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June 12, 2011

Beijing-Shanghai high-speed railway set to open

Filed under: Prices, term — Tags: , , , — DoctorBusiness @ 11:28 pm

Chinese railway authorities say all is ready for the opening of a showcase high-speed railway between Beijing and Shanghai later this month.

Railways Ministry Vice Minister Hu Yadong told reporters in Beijing on Monday that tickets for the rail link between the China’s top two cities would range from 410 yuan to 1,750 yuan ($63 to $270), depending on speed and class of train seat.

The fastest travel time on the 1,318-kilometer (813 mile) line will be five hours, or about half the current time, and the longest to just under eight hours, he said in a transcript posted on the ministry’s website.

Trial operations for the new rail line began May 11. Its formal inauguration coincides with the July 1st 90th anniversary of the founding of the ruling Communist Party.

“We can proudly say that the Beijing-Shanghai high-speed railway is China’s own, independent landmark project,” Hu said.

Hu said the railway was designed to ensure absolute security and safety. Earlier, the top operational speed for its trains was cut to 300 kilometers per hour (186 mph) from the originally planned 350 kph (217 mph), after questions were raised about safety.

China will continue to run 136 ordinary trains between the two cities, Hu said.

Overall, China aims to have 8,000 miles (13,000 kilometers) of high-speed rail in place by the year’s end and twice that length by 2020. Ticket prices now range from 179 yuan ($27.50) for a seat on the slowest trains to 730 yuan ($112) for a sleeper berth on the fastest ones.

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June 1, 2011

NATO extends Libya mission extra 90 days

Filed under: technology, term — Tags: , , , — DoctorBusiness @ 5:08 pm

NATO and its partners in the military campaign to protect Libyan civilians have decided to extend their mission another 90 days, the alliance’s top official said Wednesday.

“This decision sends a clear message to the Gadhafi regime: We are determined to continue our operation to protect the people of Libya,” said NATO Secretary-General Anders Fogh Rasmussen. Gadhafi is trying to withstand the NATO air barrage and put down a rebellion among his own people.

British Foreign Secretary William Hague welcomed the extension, saying it was an “important reaffirmation” of the world’s commitment to protect Libyan civilians.

In Rome, meanwhile, Libyan oil chief Shukri Ghanem said Wednesday he had defected and now supports the rebels, a major blow to the Libyan leader.

“In this situation, which is unbearable, one cannot continue working,” Ghanem told reporters at a Rome hotel. He said he now united himself with the “Libyan youth” who were fighting to build a constitutional democracy in the country.

In Brussels, NATO and its partners in the military campaign to protect Libyan civilians decided to extend their mission for another 90 days, the military alliance’s top official said Wednesday.

Wednesday’s decision came during a meeting of ambassadors from the 28 NATO countries plus ambassadors from the five non-NATO countries participating in the Libya campaign _ Jordan, Qatar, Sweden, the United Arab Emirates and Morocco _ said Carmen Romero, the NATO’s deputy spokeswoman no faxing pay day loans.

The military alliance took over command of the operation on March 31 after difficult negotiations among its members. Unanimity of 28 is required for action, and the operations to enforce a no-fly zone and use air power, based on a U.N. Security Council resolution that calls for the protection of civilians, were authorized for an initial 90 days.

That time would have expired June 27. The decision to extend the campaign was taken nearly a month ahead of time to allow the participating countries to do their internal planning, Romero said.

NATO also is enforcing a U.N. arms embargo against Libya. That part of the operation has no time limit.

Critics have charged that the military campaign has turned into a stalemate and said it is difficult to dislodge a government through air power alone. But NATO, while maintaining that regime change is not its goal, says it has significantly diminished Gadhafi’s ability to attack civilians.

Fogh Rasmussen said in a statement that the extension of the campaign carries a message not only for Gadhafi but for the Libyan people.

“NATO, our partners, the whole international community, stand with you,” he said. “We stand united to make sure that you can shape your own future. And that day is getting closer.”

____

Nicole Winfield reported from Rome

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May 3, 2011

Stocks slip as economy trumps bin Laden news

Filed under: Finance, term — Tags: , , , — DoctorBusiness @ 12:28 pm

U.S. stocks edged lower on Monday as investors shifted their focus back to the economy and earnings news.

It was a reversal from the initial positive reaction to the news that Osama bin Laden had been killed by U.S. forces. Traders and investors said it will take more to sustain a longer rally.

The Dow Jones industrial average (INDU) fell 3 points, or less than 0.1%, to 12,807. The Dow had been up as much as 60 points earlier in the day.

The S&P 500 (SPX) fell 2.4 points, or 0.2%, to 1,361; and the Nasdaq Composite (COMP) lost 9 points, or 0.3%, to 2,864.

"Once the bin Laden news settles and earnings season slows down, we’ll be due for a pullback," said Fred Dickson, chief market strategist with D.A. Davidson & Co. "Bin Laden’s death doesn’t eliminate the risk factors and it doesn’t settle the political uprising issues in the Mideast."

Monday’s losses ends what was a five-day long positive streak for the S&P 500 and Dow.

Alcoa (AA, Fortune 500), Merck (MRK, Fortune 500) and American Express (AXP, Fortune 500) led the blue chips higher Monday, but shares of Microsoft (MSFT, Fortune 500) offset the gains and weighed down the tech sector. Applied Materials (AMAT, Fortune 500) and Whole Foods (WFMI, Fortune 500) were the Nasdaq’s biggest laggards.

The losses on Monday come after stocks finished their best month this year on Friday.

Stocks have headed higher since the beginning of the year amid strong earnings. Despite jitters about the economy and concerns about inflation, April was the best month for the three indexes since December.

Corporate earnings have largely come in above expectations, but last week’s weak GDP reading and higher-than-forecast jobless claims show there’s still cause for concern about the U.S. economic recovery.

U.S. investors will get the April jobs report, a closely watched gauge of U.S. economic activity, this upcoming Friday.

Commodities and currencies: Oil prices edged lower with June oil futures falling 0.4% to $113.52 a barrel.

"Oil can be a globally emotional, reactive market, and any time that geopolitical risk is reduced there is less fear in the oil markets," said Derek Hoffman, chief executive and founder of Wall St payday loan online. Cheat Sheet. "The news that there was a successful effort to find, capture and kill the number one terrorist in the world is a positive sign."

Gold prices also backed off their highs Monday. Gold futures for June delivery fell $9.50 to $1,547.00 an ounce, after hitting an intraday high of $1,577.40 an ounce.

Meanwhile, silver prices plunged nearly 10% to $44.12 an ounce on concerns that the precious metal, which is up nearly 40% this year, is overbought.

In currencies, the dollar fell against the euro, but gained strength against the Japanese yen and the British pound.

Bonds: The price on the benchmark 10-year U.S. Treasury edged higher, pushing the yield down to 3.29%.

It’s shaping up to be a big week for bonds, with the Treasury Department expected to announce details of its quarterly refunding on Wednesday.

World markets: Markets around the world had a muted reaction to Osama bin Laden’s death, with Britain’s FTSE 100, the Hang Seng in Hong Kong and the Shanghai Composite all closed for holiday.

Other European markets rose slightly. The DAX in Germany rose 0.3% and France’s CAC 40 closed up 0.1%. Japan’s Nikkei ended the session 1.6% higher.

Economy: The Institute for Supply Management said its April manufacturing index fell to a reading of 60.4%, better than the reading of 58.5% that economists had expected.

Companies: The Nasdaq-100 index will be rebalanced to reduce the weight of Apple’s stock by about 40%. Apple (AAPL, Fortune 500) currently represents 20.5% of the index. After the rebalancing, Apple’s weight will be reduced to 12.3%.

Shares of TiVo (TIVO) closed up 3% after DISH Network Corporation (DISH, Fortune 500) and EchoStar Corporation (SATS) announced they will pay TiVo $500 million to settle an ongoing patent dispute.

Separately, DISH reported earnings per share of $1.22 for the quarter ended in March, easily topping forecasts. Also, DISH said it gained approximately 58,000 net subscribers during the quarter. Shares of DISH jumped 19%. 

Source

May 1, 2011

China’s Manufacturing Grows at Slower Pace, Survey Shows - Bloomberg

Filed under: economics, term — Tags: , , , — DoctorBusiness @ 1:56 pm

A Chinese manufacturing index fell after the government raised interest rates and lenders’ reserve requirements and allowed gains in the yuan to pick up pace.

The Purchasing Managers’ Index was at 52.9 in April from 53.4 in March, China’s logistics federation and the statistics bureau said in an e-mail today. That was below a median forecast of 53.9 in a Bloomberg News survey of 20 economists.

China’s economic expansion, a driver of global growth, may moderate as the government counters the fastest inflation since 2008 and cools a real-estate market that has been at risk of price bubbles. Credit Suisse Group AG says a fifth increase in benchmark interest rates since the global financial crisis may come as early as tomorrow, a Chinese holiday, less than a month after the previous move.

“Growth has been cooled a bit but inflationary pressures have not been meaningfully alleviated,” Qu Hongbin, the Hong Kong-based chief China economist at HSBC Holdings Plc, said before today’s release. “While aggressive tightening seems unlikely, Beijing does need to keep the current pace of tightening for another three to four months to tame inflation.”

Zhang Liqun, a senior researcher at the State Council’s Development Research Center, said in today’s statement that the latest numbers show an increased likelihood that economic growth will slow. Gross domestic product expanded 9.7 percent in the first quarter from a year earlier and the World Bank last week forecast a full-year expansion of 9.3 percent.

‘Very Bullish’

An executive at billionaire investor Warren Buffett’s Burlington Northern Santa Fe expressed confidence that the Asian nation will continue to maintain a pace of growth that bolsters the global expansion.

“I’m very, very bullish about the recovery,” Matt Rose, chief executive officer of the railroad business, said yesterday in an interview in Omaha, Nebraska. “It’s really driven by worldwide demand, specifically China.”

China’s consumer prices jumped 5.4 percent in March, compared with the government’s full-year target of 4 percent. Premier Wen Jiabao aims to restrain inflation that he describes as a “tiger” — once out of control, difficult to tame — while also boosting private consumption and shifting the economy from an excessive dependence on exports and investment.

The International Monetary Fund indicated last week that the premier may be winning the battle to contain prices.

Supply Shocks

“The current episode of inflation does not look like a bout of generalized overheating, with China’s strong growth beginning to bump up against capacity constraints,” the IMF said in a report. “Barring future supply shocks either domestically or in global commodity markets, inflation in China is likely to return toward the low single digits in the second half of 2011.”

The yuan strengthened beyond 6.5 per dollar for the first time since 1993 on April 29 as the U.S. currency slid. A stronger yuan may help to cool inflation by effectively making imports cheaper.

The logistics federation said today’s data showed an “appropriate adjustment” in growth as the nation alters the structure of its economy. Export orders and input prices grew at a slower pace, while an index of output was little changed from the level in March.

Coal and electricity supplies are tight, according to some companies, a situation that needs to be monitored, the logistics group said in a separate statement on its website.

The survey released today was of 820 companies in 28 industries, such as textiles and oil processing. A separate PMI, released by Markit Economics and HSBC, had indicated that manufacturing grew at the same pace in April as in March. That survey covered more than 430 companies.

–Sophie Leung in Hong Kong and Nerys Avery in Beijing, with assistance from Huang Zhe and Feiwen Rong. Editors: Paul Panckhurst, Jim McDonald.

To contact Bloomberg News staff on this story: Nerys Avery at +86-10-6649-7558 or navery2@bloomberg.net;

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April 22, 2011

Holland Construction finishes addition to Four Paws Animal Hospital in O’Fallon, Ill.

Filed under: Europe, term — Tags: , , , — DoctorBusiness @ 12:04 am

Holland Construction Services Inc. has completed a new addition to the Four Paws Animal Hospital, 2006 West Highway 50 in O’Fallon, Ill., now providing more space for existing and added services it offers its clients.

The addition consists of about 6,000 square feet that Four Paws plans to use for expanded dental and surgical services and larger lodging area.

A dedicated chemotherapy area is available to treat cancer patients, and a rehabilitation area with underwater treadmill helps orthopedic patients. A special room was added for end-of-life services.

Source

April 10, 2011

Runoff likely in Peru election led by military man

Filed under: Prices, term — Tags: , , , — DoctorBusiness @ 5:28 pm

Peruvians choosing a new president Sunday were expected to favor an anti-establishment military man who vows to redistribute Peru’s mineral wealth _ yet with far from enough votes to avoid a runoff.

The tight battle for second was crucial. None of former army Lt. Col. Ollanta Humala’s rivals has expressed similar intentions of shaking up the free market-oriented economic status quo.

Initial exit polls showed Humala leading and a technical tie for second place between Keiko Fujimori, 35-year-old daughter of the imprisoned former President Alberto Fujimori _ whom Peruvians alternately adore and vilify _ and Pedro Pablo Kuczynski, a 72-year-old former World Bank economist and investment banker.

Trailing them was Alejandro Toledo, Peru’s president from 2001-2006. Pre-election polls showed he would defeat Humala in a second round while Kuczynski and Fujimori would have a harder time.

Humala prevailed in the first round of the 2006 presidential election only to lose a runoff. He has spooked foreign investors by promising a greater state role in the economy and to divert natural gas exports to the domestic market.

That’s just fine with Federico Sandoval, a 60-year-old veterinarian in Lima’s sprawling lower class Villa El Salvador district. Sandoval said he voted for Humala because the corruption that has long been a hallmark of Peruvian politics _ and that many believe worsened under outgoing President Alan Garcia _ needs to stop.

“In order to improve the situation there need to be changes and they should be radical,” Sandoval said.

Politics in this resource-rich Andean nation have been volatile since the 1980s, when its discredited political parties all but dissolved, and Sunday’s vote was the most unpredictable in decades.

With no candidate expected to capture a simple majority, the top two vote-getters will meet in a June 5 runoff.

“The people are very divided,” said Luis Tamayo, a 25-year-old engineering student in Villa el Salvador who, like many better-educated Peruvians, voted for Kuczynski.

“What you’ve got here are older men who are very nationalist, very leftist and are voting for Humala and women who work in the community kitchens who are Fujimoristas,” he said.

Keiko Fujimori is running on her father’s legacy of delivering essential services to Peru’s forgotten backwaters. She tends to be favored by the most needy in a country of 30 million where one in three live on less than $3 a day and lack running water.

Peru is a top exporter of copper, gold and silver, commodities whose rising prices have helped fuel economic growth averaging 7 percent over the past five years. But it is a growth that has hardly trickled down to the poor.

And although chronic child malnutrition dropped from 25 percent in 2000 to 18 percent last year, Peru still ranks 13th out of 17 countries in the region in terms of citizens’ access to social services, according to a World Bank report instant payday loan lenders. In the country’s rural highlands, where Humala was running strongest, 66 percent of Peruvians live in poverty, half of them in extreme poverty.

Humala was favored with 31.6 percent in an Ipsos-Apoyo exit poll released after polls closed at 4 p.m. (2100 GMT) followed by Fujimori with 21.4 percent; Kuczynski with 19.2 percent; and Toledo with 16.1 percent.

The poll had an error margin 3 percentage points, meaning Fujimori and Kuczynski were in a technical tie.

Kuczynski, a German immigrant’s son who was economics and prime minister under Toledo, climbed into contention in the campaign’s final weeks as he renounced his dual U.S. citizenship. But his light skin is a liability in a country where the European-descended economic elite is meeting a backlash of resentment from natives long excluded from power.

Analysts say about 11 percent of the electorate was undecided going into Sunday’s election _ more than in 2006, when Garcia beat Humala, 53 percent to 47 percent.

Humala, 48, surged into the lead in the campaign’s final days with promises similar to those of Keiko Fujimori: free nursery school and public education, state-funded school breakfasts and lunches, a big boost in the minimum wage, and pensions for all beginning at age 65.

He says he would respect international treaties and contracts, but many Peruvians don’t believe him.

Humala, who launched a bloodless, short-lived revolt against Alberto Fujimori just before the latter fled into exile in 2000, advocates rewriting the constitution, as Venezuelan President Hugo Chavez and his leftist allies in Bolivia and Ecuador have done. He says his reason is to make it easier to enact his agenda, not to allow re-election, as Chavez did to perpetuate himself in office.

Openly associating himself with Chavez in 2006, Humala now keeps his distance and has toned down his radical rhetoric.

Fujimori has a rock-solid constituency thanks to her father’s defeat of the Maoist-inspired Shining Path insurgency, taming of hyperinflation in the 1990s and social agenda.

“Because of him we are free. Because of him we’re at peace,” said Luz Montesino, a 60-year-old bakery owner who voted at a school built during his presidency.

Like other Fujimori voters, Montesino was not bothered by the fact that Alberto Fujimori is now serving a 25-year sentence for corruption and authorizing death-squad killings.

Nor do many Fujimori supporters seem to be concerned by critics’ fears that Keiko would pardon her father, and that he’d be calling the shots in her presidency.

Source

February 20, 2011

Emerging markets get wary eye

Filed under: Europe, term — Tags: , , , — DoctorBusiness @ 12:52 pm

After bulking up on emerging-market stocks for months, professional investors have cut and run with a speed almost as swift as the power shift in Egypt.

In January, about 43 percent of professional managers were so fond of emerging-market stocks from areas such as Asia, Latin America and the Middle East, they were holding supersize portions in the portfolios they manage.

Now, only 5 percent of global fund managers are favoring emerging markets. That’s the lowest level since the stock market hit bottom in March 2009, according to a Bank of America Merrill Lynch survey of fund managers throughout the world.

The firm’s global equity strategy team called it a “collapse in global investor allocations” and noted that the change is especially dramatic given the sentiment of fund managers. The managers are exceptionally optimistic about stocks in general and eager to invest in global markets. But they are leery of the emerging markets that were popular until recently, countries such as India, South Africa and Brazil.

Egypt, of course, provided a lesson that emerging markets can be volatile and change without warning from seemingly mild-mannered places to hotbeds of strife and uncertainty. But Merrill Lynch global strategist Michael Penn pointed out in a report that fund managers are particularly concerned about the threat of inflation, which is building in some emerging markets while remaining minimal in the U.S.

Emerging-market stocks have declined about 5 percent since early January, after climbing about 122 percent over the past couple of years. For three weeks, investors have been pulling billions out of emerging market funds and adding money to U.S., European and Japan stock funds, a reversal of last year’s tendency to shun the U.S. and steer money to faster-growing areas, according to EPFR Global, which tracks fund flows. The firm said about two-thirds of the money pulled out of emerging markets recently was by institutions or large professional investors such as pension and hedge funds.

UBS economist Jonathan Anderson noted this week that he hadn’t seen such nervousness among clients for a long time. In a report, he said, investors are asking: “Is the emerging economic model falling apart? Should we dump all our (emerging market) exposure? How close are we to a repeat of the 2008 collapse?”

Anderson thinks the questions are “wildly exaggerated,” although he expects nervousness to continue as global food prices and related inflation fears continue, and political tension remain in the Middle East and North Africa.

Some analysts have linked sharply rising food prices over the last year to recent political unrest. They note that in some emerging markets consumers spend substantial portions of their income on food, while Americans spend far less proportionately. As prices of wheat, corn, sugar and edible oils have soared, the World Bank has estimated people in poverty have increased by about 44 million in low- and middle-income countries.

About 75 percent of fund managers surveyed by Merrill Lynch expect inflation to continue climbing globally this year, especially in commodities. Besides the impact on food, rising basic material and energy costs can put pressure on corporate profits and cause stocks to languish or decline.

In addition, as inflation heats up, countries try to slow growth somewhat by raising interest rates, and the fear is they will accidentally go too far and slow the economy too much.

In response, the fund managers are lightening up on stocks in material and manufacturing companies, while adding to companies that produce technology, energy and consumer discretionary products.

Yet Anderson noted that corporate earnings in emerging-market countries continue to outperform developed countries. In general, he said, the recent downturn in emerging-market countries has left stock prices more attractive.

Investors searching for emerging-market stocks may have to be more discriminating than they have been, culling through regions of the world rather than buying all areas. The Leuthold Group, for example, recently cut back its emerging-market exposure and reduced China to its lowest level ever, just 2 percent of the company’s portfolio. Emerging markets, in general, make up 24 percent of the firm’s stock holdings compared with 30 percent late last year.

Meanwhile, the firm is more optimistic about growth picking up steam in developed areas and has raised exposure to the U.S., Japan and Europe to 76 percent, compared with 70 percent at the end of last year.

Source

January 18, 2011

Charles Schwab 4Q profit drops on settlement costs

Filed under: money, term — Tags: , , , — DoctorBusiness @ 12:12 pm

Discount broker The Charles Schwab Corp. says its fourth-quarter profit fell 27 percent because of charges related to a settlement over disclosure of the risks of a short-term bond fund.

The San Francisco company says its net income fell to $119 million, or 10 cents per share, for the three months ended Dec. 31. Without the settlement charges disclosed last week, Schwab said profit rose 33 percent. Revenue rose 14 percent to $1.13 billion.

Wall Street was expecting earnings of 10 cents per share on revenue of $1 saving account payday loan.11 billion.

Total client assets rose 11 percent to $1.57 billion. The company ended the year with nearly 8 million clients, up 4 percent from a year ago.

Shares edged up 12 cents in pre-market trading to $18.95.

Source

January 10, 2011

Oil prices surge after Alaska pipeline shuts down

Filed under: Uncategorized, term — Tags: , , , — DoctorBusiness @ 2:20 pm

Oil prices rose above $89 a barrel Monday after the 800-mile trans-Alaska pipeline owned by BP PLC and four other companies was shut down because of a leak.

Benchmark oil for February delivery climbed $1.24 to $89.27 a barrel in midday trading on the New York Mercantile Exchange.

The pipeline, which carries between 630,000 barrels and 650,000 barrels a day, was shut down Saturday after a leak was reported at a North Slope pump station. The leak has been contained but there is no immediate timeframe for reopening the pipeline, according to Alyeska Pipeline Service Co., which manages the line.

The closure cut oil production on the North Slope to about 5 percent of normal. The pipeline carries 17 percent or less of the U.S. crude output.

Refineries that rely on Alaska crude have several weeks of inventories available so prices aren’t expected to top $100 a barrel because of the closure, according to The Schork Report, an energy consulting firm.

“We don’t believe the news as it stands is enough to push crude oil above the $100 barrier,” The Schork Report said. “If production is reduced to 5 percent until March or April, then we’ll change our mind.”

Once a repair schedule has been released, oil prices could ease, added Cameron Hanover energy consultancy in its Monday report pay day loans.

In addition to BP, the other pipeline owners include ConocoPhillips, ExxonMobil Corp., Unocal Pipeline Co. and Koch Alaska Pipeline Company LLC.

Meanwhile, a stronger dollar tempered the rise in oil and other energy prices. Since crude is priced in dollars, a stronger dollar makes it more expensive for buyers who use the euro or other currencies.

Oil prices were kept in check by a stronger dollar, which makes crude more expensive for investors holding other currencies.

Gasoline pump prices are at a national average of $3.09 for a gallon of regular. That’s about 11 cents more than a month ago and 35 cents above a year ago.

In other Nymex trading in February contracts, heating oil gained 6.25 cents at $2.5488 a gallon, while gasoline futures added 3.83 cents at $2.4514 per gallon. February natural gas futures lost 7.2 cents at $4.350 per 1,000 cubic feet.

In London, Brent crude rose $2.03 to $95.36 a barrel on the ICE Futures exchange.

Source

November 25, 2010

South Korea Current-Account Surplus Widened to Three-Month High in October - Bloomberg

Filed under: management, term — Tags: , , , — DoctorBusiness @ 6:52 pm

South Korea’s current-account surplus widened to a three-month high in October, indicating that exports have so far withstood the won’s appreciation against the dollar.

The surplus was $5.37 billion in October, up from a revised $3.95 billion in September, the Bank of Korea said in a statement in Seoul today. The current account is the broadest measure of international trade, tracking goods, services and investment income.

The nation is one of a number of emerging markets from Asia to Latin America striving to limit currency appreciation this year to support exports. North Korean shelling of a South Korean island three days ago sent the won to a two-month low against after unsettling investors.

“Exports will likely stay firm,” Hwang In Seong, vice president of the Samsung Economic Research Institute in Seoul, said before the release. “The won’s recent weakness due to the risks from North Korea and Europe will help.”

The currency touched 1,172.50 per dollar, the weakest level since Sept. 9, the day after North Korea fired artillery onto South Korean territory for the first time in half a century. The won’s advance in the past 6 months is the biggest climb in Asia, according to data compiled by Bloomberg. The Kospi stock index closed up 0.1 percent yesterday.

President Lee Myung Bak’s government expects limited economic impact from the incident with the North and has pledged to supply ample liquidity to cope with any shocks. The administration last week supported the revival of a tax on foreigners investing in the nation’s bonds to curb fund inflows driving up the won cash advance flexible payments.

Capital Controls

“The government may delay additional steps to control capital flows until international investors feel confident about the security situation,” Hwang said.

Bank of Korea Governor Kim Choong Soo raised borrowing costs by 0.25 percentage point in November, the second increase this year, to 2.5 percent. The current interest rate lags behind inflation, which surged past the monetary authority’s ceiling of 4 percent last month.

Exports account for about half the economy and grew for the 12th straight month in October. Overseas shipments have boosted earnings this year at firms such as Hyundai Motor Co., South Korea’s largest automaker.

Total exports on a customs-cleared basis, which excludes ships, rose 27.6 percent last month from a year earlier, compared with a revised 16.2 percent increase in September. Imports advanced 21.3 percent.

The surplus on traded goods widened to $6.54 billion in October from a revised $5.57 billion in September, today’s report showed. The services deficit, which measures the flow of travel, transport costs and royalties, was $1.69 billion last month, compared with a revised $1.96 billion in September.

The income account had a $756 million surplus, from a revised $509 million surplus in September.

South Korea’s economy is expected to grow 6.2 percent this year and 4.3 percent in 2011, the Organization for Economic Cooperation and Development estimated on Nov. 18.

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