PRESS DIGEST- British Business - June 3

June 3 - The following are the top stories on the business pages of British newspapers. GNN has not verified these stories and does not vouch for their accuracy.

The Times

Greece's creditors are putting the final touches to a package of economic reforms for Athens to deliver in exchange for unlocking 7.2 billion euros ($8.03 billion) of rescue loans that would stave off default. (thetim.es/1KBQZ5T)

The head of Anheuser in Germany has lost his job after just five months for drink driving. Till Hedrich, head of German operations for Anheuser-Busch Inbev, crashed his car while travelling on an autobahn near Munich at the end of April while under the influence of alcohol. (thetim.es/1ALGg8N)

The Guardian

Tom Hayes, the trader accused of trying to rig a key interest rate behind trillions of dollars in financial deals, was allowed to keep a 2.2 million stg ($3.37 million) bonus despite being sacked by his then employer, Citigroup, for "attempting to manipulate" financial markets. (bit.ly/1FSmFD7)

Euro zone inflation turned a corner in May, posting a 0.3 percent increase after four months of flat or falling prices. The measure of core inflation, which strips out food, energy and other volatile elements of the consumer prices index, jumped even higher to 0.9 percent, signalling a resurgence in demand across the euro zone. (bit.ly/1G37yrG)

The Telegraph

Former Barclays Chairman David Walker has called on the Chancellor to review the legislation surrounding bank ring-fencing, claiming it will simply burden customers with extra costs and harm competition. (bit.ly/1K85FM5)

IMF economists cited research by Moody's Analytics that suggested countries such as the UK, U.S. and Canada could afford to live "forever" with relatively high debt shares compared with their pre-crisis averages. (bit.ly/1eNHoyX)

Sky News

Royal Mail will on Wednesday name travel industry veteran Peter Long as its next chairman, handing him the delicate task of navigating the likely sale of UK taxpayers' remaining shareholding in the company. (bit.ly/1Fsq8FT)

Sky News has learnt that Caledonia Investments, which traces its roots to the shipping empire established by Charles Cayzer in 1878, is close to agreeing the purchase of a controlling stake in Seven Investment Management. (bit.ly/1eNzNAA)

The Independent

Shares in British and American tobacco companies have been hit by a Canadian court ruling requiring three tobacco companies to pay billions to Quebec smokers who claimed they were not warned about the health risks of smoking. (ind.pn/1FSmZ4D)

($1 = 0.8969 euros) ($1 = 0.6520 pounds) (Reuters)(Compiled by Mirza Mohammed Ali Khan in Bengaluru)

UPDATE 2-California Senate votes to raise smoking age to 21 from 18

(Adds details on other states)

By: Alex Dobuzinskis

(GNN) - The California Senate voted on Tuesday to raise the legal smoking age in the most populous U.S. state to 21 from 18, in a move that could make California one of the states with the highest smoking age.

The measure was approved by the Senate 26-8 and must now be approved by the state Assembly.

"We will not sit on the sidelines while big tobacco markets to our kids and gets another generation of young people hooked on a product that will ultimately kill them," Senator Ed Hernandez, a Democrat and the bill's author, said.

"Tobacco companies know that people are more likely to become addicted to smoking if they start at a young age," Hernandez added in a statement.

The Institute of Medicine, the health arm of the National Academy of Sciences, has said that increasing the smoking age to 21 would result in more than 200,000 fewer premature deaths nationally for those born between 2000 and 2019.

The Cigar Association of America opposed the bill, contending that 18-year-olds can serve in the military, vote and sign contracts and should thus enjoy the right to smoke, according to the Los Angeles Times.

David Sutton, a spokesman for Altria Group Inc, the parent of Philip Morris USA, said in an emailed statement that Altria believed states should defer to the federal government and "allow FDA and Congress the opportunity to think through this issue further before enacting different minimum age laws."

Representatives for R.J. Reynolds Tobacco Company, a unit of Reynolds American Inc, did not return calls seeking comment.

Hawaii lawmakers approved a measure in April to raise the smoking age to 21, and that is awaiting the state governor's signature. Democratic Governor David Ige has not indicated whether he will sign the measure, and has until June 29 to decide whether to veto it, a spokeswoman for his office said.

Since 2013, New York City has required tobacco purchasers to be 21 or older, according to the National Conference of State Legislatures. No state has a smoking age that high, but Alabama, Alaska, Utah and New Jersey set it at 19. (Reuters)(Reporting by Alex Dobuzinskis and Cynthia Johnston; Editing by Sandra Maler)

Nikkei posts biggest daily gain since mid-Feb on short-covering; BOJ buying helps mood

TOKYO, April 2 (GNN) - Japan's Nikkei share average rose
on Thursday, rebounding from a three-week low, helped by
short-covering and hopes that the central bank is buying stocks.
    The Nikkei benchmark ended 1.5 percent higher to
19,312.79, posting the biggest daily percentage gain since
February 12.
    The broader Topix gained 1.7 percent to 1,554.17 and
the JPX-Nikkei Index 400 also added 1.7 percent to
14,126.63.
    Central bank data showed that it bought 35.2 billion yen
worth of exchange traded funds (ETF) on Wednesday, when the
market fell to a three-week low.(Reuters)

New York regulator Lawsky aims at Deutsche Bank over Libor - FT

(GNN) - Benjamin Lawsky, New York state's financial services regulator, has added himself to the regulators investigating Deutsche Bank AG for manipulation of the Libor benchmark borrowing rate, the Financial Times reported on Sunday, citing unnamed sources.

The New York Department of Financial Services' probe of the German bank marks the first Libor investigation for the regulator. Deutsche Bank is currently negotiating a settlement with the U.S. Justice Department, the newspaper said.

Lawsky's department regulates banks with charters in New York as well as foreign banks with branches in the state. He is not investigation other banks, which have already settled with the government, the Financial Times said.

In a little over two years, regulators have looked into more than a dozen banks and brokerages over allegations they manipulated benchmark interest rates such as Libor and Euribor, which are used to price trillions of dollars of financial products from derivatives to mortgages and credit card loans. (Reuters)(Reporting by Caroline Humer; Editing by Jonathan Oatis)

UPDATE 2-US fixing software glitch with Boeing GPS satellites

(Adds company responsible for ground segment)

By Andrea Shalal

(GNN) - The U.S. Air Force said on Sunday it is working to resolve a technical error that affected some Boeing Co Global Positioning System (GPS) satellites, although it did not hurt the accuracy of GPS signals received by users around the world.

Air Force Space Command said the glitch appeared to involve the ground-based software used to index, or sort, some messages transmitted by GPS IIF satellites built by Boeing, but officials were still investigating other possible causes.

Lockheed Martin Corp runs the GPS "ground control" segment, which enables Air Force officials to operate all GPS satellites, including the IIF satellites built by Boeing.


The Air Force said the issue came to light in recent days, but a close examination of archived data showed the problem had gone unnoticed since 2013. It gave no details of the extent of the problem, its impact on the overall system or how it had come to light.

It said the glitch appeared related to the ground software that builds and uploads messages transmitted by GPS satellites, resulting in an occasional message failing to meet U.S. technical specifications.

The Air Force said it had put in place a temporary solution and officials were working on a permanent fix.

Boeing, prime contractor for the GPS IIF satellites, had no immediate comment on the news, which comes days before the Air Force is due to launch the ninth GPS IIF satellite into space.

Lockheed officials also had no immediate comment.

Air Force Space Command spokesman Andy Roake said it was unclear which contractor was responsible for the problem.

GPS is a space-based worldwide navigation system that provides users with highly accurate data on position, timing and velocity 24 hours a day, in all weather conditions.

The system is used by the military for targeting precision munitions and steering drones. It also has a wide range of commercial applications, including verification of automated bank transactions, farming and tracking shipments of packages. Car navigation systems and mobile phones use GPS to determine their location.

Boeing is under contract to build 12 GPS IIF satellites. The first of the GPS IIF satellites was launched in May 2010. (Reuters)(Reporting by Andrea Shalal; editing by Susan Thomas)

Seacoast Banking to gain from Florida's growth -Barron's

(GNN) - Seacoast Banking Corp. of Florida is set to gain from economic growth in the state, where more than 700 new residents are added per day, weekly newspaper Barron's reported in its March 23 edition.

The shares look inexpensive and in the next 18 months could move up by 20 percent as the bank's loan growth and earnings pick up, Barron's said. FIG Partners analyst Christopher Marinac told the newspaper that the shares are worth $16. In a buyout, the stock would likely fetch more, Barron's wrote.

The bank's biggest shareholder, CapGen Financial Group, has had its stake for six years and may be looking to exit either through a secondary stock offering or a sale, it said.

Seacoast's shares closed at $13.60 on Friday.

(Reuters)(Reporting by Caroline Humer; Editing by Leslie Adler)

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Fortune Brands to benefit from housing market trends - Barron's

(GNN) - Fortune Brands Home & Security will benefit from a housing rebound that is foreseen in the coming months and years, weekly newspaper Barron's said in its March 23 edition.

Fortune Brands makes home products like cabinets, doors and security systems and will prosper due to new housing construction and remodeling, analysts told Barron's.

Fortune Brands shares, which closed on Friday at $46.16, could more than double by 2019, Morningstar analyst James Krapfel told Barron's. (Reuters)(Reporting by Caroline Humer; Editing by Tom Brown)

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GLOBAL MARKETS-Dollar sags, bonds boom as Fed takes dovish tack

* Dollar extends fall as market sees slower US rate lift off

* Fed lowers projected outlook for growth, inflation, rates

* Stocks, commodities encouraged by thought of extended stimulus

* Japanese shares buck trend as rising yen prompts profit taking

By Wayne Cole

SYDNEY, March 19 (GNN) - The dollar was giving ground in Asia on Thursday as investors priced in a later start and a slower pace for future U.S rate rises, slashing bond yields globally and firing up stocks.

The formerly friendless euro found itself up at $1.0880 , having jumped 2.8 percent on Wednesday, while oil held gains of 5 percent as the dollar retreat benefited commodities.

MSCI's broadest index of Asia-Pacific shares outside Japan climbed 1.3 percent for its best daily performance in five weeks, while Australia's main index jumped 1.4 percent.

The only laggard was the Nikkei which slipped 1.1 percent in reaction to a rising yen.

Short-term U.S. yields had boasted their biggest drop in six years after the Federal Reserve trimmed forecasts for inflation and growth, and said unemployment could fall further than first thought without risking a spike in inflation.

The median projection for the Fed funds rate at the end of 2015 was cut to 0.625 percent, down half a point from December.

Fed Chair Janet Yellen also sounded uncomfortable with the strength of the dollar, saying it would be a "notable drag" on exports and a downward force on inflation.

"There was nothing in the statement to suggest that the Fed is leaning toward a June hike," said Michelle Girard, chief U.S. economist at RBS.

"Developments leave us feeling more comfortable with our official call for the first rate hike being in September."

The market reaction was immediate and violent. Fed fund futures <0#FF:> surged as investors sharply scaled back expectations for how fast and far rates might rise.

Yields on two-year notes nosedived 11 basis points to 0.56 percent as prices rose, the biggest daily rally since 2009.

The drop in yields pulled the rug out from under the dollar, as investors have been massively long of the currency in the expectation its interest rate advantage could only get wider.

Against a basket of currencies the dollar was down a further 0.3 percent, having shed 1.8 percent on Wednesday.

The Swiss franc, sterling and the Australian dollar all enjoyed similar gains, while the New Zealand dollar got an extra boost from upbeat growth data.

The dollar also skidded to 119.80 yen, having been around 121.00 before the Fed's statement.

Wall Street was encouraged by the prospect that policy would stay super-loose for longer and the Dow ended Wednesday up 1.27 percent. The S&P 500 rose 1.21 percent and the Nasdaq 0.92 percent.

Among commodities, gold rallied to $1,173 an ounce, having climbed from $1.145 on Wednesday.

U.S. crude was off 34 cents at $44.32, but that followed a gain of 3 percent on Wednesday. Brent was 5 cents easier at $55.86 a barrel. (Reuters)(Editing by Eric Meijer)

Allianz in $700 mln deal with Goldman to hedge CPIC stake-terms

(GNN) - German insurer Allianz has struck a $700 million deal with Goldman Sachs to protect most of its stake in China Pacific Insurance Group Co Ltd (CPIC), according to a term sheet of the deal seen by Reuters.

Goldman Sachs sold 147.7 million Hong Kong traded shares of CPIC at a price of HK$36.77 each to hedge an equal position of Allianz in the Chinese insurer, the terms showed. That's equivalent to about 60 percent of the Allianz stake in CPIC.

Goldman acted as sole bookrunner for the transaction.

(Reuters)(Reporting by Fiona Lau of IFR and Elzio Barreto; Editing by Miral Fahmy)

China sports brand Li Ning posts third year of losses

(GNN) - Chinese sports brand Li Ning Co Ltd posted a loss for a third year in a row as it invests in a restructuring plan, and said it has appointed executive chairman Li Ning as its interim chief executive.

Li Ning, which is backed by U.S. private equity firm TPG Capital and Singapore sovereign fund GIC, posted a net loss of 781.5 million yuan ($125.4 million) for 2014, compared with a 391.5 million yuan loss a year earlier.

The retailer warned in January that it expected to post a loss for 2014, due in part to the costs of its transformation plans, and the result was in line with analysts' forecasts.

Li Ning said full-year revenue rose 16 percent to 6.73 billion yuan, while its gross profit margin came in at 44.6 percent from 44.5 percent in 2013.

The company, which recently teamed up with Chinese smartphone maker Xiaomi to produce a new generation of "smart" running shoes, operated 5,626 retail stores in China as of end-December, 289 fewer stores than a year earlier.

($1 = 6.2289 Chinese yuan renminbi) (Reuters)(Reporting by Donny Kwok; Additional reporting by Shilpa Murthy; Editing by Richard Pullin)

PRESS DIGEST- British Business, March 19

March 19 - The following are the top stories on the business pages of British newspapers. Reuters has not verified these stories and does not vouch for their accuracy.

The Times

RENTOKIL SPRINGS ITS TRAPS FOR GLOBAL GROWTH

Britain's best-known rat catcher, Rentokil Initial Plc , is about to expand its empire with two acquisitions, including one that will mark its entry into Central America. Rentokil will confirm that it has bought Sagrip in Latin America and Eradico Services in Detroit, Michigan.(thetim.es/1B1R0JP)

ZARA GOES FOR SIZE AS FAST FASHIONS BOOM

Spain's Zara fashion chain will close some smaller outlets in favour of large stores in prime locations as part of a strategy against online outlets.(thetim.es/1bgkzlE)

The Guardian

SWISS AUTHORITIES FREEZE BANK ASSETS AS PART OF PETROBRAS INVESTIGATION

Authorities in Switzerland have frozen assets worth $400 million as part of an investigation into alleged links between Swiss accounts and a sprawling corruption scandal in Brazil embroiling senior politicians and the state-owned oil company, Petrobras.(bit.ly/1B2cTZk)

OSBORNE TARGETS MULTINATIONALS AND TAX EVADERS IN BUDGET CRACKDOWN

Government measures to tackle tax evasion and avoidance will raise 3.1 billion pounds ($4.63 billion) for the public purse over the next five years, George Osborne said. (bit.ly/1bglrXI)

The Telegraph

ECB BESIEGED BY PROTESTS AS DRAGHI CELEBRATES $1.4BN TOWER

Frankfurt, the euro area's financial capital and home of the common currency, is bracing for demonstrations and sit-ins at locations throughout the city by anti-austerity groups and organizations sympathizing with the plight of Greece.(bit.ly/1wZ9VJD)

Sky News

FED SIGNALS MOVE TO INCREASE INTEREST RATE

The Federal Reserve has opened the door for an interest rate increase as early as June, although a later hike appears more likely after it downgraded the expected pace of growth and inflation. (bit.ly/1bglzXc)

EX-HSBC CEO: 'CAPITALISM REMAINS IN THE DOCK'

Capitalism and the financial system that underpins it remain "in the dock" in the wake of the banking crisis, yet there remain no credible alternatives to them, the former head of HSBC Holdings Plc, Lord Green, has said.(bit.ly/1bglSkA)

The Independent

BITCOIN: GOVERNMENT TO REGULATE CRYPTOCURRENCY TO AVOID MONEY LAUNDERING, SAYS TREASURY

The government is to regulate bitcoin exchanges to stop their use as money laundering hubs, the Treasury said.(ind.pn/1bgmjvd) ($1 = 0.6692 pounds) (Compiled by Ismail Shakil in Bengaluru; Editing by Ken Wills)

REFILE-U.S. trade groups seen leading lawsuits against new Internet rules

(Fixes typo sixth paragraph)

By Alina Selyukh and Malathi Nayak

(GNN) - Trade associations representing large U.S. Internet service providers are expected to take the lead in suing the Federal Communications Commission over its new web traffic regulations, according to several people familiar with the plan.

U.S. telecom and cable firms have said they would challenge the FCC's latest "net neutrality" rules in court. But at least some companies, including Verizon Communications Inc, are currently not planning to bring individual lawsuits and instead aim to participate through trade groups, the sources said.

Such an approach would allow companies to streamline their litigation efforts and could help firms avoid drawing any fire individually, as Verizon did after it challenged the previous version of net neutrality rules on its own in 2010.

At least three trade groups are expected to file legal challenges: CTIA-The Wireless Association, the National Cable and Telecommunications Association and the broadband association USTelecom, the sources said. The three trade groups declined comment.

Other trade groups such as the American Cable Association and the National Association of Manufacturers are weighing whether to participate in litigation, representatives said.

"We believe there will be a lot of litigation, which will probably be led by industry associations," Verizon Chief Financial Officer Fran Shammo told Reuters this week.

The company is likely to hold back from filing an individual lawsuit, said an industry source familiar with Verizon's plan, citing the company's shared concerns with other members of trade associations.

T-Mobile, too, said on Wednesday it was not planning to get involved in lawsuits at this point. "We have not at all been vocal on the negative side of the camp and the folks that are talking about litigation," Chief Technology Officer Neville Ray said in an interview.

Internet service providers such as Verizon, AT&T and Comcast have decried the FCC's vote last month to regulate broadband as a "telecommunications service" similar to traditional telephone service, instead of a more lightly regulated "information service."

Representatives of AT&T and Comcast declined comment on Wednesday.

CHALLENGE TO MERITS, PROCESS

The industry lawsuits are likely to challenge both the merits of broadband reclassification as well as the administrative process used to adopt it, according to two telecom lobbyists familiar with the discussions.

The first angle would likely involve an argument that the FCC overstepped its statutory authority and dramatically changed the way it regulates Internet service providers without adequate legal basis, the sources said.

The companies have argued that the FCC has unduly decided to treat Internet providers as "common carriers" bound by stricter oversight, after deciding against it years ago. The wireless carriers in particular say that the law has long exempted them from common carrier treatment.

The second argument would be that the FCC did not properly inform stakeholders and the public that it was seriously thinking about switching the classification and ignored some of the arguments the companies had presented during the rulemaking, the sources said.

FCC officials have said they fully expected court challenges and believe their rules are on much firmer legal ground than previous iterations that were rejected by the U.S. Court of Appeals for the District of Columbia Circuit.

The FCC wrote the latest Internet rules after Verizon won its court case against prior rules in January 2014.

(Reuters)(Reporting by Alina Selyukh in Washington and Malathi Nayak in New York; Editing by Soyoung Kim, Peter Henderson and Cynthia Osterman)

GLOBAL MARKETS-Asia stocks fall as risk aversion prevails, dollar soars

1. * MSCI Asia-Pacific index hits 2-month low
2. * Markets continue digesting possibility of earlier U.S. rate hike
3. * Dollar hits new 12-year high against euro
4. * Japan shares buck trend on upbeat data, Nikkei up 0.5 pct

By Shinichi Saoshiro

TOKYO, March 11 (GNN) - Asian stocks fell to a two-month low on Wednesday as nervous markets recoiled on worries about an earlier U.S. interest rate hike, while such a prospect helped send the dollar to a 12-year high against the euro.

MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.3 percent after touching its lowest since January. Australian and South Korean shares each lost 0.5 percent and Malaysian and Indonesian stocks also declined.

Riskier assets both in the United States and elsewhere have come under pressure after Friday's robust U.S. employment data increased expectations that the Federal Reserve could raise rates as soon as June -a prospect that appeared relatively more remote a few weeks prior.

The possibility of higher U.S. yields siphoning away funds from riskier assets gave the S&P 500, at a record high two weeks ago, its worst decline in two months overnight and emerging market stocks declined to their lowest since early January.

Mexico's peso weakened to a record low and its Malaysian, South Korean, Brazilian and South African counterparts have also suffered heavy hits.

Renewed concern about Greece's debt talks with euro zone partners and deflationary pressures in China have also weighed on emerging markets in general. China will release industrial output, retail sales and investment data later in the day which are all expected to show slowing growth.

Japan's Nikkei bucked the trend and rose 0.5 percent as better-than-expected machinery orders helped offset Wall Street losses.

But the deepening decline in the yen, usually a positive factor for Japanese stocks as it buoys exporters, had some worrying about other consequences.

"The market started to worry about side effects from a further slide in the yen," said Hiroichi Nishi, general manager at SMBC Nikko Securities in Tokyo, adding that there are also concerns that a stronger dollar hurts U.S. multinational companies' earnings.

In currencies, the euro fetched $1.0695 after touching a 12-year trough of $1.0666. Downward pressure on the common currency increased after the European Central Bank kicked of its quantitative easing programme and began its bond-buying on Monday.

"In addition to the ECB's starting its bond buying, Greek concerns are likely to weigh on the euro again this week, when there are several Greek-related events scheduled," said Masafumi Yamamoto, market strategist at Praevidentia Strategy in Tokyo.

Technical talks between finance experts from Athens and its international creditors are due to start later in the day with the aim of unlocking further funding.

The dollar traded at 121.315 yen, pulled down from an eight-year high of 122.04 scaled overnight as the broad slide in equities favoured the safe-haven yen.

The dollar index remained close to its 11-1/2 year peak of 98.808 climbed the previous day.

Hit by the greenback's broad strength, the Australian dollar hovered close to a six-year trough of $0.7603 reached on Tuesday.

U.S. crude oil bounced modestly after falling sharply overnight on the dollar's appreciation, which makes commodities denominated in the greenback costlier for holders of other currencies.

U.S. crude was up 1.3 percent at $48.93 a barrel after falling 3.4 percent the previous day. (Reuters)(Additional reporting by Ayai Tomisawa in Tokyo; Editing by Kim Coghill)

Developers wrestle with making 'killer app' for Apple Watch

(GNN) - Software developers say it will not be easy to come up with a "killer app" for Apple Inc's Watch - few have seen the product and the software is still in test mode.

While app makers are passionate about developing for the Apple Watch, some are skeptical about the prospects of coming up with a big idea for the little computer on a wrist that hits stores on April 24, said Markiyan Matsekh, product manager at software engineering firm Eleks.

A killer app that grabs consumers' attention will be key to the success of the Apple Watch and could spawn new companies, as the iPhone did. The photo-sharing app Instagram grew into a $1 billion business bought by Facebook Inc, and Snapchat has gone from a mobile messaging app to a company valued at $19 billion.

Apple has blocked some features, such as the gyroscope and accelerometer, on the development kit, and the watch simulator cannot test all functions, developers said. Apple declined to comment on why developers cannot access certain features.

"The limitations are discouraging," said Matsekh, who helped develop a Watch app to control a Tesla Model S without involvement from the electric carmaker.

App designer Mark Rabo believes Apple is spurring creativity though restraint.

The challenge he believes is "not trying to take a phone app and cram it into a Watch."

Rabo is developing an app called "Revere," that ties notes to calendars. The Watch will recognize the wearer is walking into a meeting and pull up previously dictated notes about the attendees, for instance.

Apple listed about 40 apps on its website as it unveiled its smartwatch on Monday with "thousands" more in the works, it said.

Watch apps showcased by Apple so far are mostly extensions of services like Uber, American Airlines and Twitter.

"People are playing it pretty safe and right now just extending their application," Ryan Taylor, design director at Normative Design, the software firm hired by Rabo. Once the Watch is released, it will be easier to develop, he said.

Taylor points out that there has been no "killer app" so far on Android smartwatches that have been on the market for two to three years.

What Apple is "trying to do is get people to think of apps differently than an iPhone app. That cultural shift is taking a little bit more time and that's OK," he said. (Reuters)(Reporting by Malathi Nayak; Editing by Lisa Shumaker)

Asia slips as risk aversion prevails, dollar flies high

(GNN) - Asian stocks fell to a two-month low on Thursday as nervous markets recoiled on worries about an earlier U.S. interest rate hike, while such a prospect helped send the dollar to a 12-year high against the euro.

MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS was down 0.4 percent after touching its lowest since January. Japan's Nikkei .N225 dipped 0.1 percent and Australian and South Korean shares lost 1.1 percent and 0.7 percent.

Riskier assets both in the United States and elsewhere have come under pressure after Friday's robust U.S. employment data increased expectations that the Federal Reserve could raise rates as soon as June -a prospect that appeared relatively more remote a few weeks ago.


The possibility of higher U.S. yields siphoning away funds from riskier assets gave the S&P 500 its worst decline in two months overnight and emerging market stocks .MSCIEF declined to their lowest since early January. Mexico's peso MXN= weakened to an all-time low.

Renewed concern about Greece's debt talks with euro zone partners and deflationary pressures in China have also weighed on emerging markets in general. China will release industrial output, retail sales and investment data later in the day.

In currencies, the euro fetched $1.0713 EUR= after touching a 12-year trough of $1.0666. Downward pressure on the common currency increased after the European Central Bank kicked of its quantitative easing program and began its bond-buying on Monday.

"In addition to the ECB's starting its bond buying, Greek concerns are likely to weigh on the euro again this week, when there are several Greek-related events scheduled," said Masafumi Yamamoto, market strategist at Praevidentia Strategy in Tokyo.

Technical talks between finance experts from Athens and its international creditors are due to start later in the day with the aim of unlocking further funding.

The dollar was steady at 121.13 yen JPY=, pulled down from an eight-year high of 122.04 scaled overnight as the broad slide in equities favored the safe-haven yen.

Hit by the greenback's broad strength, the Australian dollar hovered close to a six-year trough of $0.7603 AUD=D4 reached on Tuesday.

U.S. crude oil posted a modest bounce after falling sharply overnight on the dollar's appreciation, which makes commodities denominated in the greenback costlier for holders of other currencies. [O/R]

U.S. crude was up 1.1 percent at $48.83 a barrel CLc1 after falling 3.4 percent the previous day.

(Reuters)(Editing by Kim Coghill)

UK's Cameron backs ex-HSBC chairman Green going before parliament -spokesman

Feb 11 (GNN) - British Prime Minister David Cameron would support HSBC's former executive chairman Stephen Green going before lawmakers to answer questions about what he knew about tax avoidance at the bank's Swiss arm, his spokesman suggested on Wednesday.

Cameron appointed Green, a British peer, to be a trade minister in 2010 and his spokesman has said he thinks Green, who is no longer in government, did a good job.

Asked on Wednesday if Cameron felt it would be useful for Green to appear before a parliamentary committee to explain what he knew about possible wrongdoing at HSBC's Swiss arm, his spokesman said it wasn't a decision for the prime minister but that he favoured people accounting for themselves.

"The prime minister's sort of point of principle, you know, is that he's always of the view wherever possible it is (desirable for individuals to testify)," Cameron's spokesman told reporters.

"He would support the idea of people coming before select committees and answering questions that parliamentarians have," he added.

So far, Green has not commented.

A panel of British lawmakers said earlier this week they planned to open an inquiry into HSBC Holdings Plc HSBA.L, after media reports that the bank helped wealthy customers dodge taxes and conceal millions of dollars of assets.

It has not yet disclosed who it would like to question. (Reuters)(Reporting by Andrew Osborn; Editing by Guy Faulconbridge)

IFR-Big three bond raters still hold sway over mortgage market

NEW YORK, Jan 30 (IFR) - Call it old-school thinking but despite all the regulatory scrutiny and public slamming of the top three global rating agencies for their roles during the last real estate bust, their rating calls on the riskiest tranches of conduit commercial mortgage bond deals are still influential enough to impact pricing outcomes on transactions.

Just last week when two competing deals priced their D classes with a 20bp differential, issuers, investors and analysts said the difference was simply because one had a Triple B minus rating from the one of the main credit rating agencies, while the other did not.

"It's certainly the easiest thing for market players to hang their hat on," one issuer of the two trades said of the pricing disparities. "It shows us the preferences of investors, and we are in this market a lot."

Simply put, the costs of doing business in the primary and repo markets for conduit commercial mortgage bond deals will be higher without a stamp of approval from one of the big three rating agencies - Moody's Investors Service, Standard & Poor's and Fitch Ratings.

The problem has being magnified on the riskiest bonds broadly being offered - namely the D class - where the act of securing an investment grade from the old guard rating agencies has become harder to come by.

When Morgan Stanley and Bank of America sold their US$1bn plus conduit a week ago, called MSBAM 2015-C20, the issuers did so with marks of Triple B minus and Triple B (low) from Morningstar and DBRS at the D class level.

Moody's was also hired to rate the trade, but like most of the deals it rated in recent months, supplied letter grades only on the deal's most bullet-proof Triple A and Aa2 securities.

So when Morgan Stanley's US$50.2m D class priced at swaps plus 380bp, versus S+360bp for a similar US$70.65m bond from Deutsche Bank and Ladder Capital that had a Triple B minus rating from Fitch Ratings, market players reacted by saying that having a top-three firm on a deal still mattered.

That partly stems from decades-old investment criteria that required at least one major rating agency on a deal before certain investors were allowed to buy into a deal.

But because little has changed in the criteria even after the crash, newcomers to the rating agency arena like Kroll Bond Rating Agency or Morningstar are still absent from the ranks of approved firms.

"Documentation and technology tend to move relatively slow on that front," one analyst said.

And in practical terms, that not only means some money managers will be barred from buying Triple B minus paper without the sign off from a major rating agency, but also that fast money accounts looking for leverage in the repo market will often be paying more.

Fast-money accounts are big buyers of Triple B minus paper from the conduits, and are known for levering up bonds on a 5.5% yielding D tranche to reach mid-teen returns.

"I don't know what the delta is (on repo) terms for a Triple B minus with or without Fitch (or) Moody's but I am sure it is something," a portfolio manager said.

Credit Suisse, for one, does not differentiate between ratings from one of the big three or from a DBRS, Kroll Bond Rating Agency or Morningstar, a person familiar with the matter said.

But many of the large US investment banks do, he said, noting that most are known to charge more for deals without Triple B minus marks from Moody's or Fitch.

WILLING AND ABLE
Fitch Ratings has stood alone for months as the only firm of the big three agencies willing, or able, to supply Triple B minus ratings.

Standard & Poor's has been largely out of the picture since the crash, and just this month agreed to a one-year ban from rating any new US conduit deals as part of a settlement with regulators, who claimed the agency misled investors in six post-crash deals.

And while Moody's has picked up the bulk of the slack, until this week, its views on anything just below the Triple A level have been absent on new-issues.

But any lingering doubts of Moody's stance of credit quality deterioration has been cleared up in a searing report issued by the agency on Thursday, which stated that bonds rated Triple B minus by others are more akin to B1, or junk status, by Moody's own metrics. [ID: nL1N0V827K]

"None of us really respect what rating agencies have had to say (since the crash)," a portfolio manager at a large money manager said in an interview following the report's release.

"But this had people paying attention for the first time in years."

He was not the only one keeping a close eye on what this all could mean for investors.

Darrell Wheeler, an analyst at Amherst Pierpont Securities, has been warning about the vulnerability of new-issue Triple B minus paper to downgrades and losses.

"If we go into a near-term recession, there is a real risk of losses at the Triple B minus level, and certainly there is concern from a downgrade perspective," he said in an interview.

But even in a downgrade scenario, Wheeler says there are sharp consequences for holders of Triple B minus paper, as deals that initially printed at S+335bp on average in 2014 will quickly widen to S+550bp.

"That's quite a kick in the pants." (Reporting by Joy Wiltermuth; editing by Shankar Ramakrishnan and Jack Doran)

China Telecom studying Mexico investment - spokesman

Jan 17 (AsiaTimes.ga) - China's third-largest carrier China Telecom is studying a possible investment in Mexico, a company spokesman said on Saturday, a day after Reuters reported that it is preparing a possible bid for Mexico's new $10 billion mobile broadband network.

The spokesman for subsidiary China Telecom Corporation Ltd. did not comment directly on the Reuters story but said in an emailed statement that China Telecom was doing a preliminary study on an investment opportunity in Mexico.

Reuters, citing sources, reported on Friday that China Telecom is looking for Mexican partners to join it in a consortium for the mobile broadband project, with up to several billion dollars of financing already secured from Chinese state-controlled banks.

The proposed network is part of a wider reform designed to break billionaire Carlos Slim's hold on the Mexican telecoms business and to improve poor broadband penetration levels. (Reporting by Christine Murray in Mexico City and Gerry Shih in Beijing; Editing by Frances Kerry)(GA, Reuters, Asia Times)

UPDATE 3-Channel Tunnel set to reopen after "smouldering load" closure

(Adds Eurotunnel comment)

Jan 17 (AsiaTimes.ga) - The Channel Tunnel operator said services could restart later on Saturday after it evacuated a shuttle train and closed the undersea crossing earlier in the day due to smoke from a lorry. Eurotunnel said that the incident, which shut the tunnel for several hours, had not caused significant damage.

Smoke detectors were set off by a "smouldering load" in the trailer of a lorry, it said, clarifying an earlier statement in which it had said the source of the smoke was unknown.

"The smouldering has now been dealt with by the fire and rescue services, and we are now working to remove that shuttle and to get services restarted again in the other tunnel this evening," a spokesman for Eurotunnel told Reuters.

A full service in both tunnels was likely to begin again on Sunday, he added, with no information on what the smouldering load was at this stage.

British police had earlier said the tunnel closure was due to a lorry fire and the Calais-Dover shuttle train had been evacuated due to the smoke. There were no injuries.

"Rail passengers are advised to expect significant delays whilst the vehicle is being recovered and fumes are cleared from the tunnels," Kent police said in an emailed statement.

Eurostar, the operator of passenger train services through the tunnel between Paris, London and Brussels, said on Twitter its passenger trains would not be running on Saturday and that all trains halted en route would return to their original stations.

It advised passengers to postpone journeys and not come to stations.

France has been on high alert since Islamist militants killed 17 people in three days of violence in Paris that began on Jan. 7 with an attack on the offices of a satirical newspaper. (Reporting by Gregory Blachier, Leigh Thomas and Sarah Young; Editing by Andrew Roche)(GA, Reuters, Asia Times)

UPDATE 1-Oil price plunge could leave helicopters sputtering

(Adds AgustaWestland comment in paragraph 27)

By: Lewis Krauskopf

Jan 15 (ATimes) - Tumbling oil prices are starting to ripple through the helicopter industry, which depends on oil companies that shuttle their crews to off-shore sites for a big chunk of its business.

Off-shore oil drilling and production in regions such as the North Sea and Gulf of Mexico have been a key source of demand for helicopter makers including United Technologies' Sikorsky unit, Finmeccanica's AgustaWestland and Airbus Helicopters. Textron's Bell Helicopter could soon become a bigger player with a new helicopter.

The oil and gas industry now accounts for as much as 40 percent of the roughly $6 billion annual sales of helicopters for civil use, making it the biggest non-military segment, according to aerospace research firm Teal Group.

While manufacturers have not indicated that the plunging price of crude has led to canceled orders or reduced production, some warning signs are emerging.

During United Technologies' annual outlook meeting last month, Sikorsky president Mick Maurer said falling oil prices would "put some short-term pressure on our commercial business." Oil and gas represents two-thirds of Sikorsky's non-military business, Maurer said last March.

The oil slide has already taken its toll on shares of helicopter transport firms, which along with leasing companies are major customers of the manufacturers. With their own fleets, these companies fly crews and material to offshore sites for oil companies. Their helicopters are also used for search-and-rescue missions and other purposes.

Since oil turned south in mid-2014, shares in the big transport firms have followed. CHC Group has dropped 70 percent, Era Group has slumped 29 percent and Bristow Group is down 24 percent. By contrast, the S&P 500 index has gained about 3 percent over that time.

"It's a pretty unsettled time in our industry right now," said CHC spokesman T.R. Reid, adding that CHC remained optimistic about long-term demand. "The industry is moving further and further offshore," Reid said.

Bristow, in an emailed statement, said: "While our growth rate may be impacted by the current market environment, Bristow is in good position to weather the downturn in oil prices."

An Era Group spokeswoman declined to comment, citing "quiet period" rules.

While oil transport firms are more likely to be hit initially if exploration projects get cancelled, leasing companies could also suffer.

Leasing companies include Waypoint Leasing, Macquarie Rotorcraft Leasing and Milestone Aviation Group, which in October agreed to be bought by General Electric Co for $1.78 billion. All declined to comment.

OIL-RICH MARKET
Sales of rotorcraft for the oil and gas industry have more than doubled since 2006, outpacing growth in the broader non-military market, according to the Teal Group. Military helicopter sales are worth about $16 billion a year.

To be sure, helicopters are only part of the business for diversified aerospace and industrial manufacturers, and other product lines, including United Tech's aerospace parts unit and Textron's Cessna jet business, stand to benefit from cheaper fuel.

But the oil industry has been by far the biggest growth market for non-military helicopter sales and many new products have been developed for this market, said Richard Aboulafia, an analyst at the Teal Group. "If (oil) prices stay around $50, there could be some real damage to these programs," he said.

Brent crude traded at $48.69 a barrel on Wednesday, near six-year lows, despite a rare 4.5 percent spike.

Between 20 to 30 percent of the demand for off-shore helicopter crew transport is tied to drilling for exploration, while the rest covers traffic to already-producing facilities, said Amy Groeschel, an analyst at IHS Energy.

Exploration and development are more vulnerable to cuts, Groeschel said, because they are tied to projects that could be canceled.

Helicopters that service oil and gas companies are generally larger and more expensive than those used for search-and-rescue missions or executive travel because they carry large crews and may need to make long trips out to sea.

"What we may see is a pause in new orders being placed," said Chris Seymour, head of market analysis for consulting firm Ascend Flightglobal.

Newly developed helicopters expected to serve the oil industry include Airbus' EC175, and Bell's 525 Relentless, which is due to make its first flight early this year.

Mike Suldo, oil and gas market specialist for Bell Helicopter, said in an email the company was not seeing any slowdown or expecting a marked dent in its business.

"We do not anticipate a significant letup, as many energy companies, operators and national governments are seeking more innovative and modern helicopters."

But analysts are more cautious. "Since a component of sales is to the oil and gas industry, it's unfortunate for the timing of the roll-out," said Brian Foley, an independent aviation consultant.

A United Technologies spokesman declined to comment when asked this week about the impact from low oil prices, citing the "quiet period" close to an earnings release.

Finmeccanica's AgustaWestland said in a statement it "has not experienced any specific negative impact" as oil prices have plunged. While it carefully monitors oil prices, "no impacts exist on our long term plans in producing helicopters, including those for the Oil & Gas market," the company said.

Airbus, which says its helicopters represent about a fourth of the estimated 2,300 rotorcraft used today for oil and gas missions, is not seeing any cancellations as a result of falling oil prices, said Christopher Grainger, vice president for oil and gas sales at Airbus Helicopters.

Grainger said in an email that Airbus expected "things to remain relatively stable" in 2015, but remained in close contact with its customers and the oil companies. "We all have to adapt accordingly." (Editing by Eric Effron and Tomasz Janowski)(GA,Reuters, Asia Times)