2011年6月27日星期一

NYSE, D.Boerse to pay dividends, end investor suits (Reuters)

在 ServiceModel 客户端配置部分中,找不到引用协定“TranslatorService.LanguageService”的默认终结点元素。这可能是因为未找到应用程序的配置文件,或者是因为客户端元素中找不到与此协定匹配的终结点元素。
在 ServiceModel 客户端配置部分中,找不到引用协定“TranslatorService.LanguageService”的默认终结点元素。这可能是因为未找到应用程序的配置文件,或者是因为客户端元素中找不到与此协定匹配的终结点元素。

NEW YORK (Reuters) – NYSE Euronext (NYX.N) and Deutsche Boerse AG (DB1Gn.DE) agreed to pay roughly $900 million of dividends to settle U.S. shareholder lawsuits challenging their roughly $10 billion merger to create the world's largest exchange operator.

According to an agreement filed on June 17 with the Delaware Chancery Court, the companies would pay shareholders 2 euros (US$2.85) per share outstanding of the combined holding company after the planned merger is completed.

The agreement requires court approval, and would end shareholder lawsuits in New York and Delaware state courts. It essentially reflects the special dividend that the companies announced on June 7, and which would be paid once a merger closes.

Shareholders had sued NYSE Euronext shortly after that company announced its planned sale to its German counterpart in February. They complained that the takeover price was too low, and that the company should have courted other bidders.

According to the agreement, the exchange operators denied wrongdoing, and the shareholders settled to avoid delays and uncertainties from continued litigation.

The combined company would operate in the United States and across Europe. Shareholders of Deutsche Boerse would own roughly 60 percent.

NYSE Euronext shareholders are scheduled to vote on the merger on July 7. Deutsche Boerse shareholders would have until July 13 to tender their shares. A closing is expected by year end.

The cases are In re: NYSE Euronext Shareholders Litigation, Delaware Chancery Court, No. CA6220; and In re: NYSE Euronext Shareholder Litigation, New York State Supreme Court, New York County, No. 773000/2011.

(1 euro = $1.427)

(Reporting by Jonathan Spicer and Jonathan Stempel, editing by Bernard Orr)


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How the major stock indexes fared Friday (AP)

在 ServiceModel 客户端配置部分中,找不到引用协定“TranslatorService.LanguageService”的默认终结点元素。这可能是因为未找到应用程序的配置文件,或者是因为客户端元素中找不到与此协定匹配的终结点元素。
在 ServiceModel 客户端配置部分中,找不到引用协定“TranslatorService.LanguageService”的默认终结点元素。这可能是因为未找到应用程序的配置文件,或者是因为客户端元素中找不到与此协定匹配的终结点元素。

Stocks fell Friday, giving the market another losing week, after poor earnings reports from two major technology companies suggested that businesses invested less in new technology as the economic recovery slowed.

Fears of a spreading European debt crisis also weighed on markets. Italian bank stocks plunged and trading in some of them was halted after Moody's warned that it might downgrade their credit ratings.

The Dow Jones industrial average fell 115.42 points, or 1 percent, to 11,934.58.

The Standard & Poor's 500 index fell 15.05, or 1.2 percent, to 1,268.45.

The Nasdaq composite fell 33.86, or 1.3 percent, to 2,652.89.

For the week:

The Dow is down 69.78, or 0.6 percent.

The S&P is down 3.05, or 0.2 percent.

The Nasdaq is up 36.41, or 1.4 percent.

For the year to date:

The Dow is up 357.07, or 3.1 percent.

The S&P is up 10.81, or 0.9 percent.

The Nasdaq is up 0.02 points, or less than 0.1 percent.


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FTSE closes lower on poor US jobs data (AFP)

在 ServiceModel 客户端配置部分中,找不到引用协定“TranslatorService.LanguageService”的默认终结点元素。这可能是因为未找到应用程序的配置文件,或者是因为客户端元素中找不到与此协定匹配的终结点元素。
在 ServiceModel 客户端配置部分中,找不到引用协定“TranslatorService.LanguageService”的默认终结点元素。这可能是因为未找到应用程序的配置文件,或者是因为客户端元素中找不到与此协定匹配的终结点元素。

LONDON (AFP) – Share prices in London closed sharply lower on Thursday on poor US jobs data and continued eurozone debt worries.

The benchmark FTSE 100 index fell 1.71 percent to close ar 5,674.38 points.

Lloyds Banking Group (LBG) was the most widely traded stock, with 158 million shares changing hands, followed by Royal Bank of Scotland (RBS), which saw 125 million units switch ownership.

International Consolidated Airlines was the best blue-chip performer, rising 0.78 percent -- or 1.9 pence -- to finish at 244.4, followed by cruise liner firm Carnival, which rose 0.69 percent -- or 16 pence -- at 2,334.

London-listed mining stocks bore the brunt of the negative sentiment with Vedanta Resources was the biggest faller of the day, shedding 6.86 percent -- or 135 pence -- to close at 1,832.

It was followed by Eurasian Natural Resources, which slipped 5.05 percent -- or 37 pence -- to finish at 695.5

On the currency markets, a pound was worth 1.5986 dollars at 17:03 BST, down from 1.6125 at the same time Wednesday, while it stood at 1.1281 euros, up from 1.1207 over the same period.


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Bulls ready to charge into a wall of worry (Reuters)

在 ServiceModel 客户端配置部分中,找不到引用协定“TranslatorService.LanguageService”的默认终结点元素。这可能是因为未找到应用程序的配置文件,或者是因为客户端元素中找不到与此协定匹配的终结点元素。
在 ServiceModel 客户端配置部分中,找不到引用协定“TranslatorService.LanguageService”的默认终结点元素。这可能是因为未找到应用程序的配置文件,或者是因为客户端元素中找不到与此协定匹配的终结点元素。

NEW YORK (Reuters) – A bounce could be in the cards for stocks next week as bulls defend a key technical level and managers buy the quarter's winners to prop up their books.

But gains coming from healthcare, staples or other defensive sectors that have outperformed the market in the last several months would only support the notion that the U.S. stock market needs to complete its correction phase and panic selling must occur before a more sustained comeback develops.

"We want to see more fear," said Ari Wald, equity strategist at Brown Brothers Harriman in New York.

But be careful what you wish for.

The sources of the recent decline, including Greece's slow march toward a default on its debt, weak U.S. economic data and the creeping deadline to lift the U.S. debt ceiling, are far from being resolved.

HOLDING THE 200-DAY SHOWS THE WAY

Despite a drop that dragged the S&P 500 as much as 8.2 percent below its three-year high hit in early May, the index held above its 200-day moving average -- a major line in the sand as the bulls and bears battle for control of the market.

The slide had been telegraphed for weeks and the market's by-the-book performance -- pulling back to a widely followed level -- seems too well choreographed for some analysts.

"The fact that we went to the 200-day ... seems just a little too perfect," said Marc Pado, U.S. market strategist at Cantor Fitzgerald & Co in San Francisco.

He said the timing of the move was supportive, as the market creates a technical base before resuming its upward move on the back of strong earnings.

"You might get an attempt at a shakeout move," Pado said. "But sometimes the majority is right."

Even if they are right, they don't seem too convinced. So far this quarter -- on track to be the first in the red for the S&P 500 in the last year -- daily volume on the New York Stock Exchange, NYSE Amex and Nasdaq has averaged 7.22 billion shares.

That is down from the 7.94 billion shares traded daily during the first quarter, when the S&P 500 gained 5.4 percent. Commitment to the market has waned. The frantic selling, the flushing down of day traders seems absent so far in this corrective phase.

Despite holding above that level, the market has not cleared the danger zone of dipping under its 200-day average. The curve has a steep slope, as the S&P 500 took roughly two years to notch a 100 percent advance from its March 2009 lows.

The 200-day moving average now stands at 1,263.47, less than 0.4 percent below the S&P 500's close on Friday.

"Every time you test a resistance or support level, you make it weaker," said Nicholas Colas, chief market strategist of the ConvergEx Group in New York. "It's almost like a piece of metal. Every time you hit it, it grows more fragile and that's why people are really worried the third or fourth time."

After three straight days of declines, the S&P 500 fell 0.24 percent for the week and finished at 1,268.45 -- its seventh decline in the last eight weeks.

The Dow industrials (.DJI) lost 0.58 percent for the week, closing on Friday at 11,934.58, while the Nasdaq Composite (.IXIC) rose 1.39 percent for the week to end at 2,652.89.

The next two weeks, before quarterly earnings season starts in earnest, could be marked by wild swings like the ones seen recently. On Thursday, after a market-friendly headline out of Greece, the S&P 500 posted its strongest comeback in almost a year, on days when the benchmark has fallen more than 1 percent.

From its session low on Thursday, the S&P 500 climbed more than 20 points into the close. The Dow's swing covered 233.79 points from its intraday low to session high on Thursday.

But buying interest waned on Friday. Aside from doubts about the passage in Athens' Parliament of higher taxes and service cuts, weak Italian banks also are scaring investors.

The Federal Reserve on Wednesday gave a bleak outlook on the economy, lowering its forecasts for GDP growth for both 2011 and 2012. And Fed Chairman Ben Bernanke found it hard to explain the sources of a so-called economic "soft patch" that seems to have become pervasive.

SUMMER STORM OF DATA

Besides the weekly jobless claims numbers, housing and manufacturing data will attract the most attention next week.

The S&P Case-Shiller April home prices index on Tuesday and the National Association of Realtors pending home sales for May on Wednesday could confirm the housing market's double dip.

Factory activity grew in May at its slowest pace since September 2009, according to the Institute for Supply Management, and Friday's ISM number for June is expected to drop to 51.9, indicating an even slower rate of growth.

New applications for unemployment insurance on Thursday are expected to land above 400,000 for a 12th straight week, according to economists polled by Reuters.

Personal income and consumption, out Monday, are expected to tick higher in May. Consumer confidence, out Tuesday from the Conference Board, is forecast at a June reading of 60.5, just a touch lower than May's 60.8, a Reuters poll showed. Despite a recent string of weak data in May, a sharp drop in crude oil prices is expected to buoy consumer confidence.

(Reporting by Rodrigo Campos; Additional reporting by Edward Krudy; Editing by Jan Paschal)


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Stocks surge on Greek bailout hopes (AP)

在 ServiceModel 客户端配置部分中,找不到引用协定“TranslatorService.LanguageService”的默认终结点元素。这可能是因为未找到应用程序的配置文件,或者是因为客户端元素中找不到与此协定匹配的终结点元素。
在 ServiceModel 客户端配置部分中,找不到引用协定“TranslatorService.LanguageService”的默认终结点元素。这可能是因为未找到应用程序的配置文件,或者是因为客户端元素中找不到与此协定匹配的终结点元素。

LONDON – Hopes that Greece will get a second bailout boosted market sentiment around the world on Friday, a day after stocks and the euro plunged on fears over the pace of the global economic recovery.

Stocks, particularly in Europe, have recovered a large chunk of the losses posted on Thursday after EU leaders backed another bailout for Greece should the Parliament there approve euro28 billion in austerity measures in a vote next week.

"We agreed that there will be a new program for Greece," German Chancellor Angela Merkel said in Brussels.

The austerity measures have to be passed by the Greek Parliament for the next batch of money due from last year's bailout and for a second bailout to be agreed. If lawmakers fail to back the package, then Greece will face a default on its debts.

The markets are hopeful that Greece will get another financial lifeline from its partners in the eurozone and the International Monetary Fund to see it through the next couple of years. That has eased concerns over what impact a Greek debt default would have on Europe's financial system. Many analysts think a default could trigger mass panic in the markets, akin to what happened in the aftermath of the collapse of U.S. investment bank Lehman Brothers back in 2008.

"The EU and IMF backed Greece's austerity measures, reassuring markets that Greece will receive a bailout if George Papandreou manages to pass through his austerity bill next week," said Simon Furlong, a trader at Spreadex.

In Europe, the FTSE 100 index of leading British shares was up 0.9 percent at 5,726 while Germany's DAX rose 0.8 percent to 7,198. The CAC-40 in France was 0.8 percent higher at 3,821.

One market bucking the trend was Italy's FTSE MIB, which was trading 0.5 percent lower on the back of a retreat in banking shares. Intesa Sanpaolo Spa and Unicredit Spa were both down over 3 percent.

Wall Street was poised for a solid opening — Dow futures were up 0.3 percent at 12,008 while the broader Standard & Poor's 500 futures rose a similar rate to 1,281.

The euro was down 0.3 percent at $1.4226 but that's still up just over a cent higher than the low it recorded Thursday, when investors' appetite for risk was battered. When investors' risk appetite is low, the euro usually suffers, especially against the dollar.

The crisis of confidence in the eurozone is likely to remain even if Greece gets a second bailout, with many economists predicting that the country will have to restructure its debts in some way in the coming years, especially if the economy shrinks further.

"Greece would be fully funded for some time to come of course; but then if the economy continues to deteriorate in the months ahead, investors are likely to begin to fear the worst fairly quickly in the knowledge that the political will to offer further assistance would be probably spent," said Neil Mellor, an analyst at Bank of New York Mellon.

Earlier, Asian markets rallied on the Greek bailout hopes.

Japan's Nikkei 225 was 0.9 percent higher to close at 9,678.71, while South Korea's Kospi rose 1.7 percent to 2,090.81.

Hong Kong's Hang Seng added 1.9 percent at 22,171.95, with banking shares getting a boost after Chinese Premier Wen Jiabao wrote a newspaper commentary indicating China is getting its inflation problem under control.

Mainland Chinese shares also gained on Wen's comments. The Shanghai Composite Index rose 2.2 percent, the biggest gain in four months, to 2,746.21, while the Shenzhen Composite Index gained 2.3 percent to 1,136.39.

Meanwhile, oil prices clawed back some ground lost on Thursday after the International Energy Agency said it will make 60 million barrels available over a 30-day period, half of which will come from the U.S. Strategic Petroleum Reserve. The shock decision sent oil prices tumbling by around 5 percent.

By late morning London time, benchmark oil for August delivery was up 76 cents to $91.78 a barrel in electronic trading on the New York Mercantile Exchange.

____

Pamela Sampson in Bangkok contributed to this report.


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Stocks end another week lower on Europe worries (AP)

在 ServiceModel 客户端配置部分中,找不到引用协定“TranslatorService.LanguageService”的默认终结点元素。这可能是因为未找到应用程序的配置文件,或者是因为客户端元素中找不到与此协定匹配的终结点元素。
在 ServiceModel 客户端配置部分中,找不到引用协定“TranslatorService.LanguageService”的默认终结点元素。这可能是因为未找到应用程序的配置文件,或者是因为客户端元素中找不到与此协定匹配的终结点元素。
By DANIEL WAGNER and DAVID K. RANDALL, AP Business Writers Daniel Wagner And David K. Randall, Ap Business Writers – Fri?Jun?24, 7:11?pm?ET

If weak financial results from big tech companies are a sign of what's to come, stock indexes are in for a tough summer.

Stocks fell Friday, giving the market another losing week, after poor earnings reports from two major technology companies suggested that companies invested less in new technology as the economic recovery slowed.

Fears of a spreading European debt crisis also weighed on markets. Italian bank stocks plunged and trading in some of them was halted after Moody's warned that it might downgrade their credit ratings.

"I think it spooked a lot of people," said Frederick Rizzo, who analyzes European banks for T. Rowe Price. "The markets are really emotional right now."

The Dow Jones industrial average fell 115.42 points, or 1 percent, to 11,934.58. The Standard & Poor's 500 index fell 15.05, or 1.2 percent, to 1,268.45. The Nasdaq composite fell 33.86, or 1.3 percent, to 2,652.89.

The decline erased all of this week's gains for the Dow Jones industrial average and S&P index. The broad stock market has now fallen for seven of the last eight weeks, largely because of concerns that the U.S. economy is slowing and that Europe's debt problems may lead to another financial crisis. The S&P 500 is down 7 percent since it hit a high for the year on April 29.

Technology stocks were broadly lower. Micron Technology Inc. fell 14.5 percent after the company said lower sales of computer chips hurt its earnings, which were far less than analysts had expected. Oracle Corp. fell 4 percent after its sales of computer hardware fell sharply. Cisco Systems Inc. fell 3.5 percent, and Microsoft Corp. lost 1.3 percent.

Government bond prices rose to their highest level of the year as investors favored lower-risk assets. The yield on the 10-year Treasury dipped to 2.86 percent.

The U.S. economy has cooled since late April. Recent reports on housing, employment, manufacturing and retail sales all have been weak. The debt crisis in Greece and fears that China's growth is slowing have also pushed markets lower.

"No one is expecting good news, but if it's worse than expectations, this is really a very shaky market," said Uri Landesman, president of Platinum Partners, a hedge fund.

Landesman expects that the Standard & Poor's 500 index will fall to 1,200 this summer as more companies report second-quarter earnings next month. The last time the S&P 500 crossed that threshold was in December 2010.

Stocks fell despite the fact that the government said the economy grew at a 1.9 percent annual rate in the first quarter, slightly higher than an earlier estimate of 1.8 percent. The figure still indicated very slow growth for a post-recession recovery. Economists expect little improvement in the second quarter, which ends next week.

Still, another government report showed that businesses ordered more machinery, equipment and airplanes in May than in April. Orders of such durable goods increased by 1.9 percent in May after a sharp decline in April.

Two stocks fell for every one that rose on the New York Stock Exchange. Volume was slightly above average at 4.4 billion shares.


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Wall Street sinks on Europe's debt misery (Reuters)

在 ServiceModel 客户端配置部分中,找不到引用协定“TranslatorService.LanguageService”的默认终结点元素。这可能是因为未找到应用程序的配置文件,或者是因为客户端元素中找不到与此协定匹配的终结点元素。
在 ServiceModel 客户端配置部分中,找不到引用协定“TranslatorService.LanguageService”的默认终结点元素。这可能是因为未找到应用程序的配置文件,或者是因为客户端元素中找不到与此协定匹配的终结点元素。

NEW YORK (Reuters) – Wall Street dropped for a third day on Friday on worries about the Italian banking sector and Greece's debt crisis, but the S&P 500 managed to hold its 200-day moving average in a sign buyers still see value.

The Dow industrials and the S&P 500 fell for their seventh week in the last eight. The benchmark S&P 500 is down 7 percent from its 2011 closing high at the end of April.

Investors are fearful that Greece's government may fail to pass an austerity plan next week, which could force a default on its debt repayments. The government faces an electorate vehemently opposed to the austerity measures.

"They (politicians) may not believe that financial markets are as sensitive to their decisions as they actually are, and there is a worry that somewhere along the line, some political vote goes against the market," said Nicholas Colas, chief market strategist of the ConvergEx Group in New York.

The S&P 500 remained within striking distance of its 200-day moving average -- a line that has been tested twice in recent trading and has so far acted as a springboard for stocks. The level was at 1,263.47.

"Every time you test a resistance or support level, you make it weaker," Colas said. "It's almost like a piece of metal. Every time you hit it, it grows more fragile and that's why people are really worried the third or fourth time."

Problems in the euro zone appeared to intensify as shares of Italian banks UniCredit SpA (CRDI.MI) and Intesa Sanpaolo (ISP.MI) fell sharply on concerns about their capital positions. Trading in their shares was briefly suspended.

The CBOE Volatility Index (.VIX) or VIX, Wall Street's barometer of investor anxiety, rose 9.4 percent to 21.10. Some analysts say fear needs to rise further before the market reaches a bottom.

The Dow Jones industrial average (.DJI) dropped 115.42 points, or 0.96 percent, to 11,934.58 at the close. The Standard & Poor's 500 Index (.SPX) fell 15.05 points, or 1.17 percent, to 1,268.45. The Nasdaq Composite Index (.IXIC) lost 33.86 points, or 1.26 percent, to 2,652.89.

For the week, the Dow fell 0.58 percent and the S&P 500 shed 0.24 percent, while the Nasdaq gained 1.39 percent.

Bank stocks fell on concerns about the economic outlook. The KBW Banks Index (.BKX) lost 1 percent and the S&P Financial Sector Index (.GSPF) shed 0.7 percent. The sector has been the worst-performing this year, falling around 8 percent.

On Thursday, the market welcomed Greece's agreement to a five-year austerity plan.

The euro declined against the dollar for a third straight session on worries Greece's parliament might not pass austerity measures needed for the country to secure more bailout funds.

In the latest economic data, new orders for long-lasting U.S. manufactured products, known as durable goods, increased 1.9 percent in May after dropping 2.7 percent in April as bookings for transportation equipment rebounded strongly.

Oracle Corp (ORCL.O) fell 4.1 percent percent to $31.14 (.NDX) a day after the world's No. 3 software maker posted disappointing results, especially in hardware sales. Oracle's results sparked concerns about a bigger slowdown in technology spending.

Micron Technology Inc (MU.O) tumbled 14.5 percent to $7.21 after the memory chipmaker recorded results below expectations late Thursday.

About 9.26 billion shares traded on the New York Stock Exchange, NYSE Amex and Nasdaq -- well above the daily average so far this year of around 7.57 billion. Analysts said Friday's volume was much higher than average due in part to the rebalancing of the Russell 2000 Index (.TOY).

Declining stocks outnumbered advancing ones on the New York Stock Exchange by a ratio of 19 to 11. On the Nasdaq, about three stocks fell for every two that rose.

(Reporting by Edward Krudy; Editing by Jan Paschal)


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Summary Box: Stocks fall for another week (AP)

在 ServiceModel 客户端配置部分中,找不到引用协定“TranslatorService.LanguageService”的默认终结点元素。这可能是因为未找到应用程序的配置文件,或者是因为客户端元素中找不到与此协定匹配的终结点元素。
在 ServiceModel 客户端配置部分中,找不到引用协定“TranslatorService.LanguageService”的默认终结点元素。这可能是因为未找到应用程序的配置文件,或者是因为客户端元素中找不到与此协定匹配的终结点元素。

WEAK TECH: Poor earnings results from Micron Technology and Oracle Corp. helped send lead the broad stock market lower.

ANOTHER DOWN WEEK: The S&P 500 lost 0.2 percent for the week, and the Dow Jones industrial average fell 0.6 percent. The broad stock market has now fallen for seven out of the past eight weeks.

THE INDEXES: The Dow closed down 115 points, or 1 percent, to 11,934.58. The S&P 500 dropped 1.2 percent to 1,268.45 The Nasdaq fell 1.3 percent to 2,652.89.


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Wall St drops on euro zone anxiety (Reuters)

在 ServiceModel 客户端配置部分中,找不到引用协定“TranslatorService.LanguageService”的默认终结点元素。这可能是因为未找到应用程序的配置文件,或者是因为客户端元素中找不到与此协定匹配的终结点元素。
在 ServiceModel 客户端配置部分中,找不到引用协定“TranslatorService.LanguageService”的默认终结点元素。这可能是因为未找到应用程序的配置文件,或者是因为客户端元素中找不到与此协定匹配的终结点元素。

NEW YORK (Reuters) – Wall Street dropped for a third day on Friday on worries about the Italian banking sector and Greece's debt crisis, but the S&P 500 managed to hold its 200-day moving average in a sign buyers still see value.

The Dow Jones industrial average dropped 115.42 points, or 0.96 percent, to 11,934.58. The Standard & Poor's 500 Index fell 15.06 points, or 1.17 percent, to 1,268.44. The Nasdaq Composite Index lost 33.86 points, or 1.26 percent, to 2,652.89.

(Reporting by Leah Schnurr)


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European stocks, euro drop on economic worries (AFP)

在 ServiceModel 客户端配置部分中,找不到引用协定“TranslatorService.LanguageService”的默认终结点元素。这可能是因为未找到应用程序的配置文件,或者是因为客户端元素中找不到与此协定匹配的终结点元素。
在 ServiceModel 客户端配置部分中,找不到引用协定“TranslatorService.LanguageService”的默认终结点元素。这可能是因为未找到应用程序的配置文件,或者是因为客户端元素中找不到与此协定匹配的终结点元素。

LONDON (AFP) – European equities fell on Thursday after the Federal Reserve downgraded its US growth forecast, while downbeat Chinese manufacturing data sparked concern about the Asian powerhouse economy.

The euro dropped against the dollar on worries over the Greek debt crisis.

Around midday in London, the benchmark FTSE 100 index shed 0.90 percent to 5,721.18 points. Frankfurt's DAX 30 slid 1.06 percent to 7,200.99 points and in Paris the CAC 40 dipped 1.21 percent to 3,824.47.

The dollar won support meanwhile after the Fed signalled the end of its bond-buying programme this month and indicated further credit easing was unlikely. The euro fell to $1.4254 in London deals from $1.4349 late in New York on Wednesday.

Wall Street sank after the Federal Reserve left monetary policy in neutral on Wednesday and slashed its US growth estimates, while Fed chairman Ben Bernanke warned of economic headwinds that could persist for longer than expected.

"Weakness in the financial sector, problems in the housing sector, balance sheets and deleveraging issues -- some of these headwinds may be stronger or more persistent than we thought," Bernanke said.

He also warned of potential risks to the global economy from Greece's sovereign debt crisis.

The Federal Open Market Committee (FOMC) also confirmed that the bank's second round of bond-buying will end this month as the current problems in the economy were temporary and would not need more stimulus.

Markets had been waiting to see what kind of new policies the Fed might pursue after the end of June, when it plans to conclude its $600-billion second round of quantitative easing, dubbed QE2.

"Last night's sobering words from Bernanke confirmed the fears of many in the market -- the economic recovery remains fragile and there's no further stimulus package coming along for the time being," said IG Index sales trader Yusuf Heusen.

Asian shares mostly edged down on Thursday, as traders also pored over poor Chinese figures and cashed in after a two-day regional rally.

Growth in China's manufacturing activity fell to an 11-month low in June, preliminary HSBC data released Thursday showed, as Beijing's efforts to cool the red-hot economy continued to bite.

HSBC's preliminary purchasing managers index fell to 50.1 in June from a final reading of 51.6 in May, the British banking giant said, showing the sector barely grew as authorities tightened restrictions on bank lending.

A reading above 50 indicates the sector is expanding while a reading below 50 indicates contraction.

"Chinese factories barely expanded in June," said City Index strategist Joshua Raymond.

"A slowdown in growth in China is a growing concern amongst investors, particularly those with exposures to commodities and resource equities.

"Naturally therefore, we have seen a move by investors to downsize positions in the resource sector today, with the miners and oil firms the worst hit," he added.

In the United States, the Federal Reserve slashed its growth estimate for the US economy this year to a range 2.7-2.9 percent, from an earlier forecast of 3.1-3.3 percent.


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Economy fears take shine off global stock outlook: Reuters poll (Reuters)

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LONDON (Reuters) – Clear signs the global economy is cooling prompted analysts to trim their outlook for most of the world's major stock markets compared with three months ago, according to a Reuters poll that still pointed to meaty gains from here.

Thursday's quarterly survey of 350 equity strategists from all over the world showed only the U.S., Taiwanese and Russian stock markets escaping downgrades, with Moscow again expected to lead the way with double-digit gains.

While the latest poll lacked the sheer exuberance seen in the March survey, perpetually optimistic equity bulls were again out in force.

They shrugged off the fact that 11 out of the 17 markets covered by the poll are so far deep in the red for 2011, and instead projected strong gains from here for every one of them.

In comparison with oil and commodity markets that have proved hugely volatile this year, and with the fiscal crisis in Greece wreaking havoc on currency and government bond markets, some respondents pointed to stocks as the best alternative.

"Equities still look attractive when compared to other global asset classes," said Angus Campbell, head of sales at London Capital Group.

The search for yield has become difficult for investors. High inflation has eroded cash assets, safe government bond yields are at rock-bottom and gold's heady ascent to record levels leaves it looking expensive to many.

Still, the extent of the slowdown in Western economies is unclear and there has been no solution yet to the Greek sovereign debt crisis. Both could yet tame the bulls and bring out the bears.

European politicians are scrambling to avert a Greek sovereign debt default in mid-July, which if realized has the potential to hurl the financial system in Europe and elsewhere back into systemic chaos.

AMERICAN STOCKS ARISE

The Dow Jones Industrial Average, containing some of the world's most famous companies, was the only index based in an advanced economy to be upgraded compared with the March poll.

Despite dismal labor market data and growing signs the U.S. economy is cooling fast, analysts were very upbeat about the prospects for the Dow and S&P, which have each gained around 90 percent since their nadir during the Great Recession.

There seemed to be little concern among equity bulls about the imminent end of the Federal Reserve's quantitative easing (QE) program that coincided with a sharp rise in asset prices. The poll was conducted before the Fed cut its U.S. growth forecasts on Wednesday, with no hint of any further QE in the pipeline.

"We are still double from where we were two years ago; I think the market is doing great. We are in slowdown and correction but that's following a 30 percent gain from the August lows," said Bob Doll, chief equity strategist at BlackRock in New York.

Economists polled by Reuters last week were less sure of the outlook than equity analysts. They slashed their outlook for major Western economies in the June 15 poll, reacting to a raft of dire jobs and industrial production figures.

There was little cheer on Thursday from unemployment claims data, which showed jobless benefit claims rising last week after employment stumbled in May.

Strategists saw the Dow rising 7.4 percent from its Wednesday close of 12,109.7 to 13,000 by the end of the year -- up from 12,700 seen in March -- and then to 13,700 by around this time next year.

Similarly, the S&P is seen soaring nearly 9 percent to 1,400 by end-2011, from Wednesday's 1,287.1.

The poll once again pointed to stellar returns on Russian shares. Having already rocketed almost 300 percent since the global recession, the Russian RTS looks set to gain another 17 percent from now until the end of the year thanks to a resurgent economy still reveling in strong oil prices.

"This year, the domestic story will be at the forefront. Consumer financials and telecoms will be the drivers for the index," said Peter Westin, economist at Moscow-based Aton bank.

ASIAN ASCENT

Asian stocks have largely endured a torrid time in 2011, with most indexes stuck in the red, since surging inflation in India and China and the subsequent tightening of interest rate policy has rocked share markets in emerging Asia.

But with double-digit gains expected for indexes in Hong Kong, China and India from now until this time next year, the poll suggested Asian shares might have bottomed already.

Japan's Nikkei, 6 percent in the red this year after the March 11 devastating earthquake and tsunami, should likewise start racking up gains soon of over 9 percent between now and the year-end.

"We may see a lull until this summer. But the overall market may rise on expectations for a sharp recovery in corporate earnings after that," said Fumiyuki Takahashi, managing director of equity research at Barclays Capital.

(For data see) (For other stories from the poll, click [ID:nL6E7HN1W1])

(Polling by Bangalore Polling Unit and correspondents in Reuters bureaux in New York, Toronto, Sao Paolo, London, Paris, Frankfurt, Milan, Moscow, Mumbai, Shanghai, Hong Kong, Seoul, Taipei, Tokyo, Sydney, and Johannesburg, Analysis by Sumanta Dey and Jason George in Bangalore; Editing by Ross Finley and Jon Loades-Carter in London)


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FTSE 100 shares slip slightly (AFP)

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LONDON (AFP) – Stocks slipped slightly on Wednesday as investors waited for the end of a US Federal Reserve policy meeting.

The benchmark FTSE 100 index of top shares dropped 0.04 percent to 5,772.99 points.

Lloyds Banking Group (LBG) was the most widely traded stock of the day, with 123 million shares changing hands, followed by Vodafone, which saw 96.9 million units switch owners.

Man Group was the best blue-chip performer, rising 4.86 percent -- or 11.20 pence -- to finish at 241.8, followed by Randgold, which rose 3.03 percent -- or 145 pence -- at 4928.

United Utilities was the biggest faller of the day, shedding 3.44 percent -- or 20.50 pence -- to close at 575, followed by Severn Trent, which slipped 3.12 percent -- or 45 pence -- to finish at 1398.

On the currency markets, a pound was worth 1.6125 dollars at 17:03 BST, up from 1.5245 at the same time Tuesday, while it stood at 1.1207 euros, down from 1.1272 over the same period.


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European stocks, euro rebound on Greece progress (AFP)

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LONDON (AFP) – European stocks rebounded and the euro recovered against the dollar on Friday as investors cheered a breakthrough in the eurozone's bid to resolve Greece's debt crisis, analysts said.

World markets had slumped on Thursday as weak US and Chinese data dented confidence in the global economic outlook and as Greece's problems dragged on.

However they swiftly recovered on Friday after Greece, the EU and the IMF agreed on the final details of a 28-billion-euro ($40-billion) savings plan which Athens must implement over five years to obtain cash to pay its immediate debts.

In late morning deals, London's benchmark FTSE 100 index of top shares jumped 1.27 percent to 5,746.33 points. Frankfurt's DAX 30 climbed 1.12 percent to 7,229.37 points and in Paris the CAC 40 gained 0.46 percent to 3,805.30.

The euro climbed to $1.4293 from $1.4257 late on Thursday in New York. The dollar fell to 80.16 yen from 80.52 yen.

Oil prices meanwhile steadied after plunging one day earlier when the International Energy Agency decided to tap emergency crude reserves to make up for lost Libyan supplies.

But in Italy, leading bank shares slumped up to 8.0 percent.

Markets recovered on Friday "after positive sentiment coming out of Europe as EU ministers say they will do 'anything it takes' in relation to Greece," said Spreadex trader Simon Furlong.

"However, we are not out of the woods yet. With disappointing jobs figures in the US, (Federal Reserve chairman) Ben Bernanke downgrading US growth output and a large opposition to austerity measures within Greece's parliament, the light at the end of the tunnel is very dim indeed."

The European Commission said the deal among international backers on the ground in Athens now has to be "translated into concrete legislative measures" by Greece. Prime Minister George Papandreou is hoping that parliament will next week approve his austerity measures.

Meanwhile worries about the global economy were stoked after the US Labor Department on Thursday reported an unexpected increase in initial jobless claims, by 9,000 to 429,000 in the week to June 18. Elsewhere, the Commerce Department said new-home sales fell 2.1 percent in May.

Ahead of the data, Bernanke had on Wednesday warned of economic headwinds that could persist for longer than expected.

US stocks ended mixed on Thursday after steep initial losses spurred by the series of gloomy economic reports from the United States, Europe and China.

Tokyo's benchmark Nikkei-225 index closed up 0.85 percent at 9,678.71 points on Friday.

"The financial markets have stabilised," noted Derek Halpenny, European head of currency research at The Bank of Tokyo-Mitsubishi UFJ.

"Concerns over a number of factors remained elevated however, and next week brings the crucial austerity votes that appear to require not just a win but a win that signifies some degree of unity in Greece in favour of the austerity program."


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2011年6月26日星期日

Wall Street 'bad boy' talks about NY trial (AP)

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NEW YORK – A former investment manager known as Wall Street's "bad boy" may not testify at his securities fraud trial, but that didn't stop him from offering his own running commentary Friday about the case — and himself — outside court.

"I've waited five years to get my day in court to get the truth revealed," Ross Mandell told The Associated Press after the first week of his trial ended in federal court in Manhattan.

Mandell sounded buoyant, despite testimony this week by a former colleague-turned-cooperator who told jurors Mandell helped engineer a $140 million scheme during the dot-com boom of the late 1990s and early 2000s. If convicted, he faces up to 20 years in prison.

"Normally someone in my position would be suffering an anxiety attack," Mandell said with a chuckle. "I feel a wave of relief."

Mandell, 54, has used his rossmandell.com website, Facebook, YouTube and other outlets to ceaselessly promote himself as a recovering alcoholic, family man and once hard-partying, hard-charging businessman who was railroaded.

At trial, the government has portrayed the Brooklyn-born Mandell and a co-defendant as brazen conmen who took advantage of the frenzy over Internet tech stocks in using their broker-dealer operation to solicit private investments in startups.

Prosecutors say that rather than deliver the sure-thing returns promised investors, the defendants used their funds to splurge on vacations, expensive watches and home renovations. The former colleague, Robert Grabowski, has testified that they even used the money to pay for strippers and prostitutes on junkets hosted by Mandell for corrupt brokers.

The defense says Mandell has never lied to his clients and was "crushed" when his brokerage firm went under.

Mandell, who's free on $5 million bond, dismissed Grabowski's testimony on Friday as "nonsense and drivel by a programmed government witness. ... It's just disgusting."

The case is so weak, he said, it's unlikely he'll need to take the stand in his own defense.

"In a perfect world, I'd love to testify," he said. "But I'm not stupid."


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Oil, world stocks tumble on signs of dismal economy (Reuters)

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NEW YORK (Reuters) – Oil prices plunged, global stocks tumbled and the euro shred more than 1.0 percent on Thursday after news of disappointing private sector activity in Europe and China, coupled with a rise in U.S. jobless claims, sent a chill through global financial markets.

Exacerbating fears of slower growth were plans by the International Energy Agency to release 60 million barrels of oil from strategic inventories.

"It could be a signal of the overall the level of concern about a slower global economy," said Omer Esiner, senior market analyst at Commonwealth Foreign Exchange in Washington.

European shares declined further and and government debt prices on both sides of the Atlantic extended gains after initial claims for state unemployment benefits climbed more than expected last week.

Gold fell by almost 2.0 percent to hit its lowest in nearly and the euro hit an all-time low against the Swiss franc as anxiety about Greece and a slowing U.S. economy damped investors' risk appetite and encouraged a bid for safety.

The euro fell 1.3 percent to $1.451, its lowest level in nearly a week and also hit a fresh record low at 1.1873.

"The (U.S. jobless) claims just added fuel to the fire here ... two months now stuck in this range and they just won't budge. That is certainly a disappointment," said Frank Lesh, a futures analyst and broker at FuturePath Trading LLC in Chicago.

Compounding concerns, the euro zone private sector grew only modestly, and would have shrunk without the support of Germany and France, while China's factory sector barely expanded even as inflation eased, purchasing managers' indexes (PMIs) showed.

The data come a day after the U.S. Federal Reserve said the pace of the U.S. recovery was proceeding more slowly than it had expected, but pledged no new help for the economy once its bond purchase program expires this month.

"(Chairman Ben) Bernanke's cautious outlook and the persistent headwinds to the U.S. economy that might linger until year-end, including concerns about Greece, have affected market sentiment," said David Watt, senior currency strategist, at RBC Capital Markets in Toronto.

World stocks as measured by MSCI's all-country world stock index were down 1.1 percent, leaving the index flat so far this year.

On Wall Street, the Dow Jones industrial average was down 166.76 points, or 1.38 percent, at 11,942.91. The Standard & Poor's 500 stock index was down 18.01 points, or 1.40 percent, at 1,269.13. The Nasdaq Composite Index was down 35.95 points, or 1.35 percent, at 2,633.24.

Brent and U.S. crude oil futures extended losses in volatile trading after the Labor Department a report showed initial claims climbed 9,000 to a seasonally adjusted 429,000. Economists had expected claims to come in at 415,000.

In London, ICE Brent crude oil for August delivery fell $5.15 to $109.06 a barrel. On the New York Mercantile Exchange, the August contract, fell 4.08 to $91.33 a barrel.

Spot gold fell by as much as 1.99 percent to a session low of $1,518.40 an ounce. Prices later ticked up a bit to $1,524.46.

U.S. Treasuries briefly trimmed an early advance after the IEA announced it would release strategic crude reserves.

The benchmark 10-year U.S. Treasury note was up 16/32 in price to yield 2.92 percent.

German bunds already had gained after signs of a slowing euro zone growth raised fears over the ability of Greece and other countries to battle their debt crises.

Bund futures rallied to a session high of 126.56, up 35 ticks on the day, pushing 10-year yields down to 2.92 percent.

(Additional reporting by Steven C. Johnson and Robert Gibbons in New York; Lucia Mutikani in Washington; Jonathan Cable, Kirsten Donovan and Brian Gorman in London; Writing by Herbert Lash)


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Instant view: LSE sweetens its offer for TMX Group (Reuters)

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TORONTO (Reuters) – The London Stock Exchange has sweetened its friendly offer for the TMX Group with an enhanced dividend, bringing the value to $4.1 billion for the operator of the Toronto Stock Exchange.

LSE added a cash component in the form of C$4 dividend per share to TMX shareholders, while LSE shareholders will receive 84.1 pence per ordinary share, sweetening the bid by C$660 million ($680 million).

CHRIS DAMAS, INDEPENDENT ANALYST, TMX SHAREHOLDER

"The special dividend is a carrot. The TMX's balance sheet was unleveraged before this deal and the deal was going to reduce the LSE's leverage. ... This dividend will now increase the leverage, effectively by paying cash from the TMX's unleveraged balance sheet. ... It's a carrot, but you can't make more value for shareholders by moving the financial shells around.

"To get the dividend you have to hang in there until the day before they complete the merger and it doesn't remove any of the regulatory risk. We are voting on a deal, which will be a done deal, if shareholders vote positively and yet we still have all the regulatory risk.

"What I suggest is cash up front, not cash the day before a hypothetical closing date in the fall.

"These valuations are around 11 to 12 times earnings. And the Deutsche Bourse-NYSE deal, which is being voted on July 7, is more like 13, or 14 times. So these multiples are still pretty low for a stock that has provided a 400 percent return."

ALLISON CROSTHWAIT, DIRECTOR GLOBAL TRADING STRATEGY, INSTINET

"I'm not surprised at all. I expected this. They certainly needed to do this in order to win the vote on the 30th. And I think the price is about right. Probably. They bested the Maple deal by almost a dollar. I see it right now being worth $48.94.

"I don't think the case is made strongly enough for TMX-London -- they sort of rolled over, to some degree. I would just like to see more aggression as to why this is a really good thing -- I mean, you sell me on it. Everybody has gone with this fuzzy feel-good about Canadian control -- what does that mean?

"It's a true sweetener, it was needed, because ultimately shareholders -- they're pecuniary -- they're motivated by their own investment return. ... I think this makes a much stronger case for the LSE and much higher probability it will be accepted on the 30th.

"There's all the regulatory hurdles of course. The shareholders has to make this strange determination without having the regulatory information. So if they believed the regulatory environment is going to favor the Maple deal, that could sway things in favor of the Maple deal. We'll see, but right now everybody's saying it'll be the LSE."

"Any comment that I've seen has said that LSE is more likely from a regulatory perspective. That could shift in two seconds if somebody really influential comes out and says, "no, LSE is not going to pass the net benefit test and this is not a competitive issue", but I think it is a competitive issue.

THOMAS CALDWELL, CHAIRMAN, CALDWELL SECURITIES

"The thing that would impress me more in the longer term is that they are maintaining the same dividend yield basis on this company, so that's a positive.

"Giving back some of our own money, that's also positive - it'll give you some cash, so that means, let's look at the stock and say C$44.20, so I get C$4 back, so it's C$40.20, combined company -- it's probably worth that, I would think.

"There is a speculative premium here and they are trying to match the speculative premium with some cash up front. On the Maple deal, I end up with some cash ... and end up with Maple shares, which is a company controlled by its customers, and therefore, what pricing power do you have? And how are they going to value Alpha when they roll it in there?

"I think Wellington used the phrase at Waterloo that it was a close-run thing, and that phrase is probably going to be applicable here -- this is a close run deal.

"I think the other side are going to come back with something more, something different and something more clarified.

"I believe markets should be neutral. A market should not be controlled by the biggest proprietary traders and the biggest internalizers of their own trades -- that is they take the other side of the client order -- because the most important thing an exchange does is determine the price of a trade, the price discovery."

MATHIEU ROY, VICE PRESIDENT, LOUISBURG INVESTMENTS

"As a TMX shareholder, I'm certainly happy to see the offer being sweetened just before we have to go and vote.

"One part of the equations where I think it's going to be difficult to make up your mind today is that I think the market was valuing the LSE as if the LSE-TMX merger wasn't going to happen.

"So I wasn't really believing that if you took the 2.9 shares and then applied it and that's what TMX would be trading at today.

"With them sweetening the bid and potentially increasing their chances of winning it, or at least getting shareholder approval, I'm curious to see how the LSE will trade when it opens up again, and if it trades off, then even with the $4 dividend, perhaps it still won't be enough to get you to the $48 stated by Maple Group.

I guess my first impression is I'm happy to see a bidding war and I'm open-minded, but I want to see how the LSE trades and I'm still a little more intrigued by the Maple bid.


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China accounting scandals put Big Four auditors on red (Reuters)

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HONG KONG (Reuters) – The string of accounting problems and stock plunges at publicly traded Chinese groups has sparked deep concerns across the world's biggest audit firms, putting the so-called Big Four on alert from worries that their reputation could be brought down along with a growing list of stricken companies.

Auditing Chinese firms preparing to go public on overseas exchanges is a lucrative business and one that plays into the strengths of the top, international auditing partnerships known as the Big Four: KPMG, Ernst & Young, Deloitte Touche Tohmatsu and PricewaterhouseCoopers.

Yet fears are growing that the struggle to find enough high-quality auditors in China and Hong Kong means it may only be a matter of time until one of the top firms finds itself caught in a blow-up rivaling Enron, which brought down their old rival Arthur Andersen.

"Costs have gone up, fees have gone down, as competition for fees is enormous. You can easily see there is a real risk of an audit firm failing," said Paul Winkelmann, the partner in charge of risk and compliance for PWC in Greater China. According to interviews with professionals at the four firms, each firm is getting more and more cautious about the work they take on from mainland companies looking to IPO. "The whole industry, I will say, is very sensitive and cautious to China IPOs," said an auditor at one of the Big Four, who handles IPO work, who did not want to be named.

The Big Four are also getting nervous about work with existing Chinese clients, turning to lawyers at an earlier stage if they think something might be amiss.

"If a risk situation arises they're now consulting lawyers earlier and dealing with it in a much more structured way than was perhaps the case in the past," said Tom Fyfe, a partner at law firm Barlow, Lyde & Gilbert in Hong Kong who acts for some of the big four in litigation issues.

All four of the audit firms responded to a Reuters request to comment on the matter. The four firms said they have a rigorous approach to risk management.

CHINA BOOMING BIZ

The big four have basked in China's emergence as an economic powerhouse. In 2009 their revenue from work on the mainland stood at 9.1 billion yuan ($1.41 billion) according to the Chinese Institute of CPAs (CICPA), around half of China's accounting industry's revenue. Last year's figures were not immediately available.

As the revenues have risen, so have the risks.

Most of the accounting scandals in the U.S. have come from small Chinese companies who went public via a reverse takeover. Those companies were audited by smaller U.S. or Hong Kong-based accountancy practices, not the Big Four's China firms. But some recent high profile cases have started to drag in the names of the world's most prestigious auditors.

Last month, Deloitte quit as auditor of Longtop Financial Technologies after working on the company's books for six years, citing "recently identified falsity" in their finances.

Ernst & Young was named in two class action lawsuits over its work on Sino-Forest, the Toronto-listed company accused by short-seller Muddy Waters of accounting fraud.

In Hong Kong, KPMG said in January that it had found possible irregularities in the books of China Forestry, leading to a suspension of its shares.

Accounting experts say the firms have been acting as they should by raising the alarm once they find irregularities that can't be explained by the company. They also point out that the Big Four's China businesses and its broad global resources are much better placed than small U.S. firms to conduct audits on Chinese companies.

"I think firms here have always been aware of the risks associated with audit work in China. There is more endemic fraud in Asia, but people are much more aware of it here and so manage the risks accordingly," said PWC's Winkelmann.

Winkelmann, on behalf of the Hong Kong Institute of CPAs (HKICPA), is drafting a paper to present to the Hong Kong government later this year calling for changes to the law on auditor liability. The IPOs are now so large -- last year saw two greater than $20 billion in Hong Kong -- the worry is that a massive IPO liability, if it were to hit an auditing firm, would be too big for the firm to handle. The change calls for a cap on the liability.

The latest string of scandals has laid bare some of the difficulties auditors have in China, forcing the big firms to reappraise their methods, given that a loss of reputation could bring them to their knees.

"There's no doubt about it -- the firms are very alert to these issues and very sensitive to what it means. They will be looking at their risk assessment procedures," said Chris Joy, executive director, HKICPA.

STAFF SHORTAGES

Two of the biggest challenges facing the big four are staffing and the type of companies they audit.

Together the firms now employ just under 40,000 people in mainland China, Hong Kong and Taiwan. While that's a relatively high number compared to other regions, it's not enough to handle the huge demand created by the rapid economic growth of the world's most populous country, experts say.

"We are in tremendous need of experienced accounting professionals and graduating college students," said a spokeswoman for Ernst & Young, which plans to recruit 1500 new staff this year.

Finding them might be tough.

"Between us and the CICPA and other bodies that offer qualifications, we can't produce enough at the moment, but we're not going to compromise the quality of our program just to mass produce accountants," said Joy at the HKICPA.

That skill shortage is likely to be felt even more keenly now that the type of IPO work the big firms are handling is shifting. Whereas 10 years ago the majority of firms going public in China were state-owned enterprises (SOEs), a lot more of the work now is for privately-run businesses.

"Previously the market was for SOEs, and China is not going to allow a major embarrassment with an SOE," said PWC's Winkelmann. "But now it's changing as international firms are starting to do more of the private enterprises in China, which don't come with that government support."

(Reporting by Rachel Armstrong; Additional reporting by Benjamin Lim in BEIJING, George Chen in HONG KONG; Editing by Michael Flaherty)


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Antitrust fixes loom as D.Boerse/NYSE vote nears (Reuters)

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NEW YORK (Reuters) – Complex antitrust questions hang over Deutsche Boerse AG and NYSE Euronext just weeks before shareholders decide whether to endorse a blockbuster exchange merger, though no significant regulatory fixes are expected.

If investors back the $9 billion deal next month, they will have no further say as the two companies sit down at the bargaining table with European regulators in what are expected to be delicate negotiations through the end of the year.

Based on informal discussions so far in Brussels, the exchange operators do not expect to have to accept "structural remedies" such as divesting businesses to seal the deal, two sources familiar with the transaction said, though less severe "behavioral remedies" -- on pricing, for example -- may be required.

At issue is the strangle-hold Deutsche Boerse and NYSE Euronext would have on Europe's exchange-based futures market and, significantly, on clearing those trades.

Shareholders and analysts say it is very difficult to predict how the European Commission will react to the near-monopoly, what demands it could make, and whether the companies will ultimately be able to create the world's largest market operator as planned.

"We're going to vote for the deal hoping it happens. What we don't know how to handicap is the European regulatory process -- we just can't do that," said Timothy Hoyle, director of research at Pennsylvania-based Haverford Trust Co, which owns 1.2 million shares of NYSE Euronext, parent of the New York Stock exchange.

"In our conversations with the NYSE, they've led us to believe that they believe they'll gain regulatory approval with minimal concessions," he said.

Though merger votes are common before regulators sign off on deals, the stakes are high since antitrust and political concerns thwarted two exchange takeovers this year: Singapore Exchange's $8 billion purchase of Australia's ASX Ltd, and an unsolicited bid for NYSE Euronext from Nasdaq OMX Group and IntercontinentalExchange Inc.

ACCEPTABLE BEHAVIOR

NYSE Euronext shareholders vote on July 7, while Deutsche Boerse shareholders have until July 13 to tender shares to the deal. NYSE needs majority support; Deutsche Boerse needs 75 percent.

The next hurdle is in Brussels, where European Union Competition Commissioner Joaquin Almunia set the stage in March when he promised a "deep" antitrust probe, and later said he was concerned about Deutsche Boerse's "vertical silo" business model, in which it controls trading and clearing of contracts.

Together, Deutsche Boerse's Eurex and NYSE Euronext's Liffe platforms would dominate futures and options on European bonds, shares and rates -- stoking concern among banks and traders over the prospect of monopoly pricing.

Yet the two sources, who requested anonymity because of the sensitivity of the matter, said the companies do not expect to have to make significant concessions.

It is unlikely there is any legal justification for "significant structural remedies," though the exchanges are expecting "possibly some behavioral remedies," said a source involved in the antitrust discussions in Brussels.

Behavioral remedies "would likely revolve around the pricing of products or terms and conditions on which you make products available to customers," the source said.

So far, the informal talks between regulators and the companies have revolved around clarifying the trading and clearing businesses, said the source.

The exchanges, which announced their deal in February, expect to make a formal filing with the EC in the next couple of weeks, the two sources said. That will kick off a likely two-phase process over some six months in which lawsuits and politics could slow things down.

The deal also needs approval from the U.S. Justice Department and national regulators in Europe, but those reviews are seen as less of a threat.

Deutsche Boerse and NYSE Euronext declined to comment.

REPUTATIONS

NYSE Euronext CEO Duncan Niederauer, who would head the combined company, and Deutsche Boerse CEO Reto Francioni, who would be chairman, have in recent weeks been careful not to presuppose any EC demands.

Niederauer, addressing a New York conference alongside Francioni on June 10, said selling off a major business would be a "remote, or very, very unlikely" outcome of the European review.

In the months to come, the CEOs may have to decide whether divestitures or restrictions demanded by regulators amount to a "substantial detriment" to their respective companies. If so, either can back out, according to the merger deal.

"In that situation, you would hope they're responsible managers of the shareholders' capital and would do what's in the best interest of the shareholders," said Chris Allen, analyst at Evercore Partners.

Barclays Capital, in a research note, said regulators could push for a business model in which rivals can more easily launch alternatives or even have better access to Deutsche Boerse-NYSE Euronext's clearinghouse -- outcomes that could crimp the combined company's trading and clearing fees.

Ironically, Chicago-based CME Group Inc's nascent push into European clearing and futures trading could help make the antitrust case for Deutsche Boerse and NYSE Euronext. And CME itself overcame a similar, albeit U.S., regulatory review when it bought the Chicago Board of Trade in 2007.

For now, NYSE Euronext shares are about 3.5 percent lower than the implied value of Deutsche Boerse's offer, suggesting a long but manageable road to completing the deal.

(Reporting by Jonathan Spicer; editing by John Wallace)


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A look at economic developments around the globe (AP)

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在 ServiceModel 客户端配置部分中,找不到引用协定“TranslatorService.LanguageService”的默认终结点元素。这可能是因为未找到应用程序的配置文件,或者是因为客户端元素中找不到与此协定匹配的终结点元素。

A look at economic developments and activity in major stock markets around the world Thursday:

___

LONDON — Worries over the U.S. economy piled pressure on stock markets, while oil prices sank after a shock decision by the International Energy Agency to release crude reserves to make up for tight supply.

The FTSE 100 index of leading British shares closed down 1.7 percent, Germany's DAX fell 1.8 percent and the CAC-40 in France ended 2.2 percent lower.

___

NEW YORK — The International Energy Agency, which includes the U.S. and 27 other countries, said it would release 60 million barrels of oil from emergency stocks in an effort to ease the strain that high oil prices have put on the global economic recovery.

This marks only the third time in its history that the Paris-based agency has released oil onto the markets. Half of the 60 million barrels will come from the U.S.'s emergency stocks. The oil will be released over the next 30 days.

___

BRUSSELS — European Union leaders stepped forcefully into Greece's national politics, urging the leader of the opposition to rally with the government to find a way out of its financial meltdown and protect the euro.

Several EU heads of government directly targeted Greece's opposition leader Antonis Samaras and told him to do his utmost to join ranks and fight the crisis together.

"When it comes to Greece, we call on the opposition to fulfill its historical responsibility," German Chancellor Angela Merkel said.

The plea to a national opposition leader, rare in EU politics, underscored the emergency Greece and the 17 nations using the euro currency face.

Eurozone governments earlier this week delayed a final decision on new aid for Greece until July 3, when they will know whether its parliament has accepted massive new budget cuts, government asset sales and economic reforms. The Greek opposition is threatening to block those budget cuts.

___

ATHENS, Greece — Greece's new finance minister said the government has been encouraging Greek banks to participate in a solution to the country's crippling debt crisis, just days ahead of a crucial Parliamentary vote that could stave off a devastating default.

Finance Minister Venizelos also announced a new round of tax hikes on crisis-weary Greeks.

The minister was in discussions with the country's international creditors over critical austerity measures that must be passed by Parliament next week.

___

RIGA, Latvia — As Greece's anguish spills into the streets, the three small Baltic countries may offer an example, if not a model, of how to deal with an economic crisis. Latvia, Lithuania and Estonia swallowed the bitter medicine that Greece is being asked to take.

They slashed pensions, welfare benefits and public sector salaries, without triggering large-scale protests. Latvia, which saw the world's deepest recession, even had to close schools and hospitals and sack thousands of teachers.

And the cure worked. The three former Soviet republics are now on a path to recovery, and Latvia's budget-cutting government even won re-election.

___

HONG KONG — Booming Asia had more millionaires than Europe for the first time last year and is fast closing in on North America for the top spot, a report said.

___

TOKYO — In Asian trading, Japan's Nikkei 225 closed 0.3 percent lower, while Hong Kong's Hang Seng lost 0.5 percent.

China's Shanghai Composite Index rose 1.5 percent to 2,688.25.

___

PRAGUE — Britain's Prime Minister David Cameron and his Czech counterpart Petr Necas insisted that only the 17 European countries that use the euro should give Greece any more financial assistance. Britain and the Czech Republic are not part of the currency bloc. They have their own currencies, the British pound and the Czech koruna.

Greece is scrambling to avoid defaulting on its debts. It is likely to feature heavily at a summit of the European Union's 27 leaders in Brussels over the coming two days. Both Cameron and Necas said they will be pushing to make sure that an EU-wide fund, the European Financial Stability Mechanism, is not tapped as part of any second bailout of Greece.

___

PARIS — The largest economies in the world agreed to a series of measures to stabilize world food prices after sudden fluctuations caused global instability, especially in poorer countries.

French Agriculture Minister Bruno Le Maire said the G-20 summit of agriculture ministers had agreed to calm the world market by establishing a transparent system to track global supplies, set up emergency food reserves, engage in more research into new wheat strains and create a rapid response mechanism to deal with drought in producer countries.

Non-government organizations working on food issues, however, slammed the accord as too timid, saying it did not address the controversial issue of biofuels, which take up land that could be used to grow food, and doesn't focus enough on building up emergency stocks.

___

DUBLIN, Ireland — Ireland's economy grew 1.3 percent in the first quarter as exports helped the bailed-out country post its best quarterly performance since the end of 2007, the Central Statistics Office reported. But consumer demand was weak.

___

BRUSSELS — The European Union said is prepared to help debt-saddled Greece by reducing Greek co-financing for EU development aid to 15 percent.

The European Commission has urged EU leaders to help Greece access billions in EU development funds to create jobs and make its businesses more competitive.

___

BUDAPEST, Hungary — Known for its work with the homeless, flood victims and alcoholics, one of Hungary's biggest charity organizations has its hands full with another group down on its luck — Hungarians burdened with mortgages and other loans taken out in foreign currencies, mainly Swiss francs.

___

HONG KONG — Italian fashion house Prada SpA sold shares in its Hong Kong IPO at a low 39.50 Hong Kong dollars each, underscoring investor wariness of stocks amid a global market slump.

___

VIENNA — World opium production decreased sharply last year due to a blight in Afghanistan but is expected to rebound, and coca growing and cocaine production also fell, the United Nations reported.

The United States remained the biggest market for cocaine in the world, and European cocaine demand was rapidly catching up.

___

SINGAPORE — Tony Tan, a top executive at wealth fund Government of Singapore Investment Corp., resigned to run for president of the city-state.

___

WELLINGTON, New Zealand — New Zealand's government said it will offer to pay thousands of homeowners to leave areas of the country's second-largest city that were hardest hit by recent earthquakes.

___

MINSK, Belarus — Belarus said it will sell its remaining stakes in its strategic natural gas pipelines to Russia's Gazprom for $2.5 billion.

The deal will help Gazprom, a Kremlin-controlled gas giant, secure exports to Europe that have been affected by pricing disputes with Belarus and neighboring Ukraine in recent years.

Belarus is suffering the worst economic crisis in its post-Soviet history.

___

HAVANA — Cuba said it is receiving more visitors each year, but tourism income has yet to return to what it was before the global financial crisis caused a sharp downturn in the sector.


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Summary Box: Stocks fall for another week (AP)

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在 ServiceModel 客户端配置部分中,找不到引用协定“TranslatorService.LanguageService”的默认终结点元素。这可能是因为未找到应用程序的配置文件,或者是因为客户端元素中找不到与此协定匹配的终结点元素。

WEAK TECH: Poor earnings results from Micron Technology and Oracle Corp. helped send lead the broad stock market lower.

ANOTHER DOWN WEEK: The S&P 500 lost 0.2 percent for the week, and the Dow Jones industrial average fell 0.6 percent. The broad stock market has now fallen for seven out of the past eight weeks.

THE INDEXES: The Dow closed down 115 points, or 1 percent, to 11,934.58. The S&P 500 dropped 1.2 percent to 1,268.45 The Nasdaq fell 1.3 percent to 2,652.89.


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Wall Street sinks on Europe's debt misery (Reuters)

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在 ServiceModel 客户端配置部分中,找不到引用协定“TranslatorService.LanguageService”的默认终结点元素。这可能是因为未找到应用程序的配置文件,或者是因为客户端元素中找不到与此协定匹配的终结点元素。

NEW YORK (Reuters) – Wall Street dropped for a third day on Friday on worries about the Italian banking sector and Greece's debt crisis, but the S&P 500 managed to hold its 200-day moving average in a sign buyers still see value.

The Dow industrials and the S&P 500 fell for their seventh week in the last eight. The benchmark S&P 500 is down 7 percent from its 2011 closing high at the end of April.

Investors are fearful that Greece's government may fail to pass an austerity plan next week, which could force a default on its debt repayments. The government faces an electorate vehemently opposed to the austerity measures.

"They (politicians) may not believe that financial markets are as sensitive to their decisions as they actually are, and there is a worry that somewhere along the line, some political vote goes against the market," said Nicholas Colas, chief market strategist of the ConvergEx Group in New York.

The S&P 500 remained within striking distance of its 200-day moving average -- a line that has been tested twice in recent trading and has so far acted as a springboard for stocks. The level was at 1,263.47.

"Every time you test a resistance or support level, you make it weaker," Colas said. "It's almost like a piece of metal. Every time you hit it, it grows more fragile and that's why people are really worried the third or fourth time."

Problems in the euro zone appeared to intensify as shares of Italian banks UniCredit SpA (CRDI.MI) and Intesa Sanpaolo (ISP.MI) fell sharply on concerns about their capital positions. Trading in their shares was briefly suspended.

The CBOE Volatility Index (.VIX) or VIX, Wall Street's barometer of investor anxiety, rose 9.4 percent to 21.10. Some analysts say fear needs to rise further before the market reaches a bottom.

The Dow Jones industrial average (.DJI) dropped 115.42 points, or 0.96 percent, to 11,934.58 at the close. The Standard & Poor's 500 Index (.SPX) fell 15.05 points, or 1.17 percent, to 1,268.45. The Nasdaq Composite Index (.IXIC) lost 33.86 points, or 1.26 percent, to 2,652.89.

For the week, the Dow fell 0.58 percent and the S&P 500 shed 0.24 percent, while the Nasdaq gained 1.39 percent.

Bank stocks fell on concerns about the economic outlook. The KBW Banks Index (.BKX) lost 1 percent and the S&P Financial Sector Index (.GSPF) shed 0.7 percent. The sector has been the worst-performing this year, falling around 8 percent.

On Thursday, the market welcomed Greece's agreement to a five-year austerity plan.

The euro declined against the dollar for a third straight session on worries Greece's parliament might not pass austerity measures needed for the country to secure more bailout funds.

In the latest economic data, new orders for long-lasting U.S. manufactured products, known as durable goods, increased 1.9 percent in May after dropping 2.7 percent in April as bookings for transportation equipment rebounded strongly.

Oracle Corp (ORCL.O) fell 4.1 percent percent to $31.14 (.NDX) a day after the world's No. 3 software maker posted disappointing results, especially in hardware sales. Oracle's results sparked concerns about a bigger slowdown in technology spending.

Micron Technology Inc (MU.O) tumbled 14.5 percent to $7.21 after the memory chipmaker recorded results below expectations late Thursday.

About 9.26 billion shares traded on the New York Stock Exchange, NYSE Amex and Nasdaq -- well above the daily average so far this year of around 7.57 billion. Analysts said Friday's volume was much higher than average due in part to the rebalancing of the Russell 2000 Index (.TOY).

Declining stocks outnumbered advancing ones on the New York Stock Exchange by a ratio of 19 to 11. On the Nasdaq, about three stocks fell for every two that rose.

(Reporting by Edward Krudy; Editing by Jan Paschal)


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LSE bid on knife edge as TMX battle heats up (Reuters)

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在 ServiceModel 客户端配置部分中,找不到引用协定“TranslatorService.LanguageService”的默认终结点元素。这可能是因为未找到应用程序的配置文件,或者是因为客户端元素中找不到与此协定匹配的终结点元素。

TORONTO/LONDON (Reuters) – A brace of sweetened offers has failed to sway shareholders in the race to buy the operator of Canada's biggest stock exchange, and time is running out ahead of a June 30 shareholder vote.

Shareholders said the London Stock Exchange must raise its friendly bid for TMX Group significantly before they will back the proposal, which now includes a welcome cash element in the shape of a special dividend.

But antitrust concerns could derail the second offer, a now-sweetened proposal from a consortium of Canadian banks, pension funds and financial services firms.

"From a game perspective or a strategy perspective, they're now basically where they were before," said Alison Crosthwait, director of global trading strategy at Instinet, which runs Canada's second biggest alternative trading system.

She added: "What surprises me is that, increasingly, I'm hearing a little bit of 'Perhaps, neither of the bids will happen...' So there's still risk in this."

With only a week before the vote, shareholders who talked to Reuters mainly favor Maple's home-grown bid, but the outcome is far from certain, particularly on the regulatory front. Some shareholders also say the LSE has not done enough to seal the deal.

The battle for TMX Group is part of a global wave of consolidation by exchanges seeking to expand geographically and in terms of the products they offer.

LSE Chief Executive Xavier Rolet wants to beef up the London exchange to fight off rivals, nimble new market entrants and predators. He says LSE's "merger of equals" with TMX will create a transatlantic powerhouse in mining and energy equities.

NET BENEFIT

The offer, if approved by shareholders from both companies at separate June 30 meetings, must still be approved by Canadian Industry Minister Christian Paradis, who has to decided if the deal is of net benefit to Canada.

The 13-member Maple Group consortium says the LSE proposal would leave a key Canadian asset in foreign hands.

In back-to-back sweeteners on Wednesday, the LSE added a cash component to its all-stock bid in the shape of dividends to shareholders of both exchanges, bringing the bid's value to just under C$49 a share.

Maple responded hours later by raising its cash-and-stock offer to C$50 a share, from C$48.

"I told (the LSE) they'd better bump the price or get off the deck," said Richard Fogler, a large TMX shareholder who said he met with the LSE on Wednesday.

Fogler, president of Kingwest & Company investment firm in Toronto, added: "If the LSE wants to win, they have to change their price."

London's bid value fluctuates along with its share price and analysts note LSE's stock would go down if its bid wins.

ISS, a proxy advisory firm with influential shareholder clients, recommended the LSE proposal and said it would yield cost savings, new issuer listings and beef up the group's global position.

Maple reacted to the ISS recommendation by noting that, despite favoring the LSE bid, the firm recognized Maple's offer provided "greater value than the LSE takeover".

Nevertheless, market experts believe LSE's Rolet has played his last card. Given he has to win two thirds of the Canadian investor vote next week, one banker said the prospects of a successful LSE-TMX deal "did not look good".

"These things are always decided on the basis of price," said Thomas Caldwell, chairman of Caldwell Securities. "Most traders will take one in the hand versus two in the bush."

TMX stock closed up 2.4 percent in Toronto at C$45.30. LSE shares finished at 957.5 pence.

ANTI-TRUST CONCERNS

Maple wants to wrap Alpha, Canada's largest alternative trading platform, and clearing house CDS, both of them largely owned by its members, into the new exchange.

That would give Maple more than 80 percent of Canadian stock trading and make the deal subject to antitrust review.

Analysts said the LSE's special dividend -- 84.1 pence per LSE share and C$4.00 per TMX share -- added a welcome cash element to the bid. But it did not raise the offer and also meant the company would have to borrow to pay for it.

"The LSE dividend has nothing to do with the value of the deal, rather the dividend means only cash for shareholders and a more leveraged business. The tax benefit is the only way the dividend makes the offer more attractive," said Numis Securities analyst James Hamilton.

Chris Damas, an independent analyst and TMX shareholder does not believe the LSE has the firepower in its balance sheet to up the bid again.

"The LSE still has an opportunity to bring in someone with deeper pockets and I really think they want this. They need an external capital at this point," said Damas, but added that it would be hard to find a strategic investor to add capital.

Michael Smedley, a TMX shareholder and chief executive of Morgan Meighen & Associates, said LSE's best strategy might be a bid for time while it regroups.

"It would seem incongruous that there would be a positive vote for the merging on the 30th, because if it were, it would end the process," said Smedley.

A spokeswoman for the LSE declined to comment on the latest developments. Analysts have long said the robust LSE share price reflects market expectations that its bid for TMX will fail, turning the LSE from buyer into takeover target.

For now, market watchers say exchanges considering a move will likely watch how the drama plays out from the sidelines.

"I think it's a low probability that another exchange would want to stick it's nose in there right now. It's complicated with a lot of moving parts and a lot of players involved at the end of the day," said Chris Allen, New York-based exchanges analyst at Evercore Partners.

($1=$0.98 Canadian)

(Writing by Pav Jordan, additional reporting by Solarina Ho and Jonathan Spicer; editing by Janet Guttsman and Rob Wilson)


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