Oil falls after the earthquake, in the Japan the Saudi crackdown

The Saudi police form a point of control, inspection of the cars near the site where a demonstration should be held in the capital Riyadh Sauid Friday. Photo: AP

Brent crude in London fell $ 3 to $112.39 at noon while in New York oil crude withdraw less than $100 a barrel as traders bet that a huge earthquake in the Japan would reduce imports of crude oil in the country.

"Demand for oil [at Japan] could be lower, at least temporarily, because of the earthquake," said Commerzbank analyst Carsten Fritsch.

"After China and the United States, Japan is third largest consumer of commodities in the world and is dependent on imports for almost all products."

The largest earthquake to hit the Japan since the beginning of the records 140 years ago struck the northeast coast, triggering a 30-foot high tsunami that swept away everything in its path, including homesboats, cars and farm buildings.

Future crude also fell as Saudi Arabia launched a security operation mass in a show threatening force to deter the demonstrators of a planned "Day of Rage" to insist that the democratic reforms in the largest exporter of oil in the world.

Illegal demonstrations were to start after Muslim Friday prayers at noon, but as the mosques emptied were there no sign of gatherings, with men of security staffing positions of control in key locations in several cities.

OPEC Friday warned that prices could curb demand later this year, as oil cartel only slightly improved its estimate of growth in world demand for 2011.

The Organization of petroleum exporting countries said that it was raturés in the growth of global oil demand of 1.44 m barrels per day (BPD), or 1. 67pc to 87,83 m barrels this year. That represents only a revision to the marginal increase of 1. 62pc.

Gold was on track for its biggest weekly decline since early January, down $30 since hitting a lifetime of high $1,444.40 an ounce troy Monday. Spot or a $units an ounce in London in early afternoon trade.

"Gold is trading oil offshore, but helps the earthquakes and the tensions in the Middle East to the Japan, said Andrey Kryuchenkov, an analyst at the Capital of VTB." Markets are also nervous with a day of rage in Saudi Arabia. »

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Oil could hit $220 per barrel on the fear of the Libya and Algeria, cautions Nomura

Barclays Capital said 1 m barrels of Libyan output is "locked in", with the other 0.6 m at risk. While Saudi Arabia may respond by raising the output, it takes time and its oil is not a substitute for "Sweet Crude the Libya".

The crisis escalating triggered falls more on the global stock exchanges. Wall Street was down 1pc in trade at the beginning and the FTSE 100 1. 2pc. The Dow Jones index has shed more than 300 points during the three days of 12,075.

Nomura said a closure in Libya and Algeria would reduce global 2.9 m b/d supply and reduce the ability of spare OPEC b/2.1 m d, comparable to levels at the beginning of the Gulf war and worse than during the 2008 spike when prices hit $147.

Two price shocks preceded by - or triggered - a recession in Europe and the United States. Fatih Birol, Chief Economist, International Energy Agency said the last rising already become prices a "serious risk" for the fragile economies of OECD block.

Some analysts fear the underlying image is worse than officially recognized doubting Saudi claims of alternative ample capacity. Wikileaks cable cited comments by geologist of Saudi Aramco oil giant that Kingdom reserves had been exaggerated by 40pc. A second cable cited U.S. diplomats asking if the Saudis "more empowered to make prices downwards for an extended period."

Report from Nomura, who consider the scenario catastrophic to a real crisis in the Gulf, said recent oil price shocks have shown a pattern of three floors, with a final blow-off price in the final phase. The current crisis is the first step.

Soaring oil prices create a dilemma for banks, nasty because they inflationary if caused by the robust global growth, but the deflationist if caused by a tightening of supply which acts as a tax on consumption of nations. Big oil exporters tend to save additional revenues for first price spikes, so the initial effect is draining global demand.

The current image contains elements of both, with an extra touch of liquidity created by the US Federal Reserve leaking into the global system and play havoc with commodity prices.

Secretary of the Treasury Tim Geithner told us Wednesday that the global economy is relatively stong to "manage" the oil shock, insisting on the fact that central banks "have extensive experience in the management of these things."

The European Central Bank (ECB) responded to skyrocketing oil in July 2008 by raising rates even if the Germany and the Italy were in recession at that time there. Nout Wellink, the Governor of Dutch of the ECB, said that this was an error policy.

Circumstances are different this time still also dark. ECB chief Jean-Claude Trichet scored last month that the Bank will be "look at" the hump of prices in the short term, but the ECB rhetoric has since then harden. Fed doves will probably give more weight to the deflationary risks.

Jeremy Leggett, a leader of the task force industry UK peak oil and energy security, says the crisis Mid-East "shows the extreme fragility of the world system." People don't realize the proximity we a potential jump if that agitation reached critical mass in OPEC countries enough. "Governments must develop contingency plans and get cracking on proactive steps while we still have time", he says.

Charles Robertson in the Capital of the Renaissance, said concern actual harass investors is what happens in oil-rich Province Saudi Arabia Eastern home of Kingdom restless minority Shi'ite. The Saudis produced with FP6 11 of world production, but a more significant share of exports.

It does y potential serious tensions and not only among the Shiites. High unemployment and the youth bulge means disorders could be anywhere in the country. If Saudi Arabia or Iran is gobbled up, we have a serious problem. »

On Wednesday, the Saudi King Abdullah has unveiled $restriction of social aid for his people.

Energy & Utilities and positions vacant Oil & Gas jobs Telegraph

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Oil falls to $113 OPEC, deals with the output

Sheikh Ahmad al-Abdallah al-Sabah, Minister of oil to the Kuwait, was declared to journalists that OPEC was "consultations on a possible increase in output", but said no there was no decision for the group to produce still on quotas.

However, the Organization has differences on the increase in supply. The Iran, which holds the rotating Presidency of OPEC, saying: no there was no need a boost in production as consumer concerns over supply were "psychological".

An increase in the official release by OPEC would signal the willingness of the group to put a cap on the price and keep the global economic recovery on track.

Oil doped high to two and a half years, last month after the revolutions in Tunisia and the Egypt and the Morocco to Oman protests. A mixing of the civil war in Libya has left many two-thirds of the country's oil production, or 1 m barrels per day (BPD),.

Saudi Arabia, the world largest oil exporter and home to most of the spare capacity held by the Organization of the country, oil exporters is pumping about 9 m barrels per day, about 1 m bpd above its quota.

US crude, which closed above $105 on Monday - the highest since September 2008 - increased to $1,2,5,8 Tuesday after the slide previous 1.29 $ $104,15.

However, who had been hunted $ 1,440 per ounce at one point yesterday in a flight to safety, also rebounded to $1,434.42 in London after falling to $1,428 in trade at the beginning.

Nerves on the Libya returned when Colonel Gaddafi sent combat aircraft to strike rebel forces behind the Eastern war front lines as he rode his offensive counter.

High oil prices pose a threat to the fragile economies, including Britain. "With fiscal tightening and food, the price of oil prices are a real threat to the United Kingdom" said Julian Jessop, Economist at capital economics.

The Council expects this country around a recession yet, but predicted just 1. 5pc growth this year and next.

Rising petroleum costs have put the British Government under pressure to increase in the duty of the scrap fuel and Chancellor abandoned its wider tip that there could be a help for drivers in the Budget.

"I'm looking, of course, the fuel duty," he said yesterday. "I see what I can do to help."

In United States, the White House is considering tapping the country strategic oil reserves if prices continue North. "We are looking at options." The question of reservations is one before us, said William Daly, Chief of staff of the President Barack Obama.

Last America operated its reserves, which hold about 727 m barrels per day, Hurricane Katrina in 2005. Analysts at Deutsche Bank reduce oil. Price of gasoline is close to a maximum of two years of $3.81 per gallon, according to AAA, an organization of U.S. automobile.

A version co-ordinated by the OECD economies strategic oil stocks is not necessary yet because that the interruption of oil supplies caused by the uprising of remains of Libya limited worldwide, the International Energy Agency (IEA) said Monday.

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Martin Wheatley - will be Hong Kong loss be gain of London?

Wheatley is clearly a praiseworthy choice, given his current role as financial Hong Kong man running watchdog and his previous role as Deputy Chief Executive of the London Stock Exchange in the Dame Clara Furse, just sit on the small panel offer a choice of George Osborne.

But if everything seems too good to be true, it might just be. My sources tell me that during their time together, the pair was not quite what one might call friends, and Dame Clara that work with him a little difficult. While it is really only favourable to its appointment?

It seems also that his time in the old colony British – he has been there for six years and I will withdraw spring – is far from a walk in the Park.

Reports at the time wherever he announced his departure from the regulator of Hong Kong underscored the fact that people were therefore not satisfied with his work to deficit Lehman mini-liaisons that they burned her image outside of Office Agency regulatory and blasted music funeral Chinese outside.

Loss of Hong Kong will perhaps gain London after all?

You can contact James Quinn on the opinions expressed in this column, email him at mailto:james.quinn@telegraph.co.u

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Markets rise on hopes for agreement to bail out the Greek

Germany, with an electorate angry on the nation to bail, juicy contributions previously suggested that Greece could restructure its debt.

The Germany was on Tuesday, said to consider to waive its claim that additional help must be provided that the holders of bonds of the Greek Government soon share some pain via a debt restructuring.

If so it would pave the way for "The Greece troika" creditors - the European Union, the Monetary Fund International and the European Central Bank - to agree more help for the responsible countries of debt after €110bn year last package (£ 96bn).

Developments have cheered investors, although reports have suggested that a restructuring of the debt was still on the table in the long term.

The FTSE 100 index of blue chip of Britain, increased points 51 12-0. 86pc - 5,989.99 while the euro rose above $1.44 to its highest level in three weeks.

Germany, with an electorate angry on the juicy contributions of the nation to bail, already suggested that the Greece could restructure its debt, perhaps by extending the terms of its loans. However, the ECB is vehemently to even this restructuring "soft".

The absence of agreement was worried markets, particularly as the IMF will not release its share of the last tranche of aid billion € because of the Greece unless that funding the nation's long term seems well established.

Fitch rating agency yesterday cut rating credit of Cyprus by three notches, citing the effects of the crisis of debt in nearby Greece.

Separately, a report of Ernst & Young estimates that Ireland, another beneficiary bail, emerge not recession until 2012, and that its debt holders may suffer losses.

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Medtronic Smith & Nephew's new name

However, Mr. Gordon said: "we now see increasing barriers to sustainable outperformance. "These barriers include loss reported in the second half of 2010, exceeding the Bank Commission independent, mixed UK growth, falling prices of real estate, continues financing and regulatory uncertainties, PPI claims, base rate LIBOR spread expansion set and the effect of"glass ceiling"of 40 FP6 from the British Government".

The analyst concluded that Lloyds remains first and foremost, "just a story cost and disability". Accordingly, Lloyds lose 1½ to 68.1%.

Mr. Gordon prefers Royal Bank of Scotland, decrease of 0.4 to 42.2 percent and Barclays, which gave up 4.4 percent 306.6

Elsewhere in the sector, HSBC has lost 703½p despite RBS "buy" upgrade 6.2 Says RBS analysts: "financial delivery of HSBC in the United States and Asia should improve that retrieves the growth the country economic and policy rate increases." He also enjoys the deterioration in the relative cost of funding for many European competitors. Strategic issues remain, but should not prevent a re-rating of fairness.

Autonomy took the wooden spoon after a Standard & Poor (S & P) downgrade to "hold". S & P said that he saw always the prospect of an acquisition as a positive catalyst probably this year. However, the absence of a positive pre-announcement by autonomy so far, the results of the fourth quarter of 2010 may be consistent or even just below consensus. As a result, the market will be be left disappointed. P £ 14.65 78 dragged autonomy.

GlaxoSmithKline tempered p 20-£ 12.05 after it said it will record a charge of £ 2 for the fourth quarter, MD effectively eliminating profits, as he settled some debts for Avandia diabetes drug-related and sales practices.

Mining stocks were generally disgrace as metals prices headed southward. Kazakhmys has waived 24 p to £ 16,16 while Xstrata declined 18½p to £ 14.76.

Among precious metals mining companies, African Barrick Gold cast a 10½-564 p despite Morgan Stanley increases its price target to 750 p a share. Broker has enhanced its price gold long term forecasts by 21pc $ 750 an ounce to $905 an ounce. In the doldrums, Fresnillo lost also 53% to £ 14.39.

The London Stock Exchange (LSE) slipped 1 at 880½p. Although Citigroup downgraded to "sell" shares, the broker has raised its price target to 810 p. "We believe that current assessment fully reflects the strategic progress that LSE has to this day and its potential for future growth," said analysts to the broker.

More positive tack, Vodafone has received a boost by Nomura raising his price target to 220 p. Broker pointed out that, in the tour of the company, Andy Halford, CFO, stated that iPhone deal from Verizon Wireless would be extremely well received in the U.S. market.

Actions have also benefited from renewed chatter that the Telecommunications giant is close to agree on an agreement to sell its stake in the mobile operator French SFR for 7bn €44pc billion €. Friday, the CEO of Vivendi said it would soon be able to enter into talks with Vodafone to buy the rest of SFR, as it is now weeks away from complete sale of. 8bn $ 5 its 20pc stake in NBC Universal. Vodafone reaches 3 175 p.

Smiths Group has jumped to the top of the "VIP" following confirmation, he rejected one. £ 2 5bn Apax offers for its medical devices division. Actions reinvigorated up to 99% to £ 13.64.

Rumours of renewed bid RSA has given a lift. The shares rose 1 to 134.9 p.

Among the second cruise, Michael Page and Hays passed on the back of an optimistic note from Morgan Stanley. David Hancock, Morgan Stanley analyst said: "We see a good entry point in our top pick staffing... with stocks having a pause for breath in 2011 despite commercial encouraging updates." Michael Page has acquired 19½ to 528 p while Hays added 1.4 to 126.8 p.

Salamander energy established 9.7 282.1 chosen as traders percent up on the fact that Charles Jamieson, Chairman, and two non-executive directors purchased a significant amount of shares later Friday. The company also announced this morning that spud a new well in the North is the Thailand.

Property company stir-fry Minerva 13 100 percent as merchants obtained its first opportunity to respond to the confirmation that the company received a takeover approach. Possible contenders are expected to include U.S. private equity giant Blackstone and British Land, down 7 to 520½p.

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Markets world rally, dollar slides on the federal stimulus plan Reseve

FTSE 100 index of London, which had greatly increased in the morning, closed up to 113 points – almost 2pc - and a maximum of 28 months of 5863 and US stocks opened sharply higher.

Dow Jones in stir-fry to a maximum of two fresh years, earning more than 170 points - or 1. 5pc - 11,386 - yesterday it 0. Pink 2pc after the Fed describes his plan binding purchase larger .the S & P 500 gained 1. 3pc and technology-rich Nasdaq was increased by 1. 2pc.

US retailers reported strong sales in October and has helped to lift shares with gap until early commercial 7pc 4pc Macy.Preuve U.S. shoppers were more spending on traders assisted clothes get rid of an increase in the number of new claims for unemployment higher than expected.

Actions around the world was supported by the decision of the Federal Reserve to introduce quantitative easing most of creating more money and to increase the supply of money in the economy - which will need to buy $grant to Treasury bonds a month until next June.

"We believe QE2 will be more efficient that investors realize", Andrew Garthwaite, London head of global strategy equity Credit Switzerland wrote in a report. "Remain us overweight actions.»

Positive feelings have lifted the other major awards European and Asian .the ' Germany DAX rose 1 77pc, CAC-40 France 9pc 1 and 2 2pc, despite pressures on exporters the dollar fell below the level of yen 81.Hong Kong Hang Seng added 1 6pc and Shanghai Composite Japan Nikkei China closed until 1 9pc to a maximum of seven months of 3,086.94.

Although the prospect of more money into the financial system has been a boon for stocks, dollar tombé.Le dollar is at its lowest level since December 2009 against a broad basket of currencies and secured against this index Thursday 1pc.

Finance Ministers in emerging as China and the Brazil criticized the Fed stimulus plan and said that additional supply of dollars of investment could lead to bubble in their country.

Sterling is increased to its highest in nine months against the dollar - briefly striking $1.63 - Thursday after the Bank of England held the interest rate and unlike conserved United States its programme for the purchase of goods organize according to the economic recovery signs United Kingdom is on the right track.

The pink 1pc of euro against the dollar as investors has increased tolerance to risk on inflation and growth forecasts in the euro area after the departure of the European Central Bank reference interest rates unchanged as expected.

In London, rising stock prices was assisted by a 6 1pc miner BHP jump, partly due to the decision of the Federal Reserve and the rest the outcome of the Canada block its $remained hostile to group potash fertilizer.

Other minor grew strongly and with the rise of Natural Resources, Xstrata, Kazakhmys and Rio Tinto between 5 1pc and 6 9pc.

Good new business has also helped the man mounted 14pc sentiments.Groupe upwards classification FTSE after that most large listed company hedge funds world beats its own first half profit forecasts and announces the resumption of the assets of the client.

The firm, which saw eight straight quarters of net, said customer assets rose to $40. 5bn at the end of September. against estimates of $39. 5bn in September.

Unilever, the consumer goods group increased by 5 3pc after an optimistic statement in its ability to raise prices and to reduce the cost of commodity prices higher that it corresponded forecasts with a counter rising sales of third quarter.

"Consensus beating results continue to be favourable to the market with the authorities in fact appear to be prepared ready and able to support the economic recovery, which is good news", Henk Potts, Barclays Wealth, equity strategist said.

The rise is tempered by a 4 6pc fall at Rolls Royce after Qantas Airways flights suspended its fleet of Airbus A380 after the failure which led to an emergency landing at Singapore Rolls-Royce Trent 900 engine.

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Miners push FTSE 100 through 6 000

From minors, a large part of the market activity was conducted by a raft of updates to trading, bargain-hunting following recent falls, and rumours of an imminent resolution of disorders of the debt of the Greece. The FTSE 100 climbed 76.2 points to 6,018.89, while the FTSE 250 jumped 159.06 to 12,055.15 points.

There were only four large-cap laggards, with the suffering Group BG of the sharpest fall, sliding 23 p to £ 14.12½ such as oil and gas producer said a weak production growth prospects.

With the market on the best form, thoughts of traders have been in climates sunny with gains travel agencies. tui travelrose 4.4 248 percent, as the owner of first choice, said that the demand for holidays in places like the Spain, the Greece and the Turkey had offset the impact of the political upheavals in Egypt and Tunisia.

But it is another story for Thomas Cook, which was still under a cloud revealed Monday that the impact of unrest in the Middle East and North Africa would be worse than expected. In this spirit, Citigroup analysts cut their rating on the tour operator mid-cap to "hold" from "buy."

After increasing their rating in April, Citi has recognized that following Monday leads their "optimism has been moved" and they continued to be bearish on the medium term for the tour of exploitation sector prospects.

"Sense seems depressed and, while it is possible an improvement in the short term in the trade and the price of the shares, it is difficult to see a fundamental re-rating of these actions, said the broker." Thomas Cook slipped 3.7-162 p.

Intercontinental Hotels selected up to 49 percent to £ 12.98 because it reported strong growth in the country and raised the possibility of better bookings and higher rates of room for the rest of the year.

Return to the highest level, Imperial tobacco was in demand, up to 67% to £ 22.24, after the investors cigarette maker surprised with a 500 m £ share buyback and higher dividends.

The count, too, was Schroders, which took a Basinger week last on its results of the first quarter in which he unveiled an unexpected loss on investments. But analysts at Numis count that the reaction has been exaggerated and increased their rating on the "buy" investment manager "add". Schroders advanced £ 14.19 64 p.

Not far behind was wise, who took a turn in the spotlight of the takeover. His peers of bundled software, Misys, had checked until Monday in its attractions of takeover talk. Tuesday, she put on a another 4.7 to 348.2 p while Sage reached 10.2 296 p as whispers of the towers that could be awaiting a suitor American or European in the wings, with a price of 450 p on the lips of the gossip of the town.

Among the companies of support services, business security G4S gained 5.2 percent 278.8 as he posted an increase in revenues in the first quarter. During this time, living on 5½ to 741 p as the Group of outsourcing, which - among other things - the licensing of TV for the BBC and provides criminal record Office, at home said it should perform well in the second half of the yearsuch as the contracts materialise.

Last week, the subcontractors had slipped in the speculation that the Government could evolve back plans to use the private sector to deliver public services.

But said capita possibilities in the central Government were emerging that it seeks to provide the public service reform.

Among the second liners, there are also a raft of updates for resellers ploughing through trading. Morgan crucible won 15 p 329.1 after the manufacturer of industrial materials said he saw a strong recovery throughout all of the countries it covers.

Chip manufacturer CSR advanced 23.4 p 391.4 that he has highlighted an increased in the smartphone market presence. After its potential partner of fusion, Zoran, Monday reported to the sales slowdown, CSR has reiterated it was "assess the implications".

Furthermore, N brown reached 12.3 298 p as home shopping business of clothing if it were the trial three shops this year for its mark "simply being" said.

Gaining ground, was also the Premier Foods. Citigroup has increased its rating to "buy" from "hold", saying the manufacturer of Mr. Kipling cake, which has sold off the coast of two of its companies to reduce its debt pile, had "extremely better prospects." That helped advance actions 2.08 p 34.83. But at the other end of the spectrum, the pace is 59.9 — 39. 2pc - 93 p after the author of set - top boxes has issued a profit warning.

Lower market, xcite Energy fell 79-237½p. Despite oil Explorer confirming that its North Sea oil field had commercial value, analysts were disappointed by the low oil provided estimates.

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Oil prices keep rising on the Libya and Bahrain uprisings

Shia protest at Bahrain (see above), and there is concern that it could spill over to the minority of Shi'ite in the Eastern province of Saudi oil producers.  Photo: REUTERS

At least three oil companies stop output in the third largest producer of Africa, pump 1.6 million barrels per day (BPD) or almost 2pc global supply resulted in violent clashes in Libya.

Disturbance mark the first reduction in the supply of oil resulting from a wave of protests that swept Middle East and North Africa oil producers.

Investors fear for the potential impact on the flow of oil from first exporter Saudi Arabia if she suffers from similar problems.

In addition, International Energy Agency (IEA) Executive Director Nobuo Tanaka said that the price of oil over $100 per barrel for the rest of the year could tip the economy back in a repeat of the economic crisis of 2008.

"We are very concerned about the situation, it is a risk for the stable supply of petroleum," he said yesterday at the International Energy Forum in Riyadh.

US crude rose high sheath $ per barrel, the highest level since October 2008. Business morning in London, the April contract had trimmed gains to trade at $95.93, up to 2 5pc on the end of last night.

Brent crude, which is trade even more elevated the U.S. price jumped $ 1.26 $107.04 per barrel. Monday, Brent hit a 2 and half year high of $108.70.

"Even if the Libya stops completely, there is not a question of supply." "But brut (U.S.) could go to $100, taking into account the potential of this contagion to spread to Saudi Arabia," said Jonathan Barratt, CEO of Sydney freight Brokerage Services.

To date, events in Saudi have been low key. But Shia majority in neighbouring Bahrain are to protest against the Government of Sunni and fears it could spill over to the minority Shi'ite living in oil producers is the Saudi province.

"The importance of the Bahrain is perhaps being currently weakened." While not a major producer of oil, impact of Bahrain on the oil market is reflected through its importance in Saudi Arabia, "said Barclays Capital Helima Croft and Amrita Sen analysts in a research note.

Supplies of natural gas also felt the impact of the Libya disorders as a pipeline carrying Libyan gas in Italy has been closed.

Brent crude has increased by almost 5pc 12 so far this year. U.S. crude is just below the year 5MC but it is more than $50 below its 2008 high of $147.27.

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Minor fall as head of FTSE 100 low-5600

The FTSE 100 was 90.54 - or 1. 55pc - 5,765.80, the largest FTSE 250 market is off the coast of 11,786.02 125.60 after trade with China data showed an unexpected fall in copper imports last month.

Joshua Raymond, chief strategist of the Index of the city market, said: "the FTSE 100 completed a new low of two and a half months after it was deepened by weakness in mining of heavyweight after copper imports in China 3pc lower." Ongoing concerns on sovereign debt, the Greece and the euro zone, also weighed on sentiment trader.

"A continued bearish movement next week could certainly open a frequency of visit of the low 2011 from just below the mark of 5 600."

Undermine Troubled Eurasian Natuaral resources led retirement yesterday, tumbling 60 - or 7 48pc - 742 p on speculation that a third independent Director prepares to leave the Council of the Corporation in corporate governance concerns.

Platinum producer Lonmin also fell 84 p to £ 15.35 after cutting his objective for the production of 2011 and warning that it will exceed cost orientation. Last month, a strike at its Karee operations prompted mining company return 9 000 workers.

Xstrata and Rio Tinto fell 32 percent to £ 13.59 and 95½p to £ 41.87 respectively as the Australia closer to controversial its mining tax new 30pc accepting. Australian Treasury provides that the tax will take a. 7 $ 7bn (5 billion of £) in its first two years, helping the budget to return to surplus by fiscal 2012-2013. In addition, Vedanta Resources tempered also 67 p to £ 20,49, while Anglo American decreased 97½p £ 29.88½ and Kazakhmys p 34 to £ 12,47.

Mining and commodities, AstraZeneca fell 66½p to £ 31.63½ after Barclays Capital analysts cut their rating on the pharmaceutical group of overweight to underweight.

In a note of broad sector, BarCap has warned the Outlook for the pharmaceutical sector watched "tough", a prediction that sent shares in rival GlaxoSmithKline down 18½p to £ 12.76½.

"Matter of optimism for the pharma sector grew up as manufacturing output measures decreased by peaks raising concerns growth and lead to a switch in defensive sectors," he said. "" "". Growth prospects remain low. Productivity pipeline holds the key to perceptions as late R & D newsflow builds against relatively low expectations. »

Actions Whitbread sliding p 35-15 h £ 10 after the Leisure Group confirmed that it planned to shed nearly 130 Heads of its division of hotel Auberge first budget. La figure half deletions of 260 jobs speculated first thing yesterday. Whitbread said that no there was no change to its planned expansion of the Premier Inn this year.

At the other end of the table, Essar energy advanced 6.8 p 426.9, followed by Associated British Foods, which rose from 15 percent to £ 10.43 and Johnson Matthey, up to 4 p to £ 19.88.

Shares in ARM Holdings - the designer of smart technology is used in many smartphones in the world - also won 1 to 567½p with the traders, citing an optimistic note on the company by Redburn partners.

Redburn said. "Despite the fact that it is a popular commercial part on 40 times 2012 PE, arm is still that most valuable opportunities for fairness, a stock of real growth unequivocally and therefore a"buy".".

Among the mid caps, Hays has increased 108.2 percent on speculation that it is a takeover target of £ 2 for rival Switzerland Adecco 3.1 MD.

Adecco, more recruitment of the world leading company, refused to comment on the reports but said interest in the pursuit of small bolted deals.

Elsewhere across the FTSE 250, sports JD has an another 74 - 7 88pc - 933½p. On Thursday, the retailer of sports falls 40½ after a downbeat trade update where it has kept its cautious Outlook for the rest of the year.

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Oil prices rising soaring to $120 per barrel Middle East concern

At the same time, light crude sweet from NYC in April, known as West Texas Intermediate (WTI), rose to $103.41, a level last seen in late September 2008.

"Oil prices continued to surge higher Libya events dominated headlines and the oil market", said Westhouse Securities analyst Dave Hart.

"Leaving the country of high-quality crude is being significantly affected due to the exodus of foreign personnel."

Brent jumped high $119.79 per barrel at the beginning Thursday, return to approximately $113.53 through the middle of the morning. NY crude was higher at $100.72 $2.67 per barrel.

The King of Saudi Arabia last night announced $36bn (£ 22bn) additional benefits for his people to try to stop the wave of uprisings Arab extends to largest exporter of oil in the world.

Market analysts warns also Brent crude could hit $220 per barrel.

Nomura said oil prices products team is likely to unexplored highs of storage for the next few weeks if political unrest spreads in Algeria, reduction in capacity of world reserve margins thin light just before the first Gulf war.

Prices on the part of the world and copper fell for the fourth consecutive day, as investors reduce their exposure to risk while the sanctuary of gold, Swiss francs and US Government bond pink price.

Disturbance arising from the revolt in the global exporter No. 12 Libya cut at least 400,000 barrels per day (BPD) output bpd countries 1.6 m, according to Reuters calculations.

Soaring oil prices threatens to put an end to the recovery in advanced economies and add other inflationary pressures in booming emerging markets.

According to UBS, an increase of $10 of oil prices will shave 0.3 percentage point by global growth.

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Oil rises to $104 per barrel

Brent crude rose above $ 104 per barrel after Israel says two warships Iranian expected to navigate through the Suez canal in Syria road.  Photo: AP

Gross Brent rose above $ 104 per barrel later Wednesday and stay there Thursday after avigdor lieberman, Israeli Foreign Minister said two warships Iranians planned navigate through the Suez canal in Syria road.

Apart from the fresh tensions Israel-Iran oil traders concerned also stirring the Bahrain where the riot police killed demonstrators and the oil-rich Libya.

They fear the kind of disturbance that reverses the Presidents of the Egypt and the Tunisia could extend to other Middle East oil-producing nations.

"Trouble in the Middle East are on the agenda of events at Bahrain and Saudi have placed in barrels of political tensions, said Rob Montefusco, a financial Sucden oil trader."

Ken Hasegawa, Manager of Newedge broker Japan, derivatives says oil could easily hits $105 today, according to economic data out of the United States later.

Mr. Lieberman called the move later "provocation" by the Iran whose Israel sees a significant threat to nuclear weapons program OPEC nation.

However, the Suez Canal by the Egypt Authority said today was "informed of the cancellation of two regular journeys of two Iranian warships.

Channel, official who refused to be named, "no new date has been set to cross the Suez in convoy south from the Red Sea", told Reuters.

Military vessels passing through the channel must first obtain permission from the Ministry of defence and the Ministry of Foreign Affairs.

The official identified vessels like Alvand and Kharg Island, said that ships were near the port of Jeddah, Saudi Arabia Red Sea. Shipping experts said that the Alvand frigate Kharg refueller.

Last time, Iranian warships crossed the channel is in 1979.

In January, disorders in Egypt helped push Brent over $ 100 per barrel. The last approach by Iran between five days after the Egyptian President Hosni Mubarak resigned and Israeli leaders have expressed concerns that the Iran may operate the transition period.

Energy & Utilities and positions vacant Oil & Gas jobs Telegraph

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Nervous investors quit equity funds at record pace

Equity funds have now seen net outflows in four of the past five months, after more than two years of net inflows, the IMA said. Photo: Alamy

British investors pulled out a record £864m from equity funds, compared with monthly average inflows of £506m for the previous 12 months.

Equity funds have now seen net outflows in four of the past five months, after more than two years of net inflows, the IMA said.

Savers holding funds in tax-efficient Isas also gave up on shares, with £28m being withdrawn.

Not surprisingly, investors who continued to invest opted for safer havens, such as corporate bonds and balanced funds, which invest in a mixture of shares, bonds and cash.

Bond funds saw sales of £443m in November, a marked increase on its monthly average of £332m.

UK Absolute Return funds were the second most popular, with £164m in net retail sales in November, the highest level since June 2011 and well above the monthly average of £81m for the previous 12 months.

Financial advisers said investors always reacted with panic when markets wobble.

Mark Dampier at Hargreaves Lansdown said: "I am not surprised that investors have been selling out of equities. Every time you turn on the radio, the TV or open a paper there is something about the eurozone debt crisis.

"The public is pessimistic, and this is priced into the markets. Usually pessimism in the market means it is a good time to buy, but you can understand why investors do not want to take the risk."

Richard Saunders, chief executive of the IMA, said: "The second half of 2011 has seen a marked slowdown in fund sales from the exceptionally strong levels of the last three years, and there was no let up in November, which saw the lowest monthly net sales since October 2008."

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Portugal succeeds in the sale of bonds in the middle of the pressure of rescue

The Portugal is under pressure to follow the Ireland and the Greece and accept a rescue. Photo: AP

The country has managed to sell 650 m € for bonds due in 2014 and 599 million euros of bonds in 2020.

Performance or price investors Portugal load hanging on its debt, debt short term was 5 396pc higher than 4pc investors look for in a binding October sale.

However the Portugal performance closely-watched 10 year bond was slightly lower at 6 716pc today compared to 6 806pc in a November auction.

The Portugal government debt agency said demand for bonds, claiming that he could sell more than double the €1 billion - value it offered.

The yield of bonds to 10 years in the Portugal was negotiated under FP7 autour these days, a cost of borrowing that some economists consider too high for the country to support.

Portugal faces a split between its political leaders, who insist the country does not require an EU rescue plan and the Monetary Fund International (IMF) to deal with its budget deficit, and help members of the Portuguese Central Bank supporting financial acceptor.

Leader of the Portugal Jose Socrates, says his Government has delivered on the promises of the EU, cutting the deficit of the budget less than 7 3pc 2010 goal.

"Portugal pas will require financial assistance for the simple reason that it is not necessary," he said yesterday.

Japan gave boost nations euro yesterday, saying it would buy bonds issued by financial assistance from EU funds to help restore stability in the region.

EU leaders are working on a "comprehensive" plan to contain the spread of the soveriegn debt crisis, European Commissioner Olli Rehn has written in the Financial Times today.

"Our most urgent priority is to break the vicious circle of unsustainable debt, financial turmoil and growth sub-optimal", he said.

He also called for the European Rescue Fund of €440bn "strengthened and broadened the scope of its activity.

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Trigger-happy central banks spark bond euphoria

 The recovery in Europe has been electric since the European Central Bank opened the floodgates in December. Photo: PA

"The credit market's on fire," said Suki Mann at Societe Generale. "We have seen a massive grab for yield. The mood is so good that even if Greece were to default it would probably make no difference."

The average borrowing cost for high-grade US companies has dropped to 3.52pc, just shy of all-time lows. American firms took advantage of the hunt for safe yield to raise $70bn (£44bn) last week alone, led by McDonald's and IBM.

The recovery in Europe has been electric since the European Central Bank (ECB) opened the floodgates in December, lending banks €489bn (£410bn) at 1pc for three years, with more to come later this month.

Europe saw the biggest one-month compression in high-grade debt yields in January since records began, excluding the V-shaped rebound after the 2008 crash. Telecom Italia's yields have dropped 180 basis points this year.

"The ECB was the game-changer. A lot of this money seems to have gone into corporate bonds and it makes sense because non-financial corporates are the strongest in history with big cash reserves and very defensive balance sheets," he said.

Data from Deloitte shows large companies have amassed record cash reserves on both sides of the Atlantic, with British non-financial firms sitting on £731bn, and US corporations holding $1.73 trillion in cash.

"High-grade companies like Google, Caterpillar, and the German auto-makers are now better credits than most governments," said Marc Ostwald at Monument Securities.

Spain's energy group Repsol can borrow for five years at 3.55pc, undercutting the Spanish state at 3.75pc. American companies cannot beat the US Treasury at 0.82pc but the gap has narrowed. Five-year yields for both Procter & Gamble and Caterpillar are 2.1pc, while GE is at 2.24pc.

Mr Ostwald said the world's central banks have eliminated most of the risk, promising to keep interest rates near zero for at least two years, even if the latest rush into junk bond segment of the market and is looking "overcooked".

Stephen Jen from SLJ Macro Partners said the double blast of a "trigger-happy Fed" and an activist ECB has transformed the outlook for global assets this spring. "All investors should respect the rule 'don't fight the Fed'. A new rule is 'don't fight the ECB'. Certainly the market should not fight the Fed and the ECB at the same time," he said.

Andrew Roberts, credit chief at RBS, said companies' ultra-cautious stance and their aversion to a fresh blitz of debt-drived takeovers makes them an alluring place to park money. These "super-corporates" have decoupled from eurozone woes. "The credit default swaps on Siemens, Carrefour, and Nestle hardly moved during the sovereign debt crisis last year," he said.

Bank bonds are the great exception to Europe's credit rally. The side-effect of the ECB's lending blitz is that the bank has gobbled up collateral. Since the ECB has first claim on this, the process reduces ordinary "unsecured" bondholders to ever lower ranking – affecting €2.6 trillion in European bank debt.

Holders of senior bank bonds are being relegated to junior status. "Banks are pledging more and more of their assets to the ECB: for unsecured bondholders, it all adds up to structural subordination," said John Raymond from CreditSights.

The risk is this could back-fire if banks over-indulge at the next ECB tender, borrowing a further €1 trillion or more. For now the party is in full swing.

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Spanish revolt brews as national economic rearmament begins in Europe

"We have reached the point where `taxes kill taxation'. The therapy is turning fatal and is starting to take on a highly political tone. Sixty years after the end of the war, Germany is again coming to be seen as an overbearing enemy, and an atmosphere of hostility is building up in a Continent divided between a rich and flourishing North and a South in danger of being reduced to a protectorate. If we carry on like this we are going to destroy the European project," he said.

The popular pressure gauge has been rising for months but the mass protests of the last two weeks have had a new and sharper edge -- even if you disregard the outbreak of violent street clashes with police in Valencia, already dubbed the "Valencia Spring".

A report last week by the Caritas wing of the Catholic Church warned that "there are more poor people than last year, and they are poorer. After four years of hardship, poverty is more widespread, more intense, and more chronic" than at any time in recent memory, with a gap between rich and poor that "threatens to polarize society". The poverty rate has risen to 21.8pc (38pc in Extremadura), the third worst in the EU after Romania and Latvia.

While the Greeks may or may not put up with ever-escalating EU demands -- most recently talk of parachuting 160 German tax collectors into the country -- any such treatment of Spain would set off the sort of `levantamiento' faced by Buonaparte in 1808, and the scale of damage to the European banking system would be catastrophic even for Germany.

The Spanish have good reason to feel maligned by North Europe's self-serving narrative of the EMU crisis. They never violated the Maastricht debt rules. They ran a budget surplus of 2pc of GDP during the boom.

Private credit spiralled out of control in part because the European Central Bank missed its inflation target every month for almost nine years and gunned the eurozone M3 money supply at double the bank's own target rate to help Germany, then in trouble.

Such a loose policy was toxic for an Iberian tiger economy, flooded with North European capital that it could not keep out under EU rules. Rates were minus 2pc in real terms for year after year, washing over the heroic efforts by the Bank of Spain to contain the damage.

Mr Rajoy has discretely requested a relaxation of the budget target to 5pc, pointing out `a la Grecque' that he inherited an even bigger shambles than feared.

Europe's answer has so far been iron inflexibility. “Backtracking on fiscal targets would elicit an immediate reaction by the market,” said ECB chief Mario Draghi -- a fiscal German, though a monetary Latin.

The Spanish must be sorely tempted to hurl sand back in the face of the ECB since the unforced errors of Frankfurt itself were the chief reason why the economies of Spain, Italy, and the rest of southern Europe buckled violently late last year.

The Trichet-Stark rate rises last year to “counter” the deflationary oil shock of the Arab Spring were as crass as it gets in central banking. Almost all prevailing scholarship warns against such a reflex. The rate rises compounded the fiscal squeeze already under way in the Latin bloc and led directly -- and inevitably -- to the collapse of the money supply in five or six countries.

By the end of 2011 all key measures of the money supply were contracting in the Euro zone as a whole. Hence an entirely avoidable Euroland recession. Hence the two-year economic slump now predicted by the IMF for Spain and Italy. Hence too an expected rise in Italy's debt/GDP ratio by seven points to 127pc by next year, and Spain's by eleven points, such is sensitivity of debt trajectories to growth rates.

Europe now faces another energy mini-shock as Iran pushes Brent crude to an all time-high in euros, tantamount to a €200bn tax on EMU consumers. Let us hope sense prevails this time.

Mr Draghi has done what he can to contain the damage from last year's tightening. His blast of unlimited three-year credit to banks at 1pc has averted a credit crunch as lenders frantically deleverage to cope with the EU's ill-judged pro-cyclical demand for 9pc core Tier 1 capital ratios by June.

But the Draghi Bazooka is a very blunt form of quantitative easing and contains the seeds of its own failure since it is leading to structural subordination of unsecured creditors and a concentration of systemic risk as the weakest banks load on the sovereign debt of the weakest states. Once again, the ECB is tying itself in knots -- and engaging in legal tricks to circumvent the Lisbon Treaty -- because Germany will not let it carry out plain-vanilla transparent QE that is perfectly legal and arguably necessary to keep nominal GDP growth on an even keel.

Ultimately, politics will decide the matter, and Mr Rajoy is not alone in Europe. He has a champion in Italy's Mario Monti, de facto leader of the Latin bloc and increasingly the man in whom the US, Japan, the IMF, and the rest of the world, are investing their hopes. As Mr Borrell put it, he is the only European statesmen with enough credibility to confront Angela Merkel "face to face".

Mr Monti's joint letter with twelve EU states last week calling for an end to self-defeating contraction marks a key moment in this crisis. If Francois Hollande is elected French president in May, the shift in Europe's balance of power will be complete. Germany will lose its stifling grip on EU policy machinery. The EMU bloc will start to tilt towards reflation at long last.

Whether it can come soon enough to avert a social explosion across Europe's arc of depression remains to be seen. Nor can such stimulus overcome the fundamental flaws of EMU since Germany is at an entirely place in the deform structure, with unemployment at 20-year lows of 5.5pc.

What is needed to save the South must endanger the North. Germany would overheat, pushing its inflation to 4pc or 5pc until Bild Zeitung erupts in Teutonic fury. It is impossible to reconcile the conflicting imperatives.

My guess is that Germany's refusal to countenance any form of EU subsidies, debt-pooling, or fiscal union -- other than policing the budgets of captive states -- has definitively broken the EMU spell. Latin nations by increasingly regard talk euro of solidarity as humbug. It has been a nasty shock. The era of national economic rearmament in Europe has begun.

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Shanghai shipping slump as IMF warns China on euro slump

The shipping data came as the International Monetary Fund warned that China is vulnerable to the 'clear and present danger emanating from Europe'. Photo: ALAMY

The shipping specialist Lloyd's List said container traffic through the Port of Shanghai - the world's largest - fell by 100,000 boxes in January from a year earlier, or 4pc. Volumes fell by over one million tonnes.

The figures may have been distorted by China's Lunar Year but there has been a relentless slide in the Shanghai transport data for months.

"China's shipping markets face grievous challenges," said the Shanghai International Shipping Institute. It acknowledged that the industry in the grip of downturn and likely to face a "worsening situation" in early 2012.

The biggest falls in container volumes have been on the Asia-Europe route.

The data came as the International Monetary Fund warned that China is vulnerable to the "clear and present danger emanating from Europe" and could see growth halve to roughly 4pc if the crisis escalates.

"China's growth rate would drop abruptly if the euro area experiences a sharp recession. In the unfortunate event such a downside scenario becomes reality, China should respond with a significant fiscal package," it said.

A fall in global growth by 1.75 percentage points would cut Chinese growth by more than twice as much unless Beijing took active steps to counter the shock, showing how distorted China's economic model has become.

"China would be highly exposed through trade linkages," it said. The report is a none-too-subtle reminder that China has a huge stake in Europe's stability and should be ready to stump up more money for an IMF-led rescue.

The Fund said China had "ample room" to boost stimulus by 3pc of GDP if need be, but warned against another credit blitz through the banking system or fresh infrastructure projects.

"China still has a long way to go to digest the side effects of the surge of credit unleashed in the wake of the global crisis. A large external shock would bring many of these domestic risks more forcefully to the forefront," it said.

The IMF fears that China had already pushed debt to safe limits. The ratio of loans to GDP has doubled to almost 200pc over the last five years - a larger jump than in the US during the sub-prime bubble.

Much of this leaked into property, exacerbated by interest rates on deposit accounts last year of minus 3pc in real terms that pushed investors into hard assets.

Credit curbs have punctured the bubble, but there are worries that this could go too far. Top developer China Vanke reported a 39pc fall in home sales in January, while Guangzhou R&F recorded a 57pc drop.

"Things will be very difficult in 2012: it will be a winter and a test for the entire industry," said Mao Daqing, Vanke's vice president. A price war before Christmas failed to halt the crash in sales.

Caixin Magazine said China's once-hot property market is "turning polar" and reported that Moody's fears Hong Kong-based developers may struggle to refinance foreign debt this year.

The IMF advised Beijing to stay the course on the housing curbs. If stimulus is needed, the authorities should run a bigger budget deficit with "targeted transfers and unemployment benefits".

In a remarkable twist, the IMF proposed direct subsidies for white goods, a sort of Chinese 'cash-for-clunkers'.

"A fiscal package should be the front line of defence," it said.

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Questor share Tip: Forth Ports bid target once more

When Forth Ports rejected a £ 14 a share bid approach of Northstream consortium last may, he took surveys of its other shareholders on what could be an acceptable price of the takeover.

The message was clear: even £ 15 would not suffice. But it would be closer to the mark.

These new filtered on the waves, and now the key member of Northstream - the Arcus European Infrastructure Fund - are solo sailing with a renewed inclination at the last of the main groups cited port.

Arcus, which is already a principal shareholder of Forth with 22 8pc, filed a 16.30 £ proposed a share offer, upgrading Forth at £ 746 m - as agreed to pay a p 20 final dividend share for 2010.

This time, Forth - owner of Scottish Leith, Rosyth and Grangemouth ports as well as the London Tilbury docks - has opened its books.

The price mentioned is not the £ almost all who might have been necessary at property boom when evaluators were salivate on the potential of the Forth development assets.

In 2005, these assets have been assessed by DTZ to 285 m £-a value well enough, they held until 2007.

Then came the crash. 2008 Assessment of DTZ diving at only £ 60 m - and while it amounted to 74 m £ 2009, reflecting in part Forth taking full ownership of the development of Ocean Terminal in Edinburgh.

It is one of the problems with valuing Forth: there is clear potential in the field of property realizing it but is another story.

There are other possibilities, too, plant biomass on surplus lands in the Scottish ports and the construction of boost for the 2012 Olympics are bringing to Tilbury. But a large part of this tomb in the box entitled "potential".

As for now, the values of Arcus proposal that Forth to about 29 times expected earnings - and it is hard to see a counter-bidder, set the given Arcus chunky. It is noticeable, too, that Arcus is made that "confirmation due diligence", involving an agreement is not far away.

There is a risk, of course, a final shift. But it seems only a matter of time before the boat coming Forth. Investors must not long to wait. Hold'em.

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Questor share Tip: FTSE 100 winners and losers

More than 10 years after the dotcom bust, commentators on technology are once more the possibility of a technology bubble.

Heavyweight sectors ARM Holdings has been a good month - hit a maximum of 10 years.

The Cambridge-based company designs chips for almost all mobile devices in the world, including Apple iPhone and iPad.

Recently, the arm has been to play down fears that a breakthrough of revolutionary chip by rival Intel will take a bite of its future earnings.

The CSR chip manufacturer shows also gains this year, despite the fact, he settled in loss in the first quarter after it shipped fewer chips for smartphones.

Shares in autonomy, which makes software for companies to keep track of e-mail, voice and video, also filed a solid performance - with the market acclaim its recent acquisition of Iron Mountain, which boosted his computer business in the clouds.

Insurance companies entered 2011 on low income, as investors are concerned about growth, the performance of financial markets and competition in the sector.

Generation of Cash has been strong, underlying the dividends, and there are a signs this streamlining structural in companies such as Aviva and old mutual work.

Despite a number of disasters, M & A activity from insurers Lloyds of London has kept floating sector. The performance was also assisted after that the performance of the Prudential heavyweight sector lagged last year.

Fears of overheating in China and a correction in the price of raw materials sent much lower mining shares.

The price of gold hit new heights on the sovereign debt fears unprecedented European, but the performance of the shares of gold mining is dull.

Goldman Sachs also precipitated a drop in the sector when he called a high short term in the boom of commodities in April. However, the Investment Bank has changed since and is now more "optimistic."

The British market also welcomed Glencore, the goods in Switzerland, giant trade, the London-based largest ever flotation. This sparked speculations of M & A over the area, with Xstrata presents itself as the primary target.

Airlines and travel like TUI and Thomas Cook agencies were hit by the high cost of oil and the disturbance caused by civil unrest in the Middle East and North Africa. Egypt, for example, usually represents on FP7 of the profits of Thomas Cook.

Things looked even darker for the sector in recent weeks, as a volcanic eruption in Iceland, threatened to cause chaos and disruption. But will the situation currently not result as bad as last year.

Shares of the Bank have been low. In April, the independent Commission on banks stated that the largest banks of the United Kingdom, to stimulate capital, implement the plans for an orderly bankruptcy and build fire breaks around consumption units to consolidate the stability of the financial system.

Split banks in retail and investment arms has not been held.

Competition remains high, with Sir Richard Branson planned to bid for branches of Northern Rock and Lloyds it attempts to bring Virgin Money to the street.

The background dark market also kept the sector in failure, with the major banks to reach their targets of loans
for small businesses in the Merlin project.

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Portugal goes to debt markets as the pressure increases for a rescue plan

The Portugal is under pressure to follow the Ireland and the Greece and accept a rescue. Photo: AP

Yesterday, the country faced a split between its political leaders, who insist the country does not require an EU rescue plan and the Monetary Fund International (IMF) to deal with its budget deficit, and help members of the Portuguese Central Bank supporting financial acceptor.

Investors await the results of the sale auction this morning of €1 billion (£ billion) of Portuguese bonds 2014 and 2020, which indicates how investors will charge take the debt of the country.

Japan gave boost nations euro yesterday, saying it would buy bonds issued by financial assistance from EU funds to help restore stability in the region.

Leader of the Portugal Jose Socrates, says his Government has delivered on the promises of the EU, cutting the deficit of the budget less than 7 3pc 2010 goal.

"Portugal pas will require financial assistance for the simple reason that it is not necessary," he said yesterday.

EU leaders are working on a "comprehensive" plan to contain the spread of the soveriegn debt crisis, European Commissioner Olli Rehn has written in the Financial Times today.

"Our most urgent priority is to break the vicious circle of unsustainable debt, financial turmoil and growth sub-optimal", he said.

He also called for the European Rescue Fund of €440bn "strengthened and broadened the scope of its activity.

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You will receive quick and dirty crash course life insurance life insurance-

What is a life insurance policy?

Life insurance is a contract between an insurance company and the policy holder (insured) from one agreed to pay the amount of the insured beneficiaries (generally family) after the death of the policyholder. The policyholder agrees to pay calculated premiums from the insurance company.

Life insurance policies are purchased and to protect the remaining members of the family from the loss of income that would occur as a result of the death of a family member.

There are two types of life insurance policies, permanent and term.

Permanent insurance:

Permanent policies are expensive and complicated than long-term policy. Permanent insurance remains effective for policyholders life (as long as the premiums be paid, as the policy agreed terms and conditions). It provides in addition to the payment of death benefits, investment opportunities. A persistent policy can borrow against the accumulated value of the policy value increases with the passage of time and the insured person. This increase of cash value is deferred, tax until the money is drawn.

There are three types of permanent life insurance.

All: Whole life policies are traditional permanent insurance incurred cash value in the course of time. The most whole life insurance to pay dividends to the policyholder.

Universal: Universal life insurance policies are more flexible than the other permanent directives. It allows the policyholder, the amount of insurance and premiums to change, such as financial needs (subject to the insurance company of underwriting terms and conditions) change.

Variable: With variable life insurance death benefit and the value of the policy based on the performance of a separate investment funds. The most guidelines guarantee that the payment of death not below a certain minimum will fall, however, the present value of the policy is generally not guaranteed. There are more risk with variable policy involved.

Term insurance:

Term is the simplest and cheapest form of life insurance. The long-term policy remains in force for a certain period of time. The term can be anywhere 1 to 30 years. It is a set of premium and a pay-set death benefit amount. Expires the directive before the death of the insured, the insured can either renew the policy for a specified period of time, or let it expire.

The way to convert to a persistent policy is term policies. Sometimes possibly an insured not more expensive permanent life policy first of all can afford. As they more established improve themselves and their careers and their financial situation, you can decide to update your term to a permanent life insurance. The upgrade requires none of the policyholder are subject to an additional physical examination.

The underwriting guidelines for the various insurance companies are different, so look around and do your homework before buying a life insurance policy.

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Unemployment rate indicates a need for life insurance

Made unemployment you carefully new investment? Struggling to keep up with monthly payments, and you have to stretch your budget far beyond its borders? In times like these, it is natural for people to prioritize their spending, and more than often, life insurance is not deleted to get the issues of priority one. Nevertheless, we are really the right thing do?

Indeed, layoffs, unemployment and recession are indicators of the need to evaluate your life insurance requirements, seriously and buy term insurance, if required. If you have no life at all, this is the time you purchase a new directive must take into account. Things may be bad now financially, but think how the situation could worse for your family, if they were no longer round. To reduce monthly costs and no life on the beat, left with unpaid loans and mortgages, they would be in dire financial need during the mourning of the death of a beloved.

According to insurance experts, surefire signs that indicate the need for an increased life insurance coverage are a rising unemployment and a recessive economy. Unfortunately the opposite - most Americans do scarce when receives money, life insurance is one of the first issues that gets blown out of the list.

Why should your need increase term individual insurance in tough economic times?

Rising unemployment and rampant job insecurity:

The only life insurance, which most of us is how they are covered their jobs. With unemployment on the rise, and no job security, you need to know that the types of life insurance will get you is not portable through your workplace. So, if you lose your job, you will no longer fall and you need to purchase life insurance. Even if you have a very secure job, did you know that employers cover usually for about 2-3 times your current salary? This is hardly enough. Your current income should be ideally about 10 to 15 times coverage. So even if you are guaranteed coverage due to a very safe work, you need to even properly fill even the distance and the.

Cuts in work benefits:

Employers want to greatly reduce costs in times of recession. You can blame not them. Go to through a hard time, may lose customers and try their best to keep the business afloat. Employees for cuts in retirement, pensions and other benefits are prepared. If you receive job-related benefits, you have to do, for without them, or to get numbers for expenses out of his own pocket. So you will face all in all a major event in your benefits while your costs can rise. Individual life insurance holds with reasonable coverage is essential.

A drop in the value of your most important resources:

Housing prices have crashed, and you have seen the value of one of your largest assets Valley. Other major investments, and possibly those who had for the future on banked took also a tumble. You need to your financial plan to reconsider, and fill the gaps. If you do not leave can assets to your family, you can let at least a huge death benefit.

Why term insurance?

In a recessionary period as money is tight and asset values have fallen, with unemployment and insecurity on the rise, only term insurance is useful. Term insurance is affordable and you can buy more insurance per dollar. During a lifetime while a cash value to created, your investment is linked to market performance. Therefore, this is definitely to not have time to decide for all insurance. A whole life premiums are expensive, and can make it difficult for families, the amounts of premiums in these difficult times.

Individually owned term insurance life is also a good alternative to employer-linked group insurance. Now, do you have for your own premiums payable, is the affordability of your concern. Term insurance is so affordable that it as little as $21 each month on a ten-year level term insurance for $500,000 can cost a 40-year-old man! Monthly premiums are as little as $18 per month for a woman in the same age!

It is even better news! Online insurance agencies are who can buy best place to your term life policies, and purchase of a renowned agency costs on the guidelines offered by the bestgeratete life insurance companies of about 70% lower! These online sites offer affordable term life quotes, you feel very comfortable for the purchase of life insurance. More importantly, because it is cheap, you can afford a high death benefit to a single term insurance and this will take sufficient care of your family in the event of your death.

It is also a good idea, read on life insurance online, and a professional insurance advisor to consult that help can you determine, how much term insurance you actually need.

Finally life insurance should be never a burden payments. On the contrary, it is a payment, you should be happy to make, knowing that it will secure future for your family.

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Pursuit Dynamics perks up as market rallies

"We had a detailed discussion with management Dynamics continue to confirm a number of inaccuracies," said Mirabaud analysts, to give himself an analysis point by point of 16 pages folder. The said broker that verdict for the presentation of the potential market "a fundamental understanding of lack.

Analysts writing on the presentation "technology overview", added: "the description on this slide mainly concerns the application of technology on the market of foods and especially it ignores important developments made in the past three years."

Another house broker, Cenkos, spoke to the dynamics of the prosecution, saying: "recent bear raid has created an excellent opportunity to purchase the shares.

Dynamic continuation posted throughout the year loss of £ 9. 1 m in December. But which does not stop the bulls yesterday as invigorated shares up 55¼ to 385¼p.

Return to the main market, engineers and technology companies were also asked, although for more mundane reasons. After having slipped into the red after new Tuesday, the disappointing contraction in the British economy, citation index rebounded yesterday.

The FTSE 100 gained 51.5 points to 5969.21 and mis FTSE 250 110.67 at 11612.27 points.

Lifting feeling is a rally on Wall Street, where the Dow broke the barrier of 12 000 for the first time since June 2008.

Missing, however, banks have been.Royal bank of scotland, hsbc Holdings and Lloyds banking Group has fallen 0.26 43.03 p 2 to 696 p and p from 0.14 to 63.01 respectively.

Leads the charge, however, was Aggreko, the energy supplier temporary events, including the Olympic Games in London. Advanced 75% to £ 14.85 that Goldman Sachs has initiated coverage with a "buy" rating Aggreko to give a price target of £ 20.02, analysts said as Aggreko to benefit from the growth in its international business "such as a lack of power in drive developing economies more demand to temporary".

While on the second level, Renishaw WINS outrageous. After precision engineer who manufactures equipment for measuring and products for the healthcare sector posted increased fivefold in favour of the first half, its shares rose 263 p to £ 15.98. Renishaw said he saw particularly strong growth in the far East, and that China is now larger enterprise market.

Given solid results, improved Numis analysts forecasts of profit throughout the year by 13pc £ 72. 2 m. "Renishaw a clear impetus and year-end results should significantly advance on year," added the broker, which has a "hold" on Renishaw. "We believe it is good upside potential risk to our estimates, and this may be still attractive in spite of share price highs."

Not far behind Renishaw was Cookson. The industrial materials company whose products are used in solar industries and glass, as well as by foundries and manufacturers of steel, checked up to 48 to 680½p. Mounted Cookson came as he has said that he expected performance this year, to be well ahead of last year, thanks to improvements in its steel and electronics markets.

Checking up too was Prime Minister Foods, who won 1.62 to 22.3 percent. The food producer sold his company Quorn earlier this week to £ 205 million, and there were rumors that it is in talks to sell its operations in cans to the Princes.

An optimistic note broker helped spirent Communications, test systems and equipment for AT & T, Cisco and Verizon Communications. Analysts at Numis plus their "buy" rating of "add", pushing Spirent 10.1 141 p.

At the other end of the spectrum, heritage oil immersed 126.6 at 310 p as investors found nose by the fact that the Explorer had discovered gas instead of oil in Kurdistan.

But analysts of JP Morgan Cazenove said the discovery could "ultimately increase takeover appeal of heritage to a gas main players in the region.

Write on oil and gas sector in a separate note, JP Morgan Cazenove investor savvy "prepare for some blockbuster upstream M & a in 2011", with likely Asian national oil companies of predators.

Return on the highest level, the smell of black gold has been boosting bg Group. He doped 45½p at £ 13,72 after the discovery of light oil in the offshore of the Brazil.

BG was joined by minors, who has gained ground as concerns autour fell of the strength of economic recovery. Antofagasta on 46 p to £ 14.36 and Rio tinto has increased to £ 44.00 110 p.

As the relapse concern abated, retailers also rallying, with the Next wins 10 p to £ 20.85. Helping high street retailer, it was an upgrade of Nomura, cogné up to its "buy" rating of "neutral", which has increased its price target to £ 26.50 from £ 24.13.

Analysts said the pressure then face face this year as a squeeze on household income are generic industry, while its possibilities, such as growth in the following directory, looks set to improve.

Written in General on sale sector retail, Nomura said expected stocks at the best price in the second half of the year. "In detail, another hike for VAT in the UK puts real cash flow cleaning pressure in 2012, which means that the actions are likely to benefit until the summer," said analysts.

They are feeling bullish on stocks of goods of luxury, saying that the "distribution support of growth of gross domestic product, global travel, increased wealth and a weakness of the euro" remained in place for 2011.

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Profit warnings leap as economic uncertainty takes its toll

Analysis by Ernst & Young revealed a 70pc leap in the number of profit warnings, from 51 in the third quarter to 88 in the final quarter, marking the biggest jump in a decade. During the year as a whole, there were 278 profit warnings, compared to 196 the previous year.

Warnings in the quarter from the likes of retailer Mothercare and Premier Foods, the maker of Mr Kipling cakes, pushed the proportion of listed companies who put out warnings in 2011 up to 14pc, the highest since the financial crisis first started in 2008.

As cash-strapped customers curbed their spending, retail was the worst-hit sector, with 39 profit warnings issued last year, more than the whole of 2009 and 2010 combined.

But Alan Hudson, head of Ernst & Young’s UK restructuring practice, said that although consumer-facing sectors had been hit hard by the sharp fall in disposable income, there were still successful companies across these sector that were performing well.

“Shoppers are still willing to splash out on items or experiences that they value, but the pressure on consumers’ coffers means if they are spending more to create winners in one area, there will inevitably be losers in others,” he added.

Although the high street’s travails have grabbed headlines, the pain is also being felt across many other sectors. Last year, the software and computer services sector issued 31 warnings, the highest number since 2008, with a fifth of the sector cautioning on profit during the course of 2011.

“Both are highly reliant on the vagaries of spending in their end markets - primarily business and the public sector – and both are therefore highly sensitive to rising levels of uncertainty or falling levels of activity in the broader economy,” said Mr Hudson.

“This sensitivity can make both industries useful bellwethers and the sharp rise in profit warnings in both sectors at the end of 2011 was certainly indicative of a changing economic outlook.”

He added that the sharp rise in warnings across all sectors demonstrated that 2011 was a tough year for companies and that the new year was likely to continue in the same vein with the gap between the winners and losers widening.

“Many businesses are still expanding profitably, but others – the zombie companies – remain moribund by debt or defunct business models, unable to build value or gain momentum in these challenging economic conditions,” he added.

Profit warnings in the first weeks of the new year have come primarily from companies vulnerable to contract and order cancellations, as customers wait for more economic certainty before committing to further significant outlays, said Mr Hudson

“Companies in industrial, IT and support services sectors have proved vulnerable to contract delays in the past and further profit warnings are likely from these sectors until the political and economic outlook stabilises,” he added.

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Questor share Tip: grip, Standard Life on UK pension market key for growth

Instead, 50 years, who succeeded Sir Sandy Crombie as CEO of the company last year, will talk about savings and long term investment and blow away the cobwebs in 185 years Scottish institution only mutualised-of in 2006.

Mr. Nish himself has established a clear timetable for doing so and yesterday-show results he made progress, although he himself has admitted that there is still a "much to do."

Other (dare I say it) insurers, Standard Life has its sights set mainly on the British market and hopes to exploit the 1.4 trillion of £ in pensionable pension active he believes are to win in Britain.

Mr. Nish has spent its first year in Office of restructuring of its management team and the launch of new products, such as Lifelens, new package of benefits employee of the group. Standard Life has also disposed of its banking and health care units and made a few bolted acquisitions to strengthen its "basic proposals" - a phrase that Mr. Nish likes to use.

Although it is clearly too early to judge the long-term these changes impact, financial statements of the of the Standard Life were quite strong in 2010.

The Group posted a 5pc 6 increase in profit before tax of 425 m £ paying revenues have increased by 16pc for £ 1 billion. Manager of property of the company, Standard Life investments, also saw assets under management hit a record more than £ 71 enabling the company to increase its total dividend by 6 2pc 13 percent.

Moreover, the Group managed secure transactions to provide services to 182 new British pension schemes, representing 72 000 employees.

It is clearly a solid platform to build and Mr. Nish will want to prove that British companies do not have to build global empires to succeed.

Mr. Nish 2011 will be the year he and his team "execute and deliver", explains their strategy, winning several new companies in mind until December 31, when he says that the group must be ready to reap the benefits. It is because of the planned regulatory changes for 2012, including reforms of the pension which will be automatically enrolled employees to employers pension plan their existing or a new system of personal accounts.

Standard Life believes that more businesses of the United Kingdom will need his services as being more employees pay into pension schemes. The group is currently a leader of the market in this sector. In addition, the implementation of the review of retail distribution will prohibit commission payments to intermediaries. That Standard Life already operates on the paid model of choice, it is expected to steal a March as companies are forced to change their payment models.

Questor recognizes the impact of Mr. Nish changes are likely to have on society and recognizes performance of healthy dividend of 5 3pc, it already provides to investors.

Shares in the company rose by just below 10pc during the past year, the investment to maintain - especially for the number of ranking of the retail investors, the company has - a legacy of its demutualization five years ago.

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Time to swim against the tide and dip into Europe again

For investors as well as journalists, where the funds are actually flowing tells a tale, even if it is more often than not a contrarian one. Investing in the places no-one else wants to go is psychologically hard but frequently profitable.

The fund flow data so far this year confirm a marked shift in investor sentiment. A net $16bn (£10bn) – inflows minus outflows – has returned to the world's stock markets, reversing about 9pc of last year's outflows, according to Citi figures.

More interesting is where the money is heading. It has been pouring into emerging markets and out of developed markets, with the exodus from the mature markets accelerating in the past couple of weeks. In total, emerging markets have attracted $24bn, offsetting about half of last year's redemptions, while developed markets have seen $8bn taken off the table. In particular, investors have been least interested in European and Japanese equities as their appetite for the developing regions of the world has returned.

It is probably not too surprising that these are the two markets to have been left out in the cold. Japan has been a disappointment while making the case for Europe has been mission impossible since the Greek crisis flared up two years ago. It is a statement of the blindingly obvious that Europe continues to face some pretty intractable problems. But investment is less about spotting where things are going right or wrong than about noticing where the perception of those trends is at odds with the reality. However bad things are, investors can profit if the market thinks they are worse than they turn out to be.

That is the gist of the argument for investing in Europe today, or as Credit Suisse put it this week: "Europe – lots of problems but raise to benchmark". It is the first time the bank has been anything but negative on the region in two years.

Here are some of the problems for investors in Europe. First, growth is anaemic and, with wages in the peripheral countries needing to fall by as much as 13pc to restore the periphery's competitiveness, it is likely to continue to stagnate. Second, the process of paying down debts has barely begun – another reason to expect weak growth. Third, several governments outside the core look insolvent. Fourth, the euro remains grossly overvalued, which in turn crimps growth.

Against this backdrop, it is unsurprising that investors have shunned the region. Even less surprising when you consider the inability of the eurozone's political leaders to convey any sense that they either understand the scale of the challenge or can find a solution. So why might Europe, nevertheless, be worth a look now? First, because the risk of a disorderly break-up of the eurozone now looks lower than a few months ago. ECB President Mario Draghi's injection of long-term liquidity for the region's banks has made a Lehman-type credit crunch possible rather than probable.

Second, because manufacturing new orders are picking up and earnings forecast revisions are second only to those in the emerging markets and better than in the US, UK and Japan. When European earnings revisions have turned before, the region's shares have tended to outperform over the next three to six months.

Third, because European companies have a significant exposure to the faster-growing markets in the rest of the world. Many of the large, multi-national businesses that dominate most European investment funds are tied to the fortunes of the global economy and not just the eurozone area. Just over half of continental European earnings come from outside the region.

Finally, and most importantly, valuations are attractive on a historical basis. Dividend yields, in particular, are in many cases approaching 5pc, which is around 50pc higher than the average in Europe in recent decades and more than twice the yield on German government bonds. Compared to the rest of the world, the valuation of European shares has not been this attractive for around 16 years.

If successful investing was about following the herd and doing what felt easiest, we would all be good at it. Unfortunately, the rewards accrue to those who swim against the tide and invest when it feels most uncomfortable. Perhaps this is just such a moment in Europe. "Don't follow the money," as Deep Throat didn't say.

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Shares to profit from a recession

Jonathan Jackson, head of equities at stock broker Killik & Co said that in a recession people cut back on their use of cars and turn to public transport. Good news for First Group, the leading transport operator in Britain and North America, operating bus and train groups including First Great Western, First Capital Connect and the Yellow School Bus.

Picture: Alamy

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Tory hedge fund donor fined $80m in the US

Pentagon Capital Management, headed by Lewis Chester, a contemporary of the prime minister at Oxford, was found to have engaged in late trading in mutual funds.

Investors in the fund, which has been winding down its assets since 2008, have included media tycoon Richard Desmond, former Labour treasurer Lord Levy, and property magnate Gerald Ronson.

The ruling, handed down by Judge Robert Sweet in Manhattan, will fuel scrutiny of the Conservatives' ties to big business and City financiers.

The Securities and Exchange Commission (SEC) issued charges against Pentagon in April 2008 after former New York Attorney General Eliot Spitzer launched a crackdown on trading in mutual fund shares.

Handing down his opinion, Judge Sweet ruled that Pentagon had "intentionally and egregiously" violated federal securities laws by engaging in late trading – or trading in mutual funds after the market close. "This scheme was broad ranging over the course of several years and in no sense isolated," he said. However, the judge found in favour of Pentagon on a second charge of market timing abuse.

Frank Razzano, a lawyer working on behalf of Pentagon, said: "We are grateful for Judge Sweet's finding that no illegal market timing took place. We are disappointed by his late trading conclusion. We shall be appealing."

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Stock markets show there are signs of optimism amid the gloom

The Dow Jones Industrial Average, still the best barometer around of the state of the US economy, this week reached its highest level since May 2008, while the technology-orientated Nasdaq Composite hasn't been as high as this since the immediate aftermath of the dot.com bubble back in late 2000.

Even more representative indices such as the S&P 500 and the FTSE All Share are racing ahead. Could it be that share prices are telling us something? Stock markets can be some of the best lead indicators around, but they are also famously unreliable. There are plenty of rallies which prove unrequited, with the economy failing to improve as anticipated.

The most notorious of these false dawns was in the aftermath of the Great Crash of 1929, when after falling more than 40pc in the initial panic, the Dow Jones then rallied sharply. Everyone rushed back in, only to lose their shirts for a second time as the stock market crashed back down again. By the time it finally hit the bottom in the summer of 1932, the Dow had lost 90pc of its value. Other, similar false rallies occurred throughout the 1930s.

The dangers of reading too much into the short-term movement of stock markets are all too apparent.

Even so, for the time being, the bulls are getting the better of the bears, so it's worth exploring why. The negatives are obvious enough. It's as plain as a pike staff that the eurozone's latest piece of sticking plaster isn't going to hold for long. Oil prices also give cause for grave concern, for we know that high oil prices, by taking money out of people's pockets that would normally be spent on other things, have a powerfully deflationary effect on Western economies.

What is more, nobody could think that the debilitating consequences of the financial crisis are now fully behind us. Cheap money alone seems to keep the whole edifice afloat. Where does the world economy look for support once the intoxicating effects of the central bank printing presses begin to wear off?

In Europe, official support for the banking sector seems only to be storing up problems for the future. Extensive use of European Central Bank (ECB) liquidity has diluted the quality of the assets used to attract market funding, creating a vicious cycle of ECB dependency that is almost bound to end badly.

And if these concerns were not bad enough, there is also the little matter of stock market valuations to worry about. Equities look relatively cheap against bonds, but that may be only because bonds, whose price has been artificially inflated by ultra-loose monetary policy, are very likely overvalued rather than shares being undervalued.

Put another way, share prices have benefited almost as much as bonds from cheap money policies, and are therefore quite vulnerable to any change in the current, zero interest rate environment.

Using the Robert Shiller valuation method - a cyclically adjusted measure that takes a moving 10-year average of historic earnings - US equities are far from cheap. True enough, they are not off-the-scale expensive, in the way they were at the turn of the century, but they are significantly above the historic average, and they are certainly at a level from which we have seen big tumbles in the past. Such valuations are only justified if you think there is further significant scope for profits growth.

You may be wondering by now where I am going to find the positives amid all these negatives. It's not easy, but stock markets are as much about sentiment as economic fundamentals, and it is important to bear in mind that all these negative risks will to some extent already be weighed in the balance. They are the known unknowns, if you like. On the whole, investors remain highly risk averse, and these are the sort of things they worry about most.

So rather than focusing on the possible downsides, we should perhaps be looking at the potential for upside surprises. Where might they come from? The most obvious source is the eurozone, whose muddling through approach to the crisis may succeed in holding the whole thing together for rather longer than conventional economic and political analysis suggests.

Perpetual crisis is not great for growth, but it is also quite plainly better than the financial Armageddon feared just a few months back. For the time being, ECB liquidity has succeeded in forestalling this more catastrophic outcome.

The longer the eurozone can keep staving off disorderly default, the more likely it is that confidence will start returning. There is a certain amount of "fear fatigue" creeping into sentiment. A backlog of opportunities, sidelined by prospects of economic meltdown, has built up, which investors and businesses will eventually grasp.

Already we are seeing the beginnings of a mini mergers and acquisitions boom. The junk bond market is returning, allowing a certain amount of leverage once more to be applied to private equity takeovers and corporate refinancing. These are all positive signs.

But the biggest potential for upside surprise is in the United States, where it is possible, and in my view quite likely, that the present economic recovery will prove more than just a pre-election flash in the pan. A self-sustaining recovery in the US, if that is what we are beginning to see, would certainly provide ample support for equity valuations at current levels. Growing energy self-sufficiency as a result of the shale gas revolution will in time remove the US as a marginal buyer of international crude, which ought to take the heat out of oil prices.

Edward Bonham Carter, chief executive of Jupiter Fund Management, reckons equity markets are likely to continue in positive mood for the next six months because of the improving economic backdrop. But he doubts the main indices will permanently move onto higher ground in the next year, in the sense of significantly breaching past all-time highs. This looks about right to me.

A more positive mood is establishing itself, but the idea that we are entering a new and sustained bull market still looks premature.

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