PARIS &<51; The United Arab Emirates said Sunday that it had chosen a South Korean-led consortium for a $20 billion contract to create the first nuclear power reactors in the Middle East.

The Korean consortium beat out a General Electric-Hitachi team and a French consortium that included &>01;lectricit&>33; de France and Areva.

The deal, one of the largest in the energy sector this year, comes amid a resurgence of nuclear power projects and had involved high-profile lobbying from officials including the presidents Nicolas Sarkozy of France and Lee Myung-bak of South Korea.

The deal went forward after the U.A.E. signed an agreement with Washington on Dec. 17 to alleviate proliferation concerns. The Arab country, a federation of seven Gulf principalities, agreed in that protocol that it would not enrich uranium or reprocess spent fuel.

After a decade of strong growth, the U.A.E., a leading oil producer, is seeking to modernize its utilities sector and diversify its energy sources. It imports most of the natural gas that it burns to generate electricity and using its own oil would reduce amounts available for export.

Under the deal announced in Abu Dhabi on Sunday, Korea Electric Power will lead a group that includes Westinghouse, the American subsidiary of Toshiba, in designing, building and helping to operate four 1,400-megawatt nuclear power plants for the Emirates Nuclear Energy Corporation. The first of the third-generation units is supposed to be online in 2017, with the others providing electricity to the grid by 2020.

The contract had been hotly contested. The deal ultimately could be worth as much as $40 billion if the initial four plants are successful and the arrangement is extended.

&S220;The nature of this project will require a partnership that endures for nearly 100 years,&S221; Khaldoon Al Mubarak, chairman of ENEC, said in a statement announcing the winning bid emergency payday loan.

The Korean consortium agreed to take &S220;a high percentage&S221; of the contract under a fixed-price arrangement, an important consideration in an industry in which major cost overruns are the norm. Korean investors will also take an equity interest in the project, will be modeled on the South Korean utility sector.

The task is nonetheless a daunting one. Essentially all of the technical expertise and much of the manual labor will have to be brought in from abroad, as will the reactor components and the fuel. The U.A.E. electrical grid will also have to be substantially improved.

Officials in the U.A.E. said they were still discussing cooperation with the other bidders in areas like long-term fuel supply, investments and training.

The Korean group also includes Doosan Heavy Industries &&8; Construction, Hyundai Engineering &&8; Construction and Samsung C&&8;T. Korea Electric Power, owned by the South Korean government, operates 20 nuclear plants, generating about 40 percent of the country&S217;s electricity. The U.A.E. contract is its first big export deal.

&S220;We can now stand shoulder to shoulder with the U.S., Japan, France and Russia in our advance into the international market,&S221; the Yonhap news agency quoted Mr. Lee, the South Korean president, as saying.

Despite the nonproliferation agreement signed with Washington, there remains concern in some quarters about the security of nuclear facilities in the U.A.E., which lies in a volatile region just across the Gulf from Iran. The U.A.E. nuclear authorities are evaluating potential sites for the plants.

South Korea to Build Reactors in Middle East

AMSTERDAM (Reuters) – Shares in Dutch luxury carmaker Spyker soared on Monday after the company made a new bid for General Motors&&9;s Swedish car brand Saab.

The partly Russian owned Spyker said on Sunday it had lodged a renewed fast-track offer to buy Saab from GM just two days after last-ditch talks with GM over a rescue of the loss-making Swedish manufacturer collapsed. The offer from Spyker Cars expires at 2200 GMT (5 p.m. EST) on Monday.

Shares in Spyker Cars rose as much as 34.5 percent and were up 26.9 percent at 2.17 euros by 1051 GMT (5:51 a.m. EST) in Amsterdam as its renewed approach to Saab raised hopes the small Dutch firm may exponentially expand operations and perhaps become profitable.

"The stock&&9;s value is close to nothing but if they succeed to buy Saab, invest, and turn the company around then the shares can become valuable," said a Dutch analyst who declined to be named.

Abandoning the 60-year-old Swedish auto brand would eliminate 3,400 jobs in Sweden and hit 1,100 Saab dealers, but General Motors said on Sunday it would evaluate several new expressions of interest for Saab.

Spyker, which Russian banking tycoon Vladimir Antonov holds an almost 30 percent stake in, said on Sunday it submitted a renewed offer including an 11-point proposal addressing issues that arose during the due diligence process.

Russian state-controlled Sberbank and Canada&&9;s Magna tried to buy a stake in GM&&9;s Opel unit until GM decided to keep it last month business cards. Russia is keen to obtain Western technology to re-energize its local car industry.

"We&&9;re very confident we have put forward a proposal that can convince GM in time," Spyker Cars Chief Executive Victor Muller told Reuters in a telephone interview on Sunday.

"The jury&&9;s still out. We will see what happens next."

The new offer eliminates the need for a European Investment Bank (EIB) loan approval prior to year end, which would allow the deal to be concluded within GM&&9;s deadline of December 31.

"We can&&9;t comment on this deal as this is something between Spyker and General Motors," said Eric Geers, spokesman for Saab Automobile.

Paul Akerlund, local union leader at Saab in Trollhattan, said: "It&&9;s positive. It shows that there is a genuine interest in buying (Saab), but now the ball is in GM&&9;s court and I don&&9;t know how GM views this. That remains to be seen."

Spyker, maker of the C8 Aileron and D8 luxury sport-utility vehicle, got rescue financing in 2007 from Abu Dhabi&&9;s sovereign fund Mubadala, which holds 23 percent of the company, while Spyker Chief Executive Victor Muller owns 10 percent.

(Reporting by Gilbert Kreijger and Aaron Gray-Block in Amsterdam and Nick Vinocur in Stockholm)

Spyker shares soar as GM mulls new offer for Saab

DEERFIELD, Ill. – Drugstore chain Walgreen Co. said its November sales improved, but the results disappointed Wall Street and the company's shares fell in Wednesday trading.

At stores open at least a year, Walgreen said sales rose 3.9 percent. Analysts were expecting greater improvement of 6.1 percent, according to Thomson Reuters. Walgreen said pharmacy revenue was hurt by new launches of low-cost generic drugs, and sales of nonpharmacy items took a hit due to slowing demand for cough, cold and flu products, and further weakness in the economy.

At those stores, pharmacy revenue rose 5.7 percent, and sales of "front end" items like cosmetics and food grew 0.8 percent. Analysts expected pharmacy sales to rise 7.2 percent and front-end sales to rise 3.8 percent.

"The Thanksgiving weekend (was) notably softer" than a year ago, the company said.

In morning trading, Walgreen shares lost $1.68, or 4.3 percent, to $37.69.

Sales at stores open at least one year are considered a key indicator of retailer health because they shows results at older stores, leaving out revenue from newly opened locations payday advance online. Walgreen runs 7,147 drugstores around the U.S., including 517 that were opened in the last year. It also has about 500 worksite health centers, home care facilities, and specialty and mail-order pharmacies.

Walgreen opened 47 stores during the quarter, including seven that were relocated, and acquired two stores.

For November, the company's total revenue grew 8.7 percent to $5.36 billion from $4.93 billion a year ago. Pharmacy sales rose 9.7 percent. Front-end sales increased 6.1 percent.

For the first three months of fiscal 2010, Walgreen said its revenue grew 9.5 percent to $16.36 billion from $14.95 billion. That surpassed analyst expectations of $16.26 billion.

The company is scheduled to report its fiscal first-quarter results on Dec. 21. Analysts are looking for a profit of 48 cents per share, on average.

Walgreen key sales measure rises but misses goals

Hot News: Northrop Could Withdraw From Bidding on Tanker

Bowing to government pressure, Japan&S217;s central bank said Tuesday it would pump short-term funds into the country&S217;s banking system in a renewed bid to kick-start lending and breathe life into the moribund economy.

But the Bank of Japan refused to increase its purchases of government bonds and engage in full-blown &S220;quantitative easing,&S221; as called for by government officials. The measured response raised questions about whether the central bank, reluctant to take orders from politicians on monetary policy, was merely maneuvering to get government officials off its back.

Prime Minister Yukio Hatoyama has repeatedly warned that the return of deflation and a surging currency threaten to wipe out the economic recovery Japan has seen in the last two quarters. The yen climbed to a 14-year high against the dollar last week, dealing a blow to Japan&S217;s many exporters, because a strong yen makes Japanese goods more expensive abroad.

Meanwhile, prices and wages have slumped, raising fears of a prolonged and painful bout of deflation that could drag Japan&S217;s economic growth back into negative territory. The country is still reeling from its deepest recession in decades, brought on by the collapse in world trade that came in the wake of the global economic crisis.

At a hastily called emergency meeting on Tuesday, the Bank of Japan&S217;s board voted to provide &<65;10 trillion, or $115 billion, in short-term loans to commercial banks to bolster liquidity. The loans will carry a fixed interest rate of 0.1 percent and the bank said it would accept commercial paper as well as government and corporate bonds as collateral. The bank kept its key short-term interest rate unchanged at 0.1 percent.

&S220;While Japan&S217;s economy is picking up, there is not yet sufficient momentum to support self-sustaining recovery,&S221; the central bank said in a statement. &S220;The bank has judged that, in supporting the economic recovery from the financial side, it is most effective at present to further spread the strong effects of monetary easing.&S221;

While some analysts questioned how much effect the bank&S217;s move would have on the economy, Mr. Hatoyama said he was satisfied, for now.

&S220;I applaud their efforts to show their resolve to stop deflation and spur the economy,&S221; he told reporters.

The Bank of Japan&S217;s move bucks a nascent trend among monetary authorities around the globe to start scaling back emergency measures like rock-bottom interest rates. The central bank&S217;s moves also show how precarious the recovery of the world&S217;s second-largest economy seems to be.

Australia, whose economy has rebounded rapidly this year, on Tuesday raised interest rates by a quarter of a percentage point for a third straight month. And the U.S. Federal Reserve said Monday it would begin testing a strategy to shrink its trillion-dollar portfolio of mortgage-backed securities and eventually wind down its program to prop up financial markets online cash advance.

Still, Dubai&S217;s announcement last week that its investment arm would delay payments for some of its billions of dollars in debt has led to renewed jitters among some global investors.

Concerns over the financial health of the formerly cash-rich emirate have also sparked a flight to currencies that are considered safe havens, including the yen.

The yen, which declined in early trading Thursday on expectations the central bank would take bold policy steps to counteract the currency&S217;s appreciation, crept up to near 14-year highs after the announcement. Earlier, the Nikkei stock index rallied 2.4 percent on hopes that a respite from the strong yen would help exporters&S217; shares.

The Bank of Japan had initially expressed doubts over the need to inject further liquidity into the economy, pointing to stabilizing consumer prices and falling unemployment as signs of recovery.

But as exporters&S217; stock prices tanked recently, demands from government ministers for action by the central bank reached a fever pitch.

With interest rates already near zero, however, the bank has few options.

By providing a new lending facility, the central bank hopes to pump more money into the nation&S217;s banks to encourage them to increase lending to the troubled corporate sector.

The central bank is eager &S220;to show that any policy change is taken with the initiative of the Bank of Japan, not by political pressure,&S221; Masaaki Kanno, economist at JPMorgan Securities Japan, wrote in a note Tuesday.

Demands by officials for more action from the central bank reflect the government's own lack of options. Saddled with a crippling public debt approaching twice the size of its gross domestic product, Japan has limited room for stimulus.

This week, Mr. Hatoyama is set to announce an extra budget that will greatly exceed an initial estimate given by officials of &<65;2.7 trillion. But much of the package will be a mere reshuffling of programs promised by the previous government, and its effect on the economy is likely to be small, analysts say.

Moreover, Mr. Hatoyama, whose Democratic Party won a landslide victory in elections in August, has promised to slash wasteful public spending. While such a move is popular with the public, cutting public works with the economy so fragile could deal a blow to recovery.

The government is therefore leaning increasingly on the central bank.

&S220;We cannot resolve all our economic woes, especially those in our financial system with short-term fiscal spending,&S221; said Naoto Kan, deputy prime minister and state minister for national strategy. &S220;These two pillars must more closely integrate their actions.&S221;

Japan’s Central Bank Takes New Steps to Lift Economy

Hot News: Manufacturing Improved in November

CHICAGO (MarketWatch) -- After months of paying off debt, some Americans pulled out their credit cards and started charging in October, according to data from two credit tracking firms. The data suggest consumption habits don't ever really die, especially when the busiest shopping season of the year is at hand.

Synovate Mail Monitor and Credit Karma both said that average credit-card balances increased as consumers added new purchases. But Synovate also said that credit-card consolidation contributed to higher average balances.

The most recent government figures for consumers' use of credit are from September, when the Federal Reserve said outstanding consumer credit fell at a 7.2% annual rate, the eighth straight month of declines.

How much do you pay for your 401(k)?

Few investors know what they're paying in administrative and other fees for their 401(k), but there are ways to find out, says Ryan Alfred, president of BrightScope, a retirement-plan ratings and research firm. MarketWatch's Andrea Coombes reports.

Meanwhile, the U.S. Commerce Department said Monday that October sales increased more than expected, thanks mostly to an appetite for new cars, but also due to consumers buying a variety of other goods.

"It's silly to expect people to have a complete change in the model of how they buy things forever -- and especially in the holiday season," said John Ulzheimer, president of consumer education for Credit.com.

Synovate Mail Monitor, which tracks credit-card acquisition volume and response rates throughout the U.S., saw average balances edge up about 8% to $8,083 in the third quarter, from $7,489 in the second.

CreditKarma.com, a consumer research and credit-score site that follows a smaller percentage of cards, saw a bigger jump in card usage in October, with the average consumer carrying $7,573 of credit-card debt, a 14% increase from $6,641 a month earlier.

The holidays typically account for some 40% of spending at national retail stores with most shopping done in the four to six weeks before Dec. 25. But this year, Christmas came sooner as retailers began promotions and discounts as early as July.

"The seasonal aspect can be pretty strong," said Ken Lin, founder of Credit Karma. "Consumer spending is so much higher in the fourth quarter than any other quarter of the year."

Tighter limits also push balances higher

Anuj Shahani, director of competitive tracking services for Synovate, agrees that consumers are spending a little more but said the bigger impact on balances is a result of fewer cards and tighter credit limits in force payday loan lenders.

By Synovate's estimation, the average number of credit cards per household slipped to 2.8 in the third quarter from three in the first quarter. Many consumers saw their credit limits slashed, so some transferred their charging to one or two main cards. Consequently, the average balances went up.

Of course, one month does not make a trend. But if Americans' love affair with their credit cards is reheated, the eight months of steadfastly paying down debt may turn out to be nothing more than a temporary hiatus from credit cards.

"I don't see many people staying on the wagon and completely giving up credit cards permanently," said Credit.com's Ulzheimer. "As much as it pains me to say this, the best vehicle for buying things on a convenience basis is a credit card."

Sales rise in some sectors

There's no question that the consumer is still gun-shy about spending, despite the 1.4% rise in U.S. retail sales last month. The Commerce Dept. said a chunk of those sales were fueled by new demand in autos, rebounding from the post "cash for clunkers" stimulus crash.

Housing-related merchandise sales were sharply lower and electronic and appliance sales slipped, as did sporting goods and hobby sales.

But restaurant and bar sales, mail order and Internet purchases, and general merchandise sales got a boost -- all indicating that consumers were more flexible in their spending than they've been for most of the year.

What's troubling, however, is that last month also saw a slowdown in the number of credit-card defaults at a time when delinquencies -- mostly those 30 days or more late -- were on the rise. (Defaults, however, are still at high levels at the largest credit-card issuers.)

Delinquencies can be a harbinger of future losses and tend to lag default rates by three to six months. "It doesn't make any sense that delinquency rates are going up and default rates going down," Ulzheimer said. "There may be another wave of defaults coming."

Credit-card balances rise as holidays approach

SINGAPORE, Nov. 8 (Xinhua) -- The Concluding Senior Officials' Meeting of the Asia-Pacific Economic Cooperation (APEC) opened here Sunday, kicking off the APEC Leaders' Week.

Senior officials' meetings of the APEC are a series of meetings held three or four times a year, with the concluding session being convened to prepare agenda and documents for the subsequent ministerial and leaders' meetings.

The theme of this year's APEC Singapore meetings is "Sustaining Growth, Connecting the Region" No teletrak payday loan. It is expected that when leaders of the 21 APEC members meet on Nov. 14-15, they will focus on how to secure an economic recovery and fight trade protectionism. Backgrounder: APEC Senior Officials' Meetings

Concluding Senior Officials' Meeting of APEC opens

(Reuters) – U.S. companies hurt by the global credit crisis are continuing to hold more cash, even as the economy begins to show signs of improvement, the Wall Street Journal said, citing its analysis of company filings.

In the second quarter, the 500 largest non-financial U.S. companies by total assets held about &&6;994 billion in cash and short-term investments, or 9.8 percent of their assets, according to the paper&&9;s analysis of corporate filings.

In contrast, the companies held &&6;846 billion, or 7.9 percent of assets, a year ago, the paper said.

The trend seems to have continued in the third quarter, despite an improving economy, the paper said faxless payday advance.

The 248 companies that have reported third-quarter results so far saw their cash holdings go up by a percentage point sequentially to 11.1 percent of assets, the paper said.

Companies such as Alcoa Inc (AA.N), Google Inc (GOOG.O), PepsiCo Inc (PEP.N) and Texas Instruments Inc (TXN.N) reported big third-quarter increases in cash holdings, the paper said.

(Reporting by Sakthi Prasad in Bangalore; Editing by Muralikumar Anantharaman)

U.S. companies holding more cash: report

One of the biggest costs of Beijing's rapid economic development has been the destruction of many of the city's old courtyard houses, which line the once numerous alleys known as hutongs. The crux of the problem is how to preserve the old buildings and, at the same time, bring them and the rest of the city, into the 21st century. One of China's most famous up-and-coming architects, has devised a striking solution.Zhang Wei says he was shocked when he first saw the structureZhang Wei spends his life working to preserve the folklore and traditions of old Beijing. He was not sure what to expect when he went to see what had been done to modernize a courtyard house in the city center."I was shocked by it," Zhang said. "When I first walked in, I couldn't figure out what that shiny thing was. It looks like an egg. It also looks like a water drop. It's really beautiful."The surprising addition that put a smile on his face is a large silver bubble that looks like a drop of liquid mercury, oozing over the corner of the traditional courtyard house.Bubble structure is being used commercially to sell wine and antiquesThe bubble's highly-polished metal surface reflects the trees and its edges disappear into the sky. The space is being used commercially as a shop to sell wine and antique furniture. The bubble conceals the staircase to the rooftop deck. Also hidden inside is a modern necessity not available in traditional courtyard homes - a toilet. The architect, Ma Yansong, is better known as the winner of a high-profile international competition to design a 56-story residential building in Canada payday loan online. Due to be completed next year, Ma calls his design the "Absolute Tower". But it has been nicknamed the "Marilyn Monroe Tower" because of its swirling shape.While on the verge of being famous internationally, Ma's grand beautification plans for his hometown, Beijing, are much closer to his heart.Ma Yansong won a high-profile international competition to design a residential building in Canada"This is Tiananmen Square. This is the square, this is the Forbidden City and this is the Congress building and the national museum. So, we basically covered the whole concrete plaza with trees," Ma explained.Covering Tiananmen Square with trees, or building huge floating gardens in downtown Beijing, is not likely to happen any time soon. But Ma is at least pleased with the bubble in the hutong."We basically make a new space. It looks like a silver, liquid thing. It looks very futuristic," Ma explained. "It looks absolutely not [like] the old building, but it's attached to the old building, and forms a new courtyard."Wang Xiaolin applauds the effort for its innovative flairOne of the house's main tenants, Wang Xiaolin, applauds that effort."I think preservation also needs innovation," Wang said. "So, I think what we are doing here is preservation and innovation. I think after a few years, other people will realize it too. Just imagine - in old Beijing hutongs, you can randomly see some buildings like this. Wouldn't that be great?"

Futuristic Addition Adorns Traditional Beijing Courtyard Home

NEW YORK (Reuters) – U.S. stocks could hit more speed bumps this week if the start of the third-quarter earnings season offers little evidence that the economic recovery is gaining strength.

With second-quarter earnings primarily boosted by cost-cutting, investors want to see if the latest quarterly results will show an improvement in revenues. That&&9;s a priority for investors because revenue growth is deemed a crucial indicator of consumer and corporate spending.

Aluminum company Alcoa Inc (AA.N), a Dow component, is scheduled to post quarterly results on Wednesday after the market&&9;s close, marking the unofficial kickoff of the latest earnings parade.

The other marquee names on this week&&9;s brief earnings calendar are PepsiCo (PEP.N), Yum Brands Inc (YUM.N), Costco Wholesale Corp (COST.O) and Monsanto Co (MON.N).

Investors are clamoring for more solid signs of economic stability after the Standard & Poor&&9;s 500 (.SPX) has climbed 51.5 percent from a 12-year closing low on March 9.

SHOW US THE MONEY

By that score, the latest quarterly earnings are a high-stakes endeavor, with investors saying to Corporate America: "Show us the money."

William Rutherford, president and chief investment officer of Rutherford Investment Management in Portland, Oregon, said that "earnings have to be good enough to justify the run-up we&&9;ve had.

"We haven&&9;t got all the problems solved by any means," he added. "We&&9;re still going to see bumps along the way."

Indeed, a string of surprisingly weak economic reports in recent days gave investors a cold reminder that the recovery will not be without hitches, even with the massive stimulus from the government.

On Friday, dour news came from the government&&9;s nonfarm payrolls report showing that U.S. employers shed far more jobs in September than expected. The jobs data put the stock market&&9;s bulls on the defensive. And this week could be just as daunting if there are few positive surprises.

The benchmark S&P 500 suffered its second straight weekly drop on Friday, and it is down 4.3 percent from its September 22 close, its highest finish since the current rally began.

"The next big thing we&&9;re going to talk about is earnings," said Ryan Detrick, senior technical strategist at Schaeffer&&9;s Investment Research in Cincinnati, Ohio savings account payday loans. "Usually after the first couple of days, you get a feel as to what the overall trend is going to be."

Thomson Reuters data show that third-quarter earnings are forecast to drop 24.7 percent from a year earlier, a projection that gives companies a low hurdle to overcome following a surprisingly improved second quarter.

MERGER WATCH AND BERNANKE

More takeover deals could also dictate this week&&9;s market action -- if there are any, according to analysts.

A flurry of takeovers over the last two weeks has dominated the headlines as companies jostle to bolster their revenue streams in an uncertain economy.

"With many companies&&9; growth challenged, we are seeing the tip of the iceberg in M&A," said Scott Billeaudeau, portfolio manager at Fifth Third Asset Management in Minneapolis.

Notable deals in the past week included Xerox Corp&&9;s (XRX.N) planned purchase of Affiliated Computer Services Inc

(ACS.N).

On Thursday, Mexican brewer and bottler FEMSA said it was in talks with several companies about a possible deal involving its beer business.

This week&&9;s economic calendar is light. But on Monday, the spotlight will be on the Institute for Supply Management&&9;s September index of activity in the vast U.S. services sector.

According to a Reuters poll of economists, the ISM non-manufacturing index, or services index, is forecast to have rebounded to 50.0, the dividing line between contraction and growth, after hitting 48.4 in August.

Investors also will pay attention to monthly sales reports, due on Thursday, from major retailers to assess how consumers are faring as the job market remains weak.

Federal Reserve Chairman Ben Bernanke will be on center stage as he is scheduled to give a speech on the U.S. central bank&&9;s balance sheet before a Fed conference in Washington on Thursday. The next day, Fed Vice Chairman Donald Kohn will speak on monetary policy and the financial crisis at the same conference.

(Editing by Jan Paschal )

Wall Street Week Ahead: Stocks may hit earnings speed bumps

LONDON – World stocks traded in narrow ranges Friday as investors looked to leaders of the Group of 20 rich and developing economies assembled in the U.S. for assurance that they will not stifle global economic recovery by prematurely taking away stimulus measures.

In afternoon trading in Europe, Britain's FTSE 100 was up 0.4 percent to 5,105.61 and France's CAC 40 climbed 0.02 percent at 3,759.01. Germany's DAX was down 0.1 percent at 5,600.09.

Asian markets closed down, with Tokyo the heaviest loser &<51; down 2.6 percent &<51; and Wall Street was set to open marginally higher after markets fell Thursday. Investors had pulled out of stocks amid worries about the sustainability of this year's rally and news of an unexpected drop in sales of existing homes in August.

Dow Jones industrial average futures rose 0.3 percent to 9,661 and Standard & Poor's 500 futures added 0.3 percent to 1,047.60.

Investors are increasingly nervous that governments will unwind emergency measures that have helped money flow through financial markets since the crisis erupted last year. This week, the U.S. Federal Reserve announced it would slow its purchases of mortgage-backed securities, while the European Central Bank said it would curtail certain types of dollar-denominated loans.

"Investors are a bit nervous after the run the markets have had, which is entirely rational," said David Hussey, head of European equities at MFC Global Investment Management. "We have had a bit of a sell-off this week. The market's probably got a bit overextended in the short term and there has been retrenchment across the board, in America, Asia and Europe has followed that."

Amid the concern, G-20 leaders were gathered for a two-day meeting in the U.S. dedicated to bringing about a strong and sustainable turnaround after the world's worst downturn in decades. Both President Obama and British Prime Minister Gordon Brown said nations should not move too quickly to end low interest rates, stimulus spending and other props to growth payday loans.

"Much of the gains across asset classes so far this year &<51; to levels not justified by fundamentals &<51; have been a direct result of cheap and easily available funding," Dariusz Kowalczyk, chief Investment strategist for SJS Markets in Hong Kong, wrote in a note. "News that the amount and availability of liquidity will be imminently limited caused fears that asset bubbles will be diffused sooner."

With little economic and corporate data due for release in Europe, investors were awaiting figures on U.S. durable goods orders in August, due later Friday.

"Anything that gives traders cause for concern &<51; and an unexpected decline in durable goods would do precisely this &<51; could easily act as the trigger to take more money off the table ahead of the weekend break," said Anthony Grech, market strategist at IG Index.

In Japan, the Nikkei 225 stock index shed 278.24 points, or 2.6 percent, to 10,265.98 after Nomura, the country's leading brokerage, announced its biggest shares sale ever, weighing on the broader market.

Hong Kong's Hang Seng lost 0.1 percent to 21,024.40, and China's Shanghai index dropped 0.5 percent.

Elsewhere, South Korea's Kospi shed 0.1 percent, India's Sensex edged lower by 0.1 percent and Indonesia's index lost 1.0 percent. Taiwan and Australia's markets were up 0.3 percent.

Overnight on Wall Street, the Dow fell 0.4 percent to 9,707.44 and the S&P 500 index lost or 1.0 percent to 1,050.78.

Oil prices gained slightly after a two-day plunge. Benchmark crude for November delivery was up 35 cents at $66.24 in European trade.

___

AP Business Writer Jeremiah Marquez in Hong Kong contributed to this report.

World stock markets mixed as G-20 eyes recovery

LONDON (AFP) – European equities edged up on Wednesday, lifted by overnight gains on Wall Street and buoyant commodity prices, with investors on tenterhooks before a US Federal Reserve interest rate call.

The FTSE 100 index gained 0.29 percent to 5,157.26 points in late morning deals.

Frankfurt&&9;s DAX 30 advanced 0.17 percent to 5,719.06 points and in Paris the CAC 40 added 0.14 percent to 3,828.97 points near the half-way stage.

The DJ Euro Stoxx 50 index of top eurozone shares climbed 0.26 percent to 2,889.36 points.

London stocks pared gains after news that Bank of England policy-makers had voted unanimously earlier this month to freeze British interest rates at a record low and maintain its credit-easing policy.

Later on Wednesday, the Federal Reserve will conclude a two-day meeting and is expected to hold to its massive economic stimulus programme as it seeks to support a fragile US recovery from recession.

Analysts say that the Fed is certain to keep a near-zero interest rate along with an array of programs to keep credit flowing.

The accompanying statement could provide hints on the speed and shape of the economic recovery, and any monetary policy response in the coming months.

"All eyes (are) on the Fed rate announcement and the tone of any accompanying statement," said Arifa Sheikh-Usmani, equity trader with financial betting firm Spreadex.

"I would expect markets to trade fairly sideways until that comes out later," she added.

"We are still seeing clients buying on weakness which shows that there is still some momentum in the market, however, the rally is certainly less enthusiastic than it was a couple of weeks ago my credit score."

The Federal Open Market Committee (FOMC), headed by Fed chairman Ben Bernanke, will issue a statement at 1815 GMT.

In foreign exchange trade on Wednesday, the dollar fell to a new one-year low against the euro amid expectations that US interest rates will remain low for a considerable length of time.

The dollar has fallen sharply this week as many investors sold safe haven assets on the back of growing economic optimism, dealers said.

The European single currency jumped as high as 1.4842 dollars in Asian trade on Wednesday, before pulling back slightly.

Across the Atlantic on Tuesday, Wall Street had struck fresh 2009 highs on economic recovery optimism and company earnings prospects.

The Dow Jones Industrial Average gained 0.52 percent to 9,829.87 points.

The tech-heavy Nasdaq composite rose 0.39 percent to 2,146.30 while the broad-market Standard & Poor&&9;s 500 index added 0.66 percent to 1,071.66 points.

Meanwhile, leaders of the G20 key developed and developing countries will kick off two-day talks in the US city of Pittsburgh, Pennsylvania, on Thursday.

They are expected to discuss ways to unwind their unprecedented support to fight the global economic crisis -- although they remain cautious for fear of jeopardizing a return to growth.

The Tokyo stock market will reopen on Thursday after a series of public holidays.

European markets rise before Fed rate decision

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BEIJING, Sept. 20 (Xinhua) -- China's major state-owned enterprises (SOEs) under the supervision of the central government reported a 30-percent fall in net profit last year, the country's state assets supervisor said over the weekend.

A total of 141 SOEs under the supervision of the State-owned Assets Supervision and Administration Commission of the State Council reported a net profit of 696.18 billion yuan (101.96 billion U.S. dollars) last year, down 30.8 percent from a year ago, the commission said in an online statement.

Yet, total assets of the 141 SOEs rose for the fifth consecutive year since 2004. Assets of the 141 state firms were worth 5.56 trillion yuan at the end of 2008, up 8.6 percent from the previous year.

Net profit of centrally administered SOEs had been rising for four years in a row from 2004 to 2007, but it fell last year as the global financial crisis struck no fax cash advance.

The commission said 83 out of the total 141 were able to report a year-on-year growth in net profit last year.

These 141 SOEs also turned in taxes worth 1.04 trillion yuan last year, up 18.6 percent from a year ago.

The total assets of centrally administered SOEs were augmented by 2.6 trillion yuan in the past five years, or at an annualized average of 13.7 percent from 2004 to 2008. Special Report: Global Financial Crisis

China's major SOEs report 30% fall in profit last year

BEIJING (Reuters) – A Goldman Sachs Group private equity fund is investing about &&6;250 million in Chinese carmaker Geely Automobile (0175.HK), a move that could free up capital for Geely&&9;s parent to bid on Ford&&9;s (F.N) Volvo unit, the Wall Street Journal reported, citing an unidentified source.

Goldman Sachs Capital Partners&&9; purchase of Geely convertible bonds and warrants would give it an unspecified minority stake in the carmaker, an investment that would be announced on Monday, the newspaper reported, citing a Geely executive cash advance america.

Goldman Sachs and Geely officials on Sunday were not immediately available to comment on the report. Geely said earlier this month that its parent was considering a bid for Volvo with a local government-backed investment firm.

(1&&6;=6.83 yuan)

(Reporting by Kirby Chien, Editing by Dean Yates)

Goldman Sachs fund to invest $250 million in Geely: report

Stock markets stampeded higher on Wednesday and major Wall Street benchmarks touched their highest levels in 11 months on optimism that an economic rebound was under way.

Financial shares like credit-card companies and regional banks led a buying spree that lifted most corners of the financial markets.

Investors anticipating a resurgence in industrial output clamored to snap up crude oil, copper and other raw materials used to feed factories. Those who expect inflation pushed the price of gold sharply higher. And optimistic stock traders helped to send the Dow 100 points higher.

At the close, the Dow Jones industrial average was up 108.30 points or 1.12 percent, to 9,791.71, and the broader Standard &&8; Poor&S217;s 500-stock index was 1.5 percent or 16.13 points higher at 1,068.76, climbing to its highest levels since early October. The Nasdaq rose 1.45 percent or 30.51 points, to 2,133.15.

&S220;We&S217;ve been riding this thing for a long time,&S221; said Bill Strazzullo, chief market strategist at Bell Curve Trading. &S220;You notice that the sell-offs never last more than a couple days. We&S217;re going to stay with it. We still think there&S217;s a little bit more to go.&S221;

Mr. Strazzullo said his firm was eyeing benchmarks of 1,100 and 1,150 on the S.&&8;P. 500 (it is currently trading at about 1,060) as moments to pause and take some profits and reassess whether the markets seem primed for more gains.

It has been a good week for the bulls on Wall Street.

A new report on industrial production showed that factories, mines and utilities ramped up their output for a second month in August, a harbinger that a recovery was under way. On Tuesday, the Federal Reserve chairman, Ben S instant payday loans. Bernanke, said that the recession was most likely over, though he warned of a plodding recovery.

&S220;You&S217;re getting more evidence that the economy&S217;s turning,&S221; said Anthony Dwyer, equity market strategist at FTN Equity Capital Markets. &S220;This is going to be a big recovery because it was a big decline.&S221;

Shares of Bank of America and JPMorgan Chase were each up more than 2 percent, and a closely watched index of regional bank shares was up more than 5 percent.

And as stocks surged, Wall Street&S217;s gold rush intensified.

The price of gold leaped $13 to $1,018 an ounce as traders bet that prices of precious metals would continue to climb as the dollar weakened and the economy healed. Investors rushed to buy crude oil, copper and other commodities that could weather an outbreak of inflation.

Some investors believe that inflation &<51; or at least, the fear of inflation &<51; is seeping back into the economy as factories restart production and industrial output rebounds. The government reported on Wednesday that retail prices rose 0.4 percent last month, largely because of a spike in gasoline costs.

Even though the Federal Reserve expects inflation to remain under wraps with so much slack in the economy and millions of people out of work, investors anticipating a surge in prices and a weaker dollar are betting heavily on commodities and other currencies. Crude-oil prices rose to $72 a barrel in New York, and the dollar&S217;s value slumped against six major currencies, dipping to its lowest levels in almost a year.

Gold and Stocks Move Sharply Higher

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HONG KONG (Reuters) – Asian stocks edged up on Tuesday, with markets in South Korea and Taiwan closing at 14-month highs, as investors put their faith in the global economic recovery and looked past a trade spat between the United States and China.

European shares opened slightly higher, with futures on the Dow Jones Euro Stoxx 50 up 0.4 percent.

The technology and exporter sectors were the biggest gainers on a day without a major theme driving the markets in Asia. LG Electronics (066570.KS), the world&&9;s No. 3 handset maker, jumped more than 3 percent in Seoul to snap a weeklong slide.

"Investors want to know if the U.S. economy is ready for a turnaround without government help and how consumers are faring," said Kim Young-june, a market analyst at SK Securities in Seoul, before U.S. retail sales data is released later.

The Nikkei average (.N225) rose 0.2 percent as companies such as Canon Inc (7751.T) bounced back from a slide sparked by the yen&&9;s jump to a seven-month high against the dollar, which took the Japanese currency into territory seen as damaging to exporter earnings.

The yen slipped beyond 91 per dollar, providing some relief to investors worried that sustained gains would prove a serious obstacle to Japan Inc&&9;s gradual recovery this year.

While officials in the outgoing Japanese government voiced concern about the yen&&9;s rise, the former finance minister tipped to again take the helm of the ministry -- Hirohisa Fujii -- has said Japan should not intervene in markets.

"Market participants speculate Fujii may be more tolerant of a stronger yen and reluctant about intervening in the forex market," said Makoto Yamashita, chief Japan interest rate strategist at Deutsche Securities in Tokyo.

Japan has racked up foreign reserves totaling more than &&6;1 trillion, second only to China&&9;s, from its previous bouts of yen-selling intervention.

But Japan has stayed out of the market since 2004, even during last year&&9;s violent yen surge as leveraged carry trades were unwound. The lack of action has stirred questions about whether Tokyo has already adopted a more hands-off currency policy.

Trading activity was limited during the day because Hong Kong&&9;s financial markets were closed for the morning as Typhoon Koppu swept through the city. The Hong Kong bourse was set to open for the afternoon session.

Taiwan&&9;s TAIEX (.TWII) outperformed the region, climbing 1.2 percent to a 14-month high on hopes that the launch of Microsoft&&9;s Windows 7 will boost demand for PC makers such as Asustek (2357 payday loan.TW).

Seoul&&9;s KOSPI (.KS11) rose 1.1 percent, with financial shares such as Shinhan Financial Group (055550.KS) leading gains.

The MSCI index of Asia-Pacific shares (.MIAPJ0000PUS) was up 0.9 percent, recouping some of the previous day&&9;s losses and hovering just below a one-year peak struck last week. For the year, the MSCI benchmark for Asia is still up about 53 percent.

On Monday, the U.S. S&P 500 (.SPX) edged up 0.6 percent and reached its highest levels of 2009 after a slew of merger activity suggested big investors still see value in the market following this year&&9;s rebound.

Optimism about potential deals overshadowed concerns about trade friction between the United States and China after Washington imposed special duties on Chinese tire imports.

China unveiled data on Tuesday showing that tire exports fell in the first half of a year to rebut Washington&&9;s accusation it was flooding the U.S. market, even as both countries moved to allay concerns about a trade war.

The battered U.S. dollar edged down in Asia, falling back toward a one-year low touched on Friday. The dollar index (.DXY), a gauge of its performance against six major currencies, was down 0.1 percent at 76.596.

The pound helped drag the dollar lower, rising 0.4 percent to &&6;1.6640 after a report showing house prices in England and Wales rose for the first time in two years in August.

Against the yen, the dollar edged up 0.2 percent to 91.10 yen, pulling up from the seven-month low of 90.18 yen hit on Monday. The euro dipped 0.1 percent to &&6;1.4615 but hovered near a nine-month high.

The Australian dollar slipped after the country&&9;s central bank felt the economy was substantially stronger than expected at this month&&9;s policy meeting but decided there was enough uncertainty over the outlook to argue against a rate hike, according to meeting minutes.

The Aussie dipped 0.2 percent to &&6;0.8604, just below a one-year high.

Safe-haven government bonds lost ground as stock markets stabilised. The benchmark 10-year Japanese government bond yield edged up 2 basis points to 1.310 percent, holding in a range between 1.285 percent and 1.355 percent over the past few weeks.

South Korea and Taiwan shares hit 14-month highs

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