2011年10月11日星期二

Vitamin E tied to higher risk of prostate cancer

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By Genevra Pittman

NEW YORK | Tue Oct 11, 2011 5:21pm EDT

NEW YORK (Reuters Health) - Men taking daily vitamin E were more likely to get prostate cancer than those not taking the dietary supplement in a new study of close to 35,000 North Americans.

Over a decade, an additional one or two men out of 100 taking vitamin E would be expected to get prostate cancer, researchers found.

"If you have enough of these vitamins in your system... extra doesn't help you any, and too much of something like this can be harmful," Dr. Eric Klein from the Cleveland Clinic, one of the study's authors, told Reuters Health.

The findings, released today in the Journal of the American Medical Association, come on the heels of a study suggesting older women who take multivitamins have slightly increased death rates than those who don't (see Reuters Health story of October 10, 2011).

"There's a theme here that taking vitamins is not only not helpful but could be harmful" in people who aren't deficient, Klein said.

Still, one researcher who wasn't part of the new study said he doubts it means vitamin E causes prostate cancer.

According to the National Cancer Institute, about 241,000 men in the U.S. will be diagnosed with prostate cancer in 2011, and close to 34,000 will die from the disease.

Although men are typically screened regularly for prostate cancer with prostate-specific antigen (PSA) tests, a government-funded task force recently put out draft recommendations saying that the screening doesn't prevent men from dying of cancer, but may cause undue harm through unnecessary procedures.

For the current study, men in the U.S., Canada and Puerto Rico were randomly assigned to one of four groups. Starting between 2001 and 2004, about 9,000 men each took daily supplements of 400 international units (IU) of vitamin E, 200 micrograms of selenium, vitamin E and selenium together or a vitamin-free placebo pill.

The study was halted in late 2008 when the researchers saw a hint of an increased risk of prostate cancer in men taking vitamin E, but they kept monitoring men for cancer after they stopped taking the supplements. And it turned out that extra risk became clearer over time.

By mid-2011, about seven percent of men who had taken vitamin E only had gotten prostate cancer, compared to six percent of those assigned to the placebo pills.

The researchers didn't find an extra risk of prostate cancer in men who took only selenium or vitamin E together with selenium.

Klein and his colleagues say it's not clear how vitamin E would increase the risk of prostate cancer, and that not all past studies have shown it does any harm to the prostate. Some have even found a lower prostate-cancer risk with vitamin E.

He said the new findings aren't definite proof that vitamin E causes extra prostate cancers, but that there wasn't anything else that could explain why men taking the vitamin were more likely to be diagnosed with cancer -- for example, they weren't screened more frequently.

The supplement doses, he added, are much higher than what's in most over-the-counter multivitamins, which typically contain 15 to 25 IU of vitamin E.

Prostate cancer researcher Dr. Neil Fleshner, from the University of Toronto, was doubtful that vitamin E does in fact increase the risk of prostate cancer, and said the result may have been a chance finding, or a "false positive."

"It's an interesting finding. I'm not sure I believe it," he told Reuters Health. Either way, he said, vitamin E doesn't seem to be beneficial for prostate health.

"There's certainly no major evidence that vitamin E helps," he said. "So, why bother?"

Vitamin supplements are known to prevent disease in people who have vitamin deficiencies, Klein said, but so far studies generally haven't found much extra benefit in people who already get enough vitamins through their diet. Specifically, vitamin E has not been shown to protect against heart disease, colon cancer or lung cancer.

On the other hand, there is a growing body of evidence suggesting supplements may be harmful in high doses.

"Vitamins are not innocuous substances," Klein concluded.

SOURCE: bit.ly/rnslfz Journal of the American Medical Association, online October 11, 2011.


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Chocolate lovers have fewer strokes, study finds

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Chocolates made by Belgian Christine Scholtes Covic are displayed in her Lika Chocolate workshop in the village of Rakovica, in the Croatian region of Lika, some 150 kilometres (93 miles) south of Zagreb January 21, 2011. REUTERS/Nikola Solic

Chocolates made by Belgian Christine Scholtes Covic are displayed in her Lika Chocolate workshop in the village of Rakovica, in the Croatian region of Lika, some 150 kilometres (93 miles) south of Zagreb January 21, 2011.

Credit: Reuters/Nikola Solic

By Frederik Joelving

NEW YORK | Mon Oct 10, 2011 5:39pm EDT

NEW YORK (Reuters Health) - A sweet tooth isn't necessarily bad for your health-- at least not when it comes to chocolate, hints a new study.

Researchers studying more than 33,000 Swedish women found that the more chocolate women said they ate, the lower their risk of stroke.

The results add to a growing body of evidence linking cocoa consumption to heart health, but they aren't a free pass to gorge on chocolate.

"Given the observational design of the study, findings from this study cannot prove that it's chocolate that lowers the risk of stroke," Susanna Larsson from Karolinska Institutet in Stockholm told Reuters Health in an email.

While she believes chocolate has health benefits, she also warned that eating too much of it could be counterproductive.

"Chocolate should be consumed in moderation as it is high in calories, fat, and sugar," she said. "As dark chocolate contains more cocoa and less sugar than milk chocolate, consumption of dark chocolate would be more beneficial."

Larsson and her colleagues, whose findings appear in the Journal of the American College of Cardiology, tapped into data from a mammography study that included self-reports of how much chocolate women ate in 1997. The women ranged in age from 49 to 83 years.

Over the next decade, there were 1,549 strokes, and the more chocolate women ate, the lower their risk.

Among those with the highest weekly chocolate intake -- more than 45 grams -- there were 2.5 strokes per 1,000 women per year. That figure was 7.8 per 1,000 among women who ate the least (less than 8.9 grams per week).

Scientists speculate that substances known as flavonoids, in particular so-called flavanols, may be responsible for chocolate's apparent effects on health.

According to Larsson, flavonoids have been shown to cut high blood pressure, a risk factor for stroke, and improve other blood factors linked to heart health. Whether that theoretical benefit translates into real-life benefits remains to be proven by rigorous studies, however.

Nearly 800,000 Americans suffer a stroke every year, with about a sixth of them dying of it and many more left disabled. For those at high risk, doctors recommend blood pressure medicine, quitting smoking, exercising more and eating a healthier diet -- but so far chocolate isn't on the list.

SOURCE: bit.ly/qhsaZ0 Journal of the American College of Cardiology, October 10, 2011.


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UPDATE 1-Scania to cut Europe production on economic woes

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(Adds background, details from statement)

* Says to lower production 10 to 15 pct from Nov in Europe

* Says slowing economic activity in Europe, US affecting customers

* Says demand in Latin America stable at high level

* Shares down 4 pct

STOCKHOLM, OCT 10 - Swedish truck maker Scania (SCVb.ST) said on Monday it would cut its production rate in Europe from November due to weaker demand, knocking its share price lower.

"It is a matter of deceleration in Europe, but also a slower pace of order bookings from the Middle East," said Martin Lundstedt, Executive Vice President in charge of Scania's sales and marketing.

Scania said government financial problems in Europe and the US had begun to affect economic activity and led to hesitation among customers. It plans to cut production in Europe by 10 to 15 percent from November compared with the end of the third quarter.

The company, however, said demand in Latin America had stabilised at a high level.

Shares in Scania were down 4.7 percent at 1012 GMT compared to a 0.6 percent rise in the wider Stockholm bourse. .

Scania, majority-owned by German auto maker Volkswagen (VOWG_p.DE), said in late August its view of the market had not changed from July.

(Editing by Helen Massy-Beresford)


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D'Ieteren , VW set up Belgian vehicle finance j/v

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BRUSSELS | Mon Oct 10, 2011 3:43am EDT

BRUSSELS Oct 10 (Reuters) - Belgian car distributor D'Ieteren said on Monday it and Volkswagen Financial Services would set up a joint venture to finance Volkswagen vehicles in Belgium.

D'Ieteren distributes Volkswagen's (VOWG_p.DE) range in Belgium.

The joint venture, VDFin, should be operational from Jan 1, 2012, with financial services for private individuals, professionals and dealers, D'Ieteren said in a statement.

VDFin will combine D'Ieteren Lease and the operations of Volkswagen Bank Belgium. The agreement is subject to approval by the competition authorities. (Writing by Rex Merrifield)


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UPDATE 2-Konecranes cuts forecast after Q3 disappoints

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* Says 2011 core EBIT to be flat vs 2010

* Says services unit performance to miss expectations

* Shares fall some 4 pct (Adds analyst quotes, share reaction)

HELSINKI, Oct 10 (Reuters) - Finnish crane maker Konecranes cut its full-year profit forecast on Monday after reporting a weaker than expected third quarter performance in services.

Shares fell 4.0 percent to 14.69 euros in early trade. The stock has lost about 50 percent since early July.

The company said it now expects its 2011 core operating profit to reach the same level as last year, having previously predicted a rise.

Konecranes said its preliminary third-quarter order intake was about 459 million euros ($619 million), sales were 451 million and operating profit reached 26 million euros.

It also said its service segment profitability will fall short of expectations this year.

"Growth in deliveries has been slower than originally planned, which affects fixed cost absorption in the expanded service network. Growth in capacity utilization within key customer groups has stagnated, affecting spare parts demand and thus our profitability," it said in a statement.

Konecranes invested in growth and hired more services staff in the first half of the year.

"It was surprising that these problems occurred so soon, one could have imagined that 2012 is when slowdown begins to appear," said Ohman analyst Jari Harjunpaa.

Analysts said the markets were interested in hearing what action the firm would take to boost services profitability and what kind of uncertainties it saw.

In 2010 Konecranes reported 115 million euros of operating profit excluding restructuring costs, on sales of 1.5 billion euros.

Konecranes publishes third quarter earnings on October 20. ($1 = 0.741 euros) (Reporting by Terhi Kinnunen and Jussi Rosendahl; Editing by Greg Mahlich and Helen Massy-Beresford)


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India Sept car sales fall 1.8 pct y/y - industry body

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NEW DELHI | Mon Oct 10, 2011 4:19am EDT

NEW DELHI Oct 10 (Reuters) - Car sales in India fell 1.8 percent in September, an industry body said on Monday, as rising interest rates and vehicle costs hurt demand in the world's second-fastest growing auto market after China.

Indian automakers sold 165,925 cars in September, according to data released by the Society of Indian Automobile Manufacturers (SIAM).

Sales of trucks and buses, a key pointer to the country's economic activity, rose 18.05 percent to 70,634 in September, SIAM said.

Demand for cars had shrank in July for the first time in nearly three years. (Reporting by Sanjeev Choudhary; Editing by Ranjit Gangadharan)


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Renault to announce strengthened CEO role Friday-report

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PARIS | Mon Oct 10, 2011 4:16am EDT

PARIS Oct 10 (Reuters) - Auto maker Renault is expected to announce a board reorganisation on Friday that will widen the responsibilities of Chief Executive Carlos Ghosn, French daily La Tribune reported without citing sources.

Ghosn, who is also chief executive of Renault's Japanese alliance partner Nissan Motor , is expected to take on additional duties, such as internal audit and risk management, in a move to show the French car maker has become his main priority, the newspaper said.

Earlier this year Renault fired several executives based on suspicions of industrial espionage that later proved unfounded.

At that time, Ghosn came under fire for his handling of the scandal, which some critics said exposed weak risk controls at the car maker.

Renault was not immediately available to comment. (Reporting By Elena Berton; Editing by Helen Massy-Beresford)


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UPDATE 1-Protester dies in Indonesian Freeport demo - union official

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JAKARTA Oct 10 (Reuters) - Police fired warning shots in the air and a protester died on Monday during a demonstration involving thousands of mine workers at Freeport-McMoRan Copper & Gold Inc's Grasberg mine in Indonesia, a union official said.

Disgruntled workers seeking better pay and conditions at the world's third biggest copper mine have been on strike since Sept. 15, reducing mining, processing and concentrate shipments from Grasberg.

Union official Virgo Solossa said two workers were shot, and one later died in hospital as thousands of the miners pushed to enter their barracks to unload their belongings.

It was unclear who had shot the men, Solossa said. Freeport officials were not immediately available for comment.

Mine workers burned two trailers after their colleague was killed, according to local television footage seen by Reuters.

Unionised workers, about half of Freeport's 23,000 Indonesian workers, decided last week to remain on strike until Nov. 15, making this the longest stoppage in Indonesia's mining industry.

Miners in other developing nations have walked off the job this year to demand better pay as corporate profits surged.

Freeport, the world's largest publicly traded copper miner, is also facing a strike at its sprawling Peruvian Corro Verde mine. Union leaders last week failed to agree on a wage deal that would settle the strike.

Freeport Indonesia said last week that more employees had reported for work, and that it had scaled up mining and milling output and concentrate sales.

Union officials had planned to continue talks with the company after mediation ended in a deadlock two weeks ago.

The strike has entered its fourth week and the last time workers went on an eight-day strike in July, the company suffered production loss of 35 million lb (15,876 tonnes) of copper and 60,000 ounces of gold.

The company said last month it was unlikely to meet third-quarter sales estimates due to the industrial action.


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Horseback mob attacks Kyrgyz mining camp

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* Talas Copper Gold camp attacked for second time

* Horsemen set fire to buildings, beat security manager

* Joint venture between Gold Fields and Orsu Metals

* Foreign investors wary of mining sector

By Robin Paxton

ALMATY, Oct 10 (Reuters) - A mob of horsemen armed with sticks and petrol bombs attacked an exploration camp run by South African miner Gold Fields' joint venture in Kyrgyzstan, the latest in a series of assaults on mining companies in the Central Asian state.

Talas Copper Gold, a joint venture between Gold Fields and Britain's Orsu Metals , said on Monday that its security manager was severely beaten as he fled from a burning building at the exploration camp in Talas province.

The company said in a statement that the attack occurred shortly after midnight in the early hours of Saturday morning. Around 10 horsemen set fire to several buildings, it said.

"This incident does not appear to follow from any community action but seems to be a premeditated attack by a small group," the company said. It said the security manager was recovering in hospital.

The latest incident is another warning to potential foreign investors in Kyrgyzstan's mining sector. Talas Copper Gold said a criminal investigation was under way and that it would start its new drilling programme in November as planned.

Kyrgyzstan, a former Soviet republic of 5.5 million people, is preparing to elect its next president on Oct. 30, following a year in which its former leader was overthrown and hundreds were killed in mob violence.

Attacks on prospective mining developments in Kyrgyzstan have occurred on several occasions since the April 2010 revolution, disrupting attempts by the new government to develop a viable mining industry in the gold-rich republic.

Talas Copper Gold itself suffered a similar attack in March. Australian miner Kentor Gold has said supporters of its Andash copper and gold development, also in Talas province, have been threatened.

Employees of a Chinese-owned mining company were beaten in August at a separate development in Naryn province.

A single gold mine, Kumtor, contributes around 10 percent of Kyrgyzstan's gross domestic product and nearly half of its industrial production. Owned by Toronto-listed Centerra Gold Inc , it produced 7.8 million ounces, or 243 tonnes, from its launch in May 1997 to the end of 2010.

Prime Minister Almazbek Atambayev, who is running for president, told Reuters in June that the government would weed out corruption in the mining sector to secure the proceeds from many untapped metals deposits.

Talas Copper Gold has four exploration licences -- Barkol, Taldybulak, Kentash and Korgontash -- and has invested $15 million between 2005 and 2010. It has planned a further $2.5 million of investment this year.

To read a SPECIAL REPORT on Kyrgyzstan's mining industry:


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UBS downgrades Tata Steel to 'neutral'; cuts price target nearly half

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MUMBAI | Mon Oct 10, 2011 12:07am EDT

MUMBAI Oct 10 (Reuters) - UBS has downgraded India's Tata Steel to 'neutral' from 'buy' and cut the price target by nearly half as it expects a decline in earnings and does not expect a recovery in the company's European operations, mainly Corus.

The Swiss bank has cut the price target to 460 rupees from 860 rupees, citing lower steel prices and higher raw material costs.

"We believe Tata Steel's stock price is not attractive at the current levels," UBS said in a note to its clients.

Given limited visibility in macro recovery in near-medium term in Europe, Corus will remain an overhang given its high financial leverage and high cost structure, UBS added.

(Reporting by Indulal PM; Editing by Subhadip Sircar)


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Oman's MB Holding looks at buys in Toronto, London

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MUSCAT | Mon Oct 10, 2011 4:06am EDT

MUSCAT Oct 10 (Reuters) - MB Holding, an Omani mining and energy group, plans to take advantage of depressed valuations to buy a stake in listed firms on the Toronto and London exchanges, its chairman said on Monday.

Mohamed Al Barwani said the Omani firm, whose operations range from oil field services and mining to tourism, was looking at companies with a market value of up to $500 million.

"A lot assets are coming on the market at lower prices ... our primary interest is oil and gas and mining," Barwani told reporters on the sidelines of a MEED conference in the Omani capital.

"We have a lot of open bank lines at the moment."

MB's Mawarid Mining LLC took a 9.98 percent stake, worth about $50.1 million, in Canada's Nautilus Minerals in August. Nautilus is using funds raised to develop a copper project off the coast of Papua New Guinea.

Barwani said the privately-owned conglomerate's main acquisition focus lay in the copper and gold sectors but it would consider attractive oil and gas production or exploration assets, particularly in Europe, to build on its operations on the continent.

"We're not looking at hostile takeovers," he said. "We're not going to take 100 percent. We're currently looking very closely into Toronto, into London."

Family-owned MB Holding Co. LLC (MB) has four wholly owned subsidiaries active in land-based oil field services operations, notably in Oman and Australasia, a small Oman-based oil and gas upstream operation, and copper mining activities, complemented by the manufacturing of drilling equipment.


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AngloGold CEO says S.Africa mines debate hurting sector-paper

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JOHANNESBURG | Mon Oct 10, 2011 1:32am EDT

JOHANNESBURG Oct 10 (Reuters) - AngloGold Ashanti chief executive officer Mark Cutifani has said talk of mine nationalisation in South Africa is hurting investment in the sector, local Business Day newspaper reported on Monday.

His comments contrast those of Minerals Resources Minister Susan Shabangu last week that there is no evidence the nationalisation debate is harming investment.

"I will ask those that keep using the word (nationalisation) to stop using the world. It's the wrong word. That is what's scaring the world," Cutifani is quoted as saying.

"The real discussion is what is the role of the government in the development of industry in the new South Africa. The economic and social discussions that accompany that debate are raging all over the world. We are no different."

The African National Congress government has been at pains to reassure investors that it would not nationalise mines after calls by its youth wing that such a policy would improve the lives of the poor.

Economists have said nationalisation could bankrupt Africa's largest economy, with the bill for taking over all mining firms equal to about two-thirds of gross domestic product or twice the annual national budget. (Reporting by Olivia Kumwenda; Editing Helen Nyambura-Mwaura)


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UPDATE 1-BHP Olympic Dam expansion gets Australian green light

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BHP to incorporate Olympic Dam conditions into final assessment

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SYDNEY | Mon Oct 10, 2011 1:23am EDT

It also said it plans to incorporate environmental safeguards imposed by government regulators into its final assessment of the project, which analysts estimate will cost between $20 billion and $30 billion to develop.


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UPDATE 3-Australia approves BHP's $20-$30 bln Olympic Dam mine expansion

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* National and state governments approve expansion with conditions

* Enlarged copper and uranium mine to feed Asian growth

* BHP Billiton expected to give final go-ahead in 2012

By Sonali Paul and James Regan

MELBOURNE/SYDNEY Oct 10 (Reuters) - BHP Billiton moved closer to an estimated $20 billion to $30 billion expansion of its Olympic Dam copper and uranium mine after winning environmental approvals on Monday for the project in the deserts of southern Australia.

The approvals give BHP the green light to nearly quadruple the mine's copper output to 750,000 tonnes annually to help feed a growing market in Asia, especially China, where copper consumption is forecast to surge 6 percent this year.

BHP, expected to make a final decision in mid-2012, now has to weigh up the 150 conditions imposed by the national and South Australia state governments as part of assessing the mine's feasibility.

Once fully expanded, Olympic Dam would be on near-par with the massive copper mines of South America, though it would take years before it came close to matching the output of BHP's giant Escondida lode in Chile.

"It'll help balance the market and to that extent it's slightly bearish, but the market's been looking at this expansion for some time," said Citigroup analyst David Thurtell.

"I'm not sure whether anyone expected the Dam to be knocked back by the government."

The national and South Australia governments are keen for the project to go ahead because of the thousands of jobs it is expected to create.

As part of the conditions, BHP has agreed to set aside a chunk of land roughly the size of London as an environmental buffer zone and to monitor the impact of the mine on birds and fish inhabiting hundreds of kilometres surrounding the Olympic Dam mine site.

It will also construct a desalination project and pipes to bring seawater to the mine from over 300 kilometres away.

"The strict conditions I've imposed will help ensure protection of the natural environment, including native species, groundwater and vegetation, for the long term," Environment Minister Tony Burke said in a statement on Monday.

The proposal is also subject to independent reviews by the Australian Radiation Protection and Nuclear Safety Agency, since an expansion would also lift annual uranium production to 19,000 tonnes from around 4,000 tonnes now.

FEEDING CHINA'S DEMAND

Rio Tinto , which is helping develop Mongolia's giant Oyu Tolgoi copper mine and is partnership with BHP Billiton at Escondida, estimates total global demand for refined copper is expected to rise by more than 40 percent to 27 million tonnes by 2020.

BHP Billiton has yet to reveal the cost of the expansion, but analysts rank it as possibly the single biggest on the drawing board of the world's biggest miner, estimating costs of between $20 billion and $30 billion.

The project would require assembling one of the world's largest fleet of earth movers, with geologists estimating that it would take four or five years just to expose the ore body.

The expansion would also extend the life of the mine from about 20 years to more than 100 years.

Demand for refined copper in China has been increasing due to rapid development in telecommunications, power, equipment manufacturing, automobiles, construction and consumer goods.

Chile is currently the largest producer of mined copper, followed by other major producers such as Peru, the United States and Australia.

Thurtell said it may be too early to size up the impact of the Olympic Dam project on the global copper market.

"It's too far away, who knows what will happen to the market by then. Maybe the market might still be in deficit so it'll only partly fill the gap."

The South Australia state government said it aimed to finalise an agreement on royalties and infrastructure commitments for the expansion by Oct. 20.

Monday's clearances follow a six-year review of the expected impact of the expansion on everything from air quality in neighbouring towns to cuttlefish in the Spencer Gulf.

The company will need more than 600 licences and permits to meet these requirements.

BHP Billiton will also be allowed to expand its smelter, build an ore concentrator and other plants to process the additional ore and dump waste rock in a 150-metre high pile covering 67 square km (26 square miles).

The plan also includes an airport, gas-fired power station, 320-kilometre pipeline and a 105-km rail line.

The company has said it would put the project up for board approval in stages, with phase one, digging the open pit, up for sign-off around June 2012 and phase two, including building the concentrator, 18 months to two years later.

BHP shares slipped 0.3 percent on Monday, underperforming a 0.9 percent gain in the broader market.


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UPDATE 1-Kalahari says CGNPC offer talks resumed

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* Offer talks re-started after UK block

* CGNPC no longer restricted from changing terms of offer

LONDON Oct 10 (Reuters) - Kalahari Minerals Plc confirmed on Monday that offer talks had resumed with state-owned China Guangdong Nuclear Power Corp (CGNPC).

CGNPC is expected to relaunch its 270 pence ($422) a share offer, valuing the uranium miner at about $1 billion, following a temporary ban imposed by UK regulators, a source told Reuters on Friday.

CGNPC was in talks in March to buy Kalahari for 290 pence a share. In the days following the earthquake and nuclear disaster in Japan, the companies agreed CGNPC could cut the price to 270 pence, but they failed to persuade UK regulators and CGNPC was forced to withdraw its informal bid.

Since more than three months have elapsed since CGNPC announced the withdrawal of its possible offer, it is no longer restricted into making an offer on the same or better terms than those in its original potential offer, Kalahari said on Monday.

Kalahari also said it had waived another UK Takeover Panel code that had restricted the Chinese group from announcing an offer before Nov. 11.

Kalahari holds a 43-percent stake in Extract Resources , owner of the Husab project in Namibia, which is potentially the second-largest uranium mine in the world.

Shares in Extract Resources surged more than 10 percent on Monday in Australia on expectations it may also get a takeover offer from CGNPC.


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UPDATE 5-Disney's Iger to leave CEO post in 2015

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* Iger to step down March 2015, become exec chairman

* No potential successors named

* Disney shares fall 1 pct

By Lisa Richwine

LOS ANGELES, Oct 7 (Reuters) - Walt Disney Co Chief Executive Bob Iger will step down as CEO in March 2015 after nearly a decade at the helm, setting in motion a succession plan for the largest U.S. media and entertainment company.

The company did not mention possible successors, but industry speculation centered on Chief Financial Officer Jay Rasulo and the head of Disney's huge theme parks and resorts division, Tom Staggs.

Iger, 60, succeeded Michael Eisner as Disney's CEO in October 2005, which means his tenure as chief executive would be less than a decade long.

Eisner's reign at Disney, which ranks among the longest and most storied -- for better and worse -- in CEO history, lasted 21 years, from 1984 until 2005.

Disney shares fell 1 percent to close at $31.70 on the New York Stock Exchange. The company has increased in value by more than a third since Iger began his term.

Disney, which generates some $40 billion in annual revenue, is grappling with economic uncertainty and its impact on its three largest divisions: media, its movie studio and theme park resorts.

In August, the company posted better-than-expected quarterly results, but Wall Street analysts warned that low consumer spending may pinch in coming months.

"It's wise for Disney's board to have a very clear succession plan," said Miller Tabak & Co analyst David Joyce.

Still, he said, Iger's plan to leave the CEO post is "a little surprising given he's still a little young-ish CEO."

Speculation that Iger might have identified a successor picked up in 2009 after Disney said Staggs and Rasulo were swapping jobs.

Staggs, 50, was known as a favored executive and is considered a potential successor to Iger, but the former Wall Street analyst lacked operational experience. By putting Staggs in charge of Disney's all-important theme parks, analysts said, Iger may have been affirming Staggs as a strong internal candidate for the top job while giving the finance chief much-needed operating experience.

Iger will assume the post of chairman, in addition to CEO, starting in March 2012, when Chairman John Pepper retires. Iger will hold the jobs through March 31, 2015, and continue as executive chairman through June 30, 2016.

His annual salary rose to $2.5 million from $2 million now. Iger also could receive as much as $12 million in annual cash bonuses and up to $15.5 million a year in options and restricted shares.

Iger, who got his start as a TV weatherman, joined Disney after Eisner's deal to buy Capital Cities/ABC in 1995, a $19 billion deal that caught everyone flat-footed when announced. Iger served as Eisner's second-in-command for the last five years of his tenure.

His loyalty and deference to Eisner led to mocking from media insiders that Iger had no thought that Eisner did not already approve.

After taking over in 2005, however, Iger stunned the very same people with bold moves that betrayed his prior image. In a matter of months, he not only smoothed over the friction Eisner created with Apple Inc co-founder Steve Jobs, but also convinced Jobs to sell Pixar animation studios to Disney for $7.4 billion.

In addition to the studio, that deal also made Jobs the company's largest individual shareholder and landed him on Disney's board, giving Iger unfettered access to Jobs' insights on how to re-orient an old media company to the digital world.

Iger bought Marvel Entertainment for $4.4 billion, aggressively moved Disney programming online through partnerships with online video service Hulu and others, and ousted longtime executives such as Dick Cook, David Westin and Stephen McPherson who he felt were underperforming.

In terms of style, Iger and Eisner could not have been more different. Eisner was brash, aggressive, confrontational and hands on in every aspect of Disney's business. Iger is quiet, laid back, borderline robotic and prefers to allow those under him to run their fiefdoms as they see fit.

"He's a very calm personality," Wunderlich Securities analyst Matthew Harrigan said, adding that "people are very happy with Iger from a strategic perspective."

Iger rose to the CEO role in part because of disenchantment among investors at Eisner's leadership, particularly the way he handled the $66 billion hostile takeover offer from Comcast Corp in 2004.

At the company's annual shareholder meeting following that offer, Eisner received a stunning 43 percent no-confidence vote from shareholders and was forced to relinquish his chairman of the board title.


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UPDATE 1-Kuwait open to investment opportunities in Europe-FinMin

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DUBAI | Mon Oct 10, 2011 4:45am EDT

DUBAI Oct 10 (Reuters) - Kuwait is open to any investment opportunities in Europe if they are compatible with risk controls, the OPEC member's finance minister Mustapha al-Shamali was quoted as saying by the state news agency KUNA on Monday.

Kuwait, the world's No. 6 crude exporter is one of the richest countries globally with its sovereign wealth fund, Kuwait Investment Authority (KIA), managing assets in excess of $290 billion. It owns stakes in Citigroup , Daimler AG (DAIGn.DE) and Agricultural Bank of China among other companies.

Asked whether Kuwait would consider buying euro zone government bonds, including Italian bonds, Shamali told KUNA in Beijing: "We are open to any investment opportunities in all parts of Europe, as long as these investments are compatible with risk controls and they fall within our investment criteria."

Italy will test investor nerves with bond issues later this week after its credit rating was downgraded last week by Moody's and Fitch.

The markets have been speculating that cash-rich Gulf oil exporters such as Qatar might inject money into European banks exposed to cash-strapped governments such as Greece.

Saudi finance minister said last month the euro zone debt crisis was a cause for concern but it might also be an opportunity for investors.

In August, Qatar bought about 17 percent of the lender that will be created by a merger of Greece's Alpha Bank (ACBr.AT) and Eurobank (EFGr.AT), injecting 500 million euros into the new entity.

Shamali said on Monday that KIA's long-term investment strategy meant it could withstand large market fluctuations caused by the euro zone debt crisis.

"As a long-term international investor, the authority seeks to invest in growing economies across the world, including advanced economies," Shamali said. (Reporting by Angus McDowall and Martin Dokoupil; Additional reporting by Nour Merza; Editing by Susan Fenton)


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Anglo Irish says no imminent sale of UK loan book

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DUBLIN | Mon Oct 10, 2011 3:26am EDT

DUBLIN Oct 10 (Reuters) - Anglo Irish Bank is not expecting imminent progress in the sale of its 9 billion euro ($12 billion) UK loan book due to market conditions, chief executive Mike Aynsley was quoted as saying by the Irish Independent.

Anglo will "continue to explore its options regarding both the U.S. and the UK loan books", but "developments are not imminent", the newspaper quoted Aynsley as saying in an internal email sent on Friday.

"When markets are favourable, we will be able to move forward with confidence, whether it be on an individual loan or a group of them," Aynsley was quoted as saying.

The collapse of Anglo Irish, which typified the loose lending practices that brought the local banking sector to its knees and forced Ireland into an EU-IMF bailout, is expected to cost the state up to 28 billion euros ($38 billion).

The group is expected to sign a deal to sell its $9.5 billion U.S. commercial real estate loan portfolio in the next week, the report said.

Aynsley said the banks was "currently working through the final due diligence phase with a number of bidders" on the sale of the bank's wealth management business, a process that would be completed by December.


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UPDATE 1-Robot flick 'Real Steel' wins weekend box office

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* 'Real Steel' punches up $49.4 million globally

* George Clooney's 'Ides of March' second

By Lisa Richwine

LOS ANGELES, Oct 9 (Reuters) - Boxing robots clashed with Hollywood titan George Clooney at the weekend movie box office, and the fighting machines came out the winner.

Robot action flick "Real Steel" starring Hugh Jackman topped the domestic box office and rang up $49.4 million in global ticket sales. Clooney's political thriller "Ides of March" finished second.

"Real Steel" brought in an estimated $27.3 million over three days at U.S. and Canadian theaters, distributor Walt Disney Co said on Sunday. Ticket sales beat studio forecasts for an opening in the low- to mid-$20 million range.

The film added $22.1 million from 19 international markets, for a combined total of $49.4 million. The movie opened in one-quarter of international markets and will debut more widely in the coming weeks.

"Real Steel" stars Jackman as a father who works with his son to restore a battle-ready robot to fight for a championship. The DreamWorks-produced film cost about $110 million to make and featured giant, remote-controlled robots rather than computer images common in action and sci-fi films.

The movie drew overwhelmingly positive reactions from audiences, said Dave Hollis, Disney's executive vice president for motion picture sales and distribution. The film earned an A on average from filmgoers polled by CinemaScore, and an A+ from those under 25.

About 12 percent of sales, or $3.2 million, came from showings on giant Imax screens.

CLOONEY'S LUCK

"Ides of March," the only other new film in wide release, finished second with $10.4 million domestically, slightly ahead of studio estimates.

Clooney directed, co-wrote and co-starred in the film as a Democratic presidential candidate fighting to win a key primary as a scandal hits his campaign. Ryan Gosling plays the central character, an ambitious spokesman thrust into a moral dilemma. Other stars include Philip Seymour Hoffman, Paul Giamatti and Marisa Tomei.

Cross Creek Pictures produced the film, which was adapted from an off-Broadway play, for about $12.5 million, and Sony Corp unit Columbia Pictures distributed the movie in the United States. Audiences polled by CinemaScore gave the film a B on average.

Last weekend's box office leader, family film "Dolphin Tale," fell to third place with $9.2 million. The feel-good movie, based on the true story of an injured dolphin rehabilitated with a prosthetic tail, has brought in $49.1 million since its debut.

Baseball drama "Moneyball," starring Brad Pitt, stayed in the game during its third week in theaters. The movie earned $7.5 million, landing in fourth place and bringing the total since its release to $49.3 million.

Taking fifth place was "50/50," a buddy comedy about a young man's battle with cancer. The film generated $5.5 million domestically during its second weekend in theaters. Its total ticket sales to date sit at $17.3 million.

"Dolphin Tale" was distributed by Warner Bros, a unit of Time Warner Inc . "Ides of March" and "Moneyball" were released by Columbia Pictures, a unit of Sony Corp. Summit Entertainment released "50/50."


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S.Korea sets 2012 CO2 cut volume for industry, power

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* Total of 366 firms should cut 8.3 mln T CO2, or 1.42 pct

* Of total, firms in industry should cut 4.7 mln T CO2

* Power sectors should cut 3.6 mln T CO2

By Ju-min Park and Cho Mee-young

SEOUL, Oct 10 (Reuters) - South Korea aims to cut 8.3 million tonnes of CO2 equivalent from projected industrial and power sector greenhouse gas emissions in 2012, as it detailed how it would meet a target of a 1.44 percent reduction next year.

Asia's fourth-largest economy, which had already unveiled next year's percentage target, disclosed reduction targets by tonnage and by individual company.

Under next year's targets, a combined 366 firms in the industrial and power sectors must cut emissions 1.42 percent below their business-as-usual (BAU) levels.

The firms are allowed to emit 576.8 million tonnes of CO2 equivalent next year instead of a projected 585.2 million tonnes, the Ministry of Knowledge Economy said in a statement on Monday.

Industry will be required to cut 4.7 million tonnes of CO2 equivalent in 2012, 1.37 percent below its BAU level, while the power sector will need to cut 3.6 million tonnes of CO2 equivalent, or 1.50 percent below its BAU level, the statement said.

Firms that fail to meet their targets will be issued with an enforcement notice and if they fail to act, a fine to a maximum of 10 million won ($8,485) will be imposed, it added.

These emission caps are likely to be used as a baseline when the Asian nation introduces its emissions trading scheme in 2015, and to help it meet a target of a 30 percent cut in emissions by 2020.

South Korea's parliament is currently reviewing an emissions trade bill, a draft of which was finalised by the government in April by increasing free carbon allowances and softening penalties for non-compliance due to strong opposition from industry.

The government wants the bill passed by the year end to start the scheme from 2015. The emissions trading laws would only be binding from 2015 for those producing more than 25,000 tonnes of CO2 a year.

Major concerns for many Korean firms, particularly its big exporters, are the failure of competitors such as the United States, Japan and Australia to pass similar schemes that put a price on carbon.

South Korea's top emitters include major employers such as POSCO , the worlds No.3 steelmaker, and Samsung Electronics , the world's biggest electronics firm by revenue.

Under next year's targets, POSCO should slash its carbon emissions by 963,000 tonnes, which accounts for 20.6 percent of the overall industry reduction.

Emissions from South Korea's economy have doubled since 1990 and are slightly larger than Australia's nearly 600 million tonnes. On a per-capita basis, they are on a par with some European nations. ($1 = 1178.500 Korean Won) (Reporting by Cho Mee-young and Ju-min Park; Editing by Michael Urquhart)


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2011年10月10日星期一

Aramco says crude price still healthy to support investments -CNBC

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SINGAPORE | Mon Oct 10, 2011 2:40am EDT

Falih also said he was confident there was enough political will to resolve the euro zone debt crisis.


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Samsung delays new Android model release after Jobs death

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SEOUL | Sun Oct 9, 2011 7:55pm EDT

SEOUL Oct 10 (Reuters) - Samsung Electronics Co said on Monday it had delayed launching a new smartphone based on Google's latest version of Android operating system due to the death of Apple's co-founder Steve Jobs.

Samsung planned to introduce the new product based on Ice Cream Sandwich system, which will unite the Android software used in tablets and smartphones, at its Mobile Unpack event in San Diego on Tuesday.

"We decided it was not the right time to announce a new product while the world was expressing tribute to Steve Jobs' passing," a Samsung spokesman said.

Samsung has yet to decide the new date for the release, the spokesman said.

Jobs death on Wednesday, following a years-long battle with pancreatic cancer, sparked an outpouring of tributes from world leaders, business rivals and fans.

Samsung is the biggest maker of mobile phones based on Android, which is available for free to handset vendors such as Motorola Mobility and HTC Corp . Android phones have a greater combined market share than Apple's iPhone, the world's best-selling smartphone.


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UPDATE 1-Russia's X5 Retail cuts full-year sales outlook

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* Sees gross sales up about 35 pct vs 40 pct previously

* Says margins could be hit in Q4, beyond by price cuts

* Q3 sales growth slows to 32 pct from 41 pct in Q2

* Like-for-like sales up 4 pct vs 10 pct in Q2

MOSCOW, Oct 10 (Reuters) - Russian food retailer X5 cut its full-year 2011 sales growth outlook on Monday, citing worsening economic conditions, and warned its margins could take a hit from a price-cutting campaign aimed at keeping customers.

X5 now expects full-year gross rouble sales growth to be closer to 35 percent, compared to an earlier target of 40 percent, the company said in a statement.

"The continuing deterioration of the macro-economic environment could further deepen our customers' trading down in Q4 2011 and beyond," said the company, part of Mikhail Fridman's Alfa Group empire.

Its third-quarter sales grew 32 percent in rouble terms to 105 billion roubles ($3.3 billion), a slowdown from a 41 percent increase in the previous quarter.

Of that total, organic sales -- excluding the recently acquired Kopeika chain -- were up 18 percent in roubles, while like-for-like sales increased 4 percent compared to a 10 percent rise in the second quarter.

X5 said it would cut prices to keep thrifty customers coming to its stores.

"In an effort to support our customer base in an uneasy economic environment, we are increasing the pace of a promo-campaign in Q4 2011 that together with a comprehensive aged stock clearance could adversely affect X5's margins in Q4 2011."

X5 also said it was on track to deliver on its objective of 540 store openings in 2011.


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Chile hydro projects near deal on power line-report

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* Companies close to deal on sharing power line route

* Both hydroelectric projects due to operate in 2019

SANTIAGO Oct 8 (Reuters) - Officials from Chilean hydroelectric power projects HidroAysen and Energia Austral are close to a deal on sharing land for power lines, a local newspaper reported on Saturday.

The $3.5 billion HidroAysen hydropower project, a joint venture between leading generator Endesa Chile and partner Colbun , has sparked massive protests over environmental concerns.

"We're very well advanced and pretty close to a final agreement. There are a few points outstanding that we're going to resolve next week," HidroAysen's deputy chief executive Daniel Fernandez was quoted as saying by El Mercurio.

The newspaper said the two projects, which will be built in a remote part of southern Chile, would share a 600-km (370-mile) strip of land. There had been questions over whether they would reach an agreement.

HidroAysen officials have said they expect to submit an environmental impact study for their power line before the end of the year.

Energia Austral, a unit of mining company Xstrata Copper , plans to submit its environmental impact study for the power line next year.

Both projects are scheduled to start operating in 2019.


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Jova strengthens to a category 2 hurricane

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MEXICO CITY | Mon Oct 10, 2011 12:16am EDT

MEXICO CITY (Reuters) - Hurricane Jova strengthened to become a Category 2 storm off the Pacific coast of Mexico on Sunday and Mexican authorities issued a hurricane warning for coastal areas popular with tourists.

The storm, with top winds reaching 100 miles per hour, was about 260 miles southwest of the port city of Manzanillo at 8 p.m. PDT (0300 GMT on Monday), the Miami-based National Hurricane Center said.

Forecasters expect Jova to strengthen further during the next 48 hours and it could become a major hurricane by Tuesday, the center said.

Mexico issued a hurricane warning for 200 miles of coastline stretching south from Cabo Corrientes below Puerto Vallarta in Jalisco state.

Hurricane-force winds were possible within the warning area by Tuesday afternoon. The storm is moving east at about 7 mph and is expected to turn toward the northeast on Monday night, the NHC said.

"Jova could become a major hurricane by Monday night or Tuesday," the hurricane center said. "The center of the hurricane will be nearing the coast of Mexico by Tuesday afternoon."

Mexico has no oil installations in the Pacific but Jova is headed to a part of the coast popular with tourists.

All Mexico's major ports were open.

(Reporting by Elinor Comlay; Editing by Anthony Boadle)


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UPDATE 1-Slovaks in last-ditch talks on euro fund

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* Coalition party SaS wants tighter EFSF mandate, ESM opt-out

* Leaders to hold last-ditch meeting on Monday

* Parliament vote due on Oct. 11, fate of government at stake

By Martin Santa and Michael Winfrey

BRATISLAVA, Oct 10 (Reuters) - Slovakian coalition leaders meet on Monday in a last-ditch bid to reach agreement on widening the mandate of the euro zone's bailout fund, under increasing pressure from turmoil in euro zone banks and a shift in public opinion at home.

Only Slovakia and Malta have yet to approve extra powers for the European Financial Stability Facility (EFSF) in its fight against the sovereign debt crisis.

The small liberal Freedom and Solidarity (SaS) party argues that, as the zone's second poorest member, Slovakia should not have to bail out other euro zone countries, but it says it is still open to talks.

The coalition parties called a meeting for 4 p.m. (1400 GMT) ahead of a vote on the EFSF in parliament on Tuesday, a spokesman for the SaS said. The party has so far said it will vote against the EFSF expansion.

As Slovakia drags its heels, the crisis has picked up speed. Franco-Belgian bank Dexia agreed early on Monday to the nationalisation of its Belgian division and secured state guarantees, and the Greek central bank effectively nationalised a small bank on Monday.

German Chancellor Angela Merkel and French President Nicolas Sarkozy said after talks late on Sunday that they would unveil new measures in the coming weeks to solve the debt crisis, but gave no details.

An opinion poll by the Polis agency showed on Monday that Slovaks had begun to lean towards approving an expansion of the facility, which may put added pressure on SaS to give in.


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UPDATE 1-Slovaks in last-ditch talks on euro fund

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AppId is over the quota

* Coalition party SaS wants tighter EFSF mandate, ESM opt-out

* Leaders to hold last-ditch meeting on Monday

* Parliament vote due on Oct. 11, fate of government at stake

By Martin Santa and Michael Winfrey

BRATISLAVA, Oct 10 (Reuters) - Slovakian coalition leaders meet on Monday in a last-ditch bid to reach agreement on widening the mandate of the euro zone's bailout fund, under increasing pressure from turmoil in euro zone banks and a shift in public opinion at home.

Only Slovakia and Malta have yet to approve extra powers for the European Financial Stability Facility (EFSF) in its fight against the sovereign debt crisis.

The small liberal Freedom and Solidarity (SaS) party argues that, as the zone's second poorest member, Slovakia should not have to bail out other euro zone countries, but it says it is still open to talks.

The coalition parties called a meeting for 4 p.m. (1400 GMT) ahead of a vote on the EFSF in parliament on Tuesday, a spokesman for the SaS said. The party has so far said it will vote against the EFSF expansion.

As Slovakia drags its heels, the crisis has picked up speed. Franco-Belgian bank Dexia agreed early on Monday to the nationalisation of its Belgian division and secured state guarantees, and the Greek central bank effectively nationalised a small bank on Monday.

German Chancellor Angela Merkel and French President Nicolas Sarkozy said after talks late on Sunday that they would unveil new measures in the coming weeks to solve the debt crisis, but gave no details.

An opinion poll by the Polis agency showed on Monday that Slovaks had begun to lean towards approving an expansion of the facility, which may put added pressure on SaS to give in.


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UPDATE 1-Australia competition body to scrutinise Woolworths, Coles

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n" readability="45">Oct 10 (Reuters) - Australia's competition watchdog said on Monday it would pay close attention to the market power of top supermarkets Woolworths and Coles , which hold a duopoly.

The Australian Competition and Consumer Commission's new chairman, Rod Sims, said many suppliers felt they had no ability to negotiate with the powerful supermarket chains.

"The two major supermarkets have significant market power, with many smaller suppliers feeling they lack a real ability to negotiate supply arrangements. The ACCC can and will watch closely to ensure any such dealings do not involve unconscionable conduct by the supermarkets," Sims told a business lunch.

Many local and international food suppliers, including Kraft Foods and Goodman Fielder , have said they have little ability to negotiate as the two supermarket chains dominate the industry and have also increased their share of home-label goods.

Sims said the supermarkets would need close scrutiny to ensure they did not misuse market power by selling both branded and private-label products.

In 2008, the consumer watchdog held an inquiry into the supermarket industry and concluded it was "workably competitive".

Sims said the ACCC would also watch dominant telecoms firm Telstra during the rollout phase of the new high-speed broadband network, when rivals will still depend on Telstra's copper network.


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UK Dungeness B21 nuclear unit stopped on Sunday

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LONDON | Mon Oct 10, 2011 2:31am EDT

"We took the decision to take unit 21 at Dungeness B power station offline on Sunday 9 October 2011," she said.


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UPDATE 2-BBC to shrink as it shares in UK spending cuts

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AppId is over the quota

* Follows 20 percent reduction in budget

* 2,000 jobs to be axed, senior manager roles to be cut

* Labour unions warn programming, journalism will suffer (Adds detail, background)

By Kate Holton and Georgina Prodhan

LONDON, Oct 6 (Reuters) - The BBC is set to axe over 10 percent of staff in its management, programming and news divisions after Britain's cash-strapped government imposed deep spending cuts on the world-renowned, publicly-funded broadcaster.

The corporation set out the changes on Thursday in response to a 20 percent cut to its annual 3.5 billion pound ($5.4 billion) budget imposed by the government a year ago as part of the deepest public spending cuts in decades.

Unions said the changes would damage independent journalism at a time when a phone hacking scandal has revealed embarrassingly close ties between the Prime Minister David Cameron and Rupert Murdoch's right-leaning News Corp , a long standing critic of the BBC.

The BBC budget was imposed by the government with very little negotiation. Around 600 BBC News posts will now go.

"By 2016, the BBC will be significantly smaller than it is today," it said.

With eight national TV channels, 50 radio stations and an extensive website, the BBC's size and resources had already attracted envy and criticism from rivals, led by James Murdoch at the dominant pay-TV group BSkyB .

As the recession gathered steam in 2008, that criticism intensified as advertising-funded groups such as ITV struggled to cope, cutting staff and budgets.

Under the new plans, the corporation will cut 2,000 jobs, reduce the budget for buying sports and other rights, slash the number of senior managers and share more content.

More repeats will be shown on television and property in west London will also be sold. The changes will result in savings of around 670 million pounds a year by 2016/17.

"The realities of what this country looks like in 2011 and what households up and down the country are going through, what other public institutions are going through, (means) it would be a bit odd if the national broadcaster wasn't feeling some of the same pressures," Director General Mark Thompson said.

LAST MINUTE DEAL

Last year, the BBC agreed to freeze the annual licence fee, payable by every TV-owning British household, at 145.50 pounds. It is also taking on extra costs from the government including funding the BBC World Service, which is broadcast overseas.

The agreement was hammered out in a matter of days, stripping out the months of negotiation normally involved in setting a licence fee, as the coalition government scrambled to cut spending after taking power.

The National Union of Journalists condemned the move and called again for the licence fee to be renegotiatied "especially given what has since emerged about the close relationship between the government and Rupert Murdoch at the time the deal was done."

The media and entertainment union BECTU said the cuts were a direct result of the "shocking 11th hour deal" on the licence fee which "will be the cause of regret for years to come".

The BBC towers over Britain's media landscape with a rich offering of drama, comedy and children's programming, a huge newsgathering operation and some of the UK's most popular websites.

In a lecture more than two years ago, News Corp executive and BSkyB Chairman James Murdoch lashed out at the BBC, accusing it of making a land grab for power and calling for a radical overhaul of British television regulation.

The pendulum has since swung back in favour of looser regulation more favourable to commercial rivals and lower public spending, especially since the recession and the installation of a centre-right coalition government in 2010.

Alex DeGroote, media analyst at London brokerage Panmure Gordon, said the slimming down of the BBC would help level the playing field in Britain, where commercial media companies were up against a far stronger public rival than their peers abroad.

"There's always been a BBC discount for commercial media in this country. It got particularly high in 2002-05. That's when you had a massive expansion of the BBC's inventory -- more digital radio, BBC3 and BBC4, lots of Internet sites," he said.

BSkyB should be well placed to benefit. It is increasing the budget it spends on programming and has recently signed a deal to share the broadcasting of Formula One with the BBC. It is also already very aggressive in acquiring sports rights and drama from the United States. (Editing by Will Waterman and David Cowell)


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UPDATE 1-Russia ready in principle to buy Spanish debt

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* Euro zone needs to devise debt strategy first

* Russia the world's third-largest reserve holder

MOSCOW, Oct 10 (Reuters) - Russia is ready in principle to buy Spanish government debt once the euro zone's member states have put in place a strategy to overcome the currency bloc's debt crisis, Arkady Dvorkovich, economic adviser to President Dmitry Medvedev, said on Monday.

Russia is the world's third-largest reserves holder and has over two-fifths of its $517 billion in foreign reserves invested in euro-zone sovereign debt.

"When the European countries announce a concrete and clear strategy to exit the crisis, and if in the framework of this strategy support from Russia and other BRIC countries is necessary, then we would provide such support," Dvorkovich said in response to a question.

Dvorkovich, attending a conference in Moscow with Spanish Economy Minister Elena Salgado, said Salgado had met Russia's former Finance Minister Alexei Kudrin and Foreign Minister Sergei Lavrov.

Salgado left the event without taking questions from reporters.

The BRIC nations -- Brazil, Russia, India and China -- are a loose coalition of large emerging economies that together hold the bulk of the world's foreign exchange reserves.

Of Russia's total reserves, $109 billion are held in two sovereign wealth funds whose asset allocation is set by the finance ministry. The central bank decides how the remainder is invested.

Moscow has generally taken a sceptical approach towards offering bilateral financial support to euro-zone countries, saying it would prefer to invest in bonds issued by a common bailout fund, the European Financial Stability Facility (EFSF).

Officials have also said that they would prefer to support any debt initiative that is put together under the auspices of the Group of 20 nations, which is due to hold a summit in Cannes, France, next month.


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India to unveil telecoms policy as high-growth sector struggles

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By Devidutta Tripathy

NEW DELHI | Mon Oct 10, 2011 2:38am EDT

NEW DELHI Oct 10 (Reuters) - India is set to unveil a new telecoms policy that could lead to consolidation in the fiercely competitive industry and make it more transparent after it was rocked by a scandal that may have cost the government up to $39 billion in lost revenue.

The new policy, due to be announced at 3 p.m. (0930 GMT) on Monday, is expected to include revised rules on the grant and pricing of second-generation radio spectrum, while mergers and acquisition rules for the sector could also be relaxed.

For carriers - whose share values and margins have been battered by intense price competition that makes calls in India among the cheapest in the world - the policy is expected to be a mixed blessing.

Shares in two of the biggest listed carriers, Bharti Airtel and Idea Cellular , were initially lower on Monday, underperforming the broader market , before turning higher. Reliance Communications shares were up.

"Regulatory head-winds are always there for telecoms," said K.K. Mital, head of portfolio management at Globe Capital Market Ltd in New Delhi.

Mital said operators' costs will rise if spectrum prices are market-linked, and he noted talk that roaming would be made free.

India decided to overhaul its decade-old rules for the industry after alleged rigging in the grant of licences in 2007/08 came to light late last year, forcing the then-telecoms minister to resign. A probe into the case is on and police have charged 14 people so far, including the former minister.

PRICE WAR

With more than 850 million mobile subscribers, India's mobile market trails only China's. But the 15-player market is in the throes of a vicious price war that broke out in the second half of 2009, squeezing profitability.

Telecoms Minister Kapil Sibal, who took over last November, has said the government will separate the 2G radio spectrum that now comes free with licences, and instead ask companies to pay for the air waves they are assigned based on market prices.

The minister has also said that companies will be asked to pay market-linked prices for existing 2G radio-spectrum holdings beyond 6.2 megahertz.

While mergers and acquisitions rules are expected to be relaxed to help consolidation in the crowded market, Sibal has said the government will not let the number of players in any telecoms zone fall below six. India allocates mobile phone licences by zone, of which there are 22.

New rules are also expected on the renewal of telecoms licences and companies may be allowed to share and trade radio spectrum. Sibal has said telecoms licences should be renewed for 10 years, compared with 20 years under the existing rule.

The new policy is expected to include measures to facilitate the funding of network roll out by operators, which have been squeezed by a drying up of bank loans in recent months.

Among other measures, the government may allow nationwide free domestic roaming for mobile subscribers and allow users to retain their existing mobile number even if they switch telecoms zones.


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Deals of the day -- mergers and acquisitions

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AppId is over the quota

n">Oct 10 (Reuters) - The following bids, mergers, acquisitions and disposals involving European, U.S. and Asian companies were reported by 0900 GMT on Monday:

** Superior Energy Services Inc has agreed to buy Complete Production Services Inc in a cash-and-stock deal valued at $2.7 billion, creating an entity that could expand its footprint in the oil-field services sector.

** A unit of China Petrochemical Corp (Sinopec) has signed a deal to buy Canadian oil and gas explorer Daylight Energy Ltd for C$2.2 billion ($2.1 billion) in cash, underscoring China's quest to secure enough energy to power its booming economy.

** Belgian bank KBC has agreed to the sale of its KBL private banking unit for 1.050 billion euros ($1.42 billion) to Qatari-backed Luxembourg firm Precision Capital, it said on Monday, falling 300 million euros short of previous plans for the sale.


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S.Korea sets 2012 CO2 cut volume for industry, power

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* Total of 366 firms should cut 8.3 mln T CO2, or 1.42 pct

* Of total, firms in industry should cut 4.7 mln T CO2

* Power sectors should cut 3.6 mln T CO2

By Ju-min Park and Cho Mee-young

SEOUL, Oct 10 (Reuters) - South Korea aims to cut 8.3 million tonnes of CO2 equivalent from projected industrial and power sector greenhouse gas emissions in 2012, as it detailed how it would meet a target of a 1.44 percent reduction next year.

Asia's fourth-largest economy, which had already unveiled next year's percentage target, disclosed reduction targets by tonnage and by individual company.

Under next year's targets, a combined 366 firms in the industrial and power sectors must cut emissions 1.42 percent below their business-as-usual (BAU) levels.

The firms are allowed to emit 576.8 million tonnes of CO2 equivalent next year instead of a projected 585.2 million tonnes, the Ministry of Knowledge Economy said in a statement on Monday.

Industry will be required to cut 4.7 million tonnes of CO2 equivalent in 2012, 1.37 percent below its BAU level, while the power sector will need to cut 3.6 million tonnes of CO2 equivalent, or 1.50 percent below its BAU level, the statement said.

Firms that fail to meet their targets will be issued with an enforcement notice and if they fail to act, a fine to a maximum of 10 million won ($8,485) will be imposed, it added.

These emission caps are likely to be used as a baseline when the Asian nation introduces its emissions trading scheme in 2015, and to help it meet a target of a 30 percent cut in emissions by 2020.

South Korea's parliament is currently reviewing an emissions trade bill, a draft of which was finalised by the government in April by increasing free carbon allowances and softening penalties for non-compliance due to strong opposition from industry.

The government wants the bill passed by the year end to start the scheme from 2015. The emissions trading laws would only be binding from 2015 for those producing more than 25,000 tonnes of CO2 a year.

Major concerns for many Korean firms, particularly its big exporters, are the failure of competitors such as the United States, Japan and Australia to pass similar schemes that put a price on carbon.

South Korea's top emitters include major employers such as POSCO , the worlds No.3 steelmaker, and Samsung Electronics , the world's biggest electronics firm by revenue.

Under next year's targets, POSCO should slash its carbon emissions by 963,000 tonnes, which accounts for 20.6 percent of the overall industry reduction.

Emissions from South Korea's economy have doubled since 1990 and are slightly larger than Australia's nearly 600 million tonnes. On a per-capita basis, they are on a par with some European nations. ($1 = 1178.500 Korean Won) (Reporting by Cho Mee-young and Ju-min Park; Editing by Michael Urquhart)


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IFR-Stapled financing back in vogue for buyouts

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* The following story appeared in the October 8 issue of International Financing Review, a Thomson Reuters publication

By Claire Ruckin

LONDON, Oct 10 (IFR) - Economic woes and difficult lending conditions have prompted a return of stapled financings to back leveraged buyouts. Such structures help ensure vendors can sell their assets even in troubled times, though lenders are this time resisting traditional staples in favour of softer, more flexible options.

Stapled financings are being put together on an increased number of deals, including France Telecom's sale of Orange Switzerland, Barclays Private Equity's sale of tax-free shopping company Global Blue, ventilation and heating systems manufacturer and supplier Volution, which is being sold by AAC Capital Partners and Cognetas's sale of petrol station equipment provider Tokheim.

Staples are gaining more traction as companies seek assurance and security that debt can be raised for the sale of assets amid volatile economic conditions. A number of sales have been pulled in recent months, largely due to frozen financing markets.

"Debt markets are very unpredictable at the moment - to launch a process without a stapled financing is very risky. The potential for insufficient debt being available or leverage being insufficient to underpin seller value expectations is very real and sellers are now wary of launching processes without this intelligence," said Jonathan Guise, managing partner at debt advisory business Marlborough Partners.

He added: "Launching a process without a staple can result in a complete shambles and the vendor ending up with egg on their face if the process is pulled."

French retail group PPR postponed the sale of its catalogues business Redcats in September. Rothschild, which had been hired to run the sale process, was unsuccessful in its attempts to put a stapled financing package together.

Yet there is an unwillingness from banks to provide traditional staples, which were used as recently as June when JP Morgan acted as sole underwriter in the staple for Aviva's sale of UK roadside rescue business RAC and Securitas had a staple underwritten by Morgan Stanley and Nordea.

"The limited availability of financing is an issue for both buyers and sellers, so if a seller can present a financing package to potential buyers, even on a soft basis, it will help the process," said Timothy Polglase, global head of leverage finance at law firm Allen and Overy.

SOFT STAPLES

The staples being put together on Tokheim, Volution, Orange Switzerland, and Global Blue will be "soft" and will include a number of lenders so banks are protected from market volatility.

"A staple in this environment will have no legal documents and just be a soft guidance. If there are legal docs, there will be very loose flex terms," a senior banker said.

But attitudes to staples are changing. Whereas a traditional staple was seen by other banks as something to beat, now if a bank wants involvement in a deal the best way to do it is to be a part of the soft staple, one banker said.

Vendors also benefit from other upsides by having a staple. If bids come in quite low for an asset and a vendor decides not to sell, the option to refinance is easier.

"The prospect of deals being pulled on price grounds creates an increasing likelihood that refinancings will replace a sale, particularly with the maturity wall looming. The staple process means all the due diligence has been done and the banks are ready to roll," Guise said. (Reporting by Claire Ruckin)


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Agree with France, Belgium, Luxembourg Dexia rescue.

Philip Blenkinsop, Robert, and on 1 March Bartunek

Brussels | 9: 33

Brussels (Reuters)-agreed on the plan at the expense of the euro zone crisis bailout plan Dexia SA, Luxembourg, Belgium and France Planning Council before Sunday's deciding to dissolve the first lender.

Disaster France, Prime Minister Fran?ois Fillon, Yves Leterme Belgium his opponent and Luc Frieden, Luxembourg, Dexia said Finance Minister solution Leterme's office early Sunday afternoon by the large presence of Franco Belgium Bank has found.

「... Of Government Dexia, of finding solutions to ensure future reaffirm solidarity "Egmont Palace Brussels-came to speak in a statement after two hours of talks before 2008 Dexia rescue talks site also bid.

"Submitted for approval of Council resolution Dexia also the result of intense consultation with all partners involved," and said, without providing detailed rterm Office rescue plan.

Dexia's Board was to meet in Brussels from 15 (1300 GMT). Suffer it, lenders liquidity crisis, and its shares fell 42% the past one week more than sent: was forced to seek government help.

Must is struggling how much each Government, France and Belgium already contains a large deficit at stake in the negotiations down Dexia, stinging wind to contribute to the support is.

Has emerged as another distortion of the recapitalization of banks that are already stretched its budget European governments. Belgium, total debt bailout recipient Ireland between domestic product ratio 96.2% last year, more of a Greece and Italy low euro zone members had to par.

Dexia late Friday credit ratings agency Moody's Aa1 Government bond rating is classified the bailout burden to warn Belgium led.

Signs that decisive action to resolve the financial crisis GDP - Europe Greece more than 700 billion dollars - twice talks to dismantle the Dexia global credit risk exposure is being closely watched.

Prior to the talks on Sunday ",... In without hitting tomorrow morning too our country's high debt level, issues Belgium resolved have agreed can be convinced that the "-told rterm Belgium TV.

Dexia to raise funds are getting long short Fund was found drying as a deterioration of the credit, use the euro zone's debt crisis. The problem is aggravated by the Bank.

Heavy exposure to the Greece.

Matched the growth the talk about the excitement about the strength of the near collapse of the Dexia Investor fears of European banks and Bank continent coordinated TRANS capital infusion to EU action.

President Nicolas Sarkozy France Germany Merkel to meet the difference in how to allay sovereign debt crisis threatens global economy use the eurozone's financial firepower on Sunday to slash base in Berlin.

Germany and France way to strengthen the European instability of Bank's capital is divided. Paris is ¥ 440 euro-zone euro (about 594 billion) European financial stability facility ( while insisting need Berlin, funds to use as a last resort, France Bank, capital increase black) to wants to tap.

Dexia オーバー_ホール, from France to group split and merge France Bank Caisse des depots and Bank Postale, France post office banking arm sourcing fairs.

Nationalization of key Bank retail Belgium government Dexia Belgium want.

On a healthy basis, such as Turkey, denizbank sells.

Hold bonds including the 12 billion euro 'State in the bad bank guarantees support' 95 euro weak euro zone neighboring countries sovereign debt.

Up to United States including securities 7 billion euro mortgage to links, France and Belgium will cost ¥ 200 euro assets become more than 55% of the Belgium GDP, should provide a guarantee to cover.

Negotiations Sunday for key issues ' is how to split a distressed bank assets banking Belgium to Belgium other areas such as or of have how much Belgium Dexia nationalized pay purchase become involved.

Dexia shares was suspended Thursday afternoon.

($ 1 = 0.741 Euro )

( Marie Maitre, Christian plum, written by Philip Blenkinsop; edited by Hans-Jürgen Peters and Sebastian Moffett)


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Deadly Thai floods close factories, threaten Bangkok

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BANGKOK | Sun Oct 9, 2011 4:45am EDT

BANGKOK Oct 9 (Reuters) - Nearly 200 factories, including one run by Japanese car maker Honda Motor Co Ltd , closed in the central Thai province of Ayutthaya because of flooding, which could threaten Bangkok this week, officials said on Sunday.

About 261 people have died since late July in flood-related incidents, the Department of Disaster Prevention and Mitigation said. Some 2.3 million people have been affected in the worst flooding to hit parts of Thailand in 50 years, mainly in the centre, north and northeast.

The Rojana estate in Ayutthaya province, run by Rojana Industrial Park Pcl , was flooded after a wall of sandbags failed to hold back water overnight.

"All 198 factories at Rojana have to be closed because the water is about 5.1 metres high," Industry Minister Wannarat Channukul told Reuters.

A Honda spokeswoman said it had moved about 3,000 assembled cars from the estate to other areas. Hana Microelectronics Pcl has also had to close its plant in Ayutthaya.

On Thursday the Center for Economic and Business Forecasting, part of the University of the Thai Chamber of Commerce, cut its forecast for gross domestic product (GDP) growth this year to 3.6 percent from 4.4 percent because of the floods.

It put the impact of the flooding at between 1.0 and 1.3 percentage points of GDP and said its new growth forecast would have been lower but for recent strength in exports.

The commerce ministry said on Friday it had slashed its forecast for the main rice crop, which farmers are just starting to bring in, to 21 million tonnes from 25 million because of the flooding.

Thailand is the world's biggest rice exporter. The crop damage will add to the pressure on export prices, already being forced up by the high buying price set under a government intervention scheme aimed at helping poor farmers.

BANGKOK PREPARES FOR EVACUATION

Bangkok Governor Sukhumbhand Paribatra said in a statement the authorities were preparing an evacuation plan to move people from affected areas if floods hit the capital, much of which is just two metres above sea level.

Some riverside areas have already suffered minor flooding but the level of the Chao Phraya River could rise sharply from Oct. 15-18 when a large amount of water will reach the area from the north, where dams are close to overflowing, at a time of high sea tides.

The government was trying to accelerate the drainage of water from the Chao Phraya into the sea before the high tide.

Other Southeast Asian countries have suffered serious flooding in recent weeks because of heavy monsoon rains combined with tropical storms.

The death toll from two strong typhoons that cut across the north of the Philippines' main island and left behind widespread flooding had risen to 101 as of Sunday, the national disaster agency said.

At least 167 people had died in Cambodia by late last week and 15 in Vietnam.


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DIARY-U.S. MEETINGS/WEEK AHEAD

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UPDATE 3-'The Simpsons' to stay around for two more seasons

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* Deal follows Fox requests for hefty actors' pay cuts

* Satirical series is longest-running TV comedy

By Jill Serjeant

LOS ANGELES, Oct 7 (Reuters) - Fox Television said on Friday it had renewed animated TV series "The Simpsons" for another two seasons after settling a pay stand-off that had threatened to end the satirical parody of working-class American life.

"Fox has renewed 'The Simpsons,' the longest-running comedy in television history, for an incredible 24th and 25th season," the network said in a statement.

Fox Television, a unit of News Corp , said earlier this week that it could no longer afford to keep producing the show without the main voice actors taking a hefty cut in their $8 million annual salary.

The actors said Fox wanted a 45 percent reduction. They offered 30 percent cut in return for a share of billions of dollars generated by the show in worldwide licensing, syndication and merchandising.

Fox declined to give details of the new contract but a spokesman said the network was "thrilled" to have reached a deal. "We are all very happy with the result," the spokesman said.

Hollywood industry website The Wrap, citing a person close to the negotiations, said the final deal for the actors "was immeasurably improved from what Fox's initial offer was."

The tale of doughnut-loving Homer Simpson and his dysfunctional, yellow-faced family was launched on Fox in 1989, and helped establish the fledgling network as a major player in the TV industry.

It is now broadcast in more than 100 countries and 50 languages. But U.S. audiences have dropped off steadily in recent years. The show is currently watched by about 7.1 million Americans, down from an average 12.4 million 10 years ago, according to ratings data.

"D'OH"

It has won 27 Emmy Awards and boasted a guest star list that is a Who's Who of pop culture, ranging from actress Elizabeth Taylor to astronaut Buzz Aldrin, Playboy founder Hugh Hefner, rock star Mick Jagger, and even News Corp founder Rupert Murdoch.

The family from the fictional city of Springfield has a star on Hollywood's Walk of Fame, and Homer's catch-phrase "D'oh" entered the Oxford English Dictionary in 2001.

But Andrew Wallenstein, television editor for Hollywood trade paper Variety, said the comedy was no longer as fresh and exciting as it once was.

"I don't think it has anywhere near the influence that it used to," Wallenstein told Reuters.

"The very fact that the show has been around for so long sort of works against it to some degree. After 23 years, you're bound to fade into the woodwork, no matter how hilarious or clever you are," said Wallenstein.

News Corp executives have said recently they are looking at ways of making more money from the show in future from syndication rights and other ventures.

"Whether it's channel, digital, ourselves, third parties, it's a series unique in television, with a volume to it that is unprecedented," News Corp Chief Operating Officer Case Carey told an investors conference in September.


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Saudi central bank "not worried" about inflation

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JEDDAH, Saudi Arabia | Sat Oct 8, 2011 4:44pm EDT

JEDDAH, Saudi Arabia (Reuters) - Saudi Arabia's inflation levels are not worrying and will continue to decline, the country's central bank governor Muhammad Al-Jasser said on Saturday.

"Inflation levels are not worrying. Inflation has become stable since the beginning of the year between around 4.6 and 4.9 (percent)... I expect it to continue its decline," Al-Jasser told reporters on the sidelines of a conference in Riyadh.

Analysts polled by Reuters in June expected average inflation in the country to reach 5.6 percent in 2011.

Al-Jasser also said that lending levels had risen by more than 9 percent in 2011. "In reality, lending has risen by more than 9 percent this year ... an excellent level," he said.

Asked about his expectations for lending in 2012, he said: "I expect it to be good."

Fears of debt contagion in the euro zone have been shaking global markets over the past few months but Al-Jasser said Saudi Arabia is protected to a great extend from the European debt crisis.

"We are not affected by what is happening in Europe. Our lending and deposits are internal... We have, to a great extent, protection from these developments but we are not in an isolated island," he said.

Saudi Arabia invests heavily in U.S. treasuries.

(Reporting by Ibrahim al-Mutawa; writing by Asma Alsharif)


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INSIGHT-Euro success Slovakia torn over saving currency zone

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By Michael Winfrey and Petra Kovacova

POPRAD, Slovakia, Oct. 9 (Reuters) - The Volkswagen, Peugeot and Kia car plants along the main highway illustrate Slovakia's transformation from ex-communist backwater to euro zone success, the world's top auto maker per capita. They also explain its dilemma over Greece.

No strangers to privations and harsh economic reform, Slovaks are divided over whether their government should agree to increasing the powers of the fund set up to help Greece and other euro zone countries that have lived beyond their means.

So laborious is EU decision-making, that one dissenting voice among the 17 countries that use the euro could wreck the latest plan. It's a debate the rest of the world is following with concern.

Should Slovakia, the single currency's second poorest member, pay for countries like Greece, which borrowed too much, fudged data and spurned the thorough economic reforms that Slovaks endured to join the euro in 2009?

"The Greeks have big pensions and retire early. I'll have to work until I'm 65 to help pay off the loans that our government will have to take out to pay for Greece's mistakes," said Dana Antasova, a 31-year-old economist on maternity leave in the north Slovak city Poprad.

"I'm really mad. They stole everything, and now they want money from us?"

The reason for resentment is clear. Salaries in the country of 5.4 million average only 780 euros a month -- just a tad over a minimum wage of 750 euros a month in Greece -- and mothers like Antasova live off of a subsidy of just 11 euros a day.

Polls show Slovaks are split evenly over whether Prime Minister Iveta Radicova's government should ratify the expansion of the European Financial Stability Facility, the euro zone's bailout fund for countries in crisis.

A rebel party in the ruling coalition, the liberal Freedom and Solidarity (SaS), is threatening to vote against on Oct. 11.

But while many people agree with SaS and say Greece should be allowed to go bankrupt, they are also worried that a Slovak "no" could prompt another global recession and threaten an economy that is mainly driven by exports to euro zone partners.

WORKERS, EMPLOYERS, UNITE!

Slovakia's main highway is lined by factories owned by three big car makers and scores of other firms that flooded into the country after 1998 when reformists ousted the authoritarian government that held sway after communism.

The auto plants produced almost 700,000 cars in 2008 just before the global financial crisis hit, making Slovakia the world's biggest producer of vehicles per capita.

Samsung and Foxconn also produce flat screen monitors and other electronics, a Whirlpool site cranks out white goods in the foothills of the Tatra mountains, and thousands of workers sweat in the forges of U.S. Steel in the city of Kosice.

But those industries took a major hit two years ago, the same year Slovaks adopted the euro, when falling demand in the currency bloc caused a 9-month spell of double digit drops in industry and pushed unemployment to a five-year high of 13 percent.

Now, in a rare moment of harmony, workers and industrialists have joined forces to scold their politicians for holding up the EFSF expansion, fearing that a delay could cause another painful downturn.

"Even though it is difficult and Slovakia is not in a good social situation, (the EFSF) is necessary," Emil Machyna, head of the 200,000 strong industry, transport and services union OZ KOVO, told Reuters.

"We need to stand in solidarity within the euro zone, save what can be saved and to not have a further impact on employment, a fall in production, or a new recession."

To prepare itself for joining the European Union, which it joined in 2004, and the euro, Slovakia slashed public spending, introduced a flat 19 percent tax, and sold off dozens of state-owned companies.

The measures were painful. A cut to long-term unemployment benefits caused riots in the country's largely impoverished Roma community in 2004, and unions are now planning a strike this week due to low salaries.

But many say the pain was worth it. Slovakia led the EU in growth by expanding 10.5 percent in 2007, and purchasing power has risen half to 74 percent of the EU average since 2000, a trend businesses say is largely due to euro membership.

"The fact that we are exporting cars into the rest of Europe, the stability of the European economy is of the utmost importance," said Dusan Dvorak, a spokesman for Kia autos in Slovakia.

Radicova, who has said she had a personal commitment to ratifying the EFSF, put it more bluntly: "If we reject the EFSF, we can forget about economic growth."

PAYING THE PRICE

SaS leader Richard Sulik and his coalition partners argued their way out of contributing to a first Greek rescue package but now his party is the only one blocking the new measures. With 21 of the coalition's 77 votes, it can prevent a majority in the 150 seat parliament.

Now he complains that average paid Slovaks will have to work twice as hard as their German counterparts - 300 hours versus 120 for Germans - to pay for their part of their countries' contributions to the EFSF.

"We will pay the highest price in the euro zone," he told television TA3 on Sunday.

Without Slovak ratification, the fund's new powers can't go live. A political source said the ruling coalition's other three parties would push through the EFSF's expansion with opposition support if next Tuesday's vote fails, even if it leads to the collapse of the government or early elections.

Employers are losing their patience.

"We appeal to all political parties that are fundamentally rejecting a joint and coordinated approach in the euro zone to realise that their stance is very bad and one that Slovakia cannot afford to take," said Klub 500, an association of 500 businesses that employ more than 80,000 workers.

"BELLYBUTTON OF THE WORLD"

Slovakia still trails countries like Greece, where purchasing power is 89 percent of the bloc's. People like Marta Brnova worry that failure to pass the EFSF could end the game of catch up.

"It would hit us for sure," said Brnova, a 26-year-old receptionist for Johnson Controls, a company that is part of the huge car industry supply chain. "And after all this work, we don't want some other country to overtake us."

There is also the issue of pride. In Bratislava, people rejoiced two years ago when their crown currency vanished and their bank machines started spitting out the same euros they could get half an hour away in Vienna.

It was a small victory for a nation that trailed its larger former federation partner, the Czech Republic, in terms of economic performance and international image after the two split in the so-called "Velvet Divorce" in 1993.

After a decade of playing troublemaker on the European Union's eastern frontier in the 1990's under xenophobic and diplomatically isolated former Prime Minister Vladimir Meciar, many Slovaks cringe at the idea of rocking the euro zone boat.

"Generally, we condemn the populism that some political parties are engaging in," said Miroslav Gazdik, head of KOZ, the umbrella group that represents all union members in Slovakia's 2 million strong workforce.

"I think that, as a small country, we can't behave like the bellybutton of the world. If we want to exist in the community and use certain benefits we have contribute with something to the club."


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