Finance topics

Asian stocks climbed Monday, buoyed by a robust start to the U.S. holiday shopping season and reports that European leaders are considering legal means to force debt-ridden euro countries into fiscal discipline.

Japan’s Nikkei 225 index jumped 1.9 percent to 8,314.45. South Korea’s Kospi gained 2 percent to 1,811.99 and Hong Kong’s Hang Seng index rose 1.8 percent to 18,012.29. Australia’s S&P/ASX 200 added 2 percent to 4,067.

Benchmarks in mainland China, Singapore, Indonesia and Taiwan were also higher.

German media reported over the weekend that German Chancellor Angela Merkel and French President Nicolas Sarkozy were studying legal changes _ possibly amendments to the European Union growth and stability pact _ to force nations using the euro common currency to comply with strict rules for budget discipline and tough sanctions for violators.

Traders were awaiting more details on such a possible plan, as well as the results of a key meeting Tuesday of finance ministers from the 17 euro nations.

Worries about Europe’s debt crisis flared anew Friday after Italy had to pay 7.8 percent to borrow for two years at a debt auction. It’s another sign that investors are increasingly hesitant to lend to European countries.

Higher interest rates on government debt of Italy, Spain and other European countries have rattled stock markets in recent weeks. Greece, Ireland and Portugal had to seek financial lifelines when their interest rates crossed the 7 percent mark.

Meanwhile, a record 226 million shoppers visited stores and websites during the four-day U.S. holiday weekend starting on Thanksgiving Day, up from 212 million last year, according to early estimates by The National Retail Federation.

The results for the first holiday shopping weekend show that retailers’ efforts to lure shoppers during the weak economy are working. The question remains whether retailers’ will be able to hold shopper attention throughout the remainder of the season, which can account for 25 to 40 percent of a merchant’s annual revenue.

During a shortened post-holiday trading session on Friday, the Dow Jones industrial average fell 0.2 percent to close at 11,231.78. The S&P 500 lost 0.3 percent to 1,158.67. The Nasdaq composite dropped 0.8 percent to close at 2,441.51.

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India is opening its $400 billion retail industry to global chains such as Wal-Mart in a move that could improve decrepit infrastructure that causes massive food waste in a country plagued by malnutrition and high inflation.

Top retailers have lobbied for years for a chance to build stores in the nation of 1.2 billion people and political deadlock on long-promised reforms in retail and other areas has helped cool foreign investor interest in India. Foreign retailers have Indian partners in wholesale operations, but no retail stores.

“Multibrand” stores such as supermarkets could be built with up to 51 percent foreign ownership under the change the Cabinet approved Thursday. The Cabinet also allowed 100 percent foreign ownership of single-brand retail operations, up from 51 percent.

Advocates see the move as a way to strengthen India’s creaking food distribution system.

The country suffers chronically high malnutrition and soaring inflation, but it’s not for lack of food. It is the world’s second largest grower of fresh produce, yet loses an estimated 40 percent of its fruit and vegetables to rot because of a lack of refrigerated trucking and warehouses, poor roads, inclement weather and corruption. That translates into lower incomes for farmers and higher prices for consumers.

If companies such as Wal-Mart and Tesco can open shops of their own, they may invest billions in improving farming techniques and getting produce into stores more efficiently, bringing down food inflation _ which has averaged 10.5 percent over the last year _ and possibly improving rural incomes.

Wal-Mart, British-based Tesco PLC and French-based retailer Carrefour welcomed the decision.

“This legal evolution should contribute to modernize the Indian food supply chain and to fight against food inflation for the benefit of Indian customers,” Carrefour said in a statement. It said the decision would help India’s farmers and the nation’s general economic development.

Opposition parties and some allies of the government resisted the move. The country has struggled to find consensus because of concerns that competition from the foreign retail giants could hurt millions of small shopkeepers, as well as the poor best payday advance.

Speaking on the NDTV news channel, ruling Congress party spokesman Abhishek Manu Singhvi called the decision “centrist and reasonable.”

The main opposition, the right-wing Bharatiya Janata Party, decried the move.

“The government has clearly bowed to international pressure,” spokesman Chandan Mitra told the same TV channel.

India’s $400 billion retail sector is the nation’s second-largest employer, after agriculture, according to consulting firm Deloitte.

The Ministry of Commerce says it will cost 76.9 billion rupees ($1.7 billion US) to build the additional 35 million metric tons of food storage India needs. In a July paper, it suggested that loosening restrictions on foreign investment in India’s retail sector could be the best way to get more storage space built.

Ashish Sanyal, managing director of retailing consultancy AMP Retail Services, said small businesses had nothing to fear from the big chains.

“At the end of the day this is like the high tide. All boats will rise. We will learn from the big retailers.”

Long delays in economic reforms in India have made investors increasingly wary of plowing money into the country.

India’s policymakers are now under acute pressure to find ways to attract foreign currency to help strengthen the rupee, which hit an all-time low against the dollar this week.

Traders say the central bank has been buying rupees in recent days but those measures are unlikely to reverse the currency’s plunge absent more farsighted policy reform.

The discussions on opening up India’s retail sector have been going on for 10 years.

“There is a limit to how much time we can spend on a decision,” said Singhvi, the Congress spokesman.

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Tens of thousands of Egyptians rallied Friday in Cairo’s Tahrir square with Islamists in the forefront to protest against what they say are attempts by the country’s military rulers to designate themselves as the guardians of a new Egypt. It was one of the largest rallies in Egypt in recent months.

Most rallies in Tahrir have been led by liberal- or left-leaning groups. But Friday’s rally was dominated by the country’s most organized political group, the Muslim Brotherhood, which has rarely come out in full force since the protests that forced President Hosni Mubarak to step down in February.

The Brotherhood had until recently avoided confrontation with the ruling Supreme Council of the Armed Forces, but now warns of escalating its protest campaign if plans to give permanent political powers to the military are not scrapped.

“The army has no role in ruling people. Its only job is to protect the country. We want civilian rule chosen through democracy,” said Hani Hegazi, a 28-year old Brotherhood member who traveled by bus to Tahrir from the Delta province of el-Beheira.

Banners read: “Down with military rule. Egypt our country is not a military camp.” Some demonstrators flew the Egyptian flag, while others including ultraconservative Salafis waved a banner declaring Islam’s holy book, the Quran, to be “our constitution.”

The rally was called to protest a document floated by the government which declares the military the guardian of “constitutional legitimacy,” suggesting the armed forces could have the final word on major policies even after a new president is elected. The document, which includes guiding principles for Egypt’s new constitution, also introduces clauses that would shield it from civilian oversight.

Most of Egypt’s pro-democracy groups object to the document, calling it an attempt to perpetuate military rule past the post-Mubarak transitional period which is supposed to end with the election of a new parliament and a new president.

In addition to the Brotherhood, Salafis, left- and liberal-leaning groups such as the April 6 movement and other youth revolutionary alliances joined the rally, demanding a timetable for the end of military rule, which began in February.

They have called for marches from mosques around Egypt to major squares, dubbing it the “Friday of the Single Demand” _ that demand being a clear date for the transfer of power to civilian rule. Many groups have planned to hold an open ended sit-in until a date has been set.

The Brotherhood says the document reinforces “dictatorship.”

“It contains articles that rob the people of their sovereignty and reinforces dictatorship. It constitutes a coup against the principles and goals of the January 25 revolution,” the group said in a statement issued Wednesday. Last-minute negotiations between the government and the Brotherhood failed to stave off their participation in the rally, or scrap the document payday loans lenders.

The show of force comes 10 days before the country’s first parliamentary elections since Mubarak stepped down, when a Brotherhood-affiliated political party is expected to fare well.

Anger against the Supreme Council has been building up over their management of the transition period. Many complain that the generals are recreating the Mubarak regime by cracking down on opponents, by refusing to order a thorough reform of the security services, and by monopolizing decision making. Islamists and liberals alike now express fear that the military council wants to hold on to power, a claim denied by the generals.

The military council had promised to transfer power to an elected civilian government within six months of Mubarak’s ouster. But according to a vague timetable in place, it may not be until early 2013 that a president is elected. Only the dates for the parliamentary elections, which are due to begin in ten days and which will drag into March, are yet known.

Walid Farouk, 32, who wore the heavy beard and traditional robe of the ultraconservative Salafi trend, said that Egypt had seen nothing good from military rule since the army first took power in 1952.

“All of us are scared that the army could try to hold on to power,” he said. “It is time for a civilian government.”

The writing of Egypt’s constitution has been a divisive issue, and details of who will write it and what it contains are at the heart of recent rallies.

Some liberals have supported the idea of writing guiding principles for the constitution, fearing that a parliament controlled by Islamists would insert religious principles into the document.

Even now, some liberals remain opposed to the Friday rally, saying a document is necessary to detail how members of the assembly are to be chosen, and controversial clauses can be negotiated.

But many others have come to distrust the military’s Supreme Council at least as much they distrust the Islamists.

At Friday’s rally, protesters are also expected to celebrate the birthday of one of the most prominent revolutionary to be jailed by the military prosecutor. Alaa Abdel-Fattah, a famous blogger and activist, was detained late last months for refusing to answer to the military prosecution on his alleged role in sectarian violence that left 27, mostly Christians, dead. He turned 30 on Friday.

Many hold the military responsible for the violence, and see Abdel-Fattah’s detention as an attempt to find a scapegoat and discredit activists.

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The 17-nation eurozone is considering two forms of leveraging to boost its euro440 billion ($600 billion) bailout fund’s capacity in a bid to contain the debt turmoil that threatens to engulf more European nations.

A document obtained by The Associated Press, which Germany’s government was sharing with key lawmakers Monday, shows the currency zone wants to give the bailout fund the ability to provide investors with a partial insurance against losses from its member states’ government bonds.

The eurozone document also foresees setting up a special investment vehicle that seeks to attract outside investors such as sovereign wealth funds, combining “public and private capital to enlarge the resources available to” the European Financial Stability Fund, or EFSF.

Leading German opposition lawmakers, who were briefed earlier Monday by Chancellor Angela Merkel on the plan, said the fund’s capacity will be boosted “beyond euro1 trillion” ($1.39 trillion) under the new rules.

But the draft document by the eurozone working group did not provide a headline figure for the bailout fund, stressing “a more precise number on the extent of leverage can only be determined after contacts with potential investors” and rating agencies.

Eurozone governments hope that the enhanced EFSF will be able to protect countries such as Italy and Spain from being engulfed in the debt crisis. To do that, however, it needs to be bigger or see its lending powers magnified.

German lawmakers will vote on the bailout funds’ new rules Wednesday, hours before an EU summit in Brussels is set to adopt them.

The draft document stressed that the EFSF would “benefit from the flexibility to deploy both options, which are not mutually exclusive.” The insurance model is designed to increase the demand for newly issued eurozone government bonds, lower the yields “thereby supporting the sustainability of public finances,” the document said.

Lowering the yields for troubled eurozone governments is a key step to counter the widening debt crisis, because spiraling yields on debt issued by Greece, Portugal and Ireland eventually cut them off from market financing, forcing the eurozone to provide those nations which an emergency loan package.

In the event of a default, “the investor could surrender the partial protection certificate” and “receive payment in kind with an EFSF bond,” the document said, referring to the insurance option.

The new investment facility, a so-called special investment purpose investment vehicle, is meant to allow the EFSF “to attract a broad class of international public and private investors.” The investment structure aims at creating “additional liquidity and market capacity to extend loans, for bank recapitalization via a member state and for buying bonds in the primary and secondary market,” the eurozone draft document said.

Beefing up the bailout fund is one part of a three-pronged eurozone plan to solve the crisis.

The other two parts are reducing Greece’s debt burden so the country eventually can stand on its own and forcing banks to raise more money so they can take losses on the Greek debt and ride out the financial storm that will entail.

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Dudes don’t drink diet.

Or at least that’s the idea behind Dr. Pepper Ten, a 10-calorie soft drink Dr Pepper Snapple Group is rolling out on Monday with a macho ad campaign that proclaims “It’s not for women.” The soft drink was developed after the company’s research found that men shy away from diet drinks that aren’t perceived as “manly” enough.

To appeal to men, Dr. Pepper made its Ten drink 180 degrees different than Diet Dr. Pepper. It has calories and sugar unlike its diet counterpart. Instead of the dainty tan bubbles on the diet can, Ten will be wrapped in gunmetal grey packaging with silver bullets. And while Diet Dr. Pepper’s marketing is women-friendly, the ad campaign for Ten goes out of its way to eschew women.

For instance, there’s a Dr. Pepper Ten Facebook page for men only. And TV commercials are heavy on the machismo, including one spot that shows muscular men in the jungle battling snakes and bad guys and appear to shoot lasers at each other.

“Hey ladies. Enjoying the film? Of course not. Because this is our movie and this is our soda,” a man says as he attempts to pour the soda into a glass during a bumpy ATV ride. “You can keep the romantic comedies and lady drinks. We’re goo

Dr. Pepper Ten is not the first diet soda aimed at men. (Think: Coke Zero and Pepsi Max.) But Dr. Pepper Ten’s ad campaign is the first to be so overt about courting men who want to drink a soda with fewer calories. The ads come at a time when overall sales in the $74 billon soft drink industry are slowing as more Americans buy healthier options like juice and bottled water. Volume has fallen from slightly over 10 billion cases in 2005 to 9.4 billion cases in 2010, according to Beverage Digest data.

“Regular sugared soft drinks have declined in recent years, and some consumers have taste issues with some of the diet sodas,” said John Sicher, editor and publisher of Beverage Digest, said.

Dr. Pepper said men, in particular, are dissatisfied with the taste and image of diet drinks guaranteed high risk personal loans. The company wouldn’t disclose the formula of Dr. Pepper Ten, but said that the drink has 10 calories and 2 grams of sugar, which gives it a sweeter taste. Dr Pepper said there are 23 flavors in its regular soda, (which has 150 calories and 27 grams of sugar per can) and Dr. Pepper Ten contains all of them.

The company, which declined to give figures for how much was spent on the campaign, also worked hard to craft a macho message. The company said ads for Dr. Pepper Ten will air on all major networks, FX and ESPN during college football games.

A Facebook page for the drink contains an application that allows it to exclude women from viewing content, which includes games and videos aimed at being “manly.” For instance, there’s a shooting gallery where you shoot things like high heels and lipstick, for example. There is also a “man quiz” with questions on activities like fishing and hunting.

Whether the ads will resonate with men remains to be seen. Paul McDonald, 25, who works in green energy contracts in Berkley, Calif., says he drinks soda labeled diet and doesn’t think there is any stigma attached.

“No one has ever made fun of me for drinking a Diet Coke, and I’m on a rugby team we make fun of each other for everything,” he said.

And women? Jim Trebilcock, executive vice president of marketing for Dr Pepper, said he’s not worried that they’ll be offended by the campaign. The drink and marketing were tested in six different markets across the country before being rolled out nationally, and women weren’t offended, he said. In fact, about 40 percent of people who have tried the soda so far are women.

“Women get the joke,” he said. “`Is this really for men or really for women?’ is a way to start the conversation that can spread and get people engaged in the product.”

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Ford Motor Co. said Tuesday it will add 5,750 jobs and invest $4.8 billion in its U.S. factories as part of a new contract deal with the United Auto Workers union.

The four-year deal was reached early Tuesday after eight straight days of bargaining. UAW leaders were expected to release further details of the contract later Tuesday at a meeting of union leaders in Detroit. The deal is subject to a vote by union members.

John Fleming, Ford vice president of manufacturing, said most of the new hires will be paid a lower wage than Ford’s older workers. The agreement is expected to lower Ford’s labor costs, which are the highest in the U.S. auto industry.

“The tentative agreement will enable us to improve our overall competitiveness here in the United States,” Fleming told reporters at Ford’s headquarters in Dearborn.

Fleming would not give details about where the new jobs would go. He said the jobs are in addition to 7,000 new positions that Ford announced earlier this year. The $4.8 billion in investments is also in addition to $1.4 billion previously announced.

Ford likely matched some of the provisions in the General Motors Co. agreement that was reached last month. The GM deal gives workers $5,000 signing bonuses, $1,000 a year for three years to cover inflation and at least $3,500 in profit-sharing this year. GM was able to avoid a pension increase for the first time since 1953, and Ford’s terms are expected to match that.

The pact still must be approved by Ford’s 41,000 UAW members, who work at 27 plants and other facilities around the country. Voting is expected next week. Approval could be a problem because many expected the company to restore pay raises and other benefits they sacrificed to help Ford through tough financial times starting in 2007.

UAW leaders said the contract keeps Ford’s costs and prices competitive but increases profit sharing.

“UAW members sacrificed when the company was struggling and now will share in Ford’s prosperity,” UAW Vice President Jimmy Settles said in a statement.

Up next is Chrysler Group LLC, where the talks could be more contentious. The company isn’t making as much money as Ford and GM and probably can’t afford the same deals.

The UAW talks are watched closely because they set wages for more than 112,000 workers in the auto industry and set the bar for pay at auto parts makers and foreign-owned automakers.

Ford shares fell 22 cents to $9.15 a share in morning trading Tuesday after sinking to a 52-week low of $9.05 earlier in the session.

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TORONTO

Since James Carrington landed the lead role at the Donald Danforth Plant Science Center, the center has seen an infusion of cash, adding to an already impressive endowment. In January, the Danforth Foundation announced its final gift to center

The United Auto Workers union won $5,000 signing bonuses, the possibility of sweeter profit-sharing checks and guarantees of more union jobs as part of a new four-year contract with General Motors Co., two people briefed on the talks said Saturday.

The deal, reached late Friday, also includes a $2- to $3-per-hour-pay raise for entry-level workers over the life of the contract and the promise of more jobs, the people said.

Both persons asked to remain anonymous because the details of the contract haven’t been reviewed by all local union leaders.

In addition, workers could get profit-sharing checks that are larger than the roughly $4,000 they received based on the company’s earnings last year. But the formula was changed so it is based only on GM’s North American financial results, said the people.

The GM deal will serve as a template for contracts that still must be negotiated with Chrysler Group LLC and Ford Motor Co. It would set the pay and benefits for 112,500 U.S. auto workers. It also will set the bar for pay and benefits at nonunion auto companies and other industries across the country.

The contract is the first since GM and Chrysler received government bailouts to make it through bankruptcy protection in 2009.

The UAW and GM would not give details of the contract. Union President Bob King said Friday that he won’t talk about them until local union leaders are briefed on the pact Tuesday in Detroit.

Workers have to approve the contract before it can take effect. A vote is expected within 10 days.

The union said in a statement Friday that the pact includes some of its major goals, including improvements in profit-sharing, new jobs and better health care benefits.

The deal also will include creative ways to cut GM’s hourly labor costs, which at $56 are still higher than those at nonunion U.S. plants owned by foreign competitors.

GM was the first of the Detroit Three to reach agreement with the UAW. Chrysler is likely to be next, followed by Ford, where little progress has been made in negotiations so far.

The UAW announced the GM agreement just after 11 p.m. EDT Friday, after a little more than seven weeks of closed-door bargaining.

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The world’s largest ticket sellers and the world’s largest social network have created a new interactive venture to let people buy concert and sports tickets near their friends.

Their Facebook friends.

So far, 9,000 events are linked to the interactive seat-selection maps.

“All of our NHL clients are using it. The Air Canada Centre is using it for the Raptors, and we have basic concern configurations done for them,” Kip Levin, executive vice president of E-commerce at Live Nation, told the Star on Thursday.

Live Nation owns Ticketmaster, where North American revenue dropped 11 per cent last year, and new CEO Nathan Hubbard has declared the future lies in social media.

“The Number 1 driver here is just to make the experience better,” said Levin. “A lot of events are social, so it’s valuable to you as a consumer.”

Another driver is the fact that 40 per cent of tickets for some events go unsold on average, often because potential buyers were unaware of the event.

Ticketmaster is hoping concert or game fans will also recommend an upcoming event on Facebook so their friends might know about it and then buy tickets, Levin said.

With this new feature, ticket buyers can tag their seat purchase through their Facebook site. Before they buy a ticket, they can see where other Facebook friends who’ve also tagged their purchases are sitting.

Facebook gets no money from the deal, said Levin, but “our clients have the option of taking the information and extending it into their ad units for sponsored stories.”

Acknowledging Facebook users’ ire over privacy controls, the feature allows a ticket buyer to limit who on Facebook can see their purchase.

The electronically generated information also gives Ticketmaster another level of spurring sales, he said.

“We know you bought Leafs’ tickets in the past, so now we can recommend games that you’ll know you have friends going to.”

About 75 per cent of the people who use Ticketmaster.com also use Facebook, Ticketmaster said on its blog.E

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