Business News: New Rules May Slow Charitable Gift-Giving

Dec. 24 (Bloomberg) -- Paris’s Charles de Gaulle airport, Europe’s second-busiest, plans to cut flights by 50 percent through 1 p.m. today because of a shortage of antifreeze and forecasts for more cold weather.

The airport hasn’t got enough glycol liquid, France’s Ministry of Ecology, Sustainable Development, Transport and Lodging said in an e-mailed statement late yesterday. Dublin’s airport is operational after snow forced a shutdown yesterday. Airfield temperatures dropped as low as -10 degrees Celsius (14 degrees Fahrenheit), according to a statement on its website.

Major U.K. airports and Frankfurt were operating near- normal services after snowstorms and cold weather caused travel disruptions across Europe in the lead-up to the Christmas holidays. Southeast England will be dry today, while there will be light snow in Paris and heavy falls in Munich, according to forecasts on the U.K. Met Office’s website.

French Transport Minister Thierry Mariani and Environment Minister Nathalie Kosciusko-Morizet planned to visit Charles de Gaulle airport at 12:15 a.m. to assess disruptions caused by the weather, the government said in an e-mailed statement. Mariani said yesterday that the treatment of passengers at the airport had been “unsatisfactory” in comments made on RMC Radio.

Air France has canceled “many” short and medium-haul flights from Charles de Gaulle today, according to its website. Long-haul flights and services from Orly airport are unaffected.

Heathrow, Gatwick, Glasgow and Edinburgh airports are all open, according to their websites. They all said that passengers should expect some knock-on delays and cancellations as a result of the recent weather conditions.

BA Flights

British Airways Plc, the U.K.’s biggest carrier, plans to fly all scheduled long-haul flights out of Heathrow today, and most inbound long-haul services, according to a statement on its website. The carrier is also hiring planes and putting larger aircraft on European routes to move more passengers, it said.

The U.K. will likely experience “very cold” weather, with snowstorms mostly confined to the east and west coasts, according to a Met Office forecast.

Eurostar Group Ltd., the operator of trains through the Channel Tunnel, said on its website that it’s planning to operate a “near normal” service. Only passengers with valid tickets for travel should go to the station, it said.

Fraport AG, operator of the Frankfurt airport, said on its website that the situation has “improved significantly” allowing it to offer travelers normal pre-night check-in.

Deutsche Lufthansa AG, Germany’s biggest carrier, ran a regular schedule at Frankfurt yesterday, it said on its website. The carrier is running all scheduled flights, aside from a few weather-related exceptions.

--With assistance from Laurence Frost and Matthew Campbell in Paris and Chris Spillane in London. Editors: Neil Denslow, Ben Livesey

To contact the reporter on this story: Blanche Gatt in London at bgatt@bloomberg.net

To contact the editor responsible for this story: Neil Denslow at ndenslow@bloomberg.net

Oil Consumers Grow Wary as Some OPEC Members Target $100 Crude

Posted: 24 Dec 2010 05:10 AM PST

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By Ola Galal and Lananh Nguyen

Dec. 24 (Bloomberg) -- Oil importers are growing wary of the impact of prices near two-year highs as some OPEC members foresee a further rally to the $100-a-barrel level and Arab oil ministers gather for a meeting in Cairo.

Japan’s economy minister said today the government needs to keep an eye on climbing prices while the deputy governor of the Chinese central bank said inflation pressures are rising.

Shokri Ghanem, chairman of Libya’s National Oil Corp., was the latest OPEC official to forecast $100. Iran and Venezuela have also said that represents a fair price while Saudi Arabia, the group’s biggest exporter, said it prefers prices centered on $75, a level that oil has traded above since September.

“An issue for OPEC will obviously be prices edging higher,” said Bill Farren-Price, chief executive officer of Winchester, U.K.-based consultants Petroleum Policy Intelligence. “The issue is whether we’re in a new rally and for now the jury’s out on that. And I don’t think anyone in OPEC would disagree with that.”

Brent crude oil on London’s ICE Futures Europe exchange advanced 21 percent this year, and traded today as high as $94.74 a barrel. Crude oil futures on the New York Mercantile Exchange gained 15 percent so far this year.

Ghanem, Libya’s top oil official, told reporters yesterday that oil will rise to $100 a barrel. He was speaking in Cairo before a meeting tomorrow of the Organization of Arab Petroleum Exporting Countries. OAPEC, as the Arab group is known, includes several members of the Organization of Petroleum Exporting Countries, the broader 12-nation group that influences prices by setting supply quotas.

Japan, China

Japan, the world’s third-largest oil consumer after the U.S. and China, is monitoring rising crude and gasoline prices, Economy Minister Banri Kaieda said today.

“I’ve realized myself that it’s becoming very expensive,” Kaieda said at a media conference in Tokyo. “We need to keep an eye on this. It’s unlikely this trend will continue.”

Japan depends on oil imports for almost all of its needs. Five Middle Eastern OPEC nations supplied about 77 percent of Japan’s crude purchases last year, according to U.S. Energy Department data.

China’s central banks said inflation pressures are rising and inflation expectations are still strong, according to a statement posted to the People’s Bank of China website today citing Deputy Governor Hu Xiaolian.

OAPEC was established in 1968 to foster the development of the petroleum industry in member states as part of an economic integration plan among Arab countries. It contains seven nations that are also within OPEC.

June Meeting

OPEC, which accounts for 40 percent of global oil supply, decided at its last meeting in Quito, Ecuador, on Dec. 11 to maintain its production target of 24.845 million barrels a day, set in 2008. OPEC’s next formal meeting is scheduled for June 2011.

Market conditions will determine whether OPEC decides to increase production quotas next year, Ghanem said, without specifying a timeframe. Ghanem said today he’s “not happy” with OPEC’s quota compliance, urging fellow members to adhere better. Members are achieving about 60 percent of a pledged 4.2 million barrel-a-day supply reduction, he said.

Libya, Saudi Arabia, Qatar, Kuwait, Iraq, the United Arab Emirates and Algeria are all members of both OPEC and OAPEC.

Demand Rising

“Demand is picking up, there’s an uneven global economic recovery and while that doesn’t mean everything is plain sailing, people believe the market is moving in the right direction,” Farren-Price said.

Global oil consumption is expected to rise to a record level next year, according to the Paris-based International Energy Agency and other forecasters.

Saudi Arabian Oil Minister Ali al-Naimi arrived in Cairo today without commenting to reporters. He said in Quito on Dec. 11 that oil at $70 to $80 a barrel is a good price, that the market is stable and supply and demand are in balance, while Kuwaiti Oil Minister Sheikh Ahmad al-Abdullah al-Sabah said then that he was satisfied with prices near $90.

Qatar’s Oil Minister Abdullah bin Hamad al-Attiyah has said oil in the $80s is best for producers and consumers. Algerian Oil Minister Youcef Yousfi said at a conference in Doha on Dec. 1 that the market is in a “normal situation” and prices are likely to be stable for months.

Some Wall Street strategists expect prices will return to $100 for the first time in two years during 2011 amid rising global demand, including Goldman Sachs Group Inc., Morgan Stanley, JPMorgan Chase & Co. and Bank of America Merrill Lynch.

--With assistance from Aki Ito in Tokyo, Grant Smith in London and Marek Strzelecki in Warsaw. Editors: Stephen Voss,

To contact the reporter on this story: Ola Galal in Cairo at ogalal@bloomberg.net Lananh Nguyen in London at lnguyen35@bloomberg.net

To contact the editor responsible for this story: Stephen Voss at sev@bloomberg.net

Kan to Keep Japan Bond Sale Cap in Record 2011 Budget

Posted: 24 Dec 2010 05:09 AM PST

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By Toru Fujioka

(Updates with analyst quote in the fourth paragraph.)

Dec. 24 (Bloomberg) -- Japanese Prime Minister Naoto Kan plans to cap new bond sales at 44.3 trillion yen ($534 billion) in 2011 to finance a record budget as he tries to spur corporate demand and bolster growth.

The country’s budget will climb to 92.4 trillion yen in the year starting April 1, according to a proposal approved by the Cabinet in Tokyo today. Kan has pledged to keep bond sales unchanged for three years to curb the industrialized world’s largest debt burden.

Kan’s budget juggles the need to stimulate demand in an economy hit by the yen’s climb to a 15-year high and deflation, and bring down a debt burden about twice the size of gross domestic product. Increasing the sales tax to improve Japan’s finances may not be feasible because it may risk a further decline in his popularity, Nikko Cordial Securities Inc. said.

“Given the political situation, it will be difficult for Kan to discuss a sales tax increase,” said Hidenori Suezawa, chief strategist at Nikko Cordial Securities in Tokyo. “There’s no doubt the government will have a tougher time compiling the budget next year as social-security costs swell and it runs out” of revenue sources.

Japan’s economy is expected to contract this quarter as government stimulus measures that bolstered spending expire and the strong yen threatens exporter profits. The government said this week it was forecasting growth to slow to 1.5 percent next fiscal year from 3.1 percent.

Job Cuts

JVC Kenwood Holdings Inc., a Japanese maker of audio equipment, video cameras and televisions, said today it plans to eliminate 500 jobs at its Victor Japan unit because the yen’s appreciation and Asian competition have reduced revenue.

The yield on the benchmark 10-year bond rose to 1.16 percent at 6:56 p.m. in Tokyo. The yen traded at 82.90 as of 6:57 p.m. It has dropped 2.9 percent against the dollar from a 15-year high of 80.22 reached Nov. 1.

The government also said today it plans to add 5 trillion yen to a 145 trillion yen reserves pool set aside for currency intervention, after Japan sold yen for the first time in six years on Sept. 15.

Japan’s primary deficit narrowed to 22.7 trillion yen from 23.7 trillion yen, the Finance Ministry said, equivalent to about 4.7 percent of GDP. Kan wants to post a primary balance, which can be achieved when revenue matches spending, excluding bond sales and interest payments, by 2020.

Shrinking Revenue

The government expects new bond issuances will exceed tax revenue of 41 trillion yen for a second consecutive year. Japan’s receipts from levies have shrunk more than third after peaking at 60.1 trillion yen in 1990.

Sales of all bonds and notes including those rolling over maturing debt will rise to 144.9 trillion yen next year from 144.3 trillion yen, according to the proposal. Nikko’s Suezawa said the amount of bond sales was within expectations and will have limited market impact.

Kan will submit the budget bill to parliament, where it’s almost certain to be approved because his ruling party controls the more powerful Lower House.

Lack of Leadership

The premier tapped some 7 trillion yen from unused accounts and reserves to pay for the plan, including money from a foreign-exchange reserves account and accumulated funds belonging to a government-affiliated railway agency. Finance Minister Yoshihiko Noda has said the government needs to find a more sustainable source of funds.

“Such extraordinary debt and low tax revenues obviously point to the need to raise levies, especially sales tax,” said Yoshiki Shinke, senior economist at Dai-Ichi Life Research Institute in Tokyo. “The real obstacle is a lack of political leadership.”

The ruling Democratic Party of Japan lost ground in mid- term elections in July after Kan proposed increasing the nation’s 5 percent sales tax to restore finances. Kan’s Cabinet approval ratings fell to 21 percent, the lowest since taking the office in June, the Asahi newspaper reported on Dec. 13.

To meet Kan’s budget guidelines, the DPJ abandoned its pledge of doubling childcare handouts to households, limiting the increase to families with children under three-years old.

‘Worrisome’ Initiatives

Yoshimasa Hayashi, a lawmaker of the opposition Liberal Democratic Party, said Kan’s spending plans are increasing the risk of a bond market collapse and his Cabinet needs to implement more aggressive measures to restore the nation’s fiscal health. “There are many worrisome spending initiatives” in the budget proposals, he said in a Dec. 20 interview in Tokyo.

Japan’s bond yields are the lowest in the world, according to data compiled by Bloomberg covering 32 markets. About 95 percent of holders are domestic investors. A total of 908.8 trillion yen of Japanese government bonds are outstanding, making the country the world’s largest debt market.

Japan is one of four advanced economies along with Greece, Italy and Portugal, facing the biggest risk of needing drastic budget cuts to avoid uncontrollable increases in debt, according to an IMF report in September.

The nation’s aging population is also putting strains on its coffers. Social-security expenses, which have increased more than 60 percent since 2000, will account for 53 percent of general spending next year. Households receiving welfare payments rose to a record 1.4 million in September since the data were compiled in 1951, according to the Welfare Ministry.

No Good News

The Japanese government has said it plans to lower corporate taxes by 5 percentage points next year to stimulate business investment and employment without securing funds to fill about 1.5 trillion yen of revenue losses. That may be a sign that Japan is loosening its commitment to reduce its debt, said Azusa Kato, an economist at BNP Paribas in Tokyo.

“I have to say Japan’s fiscal risk is increasing considering the budget proposal and tax guidelines,” Kato said. “It’s very hard to find good news.”

--With assistance from Keiko Ujikane, Aki Ito and Adam Le in Tokyo. Editors: Lily Nonomiya, Ken McCallum

To contact the reporter on this story: Toru Fujioka in Tokyo at tfujioka1@bloomberg.net

West Africa Gives Ouattara Control of Ivory Coast Cash

Posted: 24 Dec 2010 05:09 AM PST

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By Franz Wild, Pauline Bax and Olivier Monnier

(Updates with comment from Aberdeen Asset Management in 10th paragraph.)

Dec. 24 (Bloomberg) -- The Central Bank of West African States recognized Alassane Ouattara as Ivory Coast’s president, giving him control over state reserves previously governed by Laurent Gbagbo.

The seven finance ministers of the member states except Ivory Coast backed Ouattara at a meeting in Guinea-Bissau yesterday after the United Nations, the African Union and the Economic Community of West African States supported him as the winner of the Nov. 28 election, the central bank, or BCEAO, said on its website today. Gbagbo has rejected international calls to step down as the leader of the world’s top cocoa grower.

The finance ministers decided to “only allow the rightfully appointed representatives of the legitimate government of Ivory Coast to carry out any transactions on the accounts that are open in its name,” the BCEAO said.

Ouattara is holed up in a hotel, surrounded by the military that backs Gbagbo. Winning control over the nation’s financial reserves may undermine Gbagbo’s grip over the army, which has allowed him to defy international calls to step down, analysts including Kissy Agyeman-Togobo, a partner with London-based Songhai Advisory, said before the meeting.

“If Gbagbo is not able to access funds from BCEAO, that would be cutting off his lifeline and the army could very well turn,” Agyeman-Togobo said in an interview.

The West African franc, which Ivory Coast uses, is pegged to the euro in an arrangement with the Bank of France.

Yao Gnamien, an adviser to Gbagbo, didn’t answer calls to his mobile phone seeking comment today.

Death Toll at 173

Political violence has left 173 people dead since Dec. 16, when security forces opened fire on Ouattara supporters as they protested in the commercial capital, Abidjan, according to the UN. The political standoff began when the Constitutional Council rejected the election results and declared Gbagbo the winner. The electoral commission had given victory to Ouattara, 68.

Abidjan was calm today, with many people doing their Christmas shopping. Charles Ble Goude, a pro-Gbagbo minister who is under UN sanctions for inciting youth gangs to violence, called for a rally in support of Gbagbo on Dec. 29.

It remains unclear whether Ivory Coast will meet a $29 million interest payment on its Eurobond on Dec. 31, said Max Wolman, a London-based portfolio manager with Aberdeen Asset Management Plc, which holds about $6 billion in emerging-market debt. Non-payment would leave the country in technical default, even though it has a 30-day grace period, he said.

Eurobonds Slide

“The uncertainty of non-payment is still there,” Wolman said in an interview from London today. “Ouattara’s still not the sworn-in president and it’s not clear who actually signs off on the payment.”

The Eurobonds, Africa’s biggest, have fallen for seven days, dropping to a bid price of 42.5 cents on the dollar today from 51 cents on Dec. 15, pushing the yield to 15.041 percent as of 12:06 p.m. in Abidjan. Bond yields move inversely to prices.

The political standoff has driven cocoa prices up 8 percent since the Nov. 28 runoff. The cost of the chocolate ingredient for March delivery fell for the first time in five days on London’s Liffe exchange, declining 1.2 percent to 2,016 pounds ($3,113) as of 11:56 a.m. local time.

The UN yesterday formally recognized Ouattara as Ivory Coast’s president, accepting his representative to the body in New York, Agence France-Presse reported.

--Editors: Heather Langan, Antony Sguazzin, Philip Sanders

To contact the reporter on this story: Franz Wild in Johannesburg at fwild@bloomberg.net.

To contact the editor responsible for this story: Peter Hirschberg at phirschberg@bloomberg.net.

Rothschild Says Rusal’s Norilsk Stake Worth About $15 Billion

Posted: 24 Dec 2010 05:08 AM PST

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By Maria Kolesnikova

Dec. 24 (Bloomberg) -- Billionaire Oleg Deripaska’s stake in OAO GMK Norilsk Nickel is worth at least $15 billion, $3 billion more than Norilsk offered to buy it back, according to the chairman of his holding company, Nathaniel Rothschild.

The 25 percent stake held by Deripaska’s United Co. Rusal is worth “conservatively $15 billion, and arguably a great deal more,” Rothschild, chairman of EN+ Group, said in an e-mail.

Norilsk, the world’s biggest nickel producer, offered $12 billion to Rusal on Dec. 16 to buy back its shares. Rusal’s exit could bring an end to a long-running feud between Deripaska and fellow Norilsk shareholder Vladimir Potanin over company strategy, Nomura Holdings Plc said last week.

Rusal, which initially rejected Norilsk’s proposal, said Dec. 22 that its directors would study the offer. The aluminum producer may sell the shares at $12 billion to $15 billion, billionaire Mikhail Prokhorov, who holds 17 percent of the company, told Vedomosti newspaper on Dec. 20.

Norilsk should “comfortably” produce $9 billion to $10 billion in earnings before interest, tax, depreciation and amortization next year, Rothschild said yesterday. “On an even modest multiple of six, the business is worth $54 billion to $60 billion,” he said.

A Bloomberg survey of analysts shows Norilsk may report Ebitda of $7.15 billion this year and $7.63 billion in 2011, according to the median of 12 estimates.

“Norilsk is trading at an approximate 40 percent to 45 percent corporate-governance discount,” Rothschild said.

Rusal has sought to replace Norilsk Chief Executive Officer Vladimir Strzhalkovsky and the company’s board. Yesterday, Rusal requested a meeting of Norilsk shareholders to elect new directors after the nickel producer agreed to sell an 8 percent stake to Trafigura Beheer BV without board approval.

--Editors: Amanda Jordan, Alastair Reed

To contact the reporter on this story: Maria Kolesnikova in Moscow at mkolesnikova@bloomberg.net

To contact the editor responsible for this story: Amanda Jordan at ajordan11@bloomberg.net

BlackRock Blames Loan Crisis for Clean-Energy Outflow

Posted: 24 Dec 2010 05:07 AM PST

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By Ben Sills

(Adds Vestas, Lipper comment beginning 17th paragraph.)

Dec. 24 (Bloomberg) -- Renewable-energy funds suffered record outflows this year, reversing their direction from 2009, as money managers including BlackRock Inc. said the credit crunch dimmed the outlook for solar and wind power projects.

Investors pulled 931 million euros ($1.2 billion) in the first 10 months, already eclipsing the full-year withdrawals in 2008 when the global financial crisis spooked investors, according to data compiled by Lipper Inc. Last year clean-energy funds captured 1.3 billion euros of new money, Lipper said.

Tighter loan terms for clean-power projects, greater competition from Chinese manufacturers and reduced subsidies from European governments hammered some of the stocks that had been favorites of fund managers before 2010, such as Vestas Wind Systems A/S, the world’s largest wind-turbine maker. Funds that held oil and gas companies were gainers, a separate survey said.

“The new-energy market and related stocks were significantly impacted by the credit crisis,” Robin Batchelor, manager of the $2.9 billion BlackRock New Energy Fund, said in an e-mail. Reduced demand for energy and “the fact that governments were perceived to have many new worries on their agenda combined to create a difficult environment,” he said. New York-based BlackRock is the world’s largest money manager.

Conventional energy stocks saw the biggest increase in holdings and were the largest bets for funds, according to a Bank of America Merrill Lynch survey of 209 money managers controlling $569 billion, conducted Dec. 3 to Dec. 9.

Environmental Funds

The clean-energy sell-off is a blow to policymakers in the U.S., Japan and the European Union who pledged last year in Copenhagen to ramp up investment as they channel $100 billion a year in climate aid to developing nations by 2020.

The withdrawal extended to environmental funds, which had net withdrawals of 373 million euros, also a record, according to Lipper, a unit of New York-based Thomson Reuters Corp.

At BlackRock, whose clean-tech fund is one of the world’s largest, assets dropped to $2.9 billion on Oct. 31 from $3.8 billion 12 months earlier, and the fund’s value fell 8 percent. That suggests clients pulled about 560 million euros, or 15 percent of assets, according to Bloomberg calculations.

A BlackRock spokeswoman didn’t immediately comment on the calculation. Batchelor declined to comment on outflows.

Climate negotiators meeting in Cancun, Mexico, this month agreed to limit global warming to 2 degrees Celsius (3.6 degrees Fahrenheit) without reaching a deal on how to achieve it. Current pledges by individual nations will lead to 4 degrees of warming by 2100, according to Climate Interactive scientists who model warming scenarios.

Best, Worst Performers

“There was positive progress, but without the urgency or on the scale needed to meet the 2-degree goal,” said Peter Sweatman, chief executive officer of Climate Strategy & Partners, a Madrid-based consulting firm. “The warning lights are flashing red.”

The worst performing environmental or clean energy fund in the Lipper database that tracks returns of individual pools was Azemos Asset Management AG’s Hornet Renewable Energy Fund II, which lost 24 percent in the 12 months to Sept. 30 investing in stocks such as SMA Solar Technology AG and Meyer Burger Technology AG. The top performer was the Jupiter Environmental Income Fund, managed by Christopher Watt, which gained 18 percent. Watt didn’t immediately respond to phone and e-mail requests for comment.

183 Funds Tracked

This year’s sell-off reduced the total cash invested by 183 renewable-power and environmental funds Lipper tracks to 12.1 billion euros from 13.4 billion euros at the end of last year.

U.S. investment slumped this year amid investor doubt about government energy policy, while the sovereign debt crisis has limited prospects for economic growth in Europe. Governments in Germany, Spain and Italy cut subsidies for photovoltaic panels.

The industry is “exhausted,” said Thiemo Lang, manager of the SAM Group Holding AG’s 510 million-euro Smart Energy Fund. “There are price pressures, there are worries about reductions in incentives and there are worries about new production capacity that will lead to oversupply.”

Lang’s Luxembourg-based fund, whose share price fell 6.6 percent in the first 10 months, has attracted new investments of more than 70 million euros this year.

Vestas, which soared four-fold in Danish trading in the two years through June 2008, lost 46 percent this year through yesterday to 178.80 kroner. The WilderHill New Energy Global Innovation Index fell 15 percent in the period.

“Performance is always going to be key,” said Ed Moisson, head of U.K. and cross-border research at Lipper. “If your performance isn’t there, people aren’t going to buy the fund.”

Lipper’s parent company Thomson Reuters competes with Bloomberg LP.

--Editors: Todd White, Randall Hackley

To contact the reporter on this story: Ben Sills in Madrid at bsills@bloomberg.net

To contact the editor responsible for this story: Reed Landberg at landberg@bloomberg.net

Copper Approaches Record on Growth Signs as Swiss Franc Weakens

Posted: 24 Dec 2010 05:07 AM PST

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By Stephen Kirkland

Dec. 24 (Bloomberg) -- Copper rose to near a record amid speculation the global recovery will continue into 2011. The Swiss franc declined and U.K. shares advanced for a fifth day before the holiday weekend.

Copper jumped 0.4 percent, extending this year’s rally to 27 percent, at 7:40 a.m. in New York. The franc depreciated 0.2 percent against the euro, trimming its 2010 gain to 15 percent. The FTSE 100 Index added 0.2 percent, while the CAC-40 Index lost 0.4 percent, bringing this week’s increase to 0.9 percent. The MSCI Asia Pacific Index sank 0.2 percent. U.S. markets were closed for the Christmas holiday.

Confidence among U.S. consumers probably improved this month, economists said before the Conference Board’s report due to be released on Dec. 28. Data this week showed Americans increased spending in November for a fifth month and companies stepped up orders for equipment.

“Recoveries around the world appear to be picking up,” said Tsutomu Soma, a bond and currency dealer at Okasan Securities Co. in Tokyo. “There seems to be risk-on sentiment.”

Copper advanced to $9,335 a metric ton on the London Metal Exchange, within $57 of the record set on Dec. 21, after stockpiles fell in China, the world’s largest buyer of the metal. Nickel gained 1.2 percent. Gold for immediate delivery jumped 0.4 percent to $1,384.93 an ounce.

The franc weakened against all but two of its 16 major counterparts, slipping 0.1 percent versus the dollar. The country’s central bank said it’s ready to counter deflation risks if necessary. The pound gained for a second day against the U.S. currency, climbing 0.1 percent as traders reduced positions ahead of the long weekend holidays.

‘Political Impasse’

While most markets in Europe were closed, the FTSE 100 extended its fourth straight weekly advance, the longest streak of gains since September. The benchmark gauge has rallied 11 percent this year. Randgold Resources Ltd. dropped 5.4 percent after the metals producer said the “political impasse” in Ivory Coast will affect its fourth-quarter results. JJB Sports Plc surged 21 percent after the retailer announced measures to shore up its finances.

The MSCI Asia Pacific Index slid 0.2 percent, ending a three-day advance. Nissan Motor Co. retreated 1.3 percent in Tokyo. Advantest Corp., the world’s biggest maker of chip- testing equipment, dropped 1.8 percent after revising a takeover offer. Hyundai Merchant Marine Co. plunged 5.7 percent in Seoul after selling new shares at a discount.

China, Korea

The MSCI Emerging Markets Index fell for the first time in four days, slipping less than 0.1 percent. Automakers led a 0.7 percent drop in China’s Shanghai Composite Index after Beijing said it will limit the number of new passenger cars in the Chinese capital. South Korea’s Kospi Index declined 0.4 percent and the won weakened 0.2 percent after North Korea threatened to wage a “sacred war” using nuclear weapons if attacked.

Investors pulled money from emerging-market equity mutual funds for the first time since May in the week ended Dec. 22 amid concern that rising commodity prices will prompt China to tighten monetary policy, according to EPFR Global. The funds have taken in a record $92.5 billion this year as the MSCI emerging-market gauge advanced 14 percent.

--With assistance from Claudia Carpenter, David Merritt, Michael Patterson and Dan Tilles in London. Editors: Stephen Kirkland, Justin Carrigan

To contact the reporter on this story: Stephen Kirkland in London at skirkland@bloomberg.net

To contact the editor responsible for this story: Justin Carrigan in London at jcarrigan@bloomberg.net

How One Regulatory Proposal Could Discourage EVs

Posted: 23 Dec 2010 02:01 PM PST

Chevy Volt Versus Nissan Leaf: Let the Race Begin

Posted: 23 Dec 2010 12:17 PM PST

Business News: New Rules May Slow Charitable Gift-Giving

Business News: New Rules May Slow Charitable Gift-Giving

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