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18/11/07

Paulson sees volatile markets, healthy economy

KLEINMOND, South Africa (Reuters) - Financial market turmoil may last some time, but U.S. Treasury Secretary Henry Paulson told G20 members on Sunday he was confident that the U.S. economy will keep growing. "I explained that we are going through a period of reassessing risk and that will take time and we will experience volatility along the way," Paulson said in a statement released at the conclusion of a two-day meeting of the Group of 20 mostly industrialized and emerging economies.

Auto sales could hit 15-year low

DETROIT (Reuters) - Three top investors in the automotive industry painted a grim picture on Sunday for the sector in 2008, with one executive predicting a possible slump in U.S. sales to levels not seen in 15 years. The weakest forecast is for a possible 9.4 percent decline. But all three -- Jerry York, an adviser to billionaire investor Kirk Kerkorian; financier Wilbur Ross; and Thomas Stallkamp, a former Chrysler president -- were more pessimistic than many in the battered industry.

Celgene to buy Pharmion for $2.9 billion

NEW YORK (Reuters) - Biotechnology company Celgene Corp has agreed to buy Pharmion Corp for about $2.9 billion in stock and cash to boost Celgene's push into the oncology field, the two companies said on Sunday. Under the terms of the deal, Celgene will acquire all the outstanding shares of Pharmion common stock for $72 per share, payable in a combination of cash and Celgene common stock. The deal is expected to close in the second quarter and be slightly dilutive to earnings in 2008 and accretive in 2009 and beyond.

Northern Rock to have government loan extended: report

LONDON (Reuters) - Stricken British bank Northern Rock could have its 25 billion pound ($51 billion) Bank of England lifeline extended indefinitely, The Sunday Telegraph has reported. European Union guidelines currently block the bank from receiving state aid beyond February 17, but the newspaper said on Sunday that advisers to British Chancellor Alistair Darling had bowed to pressure from the firm and were working on a plan to change the status of the funding to 'restructuring aid'.

Oil climbs toward $95 on U.S. dollar concerns

SYDNEY (Reuters) - Oil extended gains on Monday, nearing $95 a barrel as the dollar fell and some OPEC members pushed for action to stem their declining purchasing power. U.S. light crude for January delivery the new front month contract, rose 71 cents to $94.55 a barrel by 0203 GMT, adding to Friday's nearly 2 percent gains that were partly fueled by forecasts for colder U.S. weather that would boost demand.

The rally that hasn't come

TORONTO (Reuters) - Like parents who forget to pick up their child at school, the usually-bountiful months of November and December seem poised to leave investors out in the cold this year. Many have been left scratching their heads as the Toronto Stock Exchange's main index bucks a trend that has lasted for a decade. It has tumbled 7.5 percent midway through November, a month during which it has risen by an average 1.6 percent for the past 10 years.

OPEC agrees dollar talks after forex basket proposal

RIYADH (Reuters) - OPEC states agreed their finance ministers would meet before December 5 to discuss the sliding dollar's impact on their economies after Iran and Venezuela recommended pricing oil against a currency basket. The ministers would meet before the next gathering of the Organization of the Petroleum Exporting Countries' energy ministers in the United Arab Emirates capital, Abu Dhabi, Iraqi Finance Minister Bayan Jabor told Reuters on Sunday.

Aroma of profit wafts from Britain's new-look pies

LONDON (Reuters) - To aficionados, it is British comfort food at its best. To others, it is as appetizing as its nickname -- a "rat's coffin." The savory pie, a mainstay of the British diet for thousands of years, is getting a makeover as Britain sheds a once-sagging culinary reputation and top chefs return to traditional fare.

G20 renews FX mantra, China says yuan band move possible

CAPE TOWN, South Africa (Reuters) - China's central bank chief said on Sunday it could consider a wider trading band for the yuan currency after finance chiefs from the Group of 20 economic powers renewed calls for greater currency flexibility. "Actually I think now it is quite OK for the floating band, but if it is necessary we can consider to expand that," Zhou Xiaochuan told reporters, stressing that any yuan move would depend on prevailing global economic conditions.

Risks to world growth have grown: Dodge

OTTAWA (Reuters) - Risks to world economic growth have risen in the past month amid unprecedented foreign exchange volatility, Bank of Canada Governor David Dodge said on Saturday. Dodge, in a conference call, said those risks would be taken into account when setting Canadian monetary policy, raising the possibility of an interest rate cut earlier than previously expected.

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