mode New Look, Merlin Entertainments, the owner of Alton Towers and Travelport.

"Betfair is a rare moment in what should be an otherwise quiet end 2010 for the IPOs in UK, brilliant", said Mr. Wilkinson Ernst & Young.

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In the note, the evolution explained that if the "finished UK" 9pc, Barclays would have just a small capital top-up - less than ￡ transmitters. But if "Finished UK" is 10pc, Evolution has been calculated that capital deficit would be ￡ represents.

Mr. De Frias Marques said that it was because it was calculated that, by 2012, Barclays should have basic T1 lowest United Kingdom-8 7pc.

He then applied the question: what are the options?"A matter of rights, a token, an agreement - or possibly all of the above dividend", he concluded.

Evolution has lowered his price target on Barclays 260 p and named the Bank as his "selling high conviction page".Barclays, rallying, 5 to 285 p after several days of heavy selling.

Furthermore, the Royal Bank of Scotland edged 1.1 46.4%.

The FTSE 100 dropped points 5703.37 23.84 and FTSE 250 throw 10833.51 49.15 points.

In the mining sector, Xstrata has 30?p to ￡ 13.11 as Benny Levene, principal legal adviser, sold 102,097 shares at a cost of ￡ 12.95.Kazakhmys also discard 33 percent to ￡ Manitoba and Antofagasta lost 6% to ￡ 8.64 base metals price is lower for intra-day trade.

Old mutual has been the largest Faller after 9-p 653.3, it appeared to HSBC, is a backup of the insurer's Nedbank Division agreement. Old mutual fell 6.9% 138.3

Some oil producers were in the pot black, as the price of crude oil fell below $83,000 per barrel.Cairn Energy tempered 11.4-429 p.

SAB Miller is removed from 20.59 24?p ￡ is nervous about the beer market as Nomura said American taking into account the high expectations and see winds in the short term the company.

Insurance companies have been traders favor became more risk averse.Standard Life lost 7.6-227 p and RSA insurance fell 4.4 131.8%.

British land slipped 1 504?p despite of Morgan Stanley, reiterating its "overwreight" rating. ""We believe that it likely that these investors focused on revenue was driven up prices on the part of the IHT in other countries will increasingly focus on United Kingdom in General and in particular, British land" said Bart Gysens, an analyst at Morgan Stanley.

Rolls-Royce has received an upgrade from Goldman Sachs to "buy".Long Tome on the aerospace sector, the broker said that it considers that the case of investment for the group is "convincing" because the company will be double its turnover over the next decade and the recovery in the civil aerospace market is expected to stimulate EBITA in 2011 .Rolls-Royce has between 5 and 6 years of currency hedging rates good, suggesting that the volatility of foreign currencies on the spot market is not a concern, said Goldman Sachs .Rolls-Royce has increased by 7 635 p.

BT Group topped ranking after he said he had signed a memorandum of understanding with the Government and all its contracts remain in place.The upper 147.4 p 4.2 meeting actions.

ITV has rallied to 3? 66?p on an optimistic note of Morgan Stanley.Le broker upgraded its media & view internet industry of "online" to "interesting" that she thinks advertising will remain strong in 2011, structural problems are receding and activity undertaken in a cash-rich area looks set to pick up.

Patrick Wellington, an analyst at Morgan Stanley, said that it was a buyer of ITV because growth prospects in 2011 advertising are a good thing. ""We are now more optimistic about the prospects for sustained growth of advertising in the United Kingdom in 2011, based on the enlargement of the resumption of advertising in the second half of 2010, with a number of new sectors (telecoms, finance, autos) now contributing", he said.

Hansen Transmissions International has 3? climbed to 49?p after that he received an offer of Sumitomo Heavy Industries EUR 75 million for its industrial division of gearbox and become a pure renewable energy company.

However, salamander energy slumped 39.9 230 percent following announcement that Dambus-1 to the PSC's Kutai Indonesia, offshore exploration has been plugged and abandoned after seeing hydrocarbon volumes "thought to be sub-commercial".

Faroe Petroleum dragged 4? 192?p despite developments raise his price target to 210 p 160 p.Après that company arranged a visit of analyst in Oslo last week, the evolution has said: "ultimately we believe that the company seeks to work up to discoveries... sell and serve the product in the production of goods in order to obtain a critical mass in which advanced the company is sold."

He was exposed on the market that Kurdish Explorer Gulf Keystone, 1? to 143?p, tries to raise 100 m ￡ via placement or the issue of rights pitching 140 p a share.

Diageo was under pressure Thursday, in the middle of the conversation renewed, that is you align an LVMH Mo?t Hennessy Division blockbuster bid.

LVMH is supposed to be willing to acquire Hermes can unload its Mo?t Hennessy Diageo unit to finance the operation, said traders.

Diageo knows Mo?t Hennessy, although he owns a stake in the division.Diageo 33pc fell 11-￡ 11.24%.

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