Pak Offers To Buy Indian Share In Pipeline Project

(RTTNews) - As the relations between India and Pakistan touched the nadir following the Mumbai terror attacks, Islamabad has offered to Tehran that it could buy New Delhi's share of gas from the proposed $7.5 billion India-Pakistan-Iran (IPI) pipeline project involving the three countries, media reports said Thursday.

A team of energy experts led by Pakistan's adviser to the Prime Minister on Petroleum and Natural Resources, Asim Hussain, will travel to IranDecember 29 to discuss the proposal.

During its two-day visit, the delegation will try to persuade its Iranian counterpart to sign an agreement to transfer the Indian share of gas to Pakistan in the next few months claiming that New Delhi has apparently lost interest in the venture after signing the nuclear deal with the U.S.

However, Tehran still wants New Delhi to be part of the project to "counter growing U.S. influence on its old ally in the energy sector".

Indian market higher in early trade

(RTTNews) - Friday, the Indian market is trading firm on reports that that the government is likely to announce a second stimulus package in the next few days to lift slowing growth. Stocks across the sectors are trading in positive territory. Realty, oil/gas stocks such as Reliance Petroleum, BPCL & HPCL and metal stocks are rising sharply.

According to the commerce and industry minister Kamal Nath, the package may include steps to ease liquidity and relief measures for export and housing sectors. More measures to maintain the growth momentum in employment generating sectors like textiles, steels and pharmaceuticals are also expected to be announced.

However, the market is showing volatility on account of profit taking due to weekend considerations. Investors await inflation data scheduled to be released this afternoon. The index of wholesale inflation for the week ended December 13 is expected to have fallen to a fresh nine-month low of 6.61% from 6.84% a week earlier.

Euro Advances Against Dollar

(RTTNews) - In early trading on Friday, the European currency strengthened to 1.4060 against the US dollar. On the upside, 1.4126 is seen as the next target level for the euro-dollar pair. The European and US markets were closed yesterday for Christmas holiday. The pair closed Wednesday's New York session at 1.4014.

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Vietnam Devalues Dong As Inflation Slows Sharply In December

(RTTNews) - Thursday, the State Bank of Vietnam devalued its currency by 3% as the Vietnam's inflation slowed sharply in December. The monetary authority devalued the currency every year since 1995.

The General Statistical Office of Vietnam reported today that the consumer price index or CPI rose at a pace of 19.89% year-on-year in December. Inflation slowed from 24.2% recorded in November. Month-on-month, consumer prices were down 0.68% in December. In November, prices were down 0.76%. The average inflation rate for 2008 was 22.97%, the report showed, surging from 8.3% logged for 2007.

Today, the central bank fixed the rate at 16,989 per dollar, versus 16,494 yesterday. The currency is allowed to trade at 3 percent on either side of the fixed rate. This is the second time the central bank has made a significant increase in the exchange rate, after raising it by 2% in June.

The State Bank of Vietnam has allowed the currency to weaken 5.7 percent against the dollar this year, compared with a 29 percent slide in the Korean won and a 13 percent slump in the Philippine peso.

The Vietnamese dong is facing downward pressure due to the current-account deficit. Vietnam's trade deficit widened 56 percent to $16.9 billion in the first 11 months of the year, according to government data.

China Detains 59 On 'Subversive Rumors' In Tibet -State Media

BEIJING (AFP)--China has detained 59 people accused of fabricating subversive rumors in Tibet, state media said Thursday, blaming forces allied to the Himalayan region's exiled Buddhist leader, the Dalai Lama.

Since unrest broke out in Tibet in March, police have cracked 48 cases of " rumor-mongering" and detained 59 people, the Chinatibetnews.com Web site said, citing Xin Yuanming, deputy chief of police in Tibet's capital Lhasa.

"A number of people with ulterior motives deliberately spread rumors and fanned ethnic sentiment," he was quoted as saying, adding that the alleged rumormongers had been urged on by people close to the Dalai Lama.

The report said the rumors "seriously undermined the image of the party and the government and harmed the public's sense of security." The term "rumors" in China is often used to refer to anti-government views.

In one example mentioned in the report, unidentified people had downloaded " reactionary songs" from the Internet and sold them in compact disc and MP3 format in markets in Lhasa.

The Dalai Lama has lived in exile in India since fleeing his homeland after a failed uprising in 1959 against Chinese rule. China has ruled Tibet since 1951 after sending troops to the Himalayan region the previous year.

Japan Mulls Sending Warship To Tackle Pirates Off Somalia

TOKYO (AFP)--Japan said Thursday it was considering dispatching a destroyer to waters off Somalia to guard against pirates who are inflicting a costly toll on the shipping industry.

A growing number of nations are sending navy ships to fight pirates near the lawless East African country, with Japan's neighbor and sometime rival China set to dispatch three vessels on Friday.

"Japan has to deal quickly with this issue," Chief Cabinet Secretary Takeo Kawamura, the government spokesman, told a news conference.

But Japan has legal problems with sending warships because of its pacifist post-World War II constitution. Under domestic laws, the navy can only protect ships flying the Japanese flag or carrying Japanese nationals.

"Are the current laws appropriate for a mission like this?" Kawamura said.

"The laws stipulate that, as a general rule, Japanese (military) ships can operate within our territorial waters. But is that OK when we are discussing cooperation with the international community?" he said.

Kawamura said ruling bloc lawmakers will study changes in legislation.

The Mainichi Shimbun, quoting unnamed sources, said Prime Minister Taro Aso may announce a decision on an operation by the end of the year.

BOND REPORT: Treasurys Tread Water; Data Underscore Economic Weakness

By Deborah Levine

Treasury prices traded mostly flat ahead of the Christmas holiday Wednesday, after government reports on joblessness and consumer spending pointed to ongoing strains in the U.S. economy.

Two-year note yields (UST2YR) were little changed at 0.90%, recovering from their earlier decline.

Ten-year note yields (UST10Y) were also little changed at 2.19%.

Initial claims for unemployment benefits rose 30,000 to a seasonally adjusted 586,000 in the week ended Dec. 20, marking the highest level seen for first-time claims since 1982.

A separate report showed a decline of 0.6% in consumer spending during November, though economists surveyed by MarketWatch had been looking for a drop of 0.7%. A measure of consumer inflation excluding energy and food prices was flat in November, as predicted.

Another government report indicated durable-goods orders fell 1% last month, a better performance than the 3% drop that had been forecast.

MARKET SNAPSHOT: U.S. Stocks Make Modest Gains In Light Pre holiday Trading

By Nick Godt

U.S. stocks finished higher after a shortened pre-holiday trading session Wednesday, gaining ground as data on consumer spending and durable goods orders for November came in better than expected.

The New York Stock Exchange closed early at 1 p.m. ET, ahead of the Christmas holiday.

"We're on the plus side, which is sort of a treat, considering that the market has been down for the past five sessions," said Peter Cardillo, chief market economist at Avalon Partners.

The Dow Jones Industrial Average (DJI) gained 49 points, good enough for a 0.6% advance to 8,468, with 22 of its 30 components trading higher.

Shares of General Motors Corp. (GM), hit hard this week, led the blue-chip gains, up 8%.

Automotive rival Toyota Motor Corp. (TM) said that its domestic production dropped 27.2% in November from a year earlier to 288,138 vehicles, the fourth straight monthly decrease.

BOND REPORT: Treasurys Gain As Data Underscore Economic Weakness

By Deborah Levine

Treasury prices rose Wednesday, pushing yields down, after government reports on joblessness and consumer spending pointed to ongoing strains in the U.S. economy.

Two-year note yields (UST2YR) fell 3 basis points, or 0.03%, to 0.88%.

Ten-year note yields (UST10Y) were little changed at 2.18%.

Bond prices move inversely to their yields.

Initial claims for unemployment benefits rose 30,000 to a seasonally adjusted 586,000 in the week ended Dec. 20, marking the highest level seen for first-time claims since 1982.

A separate report showed a decline of 0.6% in consumer spending during November, though economists surveyed by MarketWatch had been looking for a drop of 0.7%. A measure of consumer inflation excluding energy and food prices was flat in November, as predicted.

BOND REPORT: Treasurys Curb Losses On Auto Bailout, Yields Rise

By Laura Mandaro

Treasurys pared their losses in early afternoon trade Friday after some of the euphoria over the U.S. auto bailout moderated, though yields on mid-term maturities made sizeable one-day rises.

The 10-year Treasury note last traded flat, with yields (UST10Y) at 2.08%, roughly in line with levels late Thursday. Yields on the benchmark security, which move inversely to prices, had fallen as much as 0.9% earlier, sending yields 11 basis points higher.

In light and choppy trading ahead of a holiday-shortened week, short to medium term Treasurys (UST2YR) took the brunt of selling. Yields on two-year rose 5 basis points to 0.74%, three-year note yields gained 8 basis points to 1.01% and five-year notes advanced 6 basis points to 1.32%.

BOND REPORT: Treasurys End Euphoric Week On Down Note; Yields Tip Up

By Laura Mandaro

Treasurys fell Friday, flattened by a bout of optimism on the U.S. economy after the White House unveiled a rescue package for Detroit's automakers and ahead of record auctions next week.

On Friday, the 10-year Treasury note slid 0.1%, with yields (UST10Y) at 2.12%, four basis points higher than levels late Thursday. Yields on the benchmark security, which move inversely to prices, had risen as much 11 basis points earlier.

Still, the rush into Treasurys spurred by the Federal Reserve's aggressive moves to lower interest rates drove 10-year yields nearly a half percentage point down for the week, and they set new lows along the way. As of Thursday, Treasurys had returned 2% for the week, according to Merrill Lynch's index of high-rated U.S. government debt.

In light and choppy trading ahead of a holiday-shortened week, short to medium term Treasurys (UST2YR) took the brunt of selling. Yields on two-year notes rose 4 basis points to 0.73%, three-year note yields gained 9 basis points to 1.03% and five-year notes advanced 8 basis points to 1.36%.

LATIN AMERICAN MARKETS: Equities Unable To Gain Ground After U.S. Reaches Carmaker Deal

By Carla Mozee

Key Latin American stock markets finished lower Friday, unable to log gains after U.S. automakers won an emergency-loan package from the government after months of volatile negotiations.

Brazil's Bovespa fell 1% to 39,131.23, and Mexico's IPC lost 0.6% to 22, 221.64.

Argentina's Merval lost 1.7 % to end at 1,093.57, and Chile's IPSA shed 0.2% to 2,346.46.

Brazil's oil heavyweight Petrobras (PBR) shed 0.6%.

All steel stocks ended lower. Vale (RIO) fell 0.4% and Usiminas lost 0.2%. Gerdau (GGB) shares fell 1.8%, and Companhia Siderurgica Nacional (SID) fell 1.9%.

Moody's Investors Services, which revised outlooks on Gerdau, Gerdau Ameristeel Corp. and CSN's backed notes to stable from positive, said its actions reflect expectations for weakened debt protection metrics as well as rapid deterioration of steel-industry conditions worldwide, said Moody's.

ASIA MARKETS: Hong Kong, Tokyo Stocks Flip-flop

By V. Phani Kumar

Most Asian markets were unsettled Thursday, with stocks in Japan and Hong Kong struggling to hold on to gains after a decline in Wall Street, while energy stocks declined across the region on sliding crude-oil prices.

Honda Motor Co. tumbled in Tokyo a day after it slashed the profit outlook while a strengthened yen hurt other exporters such as Canon Inc.

In Sydney, Commonwealth Bank of Australia shares plummeted as trading resumed after the bank finalized a A$2 billion ($1.4 billion) capital raising plan and after CBA said its loan impairment charges were expected to be higher than analyst estimates.

Chinese property stocks advanced in Hong Kong after Beijing announced measures to stimulate demand for homes Wednesday, but shares of some Hong Kong developers declined as banks held on to their interest rates in spite of a one percentage- point reduction by the Hong Kong Monetary Authority in its key interest rate.

Five Year-end questions for Wall Street

By David Weidner

NEW YORK (Dow Jones) -- Wall Street was forever changed during this year, but it may be a while before we can tell if its more sinister components were on the road to reform or a rebirth.

As we near the end of 2008, investment bankers, traders, investors and everyone connected to our financial system is wondering what will happen next. Will the machine continue to break down, or have we already started down the path to recovery?

No one is willing to bet on the outcome, but some simple questions may soon be answered that will give us a better idea whether the business of investing and dealmaking will regain a place in our society, or whether it will be frozen out by unbridled greed.

What follows are questions about Wall Street, the Wall Street of capital markets, corporate finance, strategic advice and securities. These are not meant to be questions whose answers will tell us about the future of the economy. It's not a discussion of interest rates and taxes and monetary policy.

ASIA MARKETS: Tokyo Stocks Rebound, Hong Kong Stocks Waver

By V. Phani Kumar

Japanese shares advanced Thursday as investors bought into banks and property developers at bargain prices, but Honda Motor Co. declined a day after it slashed the profit outlook while a strengthened yen hurt other exporters such as Canon Inc.

Australian shares dropped after an overnight decline on Wall Street and in crude-oil prices. The market also was weighed down by Commonwealth Bank of Australia, which slumped as trading resumed after the bank finalized a A$2 billion ($1.4 billion) capital raising plan and after CBA said its loan impairment charges were expected to be higher than analyst estimates.

In Tokyo, the Nikkei 225 Average ended the morning trading session up 0.9% at 8,687.04 reversing early losses, while the broader Topix index gained 0.3% to 841.10.

ASIA MARKETS: Tokyo Rebounds, Shrugs Off Dismal Tankan Result

By V. Phani Kumar

Asian markets bounced Monday, as automakers like Toyota Motor Corp. and Hyundai Motor Co. jumped to recoup losses from the previous session, after the Bush administration said Friday it would step in to prevent a failure of U.S. automakers.

Japan's Nikkei 225 Average, which slumped 5.6% Friday, soared 4% to 8,561.22, while the broader Topix index gained 3.4% to 840.78.

The jump came even after Bank of Japan's tankan survey showed business sentiment dropped sharply, with the headline diffusion index for large manufacturers deteriorating at its fastest pace since August 1974, falling 21 points to minus 24. The reading was the worst in nearly seven years.

Australia's S&P/ASX 200 rose 3.5% to 3,633 and South Korea's Kospi jumped 3.5% to 1,141.87, while New Zealand's NZX 50 index rose 0.8% to 2,697.17.

ASIA MARKETS: Tokyo Stocks Pace Gains, Ignoring Bad News, Data

By V. Phani Kumar

Japanese stocks soared Monday to lead Asian markets higher as investors brushed aside a survey showing business confidence plunged, on hopes for a U.S. interest-rate cut and after the Bush administration said Friday it would step in to prevent a failure of U.S. automakers.

The Nikkei 225 Average, which slumped 5.6% Friday, soared 4.8% to 8,627.45 in the afternoon, while the broader Topix index gained 3.7% to 843.44.

The advance ignored Bank of Japan's tankan survey, which showed business sentiment dropped sharply, with the headline diffusion index for large manufacturers deteriorating at its fastest pace since August 1974, falling 21 points to minus 24. The reading was the worst in nearly seven years.

Hong Kong's Hang Seng Index rose 3.5% to 15,271.19, also rebounding after losing 5.5% Friday, and shrugging off a report in the Financial Times that HSBC Holdings has a potential exposure of $1.5 billion to Bernard Madoff, a former chairman of Nasdaq, who was arrested last week and charged with securities fraud. An HSBC spokesman in Hong Kong declined to comment on the report.

Tokyo Stock Exchange: 130 years of success

The second largest stock exchange market in the world by market value, second only to the New York Stock Exchange, it outstripped the London Stock Exchange in its day. With the background of 130 years it represents a modern institution that helps the business of huge holding companies incorporating best global practices and native principles peculiar to the local mentality. Its motto runs: “To strive to create a sound market with a high level of reliability and convenience from the standpoint of investors and other market users, thereby contributing to the realization of a more prosperous society.”

BOND REPORT: Treasurys Gain On Dismal Jobless Data, 10-year Auction

By Deborah Levine

Treasury prices gained ground Thursday, pushing yields lower, following more gloomy data on U.S. employment, and after a successful government auction of 10-year bonds.

The Treasury sold nearly $16 billion of 10-year bonds at a high yield at 2.67% , the lowest-yield ever offered by the government in a 10-year auction, a silver lining of mounting debt to pay for bailouts of banks, mortgage-buying agencies, insurers and possibly, auto manufacturers.

The previously lowest-yield auction was in March, at 3.51%.

The bid to cover ratio stood at 2.44, an indication of firm demand.

MARKET SNAPSHOT: U.S. Stocks Trade Flat As Energy Gains Offset Car Worries

By Nick Godt

U.S. stocks rebounded from early weakness to flirt with positive territory on Thursday, with energy stocks rising as crude oil prices surged another 11% on a weak dollar and expectations of upcoming production cuts.

The energy sector jumped 4% as crude oil futures rose $5.12, or 11.6%, to $ 48.57 a barrel, extending a rally from the previous session.

The rest of the market, however, remained flat to negative amid ongoing concerns about a bailout for the U.S. auto industry. Late Wednesday, the U.S. House of Representatives approved a $14 billion federal loan package to the Big Three automakers in a 237-170 vote.

"The bill now has to go through the Senate where it is expected to face a tougher challenge," said Robert Kavcic, an analyst at BMO Capital Markets.

The Dow Jones Industrial Average (DJI) was up 20 points, or 0.2%, at 8,782, off a morning low of 8,617.

Among blue-chips, shares of Chevron Corp. (CVX) jumped 4% and those of Exxon Mobil Corp. (XOM) rose nearly 2%.

Weighing on the Dow, shares of General Motors Corp. (GM) slumped 6%, while away from the Dow, Ford Motor Co. (F) shares fell 4%.

Financial blue chips were also under pressure, with JP Morgan Chase (JPM) off 4.5%, Citigroup (C) down 5% and Bank of America (BAC) down 3.6%.

Also on the Dow, household products giant Procter & Gamble lowered its sales growth forecasts for the current quarter. The company, however, said it still expects to meet its previously earnings forecasts and its shares rose 0.6%.

The S&P 500 index (SPX) rose 1.9 point