Euro zone needs fiscal tightening despite growth impact: OECD (Reuters) (Yahoo!)

Brussels (Reuters) - the euro area countries need to consolidate public finances even if it is likely to constrain economic growth in the short term, the Organization for economic cooperation and development (OECD) said on Monday.

The OECD said that, as soon as emerging risks to increase the stability of prices - that the European Central Bank defines as inflation below, but close to 2% - in the medium term, the Central Bank should withdraw its monetary policy stimulus.

ECB interest rates are now at a record low of 1%.

The OECD, "non-standard measures (ECB) should continue" to be hurt at improvements in the monetary policy transmission mechanism said in a report.

He also stressed that for the euro area to restore healthy banking system and resolve remaining weaknesses sovereign debt crisis.

(Statement by Jan Strupczewski, mounting by Rex Merrifield)

GE to buy UK Enterprise oilfield Wellstream 1.3 billion (Reuters) (Yahoo!)

London (Reuters) - General Electric Co. (GE.N) has agreed to buy tubes-maker Wellstream Holdings Plc (WSML.L) drill to 800 million pounds ($1.3 billion), British Petroleum as GE continues its push in the offshore oil industry.

The agreement is the latest in a series of GE buys in the area of services of oil in the past years and shows that, despite the BP (BP.L) oil in the Gulf of Mexico summer spill, industry expects to continue the pace of drilling in deep water.

The acquisition would also allow the GE a solid foundation to Brazil where Wellstream has a manufacturing plant.

Recent years in very deep water - traditionally cost for producers of oil and the strong possibility for manufacturers of hardware - and Brasilia encourages the use of locally produced documents Brazil has made a series of discoveries of several billions of barrels of oil.

GE Wellstream said in a joint statement Monday that GE would pay investors Wellstream pence 780 counting more than a special dividend of 6%, Wellstream per share, compared to a 750 pence/share filed in September submission Wellstream scrapped.

Wellstream is one of only three leading manufacturers of "editing" flexible pipes linking platforms to heads of wells on the seabed.

His two main rivals is Technip (TECF.PA the France) and Prysmian (PRY.MI the Italy), while other companies manufacture rigid risers, a competing technology.

Wellstream shares traded 5.0 percent summary pence to 0911 GMT, suggesting investors did not expect a rival bid to emerge.

In September, Wellstream stated that he had received a number of approaches.

TREND OF CONSOLIDATION

Energy services has been one of the divisions grew GE, partly through the acquisition.

In October, GE concluded an agreement of $ 3 billion to buy Dresser Inc. (DRESS.UL), a manufacturer of engines used gas equipment for the production of oil and natural gas power.

Rivals have also been occupied alignment of the smaller players.

Monday, oilfield service provider UK Wood Group (WDGJY.PK) said it has agreed to acquire non-traded based rival Aberdeen NHP 955 million, including 325 million of debt, the latest in a long line of wood Group acquisitions.

Although this consolidation enables companies to extract economies, analysts say that often larger driver is usually big oil companies operating in deep waters off the coast of drilling, prefer to deal with the largest service providers offering a wide range of services.

Wellstream was advised by investment Credit Switzerland and Rothschild banks that GE was advised by Goldman Sachs.

(Other reports by Sakthi Prasad in Bangalore;) (Editing by David Holmes)

Stock index future little changed (Reuters) (Yahoo!)

PARIS (Reuters) - stock index term indicated mixed open on Wall Street Monday, with the S & P 500 0.05% decrease in term term up to 0.03% Dow Jones and Nasdaq 100 Futures down 0.06% 0853 GMT.

The dollar edged, supported by the Treasury yields higher after improving the United States data last week.

US Treasury bonds has fallen in Asia, yields 10 years hit a maximum of six months as dumping of Treasury obligations retained investors behind growth and higher than the United States deficits.

European shares expanded their two-week rally Monday, reaching a maximum of 26 months, in the wake of data United States and optimistic Chinese.

Data published over the weekend showed China's industrial production in November beat expectations with a slight acceleration in 13.3% on the year growth of 13.1% in October, sending of copper at a record level.

The data also show the overall inflation in Chinese climbing to a maximum of 28 months of 5.1 per cent in November, year of 4.4% in October.

Concerns that China would raise interest in the weekend due to rising inflation rates themselves are not made. Instead, the sources told Reuters Monday a selective increase in minimum reserves for Chinese banks to expire this week will be extended for three months.

Oil prices were higher Monday after the Organization of petroleum exporting countries was agreed at the end of week to maintain flat crude oil production levels.

The Financial Times said on Monday that European officials are considering plans to overhaul 440 billion euros and the use of the euro area relief funds to purchase bonds for grieving

Governments, making it easier helping countries submerged debt without full bail.

President Barack Obama tax deal with Republicans winning likely reluctant passage in Congress United States, supporters and opponents agreed Sunday after Obama clashed with the Liberals in his own party that it marks a collective for the rich.

Genzyme (GENZ.O) will be discussed after that Sanofi-aventis (SASY.PA) has extended its offer $ 18.5 billion in cash for the firm of biotechnology on January 21 and left the door open the possibility to extend the most, a sign of French drugmaker prepares for a long battle.

Wal-Mart Stores Inc.. (WMT.N) is advanced with the trade unions for the construction of New York talks to obtain their support for its entry in the New York City retail market, The Wall Street Journal reported on Sunday.

Capital commercial centres (CSCG.L) has slammed as "unable to implement and completely unworkable" alternative financing offers its shareholders and aspiring bidder Simon Property Group Inc. (SPG.N), which quickly responded, calling the SCC to postpone a vote on its proposed acquisition of Trafford Centre Centre commercial.

Grocery chain great Atlantic & Pacific Tea co. (GAP.N) filed for bankruptcy Sunday, drained silver difficult competition and a sluggish economic recovery.

Carlyle Group (CYL.UL) Chief Financial Officer Peter Nachtwey has resigned and the move could delay provided public savings capital American Society of private investment, the Financial Times said, citing people familiar with the matter.

General Electric Co. (GE.N) said Monday, buy company oilfield British Wellstream Holdings Plc (WSML.L) services to approximately 800 million pounds ($1.3 billion), an agreement that would expand the U.S. conglomerate submarine equipment and services portfolio.

U.s. stocks pink Friday, with the S and P 500 at its highest level since the week Lehman Brothers has collapsed in 2008 and violate the technical levels suggest the year-end rally will persist.

The industrial average, Dow Jones (.DJI) added 40.26 points, or 0.35% to 11,410.32. The standard & Poor of 500 (.SPX) acquired 7.40 points or 1,240.40 0.60%. Nasdaq Composite (.IXIC) increased 20.87 points either 0.80%, 2,637.54.

(Reported by Blaise Robinson.) (Editing by Louise heaven)

Oil rises above $88 the stable exit leaves OPEC (PA) (Yahoo!)

Supplies Singapore - oil price roses over $ 88 per barrel Monday in Asia, after OPEC left its unchanged gross production quota citing slowing demand and abundant.

Oil reference for January delivery rose 53 cents to $88.32 a barrel to Singapore late afternoon in electronic commerce on the New York Mercantile Exchange. The contract has lost 58 cents to settle at $87.79 Friday.

Ministers of the 12 nation organization of petroleum exporting countries said Saturday meeting in Quito (Ecuador) only one "fragile global economic recovery" and "fears of a second banking crisis in Europe" kept the agreement to increase oil production.

Many OPEC countries dependent on the sale of oil reserves in foreign currency and Government spending and are reluctant to take action to undermine the price. However, a jump in the price of the raw spark inflation and undermine economic growth globally.

"Ministers generally like the existing price," Cameron Hanover said in a report. "A few insiders have suggested a quota increase if crude oil prices break above $ 100 per barrel."

In other Nymex trading in January, contracts, heating oil reached 1.6 cents $2.47 a gallon gasoline futures added 2.5 cents to $2.33 a gallon and gas jumped 5.9 cents to $4.48 per 1,000 cubic feet.

In London, Brent crude rose 70 cents to $91.18 per barrel on the ICE Futures Exchange.

For fear of defenders of the social security payroll tax cut (PA) (Yahoo!)

WASHINGTON — President Barack Obama reduce payroll year tax plan would provide big savings for many workers, but makes defenders of nerve social security could jeopardize financial retirement program.

The plan is part of a series of tax cuts and extended unemployment benefits Obama negotiated with leaders of the Republican Senate. They reduce the workers share the social security tax by close to one-third for 2011. Making $ 50,000 salary workers would receive a $ 1,000 tax cut. those who carry out a $100,000 would receive a $2,000 tax reduction.

The Government would borrow $ 112 billion to social security together. Advocates and some legislators worry that by relying on money borrowed to finance social security might force them to compete with other federal programs for a few dollars, leading to reductions.

Social security taxes "should be held sacrosanct,", said REP Earl Pomeroy, D - N.D., Chairman of the House ways and means social security Subcommittee.

"When you start report (social security) tax rates are negotiable, you find yourself in trouble in the long term, I think, in terms of making absolutely certain financing right stream are secure,"said Pomeroy.""

Social security is funded by a 6.2% on the first $106,800 earned by an employee payroll tax. Tax is being matched by employers. All negotiated by Obama would reduce the tax paid by workers to 4.2% for 2011. Employer's rates would remain unchanged.

Obama administration officials say that a reduction in payroll tax is effective for stimulating the economy immediately increasing salary is home to approximately 155 million workers. Non-partisan Congressional Budget Office accepts and many business groups and the Republicans support.

"What was going on compromise was the idea of payroll, which, frankly, a large number of economists and other experts had spoken in the past two years with a lot of support in both political parties, tax day" said Larry Summers, Senior Economic Advisor of the Obama.

The United Auto workers approved the agreement, saying: "working families probably spend the money in their local communities by creating jobs and to stimulate global growth."

The payroll tax reduction is part of a larger package negotiated by legislators Obama and image to expand a table scan of Bush tax cuts expire at the end of the month age group. Some Democratic lawmakers have coldly to the plan, saying it is tilted too much in favour of the rich.

The payroll tax reduction would provide relief to any worker who earn a wage. It would replace making work pay tax credit of Obama provided modest increases in the paychecks of most of the workers for the past two years.

Payroll tax credit would be most generous people making more than $20,000 and making more than $40,000 for married couples. For those who least tax payroll reduction would be less credit to make work pay.

Make work pay, which expires at the end of the year, gives workers a 6.2 per cent of their salary, tax credit, but it is capped at $400 for individuals and $ 800 for couples. The credit is gradually to more than $75,000 people and couples making more than $150,000.

A worker would have to make $20,000 in wages for payroll tax cut equal to $400 Making Work Pay credit tax; couples would be $ 40,000.

At the end of the wage scale, rich workers making $106,800 - maximum wages subject to social security - tax amount would be reduced by $2,136 contributions. Spouse of the worker, who may also obtain a reduction of up to $2,136, payroll tax if he or she is at least $106,800.

The proposal requires that the Department of the Treasury rebuild social security with other government funds, which will have to be borrowed.

"The payroll tax reduction has absolutely no effect on the solvency of social security," said White House Economic Advisor Jason Furman.

Social security has accumulated a Fund Trust 2.5 trillion dollars since the 1980s. But the Government has borrowed that money to pay for other programs. Treasury Department issued special obligations for social security, ensuring that money will be repaid with interest.

As aging baby boomers begin to retire and the system of strain, advocates worry that benefits future cuts. This year, for the first time since the 1980s, social security will provide more benefits it collects in dues. Without change, the social security trust fund runs money by 2037, according to the trustees who oversee the program.

To save money, the leaders of a commission bipartisan deficit has recently proposed a progressive increase of the full retirement, 67-69 age, drawing of opposition from groups representing the elderly.

"This tax cut 2 percent pay is the beginning of the end of social security as we know it," said the National Committee to preserve social security and Medicare, which is headed by the former Rep Barbara b. Kennelly, D-Conn. "worker contributions funded program of 75 years and that the link between contributions and benefits critical is what social security is a self-funded program."

___

Online:

Social Security Administration: http://www.ssa.gov/

National Committee to preserve social security and Medicare: http://www.ncpssm.org/

Modules turn cut tax bill in "Tree for Christmas" (PA) (Yahoo!)

By FREDERIC j. FROMMER MARY CLARE JALONICK, Associated Press Frederic j. Frommer and Mary Clare Jalonick, Associated Press - Saturday, December 11, 4 pm 47 he

WASHINGTON - in the spirit of the holiday season, tax cuts deal with President Barack Obama Republican becomes a Christmas tree with gifts for lobbyists and legislators tinseled. But it does Friday, with Bill Clinton, quarrels even at la maison blanche plead the cause of the President.

While Republicans sit quietly return, especially happy, other Liberals and Democrats went to another very publicly. As the Clinton lectured on behalf of Obama, Vermont independent Bernie Sanders fustigé agreement and in the Senate Chamber television cameras mostly empty.

Tax, behind the scenes and yet informal agreement now includes ethanol for folks rural tax commuter for their cousins in cities and suburbs and the wind and solar grants for ecologists - relief grants all aimed to win votes, especially reluctant democratic.

Holiday additions are currently suspended on the big Bill which was the main reason spending December Congress in Washington, long after the elections Republicans give new power in January. Bush-era tax cuts will extend the extent, prevention big tax increases for nearly all Americans, and keep flowing unemployment benefits.

Republicans generally liked this agreement, developed by leaders Obama and group images. Democrats generally only, where modules.

He scheduled to come to a decisive vote next week, total by the most recent estimate of the Congress: 857.8 billion.

Friday, there are events contrasting for public consumption.

On Capitol Hill, talks about Sanders vigorously for 8 1/2 hours in an almost empty room, urging defeat a measure that he says would "breaks millionaires and billionaires who it is not necessary tax." He finally has his speech, admitting "there has been a long day.

At the White House, Obama handed the microphone briefing room at former President Clinton, who said, "I don't think there is a better deal there." All sides, he said, "will have to eat things that they do not like."

The modules were being attached behind the scenes.

Almost 5 billion in subsidies for corn-based ethanol and continue tariff to protect themselves against ethanol imports were wrapped and placed on the shaft, Thursday night for the firm State legislators and lobbyists agro-industry. Environmentalists won more grants for developers, such as wind and solar energy.

Urban legislators is a continuation of on-to-maturity tax breaks that could save commuters who use transit to $1,000 per year. Other popular tax provisions aimed at increasing the production of biodiesel hybrid cars, coal and appliances household energy efficiency would be extended until the end of 2011 for new addons.

The package also includes an extension of two Gulf tax incentive programs enacted after Hurricane Katrina, stimulate economic development in Mississippi, Louisiana and Alabama.

Ethanol money was added despite growing opposition to subsidise fuel after Congress that decades of Government supports. Last month, 17 Republican and Democratic Senators wrote to leaders calling tax breaks "fiscally indefensible" because there is already a law requiring that ethanol be blended with gasoline.

"Historically the Government helped a product to a maximum of three ways: grant, protect competition or require its use." We understand that ethanol may be the only product that received all three forms of Government United States at this time support "wrote senators."

But ethanol still powerful supporters on Capitol Hill, including the Iowa Senator Charles Grassley, top Republican on the Senate Finance Committee and a key on the tax bill negotiator of the Senate. Add tax relief of ethanol was designed to help consolidate many Democratic senators as well as rural Republican votes.

But while Add-ons may have won more votes for the agreement Obama-group of images of the Senate, the potential impact is less clear in the House, where Democrats have criticized the package as a collective of taxes for the rich.

Minnesota Rep Collin Peterson, a conservative Democrat says downs steps as Chairman of the Committee on agriculture Chamber in January, he would have voted against the Bill if it contained tax incentives clean energy and nothing for ethanol.

"I know that this will help members in parts of the Chamber, different from this desire to help the different members," he said.

However, Peterson said that appropriations for corn-based fuel probably don't last. He stated that Rep Jim Clyburn's South, no. 3 Democrat House of the caucus said, it is important to include ethanol in the Bill, and some booed him. Not have not happened a few years ago said Peterson.

Earl Pomeroy Rep, D - N.D., who lost his re-election in November, sponsored by the version of the House legislation extending tax relief of ethanol. But he said that he could not even support the Bill because of his opposition to provisions cutting taxes of succession to the wealthiest Americans.

"There may be some that vote for the package this hate otherwise that it due to the layout of ethanol, but my sense is only ethanol isn't is going to be something that brings us on top," said.

A spokesman for the Republic Earl Blumenauer, D - Ore., a leader in the effort to save energies solar, wind and said that his boss tax credits still not been won more on packaging. He said that the extension is necessary but not sufficient to support the Blumenauer. "His vote will be dependent on what the final version looks like,", said Derek Schlickeisen spokesperson.

Rep Jay Inslee, a Democrat in Washington, is also not won by the extension of the renewable energy even though it was a great supporter of the program.

"This is one of the best things that we in the Federal Government for the creation of jobs." It is extremely important. "And nuts do not fund simply leaving the higher end, income tax brackets" he said. "I think there is a better deal there potentially available and we should fight for it."

And there is the possibility that added goodies will be in effect for some legislators. Rep Jeff Flake, R - Arizona, said addons could turn against the Bill fiscally conservative colleagues.

"You want to be there accused of supporting the three stimulus", he said. "It will be displacing some votes in the House, but more than anything else it will show voters there things have not changed with Republicans."

Global check more stocks high (Reuters) (Yahoo!)

London (Reuters) - World stocks margined more Friday as investors grew more confident in the prospect of economic recovery after robust data United States and Chinese stabilized after a predatory earlier this week Treasury bonds.

Data Friday showed China's imports and exports were much stronger than expected in November, robust numbers that served a reminder that Chinese demand was even faster and could pave the way to higher rates of interest as soon as this weekend.

Recent figures suggest the United States and strong European economies are also pick up steam.

"The number of Chinese and overnight United States performance justify a higher starting", Heino Ruland, strategist Ruland Research in Frankfurt, said.

On Wall Street Thursday, benchmark S & P 500 (.SPX) has reached a maximum of two years with data showing the claims for the first time for unemployment benefits fell more than expected last week.

MSCI world equity index (. MIWD00000PUS) rose 0.1% so that the FTSEurofirst 300 index (. FTEU3) acquired the same amount.

TREASURIES RECOVER

Treasure of the United States edged through strong of the auction of 30-year bonds reflecting investors ' appetite. Cash sold off much earlier in the week on Bush Barack Obama plans to expand low tax rates. However, these plans hit some opposition before proceeding to a vote in the Senate next week.

Increase in US Treasury yields this week and the concerns of inflation in the development of the economies - with the prospect of a more rigorous policy of China - also encourages investors to scale back their Paris already overwhelmed in emerging markets.

Emerging stocks (.MSCIEF) lost 0.2 percent, partly on the concerns on possible measures to strengthen the economy China.

"All the evidence suggests that even political standardization is necessary to keep China's economy on an even keel.". So far, China has made only modest moves in this direction, "RBC has stated in a note to clients."

"We expect to see more urgency of Beijing in the coming months as the fight against inflation becomes a higher priority, with the rate increases and the appreciation of the currency that could be used."

Ten-year Treasury increased 8/32 Awards give 3.185%, a maximum of six months of 3.69% achieved on Wednesday.

Sale $ 13 billion US 30 years reopened crossed a performance below the commercial level on the open market, indicating investors debt, with a strong aggressive bid bond request including foreign buyers.

The dollar (.DXY) has been steady against a basket of currencies, the euro was also unchanged at $1.3236.

U.S. crude rose quarter per cent to $88.59 per barrel. The bund future increased by 0.2 percent.

(Statement by Natsuko Waki, mounting by Mike Peacock)

Oil rises to near $ 89 as dollar weakens (PA) (Yahoo!)

Singapore - oil prices exceeded $ 89 per barrel Thursday in Asia as a weakness of the US dollar is crude cheaper for investors with other currencies.

Oil reference for January delivery rose by 94 cents to $89.22 a barrel to Singapore late afternoon in electronic commerce on the New York Mercantile Exchange. Contract lost 41 cents to settle at $88.28 Wednesday.

Oil has oscillated in top-$ of the 1980s, this week - reach a maximum of two years for $90.76 Tuesday - as traders mull how demand global crude oil can grow in 2011. In the absence of any solid catalyst market oil or economic data, the gross prices often follow currency and stock markets.

The euro has $1.3310 Thursday to $1.3261 late Wednesday when the dollar dropped to 83.80 Yen yen 84.00.

Some analysts expect the rise in gross consumption of Asia and other emerging economies continue to stimulate global demand next year. World consumption of oil reached a record 86.7 million barrels per day in the third quarter and will probably jump to 88.1 million in 2011, according to energy consultant Wood Mackenzie.

About 85% of the growth of global demand for 2.5 million barrels per day this year will come from developing countries, which will be probably also account 80 per cent of the growth of demand for the next year 2012, said Wood Mackenzie.

"The world oil market is divergent as never before," Wood Mackenzie analyst Francis Osborne said. "While the economy in mature OECD regions continues to fight and with it demand oil in emerging markets generally was full speed ahead on two fronts".

"Leading to this recovery is China and the rest of Asia.

In the other Nymex trading contracts January, heating oil rose 1.9 cents to $2.48 per gallon gasoline purchased term 2.7 cents to $2.33 per gallon and gas jumped cents $2.9 to 4.64 per 1,000 cubic feet.

In London, gross Brent has increased ICE exchange future 66 cents to 91.43 $ per barrel.

Live Chat: IMD admissions (BusinessWeek) (Yahoo!)

Cat: December 9 at 1 p.m. et

Guest: Lisa Piguet, Associate Director, MBA admissions and marketing at IMD

IMD Business School (full-time MBA Profiles IMD) in Lausanne, Switzerland, accepted 22 per cent of its 496 candidates this year, making it one of the MBA programs international more selective last Bloomberg top global business schools BusinessWeek ranking. If you're aiming for a seat at the IDM, ranked seventh in the ranking, then you won't want to miss our next live chat event on December 9 at 1 p.m. et. Lisa Piguet, Associate Director of MBA admissions and marketing IDM, take in all of life in Switzerland nailing the interview questions.

Piguet was born and grew up in Denver, where she studied business and psychology. After her graduation, she has held various positions, including occupied the posts of Adolph Coors and Logitech, before founding his own company, Plan B Marketing, in 1994. In 1999, she moved to the Switzerland and worked as a consultant senior firm recruiting executives Weck & partners. Piguet joined IMD in 2002 and became Associate Director of admissions in 2005. It handles now admissions and marketing for the school.

To participate in the conversation, you must run in the Auditorium of the conversation about 10 minutes before the scheduled event. You may be prompted to create a username and a password. It is free and should take only a few minutes. Francesca Di Meglio (FrancescaBW) will be your host. If you cannot attend the event, you can send your questions in advance of Francesca FDBloombergBW@gmail.com with the subject "Chat IMD."