Wall Street tumbles as the combustible Japan global sell-off

The damaged Fukushima Daiichi Central nuclear where several explosions took place. Photo: Getty

The benchmark Nikkei 225 closed 5 FP7, with the broader Topix 6 FP6 increase but London of the main shares index added just points of 0 1pc with 5,700.81 open.

Gains in Europe has been also muted DAX 30 Frankfurt 0 FP7 and Paris's CAC 40 amounting to 0 5pc.

Other Asian markets had followed Japan higher, then even if the number of victims human and economic disasters, including an escalation of the nuclear crisis, remains uncertain.

At a time given the Nikkei climbed more FP6 but fell back after the Japan suspended operations to prevent a nuclear power plant disaster down after a surge of radiation is too dangerous for the workers to remain in the installation.

Most wanted shopkeepers deals after panic selling sent the index sinking 10 FP6 the day before. The Nikkei closed at its lowest level in nearly two years on Tuesday after the fall of more than 1 600 points, or 16pc, during two days - its worst two-day sell-off since 1987.

During this time, the Central Bank has pumped cash markets of money from Tokyo for a third day.

The Bank of the Japan injected 3.5 billion yen (£ 27bn), following injections totalling 23 billion yen ($283 billion) over the last two days. Contributing to banking shares perk up, lifting Mitsubishi UFJ Financial, the largest bank in the country, 2 2pc.

Exporters of power plant of the Japan took their breath after suffering staggering losses. Toyota Motor, constructor of no. 1 in the world, increased 6 4pc, Sony shot up to 7 5pc and truck-maker Isuzu was 7 3pc higher.

Industry heavy share rose the shock of the disaster gave way to thoughts of the reconstruction. Kobe Steel rose 11 3pc and Matsu Construction increased 4 8pc.

However, investors still remain tight on a crisis of change quickly to a central nuclear crippled northeast of the Japan. Authorities were still struggling to control the situation at the plant in Fukushima Dai-ichi after a string of explosions and fires, and a burst of radiation.

"It's very early days for the calculation of any impact on the economy and the stock and bond markets," said Sarah Williams, head of Japanese equities at Threadneedle based in London, which manages approximately $65bn assets.

"Until the safety of these plants is assured, investors remain cautious."

Markets elsewhere in the region of pointe. ABN Korea of added South 1. 8pc 1,957.29 and S & P/ASX 200 the Australia increased by 0. FP7 to 4,558.20. Landmarks in New Zealand, Singapore and Taiwan were also higher.

Shanghai Composite China has 1. 1pc, and actions on the Hang Seng in Hong Kong were flat.

Markets in Indonesia and the Philippines - who rely on the Japan for a relatively large share of their export - were down. Viet Nam and the Malaysia also fell.

The nuclear crisis swept financial markets of the world Tuesday as fears grew that the disaster to the Japan could slow the global economy. The Japan is the third largest global economy, manufacturing goods of automotive computer chips and bought 10pc of U.S. exports.

However, Wall Street counter. Index Dow Jones Industrial closed just 1. 1pc - or 137.74.49 points-11, 855. 42after fall as much as 3pc at a given time. FTSE 100 Xenopus Britain also melts to terminate 1. 38pc to 5,695,28. Earlier, the blue-chips were fallen to a minimum of expense 5622.53 year, wiping about £ 32bn offshore of the value of the index.

Levels of market in London and New York had expected a rebound in Japanese stocks today, claiming that the world liquidation had been exaggerated.

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Wall Street struggles as the combustible Japan global sell-off

The damaged Fukushima Daiichi Central nuclear where several explosions took place. Photo: Getty

The benchmark Nikkei 225 closed 5 FP7, with the broader Topix 6 FP6 increase but London of the main shares index added just points of 0 1pc with 5,700.81 open.

Gains in Europe has been also muted DAX 30 Frankfurt 0 FP7 and Paris's CAC 40 amounting to 0 5pc.

Other Asian markets had followed Japan higher, then even if the number of victims human and economic disasters, including an escalation of the nuclear crisis, remains uncertain.

At a time given the Nikkei climbed more FP6 but fell back after the Japan suspended operations to prevent a nuclear power plant disaster down after a surge of radiation is too dangerous for the workers to remain in the installation.

Most wanted shopkeepers deals after panic selling sent the index sinking 10 FP6 the day before. The Nikkei closed at its lowest level in nearly two years on Tuesday after the fall of more than 1 600 points, or 16pc, during two days - its worst two-day sell-off since 1987.

During this time, the Central Bank has pumped cash markets of money from Tokyo for a third day.

The Bank of the Japan injected 3.5 billion yen (£ 27bn), following injections totalling 23 billion yen ($283 billion) over the last two days. Contributing to banking shares perk up, lifting Mitsubishi UFJ Financial, the largest bank in the country, 2 2pc.

Exporters of power plant of the Japan took their breath after suffering staggering losses. Toyota Motor, constructor of no. 1 in the world, increased 6 4pc, Sony shot up to 7 5pc and truck-maker Isuzu was 7 3pc higher.

Industry heavy share rose the shock of the disaster gave way to thoughts of the reconstruction. Kobe Steel rose 11 3pc and Matsu Construction increased 4 8pc.

However, investors still remain tight on a crisis of change quickly to a central nuclear crippled northeast of the Japan. Authorities were still struggling to control the situation at the plant in Fukushima Dai-ichi after a string of explosions and fires, and a burst of radiation.

"It's very early days for the calculation of any impact on the economy and the stock and bond markets," said Sarah Williams, head of Japanese equities at Threadneedle based in London, which manages approximately $65bn assets.

"Until the safety of these plants is assured, investors remain cautious."

Markets elsewhere in the region of pointe. ABN Korea of added South 1. 8pc 1,957.29 and S & P/ASX 200 the Australia increased by 0. FP7 to 4,558.20. Landmarks in New Zealand, Singapore and Taiwan were also higher.

Shanghai Composite China has 1. 1pc, and actions on the Hang Seng in Hong Kong were flat.

Markets in Indonesia and the Philippines - who rely on the Japan for a relatively large share of their export - were down. Viet Nam and the Malaysia also fell.

The nuclear crisis swept financial markets of the world Tuesday as fears grew that the disaster to the Japan could slow the global economy. The Japan is the third largest global economy, manufacturing goods of automotive computer chips and bought 10pc of U.S. exports.

However, Wall Street counter. Index Dow Jones Industrial closed just 1. 1pc - or 137.74.49 points-11, 855. 42after fall as much as 3pc at a given time. FTSE 100 Xenopus Britain also melts to terminate 1. 38pc to 5,695,28. Earlier, the blue-chips were fallen to a minimum of expense 5622.53 year, wiping about £ 32bn offshore of the value of the index.

Levels of market in London and New York had expected a rebound in Japanese stocks today, claiming that the world liquidation had been exaggerated.

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Wall Street slides on the economy of the Japan, nuclear fears

Oil prices were volatile due to the increasing agitation in a Yemeni area bordering Saudi Arabia, largest exporter of oil more than Bahrain application using Arabic repress demonstrations and as investors weighed the effects of the crisis of the Japan. Brent crude, which was about $111 per barrel this morning, was trading at $113.08 in the afternoon in London.

However, some of the losses of last week - mounted $5.65 to $1,423 one ounce - recovered as the Japanese situation added to pressure on the metal rising, driving towards recent record prices.

Japanese stocks posted their largest daily decline since October 2008 large volume. The benchmark index Nikkei closed 6 2pc and 7 5pc collapsed wider TOPIX index.

Index Nikkei 225 for Tokyo plunged 633.94 points to close at 9,620.49. The broader Topix index was down 7 49pc. Gross price Brent also fell to just over $ 112 on expectations of low demand in the third world economy.

The Tokyo Electric Power shares fell 24pc as he struggled with the poor functioning of nuclear reactors and a lack of power which has led the company to announce rolling blackouts in some parts of Tokyo and its suburbs.

Companies with companies related to nuclear energy such as those that the nuclear energy build plants, recorded lost big, including Hitachi, a 16 2pc and Toshiba, losing 16 3pc. Japan Steel fell 19pc, Mitsubishi Heavy Industries 10pc and Kobe Steel 7 3pc.

Stocks in other sectors also takes great success as investors dumped shares on economic concerns of production and consumption. Automakers slid as Northeast of the Japan is a major centre for the production car, complete with a myriad of parts suppliers and a network of roads and ports for efficient distribution.

Toyota, the top constructor world, Nissan and Honda suspended production at all plants through the Japan. Toyota fell 8 FP6, Honda lost 7 FP7 and Nissan fell 10 FP7. Mitsubishi Motors and Isuzu Motors lost near 11pc.

Insurance companies - many of which will be claims heavy likely face for lost property and infrastructure - also suffered drops sharp, including Tokio Marine Holdings was down 13pc. Oil of Cosmo, whose refinery was the fire because of the magnitude of 8.9 quake plunged 25 2pc.

The British insurance companies doing business in the Japan have been hit with estimated the magnitude of the potential claim estimates more than triple over the weekend to £ 30bn as the magnitude of the crisis took place. Popular London insurer Lloyd Catlin fell to 3pc.

Burberry retailer of luxury goods was an another big faller, down 4 FP6 - Japan is one of largest consumers of luxury products in the world and composed the 11pc of worldwide sales of luxury. On the Continment Hermes, LVMH, PPR and Richemont have fallen.

At the other end of the scale, actions BG Group acquired 3 3pc on expectations that British oil and gas Explorer could help to provide the Japan with liquefied natural gas (LNG). LNG and coal are expected to be the main sources of replacement for the loss of nuclear energy and that week last BG finalized a contract for the supply of LNG 20 years with Tokyo.

Aggreko temporary power provider has also increased 6 5pc, following explosions at one of the Japan nuclear power plants.

Japan was already seeking to overcome the deficit more great worldwide before the tsunami devastated the North of the country, Friday. He had slipped to third, behind China, in the list of the world's largest economies.

Masaaki Shirakawa, Governor of the Bank of Japan, said that the Central Bank could provide "big" liquidity to maintain financial stability. Earlier Monday, the Bank of the Japan injected a record 15 billion yen (£ 115bn) in currency markets to try to defend the already fragile economy.

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Spain orders drastic caja clean-up to win confidence and fight off EMU debt contagion

 The Spanish media reports that the cajas have yet to come clean on 80bn euros of exposure to property loans Photo: AFP

The weaker banks, or "cajas", must raise Tier 1 core capital to 10pc by September if they depend on wholesale capital markets for more than a fifth of their funding or if less than a fifth of their shares are in private hands. If they fail to do so, the government will seize control through the state bailout fund (FROB).

The demands are even tougher than the broad-brush plans unveiled last month and shows the determination of the authorites to cut out any cancers rather than allowing the sort of drift that bedevilled Japan in the 1990s.

The move comes after yields on Portuguese 10-year bonds punched to a post-EMU high of 7.66pc, renewing fears of a spill-over into Spain. The European Central Bank intervened on Thursday to restore calm but it is clear that Euroland euphoria over Chinese purchases of Portuguese debt has not lasted long.

Jose Manuel Campa, Spain’s economy secretary and the architect of the financial overhaul, acknowledged that the most vulnerable cajas are unlikely to find private investors. "It will be a challenge. They have not taken part in the equity markets for some time," he told The Telegraph.

Only five of the 17 cajas meet the 10pc rule. Caixa Nova is 6.0, Unnim is 6.22, Caixa Galicia 6.43 and Catalyunia Caixa 6.6. Even the giant Caja Madrid with €328bn (£277bn) of assets has core capital of just 7.1, though it is already preparing a stock listing.

Mr Campa is hopeful that cajas will be able to raise "a big chunk" from investors given the strides made in cleaning up their books. He said fresh capital of €20bn will be enough to restore the caja industry to health, disputing claims by City analysts that €40bn to €80bn will be needed. "These high numbers are based on very stretched scenarios, with a fall in house prices by 50pc and land prices by 70pc," he said.

Madrid is basing its estimates on bank stress tests last July that included a severe double-dip recession, with a 3pc fall in GDP over the two years of 2010 and 2011. Since the economy in fact contracted by just 0.1pc last year, it would take a dire relapse at this point to exhaust the safety buffer.

However, there is a risk that Spain may have missed a chance once again to "get ahead" of the crisis. A report this week by the world’s Financial Stability Board (FSB) said the sheer scale of Spain’s property bubble had overwhlemed the country's seemingly tough rules on loss provisions.

While the FSB praised Spain’s latest efforts to strengthen its banking system, there was a sting in the tail. "Such determined actions became necessary partly because of the delay in addressing earlier the structural weaknesses of savings banks," it said.

The Spanish media reports that the cajas have yet to come clean on €80bn of exposure to property loans, and are under fresh scrutiny by central bank inspectors.

Mr Campa blamed the renewed eruption of the bond crisis last Autumn on Franco-German talk of haircuts for holders of EMU sovereign debt, coupled with the failure of the Irish authorities to carry out rigorous stress tests of their banks. "That really hurt us. We had made huge efforts to be transparent, but the Irish crisis devalued the quality of the tests for everybody."

The fate of the cajas is inseparable from the Spanish property market. Mr Campa said construction has fallen from 700,000 homes year during the bubble to around 200,000 until well into the next decade, helping to clear an overhang of properties estimated by consultants RR de Acuna to be as high as 1m.

The uber-bubbles were in the Madrid suburbs and parts of the tourist belt on the coast, but the market is much closer to balance in the rest of the country.

Mr Campa, a free market economist who taught at New York’s Stern School of Business with arch-bear Nouriel Roubini, was brought in to restore Spain’s credibility in world finance after the crisis was in full swing.

He advises astute investors that right now may prove to be the optimal moment to buy a house in Spain. "The Germans are coming back. We need the English, too," he said.

Banking and Finance vacancies at Telegraph Jobs

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Spain downgrade sparks storm over rating agencies

The central bank said on Thursday that 12 cajas (savings banks) and other banks must raise €15.2bn between them by September, led by Bankia (€5.8bn), Novacaixagalicia (€2.6bn), and Catalunyacaixa (€1.7bn).

Moody's praised Spain for its market reforms and said "debt sustainability is not under threat." But it also warned of fresh "episodes of funding stress". The government, regional juntas, and banks must together must raise or roll over €300bn of debt this year.

Fitch Ratings also issued a report concluding that the bail-out costs might spiral, putting the figure at €97bn in an Irish-style "stress scenario" where property losses reach 58pc. The Irish parallel has infuriated Madrid since delinquency rates on Spanish homes are low. Loan-to-value ratios on mortgages average just 62pc.

Spanish officials said it was astonishing that Moody's should drop its bombshell hours before the central bank was due to publish its own far more detailed analysis. "Moody's don't explain how they come up with these numbers," said one source.

European anger over the power of "Anglo-Saxon" rating agencies has been welling for months but has now reached fever pitch. Greece's finance minister George Papaconstantinou wrote on Thursday to the EU authorities calling for restraining action after Moody's cut Greek debt three notches three-notch. "Such unjustified and imbalanced decisions could become self-fulfilling prophecies. Rating agencies must be regulated effectively at a European and world level," he said.

Brussels is drawing up tougher rules, perhaps making Moody's, Fitch, and S&P liable for the damage of "incorrect ratings". An EU source said it was scandalous that one agency had rated Greece by sending a single person to the country twice a year for a half a day. "When the IMF goes in, they send a whole team for a week. We want to know how much serious time and effort goes into these ratings."

Spanish officials feel aggrieved that they are being punished after taking the lead in eurozone bank reform, going beyond Basel III rules with earlier compliance and requirements for core Tier I capital of 10pc for some banks with a reliance on wholesale funding. Indeed, the ECB even warned in its monthly bulletin that Spain is perhaps too "ambitious", creating the risk of a credit squeeze .

For all the fury over Moody's, Spain undoubtedly faces an ordeal by fire as the ECB prepares to raise rate rises as soon April. One-year Euribor rates used to set the cost of most Spanish mortgages and corporate loans have surged to 1.95pc since the ECB shift, part of an instant tightening effect rippling through Spain's economy. This is potentially threatening. Private debt is near 240pc of GDP.

Julian Callow from Barclays Capital said Spanish house prices are falling steeply after a lull late last year, with the Fotocasa index falling at 5.2pc rate. "Spain has suffered a series of negative shocks, with energy costs going up and no magic package yet in sight from the EU. The ECB should not be rushing into monetary tightening at this moment, The more property prices fall, the more strain this puts on banks," he said.

EU officials are playing down hopes of an EU deal on Friday. A draft "Pact for the Euro" – an enhanced Stability Pact – has been watered down to meet the furious objections of several states and may not be enough to satisfy German demands for Teutonic rigour.

However, it still includes plans for a "debt-break" along German lines that is constitutionally "binding" on all states, as well as intrusive rules on pensions, collective-bargaining, labour costs, and wage indexation.

It empowers the European Commission to vet rules "before" they have been approved by national parliaments. This treads on sensitive toes. The power to tax, borrow, and spend is the essence of national sovereignty. While the document states that the "prerogatives of national parliaments" should be respected, it is far from clear how these can be reconciled.

EU diplomats say the implicit quid pro quo is that Club Med must accept this straight-jacket to secure German backing for a more muscular bail-out fund (EFSF). Yet it is unclear whether Chancellor Angela Merkel can offer meaningful concessions, given a broad-based revolt by Germany's Bundestag, Lander, and academia.

Mrs Merkel is likely to block plans to let the bail-out fund buy eurozone bonds, since this would usher in fiscal union by the back door. Nor does she seem willing to cut the penal rate of interest on the Irish and Greek rescue by enough to make any difference. Capital flight from the eurozone is likely to gather pace if none of these changes are agreed this month. This risks raising the stakes for Spain, and perhaps Italy.

The yield on Italian 10-year bonds pushed above 5pc on Thursday, a level that could start to endanger debt sustainability given the catatonic state of the economy and the sheer size of Italy's public debt at 120pc of GDP. Italy's industrial output fell 1.5pc in January, and has barely recovered from the Great Recession.

Bundesbank chief Axel Weber said that Germany's rebound should not be exaggerated. The growth speed on the economy is just 1pc over time. "Europe will become more and more insignificant in the global economy," he said.

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Spain and Portugal under fire as bond spreads hit record

Saxo Bank said the EU's ?370bn bail-out fund would lose its AAA credit rating if Spain needed serious help Photo: PA

Yields on 10-year Portuguese bonds jumped to 6.9pc, replicating the pattern seen in Greece and Ireland just before they capitulated and turned to the EU and the International Monetary Fund.

Spreads on 10-year Spanish bonds rose to a post-EMU record of 233 basis points over Bunds, pushing the yield to 4.87pc. Spain's central bank governor, Miguel Angel Fenrandez Ordonez, said the contagion had spread rapidly to the eurozone periphery and "made itself felt" in the Spanish debt markets. He called on Madrid to accelerate fiscal reforms to persuade the markets the country really means to put its house in order.

"Spain is a bit too big to be bailed out," said Antonia Garcia Pascual, of Barclays Capital. "The size of rescue required would use up all the funds available and then you have Italy with contagion as well."

Saxo Bank said the EU's €440bn (£370bn) bail-out fund would lose its AAA credit rating if Spain needed serious help. Germany and France would have to put up fresh money, creating a political storm.

German Chancellor Angela Merkel admitted on Tuesday that the eurozone was "facing an exceptionally serious situation". She brushed aside criticism that German insistence on bondholder "haircuts" from 2013 was fuelling the crisis. "I will not let up on this because the primacy of politics over markets must be enforced," she said.

Dutch finance minister Jan Kees de Jager sent a further chill through markets, saying "holders of subordinated bonds in Irish banks will have to bleed" under the Irish rescue. The comment touched a neuralgic nerve, heightening fears that investors may be treated harshly under the bail-out terms for any other country needing a rescue.

Bank of Ireland shares crashed 23pc and Allied Irish Bank's fell 19pc on fears that shareholders will be wiped out. Ominously, there was a sharp sell-off of Spain's two top banks, with Santander down 4.7pc and BBVA down 3.9pc.

Markets, further unsettled by the tensions in Korea, fell around the world. The FTSE 100 closed down 1.75pc at 5581.28. In Spain the Ibex index fell 3pc, while in France the CAC lost 2.5pc.

"The Irish rescue has done absolutely nothing to calm the markets: it has done the opposite," said Elizabeth Afseth, a bond expert at Evolution. "It is dangerous to talk about creditor losses. Investors will be very wary of lending to Portugal. It looks as if Europe is going to push this to the edge of the cliff."

EU president Herman Van Rompuy denied that Lisbon needs a lifeline, insisting that Portugal's banks are well capitalised and do not face property losses. "Portugal does not need any help – it is in a very different situation to Ireland," he said.

However, Portuguese banks have been shut out of the capital markets. The country's total debt level is one of the world's highest, at 325pc of GDP, and it has a current account deficit of 10pc – which requires a flow of external funding.

The euro fell to a two-month low of $1.3380 against the dollar, in part fed by fears of paralysis in Ireland as the crumbling coalition unveils a four-year austerity drive and tries to push through budget cuts before an election next year. Opposition parties said premier Brian Cowen no longer had the authority to act for the nation, while rebels in his own Fianna Fail party demanded his resignation.

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The best ways to get term life insurance quotes

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We, the trials, the new rules to prevent the repetition of "flash crash".

Under U.S. regulator of the Securities and Exchange Commission plans, stock trades will be limited to a group on each side of the average price of the share during the last five minutes.

Bush hopes that it will be a more sophisticated tool that the current so-called "circuit breakers". These automatically stop operations a hand for five minutes if it moves more than 10pc in five minutes and were laid shortly after the fall of last May.

May 6 event was triggered after a typical decline of an index of future shares of unexpectedly a wave of sales of computerized business models which, in turn, led a race for the output of other investors. In all, $862bn (£ 527bn) was wiped off the value of the US stock markets.

"These rules, good or bad, will bring the confidence of investors to the market," said Larry Peruzzi, a trade of fairness to Cabrera Capital Markets.

The new rules will also see a share suspended for five minutes, if it cannot trade within the price band designated for more than 15 seconds. The SEC said that the group will be expanded in the minutes immediately after the market opens and the closing minutes each day.

"Upgrade of our commercial parameters will help our markets retain the confidence of investors and businesses," said Mary Schapiro, the sec Chairman. "We were focused on the improvement of the structure of our markets before weaknesses were exposed on 6 may, and we will continue to focus on the structure of the market in the future."

The new rules apply to trading on NYSE Euronext, Nasdaq and bats global markets, commercial exchange.

The SEC is having to walk the tightrope between the protection of investors in unnecessary volatility and ensure that there is sufficient liquidity to operate the stock markets of the country.

In the five months after the crash, the most important withdrawal since the financial crisis, investors withdrew about $61bn of mutual funds.

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Wall Street, European shares fall on trac Japan

Investors sold the shares of insurance in fear of how high will go total losses from the earthquake and tsunami of the Japan.

At least a series of experts secured the insured loss as high as $BCVS only after the earthquake and subsequent fires - not to mention the tsunami damage which will certainly add to the figure. Some analysts said that the figure should be lower but still significant.

London stocks fell for a fourth day in a three-month minimum fee, Germany of the DAX dropped 1. 65pc and the France of the CAC slid 1. 3pc.

Stocks of luxury goods, the nuclear power groups and insurers have been the hardest hit the Japan fought with replicas, a second explosion earthquake of Earth-hit Fukushima nuclear complex North of Tokyo and the economic impact of a disaster that killed thousands.

FTSE 100 Britain had opened mainly flat despite Japanese stocks posting their largest daily decline since October 2008 large volume. The benchmark index Nikkei closed 6 2pc and 7 5pc collapsed wider TOPIX index.

"After proving enough resistant during the morning session, a lower open on Wall Street has put pressure on UK shares this afternoon as investors remain uncertain about the economic impact, the Japanese earthquake will have.""," said Yusuf Heusen, IG Index.

The index ended the day 50,64 - or 0 9pc - 5775.24 with the goods retailer Burberry and popular Lloyd of London insurers Aviva and Catlin luxury among top fallers of the page.

At the other end of the scale, actions BG Group acquired 3 FP7 on expectations that British oil and gas Explorer could help to provide the Japan with liquefied natural gas (LNG). LNG and coal are expected to be the main sources of replacement for the loss of nuclear energy and that week last BG finalized a contract for the supply of LNG 20 years with Tokyo.

Power temporary provider Aggreko is the biggest rise among blue chip, rising 8 24pc after fresh explosions in the Japan and power cuts.

The falls in Britain has followed a similar patten in Europe where Hermes, LVMH, PPR and Richemont and giant reinsurers fell. Electricity company were also hit.

The Germany E.on and RWE lose between 4 FP7 and 5 3pc as the country suspended an agreement to extend the life of its nuclear plants, while the Switzerland put hold certain approvals of nuclear power plants.

Investors were also concerned that the crisis in Fukushima is likely to increase opposition to the major nuclear expansion in Europe and injure a renaissance for the United States sector, which already has over 100 reactors.

General Electric, the society of engineering us provided reactors at nuclear Central Fukushima No. 1 sinistrée of the Japan, a New York - the biggest faller on the Dow Jones 5 FP6. Analysts expect the disaster concerns weigh on shares of GE in the short term. Index Dow Jones had opened 0 45pc downwards to 11,990.66 before falling over.

Caterpillar was one of the key winners on Wall Street on expectations of large-scale reconstruction in the third world economic power.

Expectations of reconstruction had previously indicated by buoys shares in Hong Kong, China, Korea and India, which large investors shrugged off the potential impact of a slowdown in growth in the Japan.

Oil prices were volatile due to the increasing agitation in a Yemeni area bordering Saudi Arabia, largest exporter of oil more than Bahrain application using Arabic repress demonstrations and as investors weighed the effects of the crisis of the Japan. Brent crude, which was about $111 per barrel this morning, was trading at $113.08 in the afternoon in London.

However, some of the losses of last week - mounted $5.65 to $1,423 one ounce - recovered as the Japanese situation added to pressure on the metal rising, driving towards recent record prices.

Japan trading

The Tokyo Electric Power shares fell 24pc as he struggled with the poor functioning of nuclear reactors and a lack of power which has led the company to announce rolling blackouts in some parts of Tokyo and its suburbs.

Companies with companies related to nuclear energy such as those that the nuclear energy build plants, recorded lost big, including Hitachi, a 16 2pc and Toshiba, losing 16 3pc. Japan Steel fell 19pc, Mitsubishi Heavy Industries 10pc and Kobe Steel 7 3pc.

Stocks in other sectors also takes great success as investors dumped shares on economic concerns of production and consumption. Automakers slid as Northeast of the Japan is a major centre for the production car, complete with a myriad of parts suppliers and a network of roads and ports for efficient distribution.

Toyota, the top constructor world, Nissan and Honda suspended production at all plants through the Japan. Toyota fell 8 FP6, Honda lost 7 FP7 and Nissan fell 10 FP7. Mitsubishi Motors and Isuzu Motors lost near 11pc.

Insurance companies - many of which will be claims heavy likely face for lost property and infrastructure - also suffered drops sharp, including Tokio Marine Holdings was down 13pc. Oil of Cosmo, whose refinery was the fire because of the magnitude of 8.9 quake plunged 25 2pc.

Japan was already seeking to overcome the deficit more great worldwide before the tsunami devastated the North of the country, Friday.

The Bank of the Japan made a record 22 billion yen (£ 166bn) available to banks Monday and doubled its active purchase 10 billion yen scheme (£ 76bn) to maintain confidence in the economy and maintain financial stability.

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Wall Street tumbles as the Japan fuels gobal predatory

The damaged Fukushima Daiichi Central nuclear where several explosions took place. Photo: Getty

The benchmark Nikkei 225 closed 5 FP7, with the broader Topix 6 FP6 increase but London of the main shares index added just points of 0 1pc with 5,700.81 open.

Gains in Europe has been also muted DAX 30 Frankfurt 0 FP7 and Paris's CAC 40 amounting to 0 5pc.

Other Asian markets had followed Japan higher, then even if the number of victims human and economic disasters, including an escalation of the nuclear crisis, remains uncertain.

At a time given the Nikkei climbed more FP6 but fell back after the Japan suspended operations to prevent a nuclear power plant disaster down after a surge of radiation is too dangerous for the workers to remain in the installation.

Most wanted shopkeepers deals after panic selling sent the index sinking 10 FP6 the day before. The Nikkei closed at its lowest level in nearly two years on Tuesday after the fall of more than 1 600 points, or 16pc, during two days - its worst two-day sell-off since 1987.

During this time, the Central Bank has pumped cash markets of money from Tokyo for a third day.

The Bank of the Japan injected 3.5 billion yen (£ 27bn), following injections totalling 23 billion yen ($283 billion) over the last two days. Contributing to banking shares perk up, lifting Mitsubishi UFJ Financial, the largest bank in the country, 2 2pc.

Exporters of power plant of the Japan took their breath after suffering staggering losses. Toyota Motor, constructor of no. 1 in the world, increased 6 4pc, Sony shot up to 7 5pc and truck-maker Isuzu was 7 3pc higher.

Industry heavy share rose the shock of the disaster gave way to thoughts of the reconstruction. Kobe Steel rose 11 3pc and Matsu Construction increased 4 8pc.

However, investors still remain tight on a crisis of change quickly to a central nuclear crippled northeast of the Japan. Authorities were still struggling to control the situation at the plant in Fukushima Dai-ichi after a string of explosions and fires, and a burst of radiation.

"It's very early days for the calculation of any impact on the economy and the stock and bond markets," said Sarah Williams, head of Japanese equities at Threadneedle based in London, which manages approximately $65bn assets.

"Until the safety of these plants is assured, investors remain cautious."

Markets elsewhere in the region of pointe. ABN Korea of added South 1. 8pc 1,957.29 and S & P/ASX 200 the Australia increased by 0. FP7 to 4,558.20. Landmarks in New Zealand, Singapore and Taiwan were also higher.

Shanghai Composite China has 1. 1pc, and actions on the Hang Seng in Hong Kong were flat.

Markets in Indonesia and the Philippines - who rely on the Japan for a relatively large share of their export - were down. Viet Nam and the Malaysia also fell.

The nuclear crisis swept financial markets of the world Tuesday as fears grew that the disaster to the Japan could slow the global economy. The Japan is the third largest global economy, manufacturing goods of automotive computer chips and bought 10pc of U.S. exports.

However, Wall Street counter. Index Dow Jones Industrial closed just 1. 1pc - or 137.74.49 points-11, 855. 42after fall as much as 3pc at a given time. FTSE 100 Xenopus Britain also melts to terminate 1. 38pc to 5,695,28. Earlier, the blue-chips were fallen to a minimum of expense 5622.53 year, wiping about £ 32bn offshore of the value of the index.

Levels of market in London and New York had expected a rebound in Japanese stocks today, claiming that the world liquidation had been exaggerated.

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Warren Buffett back on the Japan to rebuild, sees "opportunity to purchase".

The 80-year-old American, who is nicknamed the "Sage of Omaha", said that the devastation had not changed the "economic perspective" of the Japan.

He argued that the components markets normally in the wake of major disasters. Speaking in Daegu, South Korea, Mr. Buffett said that the terrorist attacks on New York in 2001 "has not changed the future of the United States or the economic perspective of the United States." He said: "I feel exactly the same way after what happened to the Japan." "People in the Japan have the same energy, they have the same desire to move forward and the same resources to rebuild".

He added: "I look differently to... 10 days ago""Frequently, extraordinary events really create an opportunity to purchase".

His comments came as the largest companies of the Japan, began a second week of disturbances caused by a lack of power and supplies. Car manufacturers including Toyota, Honda and Nissan stated that most of their activities to the Japan remains closed this week.

Canon, largest manufacter of digital cameras in the world, said that it will be closed all three factories of camera home while Sony, Toshiba and Nikkon has warned of further disturbances.

Jamco, a Japanese company, making the galleys for the Boeing 787 Dreamliner, said delivery would be delayed if gasoline supplies are further pressed.

Mr. Buffett was to go to the Japan, but instead went to the opening of a factory belonging to Iscar Metworking, a metal firm Israeli once belonging to his investment vehicle, Berkshire Hathaway.

It also revealed that he was looking to make a large acquisition. "We envisage a number of large companies in Korea, the United States, the United Kingdom," he said "We hope to find good companies wherever they are." Basically, this is the biggest, best. »

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Week ahead: economic - corporate events on April 11, 2011

Thus Europe's debt crisis, politicians and economists discuss the disorders of the Middle East and the impact of the earthquake of the Japan.

michael Page International coup ads of the week with a commercial statement today. Trade figures for the recruitment firm should provide an indication of the application in the whole of the world economy. The last quarter of 2010 has seen a strong finish to the year with fees net up 31pc year after year.

Results of the year No application

Interim results Carrs milling Industries

Trading update E2V Technologies, Michael Page International, Volex Group

Economy No application

Meetings Henderson Pacific Investment Trust AGM

Alliance Trust will publish its first set of results since tumbling out of the FTSE 100 in March.

Katherine Garrett-Cox, Chief Executive of the company and his management team have been under pressure since a group of activist investors began to build shares in the group. Laxey Partners, a Fund focused on the Isle of Man, sent a letter to the company asking him to start to buy back shares to reduce the discount between its price and the net asset value of the investments of the group.

The letter will be now sent to the shareholders by Alliance Trust ahead of its annual meeting in may, where the Laxey filed resolutions to introduce a "discount mechanism of control" - which would kick in when the company falls below its NAV 90pc.

Investors are also eager to hear punch taverns on details about the plans of the company for two companies - Punch and the spirit.

Speculation is mounting that Ian Dyson, Chief Executive Officer, will continue with the side managed pub business: will Mike Tye Director General.

During this time, Brian Wallace, Director of finance from Ladbrokes and an old associate of Mr. Dyson in their days, at the level of the Hilton group has been tipped as a likely mind President.

Roger Whiteside, Director General of non-compliant rental pubs, is provided at the head of the non-compliant rental division, and Ed Bashforth, Secretary of the company for 36 years, could become Director of Finance of the unit.

Results of the year Alliance Trust

Interim results Punch Taverns

Trading update GKN, Telecity Group

Economy Monitor sales to the British Retail Consortium Retail, RICS housing survey, the numbers of trade UK, March inflation data

Meetings Access Intelligence AGM, JP Morgan Claverhouse Investment Trust AGM, law debenture Corp. AGM, AGM primary health properties,

jd Sports fashion, high street retail group, is supposed to report full-year pre-tax profits of £ 79. 3 m, compared to £ 61. 4 m last year. The group is a retail chain a few running well at this time. The month last end JD offers talks with rival JJB Sports.

Results of the year JD Sports, Styles & Wood Group

Interim results Smiths News

Trading update ASOS, WS Atkins

Economy Unemployment figures

Meetings Anglo Pacific Group AGA, Drax group AGM

WH smith will announce its first half results Thursday. The magazine, stationery and book retailer is expected by analysts to Seymour Pierce to report first half profits before tax of £ 64. 5 m, up to 4 1pc on last year.

Earnings from its high street division is expected to be slightly on the year £ 47 last. 3 m, while its travel division earnings are expected to have increased by £ 25 by 9 FP7. 2 Mr. retailer has had a good recession, and its current performance and sale will be flattered by the disturbance to its shops in airports last year. Kate Calvert, analyst at Seymour Pierce, said: "sales are fairly well known as management issued a reassuring commercial statement in January." High street like-like sales were down FP6 during the week of 21 to 22 January and travel sales as resembling 3pc down, affected by disturbances in the snow. With detail making virtually all its profits on Christmas in the first half, the focus will be on prospects for travel.

She added: "comparable are potentially more low in view of the volcanic ash disruption and the number of strike days BA last year."

Investors will be hoped that Bank of Ireland will provide indications as to whether if the Irish regulator intends to force the holders of bonds in Irish banks to hair cut in the value of their assets.

Last week, Matthew: Elderfield, head of the financial regulations of the Central Bank of the Ireland, refused to exclude from cutting hair for investors in the debt of Anglo Irish Bank and Irish Nationwide Building Society.

Results of the year Systems of Filtration AMIAD, Bank of Ireland, Dori Media, ideal online shopping

Interim results Debenhams, WH Smiths

Trading update Ashmore Group, group Dunelm, Eaga, Filtrona, PZ Cussons

Economy The g-20 finance ministers began their meeting in Washington

Meetings BP AGM, Filtrona AGM, rank group AGA, Smith & Nephew AGM

The market hopes that Ladbrokes will provide an update on its takeover talks with 888 Holdings when the bookmaker he unveils his latest trading figures. Ladbrokes has negotiated with 888 for months and speculation is mounting the deal could fall apart.

Results of the year No application

Interim results No application

Trading update Ladbrokes

Economy No application

Meetings No application

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Week ahead: economic - corporate events on April 4, 2011

On the business front, Marks & Spencer will update the market on its fourth business quarter, and the string should have had a difficult time since the beginning of the year.

Analysts expect sales of general merchandise - which is the sale of any food bar - to fell 6 2pc. The range of expectations of sales of 15 analysts of the city, extends from UNMIS 8pc at least 4pc. Food sales are expected to have increased by 1. 3pc, with the range of flat sales to increase sale of 3pc.

Overall, analysts expect global sales fell by 2 5pc.

The negative figure reflect what others have said in recent weeks - that customers are reigning in spending as the household budget get pressed.

But M & S not will not have had as evil as some rivals. Its positioning at the upper end of the market means that it is sheltering some more doubtful rivals have been involved in the update. Clients also have be "trading up" in the clothing of superior quality, which would have contributed to M & S.

Hyder Consulting will provide a commercial upgrade today. Investors will be keen to know if the Middle East business resumed. Updated commercial company, Hyder stated in the Middle East "remains difficult and progress on contract departures are still a bit long".

Results of the year: Dods, Graphite Enterprise Group

Interim results: Nanoco

Trading Update: Hyder Consulting

Economics: The Bank of England housing figures withdrawal of fairness for 2010 Q4, construction PMI

Meetings: XP Power

Porvairfiltration specialist, will update the market on the exchange of rights that it holds its annual shareholder meeting Tuesday. Its results in January of the year, Porvair has posted an increase in profits to £ 3 82pc. 1 m and a 15pc increase revenue to £ 63. 6 m.

At the time, the la compagnie company said that 2011 started well with income in December and January of the previous year and the momentum in the second half of 2010 carrying forward in the new year.

Porvair made equipment of filtration and separation technology of the environment, energy and aviation. In February, he has won an order for nuclear filtration for €600,000 (£ 529,444).

Results of the year: Asia Digital Holdings, International liaison Enquest, Immupharma software

Interim results: No application

Trading Update: Aberforth smaller companies Trust, ING UK, fifteen next Communications, Porvair real estate income trust

Economics: PMI services

Meetings: Scotty Group

TI Misys provider is expected to signal the continuation of the growth of its software banking services. However, statement by the interim leadership of today should be limited details. Sales in the first six months of its fiscal year increased 2pc 161 m £, while operating profit fell 3pc 23 million pounds sterling.

Earlier this year Misys set out plans to return an another £ 145 m, investors sharing the spoils for the sale of the year last health software joint venture Allscripts-Misys. He had already used about 525 m £ the proceeds of the sale of the company, which manages electronic health records for physicians and hospitals, a share buyback scheme.

It is the beginning of the new tax year 2011-2012 and include effective measures of April 6: the inheritance tax threshold frozen at £ 325,000 to 2014-2015. ISA limits indexed annually in line with RPI; and a rate of additional 5MC right stamp for buildings residential purchases on 1 m £.

Results of the year: Prezzo

Interim results: No application

Trading Update: Marks & Spencer, Misys, Robert Walters, XP Power

Economics: Data of industrial production for February, confidence index consumer in throughout the country for March

Meetings: No application

String partsHalfordsbike or by car, will update the market on the trade of the latter. In January, the company said that profit before tax for the year will be at the lower end of market expectations. The company has been hit by the overall consumer spending slowdown that hit most of high street retailers. His recent move into camping equipment could soon reap benefits, even if, as Breton start charting their summer breaks.

Hays, more UK recruitment company, announces three-quarter results. Last month the company downplayed a 36pc fall in income from jobs in the public sector for the six months to December as "ought to". Analysts predict that the group will continue to see opportunities for growth abroad, including Asia. Society is profits before tax of report of 106 m £ in the year to June 30, 2011, according to Credit Switzerland, recovering from 80pc collapse in profits before tax of the previous year. 2010 Figures have been tainted by a £ 30. 4 m fine imposed by the Office of Fair Trading of price fixing, which was reduced to £ 5. 9 m by the Court of appeal of the competition in London last week.

Results of the year: Asterand, Hydrodec

Interim results: No application

Trading Update: Hays, Halfords, Victrex

Economics: ECB interest rates, the decision of rate of the Bank of England, data on the productivity of labour for Q4 2010 announced

Meetings: Scottish American investment

Vedanta issues full-year production figures. Investors will be eager to hear any update on the project to offer to buy Cairn Energy India oil fields. This is because a decision will provide more clarity on the future direction of the structure of the debt of the company and group. The flotation of its unit of Konkola Copper Mines reached the end of last for any comment on it will be important. All the news about the question of whether the company will be granted permission to mine bauxite in Orissa are also noted.

Results of the year: No application

Interim results: No application

Trading Update: Vedanta Resources

Economics: Prices for March

Meetings: No application

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We will soon find if the United States growth is justified

The first is obvious to my table, S & P 500 significantly upgraded a FTSE 100 Britain America index. The second is that, considering what a March sad we have just endured, both indices held surprisingly well.

To address the growing gap of the first performance, it is an indication to me of how investors are beginning to see the different ways in which the Governments of both sides of the pond choose to care for their in fact rather similar economic challenges.

United States, President Obama decided to launch the can on the road, leaving the solution to horrible deficit until after the presidential election next year. Instead, he focused his power of fire on the promotion of the growth of the US economy with monetary policy of zero interest rates and a net of relaxation on the tax front.

Here, George Osborne chose to fix the deficit first and hope that austerity will create growth conditions. Dark comments, between the others, Dixons, John Lewis, Sainsbury's and then in the last week suggest that the success of this economic experiment is far from guaranteed.

In the months following, with approximately two-thirds 500 companies including benchmark of U.S. report their first quarter results, we will have the chance to see if the relative United States out-performance is justified. We will also be able to judge if his absolute gain (up on 16pc since the end of September) can be maintained.

There are many reasons to believe that investors may be too optimistic, and which should not be surprising person who saw the events taking place in the Japan, Libya and Ireland. If someone had provided toxic cocktail of March of the earthquake, tsunami, war, nuclear and endless crisis financial turmoil that they would probably not also predicted shares to a three-year high.

Top of the list of things to worry about is the fact that the price of oil has increased more by 40pc year last with 30pc metals prices increase and an increase to 40pc in the cost of food.

Is a major concern for investors sitting on two years of gains, according to Citigroup, five six significant economic hardship global corporate profits took place shortly after a rise of 50pc or in the price of oil more. Otherwise, it immediately, it seems that we could be close to the point in which company profits get corrupted by the rising costs of entry.

Coincidence is not the same as causation, however. One of the reasons why oil prices have tended to precede the fall of earnings is that they are the reflection of an overheating of the world economy and tighter policy, that which puts the brakes on the profits of the business.

But what happens if the oil price spike does not reflect excessive but, at least in part, the result of political uncertainty and fears of a supply shock? In this case those who seek to understand the future path of corporate income tax could be better to look at some other fires red tend to begin to blink before profits South.

In virtually all the folds of revenue since 1970 has been applied by all the following: companies were generating unusually high profits assessed against the capital, they are employing in their businesses; the unemployment rate fell to levels where labour shortages are threatening a price spiral / salaries; interest rates are higher that the obligations of the Government to more long term that governments worry overheating; interest rates are well above the inflation rate. and profit forecasts are on the slide.

Today, none of these five conditions, which suggests that the earnings season to appear in the largest economy in the world, then that it is slower than the recent quarters, will always healthy positive.

The number of companies that produce positive surprises on the day of the results fell in each of the four quarters of video, but it remained for more than 350 to 500 in the last three months of the year. The expectation is always that earnings will be higher 12pc this quarter. With shares traded on a multiple historically low for these always increasing earnings per share, upheavals in March investors optimistic response seems rational.

tomrstevenson@fil.com

Tom Stevenson is a Director of Fidelity International investment. The views expressed are his own. www.Twitter.com/tomstevenson63

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Week ahead: back to black? Royal Bank of Scotland set to reduce losses

Interest rates have remained at 0 5pc therefore economists will be curious to see if other members joined, Andrew Sentance and Martin Weale vote location after the two voting rates last month, and how to close a vote.

After first estimates show economy Britain contracted by 0 5pc in the fourth quarter of 2010, observers will look to see if the revised GDP figures – published Friday - show any improvement.

Last month, the GfK consumer confidence measure sank to its lowest level since March 2009 and some economists fear that the reading, by Friday February could be even lower.

• Analysts will research to hear reflections of Hammerson health sale at retail and Central London, where company reports results - this week property.

The owner of Office and shopping centre of FTSE 100 should display profit before tax of £ 136 million and asset by 463% share, compared with 454 value p in the first half, according to analysts of Panmure Gordon.

Property company can also update on the progress of its proposals for a new Office development in the city and its pipeline of the evolution of retail sale.

Full-year results

Will, Hammerson, John Wood Group, Mondi

Interim results

Helphire, International Ferro metals

Bargaining update

Lancashire Holdings

Economy

No announcement

Meetings

No announcement

Full-year results

Croda International, Drax, Informa, London Capital Group, BMO Morgan Sindall

Interim results

Genus

Bargaining update

No announcement

Economy

Sector public borrowings net requirements

Meetings

No announcement

Full-year results

Capital Shopping Centres Gartmore, Place St James s, Travis Perkins, Henderson, Rexam

Interim results

Galliford Try, A & J Mucklow, RSM Tenon

Bargaining update

No announcement

Economy

Monetary Policy Committee minutes on interest and quantitative easing, Association rates mortgage approvals British Bankers' for house purchase

Meetings

No announcement

• Last month's RSA warned its profits for the year were likely miss Analyst estimates after an outbreak of claims caused by a severe winter. Operating profits are likely to lie between 600 million books and 630 m £ because the claims related to the weather in November and December were 142 m £ superior to normal levels.

• Centrica British Gas owner should make its annual record profits this week.

Analysts estimate energy Britain leader to announce profits before tax of £ 2bn,
on the previous year 30pc increase.

British Gas, the company that provides 10 m of gas and electricity, homes should have 740 million £ in profits last year - up to 595 m 24pc £ the prior year - despite one of the coldest winters in recent memory.

Full-year results

Royal Bank of Scotland, British American Tobacco, Centrica, living, National Express, primary health care insurance, Segro RSA properties

Interim results

Ashmore, Barratt Developments, Centaur Media, Kier group

Bargaining update

Words

Economy

The CBI distribution survey

Meetings

No announcement

• It's the beginning of a new Friday when International Airlines Group - the company formed by the merger of all the shares of British Airways and Iberia - announces its results for the first.

To make quite incomprehensible things, the results include BA nine-month and one year of Iberia - with the added twist that the merged company is reported in euro and BA is changing its end of a calendar year 2011.

Given this, plan - observers of the city were having lots of fun and games with their worksheets.

On a proforma basis, Morgan Stanley expects 2010 355 m operating profits € (299 m £), an increase of 913 m € in 2011 for the resumption of business travel.

• Eric Daniels to chair its last set of results as Chief Executive Officer of the banking group, Lloyds, should declare a profit measure 2bn 2010 year pre-tax £.

Lloyds results will be be closely monitored because they are considered as a good health of the British economy temperature check Bank operates the largest retail banking business in the country of any bank.

Investors will be watching closely what Bank said its exposure to Ireland losses.

Full-year results

BRIT Insurance Group Bank Lloyds, Rightmove, rank, William Hill, consolidated International Group Airlines

Interim results

No announcement

Bargaining update

No announcement

Economy

Consumer confidence GfK, first revision of GDP for the fourth quarter, fourth-quarter business investment figures

Meetings

Brewin Dolphin (AGM)

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Week ahead: Severn Trent paves the way for the results

Yellow big MITIE

Bargaining update

Synchronica

Economy

No announcement

Meetings

Origin Enterprises (AGM), pure water (AGM)

• After a nightmare of a few months, De La Rue will seek to obtain, on the road to redemption, Tuesday.Ticket printer saw its shares dive after the discovery of problems of production in July, with the company blame some of its Chief Executive James Hussey employés.Ancien fell on his sword and began looking for a new patron.On will wait for more explanation of the "quality and production irregularities" investors and clarity about their potential effects on profits futurs.De Street said profit before taxes for 2010 are likely to be a third lower than previous 95 million market expectations of £.

• Investors wait for news of how John Lovering restructure Mitchell & its key trade pubs group-level player.

The President of Debenhams-turned-pubs sold to offshore companies seek to reduce the debt, but the city will be looking for evidence of growth top line results per full year the Group page.

Analysts expect earnings before taxes 166 m £, earnings per share of 29.4 p.Certains in the city are speculating on the company to bring its dividend but is generally regarded as little probable.

Throughout the year results

Greencore, GW Pharmaceuticals, Mitchell & its

Interim results

Assured Carclo, Caledonia Investments, CML Microsystems, De La Rue, Hamworthy Homeserve, intermediate Capital Group KCom, Severn Trent, Telecom Plus Torotrak

Bargaining update

Card, DRS services data & search Clinton

Economy

BBA October Mortgage approvals

Meetings

Management of assets of BlueBay (AGM), Clinton (AGM), International Ferro metals (AGM) cards

• Johnson Matthey, car catalytic converters manufacturer and processor of platinum for industrial use, should publish half of 157 million pre-tax profits of £ this week, an increase of £ 109.5 m year précédente.Dans updating business day of July, the company stated that it had taken a "head start" pour l'exercice financier.Il benefits global increases in automotive production and new legislation on the tightening of emission Liberum .Analystes levels say that Outlook current company are probably 'more exciting than anytime in the last decade.

Throughout the year results

Avon rubber, Compass, future, Paragon Group of Companies, Superglass

Interim results

Scapa ffastfill, Hampson Industries, Johnson Matthey, McKay, securities Liontrust, asset management, United Utilities, digital zoo

Bargaining update

Sportingbet

Economy

First revision of the third quarter GDP UK, September services data, business quarterly investment

Meetings

• Giant copper Antofagasta issues results for the third quarter, which must contain a few surprises after society has published a report production, there are two semaines.Production copper rose 4 1pc 135,200 tonnes in the second quarter, 140,700 tonnes, mainly due to increased production at his Los Pelambres mine.Cumulative production in the first nine months of the year was 393,600 tonnes, in accordance with the expectations and 20pc over the comparable period in 2009.Profits are expected to be significantly higher than last year on enlarged production, and after that the price of copper has increased to about a quarter of last year.

Throughout the year results

Daily mail & General, Grainger

Interim results

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Allocate software (AGM), Biofusion (AGM), the provisional results of Hargreaves Lansdown (AGM) SEVERN Trent tomorrow will be followed by figures from the United Utilities the next day, kicked off the coast of a flurry of companies registered water over the next two weeks.

The companies all were repositioning in harsh conditions imposed by review Ofwat five-year award.

Of particular interest will be policy dividend Severn Trent - what is the last large companies announce its strategy.

Charles Stanley analysts expect to Severn Trent and United Utilities to reveal lower dividends.

They are forecasting half profit before taxes of 169 m £ Severn Trent, down from £ 208.2 m last year and m £ 163, descendant of 206 million from £, to United Utilities.

Dominic Nash, a utilities analyst Liberum Capital, has highlighted the uncertainty surrounding the sector concerned investors return on their capital.

This is probably stay until the whitepaper outlining reforms Government is published next summer.

All eyes will be on the situation in Ireland rapid development, with the warning Greece a bailout will not solve the debt of the euro since the focus of the market crisis is concerned will be simply move the Portugal and Espagne.Irlande has promised to publish a comprehensive four-year plan to bring its budget deficit to EU GDP in 2014, 3pc limit which will be examined closely when it was unveiled at the beginning of next week.

The main version of data will update its estimates for third quarter GDP e_SEmD national statistical office, but nobody expected Fireworks female paste with their initial estimate of 0. 8pc, economists forecasts, although construction revised data means 1. good shocking 2pc in the second quarter growth drops to 1pc.La British Bankers' Association is supposed to report Mortgage approvals remained around the mark 31,000 in October, the lowest level since March, 2009.

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Waves of oil price thanks to $110 for the first time in two years

German oil firm Wintershall has stopped oil production at its Sarah Libya photo oil field: AFP/GETTY.

Brent crude hit a maximum of $111.85 in London as he broke through the mark $110 for the first time since September 2008, so that benchmark crude for delivery April on the New York Mercantile Exchange rose more than 4 $ to $99.50 MIDI.

Major oil companies Western, such as the Italian firm Eni and Repsol-YPF the Spain suspended production in Libya, while UK giant BP began evacuating personnel.

Some analysts fear that NYMEX crude may break beyond its 2008 of approximately $147 record if political instability spreading to countries such as the Iran and Saudi Arabia.

Véronique riches-Flores, Societe Generale Economist said: "by pushing oil prices to highs of two years during the past 24 hours, Libyan riots gave a new dimension to the process of the revolution in North Africa."

She added: "resulted in the rapid spread of unrest throughout the region investors to imagine worse and become increasingly concerned about the risk of another oil shock in price."

Disorders are propagated Tunisia and the Egypt, but the Libya is the largest exporter of oil major to be affected by the crisis.

Hundreds of Libyans were killed in violent clashes between anti-government demonstrators and forces loyal to dictator Colonel Muammar Khadafi these days.

And as colonel Gaddafi refused to relinquish power, promising to fight for his "last drop of blood", the oil price continues to surge.

Howard Wheeldon, strategist over the BGC Partners said that he saw no price level inversion "long".

He added that market uncertainty caused by the tensions throughout the Middle East and the North Africa will grow Brent crude at $120 per barrel.

He said: "If the current political crisis will be enough to push the price above $147 a barrel level (90 pounds) record remains to be seen whether my opinion is that this will probably not tested yet."

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Spain's Co-op lesson for Cameron

The solidarity ethos has its allure given mounting research by the IMF and other bodies that the extreme gap between rich and poor was a key cause of the global asset bubble and financial crisis, as well as being highly corrosive for democracies. The GINI index of income inequality has reached levels not seen since the 1920s across the West.

Mondragon weathered the 2009 slump in machine tools, car components, and its other cyclical niches by putting 20pc of full staff leave for a year at 80pc pay, with names chosen by lottery. Some of its 256 co-ops froze pay, others took a 10pc cut.

The membership rule is that all new workers must put up €13,400 in share capital, which they can borrow from the group’s Caja Laboral, one of the few Spanish savings banks in robust health.

Profits are largely reinvested or sunk into research centres, though a chunk is spent on social projects. Worker dividends are paid into retirement accounts. The whole system is run by an elected Congress, known as "the supreme expression of sovereignty".

Such an egalitarian venture creates all kinds of problems. "We can’t offshore, so we have to keep climbing the technology ladder and improve core engineering here," said Mr Ugarte.

The group is stepping up investment in thermal insulation, and water purification, and grinding machines for the aerospace industry. Its machine tool arm Danobat has bought Newall in Peterborough.

If a co-op keeps losing money, it is given three years to come up a credible plan, but ultimately workers have to be retrained and found other work. Paid-up 'Co-operativitistas' cannot easily be fired. The wider headcount fell by 7,000 during the crisis, but they were outsiders in building.

So far none of Mondragon’s plants in China, India, Latin America or the rest of Europe have opted for co-op status. "We encourage them to be owners of their future, but they are afraid of the obligations that go with it," said Mr Ugarte.

Mondragon pays global staff the market wage, which creates an odd disparity with the Spanish mother company. Mr Ugarte said the net effect of overseas expansion has boosted jobs at home, still 84pc of the total.

America’s United Steelworkers has sought help from Mondragon in creating its co-ops, hoping to emancipate itself from a Wall Street that "hollows out companies by draining their cash and shuttering plants". Yet it is unclear whether the model can easily be exported.

Mondragon’s strength comes from the powerful clan ethos of the Basques, the oldest nation in Europe with a tightknit global diaspora (Nevada, Idaho, Argentina, Brazil) and a unique pre-historical language. Linguists doubt claims that Basque is linked to old Etruscan or Berber dialects.

Recent studies of DNA suggest that the Basque have a very close genetic profile to the Irish and Welsh, who also pre-dated the Celtic agrarian settlements of the 6th Century BC.

There is a dark side to Mondragon. The town is a cauldron of ETA terrorist sympathies. A socialist politician was gunned down in broad daylight two years ago, and the mayor has still declined to condemn the act. The Corporacion adamantly denies any links to ETA, insisting that it is "radically opposed to intolerance and any type of violence". There is now hope of a lasting peace settlement in any case.

"The Myth of Mondragon", based on fieldwork by anthropologist Sharryn Kasmir, argues that political tourists from all over the world have been willing to overlook the subtle forms of peer pressure and worker stress in the valley.

Yet the movement is still flourishing half a century after critics said it would never survive. It generates 3pc of Spain's industrial output of the Basque region and generates annual sales of €24bn. Almost 60pc of its heavy production is exported.

As chairman Jose Maria Aldecoa puts it, with a Churchillian twist: "the co-operative model is absolutely flawed, but it has shown itself the least flawed in a crisis of values and models".

Banking and Finance vacancies at Telegraph Jobs

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Surging orders in the US raise capacity worries

 The US economy has already begun to hit capacity constraints in some industries as business orders reach the highest level since the start of the Reagan boom in the early 1980s. Photo: PA

The Chicago purchasing managers index (PMI) for the Mid-West region showed business optimism touched a 13-year high in February, while the new orders component was the highest since December 1983.

The release came as New York Federal chief Bill Dudley said the outlook was "considerably brighter than six months ago" with signs of "broadening and strengthening" across the board.

Mr Dudley said it would be foolish for the Fed to "over-react" to the commodity spike, blaming it on "temporary" factors that are unlikely to set off an inflation spiral when there is still so much slack in the US economy.

The latest jump in food prices is largely due to bad weather, while the rising cost of oil costs is double-edged since it acts as a tax on disposable income. "The pass-through of commodity prices into core measures of inflation has been very low in the US for several decades."

However, the PMI survey responses suggest that the Fed may have misjudged the level of spare capacity, lowering its guard against inflation risks.

Among the sample comments are: "Costs continue to escalate", "Steel prices are increasing weekly", "My vendors have created such low inventory that now that business is picking up they cannot meet my demand"; "Hiring is now above pre-layoff levels, targeted to rock stars who make much, much more than previously eliminated managers"; or simply, "too many 'fricken' speculators in market causing higher prices".

The detail will be seized on by inflation hawks who think the safe "speed limit" for the US economy is lower than claimed, and that the Fed erred by launching a second blitz of quantitative easing in October.

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The eurozone is in bad need of an undertaker

Even if Chancellor Merkel wished to take this course – and even if the Bundestag approved it – the scheme would still be torn to pieces by the German constitutional court unless legitimised by radical EU treaty changes, which would in turn take years, require referenda, and face populist revolt in half Europe.

What the German people are being asked to do is to surrender fiscal sovereignty and pay open-ended transfers to Southern Europe, taking on a burden up to six times reunification with East Germany.

“If we pool the debts of the countries in the south-west periphery of Europe, we are blighting our children’s future: the debt levels are astronomic,” said Hans-Werner Sinn, head of Germany IFO institute.

Any attempt to prop up the status quo will cement the current account imbalances of EMU’s North and South, to the detriment of both sides.

“I doubt that the current leaders of Europe fully understand the economic implications of their decisions. They are repeating the mistakes that Germany made over reunification,” he told the Handelsblatt.

Transfers to the East are still running at €60bn a year two decades after the fall of the Berlin Wall. There has been no meaningful East-West convergence for the last 15 years.

To those who blithely argue that EMU is a good racket for German exporters because it locks in Germany’s competitive advantage, he retorts that a trade surplus is the flip side of a capital deficit. Germany has seen €1 trillion – or two thirds of its entire savings since 2002 – leak out to fund the EMU party, gutting investment at home. This is toxic for Germany too.

It is no surprise to eurosceptics that Europe should have reached this fateful point where leaders must choose between the twin traumas of EMU break-up or giving up their countries. Nor is it a surprise to an inner-core of schemers within the EU system, who have always calculated that they could exploit such a crisis to catalyse political union.

However, it is a big surprise to Europe’s leaders, and they do not know what to do about it.

Chancellor Merkel and President Sarkozy seem unwilling even to boost the firepower of the European Financial Stability Facility, though in this they may be right.

The drama has moved beyond the point where headline "shock and awe" pledges can achieve anything. Markets are already looking beyond the debt-stricken periphery to the creditor core, fearing that bail-out costs will themselves create a chain of contamination. Credit default swaps on France have risen above 100 basis points, where they linger stubbornly.

A Fitch report on the European Stability Mechanism (ESM) said the new rescue fund “could result in lower ratings” on the risky sovereigns because the EU would have instant debt seniority, leaving private bondholders exposed to the risk of bigger haircuts. To make matters worse, debt restructuring would depend on the whim of politicians. The incoherence of the rescue machinery itself is feeding the debt crisis.

So as EU leaders flounder, the task of saving monetary union falls to the ECB. Yet it too has declined the burden, refusing to go nuclear with bond purchases. “Each country needs to be held responsible for its own debt," said Germany’s monetary avenger at the ECB, Jurgen Stark.

He was joined last week by Mario Draghi, Italy’s governor and candidate for ECB chief, who said it was not the job of a central bank to carry out fiscal rescues. “We could easily cross the line and lose everything we have, lose independence, and basically violate the Treaty," he said.

Indeed. Maastricht forbids the ECB from buying the debt of eurozone states except for specific purposes of liquidity management. But this saga no longer has anything to do with liquidity. Southern Europe faces a solvency crisis.

The ECB has postponed its threat to pull away the lending props beneath the banking systems of the PIGS. Beyond that it has limited itself to tactical strikes in the small illiquid debt markets of Ireland and Portugal, buying enough bonds to ram down yields and burn a few hedge funds.

The effect has faded within days. It had little impact on Spanish and Italian bonds in any case. Spanish 10-year yields reached 5.45pc last week, far above 5pc level where compound arithmetic comes into play.

At the end of the day, debtor governments still have to persuade Japanese life insurers, Mideast wealth funds, or French and German banks, to put up real money to buy their bonds at a bearable interest rate.

Credit Agricole said last week that it would hold back at next week’s auction of Spanish debt because it is not yet clear whether the ECB will back-stop the country. “The risk is simply too large for our appetite,” it said.

So we drift on with rising yields into 2011, when Portugal must raise €38bn, Belgium €85bn, Spain €210bn, and Italy €374bn – according to Goldman Sachs.

Europe’s leaders still seem to hope that brisk global growth will lift everybody off the reefs. That too is wishful thinking. Recovery brings its own set of problems, and will make intra-EMU tensions even worse.

Germany will hit the inflation buffers and force the ECB to raise interest rates before the trickle down benefits of trade have begun to make any difference in the closed economies of the South. Floating Euribor rates that determine 98pc of mortgages in Spain have been shooting up already, even as wages fall. The vice is still tightening on Spain.

The reflex of the EU elites is to blame this structural mess on lack of statesmanship.

“There is something surreal about the unfolding financial crisis,” said Stefano Micossi from the College of Europe, the sanctum sanctorum of the European Project.

“Leaders grudgingly do what is needed to prevent disaster at the last minute before it is too late, and the next minute they go back to the behaviour that brought them against the wall in the first place. The eurozone is in bad need of a psychiatrist,” he wrote at VoxEU

“If the eurozone follows this path, either all of the sovereign debts become German public debt, or the euro will collapse,” he said.This is admirably candid in one sense, but is today’s crisis really just a failure of leadership? Was EMU not dysfunctional from the first day? Did it not inflict negative real interest rates on Club Med and Ireland in the boom years, driving them into distastrously pro-cyclical policies?

Did it not lock in chronic imbalances between North and South? Has it not left victim states trapped in debt deflation or slumps which have gone too far to respond an austerity cure, and from which there seems to be no escape on terms acceptable to Germany?

Should we blame the current hapless leaders, or the guilty men of Maastricht who created this doomsday machine? If the project itself is rotten, surely what the eurozone needs most is an undertaker.

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