HSBC branches in warehouses U.S. Pact 1 billion first Niagara (Reuters)

NEW YORK (Reuters)-HSBC Holdings Plc said Sunday it will shed nearly half its branch network, selling underperforming U.S. 195 branches to first Niagara Financial Group Inc. for approximately $ 1 billion and closing the other 13.

Sale of cash at first Niagara covers more than 40 percent of about 470 branches in the U.S., including 183 HSBC in New York, six on the outskirts of the city of New York and Connecticut. It also includes 15 billion dollars in deposits, 2.8 billion dollars in loans and $ 4.3 billion of assets under management.

Following the transaction, Buffalo, New York-based Niagara before expects to be significantly larger, with branches to about 450, 38 billion dollars in assets and $ 30 billion of deposits. Expects to cede some branches to satisfy antitrust concerns. Closing is expected early 2012, pending approvals.

Stuart Gulliver HSBC Chief Executive can set plans for Europe's largest bank to cut 3.5 billion spending cuts in retail banking and sell its U.S. credit card unit, which has more than 30 billion dollars of assets.

The Bank has been criticized for the same spread too widely, with approximately 95 million customers and 300,000 employees in 87 markets without sufficient regard for profitability.

Forty-two percent of companies are returning HSBC unless its cost by 11 per cent of the capital, and the Bank said it will be released in Russia and Poland.

Results first half-year report is expected on Monday and HSBC. Analysts on average expect a pre-tax profit of $ 10.9 billion, compared with 11.1 billion, a year earlier.

"RECORD OF DEVELOPED"

In may, HSBC said its Us unit banking HSBC Bank USA had a "record of poor", and that it would focus its operations on U.S. business clients with international and non-u.s. customers with business in the United States.

"HSBC is committed to the United States and our international network and skill set, which are our competitive advantages", Niall Booker, CEO of HSBC North America, said in a statement Sunday.

The 13 branches that HSBC plans to close are in Connecticut and New Jersey and are near other HSBC branches. HSBC has around 370 branches in New York.

The Bank did not immediately return calls on Sunday for further comment.

Other bidders for the branches include KeyCorp and M & T Bank Corp, while the bidders for the credit card unit have included Capital One Financial Corp. and Wells Fargo & Co, people familiar with the matter said before July.

"HORRIBLE" TIME TO MAKE ACQUISITIONS, OR NOT?

First Niagara Chief Koelmel Executive John said in an interview that his Bank expects to sell 20 to 25 percent of HSBC branches to satisfy regulators 195 and reduce duplication.

"We pointed out a footprint running from Buffalo to Boston to Philly and back to Pittsburgh," he said. "It's all a matter of having significant presence in the markets we choose to serve".

Koelmel also said it was "sensitive" assessments, especially given that the transaction is all cash, in a time of uncertainty for the environment, economy and market.

"It can be argued that this is a horrible time for doing anything: Washington can't do anything, and the markets are in a State of high alert," said. "Is somewhere between a mess and an embarrassing train wreck. I'm always one who believes that in the private sector, we must have the courage to bring in spite of that. We cannot be unduly deterred by what the markets generally are doing. "

Niagara before expects the transaction to Boost operating earnings, after the costs of the merger, from 10 to 11 percent in 2012. It plans to issue 750 million to 800 million dollars worth of stock and $ 350 million to 400 million dollars of debt before closing.

Most of the 1,900 workers at 195 HSBC branches are expected to keep their jobs, including at subsidiaries that are sold, said the first Niagara.

Niagara before he said he was advised by Goldman Sachs & Co, Sandler O'Neill & Partners LP & the law firm of Pepper Hamilton, while HSBC was advised by its investment bankers, JPMorgan and the law firm Cromwell & Sullivan.

Shares of Niagara before closed Friday on the Nasdaq at $ 12.25.

(Reporting by Jonathan Stempel; editing by Maureen Bavdek, Bernard Orr)

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Markets rally if the debt agreement, downgrade dagli occhi (Reuters)

NEW YORK (Reuters)-if the debate in Washington over raising the debt ceiling Us finally ends with a deal on Sunday, the last-minute truce could spark a rally relief when open global markets.

U.S. lawmakers were close to a deal last-gasp 3 billion dollars to raise the debt limit and avoid default is potentially catastrophic. Markets have been protracted discussions during the tumultuous, with Wall Street, ending its worst week in a year on Friday.

"An affair of 2.8 billion looks like the result and the mechanism is in place and, with no default. This is enough to rally the markets, "said David Kotok, chief investment officer of Cumberland advisors in Sarasota Florida.

But the White House stressed that no deal had been reached yet. Communications Director Dan Pfeiffer sounded a note of caution, saying in a tweet on Sunday that "a lot of bad information is floating out there."

Wayne Kaufman, Chief market analyst at John Thomas financial, New York, said that after five days of Wall Street, the stock market was primed for a bounce. But he warned that options traders, they have been a deal will be struck, bets may remain trapped.

"There is a possibility that this could go on for another couple of weeks," he said. "Probably it would be devastating for the markets, but there is a possibility".

Even if an agreement is struck soon, the markets remain nervous, and a prominent pop in action can be short-lasting. This year, Wall Street was quick to move from crisis to crisis. And those seem to be almost infinite supply.

The United States still faces a possible downgrade in its credit rating AAA gold in the near future and that is likely to affect markets if it happens at the end.

"The initial shock of downgrade will rattle the markets," said Peter Cardillo, Chief market Economist at Avalon Partners, New York. "The possibility of a downgrade are certainly now more than a month ago."

Trading activity in recent weeks suggests U.S. equities have been restrained by paralysis in Washington.

Fears that a Government could be hamstrung a deadweight on growth rose on Friday after a report showed that the American economy grew far more slowly than thought in the first half of the year.

A number of major investors have indicated they are in possession of larger cash positions than usual, and yields on some debt of the United States in the short term, maturing in August climbed.

Meanwhile the dollar safe haven in the world during the financial crisis of 2008, hit a record low against the Swiss franc and a trough four months against the Japanese yen on Friday. Both are now seen as a more secure location to store the money of the United States.

The lack of a budget agreement would also ratchet U.S. to exert pressure on the dollar against the yen so much that raises the prospect that Japan might intervene to stop its currency from strengthening.

The dollar is on Friday to its lowest since coordinated actions to weaken the Japanese currency in mid-March. Is now in the distance of its record low of 76,250 yen, which it struck shortly before authorities intervened then.

Short-term money markets were involved, making it more expensive for banks and companies. If that persists, consumers and small businesses can also find more difficult to access credit. Who can get loans will probably pay more for them.

Companies, meanwhile, are hardly likely to ramp up hiring if funding costs are rising. It has become even more of a concern after data showed the US economy grew at a plodding pace 1.3 percent in the second quarter and produced nearly flat growth in the first quarter.

"This is exactly what the market does not need as economic conditions are shaky," Jim Caron, head of global interest rate to Morgan Stanley, said in a research note.

Ironically, he gathered more dated Treasury debt, partly in reaction to weaker than expected, but also reflecting a "flight to safety" as investors move out of the way of default can have consequences that global markets.

(Additional reporting by Angela Moon and David Gaffen; Editing by Chris Sanders and Dale Hudson)

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Control deficiency with sanctions, says Germany (AFP)

Berlin (AFP)-European Union States which do not respect the rules agreed on their deficits should have their frozen EU subsidies, Finance Minister of Germany said in an interview to be published Sunday.

"We would quickly filter out the rate of European funds" to countries whose deficits exceeded the amount allowed, Wolfgang Schaeuble told the newspaper Frankfurter Allgemeine Sonntagszeitung.

The European Union's 1997 Stability and Growth Pact requires members of the block to maintain fiscal discipline, in particular by holding the annual public deficit under 3.0% of total production and to work towards securing surpluses in times of strong growth.

Euro-zone countries are struggling with a debt crisis partly caused by the failure of some Member States to respect the limits set by the Pact.

Schaeuble argued that the EU does not have to wait in the future for the situation to get out of hand.

But at the same time he rejected the idea that Greece would have to leave the euro zone.

"The eurozone would suffer an irreparable loss of confidence if only one of it members left the Monetary Union," he warned.

"I don't even want to try to imagine what it would be if the markets realized that they can expel a country from the euro area," he added.

The EU is currently looking to strengthen its sanctioning methods that States demonstrate budgetary discipline enough.

Several euro area countries have called for tougher sanctions in exchange for support of rescue packages for Greece, Ireland and Portugal to avoid default.

The European Parliament has also considered fine countries running large deficits.

Euro-zone countries in March on the broad outlines of a plan to control the deficit, but the Member States, has tried to limit the scope of any automatic sanctions, hoping to retain some political flexibility.

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HSBC appoints a General Manager group

HSBC Holdings plc has appointed Sean O'Sullivan, 55, a Director-General of group and the Group Chief Operating Officer, with effect from August 1, 2011.

O'Sullivan will continue directly to Stuart Gulliver, Steering Group Executive and joined the Board of management of the group.

It is the responsible Executive of improving organizational effectiveness through HSBC. He was head of the Group technology and Services agent (CTSO) since January 11, 2011. It will continue to lead the HSBC technology and Services (HRT), which provides services to the sectors of HSBC.

O'Sullivan is a graduate of the Ivey School of Business at the University of Western Ontario, Canada. He joined HSBC in 1980, spending 22 years of his career in the commercial bank, branch management and executive management positions in Toronto and Vancouver. He served as a Vice Executive Chairman of HSBC USA Inc. in New York, before moving on to the bank HSBC Canada as COO, and in 2007, in London as CTSO for HSBC in the United Kingdom.

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Former official NY admits guilt in Hamptons fraud (AP)

RIVERHEAD, NY – a former member of New York, convicted of insurance fraud this year declared guilty in a separate mortgage fraud scheme of several million dollars.

George Guldi (GOOL '-dee) admitted to grand larceny and other charges Friday in a Court of Suffolk County.

In the previous case, prosecutors say he pocketed $853,000 in insurance money after fire 2008 at his home in Westhampton Beach. He was sentenced to 4-12 years in prison.

The last indictment charged him with the creation of fake documents to obtain loans which involves approximately 60 properties, primarily in the Hamptons.

He was promised a sentence of one to three years to run concurrently with his other term of imprisonment. He should be sentenced on 31 August.

Prosecutors say that sought a sentence of up to 25 years.

Guldi served as a County legislator from 1994 until 2003.

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U.s. offshore oil producer by restarting ops post-Don (Reuters)

HOUSTON (Reuters)-U.S. offshore oil and natural gas producers are restarting production operations along with Don tropical storm over, data from the energy regulators of the Gulf of Mexico showed on Sunday.

U.S. Bureau of Ocean Energy Management said the 6 percent, or 84.072 barrels per day oil production remained in line, down 4.9 percent from Saturday.

BOEM also said the 3.5 percent of daily production of natural gas, or down 186 million cubic meters of natgas, remained closed, 3.1 percentage points from Saturday.

Among those who had restarted closed all production was Anadarko Petroleum Corp., which was closed and completely evacuated six platforms in the Gulf.

"Everything is back up and running," said spokesman Anadarko John Christiansen.

BOEM statistics were based on reports from 17 companies Sunday, the Agency said.

Some manufacturers, including Shell Oil Co., has yet to report publicly whether they had restarted the production.

Chevron Corp. said Sunday it had restarted oil and gas production closed for storm and Gulf operations was reshuffles. The company has never disclosed what exit was closed or how many workers were evacuated.

Exxon Mobil Corp. said it was returning workers evacuated for operations in the Gulf, but about 8,000 barrels per day of oil and 50 million cubic meters per day of natural gas production has remained closed.

Don was the first threat to energy infrastructure in the Gulf hurricane season 2011, but the path of the storm came nowhere close to higher concentrations of platforms for oil and natural gas.

A system of movement westward-weather about 575 miles east of the Leeward Islands had a "close to 100 percent" chance of becoming a tropical cyclone over the next two days, the National Hurricane Center said Sunday. This system will be named Emily strengthens its position in a storm or a hurricane.

Daily production in the Gulf is about 1.4 million barrels of oil and to 5.2 billion cubic feet of natgas, according to figures BOEM.

Don hit shore late on Friday, 40 miles south of Corpus Christi and quickly dissipated.

The three major refiners with plants in Corpus Christi-Valero Energy Corp, Flint Hills resources and Citgo Petroleum Corp.-Don breaks not reported.

Overall, the Gulf represents 30 percent of u.s. oil production and 12% of natural gas, according to BOEM. The Gulf Coast is also home to 40 per cent of United States refining capacity and 30 percent of the capacity of the treatment plant to natural gas.

(Edited by Dale Hudson)

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Commercial metals corrode after Icahn Buys rights plan (Reuters)

NEW YORK (Reuters)-commercial metals Co (CMC.N) said on Sunday adopted a shareholder rights plan, making it harder for an activist investor Carl Icahn to take a larger stake in steel maker.

The plan has a trigger of 10 percent, the same percentage stake that Icahn first reported on Thursday.

In a US Securities and Exchange Commission, Icahn said he may have discussions with the management of the maker of steel and metal recycler regarding strategic alternatives "and" believing that the actions were "underrated".

Board of commercial metals in a statement said it has adopted the "sudden and rapid increase in Property of Icahn" and later by a representative of his "intention to continue to stockpile CMC." Icahn

The company said it plans to meet with Icahn in September to better understand the interest.

Shareholders rights plans are commonly referred to as "poison pills" and can dilute the power of shareholder activists.

Second floor commercial metals, if the rights become exercisable, shareholders can buy a fraction of a part of commercial metals that will have economic and voting terms similar to those of a share of common stock.

Commercial metals shares closed 21 cents Friday to $ 14.51.

(By Jonathan Stempel and Megan Davies; edited by Bernard Orr)

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Default cloud hangs over the labour market of the United States (Reuters)

WASHINGTON (Reuters)-the terrifying prospect of a Us debt default has left a cloud over businesses already shaken by the lukewarm performance of the economy and probably left them reluctant to ramp up hiring in July.

A heated political battle over how to increase the nation's debt ceiling has helped to make the prospect of once remote a downgrade of the credit rating of AAA United States a strong possibility. Worse still, investors are grappling with the unthinkable: a outright default on the debt of the Government of the United States.

The fight over the debt, which started with a refusal by some Republicans to raise the debt limit largely procedural without sharp cuts in public spending, it comes with the American economy already struggling to stay above water.

Data on gross domestic product in the second quarter released Friday, showed the largest economy in the world, expanded into just an annual rate of 1.3 per cent in April-June period. More worryingly, revisions to the first quarter to an annualized GDP dropped 0.4 percent pace-dangerously close to a contraction.

The figures prompted some analysts to wonder whether the market forecasts for a gain of unspectacular 90,000 jobs in the month of July may be too optimistic, following readings really sad for may and June. The jobs report is due on Friday.

"Certainly, my outlook tempera resets expectations," said Jason Ware, senior research analyst at Albion Financial Group in Salt Lake City. "If we're going to have any type of material uptick in private sector employment, we're going to be growing faster than 1.5 percent."

The furor over the debt crisis of the United States has temporarily diverted attention from the problems of Europe, which continue to simmer though. Moody's Investors Service's said on Friday that he had placed Spain's credit rating on review for a possible downgrade, citing financial pressure and a precedent set by the eurozone's debt for Greece.

That deal was supposed to rescue to calm fears of contagion, but does not appear to have done the trick. Borrowing for Italy, for example, soared in the latest bond auction.

Austerity measures seem to be taking a toll on many of the economies that were due to help, and a report on the euro-zone unemployment should show a steady unemployment rate of 9.9% for Monetary Union.

DAY AND THE R-WORD

Still, investors will continue to focus their attention on the most immediate risk and potentially catastrophic-a non-resolution of the U.S. debt debacle which leads to a crippling Government shutdown or even a debt default.

Most investors say that the latter scenario is highly unlikely, given that the Government should have enough revenue to continue to make bond payments for some time, particularly if it gives priority to bondholders as expected.

But this does not mean they are not increasing the risk of recession.

"We still think that the Federal Government will be able to avoid a default, but probably still will lose its AAA credit rating," said Julian Jessop, Economist at capital Economics. "Default could be averted even at the cost of a shutdown of non-essential government services that could tip the US economy into recession."

A tense calm over the stalemate of the debt has permeated the Treasury bond market of the United States, which have continued to rally in the last week, pushing yields 2.80% at 10 years, their lowest level since November.

Before the American occupation Friday, economists will eye two other key indicators: the Institute for Supply Management survey of factory employment report and the ADP, which is used as a rough guide to the Government's broadest gauge.

The ISM index is seen easing slightly, from 55.3 to 54.9, according to a survey by Reuters. About ADP, economists are looking for a gain of approximately 100,000 new private sector jobs-in tune with their predictions of total payrolls.

Officials at the Federal Reserve of the United States have continued to indicate a reluctance to take any new high program for monetary easing. But if the labour market into another rut, the pressure for renewed action could assemble. The Fed next meets to set the policy on 9 August.

(Reporting by Pedro Nicolaci da Costa; Editing by Dan Grebler)

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Earnings preview: Pfizer to report on the 2° quarter (AP)

TRENTON, N.J. – Pfizer Inc., which reports second quarter results before the stock market opens Tuesday, will discuss some recent drug approvals, new data on some experimental drugs and intends to divest some of its non-core assets.

What to Watch for: drugmaker Pfizer, the world's largest by revenue, it needs some new great salesmen to compensate for intensifying competition. The cholesterol fighter 11 billion dollars annually, Lipitor, loses patent protection the U.S. 30 November — the largest ever drug patent expiration.

The creator of impotence pill Viagra and treat pain Lyrica also had some recent setbacks in drug development, and analysts can ask about those.

CEO Ian Read, who took over in December, will discuss his ongoing review of the business of New York-based Pfizer, including plans to spin off or sell its divisions of animal health and nutrition. The company also is selling their business, manufacture of medicine capsule for 2.4 billion dollars, in a deal set to close soon.

Reading will probably give an update on the integration of King Pharmaceuticals Inc., a manufacturer of pain medications and other products that Pfizer bought for $ 3.6 billion in March. He probably will discuss progress of Pfizer in increase sales in emerging markets, plus the ongoing cost cuts.

By buying Wyeth for $ 68 billion in October 2009, the company has worked to reduce annual costs by $ 4 billion to 5 billion. Plans to cut spending by about 20 percent next year, to about $8,25 billion.

Managers can see recent approvals of drugs, including a new use of cancer drug, Sutent for treating advanced pancreatic cancer. Tampering with amazing Painkiller Oxecta, an immediate-release drug containing Oxycodone, the active ingredient in OxyContin, was approved in the United States in June.

And blood clots that eliquis thinner has been approved in the European Union in May to prevent the blood in patients who have undergone surgery for hip replacement or knee. Pfizer and partner Bristol-Myers Squibb plan to seek U.S. approval this year. The companies also will seek approvals for much larger groups of patients at risk of fatal blood clots. That gives the blockbuster drug potential.

Pfizer also has recently applied for approval of lung cancer treatment crizotinib and axitinib, for treatment of most common type of kidney cancer and is revise the research data on them.

Down, the Food and Drug Administration on Friday said it would delay for 90 days a decision on the approval of sales of the pneumococcal vaccine Prevnar 13 children for adults aged 50 and over. The FDA called Pfizer presented new data from two studies of a major change to the application.

Prevnar 13, which protects against 13 common pneumococcal strains of bacteria and the original version, seven-strain, had combined sales of about 3.7 billion dollars last year, most of the sales generated by a vaccine. The delay could mean a loss of hundreds of millions of dollars.

Why it matters: Pfizer had four big-selling drugs get generic competition since last July, including Blockbuster Effexor for depression, Protonix for severe heartburn and Aricept for Alzheimer's disease symptoms. Sales were falling fast, and the same thing will happen to Lipitor from five months.

Despite an annual budget approaching search 10 billion, Pfizer has repeatedly had promising drugs fail in testing human in recent years. That problem and delayed price Pfizer stock, led the Council last December to oust predecessor Read, Jeffrey Kindler, who had temporarily shored up the company with the acquisition of Wyeth and intense cost cutting ever since. Reading must prove that a better strategy, one for the long term.

What is expected: analysts surveyed by FactSet expect, on average, earnings of 59 cents and 17.02 billion.

The year-ago quarter: Pfizer posted earnings of 31 cents, or 62 cents, excluding charges, on 17.33 billion.

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World warns of disaster if no deal made debt (Reuters)

London/TOKYO, July (Reuters)-Governments and politicians around the world warned of the risk of financial disaster if Washington fails to lift the U.S. debt ceiling.

Congress haggled over a deal to avert the risk of an unprecedented breach of U.S., British and Japanese officials on Sunday said bankruptcy could hurt families around the world.

"The world is watching the United States with trepidation, anxiety, with concern, but also with hope," International Monetary Fund Managing Director Christine Lagarde told CNN.

"Instability is never a good idea, never a good idea. And this level of uncertainty, trepidation arising from 2 August, is taking on a lot of instability, "he added.

United States Democrats and Republicans face a Tuesday deadline to reach an agreement. Treasury of the United States said that it will run out of borrowing room on that day, although analysts say they may have enough money to keep maintenance of its debt and paying bills through the middle of this month.

The German Central Bank expressed confidence in the United States could avert a debt default.

The key role of the dollar in global banking and financial markets trading means addressing the risk of major instability without an agreement 11 hours.

Senate Leader Harry Reid said that he hoped to hold a vote of the Senate later Sunday on an emerging deal to raise the debt ceiling, raising the hope that the deadlock could be broken.

As financial markets open for the week in Asia, investors took some relief from the signs of progress and the US dollar strengthened against the Japanese yen, falling to four-month low on Friday.

"If they get this one wrong and there is a default--we don't expect that we think you will sort this out-but if that happens, has consequences for every household and every company in this country and around the world," said Danny Alexander, Chief Secretary to the Treasury.

"I think eventually that politicians on Capitol Hill can be seen looking on the precipice is one they're going to step back from," he told BBC television.

In Tokyo, said sources familiar with international and Monetary Affairs of Japan, speaking earlier on Sunday, which were increasingly worried that the markets might be too confident about the prospects for a lasting solution to the crisis.

Japanese officials still hope Washington can strike a bargain and if that proves impossible, we will give priority to the interest payments to holders of u.s. Treasury debt to limit the immediate impact of the market, the sources said.

But Tokyo's concern is that if the crisis drags without a clear solution and long-term markets may be thrown into turmoil in the same way that suffered when U.S. Investment Bank Lehman Brothers collapsed in September 2008.

"If there is a default value, the impact on global markets will be enormous," said one of the sources, who declined to be named because of the sensitivity of the issue.

Another Japanese source, said, "no one thought that Washington would leave Lehman collapse. But look what happened. "

The German Central Bank said it was monitoring the situation. "Should really not be a solution, it begs the question: what happens then," said a spokesman for the German Central Bank. "But I expect there will be a solution in the United States today or in the coming days ".

CHINA

China, which has more than 1,000 billion dollars in Treasury bonds of the United States, has expressed alarm. On Saturday, the official people's daily, the mouthpiece of the Communist Party of China, castigated the U.S. debt crisis management as "irresponsible" and "immoral".

He said that the American democratic system was to blame for the "farce", saying that "not a single representative has given the world, and even national interests of the United States are being banished from the mind.

On Friday, a senior economic policymaker in the euro area, who declined to be named, expressed surprise and anger that u.s. politicians were "playing chicken" with an issue of such importance for the global economy.

Euro-zone leaders are struggling to control the sovereign debt crisis in many countries in their region, an operation complicated by U.S. debt problem that has added to the upward pressure on yields of government bonds in weak States.

It is expected that the world's central banks are ready to provide emergency supplies of money to commercial banks, in case banks become too nervous to lend to each other.

Before Japan's defence will be to ensure that Japanese financial institutions have a sufficient supply of dollars, said the sources in Tokyo.

The Bank of Japan considers Japanese commercial banks have enough pillows dollar but will use its dollar exchange agreements with other central banks to prevent a collapse of the dollar in case of market turmoil.

In June, the US Federal Reserve extended liquidity exchange agreement with other major central banks until August 1, 2012.

The Bank of Japan is also ready to flood the markets with yen through open market operations in case of inter-bank borrowing costs spike, say officials BOJ.

In Europe, there have been minor signs of strain in the money markets last week with some banks becoming unable to enter into long-term loans in dollars, but the effect was small, since banks still predicted that Washington would reach an agreement.

The European Central Bank already offers unlimited euro loan to banks in some of its money market operations as part of its response to the crisis in the past, and that the policy could use to cope with problems of the market this week.

A spokesman for Switzerland's Central Bank, said, "the National Bank Switzerland is ready to react appropriately at any time to market disruptions."

(Additional reporting by Lesley Wroughton in Washington; Written by Andrew Torchia; Editing by David Cowell)

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Aberdeen Asset Management adds to the high performance liaison team

Aberdeen Asset Management has appointed Ben Pakenham as credit analyst and his team of bond portfolio highly regarded high yield Manager.

Statement by Paul Reed, head of European High Yield Aberdeen, that Pakenham will focus on the research of credit work and also help to manage the range of portfolios of high-performance group. Pakenham from its junction Henderson Global Investors, where he was Director of the Henderson Extra monthly Income Bond Fund and co-manager Henderson monthly income that is high efficiency and monthly income fund fixed interest. He previously worked at New Star Asset Management, joined in 2005.

Paul Reed, head of European High Yield Aberdeen, commented: "Ben appointment further strengthens binding for yield high Aberdeen.". With rates likely to remain relatively low, obligations of high performance will remain attractive to investors looking for income. However, given the uncertain macro environment, it is essential to have the resources to identify companies able to adverse weather conditions. We remain convinced that a process of placement of ascendant, focusing on rigorous, internal research, will be the key to the conduct of the total yield.

Earlier this month old broad Street (OBSR) research has awarded the momentum recently Aberdeen High Yield Bond Fund with a "AA" rating which is also the rating OBSR held by Global Aberdeen - European High Yield Bond Fund. OBSR commented: "the Fund is managed by the European team High Yield of Aberdeen, led by Paul Reed immense experience." Long-term investment approach, bottom-up established seeks to provide income for investors by investing in bonds with generous income yields, often subordinate to the structure of the capital of the issuer, where the team is comfortable with the prospects in the long term of the credit of the company.

"This approach should deliver a certain volatility total performance, but his style has given solid results over the long term." We believe that the approach to be robust and the Fund should appeal to investors seeking a high efficiency, as long as they are aware of the team's long term investment horizon and the potential of volatility '.

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Deal could boost debt relief rally (Reuters)

NEW YORK (Reuters)-a deal involving up to 3 billion dollars in deficit cuts over a decade that U.S. lawmakers to raise the limit of U.S. debt and avoid default could spur a relief rally on Wall Street stocks and a rise in the Government of the United States produces on Monday.

Senate Democratic Leader Harry Reid said Sunday he hopes to vote tonight on an emerging deal to raise the debt ceiling of 14.3 billion United States dollars according to the U.S. Senate.

The possibility of an agreement raised hopes that a bitter partisan battle, long weeks over cut the deficit of the United States might be close to a close.

"At this point, the markets are perceiving that an agreement will be announced and a vote," said Quincy Krosby, market strategist at Prudential Financial in Newark, New Jersey.

The result of an amount of debt will be "a major event in stock," said Krosby. "There will also be an attempt to deconstruct information: where will the austerity. You'll see analysts try to dissect which sectors and companies will be affected by cuts. "

Anxiety over the debt crisis and the U.S. Economic Outlook sent S & P 500 lower last week, resulting in the worst week and month for the index of reference since August last year.

The CBOE volatility index, "Wall Street fear index," rose more than 40 percent, the biggest jump since May.

The United States Treasury prices rallied last week as investors clung to relatively safe debt of the Government of the United States and concluded that a weak economy meant that the Federal Reserve would keep accommodative monetary policy for the foreseeable future.

A stock market rally prompted by a deal the debt ceiling could be restricted, however, outlook uncertain economy of the United States and prospects that might be injured by a ceiling debt plan based on fiscal austerity.

"Once the euphoria of having an affair is over, we will respond to the economy and that image is not a beautiful, said Kevin Giddis, President of fixed income capital markets and Morgan Keegan in Memphis, Tennessee.

Government data released Friday, showed the American economy stumbled badly in the first half of 2011 and came close to contractor in January-March period.

"The market quickly shift the focus towards the employment data released on Friday," said Krosby. "A manifestation of relief could vanish if the data point out that the economy has changed in a stable, rather than sitting in a soft patch.

"The market (is) rapidly data-centric and corporate earnings and the company," said Krosby.

Any relief enjoyed by Stock probably would come at the expense of the market which have benefited from its status as a safe ceiling during the conflict of u.s. Treasury debt. That would bring Us higher returns.

Still, any increase in u.s. Treasury yields resulting from diminished anxiety for the debt ceiling would have limited the troubled Outlook for the u.s. economy, circumstances that appear to ensure that the Federal Reserve's monetary policy will remain accommodative for a long time.

The recent withdrawal of stocks has put them in a precarious position technically as the S & P 500 moves closer to its 200-day moving average, a level that might bring on additional sales if it breaks the index below it.

The benchmark index rebounded successfully level the Friday after the decline of the early morning.

"This is the line in the sand that divides things really going bad-perhaps to things turning really badly," said Paul Mendelsohn, Chief Investment Strategist at Windham financial services in Charlotte, Vermont.

Even if a deal is struck, a possibility remains the United States might lose triple a credit rating if the terms aren't draconinan enough to satisfy the credit rating agencies.

"You hear analysts debate whether or not the package is sufficient to maintain the credit rating agency to downgrade bay in terms of the debt of the Government of the United States," said Krosby.

Investors can still find some comfort corporate profits. According to data from Thomson Reuters Friday, 327 S & P 500 companies that have posted gains, 73 percent reported the results above analysts ' expectations.

Companies due to report earnings this week include Kraft Foods Inc., Clorox Co., Pfizer Inc. and Prudential Financial Inc.

But a weak economy, combined with a debt ceiling Bill that involves more withholding tax could hurt stocks later.

"Companies have been able to compensate for a lack of demand for refinancing their budgets, but in the long term, sledge will be much harder for equities and corporations," said Giddis. "We must improve the development work for companies to do good or to the stock market to do well."

In addition to weak corporate earnings, economic data and developments of U.S. debt ceiling, investors must remain prepared for any developments from the simmering debt crisis in the euro area, which could further increase the investor angst.

"There are two things to keep my eye on-one in Washington and one in Brussels, because the two of them you never know which title risk is going to hit you over the head," said Paul Mendelsohn, Chief Investment Strategist at Windham financial services in Charlotte, Vermont.

(Edited by Bernard Orr)

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Bank of America Countrywide hit with new lawsuit (AP)

NEW YORK – Bank of America Corp. is facing a new lawsuit filed by a group of shareholders of mortgage giant Countrywide Financial Corp., which the Bank has purchased in 2008.

The Group of investors, including BlackRock funds, t. Rowe Price Group Inc., TIAA-CREF and other pension funds, including pension system for civil servants in California earlier had turned down a $ 624 million settlement that struck the deal last year, saying that the terms were inadequate. The lawsuit accused Countrywide of misleading shareholders about its finances and lending practices.

Nicholas Blair, a partner at the law firm Bernstein Litowitz Berger & Grossman, representing the investors said they will present their claims before a jury. Bank of America spokesman Lawrence Grayson said: "we intend to vigorously defend these claims".

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World stocks lower amid nervousness of U.S. debt (AP)

Beijing-the global stock markets is Friday after U.S. lawmakers postpone a vote on raising the debt limit of the Government and to avoid a potential insolvency.

Oil fell below $ 97 per barrel as investors watched the political wrangling in Washington and Vin scenarios worse than U.S. default if lawmakers do not miss a deadline of Tuesday to increase the amount, which the Government can borrow.

The Treasury Department says the debt ceiling — currently at 14.3 billion — should be raised or the Government does not have enough money to cover all its bills. That has led to fears that the United States could default on its debt and give the fragile global economy.

"We're basically standing on the edge of an abyss, with peak above the background nowhere to be seen," said IG markets strategist Ben Potter in a report. He warned that without a deal Monday, markets could "risk based on fear that could quickly get out of control."

In Europe, France's CAC-40 shed 3 percent to 1.1, 672.93 while Germany DAX lost 1 percent to 7, 118.76. London's FTSE 100 fell 0.9 percent to 5, 822.57.

Wall Street was set to fall. Dow Futures fell 0.4 percent to 12.148 and the broader s & P 500 futures up 0.4 percent to 1, 291.80.

Nikkei 225 stock average Japan closed 0.7 percent to 9, 833.03. Index of Hong Kong's Hang Seng lost 0.6 percent to 22, 440.25 and China's Shanghai Composite Index shed 0.3 per cent to 2, 701.73.

South Korea's Kospi slid 2% to 1.1, 133.21. Australia and Bombay declined even as Singapore gained 0.1 percent.

The dollar is 77.61 yen in Asia from 77.88 yen late Thursday in New York. The euro fell to $ $ 1.4311 1.4279.

Republican leaders in the House of representatives delayed the vote on the Bill to extend the limit of government debt and cut federal spending, although there was an expectation that occur later Thursday evening in Washington.

On Wall Street, a late sell-off erased earlier gains Thursday as investors fretted that the Bill headed for a vote in the House of representatives fail to lead to a breakthrough in the stalemate.

The Dow Jones industrial average fell 62.44 points, or 0.5 percent, to close at 240.11 on Thursday, 12. The index had been up as many 82 points earlier in the day following an unexpected drop in new claims for unemployment benefits.

The Standard & poor's 500 fell by 0.3 per cent to close at 1, 300.67. The Nasdaq composite index, however, edged 0.1% at 2, 766.25.

Landmark oil for September delivery fell 59 cents to $96,83 per barrel in electronic trading on the New York Mercantile Exchange. Crude rose 4 cents to settle at $ 97.44 on Thursday.

In London, Brent crude slipped 23 cents to $ 117.13 per barrel on the ICE Futures exchange.

___

AP Business Writer helped Kelly Olsen in Seoul.

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Switzerland, Germany, to sign the agreement with tax evasion: report (AFP)

Zurich (AFP)-Swiss and German Governments are to sign an agreement early next month by putting an end to a long dispute on tax evasion by Germans who maintain secret Swiss bank accounts, a report said Sunday.

According to the newspaper Sonntagszeitung, the two sides of the ink an agreement that will allow 10 August, income from dividends and interest on funds deposited in Swiss accounts to be taxed, the newspaper said.

Although the exact tax rate is likely to be concluded is still approximately 25-26 percent, the report added.

While the German press recently reported that Swiss banks may have to pay 10 billion euro to German tax authorities in compensation for tax evasion over the last decade, the actual amount would be about two billion Swiss francs (1.8 billion/$ 2.5 billion) in the context of the agreement, said Sonntagszeitung.

That agreement would not only allow the resolution of tax disputes between the two countries, but also legalize assets deposited in Swiss banks by German citizens and allow them to remain anonymous.

Also a similar agreement could be signed soon with the Government in London that would see the British tax authorities have paid about 500 million Swiss francs, told the newspaper.

German and Swiss Governments, whose ties have been inaciditi for some time the dispute, have negotiated an agreement on double taxation for several years, which in future should help identify evaders.

The German authorities have made the fight against tax evasion in Switzerland and Liechtenstein a higher priority in recent years, controversially paying data confidentiality stored on the stolen computer discs.

Tax officials say they recovered 1.6 billion euros last year from taxpayers that had been identified through the data.

Some Swiss banks have struck their own deal with the German authorities, the private Bank Julius Baer agreed in April to pay 50 million euros at the end of tax evasion probes against it and its employees.

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