Wall St down, MF Global falls victim to Europe

By Edward Krudy

Wall Street closed its best month in 20 years on a down note on Monday as the failure of trading firm MF Global Holdings Ltd and new worries about Europe's debt crisis hammered financial shares.

In a sign that Europe's woes were far from over, Italian and Spanish bond yields soared, prompting the European Central Bank to buy the debt, while shares of European banks came under heavy selling pressure.

MF Global Holdings Ltd, the futures broker that made big bets on European sovereign debt, filed for Chapter 11 bankruptcy protection, making it the biggest U.S. casualty of the euro zone crisis. Trading in MF Global shares was halted.

Financial shares fell sharply. Morgan Stanley, which has tended to do poorly when fears over Europe rise, dropped nearly 9 percent to $17.64. Monday's losses marked a reversal of last week's euphoria over European leaders' deal aimed at containing the debt crisis.

"We started the day with more questions about the European Union," said Mark Grant, Southwest Securities managing director in Fort Lauderdale, Florida.

"Serious questions were raised, and then MF Global came along. MF is involved in all kinds of markets, and the fallout from them going bankrupt is unknown."

As the selloff accelerated at the market's close, the CBOE volatility index jumped over 22 percent, its biggest daily gain since mid-August.

Contributing to the downward pressure, the U.S. dollar shot up to a three-month high against the yen as the government of Japan intervened to curb its currency's appreciation, which hurt the export-based economy.

The jump in the dollar caused shares in energy and natural resources companies to fall sharply. The S&P energy index fell 4.4 percent and was the worst hit sector.

Despite the declines, the benchmark S&P 500 index was up nearly 11 percent for the month and posted its best monthly percentage gain since December 1991.

Most of that run came as European leaders moved to beef up the region's bailout fund and recapitalize its banks. But despite October's gains the S&P 500 index is flat for the year so far.

Still, many analysts believe that with a worst case scenario in Europe seemingly off the cards -- at least for the time being -- stocks could gain further as investors turn their attention to stronger-than-expected economic data in the United States and China.

The Dow Jones industrial average dropped 276.10 points, or 2.26 percent, to 11,955.01. The Standard & Poor's 500 Index fell 31.79 points, or 2.47 percent, to 1,253.30. The Nasdaq Composite Index lost 52.74 points, or 1.93 percent, to 2,684.41.

Bruce Bittles, chief investment strategist at Robert W. Baird & Co in Nashville, said the market's strong advance over the past month was leading to some selling but said the market would likely rise further, provided the S&P 500 held the top end of its recent trading range at around 1,250.

"The market had a huge run in October, so the market was overbought coming into today," he said.

Banks stocks were among the worst performing, with the KBW bank index down 4 percent, although analysts said MF Global was unlikely to be big enough to spark a systemic failure in the banking sector.

JP Morgan Chase, which, according to an MF Global court filing, has about $1.2 billion worth of claims on the brokerage, fell 5.2 percent to $34.76.

The higher greenback pressured commodity prices, with copper off 2 percent and Brent crude 0.3 percent lower. Many commodities are priced in the greenback, making a spike in dollar prices more expensive for traders in other currencies and sapping demand.

The S&P materials sector dropped 4.2 percent. Shares of Freeport-McMoRan Copper & Gold Inc lost 5.9 percent to $40.26. Aluminum company Alcoa Inc dropped 7 percent to $10.76.

"After a solid month of gains, the (higher) dollar is giving traders a reason to shy from the risk trade and take some profits," said Peter Cardillo, chief market economist at Rockwell Global Capital in New York.

Volume was moderate, with about 7.5 billion shares traded on the New York Stock Exchange, NYSE Amex and Nasdaq. Declining stocks outnumbered advancing ones on the NYSE and the Nasdaq by about four-to-one.

(Reporting by Edward Krudy; Editing by Kenneth Barry)

Germany, France back SNB chief to lead FSB: report

German Chancellor Angela Merkel and French President Nicolas Sarkozy are backing the candidacy of the head of Switzerland's central bank to lead the Financial Stability Board, a newspaper reported on Sunday.

The FSB, the G20's regulatory task force, is charged with making sure bank regulations are strong enough to prevent another financial crisis.

Heading the FSB would not require the incumbent to give up his central bank governorship. An announcement is expected at the November 3-4 G20 summit.

Hildebrand has been a vocal proponent of tougher bank regulation after the Swiss government had to bail out flagship bank UBS during the financial crisis. His credentials to chair the FSB have been boosted by Switzerland's enacting of bank regulation stiffer than the new Basel III global rules.

Hildebrand and Carney are good friends and studied together at Oxford.

The Swiss government is quietly backing Hildebrand's candidature for the FSB, though some right-wing politicians oppose it, the paper also said.

"Of course the federal council supports SNB Chairman Philipp Hildebrand's candidature for the top job at the FSB," Finance Minister Eveline-Widmer Schlumpf told the SonntagsZeitung.

But the government was doing this via diplomatic channels and not publicly, the paper also quoted her as saying.

Hildebrand has come into the crosshairs of the SVP before.

Party mastermind Christoph Blocher has called on Hildebrand to resign after the SNB posted its biggest annual loss ever last year due to currency interventions to weaken the Swiss franc.

(Reporting by Catherine Bosley; Editing by Helen Massy-Beresford)

WTO largely backs China over EU in shoe dumping case

By Tom Miles

A World Trade Organization panel largely backed China on Friday in a complaint about European Union import duties on Chinese footwear, dealing a partial victory also to European importers and retailers.

In a ruling, the panel told the European Union to bring its method on calculating anti-dumping duties into conformity with WTO rules and said the bloc had acted inconsistently with WTO law.

But it said there was no need for the EU to change the disputed tariffs because they had already expired. It also rejected the bulk of China's claims on behalf of individual Chinese shoe makers and some of its more specific complaints.

The case is the second brought by China against the EU at the WTO. In July, China won a similar victory against EU duties on what Europe said were unfairly cheap Chinese screws and bolts.

In that case, a panel condemned the way Europe assesses duties against countries it deems not to be market economies, such as China, Vietnam and Cuba.

The EU's controversial launch of duties on Chinese and Vietnamese-made leather shoes in 2006 marked deep divisions between Europe's manufacturing South and retail-heavy North. Spanish and Italian shoemakers said they could not compete against cheap Asian shoes while importers and retailers argued high-street shoppers would end up paying more for shoes.

On Friday, the European Footwear Alliance, which represents sporting goods giants such as Adidas , Puma Ecco and Hush Puppies, hailed what it called China's success and demanded EU compensation payments.

"The EU calculated and imposed the anti-dumping duties in a way which impermissibly discriminated against the vast majority of Chinese suppliers solely because they were Chinese, thus violating the cornerstone non-discrimination provision of the WTO Agreement," the alliance said in a statement.

"The report highlights ... the EU's general lack of transparency," it said. "EFA requests that the EU implement the WTO panel findings and reimburse importers those anti-dumping duties which the EU impermissibly collected over the past five years."

Both China and the EU claimed victory in the WTO's ruling on Friday.

China welcomed as a vindication the panel's rebuke of the way Europe effectively applies a single anti-dumping duty to a country rather than to individual firms if it doesn't consider that country to be a market economy -- unless the firms can prove that they are independent of the state.

"China considers the panel report to be a contribution toward consolidating the rules-based system that all WTO Members have pledged to foster," it said.

"In this spirit China looks forward to the full compliance of the Panel's recommendation by the European Union with regard to the IT (individual treatment) practice. ... China expects that the European Union will not repeat the violations of the Anti-Dumping Agreement found by the Panel."

An EU spokesman said the panel "rejected almost all of the procedural and substantive claims advanced by China."

"The panel considered the original and the review investigations conducted by the EU in the footwear case to be legal under WTO law, with the exception of few issues. And even with respect to these issues, the EU faces no implementation obligations, as the anti-dumping duties on Chinese footwear expired on 31 March 2011," EU trade spokesman John Clancy said in a statement.

Either side can appeal the ruling within 60 days.

(Reporting by Tom Miles and Juliane von Reppert-Bismarck in Brussels; editing by Stephanie Nebehay and Myra MacDonald)

Chile Copec Raises Indirect Controlling Stake In Colombia's Terpel

SANTIAGO -(Dow Jones)- Chilean fuel-and-forestry conglomerate Empresas Copec SA (COPEC.SN) increased its indirect controlling stake in Colombian fuel company Terpel to 39.1% from 26.4%, Copec said Friday.

Copec purchased a 14.4% stake in Colombian holding company Sociedad de Inversiones en Energia SA (SIE.BO), which controls Terpel, for $181 million.

Last year, Copec paid $285.5 million for a 56.2% indirect stake in Proenergia Internacional SA (PROENERGI.BO), which in turn holds a majority stake in Sociedad de Inversiones en Energia.

With the indirect stake in Terpel, Copec expanded outside Chile's borders into Colombia, Ecuador and Panama.

To comply with Chilean antitrust regulations, Copec sold Terpel's assets in Chile to the local Luksic family, through its Quinenco SA (QUINENCO.SN) holding company, for $320 million.

Copyright © 2011 Dow Jones Newswires

Greece vows to build on EU deal, people skeptical

By Renee Maltezou and Daniel Flynn

Greece vowed on Thursday to press ahead with economic reforms to capitalize on an EU deal to slash the country's debt, despite widespread anger among citizens at the prospect of years of painful belt-tightening demanded by foreign lenders.

In a bid to calm fears among Greece's 11 million people, Finance Minister Evangelos Venizelos promised there would not be further cuts to wages and pensions as a result of the agreement sealed in Brussels to halve the 200 billion euros of Greek debt in the hands of private bondholders.

The minister said that negotiations now needed to take place with banks to determine their participation in the bond swap to slash Greece's debt mountain, forecast to top 160 percent of gross domestic product (GDP) this year.

Prime Minister George Papandreou said the EU deal would help ease the burden on Greece's middle class and turn the page for the country, racked by its worst recession in four decades.

"We must continue to work intensively to change everything that offends us," Papandreou said in a televised address to the nation. "The crisis gives us the opportunity and the deal gives us the time to decide what is important for Greece."

But on the streets of Athens, Greeks tired of record unemployment and falling wages poured scorn on the EU bailout, saying that it heralded a long period of more austerity.

"What rescue? Europe has betrayed us. Can't they see we've nothing left to give?" said 85-year old George Kapsokalyvas, a public sector pensioner. "Only God can save us."

NOTHING TO CELEBRATE

Papandreou's Socialist party was reduced to just 153 members in the 300-seat parliament last week after expelling an MP who voted against labor reforms, raising expectations that further belt-tightening could trigger snap elections.

Papandreou acknowledged the deal might force Greece to temporarily nationalize some of its banks because of the writedown on their bond holdings. The chairman of Greece's sixth largest lender ATEbank, Theodoros Pantalakis, estimated Greek banks would need some 27 billion euros in fresh capital.

Without the reduction in its debt and the 130 billion euros in fresh EU/IMF funding under the Brussels agreement, Greece risked becoming the first euro zone country to go bankrupt -- sending shockwaves around global markets which threatened to swamp larger euro zone neighbors, such as Italy.

After the last-minute suspension of talks with inspectors from the EU/IMF troika in August sowed panic in financial markets, Venizelos said they would henceforth maintain a continuous presence in Greece to allow faster decision making.

The leader of the main conservative opposition party New Democracy, who has consistently refused to back Papandreou's efforts to tackle the crisis, condemned the government for relinquishing control over policy to international lenders.

"Our priority should be reestablishing economic growth...to regain our national sovereignty," said Antonis Samaras. "We have absolutely no right and no reason to give it up to anyone."

Samaras said there was nothing to celebrate in the agreement, which would reduce Greece's debt to 120 percent of GDP by 2020 -- the same level it stood at in 2009.

Ordinary Greeks also voiced resentment at the power wielded by the troika, which is demanding liberalization of Greece's highly regulated economy in return for the funds needed to stave off default.

"If these inspectors come here permanently, it will be an occupation without weapons," said Panagiotis Papadopoulos, 46, a worker at the state power corporation. "This government has succumbed."

(Additional reporting by Dina Kyriakidou, Lefteris Papadimas and Ingrid Melander in Athens and Harry Papachristou in Brussels; Writing by Daniel Flynn)

EU Calls For Medium-term Bank Debt Guarantees

FRANKFURT -- European Union leaders on Wednesday called for the creation of medium-term debt guarantees in order to avoid a credit crunch. In the joint statement issued after a meeting of all 27 EU leaders in Brussels, the heads of state said measures for restoring confidence in the banking sector are "urgently needed." The statement said guarantees "on bank liabilities would be required to provide more direct support for banks in accessing term funding (short-term funding being available at the ECB and relevant national central banks), where appropriate. This is also an essential part of the strategy to limit deleveraging actions." A repeat of 2008, when national governemnts set up liquidity programs, may not be adequate under current market conditions, the statement said. The EU leaders urged a "truly coordinated" approach, encouraging the European Commission to work with the European Banking Authority, European Central Bank and other bodies.

Copyright © 2011 MarketWatch, Inc.

U.S. restores benefits for Ivory Coast, Guinea, Niger

President Barack Obama said Tuesday the United States would once again waive import duties on goods made in the Ivory Coast, Guinea and Niger after the countries held free and fair democratic elections.

Obama issued a proclamation restoring benefits for the three countries under African Growth and Opportunity Act (AGOA), which was signed into law in 2000.

"Today's announcement is the result of rigorous review by the Obama Administration to determine whether Cote d'Ivoire (Ivory Coast), Guinea, and Niger have made progress in meeting AGOA's eligibility criteria," Trade Representative Ron Kirk said in a statement.

"We have seen progress in each of these countries, in conducting free and fair elections and taking other actions to promote democratic government and market-based economies."

Congress established AGOA with the goal of expanding U.S. trade and investment with sub-Saharan Africa and stimulating economic growth in the region.

The program, along with the Generalized System of Preferences, allows most goods produced in the AGOA region to enter the United States without duties imposed at the border.

Ivory Coast lost its eligibility in 2005 following five years of political unrest and armed conflict.

The suspension was still in place late last year when former President Laurent Gbagbo lost an election to challenger Alassane Ouattara but refused to cede power.

The five-month crisis ended when Gbagbo was ousted by forces loyal to Ouattara, who was then sworn into office.

Guinea lost its AGOA eligibility in 2010 as a result of a coup and other abuses, but later that year held its first democratic presidential elections since 1958.

Niger lost its benefits in 2009 after President Mamadou Tanja attempted to hold onto power following the end of his second term in office by dissolving the national government and changing Niger's constitution.

A military junta deposed Tanja and he committed to leaving power following democratic presidential elections.

Those elections took place, and President Mahamadou Issoufou was inaugurated in April 2011.

Last year, the United States imported about $163 million worth of goods from the Ivory Coast, $85 million from Guinea and $50 million from Niger.

(Reporting by Doug Palmer; Editing by Paul Simao)

GRAIN HIGHLIGHTS: Top Stories Of The Day

TOP STORIES: Rice Futures Climb Daily 50c Limit On Thailand Flood Damage

CHICAGO -(Dow Jones)- U.S. rice futures surged Monday on increasing fears that severe flooding will cause significant crop losses in Thailand, the world's top exporter of the grain.

STORIES OF INTEREST: Moroccan Rainfall To Boost Wheat Plantings

LONDON (Dow Jones)--Morocco's main wheat planting areas have started to receive rainfall Monday, which should boost cultivation of the winter crops, Jim Dale, a senior risk meteorologist at the British Weather Services (BWS), told Dow Jones Newswires Monday.

UK Crop Body Welcomes Chinese Government Crackdown On Fake Pesticides

LONDON (Dow Jones)--The U.K. Crop Protection Association Monday welcomed the recent pledge by the Chinese government to stamp out illegal manufacturing and trade in counterfeit pesticides.

Commodities Market Impact Weather: Mixed Midwest Harvest Pattern

OMAHA (Dow Jones)--A mixed Midwest harvest pattern, light rain in the southwestern Plains, improving trends in the southeastern U.S., favorable moisture in Argentina, variable showers in Brazil, showers across central China, additional cold in Ukraine, and late-season rain forming in Western Australia are the main weather items for the commodity trade's attention Monday.

THE MARKETS: US GRAIN AND SOY REVIEW: Climb On Broad Based Rally

CHICAGO (Dow Jones)--U.S. grain and soybean futures ended mostly higher Monday on broad based buying of commodities and equities.

US CASH GRAIN: Soy Basis Stay Firm; Light Farm Sales

CHICAGO (Dow Jones)--Cash basis levels for soybeans in the U.S. stayed strong Monday on a continued lack of selling by farmers.

ICE Canada Review: Canola Narrowly Mixed, Lags Beans

WINNIPEG (Dow Jones)--ICE Futures Canada canola contracts closed narrowly mixed Monday, lagging the CBOT soy complex to the upside as early buying interest backed away.

Copyright © 2011 Dow Jones Newswires

Canada's Carney ready for FSB regulator limelight

By Louise Egan

As a young hockey player with dreams of making it big, Mark Carney liked to get revved up before a big game by listening to AC/DC's "Hell's Bells."

The still-athletic, 46-year-old is certain to get the job, according to sources who spoke to Reuters on condition of anonymity, although he must wait for G20 leaders to give him their formal blessing at a Nov 3-4 summit in Cannes, France.

Carney, fondly described as "un-Canadian" by one Ottawa official because of a blunt and confrontational style, will replace the Bank of Italy's Mario Draghi, who takes over as president of the European Central Bank on November 1.

Carney's past as a Goldman Sachs investment banker has been a double-edged sword, as he fought to prove his loyalties lie with ordinary citizens, not his high-flying banker buddies. He clashed memorably with JPMorgan Chase & Co Chief Executive Jamie Dimon in Washington last month as the banker argued against new regulations for the financial sector.

At the same time, the financial markets savvy Carney won over 13 years at Goldman's offices in London, Tokyo, New York and Toronto has propelled his meteoric rise from the finance ministry to his current job.

The regulators say the new standards will help prevent another crippling crisis, or at least minimize the damage, and they insist the global economy itself is at risk if they get things wrong.

Bankers say the crackdown will crimp their lending and hit economic growth. They particularly oppose a capital surcharge on the biggest 28 cross-border banks, including Carney's former employer Goldman, HSBC, Deutsche Bank and JPMorgan Chase, the institutions that are considered too big to fail in today's interconnected financial world.

Carney's challenge will be to keep reforms moving on even as cracks and slippages appear, and to "name and shame" countries that don't deliver on their promises.

FIGHTER WITH A HALO

In Reuters interviews, several people who interacted with Carney during his public service career stressed two traits that will help him: he's a fighter who does not back down and he speaks the bankers' language.

Carney has the "chutzpah" needed, agrees Chris Ragan, a former special advisor at the Bank of Canada who has overlapped with Carney at the central bank and in government. "If he has a view that he holds strongly, he's absolutely prepared to fight for that. He's not a wallflower."

The FSB brings together G20 central bankers, finance ministers and regulators to craft and coordinate financial regulation in what has so far been a pretty unglamorous job.

But that could change if, as expected, the G20 gives the board additional resources and independence from the Bank for International Settlements in Basel, Switzerland, boosting its clout and making it more like the International Monetary Fund and the World Bank.

"It needs to move beyond a very Mickey Mouse operation of just 20 people," said Bessma Momani, a research fellow at the Center for International Governance Innovation at Waterloo, Ontario and a panelist on FSB governance for the Washington-based Brookings Institution.

"With the systemic problems we're dealing with we need something bigger and more substantial. We need a full-time person that is devoted and focused on the FSB mandate."

Carney intends to stay on as Bank of Canada governor, but if the revamped FSB requires a full-time chair he may have to abandon the bank before his seven-year mandate ends in 2015.

The only other serious contender for the job was Swiss National Bank's Philipp Hildebrand, a friend of Carney's from their Oxford student days. But a European official told Reuters he was certain Carney would win over his former classmate.

Finance Minister Jim Flaherty and banking regulator Julie Dickson, who sits on the FSB Steering Committee, have gone on the record saying Carney's chances are good.

Formally, it is up to the FSB plenary to choose the chairman by consensus. But sources say the negotiations are largely done behind closed doors with little transparency.

NOT JUST SOME EGGHEAD

Of all his speeches, the ones to banker audiences on financial reform have been the most sharply worded.

A few months after becoming governor in February 2008, Carney earned the wrath of Canadian bank CEOs by suggesting they were hoarding cash and not lending enough to businesses.

And while bankers often disagree with him, they respect his mettle and intellect.

A source who witnessed how Carney handled the confrontation confirmed Ragan's hunch. "He comes across very well because he is a former private sector financial guy. He understands their perspective," the source said.

Gordon Nixon, the chief executive of Canada's biggest bank, the Royal Bank of Canada, is also a fan.

"I'm very fond of him," Nixon told Reuters. "He's not just respected and admired but he's well liked as an individual... In these roles part of your responsibility is to build consensus and I think Mark brings a real personal strength to that requirement."

Other central bank governors liked Carney enough to appoint him as chair of the very influential Basel committee on global financial stability, notes David Longworth, a deputy governor under Carney until May 2010.

THE DOWNSIDE

But Carney's investment banker hustle and dominant personality have not gone over so well with some at the Bank of Canada, creating friction and bitterness.

Carney completely overhauled the senior ranks of the bank when he took the job, replacing four of five deputy governors who decide interest rates with him. On paper, decisions are made by consensus but privately, officials have reportedly joked that they always "agree" with their boss.

Carney does not suffer fools gladly and finds it hard to hide his annoyance if he dislikes a question. He has a reputation for losing his temper with bank staff, and has been known to yell at employees in front of others for minor missteps in outbursts that may include the "f" word.

In February 2009 when the bank's growth projections were far more upbeat than those of any other forecasters, Liberal legislator John McCallum asked if his outlook went "out on something of an optimistic limb."

"We don't do optimism, we don't do pessimism," Carney snapped in reply. "We do realism at the Bank of Canada. We don't do spin."

Paul Masson, a University of Toronto economist who was special advisor at the bank as Carney took over observed that Carney was "less lenient" with long-winded staff meetings. Carney is focused and informed, so "doesn't need to be told things several times," Masson said.

His communication skills proved less than ideal when in June 2008 a surprise freeze on interest rates exposed a rare disconnect with a market that had unanimously expected a rate cut. Bank economists and traders were perplexed by the sudden reticence to hint at intentions and put it down to Carney's inexperience in central banking.

His personal life, by comparison, appears simple. He is married with four young daughters and rushes home from international meetings to see the girls before bedtime or attend their soccer matches.

He still has time to run most mornings and last May finished the Ottawa marathon in three hours and 48 minutes.

IT'S AN ASSET, EH?

Being from Canada is an asset for Carney at the FSB, says Canada's banking regulator Julie Dickson, noting that international organizations often look to politically neutral countries to broker deals between the Americans and Europeans. Canada has the added bonus of getting regulation right.

"We don't go in with a lot of baggage, we've had time to reflect as well. When you're in the middle of the crisis as Europe is right now, I think it's a little harder to step back," Dickson said.

Nixon agrees, "Given the way the world has unfolded, I would say that being from Canada is not a negative. I think the world looks at the Canadian marketplace and the governance within the Canadian marketplace in a very positive vein."

Canadian bankers, who have long complained that tougher domestic rules put them at a disadvantage, also welcome the idea of one of their own at the top.

(With additional reporting Cameron French in Toronto and Emma Thomasson in Zurich; Editing by Janet Guttsman, William Schomberg and Jeffrey Hodgson)

LyondellBasell Reports Fire At Houston Refinery -Filing

HOUSTON -(Dow Jones)- A small fire at LyondellBasell Industries' (LYB) refinery in Houston has not affected operations, the company said Saturday.

Lyondell had been demolishing a de-commissioned chemical unit at the 268,000 barrel-a-day refinery when an insulation fire broke out around 11:30 p.m. local time Friday, Lyondell spokesman David Harpole said. The fire was contained in the structure and did not impact operations at the refinery, Harpole said.

No injuries were reported, Harpole said. Lyondell continues to monitor the air around the site but has so far not found high concentrations of pollutants.

Lyondell's Houston refinery, located on the banks of the Houston Ship Channel, has the ability to process heavy high-sulfur crude oil into gasoline, low-sulfur diesel, heating oil, jet fuel, olefins feedstocks, aromatics, lubricants and petroleum coke.

Copyright © 2011 Dow Jones Newswires

TECH STOCKS: Chips, Seagate Highlight Tech Rally

SAN FRANCISCO (MarketWatch) -- Technology shares were mostly in positive territory Friday, propelled by rising shares of Seagate Technology, SanDisk Corp and Altera Corp.

The Nasdaq Composite Index (RIXF) rose 1.5% to close at 2,637. The benchmark ended the week down 1.1%.

Leading the rally were shares of Seagate (STX) which jumped 27.9% to close at $15.42 as analysts saw the hard-disk drive maker benefitting from the disruption in the operations of rival Western Digital (WDC) as a result of the flooding in Thailand.

"With competitor Western Digital's capacity severely impaired by the Thai floods and looking unlikely to recover until at least the fourth quarter of its fiscal year 2012 ... we believe Seagate has the opportunity to decisively gain significant market share and materially improve gross margins in upcoming quarters," ThinkEquity analyst Rajesh Ghai said in a note.

Shares of SanDisk (SNDK) added 9.4% to close at $49.76 after the chip maker posted better-than-expected results.

"SanDisk continues to execute," Lazard Capital analyst Daniel Amir said in a note. "Results yesterday confirmed our positive thesis on SanDisk."

Also powering the rally were shares of Altera(ALTR) which traded up 12.2% to close at $37.05.

The chip company issued a softer-than-anticipated guidance, but Citigroup analyst Glen Yeung speculated that the company was being conservative as he advised clients to "buy the current pullback."

"Based on the plethora of opinions on earnings calls and off, we feel confident in asserting that the consensus opinion amongst companies is that somewhere in the November-February timeframe a bottom will be reached," Yeung wrote.

The view of a bottom for chips appeared to lift the rest of the semiconductor sector as the Philadelphia Semiconductor Index (SOX) rose 2.3%.

Other major chip names saw their shares post gains, including Intel Corp.(INTC) , Advanced Micro Devices(AMD) and Texas Instruments (TXN).

Meanwhile, shares of Synaptics Inc (SYNA) , which develops touchscreen and touchpad systems, jumped 19.1% to close at $32.18.

Sterne Agee analyst Shaw Wu upgraded the stock's rating to buy from neutral saying "there is value in its portfolio of 260 patent assets in the touchscreen space that has become important in the patent wars."

On the other hand, shares of Microsoft Corp. (MSFT) edged higher by 0.4% to close at $27.16. Late Thursday, the software giant reported higher earnings on strong corporate sales.

"While some might regard Microsoft 's results as only being in line with expectations, we see the results as a good showing in what we continue to view as a tenuous macro backdrop," J.P. Morgan analyst John DiFucci said in a note.

Shares of Freescale Semiconductor (FSL) slipped 3% to close at $11.79 after the company reported a loss.

BMO Capital downgraded the stock to market perform from outperform, saying "We believe Freescale will continue to have a difficult time delivering on its earnings per share growth story."

Also in the red were shares of Compuware Corp. (CPWR) which lost 3.3% to close at $8.56. The company lowered its full-year and fiscal third-quarter earnings outlook late Thursday.

Copyright © 2011 Dow Jones Newswires

Second Euro-zone Crisis Summit Set For Wednesday

FRANKFURT -- This Sunday's summit meeting of euro-zone leaders will be followed by a second meeting no later than Wednesday, the Associated Press reported Thursday. The plan for a second gathering comes as prospects for leaders to reach a detailed agreement on leveraging the region's bailout fund and agreeing on larger writedowns on Greek government debt for private bondholders at the Sunday summit in Brussels faded amid apparent disagreements between France and Germany.

Copyright © 2011 MarketWatch, Inc.

Chevron CEO Praises US Oil Drilling Agency, A Frequent Target Of Criticism

WASHINGTON -(Dow Jones)- Chevron Corp. (CVX) Chief Executive John Watson had some kind words Wednesday for the U.S. agencies that oversees offshore oil drilling, breaking ranks with many of his colleagues in the oil and gas industry who routinely blister the agencies for the pace at which they issue new drilling permits.

While generally critical of the U.S. government's energy policy--and particularly unhappy with efforts to strip the oil industry of certain tax breaks it enjoys--Watson said the Interior Department's offshore agencies are "working very hard" to process drilling applications for companies looking to explore or drill in the oil-rich Gulf of Mexico.

"I think we have civil servants that are working very hard to process the permits," Watson said to reporters following a speech at the Peterson Institute for International Politics.

The pace of permitting has become a hot-button issue among Republican and Gulf Coast lawmakers, as well as oil industry representatives. Following the adoption of new drilling standards, they have routinely accused the offshore drilling agencies of stalling on new permit applications.

Watson also defended Michael Bromwich, the director of Interior's Bureau of Safety & Environmental Enforcement, and a frequent target of the oil and gas industry's criticism.

"I don't believe that Director Bromwich and others are slow-walking permits," Watson said.

Bromwich joined the offshore bureau in the wake of the Deepwater Horizon spill and played a key role in developing new drilling standards. He also oversees permitting activity.

While acknowledging that the permit process "can be onerous at times," Watson said Chevron has been able to get approvals for its projects. "We have had to adjust our expectations around timing. But all our equipment is busy," he said.

Watson reserved his harsh comments for the Obama administration and some Democrats for proposing to repeal billions of dollars of tax credits currently awarded to the oil and gas industry.

Watson said these efforts amounted to tax increases that were "punitive" and "selective." He said it was unwise to raise taxes on an industry that could create jobs.

On Tuesday, more than a dozen U.S. senators urged the "Super Committee" looking at ways to reduce the federal deficit to repeal more than $21 billion in tax breaks enjoyed by the five largest oil companies, including Chevron.

Copyright © 2011 Dow Jones Newswires

US Court Says Grupo Mexico Must Pay $1.3 Billion To Southern Copper

MEXICO CITY -(Dow Jones)- A U.S. court has ruled that Mexican mining company Grupo Mexico SAB (GMEXICO.MX) must pay $1.3 billion to its Southern Copper Corp. (SCCO) unit because Grupo Mexico overvalued a third mining company, Minera Mexico, that it merged with Southern Copper in 2005 when it joined its Peruvian and Mexican mining operations.

Grupo Mexico said Monday it will appeal the ruling by the Delaware court.

A Chancery Court judge said the value of the Minera Mexico unit was inflated when compared to the value of the publicly listed Southern Copper Corp., which at the time was named Southern Peru. Southern Peru paid for Minera Mexico in stock in a transaction that increased Grupo Mexico's stake in Southern Peru.

In its ruling last Friday, the court said Grupo Mexico may satisfy the judgement by returning stock to Southern Copper equivalent in value to the award plus simple interest.

In response to the ruling, Grupo Mexico said it considered that the decision wasn't in accordance with Delaware law or with the evidence presented in the case, and imposed standards that would make such corporate operations impossible to carry out. Grupo Mexico owns more than 80% of Southern Copper.

Grupo Mexico's B shares traded on the Mexican stock market were down 4.4% recently amid a broad market decline.

Copyright © 2011 Dow Jones Newswires

Reliance Industries 2Q Net Profit Climbs 16%

--Reliance Industries 2Q net profit come in roughly in line with estimates

--Reliance Industries 2Q sales rose to INR785.69 billion

--Gross refining margin of $10.10/barrel slightly disappoints

--Reliance says it has received all payments that were due from BP; production-sharing contracts under deal have been revised and submitted to government for approval

(Adds earnings details, beginning in the fifth paragraph.)

MUMBAI (Dow Jones)--Reliance Industries Ltd. (500325.BY) Saturday posted a 16% rise in second-quarter net profit mainly helped by higher refining margins that offset a decline in its exploration business.

The refiner and explorer's net profit for the July-September period rose to INR57.03 billion ($1.16 billion) from INR49.23 billion a year earlier.

The quarterly profit was roughly in line with the average estimate of six analysts polled by Dow Jones Newswires, who expected Reliance Industries to post a net profit of INR57.42 billion.

Sales rose to INR785.69 billion from INR574.79 billion.

However, Reliance Industries' gross refining margin was slightly below expectations. It averaged $10.10 a barrel in the second quarter, up from $7.90 a barrel a year earlier, while analysts expected GRMs of as much as $11 a barrel.

"Our first-half financial performance has been consistent. The increase in profits was largely driven by improved performance in the refining and petrochemicals business," Mukesh Ambani, chairman and managing director, said in a statement.

Reliance Industries is India's largest company by market value and accounts for about a third of the country's refining capacity. Its Jamnagar refining complex in western India is the world's largest with a nameplate crude processing capacity of 1.24 million barrels a day.

It processed 17.1 million tons of crude in the second quarter and its refineries operated at 110% capacity, the company said.

Reliance Industries has three primary businesses of refining, exploration and petrochemicals. Second-quarter revenue from refining rose 37.1% to INR680.96 billion, petrochemical revenue rose 39.5% to INR210.66 billion, but revenue from oil-and-gas production fell 17% to INR35.63 billion.

The company had cash and cash equivalents of INR614.90 billion as of the end of September.

The company, led by billionaire Mukesh Ambani, has been accumulating cash reserves, raising concern among investors that it lacks a formal investment plan and growth momentum.

It recently concluded a $7.2 billion deal with BP PLC (BP, BP.LN) under which it sold a 30% stake in 21 oil-and-gas exploration blocks to the British explorer.

Reliance said it has received all the payments that were due from BP, with the final installment of INR146.90 billion received on Oct. 3. It said all the production-sharing contracts under the deal with BP have been revised and submitted to the government for approval.

"The integration process is currently under way, and the joint teams are evolving strategies to operate across the gas value chain in India from exploration, development, distribution and marketing," Reliance said. They are also trying to raise D6 gas output.

Reliance said its Infotel Broadband Services unit is in the process of setting up a 4G broadband wireless network and finalizing arrangements with global players.

Order free Annual Report for BP plc

Visit http://djnweurope.ar.wilink.com/?ticker=GB0007980591 or call +44 (0)208 391 6028

Copyright © 2011 Dow Jones Newswires

Paris G20 finance chiefs closing remarks

PARIS (Reuters) - G20 finance ministers and central bank governors put strong pressure on euro zone leaders at a two-day meeting in Paris to come up with a convincing solution to the bloc's debt crisis and avert the risk of a fresh global recession.

Following are key quotes from closing news conferences on Saturday by G20 chair France and other delegations:

CANADIAN FINANCE MINISTER JIM FLAHERTY

"The risk of recession would be increased dramatically were the Europeans to fail to accomplish the goals they have set for themselves on October 23, followed by Cannes at the beginning of November."

U.S. TREASURY SECRETARY TIMOTHY GEITHNER

On how the euro zone plan is progressing:

"Based on my extensive discussion with them over the last six weeks or so and looking at what they're saying in public too, I am encouraged by the direction and by the speed at which they're moving now and by the shape of the strategy. But as you know, it's all in the detail and it's very hard to judge what in fact will happen until you see its basic shape."

"The leaders of Germany and France have committed publicly to put this framework in place over the next two weeks, before G20 leaders convene in Cannes. They clearly have more work to do on strategy and details, but when France and Germany agree on a plan together and decide to act, big things are possible."

On the IMF:

"The IMF has a substantial arsenal of financial resources, and we would support further use of those existing resources to supplement a comprehensive, well-designed European strategy alongside a more substantial commitment of European resources.

On imbalances:

"A successful global response would be strengthened by more progress toward domestic demand led growth in the major emerging market economies and a more rapid pace of exchange rate appreciation by China."

FRENCH FINANCE MINISTER FRANCOIS BAROIN

On the euro zone's debt crisis:

"I have to tell you in truth that the results of the European Council on October 23 will be decisive."

On discussions with Berlin on Greek debt:

"We've made good progress with the German finance minister. There are points of agreement which are emerging rather clearly and we will have an agreement on this point, but it would be premature to say what accord will emerge on Oct 23."

On IIF opposition to more losses for Greek creditor banks:

"We will find an answer. You know the French position which is quite clear: we will refuse any solution that leads to a credit event."

On banks and liquidity:

"Central banks will continue to supply banks with necessary liquidity, we will ensure banks have the necessary capital. This is a very important message central banks are sending."

"We have decided on a very substantial strengthening of financial regulation."

"We prepared ambitious decisions for Cannes including a list of systemically important financial institutions."

SAUDI CENTRAL BANK GOVERNOR MUHAMMAD AL-JASSER

"Not only Saudi Arabia but members of the G20 are convinced that the challenge facing the global economy is the European challenge in the short term."

"However, we felt from the interventions of our European colleagues that they appreciate the gravity of the situation and they are determined to do what it takes to safeguard the European economy and financial markets."

"They told us decisions will be taken at the October 23 summit that will reassure Europeans first and the rest of the world second that Europe is not only able but also willing to do what it takes to safeguard European markets. I take what they told us at face value and I have no reason doubt the determination."

BANK OF CANADA GOVERNOR MARK CARNEY

"We have, since Washington, been somewhat encouraged by the seriousness with which European officials are taking the situation, are understanding the situation, the measures that are under consideration for the banking system and to build a firewall around the affected sovereigns, but none of this matters till actions are actually taken, and so we await with great anticipation what actions are announced in the coming weeks."

IMF MANAGING DIRECTOR CHRISTINE LAGARDE

On liquidity measures:

"A number of precautionary measures were set up in the crisis triggered by Lehman Brothers, in particular, flexible credit lines. That's the direction we need to go in, in particular by focusing on short-term liquidity instruments for non-consenting victims of the economic crisis."

EU ECONOMIC AFFAIRS COMMISSIONER OLLI REHN

"This meeting has been a very important stepping stone toward the Cannes summit. The communique of this meeting rightly underlines the urgency and need for decisive action to overcome the sovereign debt crisis and restore confidence in our economies."

"The communique welcomes, since the Washington meeting three weeks ago, that in the EU the reform of the economic governance has been concluded."

"It is a very important reform ... It will help us to prevent future crisis"

"Beyond these positive steps, and in order to break the vicious circle, ... we put last week on the table a comprehensive plan, a road map. I am pleased to say that this plan received today a warm welcome from our G20 partners"

JAPANESE FINANCE MINISTER JUN AZUMI

"Europe needs to get its act together because unless the crisis is put to an end, it will start to affect emerging economies which have enjoyed strong growth."

"The G20 reconfirmed in the communique that excessive exchange rate volatility will have adverse effects on economic stability. Japan's view on currency moves was thus taken into account."

BANK OF JAPAN GOVERNOR MASAAKI SHIRAKAWA

"Japan's economy is picking up but we're focusing on downside risks given heightening global economic uncertainty and the effect of yen rises."

"Tackling Europe's debt problem will contribute to global economic stability and (help ease) yen rises. I've urged European nations to make strong efforts in dealing with the problem."

SOUTH KOREAN FINANCE MINISTER BAHK JAE-WAN

"We expect inflationary pressures to ease significantly and the economy is doing fine."

He said South Korea's official inflation target for 2011 was 4 percent and that he was not worried about capital outflows due to global economic turbulence.

(Reporting by Paris G20 team)

ArcelorMittal: EU Flat Steel Demand To Take 5 Years To Recover

PARIS -(Dow Jones)- ArcelorMittal (MT), the world's largest steelmaker, doesn't expect European demand for hot-rolled coil, a type of flat steel product, to recover to the high levels seen prior to the financial crisis of 2008-09 until 2016, a senior ArcelorMittal executive said Friday.

"To come back to previous levels, it will take five years," Robrecht Himpe, Executive Vice President of Arcelormittal's Flat Carbon Europe division told Dow Jones Newswires Friday. He said the company had initially expected HRC demand to only take two to three years to recover and as a result had kept its two Liege blast furnaces on temporary idle in hopes of returning them to operation once demand recovered.

The world's largest steelmaker Friday confirmed plans to permanently close two blast furnaces at Liege, Belgium due to weak demand and structural over capacity in Northern Europe.

Himpe said the Liege plant has been operating at an effective loss if the Liege steelworks is benchmarked EUR50 per metric ton below its most productive steelworks such as the ones in Ghent, Belgium and Dunkerque, France. The benchmark is based on earnings before interest, taxes, depreciation and amortization per ton of hot rolled coil produced.

- By Alex MacDonald, Dow Jones Newswires; +44 (0)7776 200 924, alex.macdonald@dowjones.com

Copyright © 2011 Dow Jones Newswires

Glencore May Give $900 Million Loan To Bakrie -Reuters

Glencore International PLC (GLEN.LN) is close to agreeing to lend $800-$900 million to Indonesia's PT Bakrie & Brothers (BNBR.JK) to help the holding company of Bakrie Group refinance debt of $1.35 billion and stave off a potential default, Reuters reported Thursday, citing sources with knowledge of the deal.

The deal involves Glencore receiving additional marketing rights on coal produced by Bakrie Group-controlled Bumi PLC (BUMI.LN). The loan will be backed by part of the Bakrie Group's 47% stake in the coal miner, the sources told Reuters.

Glencore will have the option of turning the loan into an equity stake in Bumi if Bakrie can't repay the debt, one source said, according to Reuters.

The agreement could be announced as early as Friday, another source said.

Bakrie and Glencore declined comment to Reuters.

Full story at http://www.reuters.com/article/2011/10/13/us-glencore-bakrie-idUSTRE79C4AK20111013

-Dow Jones Newswires; 212-416-2900

Copyright © 2011 Dow Jones Newswires

Onyx, Bayer Reach Deal Over Access To Cancer Drugs

--New agreement with Bayer means Onyx would keep current Nexavar rights if there is change of control

--Onyx gets $160 million payment for Nexavar royalty rights in Japan

--Onyx also gets access to experimental cancer drug regorafenib

(Updates throughout with details on agreement, analyst company, background.)

Onyx Pharmaceuticals Inc. (ONXX) has reached an agreement with Bayer AG (BAYRY, BAYN.XE) ensuring Onyx will retain profit-sharing and co-promotion rights to its main product, the cancer drug Nexavar, if Onyx is bought out by another company.

The restructured partnership also calls for Bayer to pay Onyx $160 million, and potentially up to $15 million later on, for Nexavar royalty rights in Japan. Additionally, the deal resolves a lawsuit Onyx filed in 2009 seeking access to an experimental cancer drug called regorafenib by giving Onyx a fifth of future sales, which the company would retain if there is a change in control.

Onyx shares recently traded up 6.3% at $33.92. The reworked deal clarifies some big questions for any potential suiters that might have interest in the San Francisco-based biotechnology firm, which has a market capitalization of about $2 billion.

"These new agreements strengthen the collaboration and provide Onyx the opportunity to participate significantly in the market potential of regorafenib," said N. Anthony Coles, president and chief executive at Onyx, in a release.

Onyx and Bayer have long collaborated over Nexavar, which accounts for all of Onyx's sales to date, but their agreement previously said Onyx would get royalty-based payments if it were bought out, and that the new company would lose co-promotion rights. But under the deal announced Wednesday, Onyx would keep the 50-50 profit-sharing arrangement plus co-development and co-promotion rights, Onyx said in a filing with the Securities and Exchange Commission.

The co-promotion part is key because any potential acquirer would want the ability to sell the drug, and not just collect royalties, analysts said.

Onyx has not said it is for looking for a buyer, but mid-sized biotechnology firms have been sought-after targets as bigger pharmaceutical companies look to diversify their offerings and defray the impact of patent expirations on key drugs. Morningstar considers Onyx among the top 20 takeover candidates in biotechnology and specialty pharmaceuticals for 2011, analyst Lauren Migliore said.

Regorafenib, in late-stage studies for two types of cancer, is at least a couple years from going on sale, pending regulatory approval. But there were questions about Onyx's access if the drug does reach the market; Onyx sued Bayer in 2009 seeking monetary damages and a court ruling giving it rights to the drug.

Under the new agreement, which resolves the lawsuit, Bayer will pay Onyx a royalty of 20% of future worldwide regorafenib sales in human oncology, and Onyx or a future buyer would retain rights to royalties if there is a change of control. Bayer would, however, would be able to terminate Onyx's co-promotion rights for regorafenib in such a circumstance.

Another key question for Onyx, which could be answered by late November, is whether the Food and Drug Administration will give the company's application for a blood-cancer treatment a priority review that could yield a decision in the first half next year.

Copyright © 2011 Dow Jones Newswires

Canada's International Reserves Up $5 Million In Oct 8 Week

OTTAWA -(Dow Jones)- Canada's official international reserves rose $5 million in the week ended Oct. 8, the Bank of Canada reported.

At Oct. 8, the official international reserves totaled $63.723 billion, compared with $63.718 billion at Sept. 30.

The latest reserves included:

-U.S. dollars, $31.543 billion;

-other foreign currencies, $19.082 billion;

-gold, $180 million;

-special drawing rights, $9.172 m/billion;

-reserve position in the International Monetary Fund, $3.746 billion.

All reserve figures are reported in U.S. funds.

Copyright © 2011 Dow Jones Newswires

BASE METALS HIGHLIGHTS: Top Stories Of The Day

TOP STORIES: Australia Government Approves BHP's Expansion Of Olympic Dam

SYDNEY -(Dow Jones)- Australia's government Monday gave the green light for a massive expansion of the BHP Billiton Ltd. (BHP.AU) operated Olympic Dam mine in South Australia state but applied more than 100 stringent conditions, from protecting the region's fish to maintaining the landscape.

Talks To End Labor Row At Zambia's Chambishi Mine Deadlocked-Union

Talks to resolve a dispute between management and miners at Chinese-owned Chambishi Copper Mine broke down Sunday after the two sides failed to agree on a new wage structure being demanded by the workers, a union official said Monday.

UPDATE: Base-Metal Investors Worry Over Chinese Demand

LONDON (Dow Jones)--The focus of base-metal investors is back on China, the world's top metals consumer, as industry participants worry over the outlook for demand there ahead of key trade data expected later in the week.

STORIES OF INTEREST: Peru's Antamina CEO: Mine Expansion To Up 2012 Output-Report

LIMA (Dow Jones)--Peruvian base-metals miner Compania Minera Antamina SA expects to increase production next year following the completion of a large-scale expansion at its mine, company Chief Executive Abraham Chahuan told business newspaper Gestion.

Russia Jan-August Copper, Nickel Exports Down On Year

MOSCOW (Dow Jones)--Russia exported in 83,200 metric tons of copper in the first eight months of the year, 73.5% less than in the corresponding period last year, the federal customs service said Monday.

Exxaro To Stop Production At Zincor At End Of Year

JOHANNESBURG -(Dow Jones)- South African mining company Exxaro Resources Ltd. (EXX.JO, EXXAY) said Monday that it will begin to shut its Zincor refinery in the country in a move to leave the zinc business.

Zambia Chambishi Copper Miners End Strike After Winning 100% Pay Rise

Miners at Chinese-owned Chambishi Copper Mine ended a six-day strike Monday after management offered them a 100% pay rise, union officials said.

MARKETS: BASE METALS: Comex Copper Rises On Euro-Zone Optimism

NEW YORK (Dow Jones)--Copper's rebound extended to a fourth session Monday, as optimism about Europe's debt crisis spurred a charge into risky assets.

BASE METALS: LME Metals Close Higher As Euro, Equities Rally

LONDON (Dow Jones)--Base metals closed firmly higher on the London Metal Exchange Monday as they and the euro, together with world equity markets, took a strong boost from the latest round of talks aimed at resolving the European debt crisis.

BASE METALS: Shanghai Metals Catch Up LME; Econ Data In Focus

SHANGHAI (Dow Jones)--Base metals on the Shanghai Futures Exchange rose Monday after a week-long holiday, catching up with gains on the London Metal Exchange last week.

matt.day@dowjones.com

Copyright © 2011 Dow Jones Newswires

BofA to pay $11 million total to Price, Krawcheck

(Reuters) - Bank of America Corp said it will pay $11 million total to ousted executives Joe Price and Sallie Krawcheck, according to separation agreements filed by the bank Friday.

Krawcheck, a former Citigroup Inc executive who came to Bank of America in 2009, will receive a one-time payment of $5.15 million, while Price, a Bank of America veteran, gets $4.15 million. Both will also receive $850,000 in return for releasing claims against the bank and other considerations.

The Charlotte, North Carolina, bank last month eliminated the executives' positions as part of a efficiency initiative called Project New BAC.

(Reporting by Rick Rothacker in Charlotte; Editing by Gary Hill)

Dow Chemical, Saudi Aramco Mega JV To See $10 Billion Revenues In 5 Yrs

DHAHRAN, Saudi Arabia (Zawya Dow Jones)--Dow Chemical Co.'s (DOW) top executive said Saturday a planned mega chemical joint venture with Saudi Arabian Oil Co. would generate revenues to the tune of $10 billion within five years, making the company the equivalent of a Fortune 250 company.

"Five years from now, we expect the venture to be the equivalent of a Fortune 250 company, generating over $10 billion in annual revenue while spurring job growth in the kingdom and abroad," Andrew Liveris, Dow's chairman and chief executive officer, said at the signing ceremony of the project in Dhahran in the Saudi Arabia's Eastern Province.

State-run Aramco, the world's biggest oil company and Dow signed an agreement earlier Saturday to build one of the world's largest chemicals plants in the oil-rich desert kingdom.

The partners will spend around $12 billion on building the plant, located at Jubail on Saudi Arabia's Persian Gulf coast, producing high-margin chemicals and plastics for fast-growing Asian and Middle East markets, with another $8 billion earmarked for third-party investors and contingencies.

Construction of the 26 plants that will make up the complex--known as Sadara Chemical Co.--is scheduled to begin immediately, with first output due to come on line in the second half of 2015 and full operation scheduled for the following year.

Sadara will produce polyeurethanes, propylene oxide, propylene glycol, elastomers, linear low-density polyethylene, low density polyethylene, glycol ethers and amines.

Copyright (c) 2011 Dow Jones & Co.

Copyright © 2011 Dow Jones Newswires

U.S. Refinery Status: ConocoPhillips Okla -2-

The following table lists unplanned and planned production outages at U.S. refineries as reported by Dow Jones Newswires. The information is compiled from both official and unofficial refining sources and doesn't purport to be a comprehensive list.

Turnaround maintenance is under way at ConocoPhillips' (COP) oil refinery in Ponca City, Okla., company spokesman Rich Johnson said on Oct. 6. While he was not able to provide details about the duration and specific units involved, a local news report referred to the work as ConocoPhillips' biggest turnaround in the company's history.

BP PLC's (BP, BP.LN) oil refinery in Ferndale, Wash., on Oct. 7 was added to the list of area-refineries performing maintenance. Work started on Oct. 3. A hydrocracker, two delayed coking units, two reformer units are among several units slated for maintenance. A person familiar with operations at the refinery said catalyst regeneration will also take place.

PBF Holding Company LLC and Delaware City Refining Company LLC on Oct. 7 announced the successful restart of the Delaware City petroleum refinery, which was closed down by previous owners in 2009. Initial operations began in June 2011 and the refinery is now fully operational.

Unconfirmed reports on Oct. 5 said Sunoco Inc. (SUN) began two weeks of crude unit, reformer unit and sulfur recovery unit maintenance at its Marcus Hook, Penna., refinery.

Chevron's (CVX) Bay-area refinery in Richmond, Calif., started 4-6 weeks of scheduled maintenance on unspecified units, the company said on October 4. Traders in the region said the plant's crude unit will be worked on during the time frame.

Valero Energy (VLO) on Oct. 4 said scheduled turnaround maintenance got under way in late-Sept. at its Three Rivers, Texas, refinery crude unit and FCCU. The work was originally scheduled to start in Oct.

Alon USA (ALJ) said on Oct. 4 that power was restored quickly following an outage on September 28 and that all process units were in operation.

Pasadena Refining Systems Inc. said on Oct. 4 the cause of a crude unit fire on Sept. 30 at its Pasadena, Texas, refinery is still under investigation and that damage assessment continues. The refinery remains off-line with no estimate on restart.

Exxon Mobil Corp. (XOM) on Oct. 4 reported the end of turnaround maintenance at a Baytown refinery Flexicoker unit. It is the last of several process unit to return to service after turnaround work that began in mid-July.

Planned maintenance activity at a crude unit, reformer unit and coker unit in October at Hovensa's oil refinery on the U.S. Virgin Island of St. Croix isn't expected to affect the company's ability to meet customer commitments, the company said on Oct. 3.

Tesoro Corp.'s (TSO) refinery in Anacortes, Wash., began maintenance at an unspecified process unit on Oct. 1, the company said on Oct. 3. Traders doing business in the region said work involves the plant's key gasoline-making fluid catalytic cracking unit. The work wasn't expected to affect Tesoro's ability to meet regional supply commitments, traders said on Oct. 3.

ExxonMobil Corp. (XOM) on Oct. 3 said operations at its oil refinery in Billings, Montana, were nearing normal operations and should be at planned rates very soon. Rates were reduced on July 1 when the Silvertip crude oil pipeline leaked about 1,000 barrels of crude oil into the Yellowstone River.

Total SA (TOT) is performing maintenance work for six weeks at its 232,000 barrel-a-day refinery in Port Arthur, La., that includes work on the crude distillation unit and fluid catalyst cracker, a source familiar with the refinery said Sept. 21.

For more detailed information, search Dow Jones Newswires using the code N/REF. Operator Refinery Capacity Description Restart (in 000s bbl/day) UNPLANNED CANADA CARIBBEAN EAST COAST GULF COAST Alon Big Spring 67.0 Power restored quickly after TX Sep 28 outage; all process units in operation, the company said on Oct. 4. Pasadena Pasadena 100.0 Sep 30 crude unit fire still Refining TX under investigation; damage assessment continues. Refinery remains off-line, the company said on Oct. 4. MIDWEST ROCKIES Sinclair Sinclair 74.0 Refinery at reduced rates fol- WY lowing fires at CDU on Sept. 3 and Sept. 4. Repairs and damage assessments underway. No update the company said on Oct. 6. Exxon Billings, 60.0 Operations nearing normal rates MT after being reduced due to rup- tured Silvertip pipeline on July 1, the company said on Oct. 3. WEST COAST Tesoro Anacortes, 120.0 FCCU shut Oct. 1 for maintenance WA traders said on Oct. 3; no further details provided. PLANNED CANADA CARIBBEAN Hovensa St. Croix 350.0 Planned maintenance at a crude unit, reformer and coker unit in Oct. will last 2-4 weeks, company said on Oct. 3. EAST COAST Conoco Trainer, PA 185.0 Crude processing halted; operations winding down, the company said on Sept. 30. The refinery will be shuttered in six months if not sold. PBF Delaware City 190.0 All refinery units operation- Oct 7 DE al, the company said on Oct. 7. Some units came on-line after major overhaul in June; the hydrocracking unit was the last unit to be restarted. Sunoco Philadelphia 335.0 Refineries up for sale on Marcus Hook 190.0 Sept. 6; process units will be shuttered in July 2012 if no buyer is found. Sunoco Marcus Hook 190.0 Crude unit, reformer unit Oct 16 PA and sulfur recovery unit shut for 2 weeks work, traders on Oct. 3. Not confirmed. GULF COAST Exxon Baytown, TX 560.6 Turnaround ends at Flexicoker Oct 4 Mobil Unit, the company said on Oct. 4. It is the last of several units to return to service from the turnaround that began mid-July. Motiva Port Arthur 285.0 Expansion project to increase 1Q TX throughput capacity by 325,000 2012 b/d, to 610,000-b/d, slowed. Completion now seen 1Q 2012, from 2010. Total Port Arthur 232.0 Several units, including crude USA TX unit and FCCU shut six weeks turnaround maintenance, a source familiar with the plant said on Sept. 21. Valero Corpus 315.0 Crude & coker unit turnaround Oct. Christi, TX to start in Oct. for three 2011 weeks. Valero McKee TX 170.0 Vacuum unit turnaround planned for first half of 2012, company said. Expansion project announced March 2011 to increase crude oil throughput by 25,000 b/d to 195,000 b/d. Valero Norco, LA 185.0 Hydrocracker project will pro- 2013 ceed and be completed in late 2013, the co. said on 7/27/10. Upgrade project to build 2012 a new diesel hydrotreater unit moved from 2010 to 4Q 2012. Valero Port Arthur 325.0 Hydrocracker project will pro- 2012 TX ceed and be completed in late 2012. Valero Three Rivers 100.0 6 weeks of turnround work under Nov 6 TX way since late-Sep at FCCU and (est) crude unit. This work was ad- vanced from an early-Oct start. MIDWEST BP Whiting, IN 405.0 Turnaround at Pipestill 12 de- layed by 3 months; it was sup- posed to begin in November, a source said on March 25. Cenovus Roxana, IL 306.0 Coker and refinery expansion Q4 2011 (Conoco/WRB) project on track for comple- tion 4th Q 2011, the company said on July 26. Conoco Ponca City 187.0 Turnaround maintenance under way week of Oct. 3, the co. said on Oct. 6. No details pro- vided. CVR Coffeyville 115.7 Periodic turnaround will take 2012 KS place in two phases beginning in Fall 2011 and completed in Spring 2012. Husky Lima, OH 160.0 15-days of maintenance planned at

Energy at aromatics unit in the fall of 2012. Husky Toledo, OH 140.0 Minor maintenance planned in 4Q Energy 2011, the company said on July 28; no details provided. Tesoro Mandan, ND 58.0 Total crude-oil processing capa- 2nd Q city to increase by 17% to 68,000 2012 b/d by 2nd quarter 2012. WEST COAST BP Ferndale, WA 225.0 Seasonal turnaround maintenance started Oct. 3. Hydrocracker, 2 reformers, 2 delayed coking units, listed among units involved in the turnaround. Catalyst regener- ation will also take place. Chevron Richmond, 240.0 4-6 weeks of planned work under Oct 30- CA way at unspecified units, the Nov 13 company said on Oct. 4. Traders said the crude unit will be worked on in this 4-6 week period.

Copyright © 2011 Dow Jones Newswires

Obama Casts Jobs Bill As Recession Insurance

WASHINGTON - President Barack Obama on Thursday cast his jobs bill as insurance against a double-dip recession and urged Congress to pass the measure swiftly. "If we don't take action, we could end up having more significant problems than we have now," Obama said at a news conference. Obama said the European debt crisis posed a serious threat to the recovery. "The problems Europe is having today could have a very real effect on our economy at a time when it is already fragile," Obama said. "The proposals in this bill are not just random investments to create make-work jobs. They are steps we have to take if we want to build an economy that lasts," he said.

Copyright © 2011 MarketWatch, Inc.

TECH STOCKS: Apple, Cisco, RIM Headline Tech Gains

SAN FRANCISCO (MarketWatch) -- Technology stocks rose Wednesday, with gains coming from Apple Inc., Cisco Systems Inc., Hewlett-Packard Co. and Research In Motion.

Apple (AAPL) shares rose $4.28, or 1.1%, to $376.7, a day after the launch of its new iPhone 4S in the prior session failed to create a buzz and on news that Samsung was seeking to ban the product in France and Italy.

Cisco Systems Inc. (CSCO) gained 90 cents, or 5.8%, to $16.48 to lead the Dow Jones Industrial Average (DJI) higher.

AMD (AMD) rose 12 cents, or 2.5%, to $4.84, but remained on edge after Bernstein Research downgraded the stock to market perform.

Last month, the chip company cut its sales forecast citing "manufacturing issues" at GlobalFoundries, the company spun off from its manufacturing operations.

"It is now increasingly clear that even AMD has no visibility into the likely yield trajectory at GlobalFoundries, and potential upside is likely to be limited," Stacy Rasgon, an analyst at Bernstein Research, said in a note. "No short term catalysts exist now given management credibility is shot and we believe shares could trade lower."

The sector also got a lift from SanDisk Corp. (SNDK), which rose 5%, and Juniper Networks (JNPR) gained 7.8%.

H-P (HPQ) added more than 3%, but the beleaguered technology giant took a hit from a J.P. Morgan note resuming coverage with an underweight rating.

"History is not on H-P's side," analyst Mark Moskowitz said in a note. "We think the 'value status' of H-P's stock, given the historical low price-to-earnings multiple, is not an attractive one for investors."

Research In Motion (RIMM) soared more than 11% on yet more buyout talk, this time involving Vodafone. Vodafone (VOD) shares were mostly flat.

The Nasdaq Composite Index (RIXF) climbed more than 40 points to 2,445, while the Morgan Stanley High Tech 35 Index (MSH) and the Philadelphia Semiconductor Index (SOX) were each up more than 2.3%.

Copyright © 2011 Dow Jones Newswires

Sarkozy: No Shale Gas Until Technology Proven Clean

--Sarkozy confirms government cancelled permits for shale gas exploration

--GDF Suez CEO: banning shale gas forever would be a major mistake

--Oil industry group: France is the only country that bans fracking

(Adds comments from industry group, GDF Suez CEO.)

PARIS -(Dow Jones)- French President Nicolas Sarkozy Tuesday reiterated that his government won't authorize the drilling for shale gas until the technology is proven to be environmentally clean.

"There won't be shale gas extraction through hydraulic fracturing in this territory," and extraction "can't be done at any price," said the president.

Sarkozy, speaking in the Gard region in southern France, confirmed the government has cancelled three exploration permits on shale gas fields as the companies maintained their intention to drill the potential fields using a technology which is also known as "fracking", which involves pumping water, sand and chemicals into the ground to crack open the rock and force the oil or gas to the surface.

Shale gas deposits are pockets of gas trapped in pores of sedimentary rocks.

The government's decision represents a blow to efforts by the companies to exploit shale gas in France. A report issued in April following a government request said French shale oil and gas fields are potentially some of the most promising in Europe and banning exploration before the reserves are assessed could be detrimental to France's economy and labor market.

The French government banned fracking in May over concerns about the technique's impact on the environment, after activists staged nationwide demonstrations to protest the exploration and possible developments of the fields, fearing the chemicals used in the process could pollute groundwater supplies.

The French oil industry opposes the government decision to cancel the permits as the country badly needs to develop oil and gas. Banning shale gas forever would be a major mistake as several producers in the U.S. are drilling for shale gas preserving the environment, said Gerard Mestrallet, the Chief Executive of French power company GDF Suez (GSZ.FR), according to French newspaper Sud Ouest.

France is the only country that bans fracking, the oil industry group UFIP said in a Tuesday statement.

Copyright © 2011 Dow Jones Newswires

Vale Working On Pact To Grant 35% Of Simandou To Guinea-Co Source

RIO DE JANEIRO -(Dow Jones)- Brazilian miner Vale (VALE,VALE5.BR) is working on an accord with the Guinean government by which it will concede 35% of its Simandou iron ore project to the government in line with new mining laws introduced in the country, according to a manager at Vale.

Vale's expected accord with Guinea would be in the same mould as the agreement recently struck between rival Rio Tinto PLC (RT.LN)and the Guinean government on Rio Tinto's iron ore project in the same area, the manager told Dow Jones Newswires in an interview.

Last month Guinea's government announced adoption of a new mining code allowing it to increase its participation in projects run by commodities companies operating in the country to 35% from the previous 15%, to boost revenues from the country's rich iron ore and bauxite resources.

The government had already struck in April an accord with Rio Tinto to take a 35% stake of the iron ore project Rio Tinto is developing at another part of the rich Simandou deposit.

"Vale's working on an accord in Guinea in the same mould as Rio Tinto's," said the manager.

Vale said in late 2010 that developing the high-quality Simandou project--in which it is a majority partner in a joint venture with a local company--will allow it consolidate its leadership of the global seaborne market for high-grade iron ore. The company said it is spending $861 million in 2011 on developing its Simandou project, which is planned to start up in the second half of 2012 to produce two million metric tons a year, rising to 15 million tons in 2015 and full capacity of 50 million tons a year in 2020 of ore with a high iron content, comparable to the quality of its Carajas mine in Brazil.

The miner is also investing in rail infrastructure in Guinea to transport the ore.

Brazil's business newspaper Valor Economico reported Monday that Vale is also assessing another alternative to the government's taking 35% of Simandou, without saying where it got the information. This option would involve the government continuing with a 15% stake while Vale would agree to pay a special tax on profits made at the mine instead of ceding an additional 20% stakeholding in the project.

A Vale press officer at the miner's Rio de Janeiro headquarters said the company had no comment on the Valor report.

Copyright © 2011 Dow Jones Newswires

Europe, China woes fuel earnings worries

By Caroline Valetkevitch

NEW YORK (Reuters) - Investors are worried U.S. earnings growth may finally fall back to earth as turmoil in Europe and signs of a less robust Chinese economy hurt foreign support.

The euro zone's debt crisis and weakness in China have fueled investor concern that the global economy could tip back into recession, possibly dampening U.S. earnings growth at a time when the U.S. economy is still struggling to gain ground.

Overseas sales have helped U.S. companies beat earnings expectations in the last couple of years, with foreign sales totaling 30 percent on average for Standard & Poor's 500 companies.

"If the euro region is crumbling, that's going to have a tremendous negative impact" on companies like McDonald's , said Todd Schoenberger, managing director at LandColt Trading in Wilmington, Delaware.

"I'm not expecting a big earnings quarter," he said. "We've been getting the clues already."

The most recent company to trouble investors about the earnings outlook is Ingersoll Rand Plc , whose shares tumbled 12.1 percent to $28.09 on Friday after the industrial conglomerate cut its third-quarter and full-year earnings forecast to below market estimates.

Investor pessimism is already high.

The S&P 500 finished the quarter with its worst performance since 2008, and many strategists have slashed their forecasts for year-end.

The S&P 500 dropped 14.3 percent in the third quarter, losing about $1.7 trillion in market capitalization.

A disappointing third-quarter earnings period, which begins the second week of October, could only trigger more losses, analysts said. Stronger-than-expected earnings helped stocks claw back fro 12-year lows in 2009.

Next week, investors also will be bracing for data on the U.S. job market, among the weakest parts of the economy. The government's September employment report is due Friday, while U.S. manufacturing data from the Institute for Supply Management is due Monday. The ISM services-sector index is set for release on Wednesday.

CURRENCY CUSHION MAY BE THINNER

Companies reporting earnings have benefited for the last decade from weakness in the dollar, which helped overseas revenue figures.

With the euro down 7.4 percent this quarter, the biggest quarterly loss by percentage since mid-2010, companies could lose some of that currency cushion.

"I think you'll see a lot of companies blaming problems on Europe," said Justin Walters, co-founder of Bespoke Investment Group in Harrison, New York.

Walters said excluding companies that report no international sales, the average percentage of overseas revenue for the S&P 500 is 41 percent.

The euro-zone debt crisis has investors worried about a repeat of the 2008 financial crisis.

In China, which has been a major engine of growth for the global economy, data has shown some weakness. On Friday, figures showed the country's manufacturing shrank for the third month in a row and had the longest contractional streak since 2009.

Analysts have slowly been reducing earnings forecasts for the quarter.

Third-quarter earnings are expected to have risen 13.3 percent from a year ago, according to Thomson Reuters data. The forecast was for 17 percent growth on July 1.

"If there's a very drastic downturn in the European economic zone, that portion of U.S. earnings will be impacted," said Natalie Trunow, chief investment officer of equities at Calvert Investment Management in Bethesda, Maryland, which manages about $14.8 billion.

But she and other strategists are optimistic that the earnings period will not disappoint, and could even present a buying opportunity.

"U.S. multinationals don't necessarily derive all of their additional earnings (from Europe), and in China, data seems to be showing a slowdown but not in hard-landing territory," Trunow said.

Other strategists said the dramatic cost-cutting that U.S. companies started in the 2008 financial crisis will help to keep bottom-line earnings numbers relatively healthy.

"In our view, corporate America has learned to make money in this environment," said Hank Smith, chief investment officer at Haverford Trust Co. in Philadelphia.

(Reporting by Caroline Valetkevitch; Editing by Jan Paschal)

PRESS RELEASE: Braskem Solidifies Its U.S. Polypropylene Leadership and Global Expansion Efforts

Braskem Solidifies Its U.S. Polypropylene Leadership and Global Expansion Efforts

The company completes its acquisition of The Dow Chemical Company Polypropylene Business; builds its global polypropylene capacity to four (4) million tons per year.

PR Newswire

SAO PAULO, Sept. 30, 2011

SAO PAULO, Sept. 30, 2011 /PRNewswire/ -- Braskem, the leading resin producer in the Americas, announced the completion of its acquisition of the Polypropylene Business from The Dow Chemical Company, an important milestone in the Company's global expansion. The transaction, announced on July 27, was approved by the European Commission and the Federal Trade Commission and the Antitrust Division of the Justice Department of the United States of America.

The assets involved in the deal include two manufacturing plants in the U.S. and two in Germany, with a total annual polypropylene production capacity of 1.05 million tons. The two US manufacturing plants located in Freeport, Texas and Seadrift, Texas will be fully integrated into Braskem America, Inc. The two German plants located in Wesseling and Schkopau will operate under Braskem Europe GmbH.

The deal will deliver approximately $140 million in synergies through a more diversified portfolio, leveraged fixed cost base and working capital, logistics and supply optimization.

This acquisition brings a strong team that, combined with a worldwide polypropylene production capacity of 4 million tons per year, positions Braskem to provide a broader portfolio of products and services to its customers.

"Braskem has a long term commitment to the polymers industry. We see enormous potential for growth and innovation in thermoplastics resins because of the endless uses in people's everyday lives," said Braskem's Executive Vice President of the International Business Unit, Luiz de Mendonca. "We are very excited to grow our partnership with our clients in North America and Europe."

Mark Nikolich, formerly VP of Commercial and Supply Chain for Braskem America, has been named CEO and General Manager of Braskem Europe GmbH. Mr. Nikolich brings to this role over twenty years of experience in polyolefins and chemicals.

Robert Nadin, formerly VP of Innovation and Technology for Braskem America, has been appointed VP of Commercial and Supply Chain for polypropylene in North America. Mr. Nadin has more than 25 years of industry experience in a variety of positions in research and development, business management, business development, and technology licensing.

ABOUT BRASKEM

Braskem is the largest manufacturer of thermoplastic resins in the Americas. With 35 industrial plants in Brazil, the United States and Germany, the company produces more than 16 million tons of thermoplastic resins and other petrochemical products annually.

Headquartered in Philadelphia, Braskem America, a wholly owned subsidiary of Braskem S.A., has five production facilities, including three in Texas, one in Pennsylvania and one in West Virginia, as well as its Technology and Innovation Center in Pittsburgh. Braskem Europe GmbH, a wholly owned subsidiary of Braskem S.A., operates two production facilities in Schkopau Germany and Wesseling Germany.

CONTACT: Kerry Butler +1-215-790-4371 kbutler@tierneyagency.com

SOURCE Braskem S.A.

Copyright © 2011 Dow Jones Newswires