Stocks fall of Goldman results (Reuters)

NEW YORK (Reuters) - The S & P 500 was on the runway to show its worst day in about two months on Wednesday as disappointing results from Goldman Sachs (GS).(N) and Wells Fargo (WFC).(N) deflated hopes for strong bank earnings.

The Nasdaq fell more than 1%, also its biggest daily percentage loss since November 23, as more disappointment on the earnings front came from Cree Inc. (Cris.O). its stock fell 14.1 53.87% $.

Semiconductor index (.)(SOX) also decreased 2%, its worst decline in percentage since August 30.

Goldman Sachs Group Inc. stock fell by 3% to $169.48 after Wall Street firm has posted a decrease of 53% benefit as commercial revenue declined. Shares of Wells Fargo & Co lost by 2.1% to $31,78 after the company posted fourth-quarter profit that missed estimates some analysts.

With financials, "I think expectations were for some better results after a fairly robust fourth quarter and the implementation in 2011", said Thomas Villalta, Jones Villalta Asset Management Portfolio Manager in Austin, Texas.

VILLALTA says he is still optimistic about financial statements for 2011, however, noting the recent gains in the sector. Financial statements have been among the leaders of the market in the recent rally, with the S & P 500 at 12.7% since the beginning of the fourth quarter.

Optimism on revenue from the financial sector strengthened after JPMorgan Chase (JPM).(N) results Friday beat targets.

But not all analysts have been optimistic about the sector: data from Thomson Reuters StarMine Friday suggested most banks don't miss earnings expectations.

Index Dow Jones hurt was shares of American Express (AXP).(N), decreased by 2.8% to $45.06. The company said restructuring costs related to the closure of some places in its global network of maintenance, would reduce the gains in the fourth quarter.

The Dow Jones industrial average (.)(DJI) has dropped 10.14 points, or 0.09%, to 11,827.79. The Standard & Poor 500 Index (.)(SPX) was down 10.62 points or 0.82%, to 1,284.40, its largest percentage loss daily since 23 November. Nasdaq Composite Index (.)(IXIC) decreased from 32.00 points or 1.16%, to 2,733.84.

Titles of Cree and rival LED lighting fell after what it reported lower then-projected sales, profit and a quarter in prospects later Tuesday.

Rubicon Technology Inc. (RBCN.)(O) released 6.5% at $21.03 and Veeco Instruments Inc. (VECO).(O) crumpled 5.2 46.62% $. Shares of circuit maker linear Technology Corp. (LLTC.)(O) dove also from 3.3% to $34.93 and supplier of semiconductor Marvell Technology Group (MRVL)(O) dropped by 3.1% to $21.22.

Among the light on the results of the fourth quarter were earnings from Apple Inc. (AAPL).(O) and International Business Machines Corp. (IBM)(N), released after Tuesday closing bell.

Profit of Apple blew beyond Wall Street expectations on sales of the iPhone, the iPads and Mac computers. The stock is 0.6 percent to $342.63 a number of brokerage firms, including Goldman Sachs and Bank of America Merrill, raised their price on the stock targets.

Shares of IBM, whose results exceeded the expectations also rose 3.3% to $155.60.

"We saw two of watchmakers report last night with more - than the solid figures and that, if anything, valid move had us in the fourth quarter," said Bennett Gaeger, Managing Director at Stifel Nicolaus in Baltimore.

"But in seedlings, people are taking some profits off the coast of some of the best performers.

(Statement by Caroline Valetkevitch.) Other reports by Alina Selyukh; (Editing by Jan Paschal)

American Airlines parent AMR loses 1.97 m $ in the fourth quarter (AP)

DALLAS - American Airlines is much better than last year, thanks to higher rates and money, extra cost, but it is still losing money.

Third airline nation is pinning hopes for a turnaround put high-dollar business travelers more flights and travel between some major American cities.

Although this strategy works - and some analysts such as he - American still faces enormous challenges ranging from rising fuel costs a fight ugly with travel agencies which makes it harder to find American flights online.

U.S. parent AMR Corp. said Wednesday that it lost $ 97 million in the fourth quarter, or 29 cents per share. It is smaller than AMR posted a year ago, and he beats forecasts of analysts who expected a loss of 36 cents per share, according to FactSet.

Revenue jumped 10.3%, 5.59 billion — better than analysts expected. Air tickets increased as airlines flights limited and filled more passenger aircraft. The average American flight in 2010 was 81.9% of filled seats - is a record.

Airlines also raised money by imposing a variety of fees. AMR, category Tote with "other income," which includes baggage and food, sales increased 2.9% in the fourth quarter to $ 599 million.

But the coup de pouce of income was not enough to offset the costs of fuel. AMR, which also holds regional carrier American Eagle, paid 1.66 billion for fuel in the fourth quarter, an increase of 12.9% in one year.

Even more troubling, the company expects prices of fuel to raise at least $ 1 billion this year. CEO Gerard Arpey named "the threat more disturbing that we see."

AMR shares fell 38 cents, or 4.6%, $7.91 in afternoon trading.

Texas-based AMR lost 471 million for all of 2010. When the major airlines of U.S. finished results next week, AMR should only show a loss for the year complete.

There are several reasons why AMR lags competitors. It faces more stringent governmental restrictions on international service, Delta and trails the US in the important market of trans-Pacific, is facing higher labour and pension costs and operates older aircraft.

Plan of Arpey to turn things includes stimulate circulation in the Pacific and Atlantic dealt with British Airways and Japan Airlines partners. American finally won an antitrust immunity for these companies. In the United States, he focused carefully on five major cities, including New York and Los Angeles while minimizing others.

The two movements are designed to attract business travellers who typically pay higher than leisure travellers rates.

"This is a great network," said Michael Derchin, an analyst at CRT Capital Group. "This is a directory of places where business people reside or want to travel."

American announced Wednesday that he will order two new aircraft from Boeing 777 - 300 long-range for use on international flights. Terms were not disclosed. Boeing Co. lists aircraft 284 million each, but regularly, though customers get discounts.

American also said that he speaks with Expedia and Orbitz get listed flights again on Web sites of online travel agencies. American wants to reduce the costs of distribution of tickets, bypassing intermediaries such as Sabre Holdings, who charge airlines for their service. But for the moment, the conflict has claimed Americans harder to find online flights.

This week agreed Priceline.com obtain details of the flight directly from American. Ray Neidl, Maxim, Group analyst said that the Priceline deal could be the model American uses to resolve disputes with Expedia and Orbitz.

American Express quarterly profit misses estimate (Reuters)

By Maria Aspan and Joseph a. Giannone Maria Aspan and Joseph a. Giannone - 1 h 17 minutes ago

NEW YORK (Reuters) - American Express (AXP) Co(N) reported quarterly earnings misses little Wall Street estimates and said it would cut 550 jobs as it handles more customer services on the Internet.

Shares of the company were 2.7 in afternoon trading after that the lender of credit card and payment processing network said it earned $ 1.1 billion, or 88 cents per share, in the fourth quarter. Which included a charge of 74 million, or 6 cents per share, for the deletions of jobs and the closure of customer service centres.

To the exclusion of the charge, profit the company of 94 cents per share missed estimates average analysts by a penny, according to Thomson Reuters I/B/E/s

The earnings miss is an unpleasant surprise to some investors, taking into account the positive trends on the spending volume and credit. American Express Chief Executive Kenneth Chenault cited "record levels" customer spending on their credit cards and credit thereof losses continued to shrink.

The job losses also relaunched investor concerns that financial regulation could hurt the company's future growth.

"You always want to streamline your existing operations to be more efficient... but if they expect a robust growth environment, you can see significant head count reductions pas said Ventures Intrepid payments consultant Eric Grover.".

Investors are wary of the potential effect of the U.S. financial regulation on American Express. Company's shares fell 8 percent last month, before largely after the Federal Reserve has proposed rules that would reduce fees that merchants pay banks whenever a customer buys something with a debit card.

American Express does not have a debit card company, credit card expenses are some of the highest in the industry and investors are concerned that he will lose business as merchants ask customers to pay with debit cheaper cards.

EDF indirectly rules "will have a negative impact on AmEx - this is a big problem," said Grover. "If merchants are able to discount, AmEx is going to get hit in a masterly way, and they will have to lower their prices."

American Express shares were down 3.1% to $44.91 in afternoon trading.

MOVEMENT OF JOBS AROUND

Sandler O'Neill analyst Michael Taiano, said that society can chose to reinvest more marketing profit and technology rather than reserve them for gains.

He told American Express scared investors by the income tax return on Wednesday, but waiting Street until Monday for a full explanation of manufacturing. Fourth-quarter results were not due until Monday.

"The problem with something like this is give you the number to the bottom line without all the details and people start to wonder," said.

Including restructuring costs, profit American Express will increase by almost half of the previous year of 716 million, or 60 cents per share. Decrease in loan losses leaves the company reduce the amount of money set aside for doubtful debts, boost profit.

More client American Express handling of day-to-day business by means of the Internet and their smartphones, reduce the number of calls to the company's service centres. The company said that he left many customer service vacancies after employees leave, which means he pays now rent and other costs of real estate for centres which are too big for its own purposes.

Approximately 3,500 jobs will be affected by changes in the service to customer, including about 3,000 will be moved to different locations. The company closes a customer service centre in Greensboro, North Carolina and send jobs to his three other U.S. customer service locations, Fort Lauderdale (Florida); Phoenix, Arizona. and Salt Lake City, Utah.

Society will relocate some jobs in Madrid to Britain and the Argentina and move support services for its map Japanese company in the Japan of the Australia.

American Express spokeswoman Joanna Lambert said some affected employees in the U.S. would be able to relocate to other centres for customer service jobs, and others would be able to work from home. American Express has informing employees of changes on Wednesday.

The company said that blows should generate additional costs of 60 million to $ 80 million this year, the future real estate closings and employee compensation-related. It provides complete the process by the end of the year.

Starting next year, American Express expects slaps to reduce spending 70 million per year.

(Statement by Joseph a. Giannone and Maria Aspan.) (Editing by Matthew Lewis, Robert MacMillan and John Wallace)

Stress tests MFIS come in early for UK and German banks (Reuters)

Frankfurt/London (Reuters) - The International Monetary Fund performs a health check of top banks in Britain, Germany and three countries, just as Europe hammers details on his own most severe industry "stress test".

The round of the IMF European health checks will begin in Britain, three sources said Reuters, which will be followed by the Netherlands, Sweden, Germany and the Luxembourg.

Separately, European banking (EBA) Authority plans a more severe test of banks in Europe that a health check last year, which was violently to find only a small just before capital deficit problems spirals in banks forced an international bailout by the Irish Government.

The ABE test based on a capital definition near base of tier 1, rather than reporting level used less stringent 1 last year, said a person notified by German regulators.

The number of banks being tested will be similar to 91 last year.

The EBA has refused to comment, saying that the details are still in discussion. The German source said the final list of participants and scenarios will be determined by the end of February and mid-April the results will be sent to the national regulatory authorities. The EBA is expect to publish the result at the end of June, says the source.

Tests come as a credit rating agency study concluded more than 30 top banks of the world - including Credit Switzerland (CSGN.)(VX), Bank of America (BAC.)(N) and Mizuho Financial (8411.T) - capital insufficient to resist a big problem. (http://tinyurl.com/6jz3g4u)

Standard & Poor says more banks improved in the last two years their adequacy but much falls still short and positions in the capital of banks (RBA) risk-adjusted is "generally weakness rating."

TESTS OF THE IMF

Sector assessment programs of the IMF or FSAP, is in-depth analysis of the financial sector of the country and was made mandatory in September to 25 countries "important systemic", a movement in order to prevent another global crisis.

Top banks test of Britain, including HSBC (HSBA.)(L), Barclays (BARC.)(L) and (LLOY) Lloyds banking group(L), expected to take several weeks, sources said.

Tests in all five countries will be carried out in the first quarter of this year, said the spokesman of the IMF.

"We did not have an FSAP for many years." It should be given a number of things have changed in terms of our financial structure, since the last full IMF FSAP here, "said Jonas Niemeyer, Chief of the Swedish Central Bank policy and analysis division.

"We look forward an external evaluation of all the problems that we can and we are seeing such an assessment as potentially being a very important and useful tool." It is always nice to have a second opinion. Is our system just and appropriate or not? »

The ABE process should include a test of liquidity, that was missing from last year.

Heads of two largest banks Italy, UniCredit SpA (IDRC.)(MI) Chief Executive Federico Ghizzoni and Intesa Sanpaolo SpA (PSA.)(MI) CEO Corrado Passera, hosted a new emphasis on liquidity in the new tests by Brussels.

"They were definitely be on capital and liquidity." They are two very important elements, although for me the liquidity is almost more important than capital, "Ghizzoni has told reporters outside of a meeting in Rome."

In his study, S & P found that the average ratio of RAC for banks was 8 per cent at the end of June 2010, compared to 6.7% a year earlier, said S & P.

Commerzbank Germany (CBKG.)(DE), Raiffeisen Austria (RBIV.)(VI) and Mizuho Financial Japan the classified near the bottom of the study, each with cars of less than 5% ratios.

Faring poorly were also Credit Switzerland and the Canadian Imperial Bank of Commerce (CM)(TO) - 5.8% at both. Deutsche Bank (DBKGn.DE), Lloyds (LLOY.)(L), Bank of America and Citigroup (C.N) had RAC ratios less than 7.5%.

Banks in the Japan and Austria had ratios mean more low, Australia, Singapore, Hong Kong, lenders and the Nordic countries had the highest.

(Additional by Mia Shanley in Stockholm, Stefano Bernabei in Rome and Edward Taylor in Frankfurt;) (Editing by Douwe Miedema, David Cowell and David head)

What is behind the free H & R Block tax services (BusinessWeek)

The 2011 tax season is underway and the airwaves are filled with an agreement that sounds too good to be true: for another month, Americans can visit their local H & R Block (NYSE: HRB - News) Office and file their taxes for free of charge.

How and why the nation over big tax filer would give service away for free? In a Nutshell: 1) H & R Block is forced to scramble more difficult this season of tax to compete with other depository services. (2) It is incapable of offering a service that introduced to customers in recent years. (3) The offer "tax free" is not for everyone.

Here are the details:

What is the catch?

The promotion covers only those filing of federal form 1040EZ, which is about 16% of clients of H & R Block. The 1040EZ form only covers simple tax issues. It cannot be used by anyone who has dependants, makes over $100,000 per year, is the age of 65 or pleased, says adjustment to income as alimony or tuition deductions or enumerates the deductions. Thus, the owners to deduct mortgage interest or people with large charitable donations may not use the 1040EZ.

Even clients who can use a 1040EZ will have to pay H & R Block additional file state tax returns. Only seven States — Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming - did no income tax.

The offer began on 14 January, when the local H & R Block offices began 2010 filing returns and ends February 15. February 15-18 April (tax time is different this year due to vacation on April 15 in the District of Columbia), customers will be charged to file a 1040EZ H & R Block Office. This is an important consideration for taxpayers who may be still waiting key year-end documents.

What H & R Block get Promotion?

Free returns are not a charity, project while many filers beginning of H & R Block tend to be more poor people who want that their tax refunds as soon as possible. "It is not giving business free of charge," said Senior Vice President of Amy McAnarney, H & R Block tax operations. One goal is to increase traffic at H & R Block offices. ""Free"can be a very powerful word, she says." Until they arrive at their appointment, many of these new customers could not aware that they actually need tax forms - more complex and therefore will be liquidated to pay the price.

Another objective is to attract younger taxpayers — those who can still use the 1040EZ - and earn their loyalty for years in the future. The company estimated 55% EZ filers should file a more complex form within two years.

Why this year?

Operation of the H & R Block retail lost customers, with retail returns fall 6.1% last year. Morningstar (NasdaqGS: MORN - News) equity principal analyst Vishnu Lekraj in said fiscal year tax preparation services continue to lose market share to tax software and websites, which can be much cheaper. "The taxpayer is becoming more comfortable to do their own taxes", he said.

Many software or online tax tools already offered free 1040EZ deposits including those H & R Block and Intuit (NasdaqGS: INTU - News) TurboTax. Last year, said McAnarney, H & R Block tried offering free 1040EZ returns at offices in three cities - Miami, New Orleans and Atlanta — "and it was very well received."

Offering yields free fact also belongs to to the business of bounce a few rough years, analysts say. A rise in unemployment has hurt business for all practitioners in tax returns, with deposits IRS OFFS fell by 1.7 per cent last year, the largest decline since 1971.

What happened with publicity Promotion H & R Block from previous years, the reimbursement of "Instant Money"?

Those "refund anticipation loans" have made the fire by the Federal Government and groups of consumers for high fees and finance charges. Analyst actions Compass Point Mike Turner considers ral cost H & R Block 2010 clients on $67 each, which operates at an interest rate annualized by 54 percent on an average return of $3,000. The lawn by H & R Block and other services has been the ral let client - generally those who lack bank accounts - get their reimbursement immediately instead of waiting for eight weeks or more to get a check from the IRS.

After regulators cracking down, lender from H & R Block, HSBC (NYSE: HBC - News) announced it would not support Instant money program the company this year. As result, H & R Block cannot offer RALs, while competitors like Jackson Hewitt (NYSE: JTX - News) can still do so, at least this year. Regulators seem serious ending ral entirely, Morningstar's Lekraj adds: "they consider fair consumers at the end of the day began to profit". Turner's Point of Compass considers h & R Block could lose 10% to 15% of its general users. H & R Block offers alternatives, including a prepaid debit card and a prediction for a refund cheque may take eight days to clear. But the free tax service is designed to recover some of the promotional slack.

This do eat in H & R Block income?

H & R Block is convinced that many of these new clients entering the offices of searching for a free return eventually pay anyway - for most complex federal declarations, return of the State or to other services. Last year the tax return average Office of H & R Block cost $189 retail and executives don't expect to decline in 2011. H & R Block retail tax Chairman Phil Mazzini "our ability to monetize this program means minimal impact on our net load average," said analysts on 7 December.

The high rate of employment of U.S., instant cancellation of the program of money and promoting deposit free all make it difficult to predict how the company will do this tax season say analysts. "Everything is really up to air in my opinion, Morningstar's Lekraj said."

Compass Point Turner expects H & R Block will stop losing business to the bad economy, but he says he will continue to lose customers to DIY, computerized tax deposit options. "I expect their total filers to be slightly year over year," he explains.

Management provides no guidance for investors. Analysts surveyed by Bloomberg estimate of revenue falls 1.4% to $ 3.7 billion in FY 2011 ending in April, after a decrease of 4.5 per cent last year. Net income is estimated to fall 2.1%, 469 million, following a decline of 1.3% in 2010.

Return of us equity investors may be too late (AP)

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By MARK JEWELL, AP Personal Finance Writer Mark Jewell, Ap Personal Finance Writer – Tue Jan 18, 4:02 pm ET

BOSTON – Investors are finally inching back into the stock market. But are they too late?

While millions sought refuge in traditionally stable bonds over the past two years, they missed a more than 90 percent rally in stocks. Suddenly bonds don't look so safe, and some of the $11 trillion that Americans have parked in mutual funds is shifting back to stocks.

After putting more than $570 billion into bonds over the past two years, mutual fund investors reversed course last fall, worried that the prospect of rising interest rates and the growing deficits of state and local governments were bringing bond prices down.

In the last two months of 2010, investors withdrew a net $23 billion from bond funds, according to industry consultant Strategic Insight.

At the same time, corporate bottom lines are improving. So investors are finally starting to take another look at stocks after being burned in the 2008 financial crisis and scared by the market's "flash crash" single-day plunge in May.

"Most investors have been in a capital-preservation mentality, because they saw so much of their net worth destroyed in the bear market," says Chris Jones, chief investment officer with J.P. Morgan Asset Management.

Few have fully recovered since the stock market began sliding from its historic peak in October 2007. The Standard & Poor's 500 index is 17 percent shy of that level, despite recent gains.

The momentum has shifted, and now, with a couple of years of solid market performance, many risk-averse investors may be ready to get back in. But there are cautionary voices.

The economic recovery is still fragile in the eyes of Tom Roseen, an analyst with fund-tracker Lipper Inc.

"I wouldn't be surprised if we have a little bit of a pullback over the next couple months, as people re-evaluate their portfolios and take a look at how much the market has gained," he says.

Until recently, investors got a decent return from their play-it-safe strategy. Diversified bond funds gained an average of 10.8 percent last year, beating their average annual gain of 6.2 percent over the past five years, according to Morningstar.

Still, nearly all types of bonds lost money in the fourth quarter, with government bonds taking the biggest hit.

This downturn helped fuel a shift into stocks — most notably abroad. Mutual funds buying overseas stocks took in a net $72 billion last year, while investors pulled a net $49 billion out of funds buying American stocks.

There are signs that U.S. stocks are becoming more attractive to mutual fund investors. For one week last month, domestic stock funds took in more money than investors pulled out. The last time that had happened was in April. And the pace of withdrawals is slowing.

Market optimism is also improving. For 19 consecutive weeks, surveys by the American Association of Individual Investors have shown a greater-than-average belief that stock prices will rise. The last time the surveys had such a long streak of bullish sentiment was in late 2004.

Yet the movement of money because of troubles with municipal bonds offers a reminder of how important it is for investors to remain even-keeled.

"You simply have got to put aside the emotion and believe in what you are taught, to buy low and sell high," says Carol Clemens, a 64-year-old retiree from Edmond, Okla.

She scored big when she snapped up shares of Ford for around $2 when it appeared U.S. automakers might go under a couple of years ago. The stock now trades above $18, thanks to smart moves by Ford's management and a strengthening economy.

Clemens' portfolio is about two-thirds stocks and one-third bonds, and she's recently been trimming her stake in bonds.

"If you put money into bonds, there is a nice cushion when the stock market goes down," Clemens says. "But I'm retired, and we're looking for an income stream. We're not getting it from bonds," she says, calling current yields "abysmal."

Belief that the economic recovery is on track has recently driven up long-term interest rates from record lows. This has led investors to pull out of low-yielding Treasurys. Rising rates also are making it costlier for state and local governments to borrow. Fear of further rate increases also is causing prices for many previously issued bonds to drop. That's because investors will be able to buy newly issued bonds paying higher interest.

So as bond prices decline, investors like Clemens will be looking for income from stocks that pay solid dividends. And as other investors step back into stocks, they may be questioning whether they're making the classic mistake of buying in at the market's peak.

The S&P 500 is up 23 percent since Sept. 1, and at its highest point since August 2008. It finished 2010 with a return of 15 percent including dividends, more than twice the gain for a comparable bond index.

J.P. Morgan's Jones expects further stock gains in 2011, with a breakout year for growth stocks of companies whose earnings rapidly appreciate — think Amazon.com, whose stock price has tripled since March 2009. But Jones doesn't think many investors are willing to get back into those richly priced stocks.

"Investors are incredibly shell-shocked," Jones says, "and they're not willing to pay for growth until they see it."

Yet many market pros are predicting another year of double-digit gains. They point to an abundance of positive economic indicators: factories cranking up production, hiring activity picking up, growing corporate investment in technology. Consumers also are more confident, thanks in part to the recent extension of the Bush-era tax cuts and a new cut in the Social Security payroll tax.

Sooner or later, investors will put their money where it's gaining the most, predicts Bob Doll, chief stock strategist at BlackRock, the world's biggest money management company. Investors tend to chase rather than anticipate returns. He expects investors will embrace stock funds over bonds, ending what he calls an era of fear.

Stocks may post their third year of double-digit percentage gains in a row, Doll says. That hasn't happened since the late 1990s.

And if the market behaves like it has coming out of previous recessions, the S&P 500 could rise nearly 12 percent this year. That's the average gain the index made in the one year immediately following this point in the economic cycle, a year and a half after the end of a recession. The analysis by Birinyi Associates examined market gains coming out of seven prior recessions.

Another positive: Corporate earnings are rising. Around mid-year, Doll expects profits of S&P 500 companies will top the record high they reached in June 2007, noting that more companies have recently been boosting their earnings projections than scaling them back.

Yet many believe investor conservatism still runs deep, in part because of demographics. Baby boomers are beginning to retire in droves, and they're drawn to the steady income and returns that bonds typically generate.

Indeed, not everyone is declaring that investors have given up on bonds. Strategic Insight expects demand for bond funds will rebound in the first half of this year.

A key reason is that bond yields still look pretty good compared with the current near-zero returns from cash investments such as money-market funds.

"The numbers suggest a slow rebound for investor confidence in stocks," says Strategic Insight's Avi Nachmany. "But they'll continue to buy bonds for the same reasons they bought them before: There's an insatiable interest in income, and people are still scared."

EBay options show downside bias attract gains (Reuters)

NEW YORK (Reuters) - Options Traders appeared to take a bearish stance on eBay Inc (EBAY.)(O) in advance of its report of earnings after the Bell on Wednesday.

Wall Street analysts expect web trading company to report earnings for the fourth quarter of 47 cents per share, compared to 44 cents a year earlier and 2.49 billion in revenues of $ 2.37 billion, according to Thomson Reuters StarMine.

Investment Research of Schaeffer, the ratio of interest open put-to-call on the stock was 1.10, met with surpassing calls between options would expire within three months. A put option gives the right to sell the shares at a fixed price that an option gives right to purchase.

The report "suggests option players are aligned bearishly enter gains," said Ryan Detrick, senior technical strategist to of Schaeffer, a research firm based in Cincinnati, Ohio options. "This indicates expectations are lowered for the event, which leaves the possibility for a head surprise on good news."

Shares of eBay fell 1 percent to $29.16 in afternoon trading. The stock was approximately 25% a year and up to 1.6% this month, but he has struggled to stay above the $30 level.

"The stock has not exchanged securely above this level since early 2008, it is therefore possible that bearish investors out there depend on this strength to continue," said Steve Claussen, investment Chief Strategist at brokerage online OptionHouse.com in Chicago, on the Web site.

Reflecting the bearish sentiment, a remarkable trade was made on Tuesday when a player of options picked up 15 000 updates strike $26 July for a premium of $1.32 each, according to Caitlin Duffy, strategist options to the interactive brokers group in Connecticut. The move is betting on the stock to fall by more than 18% profitability of $24.68 before end of July.

(Additional reporting by Doris Frankel in Chicago, mounting by Leslie Adler)

Wells, U.S. Bancorp profits up, squeezed margins (Reuters)

CHARLOTTE, Carolina North (Reuters) - Wells Fargo & Co (WFC)(N) and U.S. Bancorp (USB).(N) such low interest rates have been tightening ready profits, but improve the quality of credit helped both banks poster of higher fourth-quarter earnings.

Analysts and investors made NET-based figures on the impact of lower interest rates and a reluctance by businesses to take advantage of their lines of credit.

"It's a mixed bag by watching these banks," said analyst Shannon Stemm of Edward Jones in St. Louis. "It is fresh improving income but is loan demand and interest income still remains weak.

Shares of Wells Fargo Bank no. 4 U.S. by assets, fell 1.4 per $100 in 32.00 in early afternoon trading, while U.S. Bancorp, the fifth U.S. commercial bank, declined 3% to $26.50.

The banking sector performs more lending to consumers and businesses.

U.S. Bancorp said total average loans increased by 2% a year earlier, and Wells Fargo said total of loans has increased by 0.4% in the third quarter.

Analysts and economists have said that an increase in the loan business is a key cog in the continuing economic recovery. But first quarter figures suggests business - everything by removing the new loans - are reluctant to use them.

U.S. Bancorp said companies to the bank credit lines, but were not actively borrowing them.

The use of the commercial line - or the amount borrowed in available credit - money firms fell to 26% in the fourth quarter, a record low and down 30% in the third quarter.

"We look forward to the day use dates," U.S. Bancorp Director General Richard Davis said on a conference call with analysts.

QUALITY OF ASSETS

Analysts said that despite the slow growth ready, banks balance sheets are beginning to show signs of health after three years of crisis and recession.

"Banks are starting a return to normal compensation, Foundation" said Guggenheim Securities LLC analyst Marty Mosby. "Right, quality of assets has now get healthy, and that happens at a much faster pace that I think many of us expect."

Fourth-quarter profit increase in Wells Fargo arises partly release of 850 million in loan loss reserves, as the Bank said its loans problem has continued to shrink. Compromise NET load has decreased by 29% a year earlier.

U.S. Bancorp posted 25 million in loan loss reserves over the period, the company the first such move since 2008.

Citigroup (C.N) also took a great reserve release in the fourth quarter, raising concern among analysts of the quality of its results.

MARGIN PRESSURE

But improving credit did not offset the reduction in net interest margin or receives money from a bank in the interest of loans against what he pays for deposits.

As the Federal Reserve continues to hold low U.S. interest rates, banks have little flexibility on what they require loans and what they pay for deposits.

Heading in 2011, U.S. Bancorp and Wells Fargo said net interest margin would remain stagnant or shrinking.

Said Davis margin net interest of U.S. Bancorp of 3.83 percent which decreased 3.91% in the third quarter continue to contract at the same pace in the first three months of 2011.

A margin of net interest of Wells Fargo also declined, to 4.16% from 4.25% in the third quarter.

The Bank has posted an increase of 21% in the fourth quarter profit at 3.4 billion dollars, or 61 cents a share, meet the expectations of analysts, according to Thomson Reuters I/B/E s /.

U.S. Bancorp posted a jump from 61 percent in net income. Earnings per share of 49 cents bat average estimate of analysts 3 cents.

City of Hudson Bancorp (HCBK).(O) also reported results on Wednesday, beating expectations, but the warning that net interest margins in 2011 may refuse for the fourth quarter levels. Hudson shares sank to 6.8% in afternoon trading.

(Reports by Joe Rauch and Jonathan Spicer, written by Ben Berkowitz and Joe Rauch.) (Editing by Lisa Von Ahn and John Wallace)

2 Non-conventional sources of retirement income (U.S. News & World Report)

You can have access to retirement funds that you are unaware of. I don't mean accounts retirement pension or savings. I am referring to tap into your home equity or sell life insurance, who many people elderly access to. Here is how to best use these unconventional sources of retirement income.

[See 10 keys to Plan retirement ages for.]

Reverse mortgages. Many retirees their homeowners. Home ownership reduces your monthly cost of living, but there is not much in line with the addition of cash flow. If you are owner of your home and need access to equity, there are a few ways that you can enjoy your home equity without having to sell your home and move. One method is to take an equity home line of credit, which requires a good credit score and gives you a small line of credit, but does nothing to improve your cash flow.

Another option is to make a mortgage loan reversed, which is a good way to access the equity in your House still property and be able to live. Unlike other mortgages, regardless which score range that you get credit or your income level. If you're 62 or older and live in a House which is paid, you may qualify for a reverse mortgage.

[See 5 shots of year-end retirement plan.]

A reverse mortgage works almost exactly the opposite of a conventional mortgage. Instead of a monthly payment as you would with a conventional mortgage, you receive money against the value of your home, often in the form of a lump sum payment, monthly payments, line of credit to use as you wish or any combination of these factors. A reverse mortgage loan doesn't have to be paid back until the owner dies, sells the House or moves to a nursing home or installation of the assisted living.

Who can benefit from a reverse mortgage: the benefits of reverse mortgages include flexible payment structures and the ability to use money but you want to. A reverse mortgage could be a useful tool for people who need extra cash a little each month or who need access to a cash lump sum. However, the reverse mortgages can be a little complicated and owners are required to sit in a financial consultation session to participate in a reverse mortgage to ensure that they are appropriate for the owner.

Sell your life insurance policy. Life is good for survivors, but benefit generally from the policyholder. However, you can indeed perhaps to sell your life insurance policy for accessing some of that money now. There is a secondary market for life insurance policies where investors purchase policies of life insurance for seniors for less than the nominal value of the policy. Living institutions offer people the chance of the money on life insurance policy while they are still alive.

[See 10 retirement myths.]

Who can benefit from a life settlement: the people who need a lump sum of money now could benefit from the sale of their investors life insurance policy. However, you should keep in mind that needed you to edit recipients for investors to purchase your policy, so that would not be an option for someone who has of survivors who are based on life insurance settlement for their livelihood. Schools of life also pay less than par value, and the product is taxable.

These non-conventional ways to finance retirement may or may not be appropriate for your needs. If in doubt, reach a professional financial planner to help understand or a reverse mortgage or life settlement is appropriate for your situation.

Ryan guina is a U.S. military veteran, writer and professional in the business world. He blogs on life of cash and military portfolio.

Electrical retail group Kesa lowers profit guidance (AFP)

London (Reuters) - British Kesa Electricals retailer warned Wednesday that annual profits will be at the lower end of expectations of investors due to winter weather conditions and increased competition in key markets.

"Adjusted pre-tax profit (is) currently should be before last year and towards the lower end of market expectations," the group said in a trading update.

Market expectations are currently an annual profit of 98 million and EUR 119 million.

KESA said group sales on a like-for-like basis, the effect of the new floor, surface pickling sank by four per cent between November 1st and January 18, 2011.

The group, whose businesses include retail chains electric Comet in Britain and Darty in France, adverse weather conditions in major markets said had affected sales by approximately two per cent.

"In a context of increased competition, France Darty and other businesses delivered a robust performance, offset by a milder commerce Comet and companies developing," Chief Executive Thierry Falque-Pierrotin said in the statement.

"We remain confident in our strategy and commitment to our plans to implement the Darty concept in all our markets and we have implemented a number of additional measures to improve revenues and reduce costs," he added.

But the Comet would perform poorly this year, partly because of the recent UK Government VAT tax hike.

"Since the introduction of the increase in VAT on 4 January we have so far seen trends sales soften," said Kesa.

"In light of these factors, we expect now that the comet will deliver a loss of small detail for the year".

Stop giving money to the Uncle Sam Extra: 3 tax advice (Motley Fool)

Taxes may not be fun to pay, but they help keep the company running. Still, there is not need more than what you have to pay. Here are some tips to help you save money the next time that the IRS comes knocking.

Don't pay for plastic
Even if you pay your full credit card bills each month, pay plastic not always your best choice – especially when it comes to your tax bill. Pay your taxes with a credit card will help you imbued with a heavy tax to a third party that processes the transaction. Costs can exceed 2%, so if you need $ 5,000 and load, you may be duplicating as many $117.50 in unnecessary costs.

It is generally much cheaper to pay via a debit card or an electronic fund transfer from your bank account. The Federal electronic payment system free tax comes with a recommendation from the IRS. Or mail in a check, the old way.

Stop lending money to the Government
If you get refunds after filing your taxes every year, you are ready without interest of Uncle Sam for the year; your refund is her chance to reimburse you. Why let that money grow for Sam, when he could do it for your?

You can cancel this sad state of affairs with a form W-4 handy, which will be twist taxpayers that retains your employer. If you want to keep more of your money and a smaller refund, claim additional benefits a few. The worksheet that accompanies the form can help you determine the correct number of allowances for you – or get more details in IRS Publication 919. Kiplinger, a practical on-line calculator can help you.

On the other hand, unlike struggling to save money might want to consider reducing the number of quotas. Rental Uncle Sam and your employer save your money for you may not be effective, but it is certainly efficient. When you get this big lump at the end of the year, make sure only you invest immediately!

A few steps you can get a more efficient solution: implement a system automatically via your bank savings or brokerage, where money is regularly and automatically transferred to a savings or investment account.

Don't let the amount free $ 2,000 on the table
A bit of time devoted to research tax available credits and deductions could really pay there available appropriations to cover the adoption expenses related, for example and care for children and dependents. You can even earn a tax credit just to save money.

Government has granted numerous employees with low income or means - as much as $ 2,000 in a "standby credit." Yet according to the recent survey of retirement Transamerica, only 12% of American workers to full-time in households earning less than $50,000 are aware of the advantage. It's a shame of auctions, since $2,000 could make a huge difference to these people.

Here's how it works: if eligible taxpayers make voluntary contributions to retirement accounts 401 (k) s or IRAs, they may receive a credit of up to $1,000 for single filers or $2,000 for married couples.

Tax credits are much more powerful than the deductions. If your tax rate is 25%, a deduction of $1,000 will save you $250 in tax. A $1,000 tax credit will reduce your tax dollar for dollar bill.

We know that these tips make imminent bill from April 15 or more enjoyable. But with a little luck, they could leave you with a little more money to the Bank that you would otherwise.

To learn more and save more:

We Fools can not all hold the same views, but we believe all that taking into account a wide range of ideas we done better investor.

Longtime contributor Selena Maranjian Fool does not own the shares of all companies mentioned in this article. The Motley Fool is Fools expressing some crazy.

EPA, Chrysler working on hybrid engines for minivans (AP)

ANN ARBOR, Michigan - Chrysler and the Environmental Protection Agency are trying to adapt to technology engine, invented by the EPA to improve mileage gas by minibus.

Society and the Government agency said Wednesday they work for hybrid hydraulic system of EPA minivans Chrysler. If this works, the system could stimulate minibus mileage 35 percent to approximately 27 miles per gallon. Currently the Chrysler minivan top gets 20 mpg in the city of handsets and the road.

The agreement was announced as Chrysler and other auto companies seek new technologies to help meet Government fuel strict economy requiring a fleet average of 35.5 miles per gallon by 2016, close to 10 miles per gallon now. Standards could go up to 47 mpg mpg 62 by 2025.

The system, invented by scientists at the EPA laboratory in Ann Arbor, Michigan, is now used in the delivery of the trash trucks and package more than a dozen of Florida and Michigan. 50 Trucks are on the order of manufacturers who have authorized the system. It uses the energy of conventional truck engines and brakes fluid pump in a reservoir under high pressure. Fluid is out and running hydraulic motors that power of the truck, and the conventional engine is activated only when needed to pressurize the reservoir.

"Technology has been very successful for large trucks, unmitigated type", said David Haugen, Director of the EPA laboratory technology development.

Chrysler, which is 10% owned by the U.S. Government because of a rescue of 12.5 billion in 2009, had lower gas mileage fleet of any major manufacturer in 2009 to mpg 19.2.

Venezuela claims he enjoys oil world reserves (AFP)

CARACAS (AFP) - Venezuela exceeded the Saudi Arabia to become the nation with the largest proved reserves of crude oil worldwide to 297 billion barrels, oil Minister Rafael Ramirez said Wednesday.

"At the end of 2010, we had a level of 217 billion barrels of oil, and now we can certify 297 billion barrels at the beginning of this year", said the Minister during a press conference.

Saudi Arabia, long first world producer and exporter of crude oil, has some 266 billion barrels of oil, according to the Organization of the countries exporting oil.

Member of OPEC to Venezuela, first Latin America of crude oil exporting countries stated regularly increase proved oil reserves in recent years, including a 23% increase a year earlier, due largely to the Venezuela oil-rich Orinoco Belt.

Southeast of the Venezuela region saw a boon in domestic and foreign investments in recent years, Caracas is looking to exploit reserves vanished and heavy oil Orinoco Belt.

For years experts believed that it was too expensive to extract and refine vanished and heavy oil in the region. But the increase in world oil - prices currently about 100 dollars per barrel, against $ 20 per barrel during the 1990s, has reignited interest among foreign companies who are committed to tens of billions of dollars in investments.

Last year, some 30 companies from over 20 different countries were operating in the Orinoco Belt a few square kilometers 55,314 (21,360 square miles) oil reserve in the Orinoco region.

But Orinoco oil has been a point of contention in the world of oil.

Last July, Prince Turki al-Faisal, a Chief of intelligence Saudi former claims rejected by President Hugo Chavez, who says Venezuela perhaps more proven reserves of the Saudi Arabia.

"These claims are completely on unproved reserves, so that they are completely hypothetical and, in my view, entirely without merit," prince said at the time.

"Were Saudi Arabia down the path to claim non-proved reserves, is there still no competition," he added, saying that the Kingdom of desert perhaps more 700 billion barrels underground.

Goldman profit slides: bond trading wilts (Reuters)

NEW YORK (Reuters) - Goldman Sachs Group Inc. posted a 53% decrease in favour of the fourth quarter as commercial revenue dropped, dashing hopes that the Wall Street Bank had gone upstream of a difficult debt markets business climate.

Bond trading income including base and currencies, dragged 39 percent for the third quarter as concerns the European sovereign debt and increase yields of U.S. Treasury kept investors away.

"Things were just dead" in December, while "it's that much more active" in January, Chief Financial Officer David Viniar said in a telephone conference.

Profit fell for a third quarter right and income did not estimated decline of the year in banking investment and most of the other business segments. Viniar said backlog of investment bank Goldman business for the third quarter, which can curtail revenues in the current quarter.

Goldman shares fell 3%, on the actions of other banks.

"If Goldman Sachs cannot display performance solid, then good luck to anyone another attempt," said Simon Maughan, an analyst with MF Global in London.

Results plays a year that has tested Goldman Chief Executive Lloyd Blankfein and the reputation of the Bank for the smartest to Wall Street bankers.

Goldman has been criticized for activities such as management of an offer by company social networking Facebook Inc. and its marketing of a mortgage-linked which led him to pay $ 550 million to settle allegations of civil fraud from regulators in July.

Nevertheless, the company said that pay on close to 40 per cent of the income for the year in the form of compensation and benefits, a higher percentage than in 2009, although 2010 profit fell 37% and income decreased by 13%.

Compensation per employee fell by 14% to approximately $431,000.

DIFFICULT ENVIRONMENT

Quarterly net income after payment of dividends to preferred shares fell to 2.23 billion dollars, or $3.79 per share, of 4.79 billion dollars, or $8.20 per share, a year earlier. Net income has decreased 10% $ 8.64 billion.

Excluding one-time items, profit was $4.11 per share, according to Thomson Reuters I/B/E/S.On this basis, analysts expected income average of $3.76 per share on revenue of $ 9 billion.

"This is a very difficult environment," said Keith Davis, an analyst of Farr, Miller & Washington, who holds shares in Goldman. "Absence of what we saw of JPMorgan, Goldman results not would not have been a surprise." "JPMorgan raised the bar".

Citigroup Inc. and JPMorgan Chase & Co reported in the past week decreased from 58% and 8%, respectively, in fixed income securities quarterly income.

The results prompted questions about how much money banks can make bond trading in 2011. Fixed income accounted for approximately half of the income before the credit crunch, but it is supposed to account for less in the future.

Blankfein, said in a statement the Bank is "see signs of growth and economic activity" in 2011.

Viniar has refused to discuss the relationship of Goldman with Facebook, including his decision this week to limit investment private Facebook stock non-U.S. investors.

PAYMENT RATIO TO STUDENT

Bank of quarterly investment income fell 10 per cent from one year to 1.51 billion, while Goldman earned on Morgan Stanley's Crown as the top of mergers and acquisitions advice.

Goldman made more money to trade for its own account. Income investing and lending increased by 11% in the third quarter, represents 23% of the total net revenue.

Viniar said new regulations may limit some of the investment and bank lending.

The Bank said its average value at risk, or the amount that he could lose agenda for trade with a confidence level of 95% 100, 120 million, 1 percent in the third quarter and 34% less than a year earlier.

For all 2010 Goldman profit after dividends to preferred shares fell to 7.71 billion dollars, or $13.18 per share of 12.19 billion dollars, or $ 22.13. Net income fell to 39.16 45.17 billion billion.

Long known for generous paid places employees, said Goldman have benefits and total pay 5 per cent to 15.38 billion in 2010.

As a percentage of income, compensation and benefits totaled 39.3% in 2010, 35.8% in 2009, but more than 6 percentage points lower than the average of the last decade.

Goldman finished 2010 with 35,700 employees, 32 500 a year earlier, said Viniar staffing could grow by a percentage to be mid - to high - sales in 2011.

In afternoon trading, Goldman shares were $5.17 $169.51 at the New York Stock Exchange.

In spite of the weak, Goldman shares are much better than those of many rivals.

Its shares are back to levels they were when the financial crisis exploded in September 2008.

Shares of Morgan Stanley and Bank of America Corp., including the report of the results later this week, also fell on Wednesday. The Standard & Poor Financials Index fell by 1.7%.

(Additional reporting by Maria Aspan, Ben Berkowitz, Christian Plumb, Jonathan Spicer and Dan Wilchins in New York and Steven Slater in London; editing by John Wallace, Martin Howell)

Swiss banker who turned to WikiLeaks admits errors (AP)

ZURICH - a Swiss banker who cheats claims handed WikiLeaks rich tax details acknowledged Wednesday he did errors in its effort to expose the world offshore tax evasion.

Minutes before, it was recognized guilty of coercion and break Switzerland strict banking secrecy laws, Rudolf Elmer said his campaign of nine years against the former employer Bank Julius Baer is marked by faux pas.

"I made big errors I confess that," he told journalists. "I would not say I'm a hero, but not that I am a traitor."

Zurich prosecutors argued that Elmer stole data client after from his employment at branch of Cayman Islands of Julius Baer and then tried to extort money from bank based in Switzerland and its executives. Elmer, 55, says that he was persecuted by the Bank.

"I would not say it was revenge, but I defended myself", he told journalists. "It's human nature."

Elmer said that he attempted to expose a generalized system of tax evasion by wealthy businessmen and politicians.

Sebastian Aeppli of the regional court of Zurich has fined Elmer more than 6 000 CHF ($6,260), payable if it violates again in two years. But the judge dismissed the application for continuation of Elmer eight months imprisonment. The decision may be appealed.

The case has generated strong interest abroad because of the link to WikiLeaks and Switzerland, where the Bank client privacy has a special place in the national psyche.

Several banks in Switzerland and the Liechtenstein suffered embarrassing data leaks in recent years — some in the hands of disgruntled employees. Foreign tax authorities seized on pressure Switzerland leaks in the relaxation of its rules of banking secrecy.

In his court appearance Wednesday, Elmer admitted sending threatening messages to certain bank officials, but he insisted that he had made after the Bank was dismissed from his post as chief operating officer in the Cayman Islands and then intimidated him.

He has refused to issue a threat of bomb against the Bank, but admitted threatening to send information about offshore customers exclusive taxing authorities in Switzerland, Great Britain and the United States.

Prosecutors acknowledged that information had allowed authorities to launch at least one case of tax evasion.

Elmer was drawn in 2002 after refusing to take a lie detector test on the Cayman Islands, where he worked for the Bank for eight years. Prosecutors claimed that he spent the next years moving between the Switzerland, the Isle of Man, Germany, Austria and Maurice. Sometimes is blamed for having offered to sell the return data theft at Julius Baer, sometimes it threatened to denounce what he describes as "contrary to ethics or even criminal behavior" by senior management of the Bank.

«More professionally, I rose at Julius Baer, I became more involved in illegal activities who needs me,» he told the Court.

The Bank denied wrongdoing.

Anti-corruption experts have questioned whether the Elmer isn't individual anger simply attempts to interfere with his former employer.

"Elmer tried to pose as an informant for a long time", said Daniel Thelesklaf, Director of the Basel Institute on governance, a think tank.

Yet the case helped stimulate the discussion in Switzerland why country banks set up branches on the Caribbean Islands otherwise help clients exploit weaknesses of the tax, said Thelesklaf.

Monday, Elmer hosted a spectacular ceremony in London, where he provided more data on two CD WikiLeaks founder Julian Assange, stating the names of disks contained 2,000 rich account holders.

"WikiLeaks should very carefully examine the CD because they cannot afford false documents online," said Thelesklaf.

Prosecutors argued Wednesday that London WikiLeaks of Elmer trip is an example of its persistent efforts to illegally distribute confidential information.

At the beginning of 2008, a US judge closed WikiLeaks two weeks after a complaint by Julius Baer on Elmer, marking the only time where spill secret website was forced offline for a considerable time.

U.S. and China reach 45 billion in export deals (Reuters)

WASHINGTON (Reuters) - the United States and China have agreed on is export to 45 billion including a major contract with Boeing (BA).(N), visit the White House, said Wednesday at the formal beginning of Chinese President Hu Jintao State.

Agreements included final approval from the China of a contract of $ 19 billion to buy Boeing aircraft 200 for delivery between 2011 and 2013, of which the American authorities believes would support 100,000 U.S. jobs.

"We value of support from China for his confidence in the Boeing Company, and our products", said Jim Albaugh, CEO of Boeing Commercial Airplanes. "With the outstanding support provided by the Government of the United States, this transaction is a win-win for the Boeing-China partnership approaches its 40th anniversary."

Other transactions involved Honeywell (Hon.)(N), Caterpillar (CAT.)(N) and Westinghouse Electric, a unit of Japan Toshiba Corp (6502.T).

Chinese officials said the administration of the Obama Chinese companies had signed with 70 contracts 25 billion in U.S. exports from 12 States, said U.S. authorities.

In total, Boeing and other transactions will support approximately 235,000 American jobs, they said.

Offers appear at least partly targeted to respond to criticism from U.S. that China does not play rules acquires economic power and uses a number of policies to maintain a large trade surplus with the United States.

Although China is one of the export markets fastest growing for the United States, which is overshadowed by the imports from China, which reached approximately 370 billion in 2010.

The U.S. trade deficit with China was about 275 billion last year, which would be a new record.

The official of the U.S., who briefed reporters on condition of anonymity, said there is progress on several key areas on trade, including intellectual property, indigenous innovation and public procurement.

"FALSE AIRBUS".

19 Billion dollars for Boeing would be larger than a deal of 15.6 billion for Airbus (EAD).(PA) to sell planes 180 budget Indian carrier IndiGo. The deal, announced on January 11, has been hailed as jet agenda more important in the history of aviation.

"If they have false Airbus," said Alex Hamilton, CEO of EarlyBirdCapital.

"Obviously it y a huge pent-up China demand." ... This order underscores not only that, but it also highlights the health of the global cycle in the wake of the Airbus order. »

Economist Derek Scissors of the think tank Heritage Foundation said it was less enthusiastic about the company focused on the Summit.

"So far, the advertised offers mean very little." Big Boeing deal is just a package summary of U.S. plan Chinese exports that have taken place anyway, "he says.

U.S. authorities have also said that they have made progress on a number of policy with China issues, including concerns about "indigenous innovation" policies which are complained of American firms would impose them on the transfer of technology to the Chinese participate in large government contracts public China.

On this point, China has agreed to "disassociate policies from innovation of its Government procurement preferences" and also repeated a non?discriminatory promise against foreign goods or services based on where their IP content is developed or maintained, White House, said in a worksheet.

However, speak in the last two weeks to reopen China of U.S. beef market appear to have failed.

China has slapped borders on U.S. beef in 2003 after the first case of mad cow disease was found in the United States and was slower than many other countries to reopen its market.

In addition, manufacturers of software in the United States are disappointed that China was not agree for more vigorous verification procedures to back up his promise to fight copyright piracy by increasing the use of legal software.

U.S. industry considers it losses of billions of dollars in sales in China each year due to theft.

"What we have in mind by audits is matching software used against what they actually have the authority to use in order to understand what is used with a license and without a licence," said Emery Simon of the Business Software Alliance, which represents Microsoft (MSFT).(O) and other U.S. companies.

It is also disappointing that no Chinese purchases of U.S. software have been announced as part of the visit of Hu, he said.

"We have seen no evidence of an increase in sales in these past weeks or months", said Simon.

(Reporting by Caren Bohan and Doug Palmer in Washington and Kyle Peterson in Chicago.) (Editing by Will Dunham)

Portugal is in high demand, reduce the cost of sale of debt (AP)

Lisbon, Portugal - Portugal highlighted raised debt euro750 million ($1 billion) in a sale of bonds, on Wednesday, with a lower rate of interest and demand reflecting an easing of tension on the financial difficulties of the country.

Results boosted confidence in markets, although many analysts expect Portugal to finally get a rescue plan as the Greece and the Ireland, despite the insistence of the Government, that he did not need help.

Debt agency said that the yield on the invoices of 12 months is 4.03 percent, down sharply from 5.28% on the same bill last month. The application was three times the amount of the offer.

The country has experienced no difficulty in raising funds for the moment, despite the concern of its debt burden and lean growth. Portugal must raise euro20 billion financial markets this year.

The fall in the cost of the financing of the Portugal is another good news for the minority Government, which is scrambling to finance the country on an even keel in the middle of nervousness on the financial strength of the largest euro area.

Secretary of State for cash, Carlos Costa Pina, stated that the sale has shown that the Portugal efforts bear fruit.

"This is an encouraging signal for us because it reflects the efforts of the Government towards budgetary consolidation are recognized," he told journalists.

European leaders are willing to avoid contagion of the market, particularly in much larger of Spain, which would be much more expensive to save.

Nations euro 17 meeting in Brussels earlier this week, the Ministers discussed stimulate the size and region bailout Fund powers as block attempts to reach a solution more complete in the debt crisis. Final decisions are expected in the coming months.

Portugal last week raised euro1.25 billion in bonds maturing in 2014 to 2020. Performance of binding of 2020 a dove 6.716% 6.806% the last time that the Government has tapped investors in November, raising hopes, is to restore the confidence of investors with its program of austerity of pay cuts and tax hikes.

Yet, the result of the sale of bill on Wednesday highlighted how the financial difficulties of the Portugal expanded last year — 12 months ago, the rate of interest on its invoices of 12 months was 0.93%.

"This is no a source of great celebration, but the fact that the State has been able to place the amount he wanted and that it is still the market demand provides a space for breath before the next phase of crisis, Filipe Silva, a manager of Banco Carregosa, debt has.".

Moody's Investor Services has warned that it may cut its A1 rating on the Portugal, while ratings Services Standard & Poor is also considering a downgrade.

Investors are worried about prospects for growth, Portugal with most forecasts predict that the economy slide into a recession this year.

European stocks higher after the sale of bond of Portugal (AFP)

London (AFP) - European stock markets were higher Wednesday as zone euro debt worries were soothed by auction link successful record economic growth for the Germany and the Portugal, said analysts.

Index FTSE 100 in London main actions increased by 0.33% to 6,034.04 points in midday trading.

DAX 30 Frankfurt rallied 1.23% at 7,027.02 points and Paris CAC 40 has acquired from 1.25% to 3,910.09.

The Lisbon market was 0.86% while Madrid has climbed to more than 3.46%, driven by an increase in the banks of the shares.

Portugal paid lowest on long-term debt rates of 1.25 billion euros ($1.62 billion) Wednesday it raised in a test critical for its credibility and the wider area in euro capital markets.

The DMU Portuguese, said the performance or the rate of return for investors in bonds coming due June 2020 descended to 6.716%, passing from 6.806% during a similar sale in November.

However, bonds coming due October 2014 offering also, performance is passed to 5.396%, until suddenly 4.041 p paid November — suggesting that short-term Outlook was more guarded.

"The Portuguese auction was well received," RIA Capital Markets analyst Nick Stamenkovi? told AFP.

"Not only did Portuguese treasure to draw the maximum provided, but performance was below November." This should encourage a gathering of relief for the Portuguese sovereign bonds. »

EU diplomats say that Portugal comes under strong pressure from several European countries to accept external aid in the middle of the concern that a debt crisis fresh euro area may spread in Spain, a much larger economy.

For its part, Spain also provides its first issues long term of the year on Thursday, to sensitize the two to three billion euros over 5 years bonds.

The great fear is that, if the bond rates go too high, the Spain may be forced to seek an international rescue - a crisis with global implications that would dwarf the bail out the Irish and Greek and possible similar to the Portugal action.

Debt auction Wednesday marked first foray of the Portugal in bond, since the Ireland was forced to seek a November EU - IMF rescue plan.

Prior to the auction on Wednesday, the dataset for the great economy of Europe in Germany showed German growth hit a record 3.6% last year.

Germany incurred by 4.7% in 2009 in its worst post-war recession of bounce to show the strongest growth since its reunification in October 1990.

We've grown twice the average of the European Union"in 2010, said Rainer Bruederle economy Minister.

Asian markets stock edged upward Wednesday, taking a cautious approach to the debt crisis in Europe, but with the rise in the prices of products supporting resource stocks.

Actions were usually stimulated by gains on Wall Street and the Japan announced that it will buy bonds of a eurozone Rescue Fund to help fund the bailout of the Ireland and support the block of debt-hit, said analysts.

U.S. stocks posted gains moderate Tuesday, supported by a positive start to the season of quarterly earnings.

Two fuel "ambitious shopper" ' 11 luxury rebound: frames (Reuters)

NEW YORK (Reuters) - rally continues to Wall Street and financial improvement in rich America, the hot streak of luxury spending will keep in 2011, and least are well prepared to join the party heels, executives said at the top of the detail page.

Rich shoppers have recovered much more rapidly into recession as the middle and lower-income consumers are hitting stores en masse to snap sweaters, designer dresses and diamond necklaces in stores such as Saks Fifth Avenue and Neiman Marcus.

Executives expect sales of luxury in the United States to continue to improve as the economy recovery Rus to middle class particularly as so-called "ambitious" — consumers shoppers with tastes of fantasy, but cannot afford more expensive - more confident elements.

"The shopper ambitious is coming back, because they love brands, but they still put their feet in the water," Saks Inc. (SKS)(N) Executive Director Steve Sadove said.

French luxury provider Hermes (HRMS).(PA) and LVMH (LVMH.)(PA) were among the first companies after the financial crisis has fluctuated to see sales soar as the ultra rich spoil themselves again.

Meanwhile, "affordable luxury" businesses such as Polo Ralph Lauren (RL)(N) and manufacturer of leather Coach Inc. (COH).(N) also benefited as the upper middle class took over spending. Polo Ralph Lauren shares reached a record level in December.

The rally in the stock market in 2010, which saw the Dow Jones Industrial Average increased by 11 percent, helped average customers woo road to stores.

"Many lost heritage has been restored," Ira Kalish, Director of the global economy at Deloitte, told Reuters.

Chain stores such as Saks suffered in some dramatic decline in the economic crisis. But she and her peers in rebounds.

In December, sales in stores open at least Saks one year, or same store sales increased 11.8%. Compete with operators store Nordstrom Inc. (JWN.)(N) and Neiman Marcus Group (NMRCUS.)(UL) reported strong earnings.

"It's a different world than a year ago," the Saks Associates told Reuters on the sidelines of the Conference of the National Federation of sale detail. "Consumers are related to how they feel about the stock market and markets are held up well.

Range top retailers have the additional advantage of restoring a customer willing and able to pay full price, unlike strings justify such as J.C. Penney Co (PCE.)(N) and Liz Claiborne (LIZ)(N) lucky Brands stores who still have to look at their prices.

"When they see something they like, price isn't a problem," said Claudio Del Vecchio, CEO of Brooks Brothers parent retail brand Alliance.

Even though many buyers of middle class are still taking care, they are ready to spend a little more on quality, says Inc. (M.N), Chief Executive Terry Lundgren of Macy.

Top chain of high-end Bloomingdale's Macy, which represents approximately 10% of the company's sales has been enjoying gains than other top high-end stores.

"People will buy expensive leaves or combinations because they last longer," said Lundgren.

Luxury spending boom also boosted Jewellers. Earnings of high percentage double-digit sales of jewellery range Tiffany & Co (TIF).(N) and Signet Jewelers Ltd. (GIS).(N) string of Jared for the holiday season has prompted two companies this week to raise prospects of profit.

Same difficulty Zale strong mid range holiday sales.

While U.S. luxury goods providers are waiting for the U.S. market recover more, many have turned to China for growth, including emerging middle class do not seem to get enough of Western products such as Hermes scarves, handbags Louis Vuitton and coach (COH).(N) portfolios.

A report by the Boston Consulting Group last month found that China would exceed the United States as the largest global market of luxury within five to seven years. Tiffany reported in Asia, to the exclusion of the Japan, holiday sales rose 23% during the holiday season of 2010.

At home, unemployment declined much faster for the educated Americans and rich, who happily spend again, which means "ambitious" luxury spending still have a way to go.

"Net income high, high net worth households will pave the way," said Analytics Chief Economist of Moody Mark Zandi.

(Reporting by Phil Wahba;) (Editing by Bernard Orr)

All eyes on the Spanish bond auctions in the middle of the misfortunes of debt (AP)

MADRID - Spain hopes to raise up to euro3 billion ($3.9 billion) Thursday in the auction of the debt, a test key to confidence of investors, the day after a sale of binding the Portugal successfully facilitated market pressures somewhat.

Treasury plans auctions between euro2 billion dollars and euro3 billion in five-year bonds Thursday. Portugal, which many fear could be the next online need a bailout after the Greece and the Ireland plan has seen good demand for its sale of debt on Wedneday.

Main stock market index for the Spain closed to 5 per cent more high Wednesday evening and is an increase of nearly 1% Thursday morning as markets await the results of the sale auction Spanish liaison.

The Government insists that Portugal or need of a rescue plan thanks to reforms and austerity measures aimed at consolidating their public finances sick.

Elena Salgado, Spanish Finance Minister stated that the Portuguese auction left the market a little more stable bond "so we are very confident." She spoke in an interview with CNBC Thursday.

The Spanish Government said the country isn't like the Greece or the Ireland, noting its overall level of debt as a percentage of GDP is 20 percentage points below the EU average.

Still, investors fear that the contagion of the European debt crisis will raise the Spain borrowing costs. A Madrid rescue plan could be devastating for the euro area, because the Spain approximately five times larger than the Greece or the Ireland and would test the financial strength of the block.

U.S. criticized on regulation of financial services Chrysler (Reuters)

WASHINGTON (Reuters) - U.S. Treasury may not have fully approved the settlement of his interest in Chrysler financial services last year and not received back strong enough for taxpayers, a watchdog of rescue said in a report Thursday.

The agreement more clearly illustrated a broader bipartisan Congressional Oversight Panel conclusion: that the administration of the Obama may be too loving scenario politically attractive rapidly cut its participation in the car company, instead of patiently manage the interests of the taxpayer.

"The efforts of the Treasury have in some cases lacked transparency and accountability," said former Delaware Senator Ted Kaufman, who directed last report on the automotive sector.

Kaufman said his group including administration is faced with difficult decisions in orchestrating their rehabilitation and bankruptcy. Despite criticism, the Panel said in the report that government intervention was ambitious and corporations now "appear to be on a promising path."

However, he says taxpayers will probably lose billion public-now GM and Treasury may have "money left on the table" in its dealings with the company of private equity Cerberus Capital Management on Chrysler, consumer financial services unique financing arm the automaker.

Treasury has recovered about half of the 50 billion extended to GM in Exchange and approximately $ 2.2 billion to $ 12 billion given to Chrysler in exchange for an interest at 10 per cent of nearly 61% of the company restructured.

Treasury assumes that 40% of the fairness of Chrysler financial services as part of a loan of pre-bankruptcy of 3.5 billion in January 2009 parent ready unit, Chrysler Holding, which belonged to the time by Cerberus.

Treasury moved to 1.9 billion – a loss of $ 1.6 billion loan - in May 2010, transfer workset to Cerberus, which becomes the sole owner.

Cerberus then agreed to sell the company funding of $ 6.3 billion to the Toronto-Dominion Bank (TD).(At) in December, raising eyebrows on the manipulation of the Treasury of the colony.

The Committee found that officials of the Treasury Board apparently performed "" limited evaluation diligence, focusing on the merits of the offer from Cerberus,"says the report.

Conseil du Trésor, the expert group has declared, provided that financial services Chrysler could be returned downwards, which would limit its value and noted, at the time of colonization, the price paid by Cerberus was correct.

Financial services Chrysler, however, continued to invest in his business to find a strategic partner in TD Bank.

Treasury has challenged the finding may not have fully reviewed the colony of Chrysler financial services saying: he spent several months due diligence and hired an independent financial adviser to help the assessment and verification for other potential buyers.

The Panel was appointed by Congress to examine subsidies under the Troubled Asset Relief Program. General Motors Co (GM.)(N) and Chrysler, now under the control of Fiat Spa Italian management (FIA).(MI), received assistance rescue and the bankruptcy of Treasury in 2009.

Ron Bloom, head of administration on the restructuring of the auto, said this week that prevented rescue plan widespread economic hardship in Detroit.

He also stated that the Treasury Board moves responsibly leave the company and that swings to GM and Chrysler have provided "concrete statements remarkably quickly."

Resurgence of Chrysler, says, "surprised almost everyone."

(Reported by John Crawley;) (Editing by Richard Chang)

Stock index future dip; Intel earns eyed (Reuters)

NEW YORK (Reuters) - U.S. stock index future pointed out an open slightly lower on Wall Street Thursday, with futures for the S & P 500 down 0.15%, Dow Jones future fell by 0.02% and Nasdaq 100 future down 0.03% at 1: 46 pm EST.

* Intel Corp (INTC.)(O) is to report quarterly results Thursday then that economic data include weekly claims without a job, the number of international trade in November and December producer prices.

* Global shipments of personal computers slipped only slightly in the fourth quarter, a pair of trackers in the industry, said Wednesday, injured by demand for holidays low consumption and competition from Apple (AAPL).(O) Tablet iPad.

* U.S. focus on Interior funds found share repurchases of 4.229 billion the week that ended January 5, net flow liked money in three months, the investment company Institute data showed on Wednesday.

* Extended oil gains Thursday to hold less $92 a barrel, application supported by signs more after U.S. crude oil inventories fell more than expected and a cold wave swept across northeast of the United States, the largest in the area of heating oil market.

* Soft products were also in the spotlight, bought Chicago corn up to 1% while soy gains extended, with both markets climbing at their most high in almost 2-1/2 years, propelled by a reduction in the global supply of grains and oilseeds forecasts by the surprisingly steep Bush.

* European stocks decreased by 0.4% in trade from morning following a two-day gathering brisk, as investors await auction of the Spain key binding and Italy, as well as the decisions of interest rates and of feedback from the Bank of England and European Central Bank.

* U.S. stocks ended solidly more Wednesday after that European debt concerns eased and has attracted a large advance, led by banks and commodity-related actions.

* The Dow Jones industrial average (.)(DJI) has been 83.48 points, or 0.72 percent, to 11,755.36. The Standard & Poor 500 Index (.)(SPX) was 11.47 points or 0.90% to 1,285.95. Nasdaq Composite Index (.)(IXIC) was SF points, or 0.75%, to 2,737.33.

(Reporting by Blaise Robinson.) (Editing by Mike Nesbit)

Sneaky new retirement costs 10 (U.S. News & World Report)

Many people think that they will be able to live on less money in retirement. Some people say that they need only to 70-80% of their earnings home after leaving their employment. You may have to less expenses of travel, no more retirement contributions and mortgage payments and theoretically more need for a second car. But not all costs to descend.

[See 10 keys to Plan retirement ages for.]

PAS for all couples want to give a second car. When the husband is to play golf or the wife is out shopping or vice versa, the other spouse may go elsewhere. And if you have not been diligent to repay your mortgage, you could not free debt retirement. For many people, retirement spending soars, not down. Here are 10 fees that could stealthily on you at retirement.

Live longer than expected. You could live longer than you originally planned. And it's a good thing. But the more you live, your assets will need to last. Make sure that you are a bit conservative in your retirement longevity of estimates, because you do not want to celebrate your 100th birthday with a pension plan which was not living up to 95.

Moving costs. With jobs scarce, your children and grandchildren may move in different States or the country to find work. If the family life is an essential part of your pension plan, this may mean moving and absorbing the costs that go along with relocation.

Gifts or financial assistance for the children. Don't automatically offer money to members of the family and would do if you are financially. But as it matures, and your family increases, the number of people you want to offer gifts to increases. When is your anniversary grandson or nephew graduates, are happy moments when you want to chip.

[See 9 ways to save more money for retirement.]

The increase in the prices of health insurance. The fact that you are getting older means higher health costs. Just need to take over only drugs mean more money spent on your health. See these ways to save on insurance and, most importantly, be ready.

Travel. With more time on your hands, you can go to some of the places you've always wanted to go. Holiday in Italy, what you've put off the coast 20 years may seem like a good idea, but make sure you have this in your budget.

Long term care. If you go to a retirement home or planning comes to hire help, you will be eventually need someone to help take care of you.

Maintenance of your home. I strongly encourage retirees to downsize for financial reasons only. However, there will come a time when you are able or willing to climb up to the roof to replace broken tiles. You can love gardening, but mow your lawn a wet Saturday might not be high on your priority list.

An increase in taxes. However, it is likely that tax cuts are extended, there comes a time in the near future where we can put no longer offshore raise taxes to cover the enormous deficit in our country. Wait less learned and high taxation rates.

[See 5 reasons to work in retirement]

Home repairs. Like you, your home is aging too and maintenance bills will gradually increase over time.

Inflation. Retirement planners are getting better at including inflation in the calculation of retirement. But, in reality, nobody knows what inflation will be in the future. Being a millionaire retreat would have been super, 20 years ago and it is still good now, but who knows how long $ 1,000,000 lasts 50 years.

David ning runs MoneyNing, a site of personal finance to help others to change their habits to a brighter financial future. He suggests that everyone to sign up for an online savings account get more of our hard earned money.

FED sees a little brighter prospects for jobs (Reuters)

WASHINGTON (Reuters) - battered U.S. job market may finally recover, according to a report of the Federal Reserve only modestly in better conditions of work across the country.

Beige Book of the EDF, based on anecdotal reports of the regional directorates the Bank business contacts painted an increasingly more lively, if prudent, image.

The findings are consistent with a recent resurgence of American economic data which prompted some economists into their forecasts of growth in the first semester 2011 of beef.

"All district reports indicated that employment levels are increasing in at least in some sectors, usually by a modest amount," said the Fed. Manufacturing seems to be.

Again, warn was still common in many businesses and the U.S. housing sector remains in a rut, the Fed said.

MORTGAGE APPLICATIONS, IMPORT PRICES UP

The latest data offered some modest encouragement on this front, with U.S. home mortgage applications rise as recent high rates of loan facilities.

The Mortgage Bankers Association said its seasonally mortgage activity index increased 2.2% week last at its highest level in about a month.

It was abandoned on a lull in influential refinancing activity that gives us treasuries rose at the end of 2010.

The EDF report also chronicled pricing pressures increased for businesses, but little evidence that these have been sent to consumers.

These conclusions echoed the pricing data import, which rose 1.1 percent in December, following an increase of 1.5% revised in November. Prices were 4.8 per cent last year, according to the Ministry of labour.

Price of imports of oil reached 3.9% in December, non-petroleum costs increased by only 0.4%.

Export prices advanced 0.7% after a gain of 1.5% in November. They increased by 6.5% in 2010, the largest gain of records dating back to 1983 and almost double the rise in 2009.

An environment of low inflation in the United States allowed the Federal Reserve maintain a very loose monetary policy, but the recent surge global energy and commodity prices has raised concerns about cost pressures.

One of the reasons grand prix tame growth were the weakness in the housing market including some economists worry will be a prolonged period of recovery.

The U.S. economy increased by 2.6% in the third quarter, a level considered too meek to put a significant dent in 9.4% unemployment rate the nation.

In this context, the Fed announced in November that it would buy $ 600 billion more in bonds over a period of eight months in support of recovery by keeping the lower long-term borrowing costs.

Market interest rates have increased substantially since then, despite the purchases, although that makers argued that they might even have increased more without action by the Fed.

Improving the conditions in the Beige Book report strengthens case made by some officials from the Fed and out of economists, that the last set of link-purchase may not be necessary.

Fed Chairman, Ben Bernanke, however, argued that economy runs far below its full potential it still need help of the monetary authorities. The Central Bank cited employment conditions low and very low inflation readings to justify its actions.

(Additional reporting by Al Yoon in New York.) (Editing by Neil Stempleman)

Target automakers China inland to sustain growth (AFP)

SHANGHAI (AFP)--builders motor, after having conquered the coast of China, have now developed their views on the inside of the vast country as they bid to expand their phenomenal growth in the largest market of the automobile in the world, say analysts.

China has seen a decade of growth in sales annual almost nonstop for 30% or more as income increases, fueled by the fast-growing economy levels has stimulated a surge in purchases of the private car, from large cities on the shores of the nation.

2010 China auto sales increased over 32 per cent to 18.06 million units, due to a market banner top by 2009, the country has surpassed the United States as the world.

But sales growth is widely expected to fall that half or less in 2011, after China late last year by removing subsidies on small-engine cars that had helped to zoom past the U.S. market.

Reflecting concerns that the days of unrestrained car purchase can be completed, the Beijing city authorities also unveiled new measures which will substantially reduce the number of new car registrations in the capital city congested and polluted.

Nationwide sales could slow down about 15% this year, but the second tier cities could provide an avenue for growth, said Klaus Paur, responsible for a greater China at Synovate Motoresearch automotive research.

"We still have a very strong pent-up demand in the cities of low-level," Paur told AFP, referring to the smaller inland towns, although less known abroad are tens of millions of people more to purchase power.

"In the provinces of the Interior in particular, a large number of households get above the threshold of being able to afford a car for the first time." Still me strong growth despite the fact that subsidies we missed, "he says.

Companies such as Nissan and General Motors - the market leader with a record of 2.35 million vehicles sold in China in 2010 - launched cheaper brands to consumers in small towns, he said.

GM Baojun, a new affordable passenger vehicle produces with Shanghai Automotive Industry Corporation Group and Wuling Motors partners is due to the sale at the beginning of this year thanks to a new dedicated dealer network.

Compact Nissan gait is aimed directly at the emerging middle class in small cities of China, has been sales since its debut last year.

Affiliated with the Government of China Association of automobile manufacturers has forecast sales nationally and production to grow at a pace-s 2011 between 10 and 15 per cent.

J.D. Power and Associates, meanwhile, is expected to "a more moderate" 10-11 percent growth this year as the impact of the stimulus incentives porter, said Jenny Gu, an analyst based in Shanghai enterprise.

Lower-tier cities are becoming increasingly important as Beijing, Shanghai and other cities from their point of saturation of demand, she said.

First time buyers seeking economic or family cars will provide 90 per cent of demand in small towns, while larger cities will see more buyers second acquisition of luxury cars and SUVs, she said.

New registrations of plate Beijing slashing should not have a major impact on the total sales of China than the capital accounts as three to four percent of domestic sales.

But it could have an effect, if other cities facing impasse crippling and central Government pressure to reduce air pollution are taking similar steps.

Gu said Beijing "is an example for other cities who suffer traffic jams or other problems caused by high vehicle population".

This year will be an opportunity for municipal governments improve systems of dealing with the growth of self and for manufacturers to adjust after two years of extraordinary growth Highway said Shen Jun, Roland Berger consulting analyst.

Volkswagen Group China said it will begin its most important ever investment in the country in 2011, pouring of 10.6 billion euros ($13.7 billion) over four years into plant expansion and development of new products.

That can slow growth, sales of new cars will remain huge, Shen said, adding that "15 percent did a few" for growth when the size of the China market is considered.

"Base is very high," said Shen.

World Bank: growth of rich countries lags need for jobs (Reuters)

WASHINGTON (Reuters) - economic growth in the richer countries is still too slow to create enough jobs for tens of millions of people who have lost their during the worst global recession since the second world war, the World Bank said Wednesday.

In a report detailing its prospects for 2011, the multilateral lender provides that the world economy would expand 3.3% this year, softer than the observed expansion of 3.9% in 2010.

Growth in developing countries is far exceeding the growth in mature economies. The World Bank expects growth in emerging economies by 6 per cent in 2011, lower than the rate of 7 percent from last year. Rich countries, however, will spend only 2.4%, down from 2.8% for 2010.

"Recovery in many high-income countries was not strong enough to have key entering the high rate of unemployment in the ability of reserve, said the report."

In the United States, the largest economy in the world, is a good example. Economy is out of its worst recession in generations in summer 2009. But 2.6% on the latest estimates, growth has been too soft to put a significant dent in stubbornly high unemployment - now at 9.4%.

The World Bank provides the U.S. economy will increase by 2.8% in 2011, in large part to a median forecast of 2.7 per cent in the private sector economists Reuters survey.

In Europe, recovery has been hampered by persistent concerns over countries highly indebted as the Greece and Portugal, which have kept the high borrowing costs and leads to serious disruption of the market.

Eurozone growth should slow down 1.4 percent this year by 1.7% in 2010, said the World Bank. The report cited the collapse of debt in the continent as a significant threat to the global recovery.

Given a context of uncertainty, monetary authorities on both sides of the Atlantic have adopted a policy of low interest rates, which World Bank criticized rising exchange rates in the developing world.

"The influx of capital in some middle-income countries have placed pressure undue and potentially damaging upward on the currency," said the World Bank.

The US Federal Reserve, in particular, was the subject intense critical of officials in emerging economies to its policy of purchasing Government bonds to cut rates in the long term.

The American Central Bank argues he must concentrate on the domestic economy, saying that other countries have their own ways of dealing with an increase of capital.

A number of countries have adopted measures such as tariffs and the capital controls to stem the influx, which some fear could quickly reverse if travel conditions.

(Pedro Nicolaci reports da Costa.) (Editing by Leslie Adler)

Panel: Sale of GM stock can trim recovery of the taxpayer (AP)

WASHINGTON - in selling a block its shares of General Motors Co. for $33 - a price well below "cost-effectiveness" - the Government reduces chances of taxpayers fully recover their investment of $ 50 billion in giant of the automobile, a new report by watchdog said Congress.

The Department of the Treasury earned a "major recovery" assistance from the taxpayer, $ 13.5 billion, by selling a piece of its stock of GM in November, Congressional Oversight Panel said in a report released Thursday. And the rescue plan of 85 billion in GM, Chrysler and auto lender GMAC - now known as financial ally - seems to be wearing their "on the road to financial stability," said the report.

But the companies still face uncertain future taxpayers remains at risk and there are concerns about the opening of the Government in the unprecedented rescue package said the report.

Without the rescue of Bush and Obama administrations from December 2008, GM, Chrysler and GMAC reportedly the financial abyss, says the report. Their failure would be crushing blow to the economy.

The administration of the Obama said that the rescue was necessary to prevent the loss of at least one million jobs and economic devastation in the industrial Midwest. Administration officials said that they should never recoup the full investment.

An earlier estimate by the Congressional Budget Office that taxpayers would lose $ 40 billion on the rescue of the automotive industry has been reduced to $ 19 billion, the Oversight Committee noted.

GM was pushed into bankruptcy protection by the administration of the Obama. It appeared in 2009 with cleaned of its staggering debt balance. The company made a shift in impressive losing billions before its restructuring to display profits $ 4.2 billion in the first nine months of last year.

Still, report says, through the sale of 45 per cent of its shares of GM for $33 each in 15.8 billion initial public offering the automaker in November, treasure "locked" loss of billions of dollars and reduced likelihood of full refund for taxpayers. "Viability threshold" price necessary to is from $44.59 per share, according to the report.

Officials say that stock GM averaged 3% just over $ 33 in the months following the introduction in stock, confirming that it was fairly priced.

"It is always tough decisions", Senator Ted Kaufman, D-., Chairman of the Committee, said in a conference call with reporters Wednesday. The Treasury Board "may have been reasonable" decisions but the objectives of the rescue package should have been more clearly defined, he said.

GM share price has increased as the company received better than many expected. It closed Wednesday at $38.62. If the trend continues, it is possible that taxpayers could do together.

The new report:

_said that the prospects for recovery of the taxpayer to Chrysler are reduced because the Government has only 10% of the shares of the company and therefore has limited influence on the time of the initial public offering.

_criticized what he called "hands off" approach to the Treasury Board financial Ally, not always assert its influence when facing an eventual IPO. The Department also refused to block GM of AmeriCredit, purchase even if this finance company may end up competition against Ally financial, he said.

_said Government help to prevent the GM and Chrysler to not "developed more competently managed car companies at a disadvantage," referring to Ford Motor Co.

Banks repossess 1 million homes by 2010 (AP)

NEW YORK - the darkest year foreclosure crisis has just begun.

Lenders are willing to make homes more return this year than any other since the beginning of the 2006 U.S. housing crisis. Approximately 5 million borrowers are at least two months behind their mortgages and more will miss the payments that they struggle with loss of jobs and loans worth more than the value of their House, forecasts industry analysts.

"2011 will be the peak," said Rick Sharjah foreclosure tracker RealtyTrac Inc. VP.

Outlook comes after repeated banks possession of more than 1 million homes by 2010, RealtyTrac, said Thursday. That marked the higher annual count of properties lost to foreclosure of records dating from 2005.

American households a 45 received a foreclosure filing last year, a record 2.9 million homes. It is rising 1.67% from 2009.

December, 257,747 of American households received at least a notice associated with the foreclosure. It was the lowest total monthly in 30 months. The number of advisories fell 1.8% in November and 26.3% in December 2009, RealtyTrac said.

Pace slowed in the last two months of 2010 as banks reviewed their foreclosure process after the allegations resurfaced in September that the evictions were processed incorrectly. Under surveillance increased Government temporarily interrupted lenders taken actions against severely borrowers behind on their payments.

However, most banks have resumed since their eviction process, and in the first quarter probably show a rebound in activity of the foreclosure, said of Sharjah.

Foreclosures are expected to remain high through the year, as owners contend with stricter standards stubbornly high unemployment rate of refinancing credit and falling home values. Sharjah said he expects at this price to dip another 5% nationally to ultimately hollow. The decline will grow more borrowers under water their mortgages. Already, approximately one in five homeowners with a mortgage are more that their house is worth.

Likely pain will be more acute in the States which have already been hard. Which includes the former housing boom States, Nevada, Arizona, Florida and California, as well as with States which suffer most from the economic crisis, including Michigan and Illinois.

Nevada has posted the highest rate of foreclosure in 2010 for the fourth year, despite a decrease of 5 percent in the activity of the previous year. One in every 11 households received a foreclosure filing year last in the State. In December, foreclosure activity increased from 18 percent in November with a hint of 71 per cent in possession of the Bank.

Arizona and California have also shown December sharp increases in the number of houses banks resumed at 52% and 47% respectively. Arizona, with Florida, finished the year at no. 2 and 3 for the highest foreclosure rates.

One every 17 Arizona homes received a foreclosure filing last year, while one in 18 received a notice in Florida.

California, Utah, the Georgia, Michigan, Idaho, Illinois and Colorado completed States top 10 with the highest foreclosure rates.

More than half the country's Foreclosure activity came out of five States of 2010: California, Florida, Arizona, Illinois and Michigan. Together, these States record almost 1.5 million households receiving a deposit, despite the decrease in the year in California, Florida and Arizona.

RealtyTrac tracks view for default values, home goods and home regular auctions - warnings which may result in a House being finally lost foreclosure.